The financial crisis the US is currently battling with, which is snowballing into a global economic crisis affecting many nations, did not develop just months ago. It is being set off by many economic factors which the system itself had created decades ago.
The Bush administration and western economic analysts are saying it all began with the mortgage issue that ignited in the first half of 2007, causing several of the largest banks in the world to collapse in their own gravity, an increase in home foreclosures, and massive layoffs within the United States.
If you have been watchful of the United States’ past international relations, most of the present and past US government’s international policies were aimed at expanding its market to every corner of the world. These have resulted to nations being robbed of their natural resources, and the creation of staging areas that easily carry out its manipulative actions in and against poorer nations (exemplified by its allied nations).
Why did the US “cleanse” Afghanistan and Iraq of so-called terrorists? The reason is simple but quite a driving factor: oil – oil that will help fuel her activities in and out of her backyard.
Surprisingly, the crisis we are experiencing today began not a year or months ago, but it was when capitalism entered into its monopoly stage – called imperialism early in the 20th century – and it will probably never be able to recover itself from the disease. The world saw her first economic plunge in the 1930’s when the world, and particularly limping the US, entered into the Great Depression – a whole decade of economic stagnation and inactivity.
People who lived through this day described it as a total darkness and they are seeing the same signs of an impending depression – the collapse of global financial giants, massive foreclosures, depositors taking their money from the banks and keeping them in a safe. In fact, sales of safes increased by 50% since September 2008 according to a report. It looks like the US and world is heading back to that bleak route again.
Although each economic repression has its own attitude and psychology, nevertheless, each one stirs the same feelings: uncertainty and anxiety.
The Bailout Fund: A symptomatic relief
Not even the $700 billion bailout fund can help it. In spite of its efforts, what the Bush administration can do, through the bailout fund, is offer only a symptomatic relief to the problem that is deep-rooted within the imperialist system. Seven hundred billion dollars might suffice to keep its economy afloat for now, but it will not cure the cause of the crisis that is inherent in the system.
The bailout fund, meanwhile, aims to shore up troubled banks and buy foreclosed homes, putting them in the hands of the government. However, this can’t keep going on forever. What Bush might want to know is what caused the seemingly infallible banks to collapse, and then it will realize that its hegemony (economic, political, and cultural) is on the brinks.
Obviously, despite point increases in the Wall Street from October 20-23, fears of future downturns continue to resonate within the bounds of the Wall Street, banks, companies, and ordinary citizens. In fact, markets plummeting to all-time lows are wont to happen.
Right now, we are still in a wait-and-see situation – hoping for the best and crossing our fingers for the worst. Even the Bush administration and economic analysts remain uncertain as to when and how long the $700 billion bailout fund can sustain the economy and keep losses from coming back.
For the ordinary citizens, though – we have not seen the worst, but the worst is about to come. But as the US Election rolls in to its final week, let’s all hope the new administration can make great strides in politics and the global economy.