What about now ... Is The Reversed Sustainability Effect already in place?

Update

Uk vs US vs Japan and the EU vs the World

The UK, the US and Japan, have been for quite some time (the past 20 years) creating and enforcing the conditions for The Reversed Sustainability Effect to take place. But what has been happening these past few days, is not it.

Explaining: 

Photo from the website Wikipedia about England. All rights reserved


The UK leaving the EU, does not generates a new effect. In my opinion, even though only England and Wales will decide to leave the EU, even this will only enforce the conditions already met by these countries, and the policies once again put in place by the central banks worldwide. These policies will deepen even further the conditions for a disaster, worldwide.

One way foreword, that will eventually take place, that is, for England and Wales, they will stand alone, without the support of the Scottish Oil to backup the enormous debt generated by bad policies and also by the bank of England, and they will have no other chance than to approach the US again, getting further away from the EU.
They will try to bring back the past alliance with the US, looking for support worldwide, for their financial sector, because this is the only growth item that England has and this is only concerning financial services.
This will sync even further the financial operations between the two countries, making The Reversed Sustainability Effect even more dangerous, than it already is.

With unprecedented amounts of money and unregulated markets, joined together with perfectly unbalanced economies, its a recipe for disaster waiting to happen.





I don't usually agree with him ... but today I was lessening to what Mr. Alan Greenspan was saying, and I have do say this: In most things that he has said today, he is absolutely correct!

Note: In the following notes / statements I have added my opinion between ()

About the following:
  1. Effective growth in Productivity don´t exist nowadays, in most countries.
  2. Positive outcome between, Real growth in employment vs Productivity, does not exists nowadays, in most countries.
  3. Most of the so called developed countries desperately need to renew their Work Force. (In my opinion) Countries need to have, more younger workers (will generate more tax to compensate the older and retired workers), more educated, language wise and skilled capacitated, alongside with diversity in cultures and knowledge's . But the way to achieve this in real time (meaning immediately) is to help and receive emigrants from other parts of the World. Most countries cannot decide between having more emigrants or being integrated into developed markets.
  4. The market crises of 1987 had almost no impact on the GDP, or in productivity.
  5. Market bubbles cannot be predicted by models.
  6. M2 aggregates are growing ever lasting and creating the conditions for hipper inflation. And (in my opinion) they are also creating the conditions for a melt down in currencies.
  7. Savings are lower than ever and current social benefits are in danger.
  8. A crises, more deepen and stronger than those that emerged up to this day, will happen. (In my opinion) In the near future it will be clear, because of The Reversed Sustainability Effect, that has been created and generated throughout the past 2 decades, because of the wrong policies applied before and during the crises.
End of the Notes about the analyses of the interview / statements given today by Mr. Alan Greenspan.


Drawing The Reversed Sustainability Effect, for a better understanding: 



So, about the issue on the tittle of this Post:

Question: What about now ... Is The Reversed Sustainability Effect already in place?

Answer: No. The conditions are in place, and the reactions of the central banks worldwide today and in the following weeks will deepen even more these conditions, but this ... this is not it. The reversed sustainability effect will happen and will become clear further more on the road ..., when it occurs and becomes clear, then, there will be nothing compared to what has happen in the markets and in the economy, until today.
When it happens, the reversed sustainability effect will be noticed by the following: Hipper Inflation, Currency melt down, Country default, Markets collapsing, and because of this, some economies worldwide will plunge and productivity will be extremely affected.

Question: Is there a way to prevent this?

Answer: Fore the time being and looking at the reactions worldwide and the policies that have been applied, NO.

Question: After it happens, can the world get's out of it?

Answer: After a long time of troubles and pain, worldwide, that will be more intensive in some countries than in others, YES. There will be a way to start saving the good things. Mainly, Countries and the Unions of countries will have a chance to look at way's to start taking care of the people and also of the real economy.

There are simple models that can predict the wrong doings to the real economy, that have been done currently, and this is what all governs and administrations around the world should be worried about. They should work for the benefit of the economy and the people in those economies.

For that to take place, a new mentality (Knowledge) should arise, and the old theories of the 30's and of the 90's should be abandoned, because they do not assure the future of the current economy, and they do not serve the people. They are currently only benefiting the ones playing in "the financial casinos" or benefiting directly from the financial services. Even the World Central Banks (Institutions) and most of the Banks (Institutions) are being terribly damaged.

An example of a simple model is presented in this Blog, here: AWS - Advanced Warning System

A current understanding of the reversed sustainability effect is presented also in this blog, here: The reversed sustainability effect and throughout this Blog.

Several analyses about the current economy, finance and currency worldwide are also available throughout the posts in this blog , also at the G+ page here, and in my personal blog here 


I only hope that when the Reversed Sustainability Effect becomes clear worldwide, that this will give the World a better chance to stop the ruining of the economy, of the finance and of the currency's, worldwide. This will enable them to change and then, they will be able to effectively run the real economy for the benefit of the real people.


About hope:





These are 3 different perspectives of the World. As you all know it would be possible to present thousands more, concerning life, nature, about richness or poverty, about history, or many others ways of looking at the world ...

Until today, independently of the challenges that we all face, or the crises that emerged, Mankind always finds a way to:

  1. Accumulate and apply the Knowledge that has been created
  2. Generate Value, in every service that as been provided and in every item that have been manufactured or produced.
  3. We always were able to organize our selves, into family's, communities, regions or countries, standing alone or involved into unions, throughout the World.


Thus, creating and improving our conditions of leaving in this world. It will be so again. It will be difficult, but we can do it again.
And, about all of the above, alongside with much more that makes us human beings, this we must learn to preserve and if possible to improve.

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