Why the global economy is gradually coming to an end

August 27 2021 33

Economyas we know it now, with a developed system of banks and various kinds of market mechanisms, in the near future it may disappear into oblivion. This is the opinion of financial analyst and blogger Charles Hugh Smith, who wrote an article on his resource about the reasons for the imminent collapse of the global economic system.

According to Smith, the fault in this case is the cheap loans that banks of large countries have and give them out, sometimes without thinking about the consequences. Thanks to inexpensive credit money, the links of economic systems are launched, which are inextricably linked with each other. The destruction of one such link can lead to the breakdown of the entire economic chain, which is inherent in the global markets that make up the essence of neoliberalism.

To illustrate his thesis, the expert cites as an example a village that lives for the time being according to its internal laws. But when this settlement begins to depend on the tourism industry, loans to travel companies form the basis of its prosperity. If the tourist stream weakens, life in the village will turn into a desert.

At the same time, loosely coupled systems are more stable, since in their depths there are sufficiently independent inputs and outputs. For example, city districts connected by different streets. If some of them block, communication is possible through other streets, and the system continues to work.

Thus, neoliberalism creates a fragile economy that operates through various types of credit and trading hubs controlled by elites. Failures in the operation of these units lead to a crisis of the entire world economy.

The destruction we are witnessing is just beginning. The first dominoes fell, and there is no way back to the artificial stability that we were presented as real

- says Charles Hugh Smith.

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Observer2014

-1

27 August 2021 17: 18

I would have a cube of one meter per meter of dollars And I would hear about the world economy that it comes to an end even until next summer.
1. SASS
  
  -1
  
  28 August 2021 16: 44
  
  Your ultimate dream is dung ...))
Sergey Latyshev

-1

27 August 2021 17: 52

Oh ... the dollar will fall, the dollar will burn, favorite song ...
1. Dear sofa expert.
  
  -1
  
  27 August 2021 17: 56
  
  Oh ... the dollar will fall, the dollar will burn, favorite song ...
  
  Favorite Charles Hugh Smith song?)
  1. Sergey Latyshev
    
    -1
    
    27 August 2021 18: 04
    
    I don’t know him.
    I like Leontiev's performance ....)))
    1. Dear sofa expert.
      
      +1
      
      27 August 2021 18: 07
      
      I don’t know him.
      But I like Leontyev's performance ...
      
      Well .. we look at the book - we see a fig, then?))
      You are commenting on the article, but you didn’t even see whose “song” is in it)
      1. Sergey Latyshev
        
        -3
        
        27 August 2021 18: 08
        
        Charles Hugh Smith from the article is not a song, and about the bucks - a hint ..
        But Leontyev is just a song!
        
        Dear sofa expert.
        
        +1
        
        27 August 2021 18: 22
        
        But Leontyev is just a song!
        
        Yeah, and then why would you even discuss this site "with bucks"?)
        
        Observer2014
        
        0
        
        27 August 2021 18: 25
        
        Why do you need this? After all, you already know at least something? Calling yourself "a respected sofa expert"
        
        Dear sofa expert.
        
        +2
        
        27 August 2021 18: 30
        
        Why do you need this?
        
        Why do I need what? Discuss?
        So I am not discussing the article. Just read .. noticed that people. another blizzard carries. I asked what prompted ..
        Why do you need a cubic meter of money?)
        
        Observer2014
        
        -5
        
        27 August 2021 18: 34
        
        Not to see you again and not to hear. From the word never. To live. Plyuya on the price in rubles for gasoline .................. Anyway, on this "wooden" slag.
        
        Dear sofa expert.
        
        -1
        
        27 August 2021 18: 37
        
        Not to see and hear you again.
        
        An observer who does not want to see or hear is nonsense.
        
        What are you going to do with a cubic meter of cash? Will you buy full pockets of ice cream?))
        
        Observer2014
        
        -7
        
        27 August 2021 18: 58
        
        What difference does it make to you? I will do anything with them, but I will increase. I will save. And I will leave it to the next generation. And you will further stack up rubles .. Suddenly you will pick yourself up on a box. : And then no.
        
        Old Skeptic
        
        +1
        
        29 August 2021 03: 28
        
        Not to see you again and not to hear. From the word never. To live. Plyuya on the price in rubles for gasoline .................. Anyway, on this "wooden" slag.
        
        And why. Are you here, and not off to a better world? (I mean the "blessed" west.)
        Get down, already and deliver us from your society.
        
        Binder
        
        -5
        
        27 August 2021 18: 32
        
        A person understands sofa cushions - they are also not hukhry-muhry ...
        
        Sergey Latyshev
        
        -4
        
        27 August 2021 18: 37
        
        Why do you ask?
        
        I'm not asking you why you need such personal information?
        Why don't you see clear associations? Why such a nickname?
        
        Your personal file ....
        
        The comment was deleted.
Jacques sekavar

-5

27 August 2021 18: 47

It's not just Charles Hugh Smith who thinks so. The world economy is on the eve of a qualitative transition to a higher level - in 2024, as the final stage of working out turnover during the Olympics, the PRC will switch to digital Renminbi, followed by all countries capable of this and the whole world, after which the most interesting will begin - the definition of the world's leading digital currency and the redistribution of spheres of influence between the leading states.
1. Dear sofa expert.
  
  -1
  
  27 August 2021 18: 58
  
  after which the most interesting thing will begin - the definition of the world's leading digital currency and the redistribution of spheres of influence between the leading states.
  
  Well, who do you think will be chosen, given that all global digital information today is in the hands of a couple of American financial corporations?
  1. Observer2014
    
    -7
    
    27 August 2021 19: 06
    
    But what difference does it make to you? You have pensions in the country like a spit. Well, tell me about 12000 rubles and what you can buy with them, How much this pension is received in Russia ...
    1. The comment was deleted.
      1. The comment was deleted.
  2. EMMM
    
    -2
    
    28 August 2021 00: 03
    
    Do you think that only a couple of American corporations are involved in information processing? Must disappoint ...
    1. Dear sofa expert.
      
      -3
      
      28 August 2021 00: 39
      
      Do you think that only a couple of American corporations are involved in information processing?
      
      "Two or three"!)
      
      Must disappoint ...
      
      Start to disappoint your health!)
Oleg Rambover

+1

27 August 2021 20: 55

That the world (that is, Western) economy comes tryndets I was told with a short break all my life. And I know for sure, they told my father the same thing. And his father. And if you read all sorts of pochvenniks with the Slavophiles, then they told stories 200 years ago. And nothing has changed.
1. Dear sofa expert.
  
  -1
  
  27 August 2021 21: 31
  
  That the world (that is, Western) economy comes ...
  
  Well, in general, if you read the article carefully, it is not about the "western", but about the economy "in general" (or "in general"), we know it now. "
  
  The economy as we know it now, with a developed system of banks and various kinds of market mechanisms, may disappear into oblivion in the near future. This is the opinion of financial analyst and blogger Charles Hugh Smith ..
  
  And he is right.
  
  And if it is “digitalization” (and everything goes to it), which my colleague said above, then this will automatically mean the abolition of cash, and with this, full control over each individual legal entity and individual.
  1. EMMM
    
    -2
    
    28 August 2021 00: 07
    
    Perhaps it is worth revisiting the film "The Fifth Element" again.
    1. Dear sofa expert.
      
      -2
      
      28 August 2021 00: 37
      
      Perhaps it is worth revisiting the film "The Fifth Element" again.
      
      Reconsider, of course, who is against that?)
  2. Oleg Rambover
    
    -2
    
    28 August 2021 12: 14
    
    Quote: Dear sofa expert.
    Well, in general, if you read the article carefully, it is not about the "Western", but about the economy "in general" (or "in general"),
    
    The world economy is, by and large, "Western".
    
    Quote: Dear sofa expert.
    “Tryndets” is not the economy “in principle”, but precisely the economy “as we know it now”.
    
    The title of the article is "Why the world economy is gradually coming to an end." End and transformation are very different things. It looks like the fourth technological revolution is underway, and the world economy will come out of it differently, as in the previous three cases. But there can be no end of the speech.
    
    The authorities are just afraid of bitcoin, as they cannot control it. Fear not, your (and mine) super accumulations are of little interest to anyone.
    1. Dear sofa expert.
      
      -2
      
      28 August 2021 15: 43
      
      The title of the article is "Why the world economy is gradually coming to an end." End and transformation are very different things.
      
      The title is, yes, unfortunate. In the article itself, it is about "transformation".
      
      The economy as we know it now, with a developed system of banks and various kinds of market mechanisms, may disappear into oblivion in the near future. This is the opinion of financial analyst and blogger Charles Hugh Smith ..
      
      That is, the economy "as we know ..." will come to an end. Instead, it will come "transformed" (digitalized), which does not bode well for "ordinary people" trying to somehow survive in today's economic conditions.
      Attempts to get out of the dominance of today's (Western - if you like it better) economy, using the same "blockchain technologies", just caused the urgent need for this "transformation" (digitalization).
      Painfully, the "big world capital" does not want to release the reins from their greedy hands.
      
      Fear not, your (and mine) super accumulations are of little interest to anyone.
      
      Just mine, though not "over", but at least attempts to accumulate (see bitcoin & co) will be under threat.
      
      All that remains is to buy lottery tickets and hope for a miracle))
      1. Oleg Rambover
        
        -2
        
        29 August 2021 16: 33
        
        Quote: Dear sofa expert.
        The title is, yes, unfortunate. In the article itself, it is about "transformation".
        
        From the article
        
        If the tourist stream weakens, life in the village will turn into a desert.
        
        Something doesn't look very much like transformation.
        
        Quote: Dear sofa expert.
        Instead, it will come "transformed" (digitalized), which does not bode well for "ordinary people" trying to somehow survive in today's economic conditions.
        
        A hundred years ago, for the majority of the world's population, "somehow surviving" was not a figure of speech, but a real problem of how not to starve to death until the next harvest. Fear of the future is not characteristic of young people, but the last two hundred years of history speak of improving people's lives.
        Be optimistic.
        
        Quote: Dear sofa expert.
        Just mine, though not "over", but at least attempts to accumulate (see bitcoin & co) will be under threat.
        
        Do you have illegal income? Or do you own bitcoins? What are you afraid of?
        
        Dear sofa expert.
        
        0
        
        29 August 2021 17: 59
        
        Do you have illegal income? Or do you own bitcoins? What are you afraid of?
        
        And what is illegal for you?
        Is there a law prohibiting savings and transactions with CFA?
        Even if CFA are not and are not recognized as an official means of payment, they have the right to be an object of pledge, sale and purchase transactions, exchange.
        Or am I missing something?
        
        From the article
        If the tourist stream weakens, life in the village will turn into a desert.
        Something doesn't look very much like transformation.
        
        This is just an illustrative example of the author for the consequences of the "loss of links from the general economic chain":
        
        The destruction of one such link can lead to the breakdown of the entire economic chain, which is inherent in global markets.
        
        What are you focusing your attention on on this?)
The comment was deleted.
1. The comment was deleted.
GRF

0

28 August 2021 05: 05

The world economy, or rather the economy of the "elites" or the global, or more precisely, the American one, may collapse, but the regional and local economy will grow up instead, we will live in shorter life and perhaps even better, so the Lewis - scare yourself ..
Dmitry S.

+1

28 August 2021 09: 35

A cubic meter of dollars will never replace a cubic meter of birch firewood in terms of calorific value. Until next summer, it is not a good investment. And it will be very difficult to explain to the state where this cubic meter comes from.
1. Bitter
  
  -4
  
  28 August 2021 20: 16
  
  it will be very difficult to explain to the state where this cubic meter comes from.
  
  If you cannot explain, then you will get a longer period for a cubic meter of firewood.
  I need about 20 cubes of wood for our winter. Photoshop the shed, put dollars instead of firewood. They will definitely come with a check.
Jacques sekavar

0

28 August 2021 09: 54

Scientific and technological progress ensures the growth of productivity, material wealth and income of capitalists, the replacement of humans with robotic lines and industries.
The growing concentration of capital and material wealth in the hands of 72 million super-rich people, the state exceeds the state of the rest of the world, leads to the domination of TNCs and banks not only over individual states, but over the whole world.
The essence of demagoguery about the gradual decline of the world economy boils down to demoralizing public consciousness in order to weaken the demands of the oppressed classes against the background of the growing stratification of society, and therefore has a pronounced reactionary character and this Smith is one of the many representatives of the army of walkers in the service of big business.