Publications

The world is currently in the midst of a deep economic crisis, the first such crisis of the information age. Economic crises of this kind usually entail two components, a financial crisis and a real economic crisis developing in its wake. The financial crisis stems from a failure in the functioning of the financial system. It is manifested in tremendous monetary losses, in the crash of financial institutions, in the loss of trust in the system, and in low financial supply (a slowdown in the flow of money). The lack of financial oxygen causes increasingly more companies to cancel projects and lay off workers. At the same time, the blow to private savings on the capital market and the loss of employment security cause the public to reduce spending on goods and services. Thus the real economic crisis is created, expressed in a sharp downturn of consumption and product, a rise in business bankruptcies, a reduction in the nation’s income from tax revenues, a sharp increase in unemployment, a rise in poverty, and so on.