How Globalization affects Countries & Markets

2010-06-18 15:37

Joshua Konov - economics

How Globalization affects Countries & Markets

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This is ongoing - updated article/blog reflecting ever changing Global

Marketplace and some individual countries' economies
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While the markets are becoming more globalized and productivity is
being propelled by ever improving high technologies, some
economies as Chinese and Indian are growing rapidly thus becoming
real powers in industrial production, however the old "science" of
Western Economics is changing very slowly not being able to
conceptualize these undergoing changes. The "old" system of
Economics firmly believes that:
"The main motivations for the rapid expansion of multinational activity are as follows:
Higher profits and a stronger position and market access in global markets
Reduced technological barriers to movement of goods, services and factors of production
Cost considerations a desire to shift production to countries with lower unit labour costs
Forward vertical integration (e.g. establishing production platforms in low cost countries
where intermediate products can be made into finished products at lower cost)
Avoidance of transportation costs and avoidance of tariff and non-tariff barriers
Extending product life-cycles by producing and marketing products in new countries
The urge to merge the financial incentives created by the global deregulation of capital
markets is making it easier to achieve acquisitions and mergers and thereby encouraging the
external growth of a business"

In the foundation of modern days Capitalism are

the Transnational Corporations, however the role of
these conglomerates is very limited if not negative
in solving problems of rising debt, of accelerating
genuine poverty around the world and of
environmental issues;

Introduction Norms controlling activities of TNCs in UDHR and ICESCR Why

and how these TNCs are responsible for environmental damages and harms.
Three catastrophic disasters in human history International Guidelines controlling
TNCs activities Are these Norms and guidelines are enough to hold these TNCs
liable Need of international binding regulations Recommendations Concluding
remarks

Transnational corporation liability for environmental harm

Before starting my presentation on present topic that is transnational corporation

liability for environmental harm, I would like to say that this seminar presentation
is only an approach paper presenting set of issues involved which in the course of
direction take us to the steps of suggestions as far as the TNCs liability for
environmental harms are concerned. Or I can say that this is the first step of my
research work.

To begin with let me first briefly explain to you, what TNCs or MNCs basically
are?

Transnational corporation (TNC), also called multinational enterprise (MNE), is a

corporation or enterprise that manages production or delivers services in more
than one country. It can also be referred to as an international enterprise.

The Norms specifically define a transnational corporation as an economic

entity operating in more than one country or a cluster of economic entities
operating in two or more countries whatever their legal form, whether in their
home country or country of activity, and whether taken individually or
collectively. The working group defines the phrase other business enterprise as
any business entity, regardless of the international or domestic nature of its
activities, including a transnational corporation, contractor, subcontractor,
supplier, licensee or distributor; the corporate, partnership, or other legal form
used to establish the business entity; and the nature of the ownership of the
entity.

Very large multinationals have budgets that exceed some national GDPs.
Multinational corporations can have a powerful influence in local economies as
well as the world economy and play an important role in international relations
and globalization. It is beyond dispute that TNCs are now the leading vehicles
for economic globalization. According to UN Conference on Trade And
Development (UNCTAD). In 2002, global sales of TNCs reached $18 trillion for
world exports.
Throughout the past half century, states and international organizations have
continued to expand the codification of international human rights law protecting
the rights of individuals against governmental violations. In parallel with
increasing attention to the development of international criminal law as a response
to war crimes, genocide, and other crimes against humanity, there has been
growing attention to individual responsibility for grave human rights abuses. The
creators of this ever-larger web of human rights obligations, however, failed to
pay sufficient attention to some of the most powerful non state actors in the
world, that is, transnational corporations and other business enterprises. With
power should come responsibility and international human rights law needs to
focus adequately on these extremely potent international nonstate actors.

Transnational corporations evoke particular concern in relation to recent global

trends because they are active in some of the most dynamic sectors of national
economies, such as extractive industries, telecommunications, information
technology, electronic consumer goods, footwear and apparel, transport, banking
and finance, insurance, and securities trading. They bring new jobs, capital, and
technology. Some corporations make real efforts to achieve international
standards by improving working conditions and raising local living conditions.
They certainly are capable of exerting a positive influence in fostering
development.

Some transnational corporations, however, do not respect minimum international

human rights standards and can thus be implicated in abuses such as employing
child labourers, discriminating against certain groups of employees, failing to
provide safe and healthy working conditions, attempting to repress independent
trade unions, discouraging the right to bargain collectively, limiting the broad
dissemination of appropriate technology and intellectual property, and dumping
toxic wastes. Some of these abuses disproportionately affect developing countries,
children, minorities, and women who work in unsafe and poorly paid production
jobs, as well as indigenous communities and other vulnerable groups.

It is no doubt that environmental consequences of TNCs behaviour are multiple

and substantial, and here I am going to discuss these environmental consequences
of TNCs."

"Crediting" is a economic "tool" of the Capitalism to allow

acceleration of startup businesses and higher consumption, however
the "crediting" could properly function in economic growth with
short self adjusting recessions but the most recent developments in
world economies do not support such consistent gradual
development thus "crediting" started bringing negative value
instead;
By LAURIE WINSLOW World Staff Writer
Published: 6/17/2010 2:20 AM
Last Modified: 6/17/2010 7:09 AM

Over the last two decades, peoples' ability to borrow against their homes or
run up credit card balances during recessions has helped create an
appearance of a safer environment while actually making the economy more
fragile.

That is one observation of Mitchell Petersen, professor of finance with the

Kellogg School of Management at Northwestern University in Illinois. He
spoke Wednesday evening at a private gathering of college alumni at the
Summit Club.

Petersen took time before his presentation for a phone interview to talk about
some of the more pervasive, and overlooked, issues he believes have
contributed to the current economic and financial crisis.

While the most visible signs of the current crisis include falling home prices,
increasing mortgage defaults and record unemployment, the seeds of today's
problems were planted well before the housing boom of the last decade,
Petersen says.

"A lot of what we call this economic and financial crisis are problems with
individuals having too much credit card debt and too much consumer debt,"
he said.

Consumer debt was relatively flat through the 1960s and '70s until about
1983, when the level of debt started to increase, Petersen said.

He noted that the 1991 and 2001 recessions were relatively mild, as
consumption dropped a bit. Unemployment never hit 8 percent in the
recession of the early 1990s, and it barely got above 6 percent in 2001,
Petersen said.

By contrast, the recessions of 1974 and 1981 were

much more severe.

Normally, during recessions of the 1960s, '70s or early '80s, if employees lost
their jobs, they didn't have the ability to borrow against their houses because
home equity loans didn't exist and credit cards were scarce.

People decreased their consumption during economic slowdowns and quit

buying things, which made recessions more severe coming down. But once
people resumed work, they could start buying again, which caused the
economy to bounce back, Petersen said.

In later years, however, people who lost jobs could take out home equity
loans and run up credit card balances and continue consuming, which led to
recessions becoming less severe over the last couple of decades, Petersen
explained.
This tendency to borrow when times are tough and then borrow and buy more
when times get better causes debt to rise, Petersen said.

"That means that a buffer for rainy day is no longer there so when we have a
severe recession like we are in now, our savings essentially have been
consumed," he said.

This ability of middle America to borrow over the last two decades has created
the appearance of a "less risky and a safer" U.S. economy, and people in turn
have changed behaviors and saved less, Petersen said.

Whereas the average middle American in the 1960s put money in a savings
or checking account, today people put it in the stock market, "which is good
when it goes up, but a disaster when it collapses because that wealth
disappears," Petersen said.

The shady business policies that worked so well in a capitalism of

growth and short time self adjustments when "easy" business was
considered kicking off and maintaining economic development has
begun provoking negative impact under the new conditions; the lack
of business laws and personal liability for the risk management, and
the deregulated contract laws is not anymore spearing such
economic growth and in the opposite:
Late Payments A Serious Problem for Small Businesses By incisiveleads
A recent study has shown that more than half the small businesses in theUK
have to delay payments to suppliers and other parties after being victims of
late payment themselves. If you are a small business owner who has been at
the receiving end of a customer who keeps deferring his payments, you know
how that can disrupt your cash flow. Cracking down on late payments is not
easy either, because most small businesses have few clients to start with and
have to keep them happy.
Well, there is no foolproof way to ensure you get payments on time, but that
does not mean you are completely helpless. One basic rule is to print all
terms and conditions on your invoices so there is no misunderstanding
between you and the customer. Any delay in payments should be immediately
followed up, so ensure you have a point of contact that is always available.
The Late Payment of Commercial Debts (Interest) Act of 1998 also allows you
to charge an interest on late payments, but be sure to inform the defaulter
that you will be charging an interest. Any payment becomes late beyond
thirty days of the initial payment period, even if nothing was specifically
mentioned in the agreement with the client.
However, late payments will happen some time or the other, and as a small
business you need the right tools to tide you over a period of financial crisis.
If you have a cash flow problem and a bunch of unpaid invoices, you should
go for invoice factoring. There are quite a few factoring companies who you
can approach, and at our website you can get factoring quotes for free. All
you have to do isclick right here. It makes the process of deciding on a
particular factoring company a lot easier.
Incisive business can help your small business in a various ways. To find out
how we could assist you in your business activities,click here and visit our
website. We can connect you to service providers specializing in business
banking, invoice factoring, vehicle tracking and a host of other services.

One of the great joys that men in free societies have long enjoyed is
the ability to earn an honest wage for an honest day of work. In
particular, the amazing capitalist engine that powered the U.S.
economy for decade after decade greatly rewarded the incredible
hard work and industriousness of the American people. America
was known as the land of opportunity, and we built the largest
middle class in the history of the world by working incredibly hard.
But today, all of that is fundamentally changing. Thanks to rapid
advances in technology, and thanks to the globalization of the work
force, the labor of American workers is rapidly losing value.
Automation, robotics and computers have made many jobs obsolete.
Today one man can do the work that a hundred men used to do. Not
only that, but today American workers literally have to compete
against workers from all over the globe. Global corporations often
find themselves having to choose whether to build a factory in the
United States or in the third world. But in the third world workers
often earn less than 10% of what American workers earn,
corporations are often not required to provide any benefits to
workers, and there are usually hardly any oppressive government
regulations. How can American workers compete against that?

The truth is that labor is now a global commodity. How can an

American worker compete against a desperate, half-starving worker
in the third world that will work like mad for a dollar an hour?

Though neither by not responding to the very important

Environmental concerns and quickly exhausting Earth resources,
nor to the poor Wealth Distribution and Redistribution of a
deregulated Capitalism that prompted mass Fiscal shortages and
 poverty proved feasible to get any country out of the Last Global
Recession.

o The coming catastrophe"Under a cuts-only approach,

Social Security recipients would see their cost-of-living
adjustments reduced. Medicare premiums would rise, as
would the public pension retirement age. The Pentagon
would have almost no money for new arms systems or for
Afghanistan-scale military operations. All other spending
would have to be lowered as a share of GDP. If we simply
tax our way out of the problem, Penner said, the total
federal tax burden would increase by 50 percent by 2040.
Assuming income tax rates rose in tandem until the top
rate took half of an upper earners income, wed also need
a value-added tax that ramped up to 7.7 percent by that
date. Further, Social Security and Medicare taxes would
also have to rise. A fiscal cons"

It (the last Global Recession) showed to anyone that if Governments

of the Most Developed Nations of US and EU did not intervene by
expanding Monetary Quantities (through accumulation of high
National debt), pouring capital into Financial Institutions (such as
Fannie Mae, Freddy Mac, and AIG) and even financing Individual
Businesses (such as GM) their Economies and even the Global
Economy could have collapsed under the pressure of the bust after
huge Real Estate over-capitalization succeeded in "Trickle-down"
Capitalism's "freedom" of speculations of deregulated business and
financial structures, the inadequate system of wealth distribution
unable to sustain and raise "demand".

Berlin increases loan guarantees for troubled lender

Groansicht des Bildes mit der Bildunterschrift: Hypo Real

Estate was a prominent casualty of the financial crisis
 A German government banking fund is
providing an extra 10 billion euros in
protection to state-owned bank Hypo Real
Estate. The new guarantee comes as markets
grow more sensitive about exposure to
government debt.

German nationalized bank Hypo Real Estate has received

an extra 10 billion euros ($12.3 billion) in public loan
guarantees to protect it from renewed market turbulence.
The German government's bank rescue fund SoFFin said
on Friday that it was extending its guarantee level to 103.5
billion euros because of "the current situation on financial
markets."
Fund head Hannes Rehm said that the bank required the
guarantees as it carried out a restructuring program.
Any failure of that restructuring process "would have huge
consequences for the German economy,"

Other reason and not the least important for the deadly Global
Recession of 2007-2009 could be considered the exodus of Industrial
Production and related Capital Investment from the Most
Developed Countries and Markets such as US and EU into China
and India.
o Xinjiang attracts nearly 13 billion yuan of external investments in
Q1 - "External investments have played a crucial role in spurring
economic growth in Xinjiang Uighur Autonomous Region. Xinjiang
attracted nearly 13 billion yuan of external investments in the first quarter
of 2010, up nearly 46 percent from last year, marking the highest quarterly
growth rate of paid-in investments since the global financial crisis."

In the past, Social expenses where contra productive for maintaining

Economic growth, thus Economies of most socialized countries such
as of these of the Eastern Block and then China and India (of the
Early and Mid Sixties, Seventies) were not able to keep up enough
supply to balance the demand for goods and services, however
with the ongoing Globalization and rising Productivity, supported
with huge Capital the system of Social Wealth Distribution is
becoming more economically adequate as the economies of China,
France, Germany, and in its own ways Japan have showed. These
countries were able to overcome the Global Recession by having
better then US Social Systems for Wealth Distribution.
After the fall of the Eastern Block and the Chinas entering into
WTO the Globalization stepped on to establish economic conditions
for incredibly fast industrialization of China and now of India; very
accessible and easy movable highly technologically advanced
industrial equipment for manufacturing combined with already
highly capitalized US financial markets leering for ROI found
prospective on vastly populated Chinese marketplace (of educated
and skilled labor) to move industrial production, outsource and
invest huge capital into industrial production and related
technologies.
o India's Rising Thirst
UCLA economics historian Robert Brenner makes the case that the
current economic unrest is due to global overcapacity and not financial
shenanigans. Essentially, he believes the world is able to produce far
more goods than it logically needs. As a result, profits will continue to
decline until a permanent solution is found to remedy this
overcapacity. What are investors to do? One strategy is to find
companies participating in markets with a pent-up demand for a
product or service. A good example is India and the liquor trade.
According to United Spirits, which is the second largest company of its
kind in the world, over 50% of India's 1.2 billion population has yet to
reach legal drinking age. You don't have to be a genius to see the
unlimited potential of selling liquor in India. If only 10% of those
currently underage take to drinking, we're talking about 60 million
people. That's almost twice the population of Canada. We'll look at
what public companies are doing in the world's second most populated
country.
US, China announce anti-dumping steps "(AP) BEIJING - The United States and
China have announced new anti-dumping steps against each other over aluminum, nylon
and optical fiber, possibly reviving strains over trade and currency that had eased in
recent weeks."

In the Sixties and Seventies a similar to the Chinese and Indian

industrialization was experienced by Germany and Japan, however
the vastness of the Chinese and Indian Economies and Marketplaces
were not remotely matched by German and Japanese Economies
and Marketplaces therefore to suggest that most recent
Globalization and Industrialization was ever historically
experienced is not feasible.

What really changed in the 21st Century is a first time experience of

Vast Marketplaces of China and India's Economies joining US,
Germany and Japan into a Global industrial production, but
because China and India are vast and with educated inexpensive
labor-force, and most important with a very practical Confucian
system of Economics mixing Capitalism, Socialism and even
Communism systems of Economics (however comes: whatever goes)
These "system-internal" organizations can be distinguished from their "system-external"
counterparts not only because they number among the state and collective forms of ownership, but
also because they assume numerous socioeconomic and work-related functions in order to attain
various objectives.the majority of political, economic, social, and work-related resources as well
are also redistributed via the work units. Monopolistic control and distribution of various
resources in conjunction with a corresponding attitude of expectation in the unit""s members may
provide individuals with a sense of security and assurance, but at the same time create a strong
dependence on the respective work unit. Thus mechanisms for social integration as well as social
control are established. In other words, authority is exercised on the basis of monoplistic control
and distribution of resources; this makes it possible for the will of the authority to be imposed on
material, political, and ideological levels, and for obedience to be compelled. In contrast,
"systemexternal" organizations must use the persuasive capacities usual for that culture as well as
legal means as the main ways of imposing the will of the authority.

"China will adjust its monetary policy in accordance with changes of economic
indicators and feedbacks from policy implementation, said central bank
governor Zhou Xiaochuan Saturday.
Zhou made the remarks at a press conference held on the sidelines of the
annual session of the National People's Congress (NPC), the country's top
legislature.
China targets a rise of consumer price of around 3 percent this year,
according to the government work report delivered by Premier Wen Jiabao
Friday.

"It's difficult for us to anticipate all the possible scenarios and changes in
indicators. Therefore, our plicy will be adjusted according to changes in
economic indicators and feedbacks from implementation," said Zhou.

"We are going to continue with a moderately easy monetary policy but at the
same time closely follow inflation and changes in other economic indicators,"
he said, noting that inflation control will be very complicated this year.

China will enhance the focus and flexibility of the policy according to new
conditions and strike a balance between inflation expectation management
and maintaining a sound growth, he said."

these countries are manipulating markets to maintain sustained

development and they are succeeding on an unimaginable scale.
China's Barbie Doll EconomicsOft-quoted, Dong Tao, a heavyweight economist at
UBS in Hong Kong, once said: "A Barbie doll costs $20, but China only gets about 35
cents of that." He was talking about global trade statistics at the time, but that
proclamation might help explain why Chinese companies are increasingly shopping for
and successfully acquiring storied brands, most recently, Ford's Volvo.The lesson: the big
money is in owning the brand, not just making it for foreign companies, writes the AP's
William Foreman.
Frequency of interest rate the central bank
statement touched a sensitive nerve point large
 differences speculation"Zhou Xiaochuan at the
International Monetary and Financial Committee meeting
made the following statements. He said China will make
comprehensive use of monetary, fiscal and other policy
tools, pay close attention to price movements and to
manage inflation expectations, and effectively prevent and
resolve all potential systemic risk."

Capacity (Equity) building as a China's National Policies is a

balance between Free Enterprises rising Productivity and Social and
Fiscal Policies and Infrastructure

Equity, capacity and sustainability "The concept of equity in the context of

capacity building is not sheer ethical. It''s mixed with certain practical social and
economic meaning, therefore inseparable from sustainability.Equity here contains
three folds of meanings: 1) equity between existing generation and future
generations; 2) Equity between different social members under the same
generation; and 3) Equity in responsibility and obligation that different social
members or groups have to achieve sustainable development.

Equity between generations, to much extent, is subject to ethical area. The current
generation, in moral sense, should avoid "eat rice from ancestors while break
future generations''pot". They have no right to overconsume and damage natural
environment and resources that the future generations will live in. This point was
made very clear in the World Committee on Environment and Development
Report. In its definition of sustainable development, that not to harm the future
generations to meet the need of their own was established as a condition.
Although capacity building of the current generation is helpful to equity between
generations, this equity however is not the most important problem to solve in the
area of capacity building.

The equity between different social members under the same generation is closer
related to sustainability. On the one hand, from the perspective of social justice,
it''s necessary that the society takes into consideration the poor''s interests so as to
reduce the gap between the rich and the poor. This was emphasized in the
Brundland Report. That is, The basic needs of the poor in the world should be put
at the top priority. On the other hand, equity between different social members
under the same generation is also a condition to sustainable development. It seems
that there is not much connection between equity and sustainability, or not so
direct. However by some analysis, can you find that different social
members''unequally possession of the resources is an important reason for
difficult sustainable development.This is because that even though the society in
general is rich in resources averagely speaking, yet the gap in term of resources
possession will force the social members short of resources to overuse or abuse
their limited resources to make a living. Since the environmental problems are
interrelated and intereffected, some part of unsustainability in the society will
likely lead to an overall sustainability. Therefore, equity is also a condition to the
sustainable development process.

Sustainable environment and equity of social responsibility and obligation have

been an issue that developed countries and developing countries keep debating on.
Who has polluted the environment? Who is making the environment worse and
worse? This is an issue of responsibility and obligation. Even though it''s an issue
of equity between different social members or groups under the same generation,
in essence, it''s a practical issue in international politics and economics. However,
even if every social member or group is willing to assume the obligation, does he
have the capacity to realize the commitment? There you find that equity, capacity
and sustainability are closely related with one and another."

State Employment is used as a balance for higher wages in Non State

Employment instead of used by the Economics of Capitalism (mostly
and only) Employment Market Forces.
. The Institutional Transition Under the Dual Labor Market

From our analysis of the features of employment absorption and wage determination in the two
parallel urban labor markets we can make the judgment that the labor market in the newly
established sector determined by market forces represent the future direction of development. In
other words,the process of transformation from the SOE''s employment system to NES''s is the
process of the formation of the labor and wage system of the market economy. How will this
system transition take place? Since the two systems of labor and wage in the two kinds of sectors
dominate their respective labor market, the competition for laborers between these two kinds of
enterprises and therefore the expansion of one labor market and the reducement of another will
realize the transition from one system to another. This is the first form that the transition of
employment system will take. In the process of expansion and reducements of the two labor
markets, caused by the competition between the two kinds of enterprises, the traditional system of
the state sector will respond accordingly, namely by introducing reform in order to survive in the
competition and shift to a market economy. In this way the second form of system transition takes
place.

First, we will look into how the first system transition that is characterized by employment
transfers between the two kinds of enterprises occurs and the features of its transformation. If we
suppose the urban labor market is closed off for outsiders, laborers are distributed merely between
the SOEs and NESs. Chart 1 indicates the competitive relations between these two sectors as well
as the process of expansion and reducement of the two labor markets.The horizontal axis stands
for the labor volume. From O1 to the right, the labor volume of the SOEs can be measured; from
O2 to the left that of the NESs can be measured. The domain between O1 and O2stands for total
supply of labor. The vertical axis stands for the marginal productivity of labors or the wage level.
The curve tilting downwards from the right to the left is the curve of marginal productivity of
labors in the NESs. It tilts because their marginal productivity of labors decreases with the
increase of the employed labor''s size. At the same time, the marginal productivity of labors in the
SOEs increases with the number of workers leaving their enterprises.Thus, the curve tilting
downwards from the left to the right is the curve of marginal productivity of labors in the SOEs.
The curve that is steeper, is the curve of marginal productivity of labors in the SOEs under the
assumption that their wage level is determined by the market (see name in quotation marks). In
this situation, this curve intersects at the point A with the curve of the marginal productivity of
labors of NESs during their employed labor volume expansion. This means the wage level of the
two kinds of enterprises are equal to the point Wa, and the expansion of labors''volume in NESs no
longer continues. Then the labor''s volume in the SOEs is O1A while that of NESs is AO2.

Since the SOEs are overstaffed and wage is not determined by the marginal productivity of labors,
however, their curve of marginal productivity should be more flat (might be a horizontal beeline
without elasticity), i. e. the curve whose name is without quotation marks that intersects at the
point B with the curve of the marginal productivity of labors in the NESs. It is at this point that
NESs stop expanding their labor volume, here the wage rate is Wb. As the wage is determined
institutionally NESs need to pay higher wage to attract laborers; and the transformation of the
laborers from the SOEs to NESs becomes smaller. In the real laborer''s distribution, the laborer''s
volume employed by the SOEs is O1B instead of O1A, that for newly established enterprises is
BO2 instead of AO2. So the NESs are limited by their ability to pay higher wage, the difference
between labor volume they really employ and that they should employ is indicated by the distance
between A and B in the chart.

Chart 1 Labor Transfers between Two Sectors

Our theoretical analysis reflect the reality of transformation of laborers between the two sectors.
One characteristic of NESs is very labor intense. It is not feasible for NESs to pay very high wage
to attract employees from SOEs if NESs are to keep their advantage in laborer''s resource. So
competition of employment is limited by the scope of their ability to pay high wages. Within this
scope, however, NESs can certainly attract relatively high qualified workers to form the backbone
of their enterprises without taking cost into account. As it is not possible for the NESs to obtain all
the laborers they need from the state sector it is necessary to have other channels to find labor. If
NESs had not have other such channels, this sector would not have been able to develop to the
present stage.

Our analysis above was made under the assumption that the urban labor market was closed off for
outsiders, in our further analysis we will give up this assumption. NESs obtain highly qualified
workers from the SOEs by paying higher wage in order to satisfy their needs for technology. The
other source is laborers with common skills from the rural areas.

China has discovered that globalization and

international competition work in its favour.
Great exportations "China overtakes Germany to become the biggest
exporter of all" "CHINAS rise has long appeared inexorable. Despite a
decline in total world trade, China has seen its exports fall less than those
of other big powers. A new report by the World Trade Organisation
calculates that the total value of merchandise exports fell by a staggering
23% in 2009. Among the top ten exporters, Japans shipments were worst
affected (falling by 26%). Although China's exports also fell (by 16%), the
contraction was less painful than in Germany (down by 22%). As a result
China is now the single largest exporter. The global downturn has helped
to reduce global imbalances; the leading three exporters accounted for
26.7% of total world exports in 2009 down from a third of the total in
2008. The WTO expects trade to rebound by nearly 10% this year."
 The Real Reason China Resists on the RMB"As I see it, China is asking
a question to which there is no easy answer; what right does the US have
to lecture anyone on economic matters now, having played so large a part
in causing the current global recession through loose monetary policy,
poor risk management by some of our most prestigious companies and
monumental regulatory failures? They are responding to the continued US
belief in American exceptionalism, that we can do whatever we do, right
or wrong, and ignore the criticisms and demands of other countries who
often bear the consequences of our actions, while we continue to insist on
our right to criticize and make demands on them. As Brad Delong and
Stephen Cohen have pointed out, the US simply no longer has the
economic clout to get away with this any longer, and who better than
China to stand up to it?

The problem of the Rest of the World is the ideological almost blind
following of Marx's' Das Kapital financial system controlled by
the rules of trickle-down Capitalism that happen to be quite
impractical even when this system built North Americas, Great
Britain, France and Germany: Great Powers envied by anyone in
the World, however looking in History things sometime have to
change; it happened to Rome, Persia, Victorian Empires, and etc.,
thus change could be considered as ongoing now affecting different
countries and markets in different ways, but the trend is quite
similar ( In the Worlds short term history: once mostly
agriculturally driven GDP changed into mostly industrial
production driven GDP, now to change into mostly artificially
balanced Demand-to-Supply Market Economics GDP).

(For parameters see my research Philosophy of the Economy)

If these new developments of Globalization have harmful effect on

the Most Developed Countries of North America, France, Germany
and Japan to the rest of the World their effect is deadly: rising
national debt or genuine poverty are everywhere: Latin Americas,
Africa, Eastern Europe, and elsewhere;

Credit Swaps at Record High as Greek Debt Crisis Infects

Europe"April 27 (Bloomberg) -- Credit-default swaps on European
sovereign debt surged to records on concern that Greeces fiscal crisis is
starting to hurt the borrowing ability of indebted nations throughout the
region. Contracts tied to Greek government bonds climbed 54 basis points
to 764, Portugal rose 38 basis points to 349 and Spain increased 16 basis
points to 204, according to CMA DataVision. Yields on Greek two-year
notes surged above 15 percent, the highest since at least 1998, on concern
 bondholders will be forced to take losses as the country grapples with the
highest debt ratios in the European Union.
IMF warns against Japan's fiscal deterioration"WASHINGTON A
top official of the International Monetary Fund on Sunday warned against
rising vulnerability in Japans fiscal conditions amid snowballing public
debts and called for an accelerated effort to put the nations finances in
order. Although Japans problem should not be treated in the same way
as the Greece debt crisis, its fiscal vulnerability is rising fairly high, IMF
Deputy Managing Director Naoyuki Shinohara said in an interview with
Kyodo News." Japanese fiscal deficits have been financed by the nations
high savings so far, but the pace of fiscal deterioration is pretty high,
Shinohara said."
Greek budget deficit 13.6 percent of GDP in 2009"(AP) LONDON -
Financially-stricken Greece had an even bigger budget deficit for 2009
than previously thought, official figures showed Thursday-at a time the
country is considering whether to tap a bailout facility from its 15 partners
in the eurozone and the International Monetary Fund."

Greece, Portugal, Spain, and Bulgaria are among many

economically struggling to couple with ever lack of Fiscal and
Monetary quantities countries: to maintain the rising productivity of
Germany, Japan and China or to industrialize themselves is just
futile so they are cursed to high National Debt like Greece, Portugal
and Spain or to high Poverty like Bulgaria whose Government was
"hired" by the World Bank and IMF to maintain strict financial
order:

World Bank, IMF end Spring Meetings with solid step in voice reform"The World
Bank and the International Monetary Fund (IMF) ended their Spring Meetings
in Washington on Sunday, with a solid step in the long-expected voice reform, a
cautious note on exit strategy and a call for global cooperation amid uncertain
recovery prospects. STRIDES IN VOICE REFORM The meetings approved a
plan to increase the developing countries' voting power in the International
Bank for Reconstruction and Development (IBRD) by 3.13 percentage points to
47.19 percent, representing a total shift of 4.59 percent to developing and
transition countries since 2008."
Rating Agency Data Aided Wall Street in Mortgage Deals"In essence,
banks started with the answers and worked backward, reverse-engineering
top-flight ratings for investments that were, in some cases, riskier than
ratings suggested, according to former agency employees. The major
credit rating agencies, Moodys, Standard & Poors and Fitch, drew
renewed criticism on Friday on Capitol Hill for failing to warn of the
dangers posed by complex investments like the one that has drawn
Goldman Sachs into a legal whirlwind. But while the agencies have come
 under fire before, the extent to which they collaborated with Wall Street
banks has drawn less notice.

U.S., EU call on Tokyo to ensure fair competition against Japan Post

TOKYO
"The Japanese government has received a letter from the United States
ambassador and his European Union counterpart calling on Tokyo to
ensure fair competition when revising the nations postal privatization
plan, Chief Cabinet Secretary Hirofumi Hirano said Friday. In the letter,
U.S. Ambassador to Japan John Roos and Hugh Richardson, ambassador
and head of the delegation of the European Commission in Japan, are
believed to have claimed that Tokyos plan on raising the deposit cap on
Japan Post Holdings Cos banking unit may breach World Trade
Organization agreements."
Commentary: This is very suspicious to say the least. As the international
criminal bankster gangsters enrich themselves by creating havoc around
the world(Greece, Ireland, Iceland, Spain, Italy, Portugal, US,)and get
countries under their control, a national safe haven for savings is very
important.US ans EU are claiming unfair competition because Japan wants
to enable a safe haven for people's savings. Japan, hold strong to your
national sovereignty, do not let these criminal scumbags and there New
World Order agenda in. World Trade Organization creating problems and
enriching those at the top through neo-mercantilism."

However neither of these two approaches (the one that Governments

keep raising National Debt nor the one which Governments
maintain strict Budgetary austerity) happen to bring "prosperity"
to these countries: "high deficit" or "financial austerity" both are
not going to make Spain, Portugal and Greece nor Bulgaria
"industrial powers" thus they could cover their ever arising Social
Expenses and Infrastructural Deterioration to ever shrinking Fiscal
Reserves.

Profit of Bulgarian Banks Down by 37% in 2010 Q1 "The profit generated by the
Bulgarian banking system in the first quarter of 2010 amounts to BGN 170 M, which is a
37.2% drop year-on-year. At the same time, however, the profit of the Bulgarian banks
grew by 7.5% in January-March 2010 compared to the last quarter of 2009, showed data
of the Bulgarian National Bank released Thursday.
Fed chief: Joblessness, housing still problematic Despite a more stabilized
economy, he says, the U.S. is "far from being out of the woods."
"WASHINGTON Problems in the housing market and high
unemployment are the biggest economic challenges the nation faces,
Federal Reserve Chairman Ben Bernanke said Wednesday. After suffering
 through the worst recession since the 1930s, the economy seems to have
stabilized and is growing again, Bernanke said. But he warned: "We are
far from being out of the woods. Many Americans are still grappling with
unemployment or foreclosure or both." In prepared remarks to business
people in Dallas, Bernanke said he saw no evidence of a "sustained
recovery" in the housing market, noting that foreclosures keep rising.
Commercial real estate remains a trouble spot, too. The toughest problems
are in the job market. Even though layoffs have slowed, hiring is "very
weak," Bernanke said. He noted that unemployment, now at 9.7 percent, is
still close to its highest levels since the early 1980s."
ADDRESSING THE PARALYZED HOUSING MARKET
"Some in the US (especially the democrats) have been
calling for a housing stimulus bill that will help the
struggling home owners stay in their homes and also stop
the house prices from falling further. President Obama
recently announced an expected plan to fight a deepening
housing crisis by committing up to US 275 billion to stop
the wave of foreclosures sweeping the US. The plan aims
to help around 9 million American families. Under the
proposed plan a US 75 billion fund will be formed to reduce
the monthly payments for homeowners and provide them
a buffer of up to $ 6,000 against any decline in the value
of the houses. The treasury will also agree to double its
financial aid to Fannie Mae and Freddie Mac enabling them
to play a bigger role in supporting the housing sector. The
aim is obviously to increase the confidence in Fannie and
Freddie ensuring the strength and security of the mortgage
market and to help maintain mortgage affordability.
G20 sounds warning note over new bank rules "One of the
lessons of the crisis is that facing global challenges we
need to have global answers," IMF Managing Director
Dominique Strauss-Kahn told the Romanian parliament
during a flying visit to Bucharest. "This lesson is about to
be lost," he said. The IMF chief said individual countries
were working on new regulations and creating new
supervisory bodies. "The only problem is, they don't fit
together," he added. The G20's steering countries said in a
letter to all group members that governments must
recommit and deliver on reforms they agreed to in
Pittsburgh."We all have a mutual responsibility to deliver
on all our commitments to address the weaknesses that
led to the financial crisis," the letter said."This will require
that we maintain our vigilance to address the required
reforms and guard against complacency as our economies
 recover," it added. Bank of England director of financial
stability Andrew Haldane said it is possible that no amount
of capital or liquidity will be enough to totally shield
taxpayers as profit incentives may place risk one step
beyond regulation. "That means banking reform may need
to look beyond regulation to the underlying structure of
finance if we are not to risk another sparrow toppling the
dominos," Haldane said. PAY RULES PATCHY But G20
leaders said there can be no let-up on efforts to agree a
new set of bank capital and liquidity rules -- dubbed Basel
III -- for implementation by the end of 2012. They singled
out the need to still include a leverage ratio or cap in Basel
III as some countries like France have expressed concerns
about its impact. The letter also said all countries must
have adopted the existing Basel II bank capital framework
by 2011, a reminder to the United States which has yet to
implement it in full. They also reiterated the need to
regulate over-the-counter derivatives by the end of 2012
and implement the G20's principles aimed at curbing big
bonuses for excessive risk- taking at banks. The Financial
Stability Board, tasked by the G20 to implement its
regulatory pledges, said several countries have yet to fully
apply the remuneration principles. They were agreed in
part to help quell public outrage at the return of big
bonuses in a sector that had to be shored up by taxpayers
during the financial crisis. "Firms will need to maintain
momentum toward reforming their compensation practices
through 2010 and beyond," FSB Chairman Mario Draghi
said. Many of the major financial centers like the United
States, Britain, Germany, France, Japan and Hong Kong
have taken the regulatory or supervisory steps needed to
implement the code. Argentina, Brazil, Singapore, India,
Indonesia, Mexico, Russia and Turkey lag, the FSB said.
Sarkozy urges new world finance rules in US speech"Sarkozy wants the
United States to champion firm regulations of financial systems, from tax
havens to hedge funds. His ideas were shared by many in the immediate
wake of the financial crisis but momentum for dramatic changes has since
slowed. "We should invent a new global monetary order," he said
Monday, insisting that new regulations would "save capitalism."

Impossibility for many countries to industrialize joined by constant

lack of capital means no solution under the control of the World
Lenders (World Bank. IMF, WTO) that control their borrowers
tightly.

Could not be denied that some of these less developed countries

might have corruption, improper bureaucracy, insufficient markets,
and etc. but whatever WB and IMF could present as reasonable for
lack of development: the ongoing processes of Fiscal shortages for
these and many other countries are to be unavoidable: and because
most of the World economies are 80%+ based on consumption these
countries lower life standards prompt weak market demand
boomeranging back to the Most Developed Industrial Countries
export and so it goes on and on.
Unless in the Past, these new conditions of decreasing industrial
production, following consumption and demand affect US, many
countries in EU, and the rest of the World in a very harmful ways
seen at the Last Global Recession.

US

U.S. rebound on good footing: Fed's Fisher (Reuters) - The U.S. economic
recovery is gathering speed as business activity picks up pace, despite
lingering weakness in employment, Dallas Federal Reserve Bank
President Richard Fisher said on Tuesday.

I'm Sure Glad The Recession Ended "It's a good thing the
recession ended. Otherwise, key economic charts might
look something like this.
Alternatives to appreciating the Chinese yuan "Recent debate has focused on
how to increase US exports and savings and increase Chinese imports and consumption
in order to correct the trade imbalance between the US and China. In America in
particular, focus has been placed on Chinese exchange rate policy. American leaders
would like the RMB to appreciate significantly and quickly. They hope that this would
lead to an increase in US exports and employment."

H-man - Thursday March 04, 2010 08:06AM EST "I was a manufacturing executive for
the past 30 years. I directly observed our manufacturing base disassembled and
outsourced. The pace only increased and unfortunately continues unabated. The
manufacturing jobs sent out of the country were much better paying than the service jobs
that replaced them. The bottom line is now Americans can no longer just "BUY
AMERICAN" and don't have the $ to do so anyway. Greed (Corporate, Political,
Individual) has killed the Amercian Dream.

The New Poor "Economists fear that the nascent recovery will leave more people
behind than in past recessions, failing to create jobs in sufficient numbers to absorb the
 record-setting ranks of the long-term unemployed. Call them the new poor: people long
accustomed to the comforts of middle-class life who are now relying on public assistance
for the first time in their lives -- potentially for years to come."

America tied-up by Record Debt

"Smoothing out the economy's ups and downs, however,
has a cost which is now tying America's hands. At this time
when fears of a double-dip recession are rising, it's an
obvious moment for the government to apply more
stimulus spending as it has in the past. But the U.S. finds
itself more leveraged than ever before, limiting its
options."

Small businesses need a disaster plan and plan B(AP)

NEW YORK - Small business owners in the Upper Midwest
have just gone through a disaster preparation drill as the
Red River rose and threatened to repeat last year's
catastrophic flooding. The region dodged a bullet this time,
but more floods may well come, and other parts of the
country could see tornadoes and hurricanes. Disaster
preparation is one of those tasks that many small business
owners say they'll get around to, soon. But it often gets
pushed down the priority list, especially when a company
is focused on bringing in new business or improving cash
flow.

President Obama is doing a lot of positive economic actions in attempt to

revive US economy: currently signed in laws Health Reform, imposed
support for homeowners mortgage defaults, financing SMB and helping
Student Financing are moves into a right direction. In regard Wealth
Distribution by following the last Global Recession facts are showing
indiscriminate link between using Social and Infrastructural Expenses as
Economic "tools" for balancing "demand-to-supply" ratios. Such trend
could be changed by using an enhanced Stock and Commodities Exchanges
regulated structures that would be sufficiently allowing Small to Medium
Investors to invest Globally and to be able to profit from thus going Global
growth: the ROI (return on investment) such SMI (small and medium
investors) could become Market driven ways for Wealth Distribution; Other
Market related ways for such Wealth Distribution could be by imposing
common Global Markets' regulations (for making SMB equally competitive
to the Large International Corporations) , enhancing Business Contracts and
Bonding Laws, enhancing Intellectual Properties laws and Risk Management
Personal Liability laws to prompt SMB Global expansion.
 Lack of funds & late payments force MSEs to perform billow
capacity

Dearths of funds and delayed payments have forced the Micro and
Small Enterprise (MSE) sector to perform below capacity, a study conducted by
the industry lobby ASSOCHAM said Sunday. "Most of the MSEs are running at
close to 70 percent capacity utilization due to paucity of funds, arising out of
unduly delayed payment of their dues, resulting in serious suffocation," says the
ASSOCHAM study.

There is a Global trend toward enhancing Personal Liability laws for

Corporate Risk Management. (article: "Quantum Economics-Philosophy of
The Economy: Corporate and Business Structures in Market Economics")

Mutual fund workers get whistle-blower cover: judge(Reuters) - A U.S. law

protecting whistle-blowers at publicly traded companies also covers mutual
fund firms, a federal judge ruled in a case involving two former Fidelity
Investments employees.

Monetary and Fiscal Policies are to be adjusted to the Globalization and

rising Productivity by Global Centralized Banking System

EU

Greek turmoil puts pressure on markets as loan

costs soar: "The yield or return on Greek 10-year bonds
topped 7.5 percent for the first time since Athens adopted
the euro in 2001 but later came back to 7.35 percent --
still more than double the rate on the German 10-year
bond at 3.09 percent. Finance Minister George
Papaconstantinou said Athens "is borrowing and will keep
on borrowing" despite the record high costs imposed by
financial markets.
Ireland hits banks with hefty penalty, to inject
billions (Reuters) - Ireland hit its banks with a hefty
penalty to take loans off their hands and said they needed
at least 22 billion euros ($30 billion) in extra funds to
 recover from a property collapse that was worse than
feared.
U.S. Stocks Retreat as Iceland, Greece Temper
Economic Data March 30 (Bloomberg) -- U.S. stocks
retreated as concern that deteriorating government
finances will derail the global economic recovery
overshadowed better-than-estimated reports on American
consumer confidence and home prices. Citigroup Inc.,
Goldman Sachs Group Inc. and Bank of America Corp. lost
more than 1.6 percent as Standard & Poors cut Icelands
credit rating and Greece failed to sell half the 12-year
bonds it offered. Exxon Mobil Corp. and Chevron Corp.
retreated as oil declined after yesterdays 2.7 percent rally.
Stocks also fell after London-based Gartmore Group Ltd.
suspended the manager of its two biggest hedge funds
amid an investigation.
Ten Years of Pension Reform in
Bulgaria: Achievements and Challenges These are
difficult times for Bulgaria, Europe and the world. For more
than ten years the World Bank in Bulgaria has been a
steady partner, supporting reforms in the area of social
security and pensions, both in terms of investing in the
modernization of the social security administration and in
terms of analytical support to ensure fiscal sustainability of
the pension system and we are delighted to respond to
the Ministers request for continued support and work with
all partners towards an effective, just and sustainable
pension system.
Government aims to boost sluggish export growth
" The Economy Minister rejected recent criticism of Germany's export
boom voiced by his French counterpart Christine Lagarde. Last week
Lagarde argued that Germany's huge trade surpluses with countries in
Europe had created imbalances that were partly responsible for the
budget problems in Greece and other EU nations."Such criticism is
unfounded," Bruederle said. "Germany's exports are increasingly
becoming a motor for the economies of other European Union
countries to overcome the crisis."
Greece: It's a Deal
France and Germany have brokered an emergency
financing mechanism to help Greece, following extensive
bilateral negotiations between the two sides earlier on
Thursday (25 March). Under the deal, approved by
eurozone leaders after late evening talks, a funding
package will be created, made up of voluntary
contributions from euro area countries and cash from the
 International Monetary Fund.
The Pain in Spain: An Economy in Crisis JesusManson323
Spain is a leech economy. Much of its "new economy" is
just Bernie Madoff-style banking sucking blood out of Latin
America. It really says something that Spain did NOT start
Europe's Industrial Revolution, despite being an early
colonial power that imported massive amounts of gold and
silver from North/South America.

Latin America
Some Latin Currencies May Be Too Strong
"That will be a big challenge, because right now the region gets only 2
percent of the world's overall investments in research and development,
compared with 28 percent received by Asian countries, according to
RICYT, a region-wide science and technology research network. While
China invests 1.4 percent of its gross domestic product in research and
development, Brazil is investing 1 percent, Argentina 0.6 percent, Mexico
0.4 percent and Colombia and Peru 0.1 percent, respectively, RICYT says.
Even more worrisome, the bulk of Latin America's investments in research
and development are state-funded projects on theoretical issues of no
commercial value. Consider this: While South Korea registered 80,000
patents worldwide last year, Brazil registered only 580, Mexico 330, and
Argentina 80, according to the World Intellectual Property Organization.

Industrial Production moved to the Fast Developing Vast Countries

as China and India

China
India, China to Reap Reward of Global Power Shift, "Roubini SaysThe
size of the emerging markets is going to become larger and larger, and its
going to become greater than the GDP of the United States, Roubini said.
It may take 20 to 30 years, depending on relative economic growth, but
the process will occur and we should get used to it.As the U.S., Europe
and Japan struggle to recover from the worst recession since World War
II, Indias main stock-market index has soared over the last 12 months and
its economy may grow 8.2 percent in the year starting April 1, the fastest
in two years, the Finance Ministry said in February. Chinese gross
 domestic product grew 10.7 percent in the three months through
December, the quickest pace since the fourth quarter of 2007.China has
been a hare and India a tortoise but growth is accelerating in India,
Roubini said. Emerging markets are set for a V-shaped recovery, even as
India still has a massive need for human and financial capital as well as
economic-policy changes to achieve double-digit growth like China, he
said.
Its Chinas World Were Just Living in It "It's easy to forget that big international
bodies like the IMF and the World Bank were created by just a few nations, led by the
United States. These economic organizations have global reach, but that globe used to be
dominated by the American superpower, and their policies were suffused with U.S.
values. When Beijing was a small-stakes player its leaders didn't always like the setup,
but they lived with it, even facing down fierce grassroots opposition to join the World
Trade Organization. But now China has more worldwide clout, and public opinion at
home has taken on a combative (and sometimes downright jingoistic) tone. So with one
eye on China's national interests and the other on domestic critics accusing the regime of
"coddling" the West, Beijing has begun to push harder to reshape international systems to
make them more China-friendly (and, in the process, to raise the regime's chances of
survival).
China Exports Soar 45% Growth" CHINA reported Wednesday
exports soared for the third straight month in February.
The fastest pace in three years as most analysts believe it
could leave Beijing more open to a stronger yuan.
Overseas shipments grew 45.7 % on-year last month to
US$94.5 billion, the China customs bureau announced. The
consistent data cements a turnaround that began in
December when a year-long

The success of China and India is not because of the cheap labor only:
such cheap labor could be found around the Globe, neither it is because
of the vast population only: as a whole South America counts about
400M but could not succeed consistent economic growth, nor because of
"right time in history": for the last 20 years number of recessions have
plagued the World Economy (1999,2008 deadliest ), hence, why these
countries succeeded in economic growth even when recessions were
ongoing?
Countries with very strong Social policies and Wealth distribution and
redistribution? - Maybe just because in the modern Capitalism the
biggest problem is Wealth distribution and redistribution, maybe because
they ignored following the taboos of "trickle-down" economics and used
flexible economic policies "as it comes as it goes", maybe because the
Great Industrial Nations of US, Japan and some in EU were not flexible
enough in adjusting their Economic policies to succeed Economics
growth, maybe because the Big Internationals and Big Inverstors moved
to China and India as a better choice: ther consistent at the same time
flexible economic policies, social stability, vast population, work ethics
and discipline, or finally, may be because China and India pretty much
ignored the Parish Club, the World Bank and the IMF in the ways they
conducted their Economic Policies: supported by strong foreign
investments they changed the rules of the economic game "as it comes:
as it goes": example is the devaluation of the Chinese Currency, the
strong business and financial laws against Corporate Risk Management
fraud, and etc.

India
"Industrial output in February grew at a slower rate of 15.1 percent,
official data showed on Monday. The production in January
was 16.7 percent. The index of industrial production (IIP),
which measures factory output, stood at 10.1 percent
during April 2009-February 2010 against 3 percent in the
same period of 2008-09, data released by the Central
Statistical Organisation showed. While basic goods grew
8.4 percent during the period under review, capital goods
grew 44.4 percent. Consumer durables and consumer non-
durables recorded growth of 29.9 percent and 2.3 percent
respectively."

'Extension of interest subvention for garment sector by April'

Namrata Kath Hazarika | 30 Mar, 2010
The extension of two percent interest subvention to the garment

sector should be given by April 2010 Read more.... Many of the govt.

schemes for MSMEs are irrelevant: Anil Bhardwaj Budget allocation

would address the additional needs of SMEs: H.P.Kumar 'Increase in

rural demand will accelerate growth of SMEs' 'Hardware + Tools

exhibition a solid platform for industry players' Consolidation need of the

hour for SMEs in textile industry
'Indo-Canada trade standing at USD 4 bn annually'"He also
mentioned that India stands out in the world, as an
emerging market with a strong democratic base, fully
 functional in English the worldwide accepted business
language, as a country where the rule of law pervades and
as a country that survived the economic recession. During
the interactive session with Canadian business associations
Canadian Council of Chief Executives and Canada-India
Business Council, organized by CII, it was widely
recognized that India's growing middle class and nation
wide policies for inclusive growth present tremendous
opportunity for participation by Canadian companies.

Govt. clears 23 foreign direct investment proposals"Among the

approved proposals were Tikona Digital Network's Rs.
1,142.21 crore offer for rasing the FDI to 74 percent by
issue of compulsorily convertible debentures and Pune-
based Bharat Forge's plan to issue warrants worth Rs.576
crore. Opto Circuits India's proposal to issue convertible
warrants worth Rs.376.27 crore and a request by Intel
Capital -- the Mauritius-based investment arm of the
computer chip major Intel -- to acquire equity in the Multi
Commodity Exchange of India for Rs.66 lakh also received
the nod. The government put off decision on several
proposals, including the offer of Gurgaon-based S Tel
Private Ltd, a joint venture between Chennai-based Shiva
Group and Bahrain Telecom, to issue fully paid-up fresh
equity shares to undertake the business of providing
telecom services in India.

Indo-African trade to grow by 22 pc in next two years'

The bilateral trade between India and Africa is likely to
grow by 22 percent in next two years, according to an
ASSOCHAM paper released in the capital on Friday. "It is
projected that bilateral trade between India and Africa
could be around USD 55 billion in 2012 from the current
levels of close to USD 45 billion," said Arun Agarwal,
chairman of ASSOCHAM's Africa Committee.

The exodus of Capital from North America and E.U. had a deadly
effect on their Fiscal Quantities (GDP of any country in the World
and the most of Developed Industrialized Nations is based mostly on
Industrial Production and Return On Investment ROI mostly from
Industrial Production).
 Japan, Germany and France succeeded in retaining some of their
High Tech Industrial Production but both Japan and Germany
among others were overrun by China: Japan as the Biggest World
Economy and Germany as the Biggest Industrial Exporter, however
Germany, France and Japan have balanced their internal demand
by strong Social and Infrastructural Policies much better then many
other countries have done it.

Japan
Applications for employment adjustment subsidies fall in Feb The government
grants subsidies to companies which have opted to maintain employment
instead of dismissing workers by shortening the hours they work, for example.
The subsidies are to make up for a wage decrease resulting from shorter
working hours. The number of workers for whom subsidies were applied came
to 1,608,149, down 119,066 from January, the ministry said.
The Global Debt Bomb: "Today Japan can borrow all it wants
from its own citizens. Over the decades they have dutifully
(if mechanically) piled up a $7.7 trillion cache of savings
they keep mostly in low-yielding bank deposits. Those
savings equal two-thirds of the total household wealth of
Germany, France and the U.K. combined, says John
Richards, North American head of strategy at RBS"

Japan's consumer prices continue to fall

By Roland Buerk
BBC News, Tokyo

Japanese exports are rising, but deflation at home is cause for concern

Japan has been in deflation for 12 straight months, figures released by the government show.

Prices fell by 1.2% in February from a year earlier, threatening the country's recovery from
recession.
Japan's economy has been periodically plagued by deflation since the "lost decade" of the 1990s,
which led to years of stagnation.

The prospect that goods will become cheaper in the future makes consumers reluctant to buy
today.

This leads to a vicious circle of falling company profits and wages.

Downward trend The latest figures - where the core consumer price index fell by 1.2% - is not as
bad as in previous months.

Germany
Euro zone deal points to a more German Europe (Reuters) - The masks have fallen. From
now on, we will all be living in a more German Europe, with economic policy driven by
Berlin's hair-shirt export-or-die model. That is the lesson of a deal among euro zone
leaders on a financial safety net for debt-stricken Greece, adopted largely on German
conditions on Thursday after months of wrangling that battered confidence in the single
European currency." The politics of the EU are undergoing a fundamental change at
present, with Germany becoming increasingly willing to cast off the shackles of the past
and make its voice heard," said RBS analyst Timothy Ash in a research note.
China And Germany Unite To Impose Global
Deflation Chindia, invented by Jairam Ramesh, an Indian
politician, to describe the composite new Asian giant. Let
me introduce you to Chermany, a composite of the worlds
biggest net exporters: China, with a forecast current
account surplus of $291bn this year and Germany, with a
forecast surplus of $187bn (see chart).
MF: German economy to grow faster than
expected The International Monetary Fund is cautiously
optimistic for Europe's biggest economy this year. It
expects the German economy to expand by 1.5 percent in
2010. Global growth is estimated at 3.9 percent.
(26.01.2010
German economy records biggest slump in post-war
history The Federal Statistics Office announced on
Wednesday that Germany's largely export-driven economy
recorded its biggest-ever decline since World War II last
year. The country also breached the EU's deficit limit.
(13.01.2010)
Breakthrough thrombosis drug wins German
innovation prize A German research group has
developed new thrombosis medication that can make life a
lot easier for patients and doctors alike. The scientists
 were rewarded with the German Innovation Prize for their
work. (03.12.2009)

Audios and videos on the topic

The new OECD survey (26.03.2010)

The OECD offers a cautious forecast for Germany
in its 2010 survey

France

Sarkozy ready to trigger EU 'crisis' to protect farm

subsidies "President Nicolas Sarkozy addressed the nation
Wednesday for the first time since his party's defeat in
regional elections. He vowed to push on with reforms and
said that he is ready to provoke a "crisis" in the EU to
defend French farm subsidies."

Slight upturn for Paris region but no new jobs yet

2010 will be a slightly better year than 2009 for industry and service sector companies in the Ile-
de-France region which includes Paris and the surrounding area. According to the Bank of
France's annual report - based on a survey of some 2,000 companies - 2009 was a year of stark
decline in both sectors. But for 2010, companies are expecting business volume to rise again -
slowly but surely.

The Ile-de-France region is particularly dependent on big companies which have a high degree of
international exposure, and it has suffered from the global crisis, the Bank of France says in its
report.

Change in performance per sector (2009)

Intermediate goods (wood, rubber, paper etc): -19.7 %

Automobiles: -15.2 %
Plant and equipment (electronics, aeronautic, rail etc.): +0.5 %

But it expects the region's industrial activity to see an upsurge of some three per cent in 2010. The
companies rely on consumer borrowing to individual households, which has remained stable.
But there was a sharp decline in investment in 2009. Rejecting claims this might hinder growth
this year, the bank's regional director Bernard Tedesco said, If were dealing with full order
books, growth can happen quickly. Investment activities have simply been postponed. And never
have conditions been as favourable for companies as now, with interest rates at a historic low.

But the outlook for employment remains grim, according to the report.

In 2009 companies in the region laid off 4.5 per cent of their staff, and another 1.4 per cent are
likely to lose their jobs this year.

Low profits mean that the CEOs are cautious. The job sector will be the last one to grow, says
the report.

Industry and service sector performance (2009 and 2010)

A survey among industry and service sector companies in Ile-de-France

The study was conducted among 1,022 companies from the industrial sector (producers of
industrial or electronic machines, textile, automobile, consumer goods), as well as among 947
service sector companies (transport, merchandising, computer engineering, temporary work). In
the Ile-de-France region, more than 300,000 people are employed in these two sectors.

Industry:
Business volume: -12.3 % (2009), +3.0 % (2010)
Export volume: -13.6 % (2009), +2.8 % (2010)

Service sector:
Business volume: -5.2 % (2009), +1.7 % (2010)
Export volume: -10.8 %, -5.6 % (2010)

The information and links provided above are to prove that the new
trend in Economics differs from the trickle-down Capitalism: just
because there is not trickle-down of capital to the US market but
only trickle-up and trickle-down capital to the Chinese market, also
to prove that all tools of economics are to be randomly used as it
comes as: as it goes as these are used in China and India instead of
ideologically used as in US. Pragmatism is about to rule the Science
of Economics to the rest of this Century.

Production Economics and

Marketism
Quantum Economics-Philosophy of the Economy

Production (only) based economics

tighten its monetary policies and financing guidelines on economic indicators
reflecting growth in production (could be agricultural, industrial and
partially services). Thus it (production based economics) curtails inflation by
preventing economies from harmfully over-expanding monetary supplies.
Production based economics are all currently used systems: radical
capitalistic (like US, Japan), socio capitalistic (EU, China) and anybody else
cracking in between, and communist (Cuba, Venezuela). The Paris Club,
World Bank, IMF and WTO (lenders-which capital quantities are coming
from the developed capital markets of the developed countries such as US,
Great Briton and now China) are establishments that follow the ways of
production based economics; these establishments policies and lending
matrix require tight deficit and budgetary control over borrowers mostly less
developed countries and markets; lending is done on relatively high interest
rates and borrowers are watched closely; their budgetary policies are
scrutinized. Thus borrowers are controlled on a daily basis so borrowers are
prevented from wrongfully overextending their budget (social,
infrastructural, etc. expenses); the usage of Internet has helped lenders to
tighten control over borrowers therefore the countries borrowers have much
less flexibilities to avoid this hug or spent a few dollars over the limit for
Social expenses or fix a bridge or two over the limits set to them by lenders.
The brightest of the brightest minds are hired by lenders, these mostly young
guys would not spare a thing some time to their own nations if borrowers
twist the rules anyhow, they thoroughly believe in the system of production
based economics.
Production based economics is a reasonable philosophical conception defined
very precisely by Karl Marx in his Capital-Critique-Political-Economy
and clearly very precisely explains dialectic cyclically self adjustable periods
of an economy of Capitalism, which economy in different proportions applys
to the economies of Social Capitalism and Communism and overall to any
system of economics taught ever after by any educational institution from
East to West; when even in Communist economics throughout
nationalization of industrial tools of production the people as owners of
industries are sharing the profit equally instead of big fat capitalists
smoking cigars taking the profit, they the people (whatever in reality it
means) were reinvesting ROI and enhancing their standard of life ( in reality
blah, blah , blah), but still the economics of Communism is a production
based economics;
Has the production based economics really worked?
Most definitely: yeas, it worked even by experiencing difficulties such as the
Great Depression the production based economics and its following financing
and controlling practices were in the foundations of any most developed and
developing country and market in the world: from the USA and Germany to
Japan, all of these countries and their economies were developed by the
system of production based economics: that how they avoided economic
crashes, inflation and deflation, thats how they enhanced their standard of
life reaching far better life conditions compare anybody elses; for any poor
country these guys reached the sky. And they did, but
What new happen that makes production based economics inflexible and
inadequate?
Actually, what happen were mostly products and achievements of production
based economics:
Eastern Block Communist countries change their totalitarian systems
and embraced Freedom (which wasnt a political act but a
consequence of inadequate economics: these were the most sensitive to
the new developments in a Globalizing marked with constantly rising
productivity in the rest of the world: lock of competitiveness knock
them off)
Almost any country in the world started pushing toward normalizing
international relations and opened their markets
China become a member of WTO, open Her economy for investment
and private enterprises
European Union started expanding East and Southeast following
aggressive ante-corruption policies in any member country and
establishing number of low interest and subsidiary funds for
development and promotion of environmentally friendly projects
In the USA productivity was raising wild when risk-management and
intellectual properties were becoming most powerful weapons too ?!?
getting into China market. Capital was concentrating into smallest
and smallest percentage of the population, and middleclass income
growth after 2000 came to a hold
 High technologies and concentration of capital were making
industrial production and farming much easier to export: start up,
expand and enhance very quickly elsewhere in a short time limits
Internet allowed people from elsewhere to exchange information and
ideas thus making the world a small place; access to self education
and new inventions, new marketing strategies and new media
approaches
Etc
All of the above and many others were the new events and developments
brought by the new Globalization some of which (events and developments)
are totally experienced for first time, but the most important are the
Environmental issues consequence of long years of indiscriminate pollution
by most developed and developed countries industrial revolutions.
Environmental issues of Global worming are not just concerns but
scientifically proven facts that effect anyone living on Earth; production
based economics is based on industrial production profit driven therefore
high technologies for generation of renewable energies, technologies for
cleaning emission of manufacturing plants are very expensive preposition in
a highly competitive world: for US practically implementing
Environmentally friendly technologies would make for many businesses
difficult to compete to China, Russia and India when even without such
burthen competition is fierce. Not the least is the widespread poverty around
the world in where countries and markets are barely having enough
production to feed their populations then to seriously consider adapting
expensive Environmentally friendly technologies and working toward better
environment.
Production based economics does not use economic tools to deal with most of
these new developments:
Not all countries in a Globalizing market could become industrial:
first, because they cannot compete countries like Germany, US, China
and Japan that basically are capable to flood this Global market with
manufactured goods; second, if all these countries go through
industrial revolutions to become industrialized the pollution would be
unbearable to the Earth environment
Even very developing countries like China and India should not go
throughout industrial revolutions in the old known ways themselves
that they could destroy the world easily
In the existing financial system of lending no country but the lenders
could subsidize their economies if needed to reduce emissions and
improve environment (when even these countries as explained could
not do it on a large scale to not becoming uncompetitive)
Last Global recession showed that deregulated production based
trickle-down Capitalism did not establish release valves for
handling over-capitalization neither "preventive regulatory policies"
to avoid it: the wild-wild-west trickle-down theory of economics did
not estimate that instead to trickle-down the capital went oversees
 being invested in more stable markets, or just was not invested in
man-engaging industries in the US particularly when in there these
were not competitive and less profit generating)
What kind of economics could enhance production based economics to
address above issues, and make ongoing Globalization possible?
Changes in Western economies are naturally ongoing: governments are
financing lending institution and insurance conglomerates, buying shares in
manufacturers and subsidizing agricultures. Governments in most
developed countries are doing what they can to save their economies from
total collapses and this process will continue in the future in and out, but:
Is this kind of Governmental interferences in markets most helpful to these
markets approaches to handle world recessions and are there better ways?
The change of production based economics could be changed possibly by an
economics of Marketism based on parameters and economic tools to
accumulate over-capitalization, and deal with inflation by using artificial
methods to avoid recessions, using central banking with allowance to issue
capital and lend under low interest rates to a World with better security
Quantum leap must be done by developing and undeveloped countries and
markets in order industrial revolutions to be avoided thus Earth
Environment be protected from consequential for industrial revolutions
pollution.
Quantum leap is possible if economics of Marketism is implemented; the new
developments in the world are empowering this new economics by the Rising
Productivity and Globalizing Markets because of the free trade and high
industrial capabilities of most developed countries and markets inflation is
avoidable even when production based economics is not used but free
entrepreneurship is not replaced by nightmarish governmental
bureaucratization which will be probably unavoidable in future recessions if
the old system of economics remains.

21th Century Global Financial System of Market Economy

In the 21th Century currently existing Global Financial System leaded by US
and other Most Developed Nations (incl. China) and managed by the Parish
Club, WTO, IMF and the World Bank must change their approaches to
apprehend the most recent 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 control the global demand-to-supply balance by being
able to issue capital, instead of the current global financial system which
performs more as a lender.
(SEE: How Globalization affects Countries & Markets below

Engines of growth
 Debt-GDP Ratio's - Major economies
EUs economy is contracting now for the last 18 months. The burden of the
Welfare State is not reducing. EUs populations are not scaling down their
expectations. Who will pay for these gold-plated services, that Europeans
consider is their birthright.
The Chinese+ASEAN economies depend on exports to US and European markets
for growth. With these bankrupt economies as customers, the outlook for
China+ASEAN is questionable. Middle East depends on US+EU for security,
banking, monetary and fiscal management.
That leaves the global economy with Brazil, Africa India and Russia as engines
for growth
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 industrial production that adds the highest
percentage to any country GDP (General Domestic Product) and the
consequential fiscal reserves for a country or a market to develop most
definitely such country following the economics of production must
industrialize, or for an industrialized country such must keep being Globally
competitive in industrial production to maintain 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 industrial power added greatly to the current
industrialized economies of Japan, Germany, US capacity by how the Global
industrial production capacity overall is coming to a point of great
concentration of such industrial production into a very few industrialized
economies. The possibilities for other small or even big countries to become
competitive in industrial production and maintain their fiscal policies and
reserves in tact are diminishing.
SEE: Market Economics
From the Most Industrialized Economies US is particularly vulnerable under
these new Global developments of ongoing exodus of industrial production
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 market when trickle-down capital first trickle-up
to concentrate wealth then comes down to create industrial 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 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
Exchange Bubble and the 2007 Great Recession are products of appointed
lack of Wealth Distribution. Thus become obvious that the Government in
situations like that step into actions by infusing capital, save even individual
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 constantly manage the
Economy and create business. In the Next Recession the Government will
appropriate more function in financing and business that overall is a scary
preposition having in mind how inflexible and inept a Government could be.
SEE: "Business Exchange - Market Economy"
Environmental pollution and Earth exhaustion of resources under the current
production economics based on industrial production mainly is unavoidable,
because when even most developed industrialized nations could introduce and
follow policies of protecting the environment, or even the developing nations
of China and India follow up which is highly doubtful, there are many
countries that will try to manage their fiscal shortages by compromising the
rules for Environmental protection thus they can bring to their soil industrial
production. In the World of ROI mostly from Industrial Production the prices
of Environmental protection 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 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 production
are highly unlike.
SEE: "Environmental Issues of Market Economics"
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 develop without being
industrialized.
Is it possible to manage Global development without using current production
based economics system?
 Well the most recent US and any Governments infusion of monetary
quantities, business involvement and social 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 follow 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 organization
interfere with freely flowing Capital and therefore using artificial
methods of economics.
At the moment 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 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 common marketplace a mass
industrialization should not be expected and cannot be achieved therefore.
Thus, for balancing demand-to-supply ratios, the Monetary Policies should
be used instead industrializing the entire Earth. Comprehensive 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 management personal liability laws, and etc, these the
supplements to an appropriate Monetary Policies: because these regulatory
actions will enhance 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 System in promoting environmentally friendly renewable
energies and agriculture, environmental tourism and sustained growth. This
new financial system 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

https://sites.google.com/site/econo
micsofmarket/

Is any solution for the mounting debt

Philosophy of Market Economics
The Global financing system at the moment represented and executed by the
World Bank, IMF and WTO should act as a controller that balances Global
supply-to-demand ratios to avoid Global recessions consequential of such
(supply-to-demand) serious imbalance;instead this system works as a
stubborn lender that controls their(usually small, less developed countries)
borrowers' budgets: monetary and fiscal policies. Obviously the Global
financial system did not perform that well in Europe: Greece, Spain,
Portugal and etc. where governments were and still are equilibrating
between ever rising social and infrastructural expenses and not so fast rising
production of their economies: when their neighbors like France and
Germany are enjoying high social and infrastructural budgets and which
citizens are living in stable and secure environment; less developed countries
of Greece, Spain, Portugal are strangling to maintain the European dreams
of such prosperity and security however these less developed countries could
not compete in anyhow to their well developed big "brothers" by establishing
industrial production in levels corresponding to their rising expenses.
Some countries like Bulgaria choose to maintain relatively lower deficit
which policies happen to result in even bigger then national debt disastrous
consequences because of not being able to raise their standard of life to
establish internal consumption or in other words these second category
countries which followed the requirements of the Global financial system are
in very poor condition
(see:http://sites.google.com/site/businesslendingbulgsria2009/)for example
50% of Bulgarians monthly income levels 200 USD which makes Bulgarian
market inadequate for development: industrial production, and especially
when the Global demand shrank for the last number of years and export is
getting harder; whoever even without current Global recession all of these
countries (the first category with high debt and the second with limited debt)
would never be able to compete in industrial production to their big brothers
in Europe, North America and Asia, therefor their balancing social and
infrastructural development with growing GDP's - mostly contributed by
industrial production is just futile as it could be!
In this currently used economics: to expand Monetary Quantities and cover
ever expanding budgets countries must expand their production by growth
based economies and business activities thus and only thus these countries
will be able to expand their social and infrastructural expanses or even
maintain their current levels of expenditures. Global Monetary System and
consequential Global supply-to-demand balance imposed and enforced by
the WB, IMF and WTO however does not anymore accounts for
Inflationary-Deflationary processes on the Marketplace but more like a
stubborn lender only interested in collecting its assets;
National debt has skyrocketed for many countries small and large: Greece
and Spain in Europe, United States and Brazil in the Americas, Japan in the
Far-East are growing their public debt by running deficit in attempt to
overcome shortages in their Fiscal budgets, save their financial sectors in
case of the US, or just maintain their preexisting levels of social expenditures
as Greece and Spain; or shortages of monetary quantities as Japan.
Most known economists are predicting doom-and-bust for these
accumulating debt countries and overall for the Global financial system that
in someway has to take on the setback of these countries default or even
possibilities of default on debt payments or issued papers devaluation
payments:
Seems most recent times do not differ from that when currencies lost their
gold reserve backups and even farther when farming was replaced by
industrial production as a main employer and GNP source: in both cases
then economists were predicting doom-and-bust and the end of the world;
but alike then neither inflation nor deflation are coming too dangerous for
the economy levels therefor the World from monetary stand point will be
probably still standing and what is going to change is the Global Central
Financing System that instead of being only a lender collecting "paper"
assets will start acting as a controller and a regulator balancing "demand-to-
supply" ratios and avoiding Global crisis: but for this thing to materialize
most recent industrial production based economics must change too: how so?
just as simple as it could be the ongoing Globalization (best represented by
China and India) supported by rapid rising Productivity and Over-
capitalization have prompted a world of difficulties for less developed
countries and markets to develop or continue maintaining competitiveness to
China, US, Germany and Japan' capacities for industrial production and
competativeness. When Monetary Quantities for a country are directly
related to this country industrial production the dead heat of the ongoing
competition does not work in any help to any less developed country,
therefore the struggle for such a country to maintain social and
infrastructural expenses in such short of Monetary Quantities is becoming
futile; The Global Recession particularly accelerated these new processes of
financial turmoil for less developed countries and markets. Very good
examples are Greece, Spain, Bulgaria, and etc. At the same time in a
consumption driven economics as we are at with reducing consumption
comes e diminishing production that consequently hits back to the industrial
developing and most developed countries and markets, and so on and on.
But is the doom-and-bust time unavoidable when the mounting debt of US
and Japan reduce Global financial system to nothing?
May be so?...... but it is not going to happen, and how so?
The Global financial system of tighten to mostly industrial production
Monetary Quantities is about to change in the ways last two exampled
changes (of gold backed currencies to the current industrial production
based and agricultural dominance to industrial production) it will change to
a market driven Monetary Quantities basically tighten to most current
market possibilities to avoid inflation or deflation (see: Quantum Economics-
Philosophy of the Economy). The Global Central Banking System must be
allowed issuing "capital" thus individual countries debt could be offset by
low interest loans and subsidies: when such financing would not create dis-
balance to "demand-to-supply" ratios.
Through low interest rates and subsidies to less developed countries and
markets, and through development of Environmentally friendly technologies
subject of these low rates and subsidies many countries and markets will be
able to maintain some social expenses and infrastructure without becoming
industrialized: organic production and renewable energies, environmental
tourism and landscape protection, could be well enhanced and will become
sources of growth, too.

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Quantum Leap in Market Economics

Quantum Economics-Philosophy of the Economy-Quantum Leap in Market Economics
In market economics economic tools (quantum economics: parameters) are
used indiscriminately (not politically motivated but statistically formulated)
to maintain balance (quantum economics: grid or quantum quantities)
demand-to-supply ratios; Compare to currently used production (based
economics that should be using self-adjusting dialectic economics of trickle-
down approaches for development.
Because, economic tools (parameters) are artificially applied to limit over-
capitalization or under-capitalization effect on real economies and markets,
these (economic tools, parameters) may well be used to increase or decrease
different parts of economies, markets by artificially accelerating or slowing
business activities.
In modern times ecological issues are becoming extremely relevant to Earth
survival: developing and less developed countries industrialization
(considered by the standards of production economics only ways for
development) will destroy Earth either by polluting the environment to point
of no return or by exhausting Earth resourses to point of no return: both
scenarios Earth will not survive such mass industrialization; In third
scenario if developing and less developed countries and markets are pressed
to stay as these are by using financial means and these (developing and less
developed countries and markets) remain in such underdeveloped condition
these still are growing in population and gradually polluting Earth and
destroying Earth resources in much higher then most developed countries
and markets rates; also in deregulated global market environment when
environmental rules and regulations are obeyed by most developed countries
and markets but not obeyed by other markets then industrial production will
move to deregulated areas thus pollution is unavoidable in current
production profit (only) based economics.
Quantum Economics Leap or Quantum Leap is controlled economic jump
executed by pointed use of financial means (low rate business loans and
subsidies) to different areas of real economies and markets {particularly less
developed countries, markets or parts of markets (in this category: parts of most
developed countries and markets underdeveloped areas could be considered)}
Predominantly, development of less developed countries and markets, or
parts of markets should be directed toward environmentally friendly
technologies: renewable energy sources, organic farming, environmental
tourism and etc. In economics of Marketism countries and markets should
not necessary become industrialized to raise their life standards and
development is not (only) related to industrial production:
Question:
Where industrial good will come from to bring needed supply to such
growing demand from non-industrial development?
Answer:
It will come from globalizing rapidly expanding production of countries and
markets of US, Japan, China, India, etc.
Globalization of industrial production and rapidly rising productivity could
provide needed industrial and high tech supply to growing by quantum
leaps consumers demand; to prevent from imbalances of demand-to-
supply ratios central banking system should be established that uses
formulas for monetary quantities and fiscal quantities and precisely applies
economic tools (parameters) to limit economic recessions (quantum
economics: energy buildups and consequential big waves). (See: Quantum
Economics-Philosophy of the Economy-Monetary Quantities Formulas and
etc related articles).

Philosophy of the Economy - (popular version)

Joshua Konov,2010
Posted by Joshua Konov at 3:21 AM
Labels: development, economics, economy, globalization, market
economics, philosophy, quantum economics

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Joshua Konov Chicago, United States In the University my most powerful discipline was
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