As Pepe Escobar outlined in his recent Global South: Gold-backed currencies to replace the US dollar, during the past months, the world saw Eurasian nations take great strides towards the inevitable creation of an alternative financial system capable of withstanding the effects of the onrushing blowout of the $1.5 quadrillion bubble that some still wish to call the “western banking system”.
Contrasted with those ideologues committed to preserving the unipolar hegemon propels in a bid towards hyperinflationary (and possibly thermonuclear) hell, the BRICS nations have announced three new members (UAE, Bangladesh and Uruguay) to the membership roster of the New Development Bank. Meanwhile Turkey, Saudi Arabia and Egypt have all officially applied to join BRICS+. Additionally Russian ambitions for a new Arctic development vision that entails a multi-generational grand design for the far east and northern-most regions of Eurasia has also created a climate of long term thinking that is in total synergy with China’s Belt and Road Initiative.
The Roots of the Oncoming Collapse
While many a myopic economist treat the oncoming collapse of the western banking system as a non-event (or the unavoidable effects of a pandemic), the reality is that this blowout has been a long time coming. Events associated with the Coronavirus-induced economic shutdown may prove to be the pin prick that blows the bubble, COVID-19 cannot be said by any honest person to be the actual “cause”.
It is difficult to pin-point the exact “moment” in time that the trajectory of the system found itself on a path towards a self-implosion… but it wasn’t a virus.
Months before anyone had heard the name “COVID-19”, former Bank of England Governor Mervyn King was already looking at the newly revamped bailouts begun in September 2019 and screamed of a “financial Armageddon” ahead.
But was this the beginning of the end of the financial system?
Not at all.
Case Studies in Folly #1: 2008
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