The Americas and the World Disorder

When will the world financial crisis be over? When everyone agrees on who will finally pay the bill for the 2008 crisis. President Obama’s  financial overhaul to be approved in the coming days as well as some of the talks at the Toronto G-20 meeting are setting the tone, and it finally looks like the Volcker rule will prevail, even if not all of it at once. This means that, in spite of the recent financial bad news with stocks plummeting once again, the beginning of the actual end of the crisis may be ahead. 

Financial pundits who respond to those who will be affected by the new regulations are spreading woeful news about future markets to create doubts about the solution. The very sensible Volcker rule commands that only banks should be backed up by the government and not side investment business connected to banks. This rule is based on the need to reach a higher competitive and free market also in the financial industry and reaffirm what constitutes the core of the global market.  

The current world disorder doesn’t represent the failure of capitalism or free market economy, but a pause to make the necessary corrections to access the next global level. Incompetent national leaders and even many major political analysts are then missing the point when blaming global capitalism and making a plea for closed markets and more state regulations. Social-democrats and socialists in the Americas firmly believe these days that history is proving that they were always right and that global capitalism and free markets are a scam. Far from being a scam, once the bill is paid –including the political bill that has allowed so many to think that the time when capitalism would hang itself with its own rope had come—we will see a great recovery of world capitalism, with its banks properly healed by Dr.Volcker’s medecine, and markets soaring.

 This would be then the right time to promote and develop the Americas free trade zone and to align reluctant Latin American governments behind fair capitalist procedures to assure a global recovery that will benefit, as it has in the 90’s, emerging markets and Latin American markets in the first place. Also the occasion for the Americas to join the world free market as a promising new federation and for Europe to assess the path started more than fifty years ago, going to the next level. 

Of course, things could go wrong once again, because of terrorism, wars, or an excess of greed from investment corporations left behind, but more likely they won’t. The danger of a global recession is too big if the halt to find a solution lasts for too long. In the financial world, no one actually believes in the big bad wolf coming this time under the shape of a rope. Capitalism is smarter than that and never suicidal, as Dr. Marx wanted, not finding another way to end it.