In the 21st Century currently existing Global Financial system 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 up-to-date 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 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 system is needed to operate the global "demand-to-supply" equilibrium by being able to issue capital, instead of the current global financial system 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 generally founded on market output that adds the top percentage to any country Gdp (General Domestic Product) and the consequential fiscal reserves for a country or a market to originate most assuredly such country following the economics of output must industrialize, or for an developed country such must keep being Globally contentious in market output to mouth 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 market power added greatly to the current developed economies of Japan, Germany, Us capacity by how the Global market output capacity full, is advent to a point of great attention of such market output into a very few developed economies. The possibilities for other small or even big countries to come to be contentious in market output and mouth 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 market output and capital speculation 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 combine wealth then comes "down" to originate market 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 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 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 change Bubble and the 2007 Great stepping back 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 social distribution: The Healthcare Reform, the Finance Reform, and the Us Sme Tax Reform are good examples how the system in distress works, though the consequences are up to be seen. It is hard to believe that the Us Government could permanently administrate the cheaper and originate business. In the Next stepping back the Government will standard more function in financing and business that full, 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 market output generally is unavoidable, because when even most developed developed nations could introduce and corollary policies of protecting the environment, or even the developing nations of China and India corollary up which is extremely doubtful, there are many countries that will try to administrate their fiscal shortages by compromising the rules for Environmental protection thus they can bring to their soil market production. In the World of Roi mostly from market output the prices of Environmental protection 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 recovery the World from Environmental disaster by using market output 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 system of economics is needed, one that will allow countries to originate without being industrialized.
Is it possible to administrate Global amelioration without using current output based economics system?
Well the most up-to-date Us and any Governments' infusion of monetary quantities, business involvement and social 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 corollary 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 hint 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 coarse 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. full, Monetary Policies by Global Financial Institutions flexibly using Monetary Quantities as Economic "tools" and business and Financial Regulations as improving 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 management personal liability laws, and etc, these the supplements to an standard 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 system in promoting environmentally kindly renewable energies and agriculture, environmental tourism and sustained growth. This new financial system must use market 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 principles of market cheaper
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