The Global Economy

prompts Radicalization


The technological advance in all spheres and the Internet keeps
people around the globe informed, while the economy underperforms
in most global markets. The ideology of the trickle-down Capitalism
could not prevent or shorten the 2007-9 recession, neither it can
boost the anemic post-recession recovery in the European Union, the
Middle East, Africa or South America, (if realistically, a recession with
limited less than 1% growth constantly sinking under water markets
could be considered over). Simultaneously, the growing inequality
concentrates highest percentage wealth into smaller number of ultra-
rich ravaging the middle-class, wherever it is succeeded, or not
providing condition for establishing one.


What the researchers find is that global wealth has increased every year since
2008, and that personal wealth seems to be rising at the fastest rate ever
recorded, much of it driven by strong equity
markets. But the benefits of this growth have
largely been channeled to those who are already
affluent. While the restaurant workers in America
struggled to achieve wages of $10 an hour for
their labor, those invested in equities saw their
wealth soar without lifting a finger. So it goes
around the world.
The bottom half of the world!s people now own less than 1 percent of total
wealth, and they!re struggling to hold onto even that minuscule portion. On the
other hand, the wealthiest 10 percent have accumulated a staggering 87 percent
of global assets. The top percentile has 48.2 percent of the world wealth.
Under such conditions, it becomes natural for the dark human forces
that prompt discrimination, nationalism, and narcissism to bloom.
There is a plenty of economic data to support appointed statements;
however, the effect of these developments on the rising radicalization
is not researched to its full extend. The world media tends to politicize
global instabilities: the Arabian Spring, the ISIL, the Crimea!s take
over, e.g. are either associated with harsh regimes such as the
Mubarak!s in Egypt, Khadafy!s in Libya, or the US war on terror in
Iraq and Afghanistan, or the religious phantasm such as ISIL and Al-
Qaida, or the Mr. Putin policies in Russia. However, very few
journalists or economists attempt looking beyond the obvious into the
fundamental reasons for such profound radicalization of religious,
nationalistic, and other ideas that remand such disharmony instead of
the prevailing ideas that the world is a better place, where generally,
genocide, cruelty, aggression are attitudes of the past of a matured
humanity.Even when US led Coalition waged war on Saddam
Hussein in Iraq, or on Al-Qaida in Afghanistan, the idea was to
instigate good over evil, democracy over dictatorship. Certainly,
the ideas of liberties, human rights, and righteousness were the
Coalition!s standing-points in decision-making: from the political to
down on the field strategic ones. Humanitarian approach, even in
time of war was considered paramount.
The cruelty with which ISIL treats their enemies, chopping heads and
raping girls even when many well educated and civilized ISIL
participants came from all over the developed world, or the self-
centered Russian aggression by occupying Crimea and by provoking
unrest and mingling with their neighbor Ukraine!s territorial integrity
that already cost thousand of killed are considered uncivilized and
unthinkable; The noble ideas widely accepted, obviously are not a
status-quo,
Historically viewed: the a Half-Century bettered economically world
created for themselves an illusion of invisibility, but when the global
economies slammed casual the last 2007-9 Recession and the
following slow recovery (if such could be called recovery) by bringing
insecurity and poverty to many, the world remands aggression and
radicalism to hound our sense of justice.
The recession slam was instigated by the:
1) Imbalance in real estate overcapitalized prices;
2) Slow down in industrial production and related industries casual of
the ongoing globalization and rising productivity;
3) China!s super-industrialization and the outsourcing and moving of
industrial production from the developed economies to elsewhere;
4) Internet and the Twitter, Facebook, and etc networks;
5) Earth pollution that affected weather-prompting extremities.
The developed economies from UK and US to China and Japan dealt
through unorthodox economic policies of quantitative easing,
subsidies, fiscal stimulus, targeted investment packages into
infrastructure and business development to boost their growth, and
with idea that their success will improve the global economy. Many of
Emerging Markets (China not included) were constrained from
pursuing counter-cyclical measures by the WB and IMF, or by the
European Union in case of their members and associate members.
EU, under Germany, followed and continues the trickle-down
budgetary economics of austerity measures (pro-cyclical by nature)
resulting in prolonged in-and-out recession and a very limited
recovery (as the data shows).
Domestic US timeline
The domestic US timeline begins in June 2007 and shows the lead-up to and
development of the crisis, as well as subsequent US government responses. The
timeline is divided into three sections: Federal Reserve policy actions, other
policy actions, and market events, to enable users to view Federal Reserve and
other policy actions in the context of major market events.


International timeline
The international timeline provides a thematic and chronological ordering of the
many programs announced by G7 countries since the intensification of the global
financial crisis in the fall of 2008. It organizes announcements into four general
categories: bank liability guarantees, liquidity and rescue interventions,
unconventional monetary policy, and other market interventions. The entries are
color-coded to allow users to follow the developments of each country
individually.


What the global market experiences, because of these pro-cyclical
policies, is extreme stagnation, lack of growth, high unemployment,
and solid retraction from the humanitarian values that had been built
for a Half of Century, up to the beginning of this one. The
discriminatory immigration policies loomed in the US, France, UK,
e.g. steering nationalism, however, the most economically affected
areas of the Middle East, Africa, and Eastern Europe, e.g. exploded
out. When the two Charts/World Maps: the first indicates People
Displaces by Conflict and Violence 2014" and the second indicates
World Wealth Levels 2014" seemingly the data matches
indiscriminately. There is a straightforward interrelation between the
economic upheavals ravaging most markets around the globe and
the forces invoking the dark human sides and the emerging conflicts.
Targeted economic actions are required to prevent their expansion,
indeed. To continue business as usual seems very dangerous for the
entire Humanity!
It is of high importance for the most developed economies and China,
WB and IMF to start acting responsibly in promoting global economic
development, also environmentally friendly one, but not rely on the
old system of the so called orthodox economics.
Joshua Konov 2014