In the 21st Century currently existing Global Financial ideas lead by Us and other Most developed Nations (incl. China) and managed by the Parish Club, Wto, Imf and the World Bank must convert their approaches to apprehend the most recent developments of chronically becoming indebted World, in which except for a very few countries and store as China and India, most of the rest Most developed 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 control 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 yield based "trickle-down" Capitalism, because the yield based Economics is generally founded on industrial yield that adds the highest percentage to any country Gdp (General Domestic Product) and the consequential fiscal reserves for a country or a store to compose most absolutely such country following the economics of yield must industrialize, or for an developed country such must keep being Globally competing in industrial yield to maintain intact its deficit. The Globalization of the store place propelled by the great Capitalization and the rising Productivity have boosted the economies of China and now India to industrialize rapidly, that industrial power added greatly to the current developed economies of Japan, Germany, Us capacity by how the Global industrial yield capacity extensive is arrival to a point of great attention of such industrial yield into a very few developed economies. The possibilities for other small or even big countries to become competing in industrial yield and maintain their fiscal policies and reserves in tact are diminishing.
Trickle Up Poverty
From the Most developed Economies Us is particularly vulnerable under these new Global developments of ongoing exodus of industrial yield and capital investment 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 store when "trickle-down" capital first "trickle-up" to integrate wealth then comes "down" to originate industrial production, but than when such "trickle-down" does not go to the Us store 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 business 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 transfer Bubble and the 2007 Great retreat are products of appointed lack of Wealth Distribution. Thus become certain that the Government in situations like that step into actions by infusing capital, save even private businesses and prompt public 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 administrate the economy and originate business. In the Next retreat the Government will standard more function in financing and business that extensive 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 yield economics based on industrial yield in general is unavoidable, because when even most developed developed nations could introduce and ensue policies of protecting the environment, or even the developing nations of China and India ensue up which is very doubtful, there are many countries that will try to administrate their fiscal shortages by compromising the rules for Environmental safety thus they can bring to their soil industrial production. In the World of Roi mostly from industrial yield the prices of Environmental safety technologies are manufacture businesses hardly competing 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 dispose 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 saving the World from Environmental disaster by using industrial yield are very unlike.
To avoid multiple 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 compose without being industrialized.
Is it inherent to administrate Global improvement without using current yield based economics system?
Well the most recent Us and any Governments' infusion of monetary quantities, business involvement and public distribution of wealth is not based on yield economics.
The Chinese approaches in handling economy is not yield 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 society 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 suggestion 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 convention 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 common marketplace a mass industrialization should not be incredible and cannot be achieved therefore. Thus, for balancing "demand-to-supply" ratios, the Monetary Policies should be used instead industrializing the whole Earth. extensive Monetary Policies by Global Financial Institutions flexibly using Monetary Quantities as Economic "tools" and business and Financial Regulations as enhancing business "security" are "the way to Rome" only.
Less Governmental involvement in business, more business laws and regulations on business contracting, business and project bonding, intellectual properties' laws, risk supervision personal liability laws, and etc, these the supplements to an standard Monetary Policies: because these "regulatory" actions will improve Sme and Smi "security" and make these much more enough 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 industrial 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 ideas of store economy
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