A CRISIS OF GOVERNANCE? September 26, 2011Posted by wmmbb in Humankind/Planet Earth, Peace, Philosophy.
Following last Friday when Australian stocks lost 70 billion dollars in market value and the value of the dollar dropped below that of the US dollar, Ian Verrender wrote in The Sydney Morning Herald:
As panic gripped Wall Street on Thursday night and global markets tanked – for everything from stocks and metals to wheat – we passed yet another milestone in China’s relentless march towards global economic dominance. It was China that helped save the capitalist system three years ago. Now it is poised to take control, proving once and for all that money is a far more lethal weapon than guns when it comes to invasions.
If any further proof were needed, America’s woes can be sheeted home to its folly in Iraq at a time when it already had a massive military operation under way in Afghanistan and it was slashing taxes. The budget surplus that George W. Bush inherited when he took office blew out to a $US1.29 trillion deficit last year and a debt that recently passed $US14.6 trillion.
In the past three years, the US has slashed interest rates to zero and pumped vast amounts of cash into the economy through two rounds of money printing in a desperate attempt to fuel inflation and reduce the value of its debt.
It hasn’t worked. Unemployment remains stubbornly high, hitting 20 per cent in some areas, the housing market is still under water and Washington is at war with itself on what to do next. But it is quickly running out of time and ammunition.
The logic of globalization, or perhaps more accurately of global interdependence and interconnection poses the problem of government. As with the climate crisis the problem is government, or rather its’ lack. When justice can be established, there is more likely to be peace, and when there is peace there is more likely to be economic well being.
I am in cognitive dissonance mode. I do not want to look at what the slide of the stock market has done to my superannuation.