Archive for the Macro-economy Category
Why austerity cannot be our proposal to “fix” the system?
If we are to take “austerity” into consideration, as a voluntary way of controlling the major corporations’ profits by reducing our spending, we must be aware of a couple of things:
1.- They must have already foreseen a decrease of their sales due to an economic contraction cycle, so they’ve prepared back-up tactics, like spreading their investment mostly in basic goods, or pharma, or increasing the price of utilities, all of which, which have an inelastic demand.
2.- Austerity is exactly the solution “THEY” are applying too.
Sounds a bit strange… doesn’t it?
3.- Extreme austerity, will lead to self-constrain in a way, instead of self-liberation (please don’t get me wrong, I am not saying that self-liberation is obtained by consumerism, but you should be FREE to decide what you do with your low-medium-high income).
4.- By reducing the volume of the market, we will deepen the recession process, by further feeding the vicious circle.
5.- Eventually, they will last longer than you.
So, I don’t see the strategy “squeeze the market”, might be an option.
There’s a new governor in the Bank of England (yes, the same central bank that was pointed at, by the Head of the Barclays as instructing them to cheat on the Libor affair by the middle of the year), and guess what?
Bull’s eye!!! The man comes from “The Bank” (you know, Godman Sucks). And there’s more, he’s a Canadian, so he would not care about the country, if to impose unpopular measures.
How many more hints do we need to become aware this is a chess board and they are spreading their pieces to make us surrender?
Ancient Greeks had the privileged capacity to produce knowledge in every field, from the smallest part to the widest whole, and well as the other way round. This could well be a procedure of approach to build or conceive reality, or plainly consider that reality actually IS utterly consistent, in terms of part/whole.
They were able to figure out the radius of the Earth, just by means of trigonometry, with a few more or less complex calculations.
They also reached the notion of the atom, without actually being able to physically “see” it.
Today, in our societies, we lack of that vision/approach/capacity. And that concerns me, because we then have to leave the true knowledge of our whole, either to a belief, to assumptions, to appearance of events, or in the worst case, to the tale media tells us.
Why am I so concerned about Society? I don’t know, it is something that draws my attention. And even more, although having a field of knowledge about it, (Sociology) we are still at the dawn of its discovery, modelling and managing.
A sound discussion is arising and will gain strength very soon. And the big difference between this discussion and any other previous one, is that it will be GLOBAL.
In the past, there had obviously been “frictions” and “settlements” when conflicts of interests were brought to light, but now seems unattainable to even consider the purpose of addressing a world order (no caps), unless for the NWO (with caps), presumably to be imposed from the top.
There’s no choice.
We MUST RESIST, for which, we MUST FIRST AGREE, and again, for which, we MUST FIRST KNOW – what’s going on.
At present, we have two options to approach the current situation:
a) There are several crisis, i.e.: Spain, Italy, Ireland, Greece, Portugal, U.S.A., France, Germany, Netherlands, and so on, or
b) There is one only crisis, with effects in the said countries.
We can now focus on the effects (corruption, political system, IMF, debt market), or we can focus on the causes: CONCENTRATION OF WEALTH.
In my opinion, we should decide as fast as possible, if we are going to climb “this mountain” or not, and if so, prepare ourselves for the task.
How do we know how high the mountain is?
Let’s explore some figures, that I’m sure we all know, related to wealth and expenses of people and organizations at the top:
2) U.S.A. public debt: 15.000 trillion dollars.
3) World main economies debts all together: 40.839 trillion dollars.
4) Some yearly budgets for International Organizations:
4.1.- UN 5 bn US $ (2010-2011)
4.2.- IMF 823 SDRs (Operational disbursements 2011) (1 SDR = 1.621 u$s in 2011)
4.3.- WB 21.8 bn US $ (2011 pg 5, table 2 – Gross disbursements)
4.4.- OECD 347 million € (2012)
4.5.- WHO 5 bn US $ (2009)
4.6.- UNESCO 653 US $ (2010-2011)
5) First 10 Top Companies in Fortune Global 500 add up to 2.8 trillion dollars (FY 2011) in revenues.
6) First 100 Top Companies in Fortune Global 500 add up to 12 trillion dollars (FY 2011) in revenues.
7) We should also bear in mind that FX turnovers around the World are more than 14 times GDP real world trade economy.
This only goes to get an idea of the size of the world economy, and the stupid size of each of ours. We can now have a dimension of our acts, our accountability and our impact in the global markets (close to zero… 😉 … )
You could also put together the amounts of real economy figures against debt ones. Scary.
The creditors will be the owners of the world.
We, common citizens, must start building up our own “model” for our society, for them, they’ve already have one and it might just not be including you.
“The most important issue in this year’s election is the economy.
Unfortunately, this topic has now been “politicized,” which means that you can’t talk about it without being instantly cheered or jeered by fans of each respective political team.
But the economy is much more important than this year’s election or either political team.
And both teams are responsible for the mess we’re in–and so, I am sorry to say, are the rest of us.
And fixing that mess is going to take decades, regardless of who’s in power.
But we have to fix it. Or we’re going to become a nation of a few million landed aristocrats and 300 million serfs.
The first step is getting past the political blame-game and understanding what’s wrong.