The July 2015 30% swoon in China’s Shanghai Composite Index was a harbinger of a deflationary downward spiral about to beset the global economy. Having failed to bait the Russian bear into World War III, and with an Iran nuclear deal imminent, the banksters now see the writing on the wall. A deflationary depression is imminent.
Oil is trading at $48. Gold is at a 10-year low. The entire commodities complex is collapsing, while the dollar strengthens. Corporate earnings, where there are any, are driven by phony stock buyback schemes as the financialization Ponzi scheme continues apace.
The US stock market is sitting on the precipice of a mega-crash which will make 2008 look like a walk in the park. It should be an interesting Fall.
Bottom line is that the Chinese economic engine has given out – a victim of cowboy capitalism and speculators. Sound familiar? Without a reflationary world war, where will global growth come from?
While Rome burns, the Donald Trump-fixated media ignores the one Presidential candidate who has the answers – Senator Bernie Sanders (I-VT).
Despite this, the 74-year-old Sanders, a self-avowed democratic socialist, has been generating huge crowds of mainly young people wherever he shows up.
Sanders knows that global growth can only be stimulated by massive domestic government infrastructure programs all over the world. The age of austerity, ushered in my Ronald Reagan, must end. Monopoly capitalism has reached its peak and, with wealth concentrated at all-time highs, offers nothing in the way of good jobs for the vast majority of people. Government spending is the only way to create meaningful jobs at this time.
The US should focus on demilitarization and tax-haven reforms, while funneling this revenue saved into domestic infrastructure programs to build water and sewer systems, roads, high-speed rail lines, small hydro projects, etc.
Nationalization of the Federal Reserve should be followed by the nationalization of oil, mining, grain processing and insurance sectors.
This is the only way we could have avoided the looming deflationary depression, but it is too late. Still, this left turn in US politics can also take us out of the coming crisis.
Everyone should get out and work for the election of Bernie Sanders, first in the Democratic primary, then in the general election. With Sanders, we have a real chance to turn things around.
Dean Henderson is the author of five books:Big Oil & Their Bankers in the Persian Gulf: Four Horsemen, Eight Families & Their Global Intelligence, Narcotics & Terror Network, The Grateful Unrich: Revolution in 50 Countries, Das Kartell der Federal Reserve, Stickin’ it to the Matrix & The Federal Reserve Cartel. You can subscribe free to his weekly Left Hook column @www.hendersonlefthook.wordpress.com