America Moving from Kingdom of Cash to Socialism – Pravda

I don’t know what amazes me more… This story or the fact that the story comes from Pravda. The last turning point similar to the current one happened approximately 400 years ago. The Western European society discovered a new hierarchy of values. Feudalism that valued service and chivalry was replaced with capitalism. Wealth became the measure of success, and everyone was to care about his own pocket only. The cult of money replaced all other values, including religious.

Capitalism turned everything upside down and made people more excited about stuffing their bank accounts than anything else. This system turned out to be extremely efficient in terms of production of goods, services, and comfort. America benefited from the system the most, and decided that the rest of the world has to adopt it as well. If some underdeveloped countries are unable to appreciate the benefits of capitalism, they should be forced to do it.

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World Bank Offers Dire Forecast For World Economy

In a bleaker assessment than those of most private forecasters, the World Bank predicted Sunday that the global economy would shrink in 2009 for the first time since World War II.

The bank did not provide a specific estimate, but bank officials said its economists would be publishing one in the next several weeks.

Until now, even extremely pessimistic forecasters have predicted that the global economy would eke out a tiny expansion but had warned that even a growth rate of 5 percent in China would be a disastrous slowdown, given the enormous pressure there to create jobs for the country’s rural population.

The World Bank also warned that global trade would contract for the first time since 1982, and that the decline would be the biggest since the 1930s.

In a report prepared for a meeting next week of finance ministers from the 20 industrialized and large developing countries, the World Bank said the economic crisis that started with junk mortgages in the United States was causing havoc for poorer countries around the world, not only stifling their growth but also choking off their access to credit as well.

The bank said the financial disruptions were all but certain to overwhelm the ability of institutions like it and the International Monetary Fund to provide a buffer.

The bank, which provides low-cost lending for economic development projects in poorer countries, pleaded for wealthy governments to create a “vulnerability fund” and to set aside a fraction of what they spend on stimulating their own economies for assisting other countries.

“This global crisis needs a global solution and preventing an economic catastrophe in developing countries is important for global efforts to overcome this crisis,” said Robert Zoellick, the World Bank president. “We need investments in safety nets, infrastructure, and small and medium-size companies to create jobs and to avoid social and political unrest.”
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