In the 21st Century currently existing Global Financial theory lead by Us and other Most advanced Nations (incl. China) and managed by the Parish Club, Wto, Imf and the World Bank must change their approaches to apprehend the most up-to-date 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 theory is needed to operate the global "demand-to-supply" balance by being able to issue capital, instead of the current global financial theory 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 commonly founded on market yield that adds the highest ration to any country Gdp (General Domestic Product) and the consequential fiscal reserves for a country or a shop to organize most without fail such country following the economics of yield must industrialize, or for an advanced country such must keep being Globally competing in market yield to speak 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 market power added greatly to the current advanced economies of Japan, Germany, Us capacity by how the Global market yield capacity unabridged is coming to a point of great concentration of such market yield into a very few advanced economies. The possibilities for other small or even big countries to become competing in market yield and speak 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 market 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 shop when "trickle-down" capital first "trickle-up" to join wealth then comes "down" to create market 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 stepping back 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 company 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 change Bubble and the 2007 Great stepping back are products of appointed lack of Wealth Distribution. Thus become distinct that the Government in situations like that step into actions by infusing capital, save even individual businesses and prompt communal distribution: The Healthcare Reform, the Finance Reform, and the Us Sme Tax Reform are good examples how the theory in distress works, though the consequences are up to be seen. It is hard to believe that the Us Government could permanently conduct the economy and create business. In the Next stepping back the Government will approved more function in financing and company that unabridged 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 market yield in general is unavoidable, because when even most advanced advanced nations could introduce and ensue policies of protecting the environment, or even the developing nations of China and India ensue up which is extremely doubtful, there are many countries that will try to conduct their fiscal shortages by compromising the rules for Environmental safety thus they can bring to their soil market production. In the World of Roi mostly from market yield the prices of Environmental safety technologies are development 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 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 market yield are extremely 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 theory of economics is needed, one that will allow countries to organize without being industrialized.
Is it inherent to conduct Global improvement without using current yield based economics system?
Well the most up-to-date Us and any Governments' infusion of monetary quantities, company involvement and communal 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 club interfere with freely flowing Capital and therefore using "artificial" methods of economics.
At the occasion he mounting debt accumulated by practically 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 custom 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 improbable and cannot be achieved therefore. Thus, for balancing "demand-to-supply" ratios, the Monetary Policies should be used instead industrializing the entire Earth. unabridged Monetary Policies by Global Financial Institutions flexibly using Monetary Quantities as Economic "tools" and company and Financial Regulations as enhancing company "security" are "the way to Rome" only.
Less Governmental involvement in business, more company laws and regulations on company contracting, company and task bonding, intellectual properties' laws, risk supervision personal liability laws, and etc, these the supplements to an approved Monetary Policies: because these "regulatory" actions will improve Sme and Smi "security" and make these much more adequate to be financed.
Low interest rate financing and subsidizing are economic "tools" to be used by a Global Financial theory in promoting environmentally cordial renewable energies and agriculture, environmental tourism and sustained growth. This new financial theory must use market banks to spend in countries on task by task basis on set matrix and low margin.
joshua.konov@gmail.com
©Joshua Konov, 2010
21st Century Global Financial theory of store cheaper
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