I agreed on item 1) 3) 4) 5) on your statements, which are to eliminate coruptions, build up strong banking and monitoring systems to make every thing transparent, and to implement real democracy. All in all, the real problem is that real democratic system is not
implemented in those areas, which caused all those coruptions in the financial systems.To say it clear, few people have full control of the whole nation's financial resources, and put the public's money into their friends', relatives' pocket, and as times go by, gradually destroy
the economy. So, those areas need a political revolution, to replace the current politicians which cause the current financial crisis. And we realize that those coruptions happened all the
times all over the earth, this is just human natures, i.e selfishness, once you have power, then
greediness and selfishness lead to coruption, even the US can't immune from , the difference
is in the US, the monitoring system is more transparent, the chance of corruption ic less than
other areas of the rest of the world, otherwise, we won't have S&L crisis in the late 1970s and early 1980s.
I am talking about the short term fix, which is for five to ten years, and if the basics is
not fixed, same thing will happen again in ten years.
The world economy is now linked together, and factories of each countries are over capacity, which means each country do not have a domestic market which is large enough to dijest
all products from domestic manufacturers, so we need an oversea market. Which also means
those countries with big population should have the capacity to dijest products from those
countries which have smaller domestic market , i.e populations, but advanced manufacturing
capability. In the past, US is the world only big market to absorb those products from overseas, which sustain a fifty years of prosperty, however as time went by, the US market
is getting saturated, and even the US manufacturers look for market overseas. Collision started from here. The Asian countries wants to export to US, and US wants to export to Asia. So, where is the merging market for the next fifty years ? China, India, Russia.. and
sometime in the next century ---> Africa!!!!
I think you quite understand how the credit card works, The credict card company issue
you a credit limit , say $30k, you can consume as much as you like within the $30k limit and
make a min payment every month, as long as you meet the min monthly payment , you are ok, and the debt just come with you for the rest of your life, then so what ????? Now, the IMF, and G7, and other countries just increase the credit limit to those S.E Asian countries
, as long as they make the min payment, things will be back to normal. As to the debt, that is no big deal at all, because the China, and India market will be an insurance to them . Example: more than 50% of the export of Taiwan now go to China, and it used to be more than 90% go to US, now it depends less and less to the US market, the same for Japan, Korea, Indonesia ...etc. So , the S.E. Asia can export themselves out of debt as long as
China , India continues its fast pace of economic development.
To resolve the deflation problem and increase the living standard at the same time, the solution is working smartly and less, let the computers, machine work for people, people
should enjoy much higher salary and have more time to spend so that the market can be
further expanded to absorb the additional products as a result of over productivity. My suggestion is :
1) cut rate to encourage consumption.(exxpand the market)
2) reduce the working days from 5 days per week to 3 days per week and maintain the same
annual salary, so that people have more time and money to spend.(expand market)
3) Completely automation to increase the output of the factories. (increase productions without additional need of manpowers).
The previous problem in the economy is :
1) economy over heat---> Fed hike the rate----> Consumers reduce spendings--->
Lay off ----> the situation getting worse, laid off people leave the market and tight their
belts make the situation even worse. -----> FED cut rate------> consumption increase
again -----> Companies increase production by hire back thosel laid off workers ---> economy grows again ----> economy over heated -----> The same cysle , over and over.
This is an economic policy heading toward the dead end, because the over production
issues ( shrunk market) was never resolved, and this policy just sacrifice the benefit of those small laid off group in the sociality to compensate those were not laid off, this is not a
policy to prosper together to let everyone enjoy the benefit of economy growth, i.e high
productivity.
As to the Asian crisis, this is just a short time phenomina, of course in Asia, people will go to the restaurant less as the uncertainity in local economy, as a result they will import less
apples, beef , red wine, liquars , those things they can do without. But for technology, which are used to increase productivity and competition for the future prosperity of the regional
economy will definitely continue. Once the engine is turned on again that export more steel, ships, electronic products, semiconductors, thn , Asian will continue going to the restaurant as
before, and they will start import beef, apples, cosmetics, red wines, cars, those items.
|
