“New Normal”: The Return of Power Symmetry in Global Affairs

Share

Reportedly, at the 2010 “World Economic Forum” in Davos, the informal motto is “new normal”. However, this catchword is not supposed to mean that there is a return to the “normality” of the “anything goes” decade prior to the financial crisis. Of course, many financial actors in the USA and Europe are indeed trying to go back to the paradigm of financial speculation with no regard for the real economy. However, I venture the forecast that this attempt will fail. Why? Because another “financial crisis” of the the type we have seen in 2007-08 would not only blow the financial system, but would demolish the whole Western societal “system.” And the political class does know that. Moreover, the Western finance class is the prime “loser” of the new power symmetry in world politics.

Weiterlesen

List, Schumpeter & Lautenbach vs. the „Merchants of Hysteria“

Share

In the United States, the Obama administration is launching a giant $850 billion Keynesian “stimulus” package. At the same time, the banks are escalating their pressure on the state to create a “bad bank” for some trillions of “toxic assets.” The state “bad bank” scheme would mean the socialization of privately incurred speculative losses – and probably a state bankruptcy. Instead of frantic activism, the following question must be addressed: What can the state do to promote and encourage scientific-technological and social policy innovations, that generate sustainable investments, employment and growth in the real economy? In Germany, three books – by Friedrich List, Joseph A. Schumpeter and Hans Schaeffer – have been (re-)published which open up new avenues of thinking for answering this question.

Weiterlesen