Globalization, A Growing World Disorder

Opinion (Le Figaro): “Now, all indicators of the global economy economy do not confirm the advance of globalization, but rather its sharp decline on all fronts. Despite the austerity programs implemented in its name, it is however not at the rendezvous. Rather, it seems to move away to disappoint its supporters, while the other national control levers, monetary and fiscal, formerly repudiated in its name again become topical implicitly. In this current year, the global economy is cornered again on the brink of an even deeper abyss that could jeopardize all the political temptation to date. …

“The fundamental drivers of  globalization – (a) direct investment across borders, (b) international trade, (c) international financial stability – already seem ineffective, especially since 2010, to ensure the necessary stability and cohesion of the global economic system. International direct investment, assumed the first pillar of globalization continues to contract in 2015 to go below 2% of GDP of the main countries investing abroad. …

“However, the stock of debt, both public and private, continues to accumulate impetuously and much faster than the growth of GDP of indebted countries. …

“This is not the ‘too much debt’ that blocks the growth, as claimed by creditors, but rather it is ‘not enough’ growth, because of the focus on austerity measures and precipitation of alleged ‘reforms’ to recessionary effects, making the country the world less and less able to service their debts. …

“On the other hand, the engine of international trade, also fundamental pillar of globalization, is also being abruptly slow down even more strongly than world GDP. …The decline in international trade, falling commodity prices (commodities) and even non-oil is even more significant. These prices collapse first, pulling down all the others. As Daniel Gros, director of the European Policy Studies Centre in Brussels, as the economies growth rates exceed those of international trade in raw materials, it would conclude necessarily the emergence of new raw materials substitution domestic origin that no longer pass through international trade. This would indicate that at least the savings models ‘learned’ by exports continue increasingly to recipe and that domestic markets would be trying to replace at least in part, to external demand that is becoming increasingly failing. Obviously, if this is the case, it would be a necessary rebalancing of the exterior to the interior, which in any case would result in loosening of the ties of globalization for the benefit of more coherent national or regional economic entities and self-centered, less dependent on the outside. Besides, if this turning savings into their inner space is confirmed, also more easily understand the parallel swelling debts, since these correspond to higher deficits and higher public expenditures to stabilization period crisis, of course discrepancy compared to the directives of the globalist orthodoxy. If in all the crises in history, the role of the state has always emerged stronger, if only to offset the devastating effects of each crisis, why should it be the same with the latter? It is hard not to see in the new global crisis looming, the change of economic model. Including the assumption of the virtues of extraversion may be among the key issues of this crisis.

“As globalization remains entrusted to international finance, the impact on the real economy prove devastating for everyone, including for its promoters. Finance should not control the economy, but to follow it and to his service. But now, with the order of things upside down, instead of a new world order announced globalization with finance to commands only brings a deep global disorder referring to the darkest periods of the history.”

My Comment: If all the calculations to come are senseless, and not a flexible rationality, then nothing will stop the world and it will continue to roll down to the bottom.
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