Reflect on what has happened over the past 10 to 15 years.
In the late 1990s Western economies were really feeling the pressure from Asia, even though the Asian Financial Crisis had dealt a severe blow to Thailand, Malaysia, Indonesia etc.
In the early 2000s the sub-prime bubble started to inflate. Bankers, politicians, regulators, rating agencies, everyone was in on the game. They had to be because they were changing the rules to suit the biggest players. Western business and politicians were desperately trying to establish in China by graft and collusion, but have found it difficult because they do not understand long term perspective of Asian culture. They have also tried to establish in Africa – the last opportunity – but have been late to the game and incompetent when compared to China. And the bubble they created in the US and Europe to fund their investment abroad was a gamble only made attractive because if it worked out they won and if it didn’t everyone (the tax payer) would lose – it was a tilted board.
When the first warning signals about the sub-prime bubble were sounded in 2005 few people listened. When the implosion started in July 2007, people still didn’t listen. Even in September 2008 sense was hard to find.
Ireland was one of the first to be tested. What happened? It guaranteed investors! Not just depositors. Where was the IMF to bring some sense and discipline to the game (as they had in Asia)? This investor guarantee came as a result of discussions with global bankers and politicians, including EU, US, German, French, who were saving their own skins.
Since then the remedies have been counterproductive, both in theory and result. The people that caused the delusion are still in power, the rich are being protected (especially in the US). Small and medium businesses have had credit removed. Most people have had income and benefits reduced or eliminated – which has the vicious consequence of them not being able to spend and therefore restraining economic vitality further. (The evidence is sad to see in our local county capital where only “pound” shops and chip shops are left – there is not even one book shop – we’ve reduced ourselves to the lowest common denominator.)
If they had wanted to pad their pockets and cripple the world economy they couldn’t have done it better.
When are we going to wake up and change the system? When are we going to take responsibility for ourselves?
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