Writing the Rules for a New World

Zakaria makes several errors in this article. First, in a remarkable instance of equivocation, he attributes this financial crisis to "globalization," not "capitalism." But, as he states, globilization is characterized by the spread of investment capital the world over. So globalization is a phenomenon of capitalism. Thus, he contradicts himself in saying that it's globalization on trial and not capitalism. He seems to make a sacred cow out of the status quo - as most journalists do.

Meanwhile, greed and the relentless pursuit of profit is the engine of capitalism-globalization. Why aren't Amercian companies content to manufacture goods here in the good ol' US? Simply because it's more profitable to close down shop here, fire American workforces, and exploit cheaper labor in countries, some of them totalitarian, where there are few, if any, pesky labor and environmental laws. The result: mass unemployment in the US, American support of totalitarian governments, more air and water pollution, and the rich get richer and richer.

Zakaria also doesn't seem to understand that the Federal Reserve, not Washington, controls US monetary policy. It is the Federal Reserve that has the power to print US dollars, not the Treasury; and the Fed is NOT a government agency. Neither the Congress nor the Executive has any control over the Fed's day-to-day activities.

The Fed has also established the fractional reserve banking practices utilized by commercial banks in making loans. These loans increase exponentially the amount of consumer debt and necessitate the continual expansion of the US money supply (inflation) to cover the outstanding balance. The Fed doesn't just print US money; it loans this money to the US government at interest. The deeper the US goes into debt, the more the Fed and its private sharholders stand to benefit. It is worth repeating: The Fed is a private, profit-driven central bank whose interests conflict with the vast majority of American citizens. One would think that, in a democracy, the power to print money and regulate the value of the nation's currency would be under democratic control, a sacred function of government. Not so in America.

Zakaria is right when he says governments are more powerful than markets. The US government should rewrite the laws to give itself the power that Zakaria falsley claims it has already, and then maybe We the People would be in a better position to determine our own destiny as "free" people ought to do. I'm pretty sure that's what our Founding Fathers had in mind.

Fareed Zakaria has single handedly restored the tattered reputation of journalism especially in the USA. He says like it is without a cloud of partisanship over his head. The weak kneed,snivelling journalists of the post 9/11 Bush America should borrow a leaf from him. I find his piece very well researched and believable. To call him a communist because of arguing government should be more aware of the financial wheelings and dealings of corporations in order to restrain abuse is absurd and juvenile. That kind of blind rhetoric coming from a place of jaundiced far right partisanship is what has put America in the crisis it is in today. Greed is bad and destructive and smart policies is the way to go. Those who have brought untold misery to millions should be punished severely to send a message that freedom comes with responsibility.

'...two massive forces. ...cheap credit...vast new pools of capital" except that neither of these was reality in a historical sense. They were illusions created by pseudo-economics. Now individuals are paying an exorbitant price for credit and no one can find capital pools. So the expense of credit was just deferred and the capital was spent before anyone could determine the value of derivatives. It won't get better until all concerned can see where the actual value in any investment is.

If all that governments needed to ensure a prosperous economy were a printing press and the ability to nationalize companies and industries, then Argentina and Zimbabwe would be the richest nations on the planet.

Yes, if only we could concentrate all the power into the hands of a few elite running the new One World Government, all of our problems would be solved! No more pesky national sovereignty. No more irritating individual freedoms. Just think of it - the elites would have total control and power over the masses. I'm sure they would be benevolent and let us keep all the crumbs we could eat --as long as we comply with all their regulations and don't complain. After all, they are the experts and know exactly what is best for the collective good.

"As bad as it looks, the current financial crisis will end. I don't know when or how, but the combination of government interventions will eventually work. Why do I say this? Because governments are more powerful than markets."

Despite making statements as catastrophically stupid as this, this person gets published. The tragedy, though, is that there are catastrophically ignorant people out there who will believe this nonsense.

The problems we are experiencing are not due to "success." They are due to bad policy. Bad currency policy (no gold standard) and bad fiscal policy (too much debt) are what caused our current problems. The ability to "print money" is not a costless event. Every dollar "printed" reduces the value of every dollar in existence. This author, like so many, don't understand the problem, and as a result they propose the wrong solutions.

As a Citizen of the United states I am amazed at what has happened the last 44 years as we have seen the rejection of the truth of the Word of God. We do not need order or rules we seem to think we are smarter than God and look at what we have reaped. Greed; more is better has ruined so many Americans to where it has grown to hurt everyone we deal with in our world. Life is not easy for never can we rely on mans wisdom it is Gods wisdom and understanding we need to have the knowledge that makes us better not worse.
We have Governments that have gotten rrid of truth and the ability to trust one another. We have a economical world that wants more and more, not wanting to reeally help the poor but oppress the porr. We have religions that were not mention in this articale that is the most powerful element in our world. Look at what is going on with terrorism and how it is the dogmatic people that believe in someone else beside God who created us and gave us a Son Jesus to take away our sins as we confess or wrong. Lets come to grips with reality we need a Government, we need ana Economical base and we need a religion that is based upon the truth the way and the Life and that is God Word.
Lord hel p us to get back to the basic so we can begin to enjoy one another on planet earth as we worship, reverence, pray to God and have Faith in God and hope in God that His well will be done in all of us. Jesus is ready to say that is enough and call the Church home and let the world defend for it's self against the forces of evil.
I am ready and want suffering to stop, creed to stop, dogmatism to stop and and heaven to begin as I put my trust in the King of King and the Lord of Lords.
Thank you Jerral Campfield 2forgive.org

Liberal arts education vs conservative education, the latter's goal is to further increase the dominance over environment and people? So surely liberal arts educatin will continue to be treated as a joke. The true wealth costs NOTHING. It's free. Can't be bought. Can't be sold. This can be realized ONLY in the moment of a true crises, until then we're hanging in this bubble, living on a credit, in debt. But I'm telling you, it'll be reverted. Call it a revolution of minds if you like. Now THAT will be the great project of 21st century. A world beyond ideaologies and markets.

By: Jordan C. Fan, Prophet Of Environment.

Since China is the indisputable leader of the entire world as mandated by Environment/God/Devil, naturally China should dictate all the rules and laws of this world. Opposition from any other nations will result in their total destruction and unbearable sufferings.

Any country can print money. Any country can develop a way do solve its own problems. But if the solutions are all related to the stupidity and greed of the governors, so there we will have problems again. Good governments must have good people in them, and this depends on us, the voters.We have to watch them, every single day.

The continued talk about global cosmopolitans, no borders, coordination etc. are just more of the same. The premise that globalization is here and not going away is simply wrong. Globalization has been a massive failure. It is akin to making the argument that because your house price tripled at the peak (no discussion of the current value) whatever was must have been a steaming success. Just in time globalization is a faiilure plain and simple. It has created epic malinvestment that will result in prolonged stagnantion (or worse) for as far as the eye can see. Serious thinkers, I assume you consider yourself one, would do well to consider what the world would look like if globalization and financialization had not been pushed to limits that are simply inefficient. What might a world look like under Buffets, one of your own, balanced trade regime? Would China not have grown at 9% (lies, more lies and statistics) CAGR? Yes. But then nor would they be dealing with a regional resettlement issue. Would the US have stagnated and been forced into a period of capital accumluation as oopposed to spendthriftness? Yes. Would that capital no be available to be employed in productive ventures? Yes. For all the discussion of jihadism that gets tossed around, globalization and free trade are two consepts which never measure up to the parallel. Why? becuase these two things are akin to thier rails of conventional geopolitical dogma. If there were ever a term that deserve to be mentioned in the same breadth as jihadism, it is free trade. The globalization one worlders and their integration begets stability (read concentration of power) are the modern day equivilant of the money changers. They need to be driven from the temple, so says FDR. yet again "they" are emodied in the central banks around the world and their apologists in the debating halls around the world. Serious thinkers I would contend can;'t possibly belive that the soltuion to a problem lies in more of the same medicine.

The continued talk about global cosmopolitans, no borders, coordination etc. are just more of the same. The premise that globalization is here and not going away is simply wrong. Globalization has been a massive failure. It is akin to making the argument that because your house price tripled at the peak (no discussion of the current value) whatever was must have been a steaming success. Just in time globalization is a faiilure plain and simple. It has created epic malinvestment that will result in prolonged stagnantion (or worse) for as far as the eye can see. Serious thinkers, I assume you consider yourself one, would do well to consider what the world would look like if globalization and financialization had not been pushed to limits that are simply inefficient. What might a world look like under Buffets, one of your own, balanced trade regime? Would China not have grown at 9% (lies, more lies and statistics) CAGR? Yes. But then nor would they be dealing with a regional resettlement issue. Would the US have stagnated and been forced into a period of capital accumluation as oopposed to spendthriftness? Yes. Would that capital no be available to be employed in productive ventures? Yes. For all the discussion of jihadism that gets tossed around, globalization and free trade are two consepts which never measure up to the parallel. Why? becuase these two things are akin to thier rails of conventional geopolitical dogma. If there were ever a term that deserve to be mentioned in the same breadth as jihadism, it is free trade. The globalization one worlders and their integration begets stability (read concentration of power) are the modern day equivilant of the money changers. They need to be driven from the temple, so says FDR. yet again "they" are emodied in the central banks around the world and their apologists in the debating halls around the world. Serious thinkers I would contend can;'t possibly belive that the soltuion to a problem lies in more of the same medicine.

The Bible says "The government will be on His shoulders.." Its interesting to note that when Jesus came the first time we of course killed him but not before he quoted same book as mentioned above...but he stopped at a certain point indicating when he comes back the second time he will pick up where he left off. HE said on his first visitation The Spirit of the Lord GOD is upon me; because the LORD hath anointed me to preach good tidings unto the meek; he hath sent me to bind up the brokenhearted, to proclaim liberty to the captives, and the opening of the prison to them that are bound;

2To proclaim the acceptable year of the LORD
But he stops here...and says today you have seen this fulfilled....the next verse is....and the day of vengeance of our God; to comfort all that mourn;

3To appoint unto them that mourn in Zion, to give unto them beauty for ashes, the oil of joy for mourning, the garment of praise for the spirit of heaviness; that they might be called trees of righteousness, the planting of the LORD, that he might be glorified.

4And they shall build the old wastes, they shall raise up the former desolations, and they shall repair the waste cities, the desolations of many generations.

5And strangers shall stand and feed your flocks, and the sons of the alien shall be your plowmen and your vinedressers.

6But ye shall be named the Priests of the LORD: men shall call you the Ministers of our God: ye shall eat the riches of the Gentiles, and in their glory shall ye boast yourselves.

7For your shame ye shall have double; and for confusion they shall rejoice in their portion: therefore in their land they shall possess the double: everlasting joy shall be unto them.

8For I the LORD love judgment, I hate robbery for burnt offering; and I will direct their work in truth, and I will make an everlasting covenant with them.

9And their seed shall be known among the Gentiles, and their offspring among the people: all that see them shall acknowledge them, that they are the seed which the LORD hath blessed.

10I will greatly rejoice in the LORD, my soul shall be joyful in my God; for he hath clothed me with the garments of salvation, he hath covered me with the robe of righteousness, as a bridegroom decketh himself with ornaments, and as a bride adorneth herself with her jewels.

11For as the earth bringeth forth her bud, and as the garden causeth the things that are sown in it to spring forth; so the Lord GOD will cause righteousness and praise to spring forth before all the nations.


So God will come back....the bible predicts it...it also predicts a one world government with a world dictator that everyone will love at first because he will be able to solve problems....

It is a disorganized article.
One of the greatest contradictions seems to be the assertion that America has lost power, authority, etc., but it must make the rules. Uh. Yeah. Right.
The US is looking a lot like Donald Trump nowadays: Puffed up about how it nearly bankrupts its creditors while further indebting itself. The GM bailout underscores the stupidity of the US situation. Leave it to Zakaria to fall for the illusion that the US will be calling the shots by default (pun intended) in the new world. If you believe that D. Trump is a business genius, you will fall for anything, I guess, even a bad toupee. It is amusing to see all of the America-firsters on this board struggle to defend borrow-spend-borrow-spend-borrow-spend as something the world should emulate. Since when did a Visa card become a US passport? No shame in bankruptcy? --- Must be the US.
Someone is saying that Zakaria is always accurate. Well, I think it is accurate to say that the processes shaping the new world are now out of US hands. What the US will do now is inflate its way out of this mess. Yes, it will buy more, but all of those purchases will just put Americans increasingly in debt to other countries, where people who live in deserts do not buy speedboats, seventy year olds do not buy cabins for ski vacations, and twilight industries are not bailed out with public treasure. Everyone would fall in line behind the US if everyone spent money as foolishly as Americans, to be sure. But that is clearly not the case. Oh, and that is to say nothing of the hubris and horror of war, which is apparently a habit that the American government cannot kick.
As the dollar plummets and Volcker tries to burn out an inflationary problem that will make 1982 look like a cake walk, who will be making the rules? America? As real wages continue to fall, taxes go up, and foreclosed homes moulder, the US will simultaneously tell its citizens to spend more to stimulate the economy, save more for their own retirements, and accept higher taxes to pay for hubris.
And then it will tell other countries what to do? Not likely.