1 World Economy Crisis

2 Main problems  Abrupt(внезапный) climate change  Imminent(близкий) global oil crisis

3 This is based only on well confirmed facts from leading experts, world recognized organizations and scientific institutes.

4 Abrupt Climate Change 1 The increase of atomospheric Carbon Dioxide ( CO 2 ) is a major cause of global warming. Due to extenisve burning of hydrocarbons (oil, coal, gas) it has increased steeply during the last century.

5 Abrupt climate change 2 Pentagon warning, February 2004:  Over 400 million people may be forced to move from uninhabitable regions, incuding people in Scandinavia that will become arctic. Siberian cold will affect, among others, Great Britain, Germany, Holland, Belgium.  Many countries including India, Pakistan and China begin to make wars over water, agricultural land and refugees. Nuclear proliferation is inevitable and will greatly aggravate the situation.  Millions die in wars and famines.

6 Global oil crisis From 2003 on the world production of oil and gas is smaller than the demand. (ExxonMobil energy report, February 2004).

7 Consequences of an oil crisis  Globally spiralling oil prices  Globally spiralling production costs  Industrial production crisis  Food production crisis  Transportation crisis  World trade crisis  Deep global depression

8 Synergies enhance the crisis  Food scarcity will become the main problem in the world  It will bring about mass famines, mass migration and sharp conflicts about food  It will enhance the economic crisis nationally and globally Food scarcity Global warming Oil crisis Overpopu- lation Extinction of species

9 Positive economic development Society Lower taxes Favourable bussiness conditions Fluroishing bussiness Growth of economy Individual Improved relations Better health Decreased stress Improved security Harmony Bussiness Decreased costs Greater profit Efficient cooperation

10 Main benefits Globally  World Peace  Prevention of the imminent global energy, climatic and environmental crisis.  Constructive global cooperation and economical development.  Sustainable development in tune with nature Nationally  Great decrease and ultimately disappearance of expressions of societal stress like conflicts, criminality and disease  Profound societal harmony  Flourishing prosperity.  A high quality of life.

11 Let us make this the beginnng of a New Era

Origins of the Crisis The periodic crises resulting from the capitalist business cycle now unfolds at the global level The current crisis of the world economy is an outcome of the consolidation(укрепление) of economic power that the globalization of capital has secured for the transnational corporations This has led to a string of problems associated with the financial, banking, real estate, and productive sectors of the economy that have triggered the current economic crisis

The large corporations made huge profits and had much money at their disposal They bought other corporations (mergers and acquisitions) and they put their money into banks The banks loaned that money (with interest) to workers who didn’t have money to consume This was done to raise their purchasing power because their wages weren’t enough to buy things

Then What? Since employers no longer raised workers’ wages, the workers had to go into debt to survive Debt went up and up and things got out of control The banks continued to loan money through new loans (secondary mortgages) at high interest rates, and this was a profit bonanza for the banks As corporations increasingly began to invest abroad (outsourcing production and services), U.S. workers lost their jobs, and this led to greater unemployment and underemployment

Unemployed workers with a lot of debt were unable to make their mortgage and credit card payments, and this led to foreclosures and bankruptcies This, in turn, led to the collapse of the banking system, necessitating a government bailout of the banks It is only through the nearly trillion dollar stimulus funds that the U.S. government poured into the economy to save the banks from default that a financial collapse was averted