In the 21st Century currently existing Global Financial ideas lead by Us and other Most industrialized Nations (incl. China) and managed by the Parish Club, Wto, Imf and the World Bank must turn their approaches to apprehend the most new developments of chronically becoming indebted World, in which except for a very few countries and market as China and India, most of the rest Most industrialized Economies as Us and Gb, Developing Countries as Spain, Portugal and Greece, and Undeveloped Countries as Bulgaria, Rumania and many South American Countries, Asian and African Countries are greatly indebted or very underdeveloped. A Central Banking ideas is needed to operate the global "demand-to-supply" equilibrium by being able to issue capital, instead of the current global financial ideas which performs more as a "lender".
There have been many indications that the process of running fiscal shortages for many countries cannot be reverse by using current Economics of production based "trickle-down" Capitalism, because the production based Economics is generally founded on commercial production that adds the highest ration to any country Gdp (General Domestic Product) and the consequential fiscal reserves for a country or a market to manufacture most right on such country following the economics of production must industrialize, or for an industrialized country such must keep being Globally competitive in commercial production to articulate intact its deficit. The Globalization of the market place propelled by the great Capitalization and the rising Productivity have boosted the economies of China and now India to industrialize rapidly, that commercial power added greatly to the current industrialized economies of Japan, Germany, Us capacity by how the Global commercial production capacity ample is arrival to a point of great attention of such commercial production into a very few industrialized economies. The possibilities for other small or even big countries to come to be competitive in commercial production and articulate their fiscal policies and reserves in tact are diminishing.
Trickle Up Poverty
From the Most industrialized Economies Us is particularly vulnerable under these new Global developments of ongoing exodus of commercial production and capital venture to the Far East. The Capitalism of Us Economics is very inept in distributing and redistributing Wealth so to speak the "demand" side of Capitalism correlates the "supply" and works well in a close marketplace in size of Us market when "trickle-down" capital first "trickle-up" to consolidate wealth then comes "down" to originate commercial production, but than when such "trickle-down" does not go to the Us market but to elsewhere the shortage of consumption cannot be avoided, following in not properly balancing "demand-to-supply", thus, to avoid economic catastrophes Us Government steps up with infusing capital into the system: exactly what happen at the last Great retreat of 2007-2009.
Also in time of narrowing Roi (Return Of Investment) particularly for the Sme (Small & Medium Enterprises) and from the Smi (Small & Medium Investors), in time of Governmental policies promoting and tolerating pro Big firm and Big Investors deregulated "trickle-down" Capitalism which were mostly the only ones benefiting from the ongoing Globalization, the possibilities in such times for occurrences of Economic Bubbles are quite common. The 1999 Stock replacement Bubble and the 2007 Great retreat are products of appointed lack of Wealth Distribution. Thus come to be sure that the Government in situations like that step into actions by infusing capital, save even personel businesses and prompt collective distribution: The Healthcare Reform, the Finance Reform, and the Us Sme Tax Reform are good examples how the ideas in distress works, though the consequences are up to be seen. It is hard to believe that the Us Government could constantly manage the economy and originate business. In the Next retreat the Government will suitable more function in financing and firm that ample is a scary preposition having in mind how inflexible and inept a Government could be.
Environmental pollution and Earth exhaustion of resources under the current production economics based on commercial production generally is unavoidable, because when even most industrialized industrialized nations could introduce and ensue policies of protecting the environment, or even the developing nations of China and India ensue up which is highly doubtful, there are many countries that will try to manage their fiscal shortages by compromising the rules for Environmental security thus they can bring to their soil commercial production. In the World of Roi mostly from commercial production the prices of Environmental security technologies are making businesses hardly competitive to others that do not implement these. Pollution comes also from cutting and burning woods to farm or from heating with coal, or from driving old autos, or from arrange sewers into open rivers. So to speak, without curbing on the Global poverty can not be ways to curbing on pollution. But to curb on poverty industrialization cannot be used thus the possibilities for salvage the World from Environmental disaster by using commercial production are highly unlike.
To avoid manifold economic crashes and upheaval, to avoid The Government take over when next recessions, to avoid fiscal shortages and deficit, unemployment and poverty, to avoid Environmental destruction a new ideas of economics is needed, one that will allow countries to manufacture without being industrialized.
Is it potential to manage Global improvement without using current production based economics system?
Well the most new Us and any Governments' infusion of monetary quantities, firm involvement and collective distribution of wealth is not based on production economics.
The Chinese approaches in handling economy is not production based only economics: their interference in the ways "trickle-down" capital works in the marketplace does not ensue Capitalism but is more-like "artificial" flexible usage of economic "tools'.
The Greece bailout by the Eu and Imf is not "trickle-down" economics; it is an interference with the powers of the Capitalism.
There are many more examples of how Governments and club interfere with freely flowing Capital and therefore using "artificial" methods of economics.
At the occasion he mounting debt accumulated by almost any country in the World horrify economists and they predict imminent bust-and-doom (there was a recommendation by some German politicians to Greece to sell some Greek islands, but then funds has been appropriated help Greece). Though economists should be horrified only from high imbalance of "demand-to-supply" ratios, which imbalance provokes inflations and deflations; thus should be the biggest concern to the Global Financial Institutions instead these are fighting deficit and debt: these institution as mentioned above are acting more-like a "lender" then a "controller" these should be. If the Global marketplace is seen in its vastness as a base marketplace a mass industrialization should not be anticipated and cannot be achieved therefore. Thus, for balancing "demand-to-supply" ratios, the Monetary Policies should be used instead industrializing the whole Earth. ample Monetary Policies by Global Financial Institutions flexibly using Monetary Quantities as Economic "tools" and firm and Financial Regulations as enhancing firm "security" are "the way to Rome" only.
Less Governmental involvement in business, more firm laws and regulations on firm contracting, firm and project bonding, intellectual properties' laws, risk administration personal liability laws, and etc, these the supplements to an suitable Monetary Policies: because these "regulatory" actions will heighten Sme and Smi "security" and make these much more sufficient to be financed.
Low interest rate financing and subsidizing are economic "tools" to be used by a Global Financial ideas in promoting environmentally kindly renewable energies and agriculture, environmental tourism and sustained growth. This new financial ideas must use commercial banks to invest in countries on project by project basis on set matrix and low margin.
joshua.konov@gmail.com
©Joshua Konov, 2010
21st Century Global Financial law of market cheaper
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