The Reversed Sustainability effect
... is more accurate than ever!
Now we are in the lower part
of the cycle, and:
In
an unbalanced economy (Budget, Savings, Debt, Growth, Balance of Payments,
Current Account and Trade), the money will flow away, will support the creditors
and the markets, and will make the situation even worse for the economy and for
the people living in those economies, so:
1. Most of the world continues to apply nowadays, the theories of the economy and the monetary policies and formulas of the 30's and the 70's. These theories were built after the
"great recession", applied during the cold war, sustained since the
90's, and enforced by the financial deregulation in the beginning of this
century, as the main line of conduct.
Those theories and formulas were made for relatively closed economies, on relatively
regulated markets. It's like "trying to do business and access the current market transactions, with an old IBM Pc2 + a modem built in the 80's, and hope to access the markets in real time, in the same conditions of everyone else".
2. The foreseeable analyses
made in this G+ page, for the Chinese economy and currency, have been validated
over the past 3 years, and will became even stronger in the next year (2017)
3. The foreseeable future for
the Chinese, Indian and Russian markets will build more momentum for the
reversed sustainability effect in the rest of the world, to be seen clearly and
to be addressed. Not because of these countries or their economies, but because
it will change the balance in the world and the unbalanced situations will become
more clear. (monetary dependence and growth, budget, savings, debt, economic
production and flows, capital flows, etc…)
4. Most of the world economies
continues unbalanced.
5. Financially the world
starts to know what has been happening to their money. The money that still
serves the companies and the people, it has been hacked from the economy.
6. If we look at Production of
goods and services in the economies that are unbalanced, as well as the basics,
concerning education, investigation and innovation, market transparency and
basic regulation, the advances in these issues have been static and relegated
to words and intentions. Nothing has been done.
7. The scenario continues when
we look at Savings. They continue to decrease all around the world.
8. Country’s Debt and private
debt is higher than ever.
9. Budgets are not prepared to
support the economy, and cannot solve the crises by themselves, because they
have their own problems to look at.
10. The money from the QE
programs continues to flow away from the economy, and goes directly to finance,
and stays there.
Most of the world continues to
do this systematically
When the cycle rumps up again,
the effects of the reversed sustainability policies created systematically,
cannot be avoided, will became clear and will enforce even more the already troubled
and unbalanced situation.
Link to the Document - The Reversed Sustainability effect
About this post, we can draw the equation presented above ... like the following:
In order to better understand this example, please note that in the drawing, Money is seen as Water... in his various forms ...
----- " ----
Knowing this, the problem is the following:
- All of this is already foreseeable and can be prevented. The world
population has a way to know where are we going. “-This is good or bad? Will it
be good or bad? Are we going in the right direction or not?”
The AWS
- advanced warning system presented in this blog gives everyone a tool to access if the results
of their governance or management are taking the country into the right
direction, or into the abyss. This tool alongside with a must needed
transparency and basic regulation, would allow the governments and the markets
to apply the policies of their choosing, because everyone would be able to know
if the consequences of what they are deciding / doing is taking the right
direction or not, throughout the years.
In order to see this, the so called macroeconomic trends, and the economic knowledge that currently exists in schools and in the mass media communication groups, that knowledge has to take one step back, and:
look at the numbers, access the information, compare and test the results. This must be done without any mind set in the beginning of the work. Only this way they can access their findings. And then, they will know what they are doing, and all of this could be prevented, because we already have a tool to help us.
If only, the governments management and the world of finance would even know what they have been doing for the past 20 years. But most of them, they don’t. They continue to apply the theories that were built during the last century, to the economy and the finance of nowadays. And these are to completly diferent things.
Some of them know, but they continue doing the same lousy business in their best interest. Others don't know because they don’t understand this, or because they were told otherwise, in there schools, at there homes, based on there culture or aquired through there TV's and news papers.
The same principles can be applied to the world of finance.
More on this here: about myths - monetary vs finance vs economy
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