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Knockin' On Aftercrisis Door. Some sketches for future solutions.

Discussion in 'U.S. Politics' started by Paul Lasaro, Jun 10, 2009.

  1. Paul Lasaro

    Paul Lasaro Active Member

    May 20, 2009
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    Talking in a simple way, the global economic crisis was caused by an inadequate system of control. Politicians and financiers hadn’t foreseen the fact that was known to drivers and engineers for many years – if a car goes by too high engine rotation, the motor burns down. The same happened to large economics – they were too long driven at high speed and got burnt. Safeguard mechanisms are included in modern cars, doing too fast turnings, they automatically are reduced. Unfortunately, world powers of global economics did not have this system or they had but it was too weak.

    It is not so that nobody saw it, understood it and warned about it. However, systemic changes in society are carried through only in case of something cardinal. It is bitter truth and 9/11 is the most tragical evidence for that. Also then there were several warnings, the USA specialists understood for a long time that the country internally is not protected enough but systemic changes could be done only after the tragedy. (read - Paul Lasaro "Americans got message before September 11 attacks")

    Right now the world is discussing how and what must be done to prevent the financial problems in future. There is a discussion going on about the technical solutions but it is clear that for the engine of free market the control mechanisms will be improved and they will give signals in time and tell when to reduce too high rotation. Systemically, with help of regulators. It is a really significant question because a winner will be the economics having the most effective system that allows simultaneously to maintain fast driving, manoeuvrability, save some petrol and comfortable movement.

    Another essential factor that was highlighted by the crisis has to be understood. It is not enough if only big financial organizations and companies are controlled. Stronger control will be needed over individuals’ finances or in another words – tendencies on spending money. It’s no use in moralizing about the virtues of consumer society. People are not able to control this process anymore. Each individual alone can’t cope the pressure of refined marketing and promotional industry. If banks and goods suppliers decide that people have to spend more, then brainwashing will last so long till a person is not able to resist it. A person will start spending even being aware of getting into credit coil where - next to impossible - you can’t get out from. Temptations to live luxuriously will waylay on TV, from your post box, private e-mail, glossy magazines, sweet politicians’ lips and other imaginable and unimaginative channels. Commercials not only know how to work over your consciousness but also subconsciousness. There even conscientious and intelligent person is not able to stand up to it. An ordinary man is too weak against the huge and refined marketing industry. Don’t be under the illusion!

    Then we will be able to come together again and read Hans Fallada „Kleiner Mann – was nun?” With all resulting consequences.

    A stronger control of individuals’ credits will be necessary because a complete summary of state’s total economic situation can not be obtained without it. The emphasis must be placed on its quality. For the protection of individuals and for assessment of banks portfolio credits.

    The biggest problem here could be administration. Kind of. It has to be reminded that the crisis has coincided with the growth of new technologies. The Internet has practically reached the level when it can be used also in relations of state and society.

    It coincides with the observations of nowadays so popular economist Carlota Perez that crises have been overcome, rise starts when new technologies are completely acquired. The Internet practically is in the stage when a state can use it fully for its needs for economics and political life – get fast in touch with its citizens in political matters, follow effectively the finances starting from big banks to each individual. Because these two are linked more closely than we have thought so far. The state followed the income of the citizens but did not know anything about their credits and tendencies of true consumption.

    Now it’s the time when the developed countries will try to adopt for their needs the experience of social portals and Internet banks.

    For political needs „The profiles of Citizens” will be gradually developed, for control of finances – „Profiles of Finances” – where like it was in the system of Internet banks income, expenses and credit-ties were listed. Both, most possibly, will not be directly related. Now citizens and/or banks will have to register also the credits. That will warn much faster about each individual’s financial situation, the state and banks will sooner notice when their portfolio credits are getting dangerous, it will be possible much faster to reduce the pressure of consumption and to find the solutions how to balance the parts of incomes and expenses.

    According to certain criteria credit standing and financial stability for each individual will be defined. It will be calculated on the basis of several important factors – education, regular work, incomes, dynamics of credit-ties and other criteria. It will reduce the appetite of banks to take a risk with doubtful credits and to bluff about gainings of securities. A state will automatically see which bank has a craze for unreasoned crediting. It is important not only because of bank customers but for backing off in time motiveless warming-up of economics with all its consequences.

    Several Northeuropean countries which are quite close to complete state administration on the Internet are already technically ready to introduce such systems. They will only need some changes in legislation that can’t happen very fast.

    Anyway it’s clear that greater stability will have those countries that can implement these control mechanisms more effectively. Countries being behind will be considered to be less safe and they will slowly be moved aside in the periphery of global economics.

    Similarly the political relations of citizens with the state will be formed, as I mentioned above, on the basis of social net experience "Citizen Profiles" will be created where citizens can vote, express their opinion about certain important state matters, show their likes and dislikes to the parties and elected officials. It will offer far more dynamical conception about citizens’ mood and allow politicians to respond and take actions more precisely. We see already now that politicians are gradually moving their discussions in the Internet environment. The open meetings of parties and demonstrations have already turned into show performances where nothing is discussed and decided. The brainstorms have already been virtualizied.

    However, the Internet brings also some other changes, rather to say - threats. It can substantially endanger the freedom of Word. The traditional newspapers slowly lose their positions, more and more information dominates on the Internet. It means profound problems of quality. Professional journalists lose their incomes, they can’t earn adequate sums of money on the Internet and it means that qualitative journalism will decrease. The same will be to the freedom of a true word. A professional journalist can provide up to 95% correct information, multiplied bloggers in the Internet environment on average not more than 50%.

    Society might be in danger soon because qualitative information will be suppressed by pseudo information of doubtful quality. All kind of charlatans will have again a possibility, the most talented will immediately be politically engaged. Paraphrasing – the society that spares money on its soldiers soon will feed its invaders.

    And what then? „Kleiner Mann – was nun?”

    Have a nice Day and be careful,
    Paul Lasaro

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