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I am convinced that the current crisis is a crisis of the neoliberal model of transnational capitalism. The model envisaged global expansion of supranational forms of international business, deregulated financialization of the entire global economy and artificial stimulation of consumption by means of credit made possible by expanded money supply. It had been assumed that debt-driven solvent demand would continue to rise but internal economic/financial problems (mainly associated with households’ growing debt-to-income ratio) in the United States, the largest consumer in the global economy, has caused the current contraction of the global economy. The hopes of the transnational elites have been dashed.

Technically, there are two ways to address these economically turbulent times – an extensive one and an intensive one, which is a standard situation for any economic system. The former approach is associated with a quantitative change of the system and the latter approach has to do with a qualitative change.

The intensive approach means a thorough reform of the existing economic model and has two alternatives: a) a new economic system conforming to the interests of the present transnational elite (this will entail another crisis of over-accumulation once the consumption potential of the new system is exhausted); b) a new system based on society-oriented approaches (this will face active resistance of enormous proportions from those with money and power).

The extensive approach would involve a mere expansion of the existing economic model, which implies an increase of the geographical area servicing the economic system. The interests of the transnational oligarchy will be preserved. But this will entail resistance from those compelled to join the globalized economic system. The use of force is more than likely in this case, it is inevitable. The sad thing is that all the tragedies involved will turn out to be in vain later on when the global economy faces another crisis thus repeating the fate of the first intensive alternative mentioned above.

Boris Anisimov

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