The Emerging Perils of Economic Darwinism

In the post-industrial era, where global economic confidence is highly dependent on the price transmission of financial markets, international financial markets have experienced significant turbulence in recent years. The obvious reason is the liquidity squeeze in global capital markets. The further reason is that the oil price wars pierced the irrational prosperity of the U.S. capital markets, whereas the inadequate response to the COVID-19 by the U.S. and Europe, coupled with the relative inability of monetary authorities to manage complex financial situations, exacerbated market fears over uncertain expectations. The underlying reason is that the actual economic growth and industrial technological progress since the 2008 financial crisis have failed to effectively offset the continuous accumulation of financial bubbles and financial risks. In addition, the absence of a global guarantor for the economic and financial systems has left the world ill-prepared to respond when “depression finance” comes knocking.