Global Ecconomy

I see you have no category for economy this is the most import thing at this time of events of a world recession. I am now visualizing a federal world government but unlike EU or USA local governments in its states or countries. To my mind this would be the best system as EU shows a problem with a union based currency.

But let look at the world as we see it today, because of property devaluation it means that money seen on paper as mortgage value has shrunk. Property of course was supporting loans when banks called in the loans it caused bankruptcy and lack of money to be loaned out, many banks went out of business. its of course more complexer.

The problem is that there is not enough money circulating the global system. Governments are mostly in debt and employment has rose due to company down sizing.

The quick and easy way is not for governments to auction bonds that know one wishes to buy. But to get money quickly back into the global economy. Now by allowing governments to print enough money to pay off their debts and freezing currency rates whilst this process is underway. Keeping the value of each currencies unit at the rate when frozen. Will pump enough money to boost the world economy. this would need to be done in unison and monitored carefully and be a one of solution in this next decade. But in truth only a world government could achieve this or maybe United Nations?

Vote

81%

19%

Rating

Votes

Views

3849

Mark as inappropriate

7 Comments

Anonymous

9 years ago

share this... get more votes. it deserves it.

0 0
GD000001192

Canada | 9 years ago

You're not addressing the real issue at all, the problem is NOT that there isn't enough money, it's actually the opposite. The Federal Reserve prints so much US Dollars that it devaluates the world currency since close to 70% of the money in the world is in US Dollars.

We know what happens when a government always prints money to solve their problems, it's been tried countless times in MANY countries since it's the EASIEST solution to come up first. The results are simply disastrous : hyper-inflation in the economy until the currency becomes worthless. Now we're seeing prices of everything going up (taxes, oil, gold) because the real reason is the value of the dollar is going down.

0 0
AtomicLlama

Australia | 9 years ago

babelfish, I like your ideas, but please stop posting "Please read the paper work on the left hand column especially "About this site"
and "How it works"". It's kind of annoying.

0 0
MicahSchweitzer

United States | 9 years ago

I object because inflation is precisely what caused the recession. The United States' war in Iraq cost the U.S. trillions of our dollars, but direct taxes were actually cut at the time. Our central bank, incidentally a private institution, then printed more money to fund the war. The average cost of living has basically doubled since then. True, eventually wages adjust, but during an inflationary period, the savings of the poor and middle classes are eliminated. Really, inflation is the most dubious form of taxation. Since most other currencies compare or compete with the u.S. dollar, the world followed suit with this inflation spike.
We don't need inflation. Earth's governments need to balance their budgets, first by getting their currencies on a scarce standard, like a precious metal or their own populations, then by letting their peoples know how much their public services cost, then by cutting spending or raising taxes as their voters see fit. Once their budgets are balanced, they'll be able to pay their debts.

0 0
Anonymous

7 years ago

Thanks for the great info dog I owe you biitggy.

0 0
Anonymous

7 years ago

Thanks for wrtinig such an easy-to-understand article on this topic.

0 0
timothy.guillemette

United States | 6 years ago

I object because as others stated this would cause hyperinflation. Currently the only solution is to create more debt.. which is what the Fed is doing. But most of society, especially in the developed economies cannot take on any more debt. One world currency would cause capital flight to one or two countries, leaving the rest of the world in desolation.. this is what happened with the EU.. investment got extracted out of some economies (Greece) and was invested in others (Germany).

0 0