One Idea How To Overcome The World Economic Crisis

[georgi_zlatev]

The problem of the world economic crisis is unfair foreign trade balances between the states.If one state has negative trade foreign trade balance with other state the first state has to finance this with debt or money from investments.But when the first state has big debt and the investments are low because of the crisis this decrease the foreign trade of this country and lead to economic crisis.To solve this problem those states who has positive foreign trade balances must separate seven to ten percent from their national budget and be obliged to buy with this money merchandises from those states which has negative trade balances with them.The result of this the states who has negative foreign trade balances will receive money with which probably they will buy merchandises from the states with positive trade balances.This will multiply the foreign trade and will lead to ecinomic growth.

[Buffy]

The problem of the world economic crisis is unfair foreign trade balances between the states.If one state has negative trade foreign trade balance with other state the first state has to finance this with debt or money from investments.But when the first state has big debt and the investments are low because of the crisis this decrease the foreign trade of this country and lead to economic crisis.To solve this problem those states who has positive foreign trade balances must separate seven to ten percent from their national budget and be obliged to buy with this money merchandises from those states which has negative trade balances with them.The result of this the states who has negative foreign trade balances will receive money with which probably they will buy merchandises from the states with positive trade balances.This will multiply the foreign trade and will lead to ecinomic growth.

Unfortunately, even in the Euro Zone where you have a shared currency, you'll find that folks like Angela Merkel and most of the Euro Bankers do not agree with you. For them the only solution is to contract government spending, which will increase investor confidence which will grow markets and rectify the trade balance.

 

And when it comes to China and the US along with the rest of the world, I think the normally dour Chinese would break out in peels of laughter if we asked them to do something like this.

 

But as much as we would like this, there are plenty of problems with such a scheme. Can you see any?

 

 

Be courteous, be obliging, but don't give yourself over to be melted down for the benefit of the tallow trade, :phones:

Buffy

[georgi_zlatev]

The states who have big positive trade balance in practice plunder those states who have negative trade balance.This is not fair and as a result tighten the world trade.The idea positive trade balances states to separate money from their national budgets and spend them for buying merchandise from those states who have negative balances at first sight look bad for the first states but in practice those states with negative balances will spend the money and again they will return in those states with positive balances.This cycle will repeat and will put in motion the world trade.

[georgi_zlatev]

This way to spend money from the budget will increase world trade and will accelerate growth of the world economic.The other way is big world war.Otherwise the world crisis will continue many years.

[georgi_zlatev]

For instance let assume that China has positive trade balance with America.Tariff is one way to make China to accept the new rules.As I said if we make China buy American goods the money which American will get from that is probably to back again in China because American will buy more goods from China.The money will spin between China and America.The forein trade will grow so the economic.America and China will win from this trade.

[georgi_zlatev]

The economists do not understand how the world economy will start to grow.They think that people being rational is the best for the economy but that is not true.I say that the economic growth before the crisis is owe to people irrational actions as buying properties on credit which make the baloon.We may conclude that irrational action of peoples make the economic growth.So to have economic growth we must again make people being irrational which is harder because they are more inform.

[georgi_zlatev]

The state who has positive trade balance may buy not only merchandise but may buy technologies from state who has negative trade balance.Other opportunity is the first state to make investments in the second state.The principle is the money to return back in the second state.The second state probably will spend the money and they again will return in the first state.This will repeat and will lead to increase in foreign trade.

[georgi_zlatev]

If somebody is wondering how big world war can lead to economic growth i can make some suppositons.First let assume that people in given state have 1 million savings in banks.If there is big war it is very probable they become irrational and start spend most of their savings and this will lead to economic growth.The second supposition is that state will print money with which to pay war expenses.If state print 1 million the saving of the people will devaluate in half.From that will win war industry and economic.The losers will be people.If someone guess something else may write.

[georgi_zlatev]

European Central Bank intends to make negative the interests of deposits on financial institution.The result will be decreasing of interests on deposits in whole Europe.That will decrease interest on mortgages.This will stimulate people to make irrational actions as to buy property with mortgage or those who have deposits to spend them because of the very low interests.This will lead to economic growth but at the end the result will be lamentable.Western liberal democracy has to be reformed as making new rules in foreign trade which will make it fair for all states.

Edited May 13, 2013 by georgi_zlatev

[georgi_zlatev]

The fair foreign trade will provide stable economic growth to all states. Otherwise is to make a mortgage baloon with cheap credits but people are more informed and this will not be easy to be done.

[georgi_zlatev]

Let make some prediction what will happen when foreign trade became fair and mutually beneficial.The capital will deconcentrate and will move in those countries who have negative trade balance with aim to win from this foreign trade.As a result the incomes of people in this country will raise and they will buy more goods which will increase foreign trade.The incomes in all countries will equalize and this will be the first step towards the socialism because the next step to raise the incomes will be to nationalize the corporations or to decrease their profits.

[georgi_zlatev]

People must not be scared from socialism.The socialism can not compete with democracy for wages because in socialism it is not the main incentive and people work less.In spite of bigger wages the people in democracy stands at the bottom of pyramid of Abraham Maslow while people in socialism stands at the top of this pyramid.In democracy peoples are learned to have more and more material things and they have to work harder for this.

[georgi_zlatev]

One way for economic growth is one state to print money and spend them through the budget.This way may lead to little inflation but state must do this only when people of this state have enough savings in banks which they do not want to spend or invest them.Printing money redistribute the wealth between those who have savings in banks toward recipients from the budget.

[georgi_zlatev]

Printing money from one state will devaluate her currency.But if all the states stipulate to do this simultaneously the proportion between the currencies will remain the same.

[SaxonViolence]

Well, I'll have to agree with Crabby Old Ayn Rand on this one:

 

There needs to be a Separation between Economics and State as Total and Hysterically Enforced as the most Radical Secular Humanist wants to exist between Church and State...

 

{Odd, being that Secular Humanism is a Belief Structure all its own—but there you have it.}

 

Once you accept the idea of the State "Redistributing" Income, there are No Logical Stopping off Points.

 

It becomes a game similar to Musical Chairs, wherein everyone hopes to have his hand firmly in his neighbor's pocket when the Music Stops...

 

Except that the Dance Never Ends.

 

 

 

Saxon Violence