The conventional financial capitalism will be ended very soon. Successive QEs, which I mentioned, raise risks of national default in many countries. Greece is a very good example. Once a single country will be forced to declare its default, it’ll cause a domino effect in the global economy. Every country holds other countries’ national bonds and bills to secure its own asset. This system of risk sharing will turn out to be the cause of the domino effect and lead to hyperinflation in each countries. Every currency will be devaluated to the bottom.
Such a dramatic change in the financial sector will make us get back to the origin of the modern economy. It’s not money but goods and their added values that will matter in the real economy. Gathering money itself won’t make sense any more. Instead, how to make added values effectively will be a tough question for all of us. The renaissance of industrial capitalism will begin. Because not money but only the human resource is capable of making added values, all the nations try hard to attract innovative and skilled persons. This is why McKinsey predicted “War for Talent” in 1997. While focusing on real values of commodities including oil and gas, getting back to gold standard can be discussed in the international community, such as inclusion of gold in currency basket of SDR (=special drawing right) in the IMF.
Last but not least, national capitalism will declare its come-back. To inflate the economy, globalization has been accelerated so far based of the financial capitalism. However, when the financial capitalism will collapse, the world economy will face hyperinflation foremost and then total deflation. And in the course of deflation, nobody needs to expand his own market and tries to secure its own national market instead. At this stage, globalization and liberalization will be understood just as illusions. The age of bloc economy would come back, where national capitalism would dominate the world. These developments would, of course, affect also the energy sector negatively.
http://d.hatena.ne.jp/d1021/20150424#1429872467
http://d.hatena.ne.jp/d1021/20150424#1429872486
http://d.hatena.ne.jp/d1021/20150424#1429872488
http://d.hatena.ne.jp/d1021/20150424#1429872489
http://d.hatena.ne.jp/d1021/20150423#1429785536
