Follow The Leaders - Global Formations - PART 4 Isokratia Global
With China’s admission into the club, the G7 have now become the G8. The G8 club is for the eight industrial powers of the world. Since it’s formation, the ex G7, now the G8, will formulate policy and the rest of the world have no alternative, but to follow. This follow-the-leader policy has, for a long time now, been proven wrong and totally false. Let alone the fact that the eight sometimes do not even agree between them.
Unless the rest of the players, or all of the players, play a part in policy decision, the system will keep crashing,. Each time more and more painfully. What the G7/G8 fail to see is that each crash no matter how small and how far, it always has a side effect on their own economy. The ferry passes at mid day but the wave formed by the ferry only reaches the shores hours later. A few of these small knock effects and the G7/G8 can then feel the effects, irrespective how remote the origins were. Sometimes these effects can become even more catastrophic for the G8 than the countries they originated.
Primarily concerned with their own benefits, the G8 policies are not always a recipe for the economic illness or epidemics, of the rest of the world. Each time, however, the bug is getting closer and closer to the so-called G8. When the crash finally strikes the inner economic web of the G8 home fronts, then the rest of the world is considered. Only because the G8 have cached the bug.
Many times the bug is created and spread, only as a direct response to the G8 policies, by some other exclusive clubs. Exclusive clubs, can also yield powers to influence global economic activity. When we experience such a phenomenon, it usually results in a momentously, much more powerful crash, than that of the crash of economies outside the G8.
Those of you, who may remember, take your thoughts back to the eighties and the devastating economic effect on the global economy, which was brought about by the response of the OPEC exclusive club to the high cost imposed on them by the G8 exported goods and services. Imported inflation through sudden huge rises I n the cost of oil!
Imported inflation, the worst fear of all markets. As the OPEC countries faced imported inflation from the multiples of price increases set by the G8 from where the OPEC where importing the majority of goods and services, the OPEC had to respond with equally if not higher prices for their goods primarily oil. The end result the G8 fall victims of their own and suffered total economic depressions from the bug of imported inflation which they first exported to the OPEC countries.
Imported inflation laying completely out of each market’s controls, it sparked uncontrolled inflationary pressures. It then spreads to all internal sectors of every economy. Sometimes wiping out whole industries. Sometimes turning whole industrial communities to industrial graveyards. Ask the small mining communities in the UK who have ceased to be.
The G8 may experience and attain much more false, or short-term market turmoil, than the pains experienced by countries outside the G8. The pain can be more intense though. Lets face it, the drastic measures taken by the G8 in relation to global economic state of events, are always administered much later, than they could have been.
When we hear the G8 say they came to the rescue of the world, or regional economies, they only did so, because of the fear that the bug may strike them. Or to be more precisely, to offset the impact in their economies when the bug hits them. It is only when the economic turmoil bangs on the G8’s doors, that they rush to the rescue of the periphery. Untill then though it is often too late for any desire results to be achieved from the proposed solutions.
Since the Second World War, (which was clearly begun, because of the economic instability and upheaval in Germany), various International bodies where formed, with the aim of stabilising and averting such past experiences. We have seen the Security Council, the United Nations, the IMF, the G8, and so on. In fact, it is an illusion to call these formations international. For the likes of National Security Council, the G7 and others, are only open to the few, be it economic or military powers.
Other formations, such as the United Nations, though open to all, it is influenced and used by those in power, for their ambitions and benefits. In fact, if you like, it is because of this abuse of power and direct influence ability, that the rest of the Global economy members, are resenting and are fast becoming uneasy with the few; especially what I call the ex-economic colonies.
Ex-colonies will fight back domination by super-globalise western economies. Even individual members of the exclusive clubs, feel threatened and have begun taking responsive measures. Japan is one such example. They have taken a giant step towards consolidation of their banking sector, with the announcement of a three-way merger between Dai-ichi Kangyo Bank, Fuji Bank and Industrial Bank of Japan. Their united assets will outweigh those of the rivals, such as Deutschebank in Germany and the City Group, to create the worlds largest bank.
This happened in the year 1999, in the month of September. One year ago, nobody could have predicted this phenomenon. Everybody thought that with the collapse and financial crisis in Asia, other countries would gain from it. However in this case, we see that the fruits of the Asian financial crisis are not going to fall into hands other than the Asian countries as easily as people had thought, or as exclusively as some may have thought. The fight back of the economic colonies, was finally even assisted by the few super economies. Why? Because of the fear of the effects reaching the homes of the super economies. A vicious circle which need not be allowed to happen again and again.
Where does this formation of exclusive and powerful clubs lead the global economy? That’s the question we need to address urgently. Do we have to witness these exclusive clubs inflicting pain and misery to each other and in that course to the rest of the globe? Do we need to experience another world war be it military or economic, before we come to terms with such one sited policies? Do we need to experience misery and immense suffering before we get all such clubs joint together into one, truly global umbrella for the benefit of all global economies and all the global citizens?