One idea how to overcome the world economic crisis

Discussion in 'Business & Economics' started by georgi_zlatev, May 7, 2013.

  1. georgi_zlatev Registered Member

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    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.
     
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  3. georgi_zlatev Registered Member

    Messages:
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    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.
     
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  5. georgi_zlatev Registered Member

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    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.
     
    Last edited: May 13, 2013
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  7. KitemanSA Registered Senior Member

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    The proper path for countries with negative trade balances is to have its citizens get off their ass-ets and go to work.
     
  8. georgi_zlatev Registered Member

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    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.
     
  9. georgi_zlatev Registered Member

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    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.
     
  10. georgi_zlatev Registered Member

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    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.
     
  11. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    Are you asserting that socialism is incompatible with democracy? I consider the 3 or 5 Scandinavia countries to be very democratic - and educate their populations well, so voters don´t do as in the US, voters do: Vote for representatives who promise to reduce taxes, to give more "goodies," and to send the bills to the not yet born.

    Without that good education FOR ALL, democracy is unstable - will always sink into deep debt and have its currency collapse. Again, I note (many prior post have) the US´s most fundamental problem is the local funding of elementary schools. (Only the schools in neighborhoods of the wealthy are nearly the equal of ANY Scandinavian school.) On average, the Scandinavian eight graders know more math, science, history and economics than most American graduating from 12 grade do, not to mention being fluent in at least three languages. (Their own, usually English plus either French or German, but being fluent in 5 is not rare.)*

    Also important is the teacher moves up with the students each year in elementary school. Everyone knows who is responsible if “Johnny can´t read.” Her students help each other to learn – educating the class well is a group project, and this being concerned about others, continues into adult life. Thus, they vote for the high taxes needed to educate all well, provide essentially free high-quality medical services TO ALL, - i.e. they become responsible citizens. For example, they don´t throw trash out of their car window, and 100 other “little sins against their country” so common in the USA.

    * My first now ex-wife was Norwegian and was a school teacher. She could have been sent to teach for a year anywhere in Norway. Thus, she had to be fluent in the three Norwegian languages too. (“Old Norsk” – used in remote parts from the Viking days, New Norsk, one intellectuals have made, striving for merge, & Ricksmal (not spelled correctly) which the urbanites adopted, with modification, during the ~400 years that Norway was ruled by Denmark or Sweden) She speaks 7 languages but her Italian is not fully fluent.
     
    Last edited by a moderator: May 14, 2013
  12. georgi_zlatev Registered Member

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    I do not say that socialism is incompatiable with democracy .Under socialism i mean the regimes in Eastern Europe before 1989 year.Under democracy i mean what came after this regimes fell.
     
  13. Billy T Use Sugar Cane Alcohol car Fuel Valued Senior Member

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    You said: "The socialism can not compete with democracy." as if they were by nature different. I think, the reason "socialist" East Gremany could not compete with democratic W. German had little to do with it being "socialist" and a lot to do with it being a centrally planned economy. Scandinavian socialists can AND DO, compete very well against much larger "democratic" economies, like the US.

    Thus either you don´t consider them socialist or are ignorant of the facts with your statement, I quoted.
     
    Last edited by a moderator: May 14, 2013
  14. georgi_zlatev Registered Member

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    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.
     
  15. georgi_zlatev Registered Member

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    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.
     
  16. kmguru Staff Member

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    Not when you are playing with international currency and everyone needs that. So, whether you go up or down does not matter in the long run as long as you produce for the long run. That is what is at issue.
     
  17. Albert29 Registered Member

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    Last edited: May 27, 2013
  18. Economister Registered Member

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    I think that you're referring to the current situation in the EU. One of the goals of the ECB is to properly manage the flow of money, and while they have done many things to improve upon the current situation, I can agree that it hasn't been that effective. But that's because the economic policies of each EU member are distinct, while their currency remains the same. Unlike in the United States, where there is a Federal "economic policy" which are then modified by each state, the EU has no centrally expressed ideal for economic policy. This has resulted in a fairly weak ECB.

    It's important that when we consider the EU we look at it as a bunch of nations with one currency and no extra-national plan.
     

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