Economic troubles of the Western world and China.

1. Socialism and Social Democracy.

At the bottom of the economic troubles lie the Universities (Academia), the Media and arts communities that have become dominated by the Left. These folks teach and promote various types of Socialism; whether actual government ownership or 'merely' directing economies - they teach a less efficient economic practice.

2. Less production to go around.

Why is Socialism so inefficient? Because Socialists do not prize efficiency, they prize equality. They also promote the growth of government. The resulting inefficiency reduces the amount of money people can be paid. Politicians promise more. The 'more' comes from printing money. Deficit financing, in other words.

3. Accumulating debt reduces funds available for investing. Why? Because there is interest being paid on the debt.

4. Printing money causes inflation.

Years of Socialist economy produces days of reckoning when the governments can no longer manage the debt and things implode.

A. Exploding debt by Central Banks. Central Banks print money then buy things like bonds. The banks then consider these "assets." Since the current crisis began the ECB's assets increased 200%, the FED added 400% and the Bank of China 800%.

B. Banks become over leveraged. In addition to the printing of money, Central Banks allow banks to become over leveraged. Take the big, German banks, the most solvent in Europe. They are leveraged by a factor of 30. Consider what this means. A bank that has 10B in reserves can loan out 300B. If times are good, the loans are bringing in interest. But, if recession hits and 5% of the loans become non-performing (customers can't pay), the bank's assets lose 15B and the bank is insolvent. And that's just the German banks, others are even more leveraged.

C. Banks are losing gold. The suppression of the gold price (orchestrated by the FED and the ECB), is promoting the transfer of gold to the East. The lower prices also lower bank reserves.

Some day heads will roll for all the manipulation. We know that English banks manipulated LIBOR (London Interbank Overnight Rates) increasing the bank distress in Europe. We know that gold price is being manipulated, causing gold production to decline and mines to shut down. Some of the perps will not escape scrutiny.