Our Global System of Governance is Failing – Only the Economic Crisis Ahead Will Fix It

This drama of flight 370 — the latest being the ping/no ping saga — has really got my blood boiling. Besides the tragedy, it also highlights the current state of global affairs. And it’s an ugly picture…

Our global system of governance is failing and the only way to fix it is to suffer a major economic crisis.

That’s something we’ll see all too soon.

But how did we get here?

Well…

The world became increasingly global after World War II. The information systems that have evolved since then have only accelerated that globalization, especially in the last two decades of the Internet age.

Since 9/11, governments the world over (but especially the U.S.) have been spying on their citizens. They’ve also been spying on each other and world leaders… all in the name of their fight against terrorism.

However, terrorism’s impact on human life — as horrifying an act as it is — doesn’t even come close to the dangers of simply driving your car. Automobile accidents claim many times more lives every year than do acts of terrorism.

To me, most of the spying is nothing more than an abuse of power… an excuse to increase their power over everything in our lives.

Eric Snowden is considered a traitor and criminal, but he forced a global awareness of just how much everyone is spying on everyone else, and he raised the simple issue of whether such efforts cause more harm than good, and where we should draw the line.

I, personally, don’t mind some invasion of privacy IF it makes me safer. I don’t even mind marketers and companies having more information about me because it allows them to know me better and so deliver more customized products and services to me.

But the situation has gotten out of hand, and flight 370 shows how flawed and un-coordinated our global government efforts are. We can’t even get transparent and real-time information about what governments already know about this flight. And it’s bullshit! (Pardon my French.)

In a truly global world, we need global government agencies and entities that have real teeth, that can deal with the huge imbalances we face… like climate change and pollution…

Or the trade imbalances governments artificially create by pushing down their currencies or subsidizing select industries…

Or power-hungry presidents, like Putin…

Or dictators, like Saddam Hussein and Robert Mugabe, who one day decide to take over other countries without good reasons or take away productive farmlands and turn them to dust.

When you look past all the bravado, the United Nations and the International Monetary Fund are nothing but wimps that have little power to act. At best, they can extend some aid or loans, or put up sanctions, but typically, it’s too little too late.

It’s unjust that countries like China continue to create far more pollution than economies twice its size, AND then enjoy the cost advantage for not paying the price of such massive pollution.

It’s prejudicial that Japan continues to print massive amounts of money to devalue its currency so that its exports are cheaper than competing nations.

It’s intolerable that dictators around the world continue to violate human rights and suppress their citizens’ innovative capacities for their own “mafia-like” benefits. Selfish assholes!

We need global institutions that are up to the task of maintaining fair play in the free market system. After all, it’s a system that works. That’s how developed countries achieved their power and status… through the competition and innovation free markets enable.

We need a new world order, wherein global institutions relieve any one given country of the unbearable burden of overseer… and kick ass when required — from Putin, to Mugabe, to China… whoever violates human rights and free markets.

Unfortunately, the only way that will happen is if we experience a major economic crisis, wherein self-centered political entities realize that we will only thrive if we come together and build global governance systems like the ones we did in the most successful democratic and capitalist countries throughout time.

Only a major global economic crisis will force us to face the cold, hard reality of our debt and financial bubble.

I welcome it.

I say: “Bring on the economic crisis!”

And I warn you…

This much-needed economic crisis is almost on top of us. In fact, I believe we’ll see the world come undone between 2014 and 2019.

That’s why we’re working to prepare you.


Harry

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About Author

Harry studied economics in college in the ’70s, but found it vague and inconclusive. He became so disillusioned by the state of the profession that he turned his back on it. Instead, he threw himself into the burgeoning New Science of Finance, which married economic research and market research and encompassed identifying and studying demographic trends, business cycles, consumers’ purchasing power and many, many other trends that empowered him to forecast economic and market changes.