Monday, January 5, 2009

The sky is falling: Perils and pitfalls of long-range predictions, an Islamic perspective

What has especially caught the attention of both economic and political leaders around the globe is Celente's forecast of a social and political revolution sparked by the economic devolution.  He predicts food riots, accompanied by a tax rebellion.  We may see this as early as April 15th, 2009.  He says that by 2012 America will be an undeveloped nation, marked by squatter rebellions by those who refuse to give up their homes or else take over the homes of others.  “There is going to be a lot of homeless, the likes of what we have never seen before.  Tent cities are already sprouting up around the country and we're going to see many more.” Christmas as a retail bonanza will be a distant memory, reflecting a situation that he says will be “worse than the Great Depression,” because the so-called safety net will collapse.

As a forecaster of sociological change, Celente warns that “there's going to be a lot of crime” at all levels “worse than in the last 1929 depression” and that the growing wealth gap between the rich and the middle class will threaten social order because the middle class everywhere in the world will become a revolutionary class using knowledge, resources, and skills “to shape transnational processes in their own class interest.” He warns, “There will be a revolution in this country, and we're going to see a third party in response to the bloodless coup by Wall Street” supported by “a huge underclass of very desperate people with their minds chemically blown beyond anybody's comprehension.”

This all sounds like the sky is falling, but the prediction both in its parts and in its whole is fallible and has been forecast before.  Celente's horror scenario was actually expected and welcomed 23 years ago by Norman Bailey, then assistant director for international economics in President Reagan's National Security Council, who was the principal supporter of the Presidential Task Force on Economic Justice, for which I served as Chairman of the Financial Markets Committee until the necessary remedies were dropped as too controversial and therefore premature. 

Norm Bailey said that only a real financial catastrophe could make possible the shift from debt to equity in finance and from concentrated to broadened capital ownership as the only means to narrow the wealth gap and as the only means to avoid a revolution that would take from the existing haves and eventually destroy global civilization. 

As a lifetime professional long-range global forecaster, it has amazed me that anyone could be surprised by the “crisis of 2008,” other than by the fact that it took so long.  Two and a half years ago, Norm Kurland and I founded The American Revolutionary Party (http://www.americanrevolutionaryparty.us) precisely to reveal the most fundamental flaws of Keynesian economic theory and of NeoCon political theory and to advocate equally fundamental remedies based on the theoretical foundation of binary economics developed by Louis Kelso and Mortimer Adler half a century ago.  These have been further developed by the Center for Economic and Social Justice (http://www.cesj.org) during the past quarter century, and in practice by its investment banking arm, Equity Expansion International, of which I was one of the five founding principals.

The problem of Celente and of almost all of the 100 forecasting and 100 planning techniques that I summarized as chairman of a big study on the subject in 1980 for Charles Williams Associates in a contract for the National Security Council is that they rely so heavily on existing trends and on trends that are already so observable that they cannot be ignored.  They ignore the exogenous variables that are still under the radar and may be entirely outside the paradigmatic parameters of establishment thinking.

Celente is right on the mark when he predicts the rise of a major third party, but he does not envision any solutions that can make a difference and invalidate his conclusions.  More specifically he ignores the universal principles of what may be called Islamic economics, not the glitsy stuff of the so-called Islamic banks but the maqasid al shari'ah or universal and essential purposes of justice as taught principally in the haqq al mal of classical Islamic thought, first revived in the modern era by Grand Mufti Ibn Ashur's book, Maqasid al Shari'ah, published in 1946 and translated by the International Institute of Islamic Thought in 2007.  These provide a new paradigm ready to replace the bankrupt paradigm of concentrated power that dominates in both socialism and capitalism. 

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