- Published on Saturday, 18 June 2016 13:58
Critical Thinking has long argued that the economic system is destined to collapse because it is fundamentally flawed and there are no remedies available within the current paradigm. Recognition of the impossible conundrum we face is gaining traction among "investment professionals". Bond guru, Bill Gross, is the latest to sound the alarm.
Gross warns $10trn negative yield 'supernova' to explode by Laura Dew
Worried by Brexit and negative rates, Bond guru Bill Gross has warned the $10trn "supernova" of negative yields around the world is at risk of explosion, as he also said a Brexit could introduce even more fear to markets.
The threat of Brexit is not the problem; irrespective of next week's UK referendum on EU membership, some Euro countries are verging on collapse. Arguably, the breakup of the EU and the Euro is the beginning of the way out of our conundrum. Countries creating their own interest free currency would remove the power of banks/markets to wreck the real economy while building resilience into the system. The real threat is the interest fuelled bubble exacerbated by Quantitative Easing and we're in uncharted territory with German 10 year "Bunds" in negative territory. Potential triggers for collapse in the system are many and various. Furthermore, the $10 trillion referred to doesn't account for all the derivatives which some estimates reckon could be as high as $700 trillion - when this blows, 2008's crisis will look like a minor inconvenience.
To understand why the system is destined to collapse and that fiscal and monetary levers are insufficient/incapable of remedying the situation, we need to jettison the faux economics fostered by the Structural Elite and start from first principles. It is not complicated and we don't need the dark arts of banking and economics, as practised today, to see how to fix the economy; it is common sense.
The first principle is to share the fruits of the planet (which can be owned by no-one) equitably; the second is prohibition of usury (theft) - debt should only exist as a social construct.
This is a radical departure from the current political economy in which ignorance of who controls this artificially complex economic system ensures the "rent seekers" (bankers and landlords) accrue all the wealth and power. The choice is radical change or collapse.