In the 21st Century, currently existing world financial system run by the United States and most developed nations (including China) and is supported by the Parish Club, WTO, IMF and World Bank have their concepts to capture the recent developments in chronically debt to change the world, in which for some countries and market such as China and India, most of the other more developed economies like U.S. and UK, in developing countries such as Spain, Portugal and Greece, and undevelopedCountries such as Bulgaria, Romania and many South American countries, Asian and African countries are heavily indebted or very poorly developed. A system of central banks is necessary for the overall "demand-driven to provide" balance by the possibility of issue of capital controls instead of the current global financial system that performs more like a "provider".
There are many indications that the process of a lack of current financial year for many countries can not be reversed with the current economy of production have beenBase "at the bottom" trickle-capitalism, industry production is based, because usually the industrial production based on this market adds the highest percentage of each country GDP (gross domestic product General) and the resulting tax free reserves for a country or a country need to develop the final to industrialize the production of sound, or a developed country as it should be preserved to maintain competitiveness in the global industrial production maintains its deficit.The globalization of the market led by large cap and productivity growth are the economies of China and India is now strengthening industrialize early, added that industrial power crucial for today's industrialized economies of Japan, Germany, the ability of United States on how the global production capacity of industry to a large concentration of industrial production in developed countries is very low. The possibility of other smalleven the big countries to become competitive in industrial production and the maintenance of its fiscal policy and reserves are declining stroke.
Trickle Up Poverty
According to most industrialized countries, the United States is particularly vulnerable in this new global developments of the ongoing exodus of industrial production and investment in the Far East. Capitalism in the U.S. economy is very clumsy in the distribution and redistribution of activities such as talking about the "demand side" of capitalism links the "supply" and the workseven in a tight market in the size of the U.S. market, "as the first capital trickle-down" Trickle - up ", to concentrate the wealth, then" down "to create the industrial production, but as if this" trickle-down "market U.S., but elsewhere the lack of use can not be avoided by following the road does not properly balance "request-to-supply" in order to avoid the economic capital of the emergency system of the U.S. government steps in with the infusion of: exactlywhat happened in the last recession in 2007-2009.
Even at the time of the decline in ROI (Return on Investment), in particular for SMEs (Small and Medium Enterprises) and SMI (Small and Medium Business Investor), at the time of government policy to promote and condone large Pro Big Business investors and deregulated trickle - down "Capitalism, most of which were the only ones to benefit from the ongoing globalization, the opportunities in these times of economic emergence of bubbles arequite common. The stock market bubble in 1999 and 2007 Great Recession ordered products are inadequate distribution of wealth. becomes clear that the government saves in situations like this in action stage by infusing capital distribution and individual companies in a hurry and social health sector reform, financial reform, tax reform and U.S. SMEs are good examples of how the system works in difficulty, although the effects are seen. It 'hard to believe that theU.S. government could never manage the economy and create jobs. In the next recession, the government is recalling more specific function in the financing and business, which is usually a scary proposition, as inflexible and could not be a government.
The pollution and depletion of land resources under the current economic production for the industrial production is mainly based inevitable, because even if the more developed industrial countries could be introduced, andfollow to protect the environment or developing nations like China and India follow the policy, which is much doubt there are many countries seek to industry, the environmental protection fund to manage their own budget constraints to affect the rules so they can make their production. In the world of the most ROI from industrial production, prices of environmental technology companies have difficulties in competing with others who do notImplement this. Pollution also comes from cutting and burning forests to farm or coal for heating, or driving old cars, or dispose of sewage in the rivers open. So to speak, without global poverty can not be on the curb to curb pollution on the media. But the industrialization of the sidewalk on poverty can not be used for industrial production, then the chances of saving the world from environmental disaster caused by very unequal.
To avoid accidents cheaperand to avoid disruption, the government to take, if the next recession, poverty, and to avoid shortages and budget deficits in order to avoid unemployment, environmental destruction, a new system of economy is necessary, the industrialized countries will be to develop without it.
E 'possible without the continued development of global production is based management of the economic system?
Well, the last of the United States and all governments of the infusion of monetary variables, business involvementand the social distribution of wealth is not based on production economics. Chinese approaches to deal with the economic production is not only based economy: their interference in a "trickle-down" of capital works in the market do not follow capitalism, but is more like artificial "flexible use" of economic "tools" . Saving Greece from the EU and the IMF does not "trickle down" economics, is an encroachment on the powers of capitalism. There are many moreExamples of how governments and corporations free flowing and therefore interfere with the "artificial" methods of economics.
Right now accumulated shock mounting debt from nearly every country in the world, and economists predict impending failure and doom (there was a proposal by some German politicians for Greece to sell some of the Greek islands, but it means it has been used to help Greece). Although economists should only be struck by a high imbalance"Demand-to-care" conditions, the imbalance caused inflation and deflation, so it should be the main concern of global financial institutions are those fights deficit and debt: this institution, as mentioned above trade more as a "lender "and" responsible "should be this one. If the market is global in its dimension seen as a common market, an industrialization of mass should be expected and can not be achieved. Sun balance "request-to-supply"Condition monetary policy, instead of industrialization throughout the world. Global monetary policy flexible currency amounts in Global Financial Institutions Fund Tools Economic, financial and business regulations, improving business "security" means "the road to Rome" only.
Less government involvement in business, more business laws and regulations on business customers, business and the size of the project, intellectual property "laws, risk managementlaw of personal responsibility, etc., these supplements appropriate monetary policy, because this "regulation" of SME and SMI is "safety" and that this increase will be funded more adequately.
low-interest loans and economic aid are "tools" to be used by a global financial system in promoting the environment, renewable energy and agriculture, ecotourism and sustainable growth. This new financial system, commercial banksInvestment projects in countries on the basis of the matrix and low margins.
joshua.konov @ gmail.com
© Joshua Konov, 2010
21st Century global financial system of market economy
Post a Comment