THE FUTURE IN THE NEAR TERM
China is a wind blowing across the world. The downturn in China is the start of a long predicted rout of growth into deflation and deleveraging. The drop in value across so many fields of play, starting with commodities and now reaching property values is early and just beginning. Currency across trading partner platforms has seen Currency valuation plunges we have not seen since the Asian crises of the 1990’s. This plunge and volatility is just beginning. The ground floor landing of the Chinese moving from closed markets to open markets, moving from export driven investment driven growth markets into internal consumption driven growth markets ( real markets ) will take years. If the reformers blink and pull back from those reforms the consequence may be chaos.
Open markets from Indonesia to India, with far younger demographics in the work force, are attracting investment via policy. Closed markets are replying investment. Open markets are attracting investment. Opaque markets are replying investment while transparent markets are compelling investment globally.
China is a reflection of a restructuring of world market share. 80% of global growth has been commanded by developing nations. Currency devaluation and manipulations is exiting a final period of defacto trade war and national protection policy always a failed policy, by which developing nations are now th loser. As the 80% growth engine cools the UK and America are picking up the slack with booming open economies and soaring investment accounts. As these nations counter protectionist policy of trade war and currency manipulation, interest rises in these nations lower the value of other currencies and in some cases marginalize those currencies while the POUND and the DOLLAR become the world safe haven’s.
The EU is a failure systemically and in the opinion of a growing consensus can not be salvaged by continuation of debt financing that caused the problem in the first place. If you can’t pay your fifth larger credit card as a nation giving you a sixth even larger credit card is the insane way to move toward a thought of stability.
In the end the world is suffering from the same DEBT BOMB globally that is the root of all depressions. Add in wild speculation for non stake holder investing to acquire wealth by side bets on which way a thing might go in the future – becomes a kiss of financial death in free market space – where such speculation is not a crime as it was in only 1999. Relaxing global speculation rule sets was a mistake that must be remedied by G 100 Policy..an item we have called for over years of publishing our blog work.
CEO SPACE advocates the invention of a new class of investment to manage sovereign debt we call SUPER BONDS. Super Bond AIA has been off loaded to Locke Lord the leading financial law firm and its managing partner Roel Campos to work with nations. I am personally bringing SUPER BOND THEORY to Jamacia Trinidad Lybia Nigeria and through Nigeria Africa – and the Bahama’s this December. We have introduced SUPER BOND Theory to JP Morgan a leading provider of debt policy to nations. We will continue to bring this solution into the mix to resolve the CORE FINANCIAL CANCER with a non invasive process that kills the disease without killing the patient as set forth in economist Naomi Kliens amazing work SHOCK DOCTRIN a must read for national leadership.
CEO SPACE also advocates an advent of COOPERATIVE CAPITALISM as a global market rule set, to yet be adopted. The result is to self correct toxic competitive policy and tendencies of nations where a higher form of global trust and confidence is maintained where systems replace trust and advance trust between governments. Cooperative Capitalism is attainable and morph’s present systems into the final human economic model that considers all peoples as trapped – on the star ship earth – where the abundance for all is systemic – and modeling can preclude failed bias distribution models within private ownership and free enterprise. Evolving into a better way a better economic systemic model is a time that is blossoming. My own work REDEMPTION outlines the BLUE PRINT for national policy makers to embrace such that collaborative capitalism replaces competitive capitalistic models now employed by all nations. The only outcome of the antique old model is to repeat world war to reset economic wealth globally. To repeat this failed historic model is a form of insanity.
Precluding a repeat of financial history that never varies not once not ever in 5000 years – is insane by definition. The new models protect power and safe guard culture and open markets to unlimited sustained partnerships in growth globally. Aligned nations will increase cooperative economics. Competitive nations will not be models that work in the future. Competitive economic models breed world war. Cooperative economic models are open transparent and self correcting abuse and corruption by rule of law..never perfect but always evolving.
Humanity is evolving. We are shedding like snake skins the old competitive modeling and moving into a cooperative more transparent modeling where integrity and open transparency ( no secret hidden agenda’s in integrity ) assure improved modeling and dealing between partners.
The IMF and World Bank adopting to the new order of cooperative capitalism will reassert authority and leadership empowered by the superior economic modeling. The old snake skin is toxic to our environment our trade our market shares and our futures. The new model is organic wholesome and based on truth. The old model is based on negotiation distrust and negotiation the hall marks of competition. The new model is based on accountability recognition and mutual rewards within celebration. We are shedding the old snake skin because a those of us in the competitive cacoon so wish to fly as a butterfly cooperatively we simply will come out and fly. The world is moving into flight or back to world war. It would be insane to move back.
The old model has China key to world development isolated and alone in their crises. The new model has a G 20 conclave convened to HELP CHINA and to work as one to SUPPORT CHINA. To work on further reforms that correct the core issues underlying any competitive model relying on export economics a receipt for failure.
Still we have system change processes that took a century to create and will take decades to devolve. Improvement takes place over time with nations. Moving at core from competitive system modeling into cooperative collaborative system modeling is the future.
Bill Clinton said on Meet the Press recently ” we either learn to cooperate as nations or we perish”. Humans are pretty good at not perishing. Lets chose cooperative collaborative global economic system reform inclusive of all nations and partners with all nations. Lets take care of one another versus self narcism. Lets become a global family of nations that turns into one another versus turning ON one another ( the old model of economics ).
This may be the most exciting change period of human kinds existence. Shedding the one virus ( competitive thought itself ) upon human consciousness. Recognizing the competitive thought form as a virus – and deleting it from our decision making. Finding always cooperative collaborative ways so all interests can be accommodated in trust and in integrity. Can we do this? You bet because we all have the capacity to be virus free
You can not remove a virus from your computer unless you KNOW you are infected. Once you know you already are in process to shed the virus.
Now you know.
The China crises ( and it is a crises ) is far from over and will wash over everyone on the planet. We all are invited to HELP CHINA in their hour of need. Yesterday is already too late for world leaders to make this step forward.
We’ll keep a light on for ya.
Berny Dohrmann – CEO SPACE INTENRATIONAL