Posted Jul 18, 2013 by Martin Armstrong
The OECD has confirmed what our computer models have been warning that we are entering into the collapsing stage of Western Civilization that is being caused by Marxist-Keynesianism. Government keeps raising taxes and hunting down the rich, which is destroying capital formation and thus the prospects for long-term economic growth. This Marxist attitude of government and the 2011 law in the USA that if a foreign entity FAILS to report what any American is doing outside the USA, then THEIR assets will be confiscated within the USA. This has resulted in throwing out Americans around the globe. Americans cannot even wire funds to non-Americans in Asia with accounts at HSBC who refuses to deal with Americans. This single law is causing the global economy to implode (deflationary) reducing employment everywhere.
The OECD’s Employment Outlook 2013 is grim to say the least. This report is indicating that over half of joblessness is now long-term: one year or longer, and that young people and low-skilled workers will continue to be hit hardest exceeding 60% in many European nations. This is simply unsustainable and is bringing Western Society to the brink of revolution, civil unrest, and massive political chaos. The OECD reported:
“Job loss and a lack of job opportunities have been concentrated among low-paid workers, more than offsetting declines in earnings of high-paid workers, which were often only temporary. Consequently, inequality in the incomes of households rose more in the period 2007 to 2010 than in the previous 12 years in most (OECD) countries.”
Our own models are warning that 2014 turns upward in civil unrest. We have the European Elections next year and they will see a massive backlash against the brain-dead antiquated theories employed by Brussels. This is becoming a serious concern and is the reason why Homeland Security in the USA is buying tanks and Obama has put the word out to buy just about every bullet out there to prevent the citizens from being able to rise up against government. This has NOTHING to do with criminals. The entire social fabric of the “New Deal” is collapsing for politicians have been lawyers rather than business managers. They have stood up and promised the moon and never funded it.
The theory of Marx that government can manipulate the economy advocated by Keynes, has sadly proven to be a false reality. To be fair, just before his death in 1946, John Maynard Keynes told Henry Clay, a professor of Social Economics and Adviser to the Bank of England at the time, that he hoped Adam Smith’s “Invisible Hand” would help Britain out of the economic decline. He said to Clay: “I find myself more and more relying for a solution of our problems on the invisible hand which I tried to eject from economic thinking twenty years ago.” Clearly, Keynes saw first hand even before his death that government was incapable to really managing the economy from an unbiased perspective.
Every republican form of government historically has fallen and proven to be far more corrupt than even a dictator who does not have to sell his soul to win the next election. Julius Caesar assumed the position as Pontifex Maximus (high priest) who was in charge of inserting days into the calendar to create leap years on a discretionary basis. Caesar had to revise the calendar because the politicians manipulated that too by bribing priests in order to postpone elections. Nothing is beyond the corruption of government because politicians will do whatever it takes to win elections. The battle of Julius Caesar against the Oligarchy in Rome also centered around a massive debt crisis.
It is becoming increasingly clear throughout the developed world since the onset of the global financial crisis in 2007-2008 that socialism is collapsing. The advocates keep insisting that if they can simply grab every penny the rich have and hunt them down like vermin, their failed theories will be vindicated. However, what they fail to take into consideration is that borrowing has gone through the roof and about 70% of the national debts are now accumulative interest expenditure that has not benefited anyone but the bankers and bond-holders. Their entire theory of socialism is collapsing before their eyes.
The OECD has made it clear that the greatest obstacle to reduced unemployment remains the horrible labor markets in Europe, whose abysmal performance over the past five years has opened the door for extreme political movements and massive civil unrest. Looking at Southern Europe, Portugal’s jobless rate “has more than doubled from a pre-crisis average (for the years 2005-08) of 7.7% to a a projected 18.6% in 2014.” In Greece and Spain, the numbers are even more outrageous with the Greek pre-crisis average of 8.7% to a forecast 28.4% next year as a whole aside from the youth unemployment. This level is above the peak 25% in the USA during the Great Depression. The picture in Spain has jumped from 9.3% to 28.0%. also exceeding the peak levels on the whole of the Great Depression.
Politicians are dealing with failed old theories and have done everything to hold on to power rather than objectively consider that just perhaps Marxism, that caused Communism to collapse, is still the dominant doctrine in the West and is also collapsing. Government is far too corrupt to manage an economy in a fair unbiased manner. We are looking at a systemic problem that is now being perpetuated by the old politicians who refuse to comprehend that what they have been doing since Bretton Woods is wrong and is crumbling to dust. We are kicking up the leaves and the magic of Utopian dreams is gone.
To read the Employment Outlook in full, click here.