The Madness of the Modern World or the Raging Leviathan: Part I

Author: Yaroslav Romanchuk

Translation: Marina Zaharieva

The world economy is synchronously falling into the zone of yet another powerful turbulence. This is no coincidence, given all the diligence of central banks and governments. It is they who take care of the synchronization in the inflation of market bubbles of various assets and resources. It is they who succumb to the lobbying of the nomenclature favorites.

The world economy is close to another suffocation by the deadly noose of “too big to fail” + VIP distributors of foreign (politicians and officials). We can call them the largest international syndicate, the club of oligopolists or the financial-political brotherhood. They operate in the regime of monopoly over money and control over governments and ministries of finance. This elite “closed club” is considered the aristocracy of the world economy. Its members have the following mission: to optimize the sustainable development of the economy, to achieve equilibrium in the commodity and money markets, as well as between man and nature in the long term, to harmonize the interests of different countries, business and society – throughout the world.

To accomplish this task, the VIP interventionist club hires scientists from the most prestigious universities and research centers in the world, as well as international organizations (IMF, WTO, World Bank, UN, etc.) and the global media. Ambitious. As if even noble and seemingly humane. In words – responsible. In practice – anti-scientific, destructive and with toxic consequences. This is one version of what is happening. The second version of the mission of the World VIP Interventionist Club is more earthly and banal – money and power. The system must be created so that the members of this exclusive club and their service staff always win: both during market growth and during decline, and from mistakes and technological discoveries, in deficit and in default, and from devaluation and revaluation, in inflation and in deflation, during trade wars and during liberalization, from expensive loans and from negative interest rates.

This is possible only in one case: when central banks and governments are under the control of the Interventionist Club, when the government holds a monopoly over money, respectively manages the financial sector (through ownership and regulation of the Central Bank/Ministry of Finance), and also has the right to artificially select from the general conditions of trade in goods/services a category of companies "too big/important to fail."

VIP distributors of foreign goods completely or partially forgive their debts and grant them special status on the market, including in terms of tax obligations. They invent new scary stories to maintain control over resources and capital. These threats are always global, look to the distant future, scare with incredible cataclysms and demand once again centralization and over-centralization. If it is going to be warming, then it must be global. If it is Ebola - the virus is a threat to the whole world. If it is swine flu - all pigs in the world are threatened with extinction. If it is robots or artificial intelligence - billions of jobs are (always!) threatened. And so we come to demands for the creation of more and more new international bureaucracy, new taxes for rich countries in favor of the poor and for rich people in each country in favor of the poor. The trinity of "inequality, feminism, ecology" has become the triune pillar of the new religion, professing the well-known old interventionism.

The preparation of the new slogan of the state interventionists is in full swing. This is being done for several reasons. First, to mask the real cause-and-effect relationships and turn the free market and its liberalization, as well as wealthy entrepreneurs, into the cause of the first Great Depression of the 21st century. That is, they will be the culprits and the people's anger will pour out on them, instead of on the real architects of the global crisis. And second, it will prepare the ground for a new international order instead of/or together with the UN, IMF/WB, WTO, G-20, etc. The slogan "this is the price to avoid war" is a good tool for persuasion in the hands of global interventionists, and by "war" we can understand not only one with weapons, armies and military groups, but also currency, trade, technological, environmental and informational. Third, to instill panic and fear in people and voters, the VIP administrators of foreign affairs and the club of global interventionists must firmly insist that they take decisive measures against the enemies of the world, civilization, and planet Earth.

All eggs in one basket

Since 2008, practically all central banks and governments in the world have been “pumping” their national economies, and in the case of the Fed/ECB, the world economy with money surrogates, that is, with the electronic payment receipts of state monopolists. Instead of the honest term “counterfeit money”, the club of global interventionists called the pouring of ~$12 trillion of “paper” into the global financial system quantitative easing, measures of extraordinary monetary policy, a way to restart the mechanism of economic growth. Whatever they call it, they cannot hide the essence: the work of central banks to “rescue” governments and companies is a global operation to redistribute toxic assets, debts and illiquid assets. Some people/structures are purifying themselves, shifting the burden of their investment and financial mistakes to others and re-entering the zone of arrogant impudence, financial impunity and investment greed. To improve the financial situation of the members and partners of the club of global interventionists, VIP distributors of foreign wealth develop and implement gigantic investment programs that they channel into selected channels.

We do not see healthy growth. Instead, we see the phenomenon of negative interest rates on more than $17 trillion in bonds (in 2014 there were almost no negative rates), an outrageously inflated debt bubble, increased concentration of resources and assets (capital) in the hands of the favorites of the global interventionist club. They are the first recipients of central bank/government cash receipts. They have arranged for themselves unprecedented advantages in the form of super cheap, very long and uniquely accessible credit. They strain governments and force them to enter trade wars. They become beneficiaries, sometimes pioneers in the use of disruptive technologies, creating unprecedented, in most cases non-market advantages.

Hence the growing tension between developed and developing countries, between China and the US, the removal of the mask of a free market by the US and Western Europe, the deep vulnerability of developing countries to the value of dollar loans (the Federal Reserve's interest rate policy). Hence the great risks of defaults and the degradation of dozens of developing countries around the world, as well as tens of thousands of companies that do not enjoy the benefits of modern commercial communism (risk-free corporations too big/important-to-fail).

Today, the world economy represents an almost complete synchronization of all business cycles in the hands of the Club of Global Interventionists. There are no longer any zones (countries) in it that are not dominated by the dollar. With few exceptions, the entire world has become a single financial system. Global value chains easily bypass developing countries to obtain benefits and discrimination in their favor. The beneficiaries of these depraved schemes of perverting the real business cycles are not only the members and partners of the Club of Global Interventionists, but also the 1% of VIP distributors of foreign goods in developing countries. They communicate directly, through international organizations such as the UN, IMF, WB, OECD, G-7 or G-20, as well as global forums such as the one in Davos.

The international networks of criminal syndicates are also beneficiaries. They coexist wonderfully with Leviathan both in democracy and autocracy. The “gray” and “white” members of the club of global interventionists do not so much vacation in the same resorts as they use the same offshores, consult with the same global lawyers/financiers, conceal their schemes through the same financial platforms. Together they invent the ideology to charm the masses and discredit ideological opponents.

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