Throughout history bulk of the wealth and all the power has remained in the hands of a few, comprising about 5% of the population.
The nature of wealth changes with time. Initially those who had heads of cattle was wealthy, then those who had more fertile land and water. Then wealth shifted into the hands of those who owned industry and raw materials, now to those who control technology and finance.
The power has shifted from monarchies and nobility of yore not into the hands of governments but to individuals, corporations and financiers. Take for example 71% of total market value of American corporations (represented by S and P 500) is in the hands of that superpower sometimes known as the 'Deep State' with 1% of America's population.
Since the US dollar is the reserve currency, the major banks and financiers on Wall Street who form the Federal Reserve can print an unlimited amount of money. They produce this money literally out off thin air without any real wealth to back the dollars they print. This financial capitalism is the source of power of America which is in turn controlled by the Deep State.
Power and wealth go hand in hand. Everything is about enhancing it nationality, humanity, patriotism, society all be damned. The entire world debt is reportedly US$ 307 trillion. Almost every economy, major corporation is controlled directly or indirectly by these financiers, and all that matters is shareholder returns.
Major shareholders who invested in the industrial base of Germany primarily focussed on petrochemicals, engineering, automotive, metal processing like Aluminium and steel etc. has very high costs of labour, excessive regulation, etc. who do you reduce costs and grow margins?
One straightforward way for these powerful financiers who one allegiance only to themselves is to close down factories in Germany. They shift the factories and operations to lower cost regions, less stringent regulations, closer to major suppliers, key markets and more efficient supply chains. Many American and European companies have shifted wholesale to China, Mexico, etc.. But the very powerful German trade unions strongly resist the move as workers become redundant probably for the rest of their lives.
As a consequence of Russia's actions in Ukraine, 14,200 sanctions have been imposed on Russia by the EU. Russia was the major supplier of low cost energy, industrial materials and fertiliser inputs to Europe. This has hurt Europe greatly more than it has Russia, because it has made Germany uncompetitive because of soaring costs which are unlikely to come down anytime in the near and medium future.
I suspect that EU's self imposed sanctions seems a rather convenient way by the Deep State to collapse the industrial base, thus paving the way to shift it to other locations in the world.
As a consequence, shareholders will earn much much more.
The workers might be lucky if they can even preserve their way of life.
This is why all the heads and managements of the biggest banks and industrial concerns have kept mum. They are allowing the German economy to rapidly deindustrialise whilst simultaneously opening new plants in Asia, Latin America, etc. everywhere except in Europe. The politicians, government and the population have to accept the situation presented as a fate accompli.
Germany is only the leading example, the problem extends to all of Europe.
With the world also moving away from Euro as a fiat currency, the ability for Europe to print money and spend their way out of problems is coming to an end. If they print they will have higher inflation, if they do not they will be broke and have no money at all.
Well Europe living in its own dream bubble, after two world wars has ben reduced to an insignificant power of its former self, has yet to come to terms with reality and impending doom. The world has moved on, former colonies have arisen and are taking their rightful place on the world stage. Whereas Europe which is still living in the past will experience a serious fall in their standard of living and prestige. The adverse impact of this will be felt by Europeans for a long long time.
Europe has a huge 'risk of deindustrialization,' Solvay CEO says at World Economic Forum ~ CNBC International TV (YouTube)
Richard Wolff on the Russia/Ukraine conflict and Biden's deindustrialization of Europe ~ Community Church of Boston (YouTube)
Europe's Energy Nightmare Has Only Just Begun ~ Bloomberg Originals (YouTube)
Europe energy crisis spend nears $850 billion ~ Reuters (YouTube)
Origins of the name and image of Uncle Sam to depict United States of America ~ National Geographic
Suicide by Sanctions and other means ~ Guru Wonder
Why Sanctions Will Hurt The West—Not Russia ~ Gonzalo Lira (YouTube)
The war in Ukraine, is not even about Ukraine. ~ Guru Wonder
Written and posted : September 2023: Gurvinder Singh
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