Friday, 20 June 2014

The USA's and UK's economic Decline' is due entirely to our political classes' Inept Management of their respective economies and where they have given Control over the lives of 90% of the people to the Powerful Corporations and with that, total control over our political leaders. Unfortunately with the Emerging and Dominant Asian Economies this will lead to even more extreme poverty for 9 out of every 10 of both the American and British people




Prelude to the Article and Where we are presently - China now has the largest Corporations in the World and all fuelled by the  'Greed' of the Few and Super-Rich in the West where they have basically sold the West's people down the Swanny for their own self-interest 
To add to the constant warning again concerning the immense economic might and threat from the East and especially China,  Forbes last month detailed that China's corporations had taken over the top three spots of the largest corporates in the world and that in the latest Forbes's list of the top 10 companies, five were now Chinese. And all made possible by vast western investment continually over the last 30-years with no consideration whatsoever for the dire destabilising effect that this would have on the futures of people living in the West and for all future generations to come

Deprivation in Britain and Poverty is getting far worse and even among working families according to a recent  in-depth joint study by leading universities and government agencies (June 2014) - the PSE Project Report ('The Poverty and Social Exclusion project Report).
Indeed according to the report 1 in every 3 people in the UK are now living in poverty.

The report was undertaken by,
The University of Bristol
Heriot-Watt University
The Open University
Queen's University Belfast
The University of Glasgow
The University of Oxford
The University of Birmingham
The University of York
The National Centre for Social Research
The Northern Ireland Statistics and Research Agency

The report stated that 18 million Britons live in inadequate housing conditions (damp environments et al), 12 million people are too poor to engage in common social activities,  one in three people cannot afford to heat their homes adequately in the winter and four million children and adults are not properly fed.

Some 30-years ago 14% of UK people lived in poverty, but despite the size of the economy doubling since 1983 (actual quantitative and qualitative research conducted in 2013), now 33% of the British people live in poverty.
What is the reason for this continual and huge increase in the poverty levels within the British population? This article tries to identify the main reasons for why the British people (and those living in the USA and EU) are suffering from major deprivation and poverty and why unfortunately it will continue to become an even greater problem for future generations to come.
Some 30 years ago the 'markets' were being liberated according to our political class. This was the time when the modern globalization phenomenon started in earnest and where vast investment influxes transferred from the mature western economies to the emerging eastern economies. In this respect we are talking of trillions on trillions of dollars over the last 30-years being diverted from West to East. Some economists have estimated that over the three decades of this period of vast unprecedented capital investment transfer by western business including the banks has been in excess of US$70 trillion or the nominal total economic turnover of the world in 2013 approximately. Therefore the GDP of the whole world for 5-years out of the 30-years covered has been invested in the East and transferred from the West. In 1983 the GDP of the world was US$11.3 trillion and in 1987 it was US$17 trillion (at current $ prices).

To add to the constant warning again concerning the immense economic might and threat from the East and especially China,  Forbes last month detailed that China's corporations had taken over the top three spots of the largest corporates in the world and that in the top 10 companies, five were Chinese. And all made possible by vast western investment continually over the last 30-years with no consideration whatsoever for the dire destabilising effect that this would have on the futures of people living in the West and for all future generations to come

 
It also has to be noted that in 2011 the world's GDP jumped from US$64 trillion in 2010 to US$71 trillion (an increase of global wealth created of US$7 trillion). This was the greatest ever surge in wealth creation recorded in the world's GDP in a single year. So another question that has to be asked is, why did not the vast majority of people throughout the world (and especially in western economies) feel a rising increase in wealth also instead of a reduction in wealth? The answer can only be that the minority few increased their wealth - the super rich and corporate executives as this US$ 7 trillion had to go somewhere.

What happened of course as history has shown is that as these vast investments transferred to China in particularly, huge job losses in western manufacturing and service industries were lost and more predominantly in the West's manufacturing sector. With this western plants and operations were closed at a speed of knots never seen before and with that tens of millions of what were before western jobs, transferred from the West's economies to the emerging East. No consideration whatsoever was given by big business (that has no empathy with humanity in reality and where only shareholders are their only concern) to these tens of millions of job losses in the West over the last three decades.

Indeed due to this negligent and self-interest nature of big business, Detroit City was made bankrupt as just a single effect on the US economy.
So basically the real demise of western economies and their people was caused by the West's largest corporations and banks investing not in jobs and long-term security of western people, but in investing in the economies of the East on an unprecedented scale. Indeed the 'Fast buck' mentality of the 'Market' destroyed the futures of over 90% of western people (USA and EU predominantly including the UK). In this respect also do not believe the massaged government unemployment figures for the UK, as the true official unemployment and economically inactive in the working age group 16-64 year of age is 8.82 million (excluding retired pensioner that number a further 10.8 million - June 2014).

As at April 2014 there were 30.54 million people aged 16 and over who were in employment and 19.62 million unemployed, economically inactive and pensioners, the employment to unemployed ratio is 30.54:19.62. Therefore nearly 20 million people are reliant on 30.54 million employed people for their very existence in many ways in the UK today (as they are the ultimate creators of wealth for the welfare state). But a future problem to come for the UK is that economists and statisticians predict that by 2050 (and only some 36-years from now) there will be 19 million pensioners to support in their twilight years. So further economic and social hardship will invariably come in future times. One of the reasons why out stupid politicians have an open door to immigration as they see new and young people from the EU as their salvation in this respect, but where of course they always forget that these young people will be old someday. So the EU is a nice smoke screen in some ways and someone to blame.

The greatest reason why western economies have and will decline further in the future and 'especially' why their people have been Progressively impoverished is due to the 'overriding' Political-Business Agenda
When we look back over the last 30-years we can see that the wealth of the world has predominantly gone to the richest people and where last year according to Credit Suisse in their 'Global Wealth Report', a mere 0.7% controlled 41% of the world's total wealth and the top 10% controlled 86% of the world's total wealth, leaving a mere 14% of the world's total wealth to the remaining 90% of the world's population. Adding to this Forbes quoted last year that the 'Global 2000' controlled 51% of the world's total economic turnover (a mere 2,000 companies) and one can clearly see what globalization has done for humanity. One can also see through this immense financial and economic power that US and EU politicians are the puppets and not the puppeteer in this so-called working together arrangement. Indeed this has been the case since 1945 and where money has always talked behind closed doors. In this respect the vast contributions in both the American elections for president and those for the British prime minister are a pointer to the close arrangements between powerful corporates and the political elite.

'The Lie Machine' - http://www.opednews.com/articles/The-Lie-Machine-by-Paul-Craig-Roberts-America_Corporate_Corporations_Power-141012-777.html by Dr Paul Craig Roberts, former Assistant Secretary of the US Treasury for Economic Policy in the Reagan Administration

This system has taken from everyone on the planet except for the top 10% of humankind. Indeed this 10% is getting richer by the year and where they will get even richer with the present capitalist globalization model in full flow. In this respect the EU-USA Trade Pact (TTIP - Transatlantic Trade and Investment Partnership) will add more wealth to the few and give nothing back to the 90% of the population of the USA and EU who are the ones who physically buy these goods and services. It is ironic that the ones who make the TTIP possible and work (spend the bulk of their money within this trade agreement) will be the ones again who will suffer. The reasons are made clear below.

TTIP - Transatlantic Trade and Investment Partnership
This so-called 'free-trade' agreement has been formulated behind closed doors (public not allowed into even monitor the agreement meetings) between senior EU and USA political representative/negotiators together with corporate advisers on behalf of the US government, the European Commission and the giant corporations. Basically they are secret meetings and where there is no transparency between the people's elected political classes and the people themselves. Some would say that this is democracy but where others would say it is not. For what is to hide when two economic blocks just want to trade with each other. Therefore the only reason therefore why this is the case is that certain agreements are being made that are not in the interests of the people, but big business and their wealthy shareholders. Indeed what is to hide as free trade should mean free trade with no attachments or unfair clauses considered. Therefore openness and transparency are not a part of the TTIP and people will only learn of the horrible truth when our political and corporate elites have done and finalized the deal.
Several things are known though and where these built in clauses that have been drafted to date are overridingly not in the clear interests of the majority of the American people or people within the EU28.

1. The first fact is that the Treaty allows multi-national corporations to have a minimum profit and if that profit is not attained they can sue sovereign nations (both the USA government & those of the EU countries) for the difference.
But who knows what is a reasonable profit and what is a loss as corporate accountants are continually cooking the books as we know (Enron, the big 4 accountants and all the global banks et al come to mind and even the EU who have never had their accounts signed off).  So it is open season for these corporate giants and a recipe to clearly write out their own cheques. Indeed the special courts that are to be created to determine the cases brought by corporations will be held in secret and behind closed doors. But this totally undemocratic and corporate controlling aspect over the laws of the land (and politicians), is that this secret court will be able to override the sovereign laws of the country that is being taken to court. No ifs and buts about it, period !

2. The Secret TTIP Court
The TTIP court will rule over all trade disputes without the people, who pay for the goods and services, being able to have their say. So if a corporation cannot obtain the agree mark-up on their goods that they sell to the American people or the people of the EU (some 800 million+), they will acquire it through the taxpayer and where the people one way or another will pay in the end. What happened to competition one has to ask and where the corporation will be fully protected, not the people themselves who to all intents and purposes will be fleeced. It is beneath contempt that our politicians are allowing this, but they certainly are.

Therefore if this trade pact is signed off by our politicians, the vast majority of the people (90% at least) will not gain at all through this agreement but where the mighty corporations, their investors and the rich will as usual. It is strange how our politicians are allowing all this to go on and place  their people in ever more future debt. But where it has to be said that both politicians and the corporations lie in the same bed of self-interest these days.

Debate in the US Congress & Senate, the House of Lords & House of Commons and all EU Parliaments and their Legislative Institutions
This TTIP is so important that all citizens of the USA and the EU should lobby their politicians and lawmakers for open debate on this trade agreement. If democracy exists, this should happen and the will of the people listened to. Indeed if this is not the case, democracy has totally failed the people.

The so-called 'Free-Press' and their Involvement in Suppressing what is really going on
It is strange that little has been mentioned or wrote in the media in general about the EU-USA trade agreement. Indeed, certain newspapers have refused to print even letters that inform the UK people about the TTIP.

Recently in June 2014 as an example, a regional paper who would not put in print the following letter.

" TW's letter was intelligently to the point as usual (NHS is becoming private - 6 May 2014). For people just do not know what our politicians are cooking up behind closed doors with the giant multinationals with regard especially to the USA-EU trade pact. Looking in-depth at the deal it certainly will not benefit 90% of the people in the EU including Britain  (we are seen as the cash-cow by the corporation) and only the rich 10%, who according to Credit Suisse's 'Global Wealth Report' last year controlled 86% of the world's total wealth and where a mere 0.7% controlled 41% of the world's total wealth will benefit.

For this new trade pact will allow corporations (the rich shareholder's cash-cow) a minimum profit and if they do not get this they can legitimately sue sovereign governments for it - a guaranteed profit and not in the interests of the vast majority of the people. Indeed corporations in secret courts (yes, secret courts where no-one other than the parties will have access) will be able to override sovereign laws of the land. Sounds impossible, read the small print within the trade pact if you must.

Therefore inequality will grow even further over the coming years (has been doing so in the west for 25 years now in real terms) with this trade agreement and where the 'middle-class' in the west will decline significantly over the next two decades in preference to the super-rich and wealthy who wish to have this negative trade cake and eat it. Indeed it is like research published today by the think-tank Civitas that states that the EU has provided the UK with NO trade benefit. In this respect it states that trade with other EU nations makes up no more of the UK's trade now than it did just before Britain joined up to the EEC in 1973. But of course the politicians will have an answer as usual to these economic findings that indicate that there is no economic basis for staying in the EU."

The reason for not accepting the letter from the sub-editor was,

"I think it's a very difficult letters to follow and talk of 'behind closed doors' and 'secret courts' smacks of an accusation of corruption."

Thereafter a second letter was resubmitted,
" In an open democracy people have to know the full facts if they can and compellingly before making any meaningful judgement that will affect their lives in the future. Recently there has been quite a few comments in the paper concerning the European Union and whether we should stay in the EU or opt out. But little known or detailed in the media is the proposed USA-EU trade pact. In order for the people to make an informed judgement on the EU issue, they should understand this trade agreement also as it will form part of the European Union's adopted policy. In this respect this trade pact has a few major concerns for the people of Britain and the EU. One of them is that the agreement will allow a minimum profit guarantee for the US and EU corporates and if that is not met, corporates can sue sovereign governments for the difference or profit in its entirety.  Indeed added to this,  special courts will be created to process disputes, but where these courts will be able to overrule sovereign laws including those in the UK and throughout the EU. But added to this,  no-one will be allowed to see or hear the court proceedings and where outcomes will not become public. It is therefore debateable to whether this trade pact is in the interests of the people of the Britain and the EU or in the interests of corporations? But another aspect of this Atlantic trade pact is that it will open the door even more for the privatisation of healthcare throughout the EU including the UK. Indeed some commentators are expressing the fact already if this trade agreement goes through, that the powerful corporate US healthcare industry is poised to make significant inroads into the NHS. Apparently the conservatives, Labour and Liberal-Democrats must know this also, but where there has not been any political overtones to these facts to date from our political parties or their leaders. The people basically need to know and this trade pact should be debated in our parliament and all parliaments within the EU before the pact is signed. But will it and that is the main democratic concern?"

The paper concerned has still declined to put the letter in print

Therefore it appears that the press and media are not informing the people about the TTIP and where they will know nothing about it until it is too late and our politicians and corporations have done the deal in secrecy and behind closed doors. Is this democracy?


But back to the main thrust and where politicians hand-in-hand have worked with the West's giant corporations behind closed doors since the end of WW2. Indeed our political custodians of our democracy have ridden roughshod over the people and lined their pockets as much as the executives and shareholders of the corporations. This has caused a development mechanism around the world that awards vast wealth to the very few and our political classes but which has taken away continuously the wealth of the people for their own self interests.

In this respect a great cause of conflict around the world is down to immense wealth disparity between the few and the many. Indeed this has been the reason for revolutions as history has  recorded. But in modern times a strange thing happened also and where although the majority of people got poorer after the financial meltdown in 2008, for the first time in history, the rich got ever richer - this phenomena had never happened before (not even in the 'crash' of the 1930s or the China Sea bubble) and where the richest 100 people in the world in 2012  increased their personal wealth by a staggering $240 billion, enough according to OXFAM to make extreme poverty history four times over.

Therefore it appears that with our politicians hand in glove with the mighty corporations, this control mechanism over the people of the world will not solve humanity's greatest problems and where they will be exasperated by this global development mechanism that makes the very few richer than they could ever have imagined and place 90% of the world's population in declining living standards and poverty.

Is this the system that will save the human experience? I very much doubt it but where as the world eventually implodes, the rich will also be dragged into the demise of humanity as there will be no hiding place. Unfortunately these people think that they are immune but where very quickly they will find out that they certainly are not.

Therefore considering these facts it is in the richest and most powerful people in the world's interests to change to a system that is sustainable and pluralistic in nature. If not, the grandchildren of both 90% of the people of the USA and EU will certainly suffer as the economic might of the East, that has been fuelled by western corporations and western banks, bits us all back where it hurts most, the economy and ever reducing standards of living. For China has only one primary objection in this respect, to control the global economy that both the USA and countries within the EU once controlled. But things this time will be extremely hard as China takes no prisoners as history again has shown clearly.

Dr David Hill
CEO
World Innovation Foundation

20 June 2014



Links & Information

The World's Largest Companies: China Takes Over The Top Three Spots
http://www.forbes.com/sites/liyanchen/2014/05/07/the-worlds-largest-companies-china-takes-over-the-top-three-spots/


Western Politicians and Corporate Leaders have sold people in the West down the Swanee
http://worldinnovationfoundation.blogspot.co.uk/2013/12/western-politicians-and-corporate.html

Film Documentary - 'The Corporation : The Pathological Pursuit of Profit and Power' https://www.youtube.com/watch?v=Y888wVY5hzw

World Bank  - World GDP in Nominal Terms and in Current US Dollar Worth (1961-2012)
http://knoema.com/mhrzolg/gdp-statistics-from-the-world-bank#World

UK's Debt is far more than what people really think
http://worldinnovationfoundation.blogspot.co.uk/2013/12/uks-debt-id-far-more-than-what-people.html

Poverty hits twice as many British households as 30 years ago - The Guardian (19 June 2014)
http://www.theguardian.com/society/2014/jun/19/poverty-hits-twice-as-many-british-households

The European Union (EU) is Heading Towards Terminal Economic Decline, but where their Politicians Haven't the Knowledge to Realise What is happening and Why?
http://worldinnovationfoundation.blogspot.co.uk/2014/05/the-european-union-eu-is-heading.html

Office of National Statistics (ONS) - 'The latest on the UK labour market (February> April 2014)
http://www.ons.gov.uk/ons/rel/lms/labour-market-statistics/june-2014/sty-labour-market-statistics.html

With Global Natural Resources Running Out this will lead to Global Wars that will Destroy the Human Experience if Political Leaders and the World's Most powerful Corporations Do Not Come to their Senses over the next 20-years
http://worldinnovationfoundation.blogspot.co.uk/2014/05/global-resource-running-out-will-lead.html

The Ageing Population
http://www.parliament.uk/documents/commons/lib/research/key_issues/Key%20Issues%20The%20ageing%20population2007.pdf

With the Constantly Growing Economic and Financial Might of China and South-East Asia, the West has to Fight Back using its ‘Greatest Strength’, the Liberation and Innovative Exploitation of its Superior Fundamental Thinking in the field of Creative Global Technologies
http://worldinnovationfoundation.blogspot.co.uk/2013/12/with-constantly-growing-economic-and_10.html

Later Life in the United Kingdom - June 2014
http://www.ageuk.org.uk/Documents/EN-GB/Factsheets/Later_Life_UK_factsheet.pdf?dtrk=true

Democracy died a death when 'Partyocracy' and 'Corporatocracy' Corrupted the System and became the New way to Control People and run a Nation
http://worldinnovationfoundation.blogspot.co.uk/2014/04/democracy-died-death-when-partyocracy.html

This transatlantic trade deal is a full-frontal assault on democracy
http://www.theguardian.com/commentisfree/2013/nov/04/us-trade-deal-full-frontal-assault-on-democracy

The vast wealth of the few and the poverty of the many will fuel eventually global conflict
http://worldinnovationfoundation.blogspot.co.uk/2014/01/the-vast-wealth-of-few-and-poverty-of.html

The cost of inequality: how wealth and income extremes hurt us all
http://www.oxfam.org/sites/www.oxfam.org/files/cost-of-inequality-oxfam-mb180113.pdf

Globalization is not the panacea for global Good or the sustainability of Future Humanity and can only end in a world in extreme conflict with itself and oblivion
http://worldinnovationfoundation.blogspot.co.uk/2014/01/globalization-is-not-panacea-for-good.html

Global Wealth Report 2013 - Credit Suisse
https://publications.credit-suisse.com/tasks/render/file/?fileID=BCDB1364-A105-0560-1332EC9100FF5C83

Global Corporations, the people's Governments, Natural Resource Depletion and Dire Global Climate Change are starting to act together to destroy humanity...and that is a fact
http://worldinnovationfoundation.blogspot.co.uk/2014/04/global-corporations-peoples-governments.html

Forbes Global 2000: The World's Largest Companies In 2013
http://www.economywatch.com/companies/forbes-list

Global Poverty and Inequality are the Reasons for Wars and our Politicians and the Super Rich should Clearly Understand This !
http://worldinnovationfoundation.blogspot.co.uk/2014/01/global-poverty-and-inequality-are.html

Foreign Trade Practices Are Often Predatory
http://economyincrisis.org/content/foreign-trade-practices-are-often-predatory

The European Union ( EU ) is a long-term ‘Disaster’ waiting to happen over the next two-decades and therefore why should we the people pay for an ultimately failing system - especially when there is no accountability and the costs are astronomical and rising?
http://worldinnovationfoundation.blogspot.co.uk/2014/03/the-european-union-eu-is-long-term.html

Big Business and Western Governments are leading us to the Abyss and Agamemnon in Many Ways
http://worldinnovationfoundation.blogspot.co.uk/2013/12/big-business-and-western-governments.html

What you should know about the 'Gates Foundation' and Others, and how they manipulate the system to their own ends and predominantly unknown to the people - indeed they are not the so-called good guys that they make out to be - http://www.opednews.com/articles/Privatized-Ebola-by-Margaret-Kimberley-Bill-Gates_Bottom-up-Top-Down_Ebola_Philanthropy-Giving-141016-114.html
In this respect also, in an up and coming article we show how 'Corporates Psychopaths' have and are destroying the World and Humanity - watch out for it as it will blow your mind and never see the world again as it is.





 

 

 

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