IMF chief who has resigned, wants 30 country meeting to replace G7 meetings. When George Bush did the G7 meetings, they would just get together and have a mutual admiration society tea party. You have 30 small countries who had no economy to speak of, having a nice tea party, what could happen. The rational of IMF and its present chief is the future demise of the organization itself.
To reconstruct the world, after world war two, Americans did it two ways. The Marshall plan was used in Germany and Europe. The United States government financed all the European businesses by the land lease program. In Japan, General McCarthur failed to reform the Japanese economical system, and President Truman had to send a specialist, an economist, to Japan to restore the Japanese economy system. The Japanese system is based on Government financing the trading companies, the manufacturers and the banks. And adding the quality control system later made them the envy of the world in economical development. The south Korean system, after the Korean war, is based on Japanese system. The recession and depression in their economical problem is business profit. When there is none, no profit means total failure of the Japanese type system; no way to sustain government subsidy.
In America, the new economy is now based on profits and not government subsidy. So with obsolesense and replacement of products and services, the business cycle is gone. With profit incentives, the job growth sustains the economical growth. Quality control is just the guide lines of making bigger profits. Merger and acquisition is to combine best management to grow even bigger business, leaving the small business to smaller organizations. Such is the American new economy that there will be many more years of economical development in our country, better prosperity is yet to come. |
