Category: Future perspectives

The hypocrite, the fanatic, or Obama?

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By Richard Falk
While the headline deals with the Presidential candidates, Falk reflects also on the essence of democracy itself and on whether the US can at all be called a democracy.

The American electorate is facing a presidential election in which there is almost no prospect of a constructive debate. On the Republican side the campaign for the nomination has exhibited the clash of irresponsible and reactionary views, slightly relieved by the libertarian Ron Paul who at least counsel against militarism and the death dance with Israel.

All the Republican presidential hopefuls, except Paul, exhibit a craven distaste for reality when they attack Obama for being insufficiently pro-Israeli, as if 95%+ is insufficient. Such a posture, whether meant seriously or not, expresses contempt for the intelligence and common sense of the American citizenry.Read More »

The face of the crisis – and some alternatives

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By Johan Galtung

From Madrid, Universidad Nacional de Educación a Distancia-UNED, Foro Los Nuevos Problemas Sociales, 24 Mar 2012

Here is one of the hidden faces of the economic crisis:

(¶C/¶t) + (¶C/¶S)rS + (1/2)(¶2C/¶S2)q2S2 = rC

The famous Black-Scholes equation to find the “correct price” for financial derivatives. Based on partial derivatives over time, this is classical calculus for continuous change; useful within a zone of stability, but not at the edge of that zone, the tipping points explored in René Thom’s catastrophe theory years earlier.

Black-Scholes is intellectually like calculating increasing speed of an accelerating car heading for a wall or an abyss. But, with warnings, no 1997 “Nobel Prize in Economics” (actually a Swedish State Bank’s prize honoring Alfred Nobel)? And one year later their company “Long Term Capital Management” had lost $100 billion and collapsed. The trade in derivatives is now at $1 quadrillion a year (15 zeros), ten times the industrial economy of the whole 20th century. Many got rich, but the system collapsed. Maybe prison would have been more adequate for intellectual sloppiness?Read More »

Davos: The 1% world

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By Johan Galtung

From Alfàz del Pi, Spain

We are heading for a new load of advice from the self-appointed “World Economic Forum”, still having fresh in mind their utter inability to come to grips with the September 2008 manifestation of the world economic crisis when they met three years ago. So, what are they going to talk about now?

Lee Howell, in “The failure of governance in a hyperconnected world”, International Herald Tribune, 11 Jan 2012, gives us a preview. Read More »