Russia and other BRICS nations have achieved substantial progress with the National Economic Model. Especially, the decision to establish a central bank, an alternative to the World Bank, is a step that engages our hypothesis and brings closer the end of capitalism. It is inevitable that in the foreseeable future the fortress of capitalism – U.S. – would need to reckon with the National Economic Model because the days of capitalism are over. We have witnessed a telling example of that in 2008 with mortgage crisis in the U.S., residue of which is still evident in the economy. System has no chance of compensating its errors and most importantly to prevent them.
Imminent decline in the capitalist countries is now experienced by the Eurozone. Brussels-based think tank named ”Bruegel” describes its concern regarding the fate of the Eurozone countries in the following fashion: ”There are three factors that are source of concern for the future of the Eurozone. First, the fact that crisis has caused severe wounds, especially in some countries and that healing would take years, possibly provoking political instability. Second, lack of consensus regarding necessary conditions for ensuring the future of the Eurozone. And third, that weak links, in terms of crisis management on the part of the leaders, could provoke problems in the future”.
Lack of knowledge of the substance of the issue rests in the core of these problems. Eurozone is yet to encounter the problem. Unfortunately, in the Eurozone, a common currency area that is, Euro is the source of concern. The economies of the nations that adopted Euro as their common currency have arrived to the verge of collapse. As we have predicted at the time when decision was made, ”the adoption of a common currency implies the end of the union”. Those who disagreed with the idea that ”EU is doomed to failure and is going to collapse in 15 years”, now recognize the accuracy of our forecast.
Our argument was that, ”With the switch to Euro, the countries would refrain from disclosing their income in real figures and the assistance rendered form the center would change. Injustice would gradually emerge among the member states and that would be the reason of union’s collapse”. Against the backdrop of deteriorating crisis in Italy, Greece, Spain, Portugal, Ireland, Romania and Hungary people took to the streets in Romania and Greece demanding ”secession from the EU”. Similar subject was incorporated into the political agenda in Britain, thus signaling the possibility of a political collapse.
Entertaining a pipedream of becoming United States of Europe, the union with its large army and enormous population is now experiencing a process of fragmentation. Use of common currency is one of the reasons of the collapse, supplemented by aging population and depleted natural resources. In the face of a rapid decline, the EU is trying desperately to use Christianity as glue to cement its union but it would be insufficient. The EU is doomed to failure.
Professor Haydar BAS
