Brave New World Economy Global Finance Threatens Our Future

by Hankel, Wilhelm; Isaak, Robert

• ISBN13: 9781118004418
• ISBN10: 1118004418
• Edition: 1st
• Format: Hardcover
• Copyright: 2011-03-08
• Publisher: Wiley

Summary

The stock market crashes. Oil prices swoon. American unemployment spikes. Large brand name corporations go bankrupt. Global confidence is at an all time low. The Government spends billions on bailouts. And the dollar goes up. The dollar is still the key reserve currency. People all over the world need some value to believe in, a commodity that is backed up with some security; a certian store of value. Since the U.S. superpower appears to be too powerful to be replaced in the short term, and has always been good for payments on its debts, most people see the U.S. as the fortress of capatalism in time of crisis. In The Twilight of the West, Wilhelm Hankel and Robert Isaak show how "Obamanomics" can be a main proponent in saving the ecomnomic crisis if handled correctly; using America's consistant pattern in reinventing the wheel, to sell and market the new, to discover future in the present.

Author Biography

Wilhelm Hankel is former Director of the German Economic Finance Ministry, Department of Money and Credit. An internationaleconomist and consultant to centralbanks, his creative theories of money and the global economy, as well as his proven fixesfor stalemated political economies, are illustrated throughout fourteen books.

Robert Isaak is a political economist and the Henry George Professor of International Management at Pace University, in New York. A consultant to businesses such as Siemens and Prudential Intercultural, he has taught at Johns Hopkins SAIS, and New York University, and has been a guest professor of international management at the University of Mannheim, Heidelberg University, the University of Grenoble, and SKEMA Business School, in France. He has authored eleven books on political economy.

Table of Contents

Preface	p. xiii
Manifesto Democratization of Capitalism	p. 1
Rescue the Right to Work in Aging Societies	p. 3
Legalize Black Market Labor	p. 7
Defuse the Ticking Time Bombs of the Welfare State	p. 8
Enroll 100 Percent of the Population in Pensions	p. 9
Reduce State Indebtedness	p. 11
Look for New Answers to Old Problems	p. 13
Subsidize Start-Ups in Disadvantaged Regions	p. 18
The Mandate of the Democratic, Constitutional Welfare State: Stability, Reliability, Prosperity	p. 19
Midas Reveals How to Create Money through Credit Fraud	p. 25
Does Progress in Developing Money Equal Progress in the World Economy?	p. 26
The State as Accomplice or Controller of the Money Economy, or Both?	p. 29
The Illusory World of Finance and the Fictional Capital of Banks	p. 32
Will Yesterday's Recipes Help Us Today?	p. 36
The Finance Sector Always Underestimates the Risks of Its Innovations	p. 38
Four Fatal Innovations of Global Banking	p. 41
Essential Reforms	p. 45
Four Conclusions from the Financial Crisis	p. 47
Keynes, Properly Understood	p. 51
The Great Bluff: The American Way out of the Crisis	p. 53
A Brief Tour of How We Got Here	p. 55
How American Globalization Revolutionized Finance	p. 58
Wanted: An Emperor with Clothes	p. 60
How Goldman Sachs Milked Bubble Trouble	p. 63
Origins of the Financial Crisis	p. 65
The Lost Lessons of Long-Term Capital Management	p. 72
The Government Intervenes; Investors Panic	p. 73
Obamanomics: Exploiting Crisis, Postponing Costs	p. 76
The Debt Culture versus Hoarding and Investing	p. 85
Austerity versus Stimulus: The Trillion-Dollar Gap	p. 92
Recasting the United States: Domestic Dynamism with Responsibility	p. 100
Giant with Feet of Clay: The European Union	p. 105
What Services Has the EU Rendered?	p. 107
The Euro: Not Dynamic but Dynamite	p. 109
Is the European Union on Its Way to Becoming a Nation-State?	p. 112
Do EU Institutions Induce Constitutional Infidelity?	p. 116
Can the Euro Survive?	p. 117
The Three Unknowns of the Current Bailout of the Euro	p. 121
The Next Financial Adventure: A European State Bankruptcy Law	p. 123
What Comes after the Euro?	p. 124
The Future of the EU: The Swiss Model	p. 129
Currency ôConcubinageö: The Currency Has to Serve the Citizen, Not the Citizen the Currency	p. 132
The New New World: Can BRICs Save the Rich?	p. 139
Mimicking Past Economic Miracles	p. 141
The Rise of the BRICs	p. 143
Characteristics of the New New World	p. 147
Legitimacy Lost	p. 149
Decoupling and Demographics	p. 154
One BRIC at a Time	p. 157
Debt versus Investment and Savings in BRICs	p. 171
The Group of 20 and Global Imbalances	p. 172
The Roadmap to the New World Economy Has Changed	p. 174
Time for a New Bretton Woods: Crisis Prevention through Monetary Law	p. 181
What Caused Bretton Woods to Fail?	p. 185
ôFloatingö Exchange Rates: A Compelling End?	p. 191
Living in the ôNonsystemö of Post-Bretton Woods	p. 193
Keynes with a New Feature: Real (Not Nominal) Fixed Exchange Rates	p. 197
Toward a Brave New World Economy: Reducing Debt and Unemployment	p. 205
The World Economy and Nation: States Are a System of Communicating Pipes	p. 209
Democracy Begins and Works at Home	p. 210
Pillars of Stability and Self-Healing Therapies of Modern Society	p. 213
From ôUndergroundö Work to Lifelong ôRetoolingö	p. 214
The Old-Age Pension Dilemma	p. 218
The Dilemma of the Overindebted State	p. 222
What Can Be Done?	p. 224
The Three Megatrends of the Global Economy of Tomorrow	p. 227
Epilogue Faust and Mephisto on the World-Money Stage	p. 231
From Paper Gold to Paper Paper	p. 233
The Narrow Middle Lane of Successful Capitalism	p. 235
From Gold to the G-20	p. 237
Invitation	p. 245
Notes	p. 247
Bibliography	p. 253
About the Authors	p. 257
Index	p. 259
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