The Great Depression 2.0 By James Reed
For your interest, the IMF chief is worried about a Great Depression 2.0, which I think would be a splendid idea, for what we have now is death by a thousand cuts, and anything accelerating the end of the system, not maintaining present power structures and increasing the oppression of us, but breaking down the alien system, which society has become, must be good. Note, this is all done by the internal contradictions of the system, and not by people striving to change it, because that awakening is not likely to happen any time soon due to the ostrich factor, and we are whistling in the dark if we expect it:
“The head of the International Monetary Fund has warned that the global economy risks a return of the Great Depression, driven by inequality and financial sector instability. Speaking at the Peterson Institute of International Economics in Washington, Kristalina Georgieva said new IMF research, which compares the current economy to the “roaring 1920s” that culminated in the great market crash of 1929, revealed that a similar trend was already under way. While the inequality gap between countries had closed in the last two decades, it had increased within countries, she said, singling out the UK for particular criticism. “In the UK, for example, the top 10% now control nearly as much wealth as the bottom 50%. This situation is mirrored across much of the OECD (Organisation for Economic Co-operation and Development), where income and wealth inequality have reached, or are near, record highs.” She added: “In some ways, this troubling trend is reminiscent of the early part of the 20th century – when the twin forces of technology and integration led to the first gilded age, the roaring 20s, and, ultimately, financial disaster.” She warned that fresh issues such as the climate emergency and increased trade protectionism meant the next 10 years were likely to be characterised by social unrest and financial market volatility. “If I had to identify a theme at the outset of the new decade, it would be increasing uncertainty,” she said. With disputes still raging between the US and Europe, she said “the global trading system is in need of a significant upgrade”. Georgieva said uncertainty affects not only businesses but individuals, especially given the rising inequality within many countries. She said that “excessive inequality hinders growth and ... can fuel populism and political upheaval”. Eric LeCompte, the head of debt charity Jubilee USA, said: “The IMF delivered a stark message about the potential for another massive financial disaster that we last experienced during the Great Depression. “With inequality on the rise and concerns of stability in the markets, we need to take this warning seriously.”
It seems inevitable, that increasing globalisation will produce increasing inequality, producing a new techno-feudalism. This will be a highly unstable system, unlike the feudalism of the past, since people today have had a taste of consumer items, that will cause intense pain, once withdrawn. Further, the religious glue of the past is gone, sadly, and all people have is materialism, and that when taken away will plunge the average punter into an existential abyss. They know what the good life in hedonistic terms means; as Dante said: “There is no greater sorrow than to recall happiness in times of misery.” What they will do about having their faces smashed into the mud is anyone’s guess.
““There will be no curiosity, no enjoyment of the process of life. All competing pleasures will be destroyed. But always— do not forget this, Winston— always there will be the intoxication of power, constantly increasing and constantly growing subtler. Always, at every moment, there will be the thrill of victory, the sensation of trampling on an enemy who is helpless.
If you want a picture of the future, imagine a boot stamping on a human face— forever. ” George Orwell, 1984.