Thread: Global systemic crisis: In pursuit of impossible recovery

GEAB N°37 is available! Global systemic crisis: In pursuit of the impossible recovery

- Public announcement GEAB N°37 (Septembre 16, 2009) -

H-G Fandrich for LEAP/E2020 Before this summer, LEAP/E2020's team announced that there would be no recovery in sight in September 2009, and not until summer 2010 in any event. Well indeed, contrary to the claims of the media, and financial and political circles, we confirm our anticipation.

The slowdown in the speed of collapse of the global economy, at the origin of all the « good news » (1), is only due to the world's enormous public financial effort of the last twelve months (2). But the « time saved » using taxpayers' money around the world should have been dedicated to redesigning the international monetary system at the heart of the current systemic crisis (3). Yet, besides a few cosmetic considerations (4) and huge gifts to US and European banks, nothing serious has been undertaken, and, when it comes to the future, the « every man for himself » rule prevails (5).

Now, as summer 2009 comes to a close, and as the three rogue waves start impacting the global economy hard (unemployment (6), bankruptcies (7) and monetary shocks ( 8 ), the time to mend the system, or to prepare for a soft transition towards a new global system, is over (9). The first signs of a major decoupling (10) are beginning to appear: the rest of the world is rapidly moving away from the Dollar zone. As shown by the chart below, there is a 95 percent chance that 1,000 billion new USDs will be printed in a very near future... not very attractive for the Dollar zone.

Inconsistent statistics reflect a chaotic world economy
We are heading straight to the phase of geopolitical dislocation expected to begin in the fourth quarter of 2009 (11). In this issue of the GEAB, our team analyses the trends at work (real estate market, srategic issues…) within the current chaos resulting from a flood of unchecked public expenditure and a persistently uncontrolled financial system in a context of growingly inconsistent statistics. Paradoxically, dislocation has become, according to our researchers, the only way to economic recovery (a recovery that will take place around a global architecture and interaction between economic, social and financial spheres profoundly different from anything we knew in past decades. Our team believes that the first features of the “post-crisis worldâ€

Get the hijacked Democratic party and president out of Washington, asap!

If we had leaders in Washigton that actually wanted our country to succeed in business, we could do it.

Strategic advices and recommendations: 1/ Which indicators to trust in this crisis?

- Excerpt GEAB N°35 (May 16, 2009) -

In the current framework of a historical change of referential system, it is important to focus on reality and therefore to follow the indicators and information on the economic activity (instead of the financial activity) coming from the economic players themselves (instead of governments and lobbies).

Indeed, as discussed in the introduction to this GEAB N°35, the ongoing change of referential system, combined with the huge-scale manipulation of the entire financial sphere over the past year, has resulted in a complete loss of reliability of financial indicators and/or any indicator measuring the situation of global financial players. Bank statements on their present or future profits and on the value of their assets, indicators of the situation of a particular market of financial products… the whole world of finance is telling absolute nonsense in an attempt to save itself. Financial markets’ fundamentals are so much manipulated to avoid new bankruptcies that, according to LEAP/E2020, no one really now knows what is going on any more. One thing only is certain: in the absence of an economic rebound at the end of summer 2009, this whole house of cards will collapse once more, as all private and public strategies elaborated in the past year were based on that hope… a perfectly vain hope, according to our team. In any case, please, stay away from the financial sector!

As regards states and other supervising authorities, they in fact do not understand much more to the situation. They are content with running after banks’ capital needs and manipulating all available indicators for economic players and the general public to believe that the worst is behind them (1). An example of manipulation of assessment operations is provided by the “stress testâ€