The Great Depression of the 21st Century: Collapse of the Real Economy

The Great Depression of the 21st Century: Collapse of the Real Economy

The November 15 G-20 Financial Summit in Washington upholds the Washington-Wall Street consensus.

While formally presenting a project to restore financial stability, in practice, the hegemony of Wall Street remains unscathed. The tendency is towards a unipolar monetary system dominated by the United States and upheld by US military superiority.

The architects of financial disaster under the 1999 Gramm-Leach-Bliley Financial Services Modernization Act (FSMA) have been entrusted with the task of mitigating the crisis, which they themselves created. They are the cause of financial collapse.

The G20 Financial Summit doesn’t question the legitimacy of the hedge funds and the various instruments of derivative trade. The final communiqué includes an imprecise and blurred commitment “to better regulate hedge funds and create more transparency in mortgage-related securities in a bid to halt a global economic slide.”

A solution to this crisis can only be brought about through a process of “financial disarmament” as initially formulated by John Maynard Keynes, which forcefully challenges the hegemony of the Wall Street financial institutions including their control over the monetary policy.

November 16, 2008 · Filed Under Analysis, Business, Europe, Future, World news

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