Questions and Answers
So I'm watching a documentary wehich says how when the recession hit in 2008, the global economy basically depended on USA and China, since the USA hasn't exactly improved, we're all depending on China and they're in this huge economic failure that they're not even trying to get out of, so what happens to the rest of the world when the one thing they're depending on fails ??
Imagine dire consequences. Capitalism is already in crisis. Without Communism to compete against, there is no longer any need to make capitalism a success. Once China plops, that reality becomes only too crystal clear.
In 1929, there was the stock market crash, also fueled by endless cheap borrowed money, which led to the great depression. Depression became global, which led to the desire for strong leaders, or the rise of the fascists, like Hitler, Mussolini, general Franco. Fascism led to aggression. Solution World war 2. Many empires bye bye. America acquired Britain's empire, citing emancipation.
Just how much capitalism was responsible for the success of reconstruction after the end of war is debatable. Nazi who escaped justice, fled to Argentina, thanks to being helped by the Vatican, may have repatriated the mega fortunes they looted during the war, back to Germany.
How can you expect an improvement? The whole economic model is build on spend, spend, spend, mindlessly, never mind the damage to the environment. If there is no work, measly pay, just enough to pay for food, energy, the necessities of life, no one can afford to spend. No spend equals more layoffs. Millionaires don't spend. They hoard money, stuff it offshore, don't help to educate the population, because frankly all they care about it, hoarding. Cheap credit chasing the same crap asset, oil price, food prices increase thanks to speculators, financed by cheap government money. They don't even take risks in the name of business. They play dead safe.
The planet millionaires live on has no resemblance to reality. China building white elephants, didn't they learn anything from america? Obviously not.
Houses 70 times the average wage. Local government officials enriching themselves by financing yet more needless elephants, because they are doing nicely, thanks to backhanders. Some just don't learn.
That's when wars come in. Eradicate deadwood. WW1 got rid of the Russian Czar, and the Germany' Kaiser, and ushered in constitution monarchy in Britain, where they are mere figureheads, do as they told by the elected houses of Parliament.
Empires fell. If they were dumb enough to start something they couldn't handle, nobody was going to give them a second chance. But the price ordinary Germans had to pay for the kaiser starting the war, bought the rise of Hitler. Roots of WW2, were already sown.
No doubt the next war will start. How that pans out, only a fool can predict. No doubt those who ignite it will think they can contain it.
Http://www.prwatch.org/news/2010/12/9828… 'Jobs are Created by Consumer Demand, Not by Increasing the "Supply" of Disposable Income for the Rich.'
Http://www.businessinsider.com/rich-peop… 'So, if rich people do not create the jobs, what does?'
Http://www.zerohedge.com/news/2013-12-11… 'Two-Thirds Say American Dream Is Over.'
Very Rich Don't Like Making Risky Investments
Market watch estimates that over 90% of the assets owned by millionaires are held in a combination of low-risk investments (bonds and cash), the stock market, and real estate. According to economist Richard Wolff, about half of the assets of the richest 1% are held in unincorporated business equity (personal business accounts). The Wall Street Journal notes that over three-quarters of individuals worth over $20 million are invested in hedge funds.
Angel investing (capital provided by affluent individuals for business start-ups) accounted for less than 1% of the investable assets of high net worth individuals in North America in 2011.
The Mendelsohn Affluent Survey confirmed that the very rich spend less than two percent of their money on new business startups. The last thing most of them want, apparently, is the risky business of hiring people for new innovation.
The Very Rich Don't Like Taking On Risky Jobs
The richest individuals and corporations are really good at building up fortunes. They're even better at building up their "job creator" myth.