Max Keiser writes on Al Jazeera:
There's a decoupling in the wind, America is essentially finished as a global economic power. The US dollar is now finished as the world's reserve currency and we are going to see now some other country rise up and take its place, most probably China. This is entirely predictable … [in] the neo-liberal model, which means that credit is available for almost free.Europe's ascendency is relatively recent. Until the 17th century, Europe, India and China were level-pegging in terms of civilisation; the West has no presumptive or historical grounds for continuing to lead global development. Whilst it's not clear yet whether the 21st century will be the Indian century or the Chinese century, we must surely adapt to the new global realities.
Suddenly last summer, credit was unavailable, and then banks who need credit to live start to tumble. So this is gaining pace [and] there's going to be no credit for banks because you're talking about $700 trillion worth of debt in the global economy. The entire GDP [Gross Domestic Product] of the world is something like $60 trillion, so this has a long way to go as you deflate all of this debt back to something more sustainable. It's not a doomsday scenario if you're in a developing country and you've got stuff like oil in the Middle East or you've got huge savings, like they do in China. It is only a doomsday scenario for America and Britain that have been living on borrowed money for generations. It's a happy day for people who have savings, who have money, who have cash, who have stuff, who have oil, who have resources.
Guthrum's warning is prescient; now is the time that demagogues can rise, the time when extremism can flourish. Those of us of mine and Guthrum's age have enjoyed an unprecedented era of peace and prosperity; unlike our parents and grandparents we have never had to fight a war, never suffered disease, starvation or sudden death at the hands of the anarchic mob, never risked the wholesale destruction or loss of our homes and possessions. We've had a pretty good innings. Fools like Fukuyama who imagined this Edwardian summer would continue for ever learned nothing from history.
We face this crisis more atomised as a nation than ever before; ties of locality and community are loose. Decades of State centralism have sapped local and intermediate institutions. Yet central power is in reality weak; it's wholly dependent on a weakening consensus, nothing more. This is unprecedented. The central State without physical coercive power is in reality no stronger than the international banking community has proven to be. We're the thickness of a Rizla away from throwing excrement at tax collectors.
As banks and financial institutions will continue to tumble and even the public sector's pension funds turn to dross, as tax receipts dry up and the State's coffers yield nothing but a hollow ring, then we'll see what the British people are actually made of - do we still have enough of that indomitable spirit to forge something new from the ashes of the old?