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World Economy Crisis

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Main problems

Abrupt(внезапный) climate change

Imminent(близкий) global oil crisis

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This is based only on well confirmed facts from leading experts, world recognized organizations and scientific institutes.

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Abrupt Climate Change 1• The increase of atomospheric Carbon Dioxide ( CO2 ) is a

major cause of global warming. Due to extenisve burning of hydrocarbons (oil, coal, gas) it has increased steeply during the last century.

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Abrupt climate change 2Pentagon warning, February 2004:

• Over 400 million people may be forced to move from uninhabitable

regions, incuding people in Scandinavia that will become arctic. Siberian cold will affect, among others, Great Britain, Germany, Holland , Belgium.

Many countries including India, Pakistan and China begin to make wars over water, agricultural land and refugees. Nuclear proliferation is inevitable and will greatly aggravate the situation.

Millions die in wars and famines.

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Global oil crisis

• From 2003 on the world production of oil and gas is smaller than the demand. (ExxonMobil energy report, February 2004).

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Consequences of an oil crisis

Globally spiralling oil prices

Globally spiralling production costs

Industrial production crisis

Food production crisis

Transportation crisis

World trade crisis

Deep global depression

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Synergies enhance the crisis

Food scarcity will become the main problem in the world

It will bring about mass famines, mass migration and sharp conflicts about food

It will enhance the economic crisis nationally and globally

Food scarcity

Global warming Oil crisis

Overpopu-lation

Extinction of species

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Positive economic developmentPositive economic development

SocietySociety

Lower taxes

Lower taxes

Favo

urab

le b

ussi

ness

con

ditio

ns

Favo

urab

le b

ussi

ness

con

ditio

ns

Fluroishing bussiness

Fluroishing bussiness

Gro

wth

of e

cono

my

Gro

wth

of e

cono

my

IndividualIndividualImpr

oved

rel

atio

ns

Impr

oved

rel

atio

ns Better healthBetter health

Dec

reas

ed s

tres

sD

ecre

ased

str

ess

Improved securityImproved security

Harm

ony

Harm

ony

BussinessBussiness

Decreased costs

Decreased costs

Gre

ater

pro

fit

Gre

ater

pro

fit

Efficient c

ooperation

Efficient c

ooperation

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Main benefitsMain benefits

Globally World Peace Prevention of the imminent global energy, climatic and

environmental crisis. Constructive global cooperation and economical development. Sustainable development in tune with nature

Nationally Great decrease and ultimately disappearance of expressions of

societal stress like conflicts, criminality and disease Profound societal harmony Flourishing prosperity. A high quality of life.

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Let us make this the beginnng of a New Era

Origins of the Crisis

• The periodic crises resulting from the capitalist business cycle now unfolds at the global level

• The current crisis of the world economy is an outcome of the consolidation(укрепление) of economic power that the globalization of capital has secured for the transnational corporations

• This has led to a string of problems associated with the financial, banking, real estate, and productive sectors of the economy that have triggered the current economic crisis

The large corporations made huge profits and had much money at their disposal

They bought other corporations (mergers and acquisitions) and they put their money into banks

The banks loaned that money (with interest) to workers who didn’t have money to consume

This was done to raise their purchasing power because their wages weren’t enough to buy things

Then What? Since employers no longer raised workers’

wages, the workers had to go into debt to survive

Debt went up and up and things got out of control

The banks continued to loan money through new loans (secondary mortgages) at high interest rates, and this was a profit bonanza for the banks

As corporations increasingly began to invest abroad (outsourcing production and services), U.S. workers lost their jobs, and this led to greater unemployment and underemployment

Unemployed workers with a lot of debt were unable to make their mortgage and credit card payments, and this led to foreclosures and bankruptcies

This, in turn, led to the collapse of the banking system, necessitating a government bailout of the banks

It is only through the nearly trillion dollar stimulus funds that the U.S. government poured into the economy to save the banks from default that a financial collapse was averted