Ukraine War’s Surprising Links to the 2008 Financial Crisis – and the Parallels With 1939

cryptonews.com:

Ronen Palan, Professor of International Politics, City, University of London.___

The historical parallels are uncanny. A decade or so after the two most devastating financial crises in modern capitalism, in 1929 and in 2008, a terrible conflict begins in Europe that threatens to draw in the entire world. So far, the Ukraine war is obviously of a different order to the second world war, but the clash of ideologies is just as fundamental.

If these parallels have not attracted a great deal of attention, I suspect it is because on the surface, they do not make a great deal of sense. The key is to realise that major financial crises and wars are both symptomatic of deeper structural problems in societies – underlying tectonic movements that created those fractures on the surface.

Something important happened to capitalism towards the end of the 19th century. Until then, humanity lived a precarious life. The supply of goods was subject to the weather, but demand was not usually a problem. This changed with the scientific method of production in agriculture and manufacturing, which introduced things like fertilisers and powerful machinery. Beginning with the US, which was the technological pioneer, there were now too many goods seeking too few people who could afford them.

This fundamentally destabilised capitalism, creating situations in which lenders were over-extended as producers who couldn’t find enough customers defaulted on their debts. There were numerous financial panics in the US in the late 19th century and early 20th century – up to and then most spectacularly in 1929. And according to what is known as the French theory of regulation, an oversupply of goods was the core of the problem.

It can be argued that the second