Tuesday, October 18, 2016

"Change Is As Necessary As It Is Impossible": Deutsche Bank Explains Why The World Is At A Dead End

The following brief essay, from Deutsche Bank credit derivatives expert Aleksandar Kocic of all people, provides one of the best summaries why the current politics system is fracturing with every passing day. As Kocic puts it, the most likely origin of the anti-global sentiment expressed in the past year, in the UK with Brexit and in the US with Donald Trump, is the result of a "buildup of discontent due to failure to develop a convincing response to economic slowdown in the last years." According to the DB strategist, having been repeatedly ignored for years as central banks took the reins in hopes of fixing the global economy, only to leave a world that is vastly better for the 1% and starkly worse for everyone else, "this has recently emerged as the main theme of public discourse." More relevant, however, to the current presidential campaign, is the dead-end which as Kocic frames it, show "to what extent the Change is as necessary as it is politically impossible."
And while Kocic does not explicitly phrase it, the reality is that it is indeed globalization - with its focus on "global economic interests" - that has left ordinary people, affected by local issues, disenchanted and increasingly angry, to wit: "The underlying problem can be traced back to the fact that economic interests have become increasingly global while politics, the ability to decide, remained passionately local and, as such, unable to operate effectively at the planetary level."
Finally, on the topic of the culprit, not even the Deutsche Bank strategist can mask who is responsible: "global oligarchies."
Politics is viewed as a problem, instead of a solution while social costs caused by this state of affairs are being recognized and articulated by the emerging populist wings, whose main novelty has been their hostility to global oligarchies.
The resulting, and very angry, popular response to these oligarchies, is the reason why Sanders (on the left) and Trump (on the right) have emerged, in the process unleashing "a “transverse” direction which represents the antagonism between the local and the global."
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His full note is below.

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