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Chapter 13: The Impending Collapse of the World-Economic System.In summing up the vast dimension of the phenomenon that unfolds behind the scene of the governmental budget crises, we need to look at the globalization of the collapse. The illusion which has been created by the modern trickery that hides the real inflation in the financial system, has allowed a buildup of inflation in monetary values to an enormity in size and volume that is far greater than anything that has ever been encountered in any crash in human history. The effect of this enormous and wide-spread inflation has the potential to cause a crash that covers the entire sphere of human living. The enormity of the delusion that has been created, not only financially, but in other economic and social aspects as well, may be likened to a belief in the seismic stability that has been experienced for decades on top of the San-Andreas Fault, which hasn't moved much over the last decades except for a few minor tremors, but which has stored up tensions within its formation of an unimaginable magnitude in earth quake potential. When the financial quake is triggered, by whatever cause may trigger it, the global financial system is bound to collapse into the vacuum of its hidden inflation. The physical collapse of the world-economies will likely be tied to the financial collapse, so that far more than just the financial markets are doomed. The banks are most certainly doomed that are tied into this system. The pensions are doomed, by which countless people live today. The entitlements that the governments and industry maintain, are doomed. Even food distribution is doomed. Food distribution is currently concentrated in the hands of a small number of cartel companies, owned by the oligarchy that has no interest whatsoever in the welfare of humanity. Even the biological health of society is doomed in this crisis which has the potential of staging the largest biological collapse in the history of human existence as the food production and distribution chain becomes disrupted, which is already stressed and is paper-thin. Every value that has been established in monetary relationship, in physical equity, in food security, and in physical stability, is doomed. The already substantial deficits that exists in everyone of these areas, will likely escalate rapidly, especially in respect to the nation's capacity to provide physical support for their populations. Already many ugly aspects of this unfolding collapse are noticeable, though the real crash has not even begun. A strange situation has arisen in the way the society responds to what it sees. While the unfolding evidence is quite ugly in many parts of the world, everyone in society endeavors not to see it. A grand denial is taking over where sensitivity should reign. This response may be instinctive, perhaps, as people may realize that the unfolding ugliness of today they may appear like paradise in comparison to what lies ahead, which in itself is so incomprehensible that the response of denial is actually a natural response, as irrational as it is. What will trigger the crash that causes global disintegration cannot be determined. A whole range of developments compete for the 'honor.' It could be triggered by a new oil shock, an epidemic outbreak of disease, a default in the world-debt system, a political upset like the breakup of Canada with the separation of Quebec, or something as minor as an interest rate change by a central bank that starts the chain reaction of disintegrating collapse. Japan's central bank, for instance, has felt it necessary to drop the prime rate to 0.5% in order keep the financial system alive. Japan is fighting to keep itself alive against the background of a collapsing physical economy with corresponding losses in the banking sector that is still reeling from the real estate losses. Also, its situation is made worth by the decaying value of its dollar oriented investment in U.S. treasury securities of which Japan own a lot, as the dollar is dropping in value. The problem is, that the Japanese central bank must raise the interest rate at one point, because all the interest-free money goes straight into building new financial bubbles instead of fuelling healthy economic growth. Once the rate goes up, an outflow out of the bubbles could cause a collapse with world-wide repercussions. So highly unstable has the world-financial system become. || - page index - || - chapter index - || - Exit - ||
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