Krishnamurti & the Art of Awakening
General Discussion | moderated by Dev Singh

Economic Crisis


Displaying all 3 posts
Page 1 of 1
Tue, 09 Aug 2011 #1
Thumb_stringio Paul Davidson United Kingdom 3659 posts in this forum ACCOUNT DELETED

Will the world economy recover soon?

To discuss this on a K website may seem trivial but it is part of the world of human relations we have created and to know what is going on helps us not be swayed by the emotional waves that are hitting us every day as jobs, savings and dreams take a big battering. We have created an extremely alienated world wherein money assumes an enormous alien power over our lives. This fact lies behind all else which will follow:

The economic crisis we witness is endemic, systemic and chronic. It consists, at root, of two processes.

The first is that the historic rate of profit is too low world-wide. They can't produce enough, cheap enough to sell enough to make profit enough. And we don't have money enough to buy what is produced anyhow.

The second process is that of the disequilibrium of the world economy where the east produces and the west consumes. This has meant that the east has been storing up vast amounts of unspent cash which it can only get rid of by dumping it on the west at near-zero per cent interest. This is what prolonged the boom, led to the credit-bubble and which also inevitably led to the credit-crunch.

Solution - there has to be some new factor such as a new technological revolution, maybe nano-technology. There has to be a radical re-adjustment of the world economy whereby the east gets to spend more of what it produces while the west cuts down.

The west will not do this because 'it' is used to living beyond its means and also it hold the keys to power in the world economy, the IMF and the World Bank, especially through the internationally important role of the dollar as the most important reserves currency and all that accrues to the US through that. So those privileges have to go. The dollar has to fall. A new world currency has to emerge. The West has to give up control of the international financial levers and institutions. The east has to modernise and become more transparent in its dealings.

If any part of this does not materialise we are in for a rough time on top of a nasty shock on top of a big bump.

"The ego is first and foremost a body ego." S. Freud

Sign in to recommend  This post has been recommended by 1 reader
Back to Top
Mon, 12 Sep 2011 #2
Thumb_rao kamarajugadda Mallik ArjunaRao India 903 posts in this forum Offline

A fine posting Mr.Pual Davidson.Infact it is not ease to respond to the posting without reacting emotionaly.It is to react to present day economics,all our interest is put into it.

My personal feeling is that ,if economic activity is only to be seen to generate wealth, we are telling ourselves that this economic world is for only few and not for every body, say a portion of total earth population (Resourses/Population number).Do we,both of us belong to that lucky portion of the earths population?

If people see the economic activity as living process then it is entirely a deferent matter,otherwise we are to be deleted from the economic world?(we can restart the deleted topic, "Deleted").Perhaps they would ask us to go to JK's world.Are we ready for it?Sorry the emotions could not be held.So ,for the discussion to start has taken so many days.

nothing

Sign in to recommend
Back to Top
Mon, 12 Sep 2011 #3
Thumb_stringio Paul Davidson United Kingdom 3659 posts in this forum ACCOUNT DELETED

Dear Kamarajugadda,

Re-reading what I have written above, I see I was referring to a limited thing, the present crisis. And I made some technical points referring to how this could be resolved. All of which is quite inadequate, but is a beginning.

You are correct that all economic activity is human relationship. We have made it into a technical thing and we look for technical answers. And in so doing we resolve the present crisis and create the future one. It is all postponement.

The present crisis is a postponement of the previous ones. It was postponed for more than three decades.

Firstly, by the informatics revolution which both increased the profit margins for production through robotics but, even more so, reduced the timescale for the realisation of profits through the instantaneous markets, computer banking and massive deregulation of the financial system, creating a gigantic world-wide-casino.

Secondly, the opening up of the Chinese and indo-Chinese labour market, as well as the expansion of capitalism all over Asia. This allowed multi-nationals to benefit immensely from the historically low level of subsistence conditions and wages in the East. But those who don't earn cannot spend and this expansion of production in the East could only be matched by an expansion of consumption in the West.

To forestall the inevitable crisis that would follow the increasing East-West economic disequilibrium the West opened up its credit markets, a new wave of deregulation which joined together two new trends in a most volatile way imaginable. Consumer spending based upon near-zero interest rates in the West was financed by huge infusions of surplus capital from the East through a deregulated banking system which married consumer credit to international finance in such a way that the West began to live way beyond their means just at the same time that their original means of substance moved dramatically eastwards. And the bankers got huge cuts on the transactions, in both directions,leading to a massive and unsustainable expansion of the financial sector in the West.

But, all this postponement only led to a more explosive crisis when it eventually came. And we are living through that right now.

At the heart of all our so-called economic problems lies a terrible deficit in human consciousness. Our habit is always to seek technical and logical solutions to human problems, while omitting any examination at all of the inner-psychological turmoil that underlie human relations. And in so doing we fall into obsequious reliance upon self-seeking experts.

It is indeed a tragedy. As with every tragedy brought about by human ignorance, the weakest get crushed. Obviously, emotions are aroused. It is our minds that must change, fundamentally and primarily, not the economy. Otherwise, maybe the current crisis will pass but worse will follow.

"The ego is first and foremost a body ego." S. Freud

Sign in to recommend  This post has been recommended by 1 reader
Back to Top
Displaying all 3 posts
Page 1 of 1
To quote a portion of this post in your reply, first select the text and then click this "Quote" link.

(N.B. Be sure to insert an empty line between the quoted text and your reply.)