Globalization II

Globalization was initially introduced in 1960s, but it took another 30 years to become prominent terms. The first globalization was actually happen early 1900s. It was globalization through steam ship and rail roads. The world, under british empire was interconnected by sea and land. Radio was introduced which made communication across Atlantic faster. Telegraph was enable message convene across continent within weeks. It was the first mark of global financial interconnectivity. Until at late 1920s, the first global financial melt down, that spread in global scale. The interconnectivity of financial market, was a double edge sword that can cut on both side.

In early 1990s, right after the berlin wall event, it was the boom on innovation in telecommunication. Cold war was ended. Capitalism finally emerged from the iron curtain of communism and socialism. Nations come to international forum, for the first time, with negotiation and concession, through treatise, capital control policies and international trade taxes policies become more accommodative to enable effectiveness of global financial activities to be convened. It was the right time for global corporation which initially struggle to take advantage of global market, for all the obstacles and limitation imposed since 1930s through late 1980s. These global corporation has no national agenda,a and non-soverignty entities. The global trade treatise, which mostly lobbied by many of these international corporations, was a 21 century version of Magna-carta. It make capital flow freely without boarder. It enable them to take advantage of global man power supply, natural resources, taxes polices, logistic and geopolitical advantages to maximized their profitability interests, even at the cost of their own nominal national interests. What happen next was exponential growth and advancement of technological breakthrough that facilitated the interconnectivity of global financial market at the unprecedented scale.

With loose regulator on global stages, where by, there is no real true global government to oversee these global corporations financial activities, the frenzy greed and irresponsibility of financial exploitation, it was the time boom for global financial market melt down. At classic term, financial products was only sold at it underlying real assets value, with mainly limited to it own geographical local stages. However, at today global financial market, derivative market has no such limitation. Sub-prime mortgage could be loaned at Taxes, packaged by broker firms at new york, underwriting by London Banks, and sold at german markets. And many of such derivation was only a scheme which no real assets value but only virtual financial products which it price fluctuated relative to it underwrite financial products which sold at different markets. Suddenly such, a whole level of house of cards was build overnight at the speed of light through internets, 24-7.

At current trends, the hot money bloated under the second globalization scheme without proper regulatory remedies, will eventually reach to its limit, and should it burst, and it will, will produce a unprecedented scale of financial catastrophe which will literally wipe out all the stock market, commodities and bonds markets on the true global terms. It will destroy not only the economy activities, but will bring forth global logistic , social trust, civilization connectivity, culture and religion crisis. It will bring forth WarWorld III, not by weaponry, but by culture social panic. The world will not fight among sovereignty. The world will fight within their own sovereignty, and implode.