The Gravity would Change but the Global Financial Order not!

The Global financial system is so much inclined in the ways people think that it has become the untouchable constant function of perception of life so anything else suggested is considered heretic or even farther totally impossible and generally insane.

The “Status quo” principles are: (see: How Globalization affects Countries & Markets)

  • individual countries and global monetary quantities are directly connected to economic growth of a country’s economy;
  • the ways capital could be raised is through selling securities, borrowing or economic growth respectively “profit”;
  • deficit and national debt as a consequence of stimulating economy is the burden to Future generations;
  • this current Global financial order is the pillar on economic prosperity or else;
  • monetary quantities are correlating industrial production, because such industrial production adds the most to a country GDP;
  • industrialization is the only way for a country improvement;

Therefore, by deregulating markets business grow easier so Fiscal reserves could be filled up and National debts could be paid back and reduced.

(see: EU Economic Disarray; Why It is getting worst?, 21th Century Global Financial System of Market Economy )

When these “Status quo” principles are generally accepted Governments of Most Industrialized and Developed Countries are braking them and breaching them wherever crisis arises by stimulus packages and financial interference into the marketplace,  because it became obvious that the system does not work: how so:

· countries accumulate double digits deficit and consequential national debts when growth is in the single digits

· fiscal reserves even of the Most Industrialized and Developed Countries are getting short to maintain their arousing social and infrastructural responsibilities

· Progressively, more countries and individuals globally are deepening in financial instability and economies are deepening in fiscal impossibility to maintain socio-economic balance and “Demand-to Supply” balances.

· Not all countries and as a meter of fact very few countries could achieve the industrialization needed to maintain needed Fiscal reserves to meet their Social and Infrastructural responsibilities

In the Past such Economic imbalance on the “Demand-to-Supply” ratios, (they use to be “Supply-to Demand” ratios) were much less contrast then these are now-days because of the Globalization that tipped the industrial production Global balance. New “kids” on the block such as China added to the Most Developed Industrial Powers industrial production capabilities provoking massive exodus of industrial production and capital from them that finally brought fiscal shortages to even these Most Developed Countries of US, EU and Japan: shortages on their demand side; profitability, wealth distribution have become obvious when National Debt has become so high from Japan to Great Britain, to EU and US national debt is a curse and a system of life; (see: Greece, Spain and many more).

Another, fundamental factor that discounts currently “untouchable” system of thought is the Environmental catastrophe coming soon if the “business as usual” system of production based economics continues ruling the Global economies: either by distorting Earth by polluting it or destroying ourselves by exhausting Earth resources the end is pretty much on the same level. Industrial production based economics of “trickle-down” Capitalism has no release valves to respond to the needed Earth preservation, it is based on “profit” only and on a financial system relying on the self adjusting cyclical dialectic economics insufficient enough to destroy as all.

Thus, if the principles and status quos so well weaved in the production based economics and in all of us do not work to take economies out of recessions and in the first place preventing such recessions, if these could destroy Humankind could be by polluting Earth or by exhausting Earth recourses then the phrase “The Gravity would Change but the Global Financial Order not!” sounds more-like Don Quijote fighting wind mills in a very different and hostile world then a discussion trying to solve the problems of 21th Century.


The Global financial system represented by the Parish Club, World Bank, IMF, WTO currently acts more like a “lender” tracing deficit and national debts as a priority which instead should trace “Demand-to-Supply” Balance by acting more like a “controller” thus avoiding Recessions.

With the ongoing Globalization and rising Productivity, with the development of China and India on their vast potentials, with the Environmental catastrophe around the corner of history, with the constant fiscal shortages even in the Most Developed Countries and with the widespread poverty enveloping the world the System of Economics should change by accommodating these new developments and responding to the needs for sustainability and Environmentally friendly growth, but first, the phrase “The Gravity would Change but the Global Financial Order not!” must be well reconsidered.

Posted by Joshua Konov at 3:21 AM

Labels: developmenteconomicseconomyglobalizationmarket economicsphilosophyquantum economics