GLOBAL CRISES IN LEADERSHIP
No candidate running anywhere in the world asks the hard questions that GREAT LEADERSHIP will and must ask. Let me give you examples:
- Why did the theory, from Central Banks ( Fed contractors to nations ) – THAT – some low level of interest will always restore growth – fail to work this time?
- Why did zero interest for 20 full years – fail to restore Japan into inflation while the DEFLATION of value ripped the economy to shreds?
- Why in 2016 did Japan following such failed policy for 20 years – never returning inflation and growth – move to NEGATIVE INTEREST – they pay YOU to take money which is now not free they pay you to take the money and they still can NOT grow their economy?
- Why did ten years of American Fed zero interest – free money – following the Japanese mistake, fails to restore any robust growth in the USA or to the world?
- As Deflation sweeps across the world – the storm of which all global full on depressions flow from – and nations have no silver bullets remaining – none – they fired 100 trillion into the global oceans of money and the ocean is contracting not expanding – while leadership displays PANIC and the world market see’s clearly that the crises of leadership has lost control – there is no control or base line remaining.
The policies that have failed have been well intended but rushed through way to rapidly. The unintended consequences represent a crises of leadership that reacts in panic to market conditions. The consequences of failed policy include:
- Money did not trickled down as intended but trickled up to the fantastically already wealthy who got wealthier while the world sunk by the billions into stress not seen in decades.
- The debt and leverage used to speculate and manipulate market prices became unsustainable in 2015 and the bubbles burst across all markets as the cost of everything moved into full on deflation and deleveraging.
- The bad debt from the speculation has reached a level not seen in recorded history of all nations – said another way – nations are bankrupt and the banks and financial system is bankrupt – if debts had to be accommodated on their face terms today.
- As the market enters a final round of every nation for themselves trade war protection for their own people, the old world order freezes up – we are one contagion event in financial markets from a liquify crises far worse than 2008 – where the entire system freezes and world trade as we know it ceases. Liquidity melts into a full global depression.
- Cooperation by the G 100 to reset the world order is the only solution but as the nations are now engaged in a time line of distrust and negotiation that is competitive – and integrity required is depleting – the risk of a contagion which is historic is immediate and worthy of your consideration as a historic repeating factor with zero variation over 5000 years of financial history. Cooperate and beat the odds or complete and repeat the odds.
You are seeing today in the destabilized world order – a crises in leadership. The leaders don’t trust the leaders and the market doesn’t trust the leaders of nations. The markets see central banks as failed policy machines out dated and needed complete re-invention.
Failed institutions and failed policies have decades of abuse in the system of ECONOMICALLY UNSUSTAINABLE DEBT underwriting national agenda’s without financial required stabilities and sound fiscal policy. The result is – its too late. The mount everest of bad never to be repaid debt is now starting like a snow ball to roll down the world financial oder – on all sides – all at once – creating predicable future industrial avalanches in so may sectors all at the same time the system can not repair or manage the downward deflation spiral.
Central planners attempted to use TIME to repair this unsolvable matrix with forward inflationary modeling to WORK OUT of the problem. The policies they set in place failed. They added to the debt problem MASSIVELY placing weight all around the peak of the global old order. Now the weight is to great to stay in place.
As a world drowning in oil – with ever more coming on line – moderates a one time speculation itself an irritant to this entire problem – massively – unwinds to market fair rate pricing – the debt credit collapse that oil only engenders in giant firms about to BK one after the other pushing private equity over – hedge funds over – then financial institutions then nations – and that is just one sector. Go to steel. Cooper. Transportation. Keep going. Nations are now unable to manage and the bond market to support their negative borrowing is withering in deflation values that tear old economic modeling to shreds again.
Value as you knew it is being reset. There is no no THERE THERE. There is no base line – no arbitrary to market correcting forces. The market of capital will protect itself – that is the only new rule. In that correction you will see the CRISES of leadership engenders more distrust and lack of confidence. No leader is speaking to:
- The failed policies of the G 100 and Feds.
- The massive DEBT BOMB.
- The market of unregulated casino capitalism destroying the world order.
- The COOPERATION solution of a G 100 ECONOMIC CONSTITUTIONAL WORLD CONFERENCE to fix the mess – which is REAL LEADERSHIP.
- The essential notion all national FEDS need to MERGE INTO THEIR STATE TREASURIES and cease paying public interest on printing money – in a fully digital transparent world market space.
Until these FIVE TO THRIVE topics come unto LEADERSHIP radar somewhere in the world, the markets will like eternal tides, move money back and forth in self interest, against all policy and pundits wherein DEFLATION has no cure – as Japan brilliant planners have seen over now into decade three – with the same illness stifling their ingenuity people and productivity. Why? Failed policies. The idea – cheap or free or hey – we’ll pay you to take money – policy will restore order and inflation – is INSANE economics. Doing more of what has failed for three decades is insane – doing it faster or more of it faster – means you went off your meds.
Folks – the G 100 MUST ENGAGE IN THE LARGEST REGULATORY RE-THINK in 100 YEARS and set up a NEW ECONOMIC TRADING ORDER FOR THE WORLD. This is not hard. this will take three years which is short. And just the announcement it is coming will allow the markets to adjust from GREED TO NEED and FROM INSANE to SANE. But only GREAT versus mediocrity and good leadership – can bring it about.
Such leadership rises from crises – such as global DEPRESSION AND WORLD WAR which SUPER CRASH bring forth.
One is so much more painful than the other.
The head of black rock put forth one of the NEW WORLD ORDER pillars published in my book – Redemption the COOPERATION REVOLUTION.
This sane versus insane GREAT LEADERSHIP puts forth:
- Public institutions must be allowed to plan and invest long term.
- Public institutions should report financial results every 180 days – bi annually.
- Reporting to analysts every three weeks and final results every four promotes unwanted system speculation.
- Stocks are now commodities versus long term investment assets.
- Digital transparency requires moderation of reporting regulations created during the telegraph era – it is urgent to reform public firm reporting regulations as sane versus insane.
Insane economics brought you here. insane economics will keep you here. The old world order is broken and beyond repair. The new world system needs to be forged and developed. The earlier we do so the less the adjustment pain to the system. World war can be avoided but not for long.
We watch the leadership in all nations fail to rise to GREATNESSS and LEAD on the one issue that matters – the world system itself. They all know. But the largest lobby is the financial lobby of every nation today – itself a need calling for repair. Due to abuse of public process.
The truth will set you free ….
Berny Dohrmann Chairman – investment banker economist – CEO SPACE INTERNATIONAL— February 4, 2016