I have been reading, Planet Financial Predicament and Prospects 2009. It is a joint solution of the Division of Financial and Social Affairs, the United Nations Conference on Trade and Improvement and the 5 United Nations regional commissions. It is an assessment of the international economy for 2009. I think about this report in the context of the evolution of human civilization that I have been studying for a lot of years.
The report appears to be saying that the monetary infrastructure set up at the Bretton Woods conference in 1944, which includes the IMF and the Planet Bank, is basically bankrupt beyond repair, and that we are operating on creating a new option international banking technique. The United Nations is creating a multi-polar economy, that consists of all nations and a number of currencies, as an alternative of the US$ primarily based economy set up at the finish of WWII.
Even though the complete globe economy is grinding to a halt, China and OPEC look to be the nations with the most … savings to invest in financial stimulus spending. The USA is spending trillions of borrowed dollars to stimulate its economy. The EU is also spending borrowed dollars. India appears to be operating in the black, but does not have the mountains of money like China and OPEC. The UN is operating on creating a coordinated response to the international crisis.
I can try to remember fuel costs spiking a couple of years ago. Oil was $140/bbl and fuel was extra than $four/gal. Just as all of a sudden as it shot up, the costs collapsed. Now, a couple of months later the complete globe economy is coming unglued and spiraling into the worst economy considering the fact that the 1930s. The Planet Financial Predicament and Prospects 2009 says the corruption in the US banking technique is the original impulse that has triggered the economy to unravel. The actual estate initial, and then the whole credit market and now the complete globe economy is crumbling.
I suspect that the corruption in the US economy was undoubtedly a aspect contributing to this recession, on the other hand, there are other aspects that are not becoming pointed out, at least that I am conscious of. Primarily, the impact of transferring trillions of dollars from the sophisticated industrial nations to oil exporting nations. Its nearly like one more battle in the war on terror. These civilizations are clashing for the reason that they are coming collectively. We are all interdependent, individually, nationally and globally.
The report mentions that the Millennium Improvement Objectives are far much less most likely to be achieved for the reason that of the slowing economy. An additional aspect of the story is the meals crisis. The rising fuel costs drove the cost of meals larger which has had a significantly damaging impact on the poorest people today on earth.
The UN is responding aggressively and we are creating a new international monetary infrastructure. It is primarily based in the UN rather than the G-eight or even the G-20. We want all nations to participate in our financial consultations. We are also increasingly universal in scale, rather than national. This way the nations can operate in concert with one particular one more, as an alternative of a haphazard response at ideal, a competitive response at worse.
We can not afford to let this childish fighting more than the earth's sources to continue. There are a lot of sources for absolutely everyone to reside comfortably. These periodic shortages and financial upheavals that we have been experiencing throughout my lifetime are entirely artificial. We can no longer let a tiny minority of earth's inhabitants to fight more than the material prosperity of human civilization.
We are swiftly creating a international monetary and financial infrastructure that will be cooperative, transparent and function in harmony with earth's biosphere. We are establishing a extra excellent union, a universal federation of nations. We are all accountable for this. Human civilization is what ever we make it. Just about every single human becoming alive on earth is accountable for creating the globe a far better location, for generating a secure, clean and decent society.
Be sort, friendly and polite.