Global economy facing major upheavals

Updated immersion course for top executives

Background knowledge from politics, economy and society

What are the reasons for the current issues? What is happening at the moment? What will happen next? What does this entail for the corporate management?
Why Hayek and the “Austrians” offer orientation!

An immersion course of the

Hayek International Business School, Salzburg
(www.hibs-university.at)

 

Cooperation partner:

Collegium Humanum Management University Warschau
(www.humanum.pl)
State University of Economics in Yekaterinburg
(www.usue.ru)

1. The crisis of our time

  • The Presumption of Knowledge (Friedrich A. von Hayek)
  • Platon or Aristoteles ?
  • The fundamental structural flaws of the “Western” economic and social model
  • The deep causes of the debt and euro crisis
  • Defiant denial of the future as a phenomenon of prosperity
  • German autodestruction
  • Demographic development
  • Increasing legitimacy deficits of our “façade democracy”.

2 Why the Keynesian economic model is failing

  • The debt-induced welfare state and voter bribery democracy
  • The fallacies of Keynesian macroeconomics
  • The misery of “mainstream economists” and “university economics”.
  • “Voodoo economics” of the international financial industry
  • EURO and ECB – failed grand experiments
  • Fed and IMF – instruments of power of high finance

 

3. Fatal state economic and financial policy

  • The de facto debt and transfer union
  • “Stupid” German money
  • “Evil” German export surplus
  • Target II balances

 

4. A necessary return to the “Austrian School of National Economics

  • Outlines of the “Austrian School of National Economy and F. A. von Hayek
  • Why the “Austrians” foresaw the 2008 financial crisis and the current crisis
  • What is unfolding in the financial markets and the economy now and in the near future
  • Questioning the state monopoly on interest rates and currency

 

5. The extent to which the framework conditions for the companies are changing

  • Formation of a civil society (versus party state)
  • Formation of new, regional and at the same time transnational economic areas
  • Renaissance of the theory of the optimal economic and currency area
  • Hayek’s proposal of the bicameral system
  • The advantages of smaller states and communities
  • Trend towards smaller units in the economy
  • “Charter Cities” as a future economicandsocial system
  • Intensified discussion on a new currency and monetary system (“market currency”)
  • Introduction of the “Blockchain Technology”

 

6. Business management

  • Changed patterns of demand
  • Model of “pretial steering” of resources in corporations
  • New demands on HR and leadership
  • Working environment/ Industry 4.0
  • Change Management
  • The new role of middle management

What is it about?

Ultimately, mass prosperity or the general standard of living of the population depends on the prosperity of businesses.

However, the challenges and risks and, above all, the burdens for businesses are increasing ever faster: On the one hand, competitive and cost pressures are constantly increasing, while on the other hand, legal, tax and bureaucratic burdens continue to grow.

The “Corona shock” is not the cause, but the reason that the imbalances in the real economy and in the financial industry, which have piled up gigantically, are now breaking open:

The EU monetary union initially brought good profits to Germany’s many exporting companies (at first), but at the price of mortgaging parts of the national wealth for the (uncollectible) debts of the crisis countries, which are economically and socially decaying despite all the supposedly “alternative-free rescue policies”. And hovering above all this is the sword of Damocles of excessive national debt, the banking crisis, the threatening growth of financial bubbles (in practically all asset classes) and the fatal zero interest rate policy. Stagflation, misallocation of resources, undermining of banks’ earning power and stability, and a “zombification” of the corporate landscape are the consequences.

The world financial system is in the biggest financial bubble of all time.

The apparent growth of the past decades is mainly based on the increasing ratio between debt and national product. It cannot be extended without limits. Rising asset prices are driven by the increasing discrepancy between debt and income. Such processes run until they break – and this is exactly the point that the markets are approaching, especially since the completely hypertrophied financial sector has long since decoupled from the real economy.

All too many players in the financial industry have been unable to resist the temptation to make money only from money and not from adding value to goods and services. Many of the customs of the respectable merchant went overboard in the process, which generally raises more and more the question of ethics and morals. Disastrously, it is often enough forgotten that it was not “neo-liberalism” or “globalisation” that caused the crisis, but the attempt to suspend the logic and morality of the market economy.

Deliberate departure from regulatory principles of market economy and capitalism

Accordingly, the increasingly severe problem situation is basically the consequence of a crisis-like development in politics and society that has been going on for many years – it is a crisis of the dominant lifestyle of the welfare state model, namely the deliberate abandonment of all regulatory principles of the market economy and capitalism. Principles developed and advocated within the framework of classical liberalism, above all by the representatives of the so-called “Austrian School of National Economy”. The most famous name is undoubtedly that of Friedrich A. von Hayek, winner of the Nobel Prize for Economics. It is not only since the financial crisis of 2007/2008 that the work of the Nobel Prize winner in economics, ranging from the theory of the business cycles to the theory of cultural evolution, has enjoyed renewed interest.

There will be epochal upheavals

While conventional, Keynesian chair economics is once again facing the ruins of its doctrines of sovereign debt mania and interventionism, the “Austrians” warned of the inevitable consequences years ago. They accurately predicted the crashes of 1928, of 1987 as well as of 2007/2008 because they recognised the causes. While the “Austrians” are shunned by the financial industry and have been driven out of academia by mainstream economics, which is pious towards the state, they are now all the more respected in economic practice – not only against the background of their analyses of the current debt and financial crisis, which are as perceptive as they are accurate. Now the “Austrians” are warning of an approaching collapse in several steps. Accordingly, there will no longer be a simple “business as usual“. Epochal upheavals will occur.

Many key players in the technological developments of the future see themselves as followers of Friedrich A. von Hayek

The Keynesian poisoned economic and financial policy will therefore sooner or later end in an economic, political and social crash, which will automatically massively intensify and accelerate the huge upheaval in the economy and society that is already becoming apparent. Epochal upheavals are imminent, which represent completely new challenges for every company management and cannot be solved with conventional thought patterns and management techniques.

 

It is no coincidence that many of the main actors in the technological developments of the future describe themselves as followers of Friedrich A. von Hayek, probably the most important representative of the “Austrian School of National Economics”. The macroeconomic framework and patterns of action will change dramatically. The formation of new economic areas, a new monetary system, a greatly changed financial system and new sales and demand structures are already casting their shadows. By combining the internet with cryptography and blockchain technology, the vision of the internet of things becomes realisable! This groundbreaking technology alone will represent an equally great leap forward in civilisation as the change from an agrarian society to an industrial society in its time. So-called peer-to-peer networks with decentralised applications are leading to a dramatic decentralisation of all economic and social interactions. It is not only markets that are changing, but also the technologies and processes that go hand in hand with them.

Furthermore, it must be stated that the new generation, which is now actively entering economic and working life, embodies completely different values in terms of lifestyle and working methods than the previous generations.

Are company managements really prepared for the future, which will be more of an upheaval than a further development?

This immersion course for top executives analyses the deep background of the crisis, gives insight into the expected political measures and presents a realistic scenario of the coming upheavals. This results in correspondingly massive consequences for the companies.

Contents:

 

1. The crisis of our time

  • The Presumption of Knowledge (Friedrich A. von Hayek)
  • Platon or Aristoteles ?
  • The fundamental structural flaws of the “Western” economic and social model
  • The deep causes of the debt and euro crisis
  • Defiant denial of the future as a phenomenon of prosperity
  • German autodestruction
  • Demographic development
  • Increasing legitimacy deficits of our “façade democracy”.

 

2 Why the Keynesian economic model is failing

  • The debt-induced welfare state and voter bribery democracy
  • The fallacies of Keynesian macroeconomics
  • The misery of “mainstream economists” and “university economics”.
  • “Voodoo economics” of the international financial industry
  • EURO and ECB – failed grand experiments
  • Fed and IMF – instruments of power of high finance

 

3. Fatal state economic and financial policy

  • The de facto debt and transfer union
  • “Stupid” German money
  • “Evil” German export surplus
  • Target II balances

 

4. A necessary return to the “Austrian School of National Economics

  • Outlines of the “Austrian School of National Economy and F. A. von Hayek
  • Why the “Austrians” foresaw the 2008 financial crisis and the current crisis
  • What is unfolding in the financial markets and the economy now and in the near future
  • Questioning the state monopoly on interest rates and currency

 

5. The extent to which the framework conditions for the companies are changing

  • Formation of a civil society (versus party state)
  • Formation of new, regional and at the same time transnational economic areas
  • Renaissance of the theory of the optimal economic and currency area
  • Hayek’s proposal of the bicameral system
  • The advantages of smaller states and communities
  • Trend towards smaller units in the economy
  • “Charter Cities” as a future economicandsocial system
  • Intensified discussion on a new currency and monetary system (“market currency”)
  • Introduction of the “Blockchain Technology”

 

6. Business management

  • Changed patterns of demand
  • Model of “pretial steering” of resources in corporations
  • New demands on HR and leadership
  • Working environment/ Industry 4.0
  • Change Management
  • The new role of middle management

Fact compact

Are company managements really prepared for the future, which will be more of an upheaval than a further development?

This immersion course for top executives analyses the deep background of the crisis, gives insight into the expected political measures and presents a realistic scenario of the coming upheavals. This results in correspondingly massive consequences for the companies.

Hayek International Business School
Cooperation partner:
Collegium Humanum Management University Warsaw (www.humanum.pl)
State University of Economics in Yekaterinburg (usue.ru)

Distance immersion course
Start: anytime

Course duration: individual
Course fees: 2,450 € in total (payment in instalments possible by arrangement)

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