In the 21st Century currently existing Global Financial ideas lead by Us and other Most advanced 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 shop as China and India, most of the rest Most advanced 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 output based "trickle-down" Capitalism, because the output based Economics is ordinarily founded on commercial output that adds the highest ration to any country Gdp (General Domestic Product) and the consequential fiscal reserves for a country or a shop to design most undoubtedly such country following the economics of output must industrialize, or for an advanced country such must keep being Globally contentious in commercial output to utter intact its deficit. The Globalization of the shop 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 advanced economies of Japan, Germany, Us capacity by how the Global commercial output capacity total is coming to a point of great attention of such commercial output into a very few advanced economies. The possibilities for other small or even big countries to become contentious in commercial output and utter their fiscal policies and reserves in tact are diminishing.
Trickle Up Poverty
From the Most advanced Economies Us is particularly vulnerable under these new Global developments of ongoing exodus of commercial output 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 shop when "trickle-down" capital first "trickle-up" to merge wealth then comes "down" to originate commercial production, but than when such "trickle-down" does not go to the Us shop 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 recession 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 replacement Bubble and the 2007 Great recession are products of appointed lack of Wealth Distribution. Thus become unavoidable that the Government in situations like that step into actions by infusing capital, save even individual businesses and prompt group 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 cheaper and originate business. In the Next recession the Government will thorough more function in financing and business that total 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 output economics based on commercial output mainly is unavoidable, because when even most advanced advanced nations could introduce and consequent policies of protecting the environment, or even the developing nations of China and India consequent up which is highly doubtful, there are many countries that will try to administrate 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 output the prices of Environmental security technologies are development businesses hardly contentious 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 rescue the World from Environmental disaster by using commercial output are highly unlike.
To avoid complicated 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 design without being industrialized.
Is it potential to administrate Global improvement without using current output based economics system?
Well the most recent Us and any Governments' infusion of monetary quantities, business involvement and group distribution of wealth is not based on output economics.
The Chinese approaches in handling cheaper is not output based only economics: their interference in the ways "trickle-down" capital works in the marketplace does not consequent 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 moment he mounting debt accumulated by approximately any country in the World horrify economists and they predict imminent bust-and-doom (there was a advice 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 imaginable and cannot be achieved therefore. Thus, for balancing "demand-to-supply" ratios, the Monetary Policies should be used instead industrializing the entire Earth. total 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 task bonding, intellectual properties' laws, risk administration personal liability laws, and etc, these the supplements to an thorough Monetary Policies: because these "regulatory" actions will heighten 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 friendly renewable energies and agriculture, environmental tourism and sustained growth. This new financial ideas must use commercial banks to invest in countries on task by task 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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