How Globalization affects Foreign Relations & Institutions

How Globalization affects Foreign Relations

 

In short the famous “It is the Economy stupid…” is becoming more like a motto reflecting international politics and remotely vowing how the Future foreign relations will look like. Relations based on purely economic interests of employment, international business and investment.

With the exception of a few still politicized countries of Iran, North Korea, Cuba and Venezuela in which politics runs economics and a few still ideologically motivated countries of Russia, Great Britain and Germany in which ideology runs economics the world over all has discovered that in the modern day Globalization the only thing left is the economy and that the new foreign relation of politics are more alike business such. In this context countries such Iraq and Afghanistan should be taken as ongoing archaic left over from the 20^th Century, however terrorism in its new form maybe considered a product of the new 21st Century and the way it should be dealt with obviously is the main issue of all. Hence, wars only most likely will not solve the problem of terrorism; as well US commanders discovered that their public relations, local development, improving life conditions and more economic opportunities for the locals in Iraq and Afghanistan are better weapons then the militaristic once, so what the people want is a better life: jobs, education, economic development thus the “terrorism” is a consequence of the inadequate development in these regions used by a few extremists to spur religious antagonism, so if these regions are lifted up from poverty to prosperity for the few extremists will be not left to much to preach.  

Thus most of people elsewhere want the same: a better life; to consider for example that the Greeks or Spaniards are financially irresponsible for improving their infrastructure, social policies, or boosting their personal income is incomprehensive and equivalent of blaming someone of trying to live better. People are all the same elsewhere, thus the poor are not such because of being lazy or the dying in Africa kids are not any less kids then elsewhere. Nationalism, ideologies and the Myth of ‘ WE ARE BETTER THEN YOU ARE’ is a pure probe BS of the Past: run by a few “warlords” and “masters of the universe” to show to the rest that even many problems exist here at home, there are some worst places and people elsewhere. In times of low productivity and weak technologies the system of ideology worked well to maintain “Social Stability”, however the Globalization and rising Productivity: high technologies, open boarders, and the Internet have created the industrial capability in Most Developed Countries added and the best implemented by China that Global industrial production power is capable to flood the world with inexpensive industrial goods, thus leaving many others in growing deficit and consequential national debt: fiscal shortages, lowering standard of life or genuine poverty.

Foreign relations institutions were serving their masters and their countries well in times of low Productivity and limited Globalization of a pro supply economic environment, but now because of the new arising spreading elsewhere Globalization, rising Productivity and the Internet these institutions role is to prompt economic exchanges and business activities, however the Internet has given much better then the Governments tools for businesses to expand these businesses global presentation making foreign institutions role as such obsolete. Unless the biggest countries of US, China, Germany, Japan, France and etc. have some reason to maintain their foreign governmental institution to fight terrorism and prevent from global instabilities the small countries should very well consider reducing their foreign institutions and stop spending precious resources in foreign embassies and worthless missions. Instead these small countries governments should concentrate of improving strategic industries; improving infrastructure and most importantly present to the rest of the world a realistic picture of their economies and markets, and because the pro-supply economics of Capitalism is changing into flexible pro-demand economics of Market’s “as it comes as it goes” governments should enhance their knowledge to manage in such environment and spend properly recourses to develop responding to these new conditions commercial laws: contract laws, personal liability laws to enhance Small to Medium Business borrow-abilities, and etc. The foreign relations are more like here at home including all people reach and poor, so small countries governments should stop putting shows in embassies and international worthless travel and start taking more seriously and financially responsibly their duties to their citizens.

© Joshua Konov,2010

I do not want to be a prophet but Discrimnation I wrote about makes its ways

Bulgaria in EU | August 20, 2010, Friday, France continued with its controversial deportation of Roma migrants on Friday afternoon, when 130 passengers boarded a charter plane, bound for Romania…. Rome: Problem is Many Roma Possess Italian Citizenship “As Italy is bracing to expel from the country all European Union (EU) citizens that had violated basic requirements for living in the country, the interior minister has complained that unlike in France, many Roma have Italian citizenship.” see http://docs.google.com/Doc?docid=0Ab7fduuwI_M3ZGZmdzc1OHFfMTI0Mm13OTk1cG4&hl=en

How Globalization affects Market Economy

The Relativity and Uncertainty of Market Economics

 Economics is a philosophical system of taking statistical data on individual technical indicators consequential to subjective conclusions: an example of such: Gross Domestic Product variations call % positive or negative growth while two consecutive quarters of the second call a recession. Although the GDP does not indicate the distribution of gained or lost wealth or many economic activities such as at home labor and any transactions that do not exchange cash. Other example is the Unemployment Rate The official unemployment rate (technically called U3) simply divides the number of people who are not working, want to work, and have been actively applying for jobs (defined as having applied to at least two different employers within the last month) by the sum of the people working and those defined as unemployed. Thus, lots of people who are unemployed by many reasonable definitions do not count as such in the official government statistic. Using the government’s own definition, workers who are discouraged or marginally attached to the labor market do not count in the official unemployment rate. There are different, broader, unemployment measures available, but they do not get the headlines.

However insufficient, the GDP, Unemployment Rate, and other statistical indicators are used to draw ‘at the moment’ situational picture on an economy that provides the Central Banks parameters to trigger Monetary, Fiscal or other Policies. When recession persists going even deeper into the red the actions take even very unorthodox actions such as Quantitative Easing, saving individual Banks, Corporations, extending Unemployment Benefits, etc.

What ‘modern’ economics lacks? – first the inability to call economic indicators: trigger flags into a system of relativity and uncertainty where ‘market tools’ must be used not based on believes or ideologies but on ‘counter’ or ‘pro’ cyclical pragmatic measures – parameters into an unstable market environment; and second, the prioritize on at the moment actual market tools to accelerate or prevent relative market developments. Let say that a market e.d. an economy is running into stagnation with diminishing demand: seemingly it must trigger pro-demand measures, or a market is running under strong inflationary forces: such should take measures to boost the supply driving market forces. The relativity of demand to supply or the way around is balanced by market equilibriums in which situation the market resistance is at it’s the least force. So to speak, when market tools are used as parameters on an ‘as it comes; as it goes’ approach triggered by ‘at the time’ market developments; such pragmatic approach may prevent the real economy from violent market variations.

The relativity of the real economy’s market developments is not unconditional because of the high uncertainty of economic realities; however, by isolating ‘at the moment’ developments then acting to smooth or accelerate these developments: let say, a market is running stagnation (deflationary forces) while the consumption/demand is indicated then the pro-expanding demand market tools should be used to steer higher employment, income, and consumption. The action strength will depend on the strength of the indicated variations.

Market Agents such as the Environmental Protection that is unconditional – thus any other market actions must comply with. Less demanding but not the least important are Poverty Alleviation; or Consumer & Costumer Protection, the Rule of Law in Business, and Insurance & Bonding that will help saving Earth, raise market security to allow SME and Investors lower rates lend-ability, raise the level of quality of business activities.

Market Tools as triggered Market Leaps through Direct Investment, Subsidies, Low rate Financing, or Social and Infrastructural Expenses, Sectoral Monetary Policies, Fiscal and Lending Policies, Prevailing Wages or just maintaining market equilibrium by using these Market Tools as Parameters under Uncertainty. Inflation/Deflation are fundamental Market/Economic Indicators that can trigger actions on the Demand or Supply Sides. Minimum Unemployment is down to Full Employment relying mostly on Small to Medium Businesses and Investors to steer enough business activity; however, governmental and other means for employment are feasible: balancing private employment. Some markets where the governments are more involved in employment could evolve into more private employment, other may follow the way around: ‘the means justify the deeds’; however, free entrepreneurship performs as best in market development and manage at best market equilibrium; the inflexible bureaucracies cannot compete private entrepreneurial organization such. There are market sectors that commonhold property is must to ensure fair common services, and the percentage of non-private employment will probably rise – the fiscal reserves that support such employment must also be flexible, sometimes not debt related but market demand is driven. Overall, to succeed full employment in a highly technologically developed and developing world the idea of National Debt should evolve into the ideas of protecting Earth Environment and alleviation of Poverty to support it, the entire market economics should be founded on two bases: first is the Micro –level that is directly market forces compliant and adjusted by the by competing market participants and second is the Macro-level that is not the only market adjusted: the appointed factors of Earth Protection and Poverty Alleviation will overwrite it, but also even the existing market forces could not let it self-adjust as it is seen by the 2007-9 Recession that required enactment of many counter-cyclical  governments actions such as the Stimulus  packages, the QE, the bailing of ‘too big to fail’ Banks. The Market Tools usage could be adjusted on Macro-level to eventually slow-down an overheating market by targeting individual market sectors (example of such interference is the way China cooled down their Real Estate in post-recession time by limiting lending access to 50% LTV on first property and prohibiting lending on a second property, also not allowing for the Developers to change prices from the previously listed ones. The targeted actions by the Central Banks should not be limited to Discount Rates or even Quantitative Easing but should go to individual sectors and fix the redundancies or shortages.

The ongoing Globalization and rising Productivity have put strong market exogenous forces over national economies in the 21st Century as seen it has prompted excessive national debt and rising inequality. The Transnational Corporation in manufacturing, financing, services have flourished under these new conditions by outsourcing and moving business elsewhere; in addition the China’s Industrialization and the Internet have aggregated these market processes of changing the pro-supply forces well handled by the economics of Capitalism into a pro-demand and pro-supply new forces ravaging many markets because the inability a new system of market economics be implemented.

To include these exogenous market forces along with the endogenous such of technologies and highly sufficient management, and the Earth Protection very expensive and uncompetitive means and the needed Poverty alleviation on a currently used Budgetary Economics is going to be impossible: if the whole economics is ruled by debt and budgetary approaches the many issues arousing from these 21st Century developments cannot be properly dealt, and therefore an evolution to a Market Economics adjusted to Inflation/Deflation must be apprehended. To overcome the headwinds coming from the new developments to stay on Austerity adjusted Debt economics is impossible by nature, neither all economies can industrialize to fulfill their Fiscal shortages nor by cutting on expenses can take these to some balance to the necessary investments to build the required infrastructure, full employment, stop polluting by focal fuels, old vehicles,  stop woodcutting, garbage disposal, invest substantial money into green energies and technologies. To succeed Market Development the Debt stigma cannot apply, the lending, financing, shareholding, are private issues based on ‘risk’ or ‘reward’ principles that must become national and international investment principles too:

How governments will handle these highly demanding new expenses? – Foreign Direct Investment, available other capital: Public or Private, the Quantitative Easing, the SDR issues by large Central Banks and International Finance Institutions are the one to provide and control proper investment and execution, even though, this is not going to change the current economic order incomplete it will create some very unknown market conditions.

How the government will make sure not promoting at the moment Inflation? – the Market Leaps are targeted environmentally friendly project developments that target infrastructure build-up, construction employment, maintain employment, other employment: double targets as could be seen; what such project must sustain is not prompting excessive Inflation and consequential diminishing employment: the complexity of making projections should include the scenario of having large manufacturers, banks, wholesalers and retailers be included in the project as auxiliary  filling the blanks to prevent Inflation, also a project should include green farming, tourism, apprenticeships, courses in management, finances, agriculture, to prompt employment and teach the locals to manage themselves – the Prevailing Wages, Residential Requirements, SME lending parameters are necessary too. Such project will employ in the beginning many foreign managers, instructors, teachers, and specialists that will provide the needed expertise but all mid-management, labor, support must be done by the trained locals in perspective all the positions must be occupied by trained local staff. The discussed project imply some underdeveloped markets with a lack of proper education and skills, however, when a Market Leap is done in a developed market the need for outside specialists could be limited.

Most developed markets may not need Market Leaps but just acceleration of the existing green energies projects; however, employment is an issue in these markets too, so to prompt business and employment many new approaches must be used that will boost SME activities, will create opportunities for all – meaning full employment that consequently will give more Fiscal power and revive the optimism and the desire to succeed. The motion, when created, will employ the positive energy of many skilled currently underemployed or unemployed people.

In details, the developed markets have many channels to shake up business, social and infrastructural expenses are not excluded as a market tool’ the Market Agent apply to these markets as well to developing ones in their entire powers; they are the foundations for higher market security that will allow low-interest lend-ability to small and medium businesses and investors, and establish high requirements for consumer and labor protection changing the ‘quantity’ development into ‘quality’ development. Under higher quality requirements more education, professionalism, is going to be required to compete, but better rewards will follow up. The globalizing marketplace will provide plenty of opportunities for highly educated specialists.

To ensure modest Inflation the developed markets artificially boosted Market Development should be done in a complex manner by engaging more diverse measures: from manufacturing, service sector, farming, tourism to all go green – protecting the Earth environment. The substantial capital needed such actions must come mostly through QE, but investors will get involved after the project starts. The commercial financing must be done through commercial banks on setup terms and subsidies (in the beginning) why letter the high security at the markets will make such low-interest rating market compatible. The Market development literally means developing markets: developed or developing by using Market Tools for targeted Market Leaps or accelerated economic activities under implemented Market Agents business environment. These projects differ from country to country and from market in a country to another market could be in the same country (example: South of Chicago and North of Chicago could be considered different markets: differing in education level, access to employment, safety, property values, opportunities for business development – even though neighboring, having the same currencies, language, etc even under GDP, Unemployment, and other current indicators the difference is substantial; thus to approach these two markets requires dissimilar planning, financing, and executing: the planning for North of Chicago will improve already developing green infrastructure, by vehicles replacement with electrical, solar and wind power generation, renovation of buildings aiming  isolations, finance existing small and medium businesses to expand, using fiscal breaks to leave more money for consumption, higher social pension, Medicare, helping for high education, schools, etc that much of the project could be financed by direct and indirect investors. The strong middle-class markets require upgrading to more business opportunities, green infrastructure, electric means of transportation, zero pollution.

Whereas, the South of Chicago is needed ground-up planning for a Market Leap closer to one in the developing than in the developed worlds formerly explained.

Marketism calls economies markets so the less advanced parts of an economy could be qualified into markets with their specifics that require individual planning and actions.

The governments involvement and interfering with economic activities or the control on business vary substantially from country to country as mentioned before. Markets like China have strong State Companies competing straight with private companies whereas markets like the US does not run State Companies and the competition is among private companies, markets like the Scandinavian have very strong social protection system with public Medicare far different than the more individual US such. These examples are to show how diverse the world markets are and therefore, the Marketism should use compatible Market Tools to their specific business activities, employment, environmental protection.

Market Agents are required by the need for markets unification, for marginalizing competition disadvantages to Small and Medium Businesses and Investors, and for higher market security. In the world of so much diversity the basic rules of Market Agents are more than enough to stabilize international business and financing to allow the proportionate usage of Market Tools to steer enough business activities, local investment, employment, alleviation of poverty, and finally, protection of the Earth environment by market means.

Up to now the tight budgetary leach on economies prevented or was suppose to do so from exacerbations in business and governments, modest recessions were supposed to cut dead branches of redundancies by painful but necessary self-adjusting. Then the 2007-9 ‘Great’ Recession hit the economy so hard that the multiple interferences by the Central Banks and the Government were necessary to prevent from total meltdown. The ‘certainty’ of the science of economics evolved into ‘uncertainty’ – so, instead, the measures (pro-cyclical) follow the trickle-down philosophy of the Capitalism, the ‘as it comes; as it goes’ counter-cyclical approach of using market tools as parameters were used. The Keynesian interference could be considered closer to the methodology used by the Central Banks means but the Quantitative Easing, for example, was far beyond it; the complexity of the interference into the economy went far unorthodox, but it saved the world economic order from destruction. The showed the level of ‘uncertainty’ prompted under the new global conditions that exceed the conceptions. After substantial amounts cash was infused by the Central Banks Inflation was predicted by the orthodox economics, however, such did not come: the exogenous forces more powerful than even huge quantities of money prevailed. How strong are these forces though? And if Inflation has evolved into chronical Deflation where is the turning point?

Thus from one side the Globalization and rising Productivity have been taking away the fundamental industrial jobs from another it has pushed prices and Inflationary pressures down. The ideas of certainty by letting these developments self-adjust cannot be considered practical. Example of sticking to the orthodox ideas was the European Union insisted by Germany: the weak results of a barely improving EU market are a good example of how such philosophy underperforms. Example for using more flexible economics is China that even though it had highly dependent on the export economy it gradually been changing by exploring QE, targeted stimulus, subsidies, on the supply as well on the demand sides; thus raising living standards and boosting consumption.

The question how to prompt the right market development by not triggering excessive Inflation in the most fundamental for an ‘as it comes; as it goes’ economics; the diversity of markets structures further complicate any setup system. Actually, there aren’t any possibilities for a ‘setup’ system – it is about using Market Tools as Parameters to boost business activities and employment while preventing excessive Inflation. In principle, as mentioned before, if Market Leaps are used these must be more complex having into account all sides of a market while balancing demand to supply. The excessive capabilities of the Transnational Corporations to expand global production, financing, outsourcing, and moving are preventive valves to short term inflation; in a longer term, the steering of market competition on micro-level could self-adjust, on a Macro-level prompt action to cool overheating market sectors must be preventively used. The game economics cannot comprehend the complexity of data from endogenous and exogenous perspective to set up a system working for the appointed diversity in market varieties, only based on parameters that slow or accelerate certain market sectors the system may localize and address effects and consequences for a market, particularly in a short term; in a long term for a market that has overgone market leaps or targeted business activities boost the micro-level market competition should let such market self-adjust business activities; the interference on macro-level should boost environmentally friendly business activities in any possible varieties and if needed to use Social expenses along with Subsidies to maintain full employment, that is considered paramount by Market Economics.

The full employment of Market Economics is not in the 2-3% level but in the single 1 %. To have such high employment is the target: in less developed markets such employment consists of fewer advance jobs but yet giving the individuals the ability to maintain normal life to the local standard of living. It is obvious that the most developed markets will have more access to high education and high-tech jobs, at least of the beginning of such global market development. Industrialization is not considered by Market Economic as the way to Global Markets Development – the Market Agents consist strict Environmental, Consumer, and Labor Laws thus not giving to the Transnationals the initiative of deregulated markets. The non-industrial market development is the most fundamental difference between Market Economics (Marketism) and Capitalism. The artificial Market Leaps and targeted Projects which are not self-adjusting on a Macro-level are the second big difference – in this case, the Environmental Protection targeted by Market Economics overwrites the Debt controlled self-adjusting Capitalism.

Market Economics I.e. Marketism is based on free entrepreneurship as a vivid force for global development; the Market Tools use many artificial approaches such as Subsidies but on Micro-level the market competition is ruling, thus the finance institutions and governments are the ‘invisible hand’ to promoting business activities, not the overhand of making business or money. Freedom of capital flows, labor, recourses, private ownership, freedom of speech and ideas are paramount for Market Economics to succeed in the long term.

Joshua Ioji Konov 2016

Marketism i.e. Market Economics uses environmentally friendly approaches to steer business and employment of democratic societies that consequences into poverty alleviation and middle-class growth on a global scale. It is founded on the existing principles of Capitalism, however, it changes the shady ‘easy’ business into strict law of business to deleverage the inequality of market competition to raise ‘market security’ for the small businesses and investors lend-ability that principles differ from the currently used economics.

If Market Economics accepts ‘uncertainty’ as an ongoing and growing market (economic) development – product of the ongoing exogenous for individual markets (economies) forces coming from the ongoing Globalization, rising Productivity, Chinese Industrialization, and the Internet – to manage such ‘uncertainty’ an ‘as it comes; as it goes’ approach is needed that could be only achieved if market (economic) tools are used as ‘parameters’ to prevent the global marketplace from exasperations that could bring upheaval.

The ‘market agents’ are status quo necessities required for raising the ‘market security’ by marginalizing the existing inequality in current market competition – how ‘small and medium businesses and investors’ are affected by the business laws and conditions in comparison to the ‘large businesses and investors’. For the ‘market economics’ to enhance ‘capital transmission-ability’ and thus boost business activities – employment and fiscal abilities – the acceptance of more fair ‘market agents’ is paramount: enhanced business, liability, contract, environmental, consumer protection, bankruptcy, insurance, bonding, and labor laws will raise ‘market security’ allowing lower rates of lending.

However, the ‘market tools’ are used as ‘parameters’ to balance market equilibriums in synchrony with the ongoing deflation/inflation forces in the real economy – flexible capital infusion through FDI but also through Subsidies, Low-Interest Lending using ‘market leaps’ mostly by developing alternative: energies, tourism, and farming should go global. Social, educational, research and development, and infrastructural expenses, prevailing wages, and etc are also such ‘market tools’,

To save Earth the alleviation of poverty is necessary; however, achieving it not through the industrialization of the present Capitalism but through targeted ‘leaps’ of diverse environmentally friendly businesses of the Marketism (Market Economics).

The Marketism will work under high ‘market security’ with enhanced ‘market agents’ whereas the ‘market tools’ are used indiscriminately in comparison to the ideological approaches or current budgetary economics – the debt issues will resemble the individuals/businesses system of lender/debtor approach in which governments and countries will have less intrusion in economics being more on the controlling side than on the capital transmission such – Commercial Banks and International Financial Institutions will approach directly markets thus reducing corruption and politically motivated investment of the Presence.

The ‘parameters’ are flexible in nature: some on the supply side such as targeted subsidies and low-interest business financing another on the demand side such as social, infrastructural, educational, prevailing wages, and etc expenses. Balancing ‘market equilibrium’ because of increasingly relevant exogenous market forces will be targeted through market sectors ‘parts equilibrium’ than the currently used ‘general market equilibrium’ – thus monetary policies will not work by varying discount interest rates of the Central Banks but by expanding or reducing individual market sectors lending rates and/or fiscal initiatives. If markets are taken as ‘demand to supply’ (not to be mistaken with ‘supply to demand’) places for business competition the long-term ‘market development’ depends on the relative ‘stable’ market environment that is only possible by mitigating the excessive market/economic fluctuations through using the ‘parameters’ to prevent ‘big waves’ of excessiveness – the market forces on sector/partial level – natural to the market competition are the best ways for keeping ‘marketing equilibrium’; however, the fierce variations experienced in the last 2007-9 Recession lesson inquire active usage of these ‘parameters’ to prevent such harmful consequences of a ‘as it comes; as it goes’ economics.

Joshua Konov 2015

SEE “Market Economy under Rapid Globalization and Rising Productivity” http://ideas.repec.org/p/pra/mprapa/48750.html

How Globalization affects Market Economy

If a Market Economy is considered the balance between Demand-to-Supply (in the currently used Economics it is Supply to Demand fitting the solution concept of Nash Equilibrium ) for goods, services, resources and employment, the most recent changes of ongoing Globalization and rising Productivity have prompted, boosted and accelerated its role to some new levels never experienced through history by the inclusion of some huge marketplaces such as China, India, Brazil, Vietnam, and the expanding EU and by the rapid industrialization some of these countries are succeeding. The improving high technologies in manufacturing and communications, the Internet and the open borders trade, the open employment policies in EU, the high level education in India that give medical doctors and software specialists knowledge and skills to compete in US, and many more make the Global marketplace a common ground for competition well beyond any imagination in the past. These processes show the incredible vitality of the supply founded economics of Capitalism to fill any demand wherever and however such occurs in the world. Hence, Market Economy is in its apogee, perhaps, only under the increasing sustained pace of economic development.

Many economists associate Market Economy and Market Economics with the Supply to Demand trickle-down economics of Capitalism, and almost no one can even imagine major changes in the system. A system on which the regional and global lending is founded on relatively high-interest rate and relatively short-term payoff that could well help individuals and businesses live through short-term economic turbulence, approaches that work very well when the term of such turbulence is short that brings the economic activities back to normal then the borrowers might payback and swim through. The supply founded Market Economy in theory self adjust economic turbulence and thus even improves the overall social and business environment by cutting off dead branches of overproduction, excessive financing, “artificial businesses”, crowded administration, and thus improves economies and marketplaces. This is the magic of the self-adjusting Market Economy of Capitalism.

However, many countries discovered that Market Economy, as explained by trickle-down economics, does not support best development and many business regulations and laws, and tax brakes and social programs are added to the powers of the Market Economy to distribute and redistribute wealth, to create jobs, and to balance market equilibrium. Powerful socialization and governmental involvement into financial and business market operations prompted by the last Great Recession had more governments more involved in the Market Economy trying to save their economies from collapse. By pouring massive capital into financial institutions, or by taking over large corporations, or by implementing more social and employment generating programs the governments interfered with market forces and replacing such with vengeance.

Market Economy associates with a few indicators:

• the free flow of goods and services;
• the flow of free capital and trickle-down concentration of capital
• return on invested capital;
• free moving and outsourcing of manufacturing that grew up into services and financial sectors;
• large intercontinental corporations the main source for employment and the following fiscal reserves;
• free employment marketplace based on supply and demand;

Thus, the goods and services in a marketplace under the pressure of supply and demand balance prompt employment, whereas financing and capital being private or public, or both accelerate the spirals of economic growth and development.

In the modern-day Global Marketplace, the Market Economy is global too, where forces of demand-to-supply work globally and goods and services from one side and demand for such from another should prompt employment and supported by crediting, financing should accelerate growth and development.

In a pro supply marketplace, currently used instruments of economics, it would be nothing wrong with this picture; however, the conditions in the global marketplace of China’s and constantly rising Productivity prompted substantially different motors to keep up a global balance. In case the pro supply to demand marketplace is in a progress to a pro-demand-to-supply such, the distribution of wealth which always has been a minor problem for economic growth even in the opposite prompted by trickling-down such growth is becoming very counter-productive. Under these new economic conditions, such “stoppers” growth and development as Social and Infrastructural expenses that prompted Inflation and market instability, in the past, are becoming more like a balance to rising unemployment and lack of growth in the present. In addition, the “shady” business practices of the past that prompted rapid growth are becoming more like a burden of the present, which instead of helping SME are making them not lend-able, while SME (small and medium enterprises) are the main still in place employer. Same with the financial system of speculative banks, exchanges and financial institutions, that use to help the trickle-down capital to concentrate and such boost business, in the past, now these are becoming more like an extra burden to the small and medium investors and the middle class. By taking away 401s and 501s and not providing them with so much-needed ROI (return on investment) that could be one of the free economic vehicles for wealth distribution and redistribution of the present.

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Companies sign secret tax deals with Luxembourg: report

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The industrialization of the past that built-up the most aggressive economic growth and development with prosperous middle class of the very developed economies of North Americas, Japan and Western Europe may not be successful anymore to perform.

———————————————————————————————————————————————————— Can Service Be a Growth Escalator in Low Income Countries? It has been argued for more than 200 years that economic growth is associated with the manufacturing sector (Baumol 1967, Dercon 2014, Gelb 2014, Kaldor 1966, Rodrik and McMillan 2011, De Vries et al 2013, Winters 2010, UNIDO 2009). Services have been considered non-tradable, menial, low productivity, and low-innovation (McCredie and Bubner 2010). The East Asian Tigers are the classic success stories about how the conventional path to growth goes through industrialization.  However, this conventional path to development seems to have hit a roadblock in other regions, especially low-income countries in Africa and South Asia. Indeed, several high-level reports on Africa—the 2014 African Transformation Report, the African Union’s Agenda 2063, the African Development Bank’s long-term strategy, the UN Economic Commission for Africa’s 2013 report, and UNCTAD’s 2012 report—have all raised concern about limited industrialization and technological progress. Indeed, in many African economies, manufacturing—the sector that led rapid development in East Asia—is declining as a share of GDP. The worry is that without a major transformation, Africa’s recent growth spurt may soon run out of steam.  ————————————————————————————————————————————————————

 The high technologies are limiting needed manpower in manufacturing, China is becoming increasingly industrial superpower able to fill any demand for industrial goods, whereas industrial production is either outsourced or moved already elsewhere. However, under the currently used economics industrial production adds the most to any country’s GDP (general domestic product); thus when some highly industrialized economies as the US are losing their abilities to support industrial growth for the rest of the world of underdeveloped or developing countries with very few exceptions are losing any probability to start-up such industrial production, indeed.

———————————————————————————————————————————————————— Technological changes have made manufacturing more capital and skill intensive. So, it is creating fewer jobs. Some form of pre-mature deindustrialization seems to have set in (Rodrik, 2013, Subramanian 2014). ————————————————————————————————————————————————————

Environmental changes caused by industrial pollution and the exhausting Earth resources are becoming more of pressing issues with which all countries must promptly deal. These are becoming more of economic issues than even the rest because it is obvious that these issues affect any economy and the global market place directly. E.g., the high technologies for renewable energies are quite expensive, changing old polluting autos is expensive too, i.e. the Earth pollution, the deforestation going on in any poverty rotten country of Eastern Europe, Africa, South America are affecting the global environment in a progressive harmful overall.

Thus, if the changing market environment brings new issues and developments than the modern world must deal with appropriately. The economics should change too, to accommodate all the above new developments. Economics of Marketism being able to abstract all the best from the Capitalism should be implemented promptly, because under the arising conditions only another alternative is massive socialization and government take over, and such for sure would not bring prosperity to no one. Bureaucracy, diminishing liberties, dependence on social security could not balance properly market demand-to-supply, as the history has shown, but free entrepreneurship and personal freedom must be saved then the appointed new arriving economics issues must be dealt promptly and properly with.

New market economics is about low-interest lending and subsidizing, because under the new conditions the recessions are not self-adjusting and short in time, therefore any high-interest lending is not feasible instead financial instrument (low-interest loans and subsidies) should prompt employment and SME activities for which as written above should be supported by higher “security” (by enhanced business laws, regulations, financial market regulations, risk management personal liability). Hence, financial instruments should prompt growth by using monetary and fiscal initiatives on a lower interest rate and subsidies the “old” system of national and global lending must be moderated to these new conditions. The World Bank, IMF, WTO, and the “New Development Bank” (NDB) (added to 11.6.2014) should promote growth on a global scale by using these new instruments and by changing their role of general lenders into general controllers. The main issue under these new conditions is for these institutions to use monetary and fiscal quantities to balance the global market demand-to-supply “as it comes: as it goes” approach of the Market Economics’ Quantum Factor. The market agents and tools are more as “parameters” in an attempt of preventing economic turbulence than the setup of chaotic self-adjusting instruments to prompt productivity.

The market economy of the 21st Century is a vivid fluctuating development dealt on a practical operational basis. Market economics is statistically formulated Probability Theory’s way for using economic agents and tools as parameters balancing market demand-to-supply and dispersing negative economic buildups.

Hence, the Globalization affects Market Economy by establishing new conditions of a demand-to-supply marketplace that require changing the ways economic instruments are used from the ideological approaches of Capitalism to practical approaches of the Marketism.

© Joshua Konov,2010

The Market Equilibrium Trend changes from Supply-to-Demand to Demand-to-Supply Ascendancy

In number of articles, I presented the theory of Market Economics as based on the conception of the tipped-off, from a Supply to a Demand-driven Global Market Trend to a Demand-to-Supply Trend that was prompted by the ongoing Globalization and rising Productivity, which new Trend is consequential to the improving Technologies, the China’s Industrialization, the Outsourcing and Moving of Manufacturing, the Internet and etc developments that have accelerated these processes for the last 20-25 years. This article uses available data and respectful papers to prove the validity of such a conception. And, brings upfront the necessity of comprehensive assessments and the needed changes in Economics to meet these new challenges. The beginning of the 21^st Century showed a tremendous effect, technologies, and globalization has on the concentration of industrial production into a few players globally.

In number of articles, I presented the theory of Market Economics as based on the conception of the tipped-off, from a Supply to a Demand-driven Global Market Trend to a Demand-to-Supply Trend that was prompted by the ongoing Globalization and rising Productivity, which new Trend is consequential to the improving Technologies, the China’s Industrialization, the Outsourcing and Moving of Manufacturing, the Internet and etc developments that have accelerated these processes for the last 20-25 years. This article uses available data and respectful papers to prove the validity of such a conception. And, brings upfront the necessity of comprehensive assessments and the needed changes in Economics to meet these new challenges. The beginning of the 21^st Century showed a tremendous effect, technologies, and globalization has on the concentration of industrial production into a few players globally. http://wp.me/pOZgl-fw

© Joshua Konov,2014

Joshua’s First Law of Market Economics

“If a House needs Painting and a Painter is Available: Market Economics should have the House Painted and the Painter Employed” By using an “invisible hand” (could be private or/and public investment; targeted subsidies or/and fiscal and monetary initiatives) a house that needs painting gets painted and a painter who needs employment employed: the Demand is ‘the House’, and the Supply is ‘the Painter’.

Having such done without exceeding the targeted inflation/deflation boosts ‘entropy’ to naturally evolve into ‘equity’ of a seasoned Market Development made possible because of the ongoing globalization and rising productivity. While an ‘as it comes; as it goes’ system of economics is used to prompt business activities. Such an approach differs from currently practiced economics by not being budgetary constrained, but tagged to the inflation/deflation variations. ^Market Agents* for the First Law’s Realization and Maintaining:

Demand	Supply
By-Sectors Monetary Policies in Lending Consumer Protection Laws Environmental Protection Laws Insurance Laws Education  Infrastructure on Projects and Investment Social Policies (including: Pensions, Social Security, Unemployment Benefits, Medicare, etc.)	High Market Security High Education Research and Development Unlimited Liability Corporate Laws Business Contracting Laws Apprenticeships Intellectual Property Laws Bonding Laws

The level of the Market Agents*’ implementation in an economy will also give the ‘J Factor’ deviation which varies from ‘-2 to +2’ when -2 is lack of such implementation and +2 is completed implementation, thus if for example 4 is the invested capital in the project in a functioning economy 4 is multiplied by the ‘J Factor’ to give the gained ‘equity’ or if it (the invested capital) is done in a dysfunctional economy it adds to a loss. Example of again: 4 x 1.25 = 5 (the gained amount is 1) Example of a loss: 4 x 0.75 = 3 (the lost amount is 1) So, when ‘a house is painted’ and ‘a painter is employed’ the Return on Invested Capital in the Project could vary emulating the level of Market Agents* implementation. The ‘J Factor’ accumulates and projects different kinds of return for the effect an investment has on the economy/market: the ‘equity’ value added to such market is not necessary cash related, it could add to the market value of such property, to the consumption by the ‘painter’ resulted of received salary, and to Fiscal gain from such project;However, plus the Market Agents* there are number of Market Tools** that must be used as Parameters in an ever-fluctuating marketplace to prevent from sharp market fluctuations – such as the one that brought the 2007-9 Recession – which is a subject of an in-progress Quantum Economics Research. In a well-developed market with highly implemented Market Agents* the Market Tools** is very sensitive to manage variations and the market forces adjust such fluctuations. But, proactive actions in case of substantial fluctuations are necessary; as well a prevention system is required.

^^Market Tools** used as Parameters to manage Consistent Market Development (Project or Sector Targeted):

Demand	Supply
·      Fiscal Expenses·      Monetary Subsidies ·      Insurance Expenses ·      Social Expenses ·      Infrastructural Expenses ·      Educational Expenses	·      Fiscal Breaks·      Targeted Inflation/Deflation Prevention Interest Rates ·      Lending Rates ·      Borrowing Rates ·      Bonding on Market Prices ·     Access to Public Financing

 The Joshua’s First Law of Economics allows an expanded if not full employment when properly implemented. Such is made possible by the exogenous forces from the Globalization and rising Productivity of a technologically advancing world. There are possibilities of both inflation and deflation to be used for accelerating and maintaining long-termMarket Development that differs from currently considered limited-inflation driven Economic Growth. (A subject of another Research) Joshua Ioji Konov, 2014

Joshua’s Second Law of Market Economics

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There are a few ways to finance Demand:

• Investment
• Low Rate Lending
• Fiscal Initiatives
• Subsidies
• Social (Including Social Security, Pensions, Education, Unemployment Benefits, etc.) Expenses
• Infrastructural Expenses

Whereas, the returns vary from straight return on the Investment to built in the market equity; the higher Market Security lowers lending rates and the return on the invested capital. The Monetary Policies on lending, Environmental Protection Laws, Consumer Protection Laws, Business Contracting Laws, Intellectual Property Laws, Personal Corporate Liability, and the Insurance & Bonding Laws guarantee Environmental Protection and proper Business Practices, therefore, higher than zero ‘J Factor’. Market Economy under Market Development works mostly in low-interest rate monetary environment. Any ascend of Market Development increases Consumption, lowers Unemployment, and replenish Fiscal Reserves; it is Seasoned Entropy and Equity’s Growth. The Invested Capital goes through ‘the House’ to ‘the Painter’ in materials, equipment, and proceeds; it adds to the market value and requires more goods, services, education, and improved infrastructure; it gives opportunities for development of many economies now undeveloped and impoverished. Current globalized marketplace and ever-rising productivity have the manufacturing and organizational potentials to offset excessive inflation/deflation in a way never experienced in history that made possible the Second Law of Market Economics. Joshua Ioji Konov, 2014

Joshua’s Third Law of Market Economics

 

“If the capabilities of the Market Economics are not explored and used globally under enforced Environmental Protection Laws and the rest ‘J Factor’ Laws & Practices the Earth’s Environment is to deteriorate and the inequality is to rise to the points of no return bringing Environmental Destruction and Global Social Unrest”.

This Third Law is consequential to the First and Second Laws and conclusive of the market imbalances that overwhelmed the global market with the 2007-9 Recession, the sluggish recoveries, the rising inequality between rich end poor: countries and individuals., the growing radicalization, discrimination, and social impatiens. Why inaction is considered futile? – Answers come to:

1. The Globalization and rising Productivity diminishes the adequacy of pro-supply Capitalism to manage long-term economic growth, as done in the Past.
2. The Internet and other communications bring to the world open communications and information.
3. And not the least, the Global warming caused by pollution and underdevelopment calls for immediate action for eradicating poverty that makes people destroy natural recourses as woods, drive old vehicles, dispose garbage elsewhere, and alternative energies inaccessible.

 

Capital – Investment, Debt, Employment to Market Equilibrium before and in the 21^st Century

market* – equals – economic, economy, macroeconomic marketplace demand^ – equals – income, macroeconomic demand market development** – equals – economic growth

In the currently used Economics, the employment is still considered as a market consequence to a natural investment of capital with rising productivity, whereas tight monetary supply keeps a “hungry” pool of unemployed making them under pressure to comply with the market* driven supply-to-demand labor and otherwise market*, therefore, a full employment is considered as counter-productive for the market* growth to be maintained, moreover, the inflationary forces of an over-demand would be sustained. The Economics of Scarce Resources of any time before the 21st Century with relatively less developed technologies, limited globalization, political divisions, etc (the rest of the points will be given in later) had worked in proper for such successful Capitalism by the markets* of US, some EU countries, UK, and Japan.

Then the most developed markets* had used their mostly manufacturing capabilities empowered by the best at its time technologies and well-developed labor market to dominate on a less developed, struggling to improve global market*.

However, the 21^st Century has brought a few market developments that are new by nature to affect the real economy: developing and undeveloped markets* by tipping off the supply-to-demand market pressure into a demand-to-supply such.

• Ongoing Globalization – sharply expanded by the end of the cold war.

• Rising Productivity: accelerated by the Internet.

• China’s Industrialization and WTO membership.

• Transnational Corporations’ Moving and Outsourcing of Industrial Production from the Developed Countries.

• Capital FDI mostly through the Transnational Corporations.

The 21^st Century came with very high productivity and large pool of capital to a globalized market* taken literally by the Transnationals for a ride; with the exception of China, which well run market* policies boosted its internal market demand^ to properly capitalize on its long-run trade surplus: Stimulus packages into Infrastructure and targeted less-developed (internal) markets*, Fiscal breaks to targeted market* sectors and less developed areas, to SME (Small and Medium Enterprises), the usage of State-owned Enterprises to lower unemployment and raise salaries; or of Germany, which highly-competitive export oriented manufacturing kept it afloat in times of the 2007+ Recession and Post-Recession times to not accumulate excessive National Debt; or of a few markets* such as some of the OPEC countries and Norway e.g. The rest of the world has gone through the deepest 2007+ Recession followed by slow Post-recovery, increasing inequality and national debt, declining middle class, high unemployment, and most important: the over all lack of vivid market development** that could be improving the global market in environmentally friendly ways to provide to the majority a sustained probable access to employment and the related goods and services. The austerity measure that followed the ongoing theory in economics is pro-cyclical by nature, the trickle-down philosophy of lower taxation, the subsidies particularly in the EU: all prompted inequality lowered the market demand and established conditions of market imbalance that policies resulted in their worst in the most of the EU markets* slum, indeed. Casual of high unemployment, deficit, longer-term recession. What the US, UK, and Japan did through Quantitative Easing, Stimulus Packages, Fiscal measures generally counter-cyclical measures have been avoided by the EU, and therefore, it could be said with certainty that these market* policies have helped these markets* to keep however sluggish market development** following the 2007-9 Recessions (2009 is added to these markets* performance while the EU is not included). With certainty the more active policies with a consistent long term the better performance e.g. China tops them all with very proactive and consistent market policies, Japan follows with the Abenomics in action whereas the PM Abe holds firm powers, the US and UK follow less successful casual of using unorthodox methods more-like preventive as post-recession ones than proactive “as it comes; as it goes” market* policies, then finally it comes the EU with the most rigid orthodox market* policies based on deficit reduction and austerity measures that resulted in prolonged recession up to the end of 2013, high unemployment and slow recovery. Most of this information is supported by reliable data sources in “The (not so) Unconventional Monetary Policy of the European Central Bank since 2008″ | Read more at Bruegel The global financial and economic crisis forced major central banks to act swiftly and to innovate to avoid a free fall of their economies. This paper reviews in depth the measures adopted by the European Central Bank, and compares them with the ones adopted by the Federal Reserve and the Bank of England since 2008. The ECB has been very active since the beginning of the crisis and its actions helped the financial sector to avoid a complete meltdown. However, the ECB adopted measures that were mainly directed at ensuring the provision of liquidity and repairing the bank-lending channel, through changes to its usual framework for the implementation of monetary policy. By contrast, the Fed and the Bank of England quickly pursued unconventional monetary policies by implementing quantitative easing programmes that appeared to have a positive impact on financial variables and also on the real economy. Today, the ECB is confronted by inflation well below 2% and has reacted by implementing a broad package of fairly conventional measures. This analytical note pleads for the ECB to implement a large-scale asset-purchase programme and makes recommendations about the design of such a programme.

The utilization on the conclusions made by the previous section of this article clearly shows that pro-active market* policies by a government or governments bring better results to more consistent Market Development, whereas inactive policies or ones based on the orthodox economics prolongs recessions and slow recoveries. However, contrary to this conclusion: in different levels all governments lack business sense and flexibility to manage economics, whereas populism and ideological polarization, mostly in the plural democracies, add substantially to the governments’ inconsistency in their market* policies, and it could be stated with surety that governments could be blamed for their offhand deregulation policies particularly in the financial sector that prompted the 2007 Recession; therefore, to rely just on the governmental market* intervention will be incoherent.

Second, the governments are not proficient enough to maintain adequate market* activities with low unemployment and underemployment, thus bringing fiscal shortages and rising social expenses and inequality.

The success of the most developed markets with the exception of EU to wrestle the 2007-9 Recession is real, but it was necessary because the system of economics well supported by the governments themselves was not proficient enough to do not allow it happening in the first place? The possible prevention was not activated whereas the needed reforms were not implemented on time.

The expectations of a shorter and milder market correction managed by the self-adjusting cyclical powers of Capitalism did not work it out?

Therefore, when leveraging the positive to the negative effect of the governmental involvement: it appears the governments’ intervention was necessary, and when for the future: if the system of economics does not succeed to prompt enough business activities the governments will be the only saviors by using total market interventions?

What Capitalism misses under the ongoing globalization and rising productivity to manage market equilibrium is the ability to properly use market tools to steer enough business activity matching the needed demand; unless in long human history, when the supply was the ruling market element alone with always boiling inflation; however, under the new conditions, the demand alone with ever pushing deflation is that issue. Therefore, deficit and national debt alone with inequality are on a rise, the globalization has had allowed large transnational corporation to access inexpensive labor-pool, low taxation, lack of consumer and environmental protection…. for the few large transnational corporations and large investors under such conditions the system has performed well, but for the many it has not had at all: declining middle class, high personal debt, unemployment and underemployment….., expanding governmental market intervention to prevent from total collapse in the recession time, and in attempts to boost growth in post-recession time.

What distinguished China as the best performing market of the all developed ones has been the combination of social distribution well inherited in Socialists’ ideologies, combined with active market policies, however, even the Chinese policies and performance has been and still are the best, under the conditions of the very developed US, UK, EU and Japan on a global scale if their system of economics is enhanced by using more proficiently the variable market tools the results could be very advancing, indeed. What China has been and now Japan is following an “as it comes; as it goes” flexible economic policies adapting the ongoing and upcoming market* realities; policies that have been highly recommended by all my articles.

However, even recommending the governmental involvement as an “invisible hand” to boost and maintain market development** particularly into environmentally friendly energies and industries, for such policies’ longer-term market equilibrium some definite changes and enchantments are necessary: thus whereas the current Capitalism relies on the large transnational corporations to “export” development under the conditions of shady business; lower taxation, environmental and consumer protections, the so-called Market Economics relies on Small and Medium Enterprises to steer business activities, and thus prompt employment and Fiscal stability whereas a strict rule of law in business; enhanced environmental and consumer protection laws are considered as preconditions for marginalizing the unfair market* competition and thus raising their market* security and lend-ability. The pro-active and counter-cyclical governmental “invisible hand” is considered necessary to keep deleveraging wealth inequality through social redistribution; however, the usage of the market forces for maintaining market equilibrium is paramount thus imbalances are prevented. Moreover, a system of probability in economics when economic tools are used as parameters is also necessary for succeeding such relative market equilibrium, because the mathematical principles would not work in such a complex market* environment. In my works the so-called Quantum Economics i.e. Market Economics is a foundation for making possible the rest of the market* approaches be implemented without causing major market* upheavals. The “as it comes; as it goes”’ economics could only logically work if Quantum Factors are used to leverage or deleverage markets*’ buildups when the needs arise and my works use such approaches to set up a market* system of economics called Market Economics. System that peaches for full employment boosted by market* noise of a relatively fair market competition supported by targeted investment national and global into environmentally friendly industries and products, and carried on mostly by small and medium enterprises and investors, whereas the large businesses and investors are not discounted in any way: in the opposite their role is substantial. Social and Infrastructural expenses are not considered just expenses anymore, but partial equities used to leverage the market variances: as market* tools, indeed.

The Market Economics comprehends ongoing globalization and rising productivity as main motors for market development by environmentally friendly approaches on a global scale in an interdependent and interconnected world. It is not a Budgetary and Scares Recourses Economics, even so, market competition on micro and macroeconomic levels will comply with such economic principle, however, on a larger scale neither budgetary nor scarce recourses as economic principles are considered bound. Capital and Debt are considered secondary to Environmental Protection and Market Development whose are attached to the Inflation/Deflation instead. Market* tools are used as parameters to maintain full or close to employment when protecting the Earth environment, Globally.

Joshua Ioji Konov, 2014

Poverty and Pollution

How Inequality will destroy Earth!

 The tight lenders leach on the poor undeveloped countries creates hazardous issues that harm the Earth environment and potentially will destroy it. The use of coal and wood for heating, the driving of old vehicles, the garbage disposal and water contamination, the relentless woods destruction relates a lock of market i.e.economic development;

Mongolia is the world’s most polluted country and also home to one of the world’s most polluted cities — Ulaanbaatar. The country’s main sources of pollution are its traditional coal-fueled stoves and boilers used for heating and cooking, as well as congested traffic and old cars. Heating is essential for the survival of its people for about eight months of the year. The country uses everything from coal, wood to refuse, such as black tar-dipped bricks and old car tires to fuel stoves and boilers.[ http://www.cnbc.com/id/44781282/page/11%5D Neither of the top 10 polluted sites are in the U.S., Japan or western Europe. However, a lot of the pollution in poorer countries has to do with the lifestyles of richer ones, noted Stephan Robinson of Green Cross Switzerland—for example, a tannery in Bangladesh that provides leather for shoes made in Italy that are sold in New York City or Zurich. “The pollution we see is not coming from the major global industrial companies, it’s all from small mom-and-pop shops, which prepare the raw materials that we then later use,” Robinson said. Or, in the case of Agbogbloshie, Ghanaians are polluted by the electronic devices Westerners have already used. Local people in such areas, Robinson added, “are very often polluting their environment not because they think it is fun but because it is a question of survival.”[ http://esciencenews.com/sources/scientific.american/2013/11/05/the.worlds.10.most.polluted.places.slide.show%5D

While the middles class in developed countries has been deteriorating in numbers, and poverty has stricken many individuals and countries around the Globe.

In current research we, therefore, extend the work reported in “Leveraging Inequality” (F&D, December 2010), which dealt with only the United States, to include an open-economy dimension. We find (see Chart 1) that what unites the experiences of the main deficit countries is a steep increase in income inequality over recent decades, as measured by the share of income going to the richest 5 percent of the country’s income distribution. This increase in inequality has contributed to a deterioration in the richest countries’ aggregate savings-investment balances, as the poor and middle class borrowed from the rich and from foreign lenders. This, along with the other factors mentioned above, can fuel current account deficits. Indeed, we find that as income shares of the top 5 percent increased between the early 1980s and the end of the millennium, current account balances worsened. For example, in the United Kingdom, an 8.7 percentage point increase in the income share of the richest 5 percent was accompanied by a deterioration in the current account–to-GDP ratio of 2.7 percentage points.[ Unequal = Indebted

 The most developed countries are taking prompt action to improve their environment through investing and tax initiatives to boost green energies and through enforcing strict environmental laws and regulations. However, it is not possible to take on some consistent environmental protection policies on a just national level. To prevent from farther harmful environmental deterioration long-term Global policies should be implemented by the International Financial Institution of WTO, WB, and IMF widely supported and financed by the most developed economies of the US, EU, China, and Japan. But, most important, the ways the global marketplace “business as usual” should evolve into more engaging ways to promote a Green Market Development for many if not all undeveloped markets i.e. economies. An end of the budgetary debt economics that relates economic growth to productivity and investment only, by keeping a firm hand on borrowers: individuals or countries alike, is necessary. Even from a purely historical standpoint of view the system that had performed well in North America, Western Europe, and Japan until the beginning of the 21st Century has been tipping off: :

• the Globalization enveloped the entire globe with a very few exceptions,

• the Internet and rising Productivity made outsourcing and moving of industrial production much easier

• and China has emerged as a great economic industrial power

 Developments that have distorted the market equilibrium in many developed and undeveloped markets alike (with the exception of China, Germany and Japan after the Abenomics) by bringing long-term high unemployment and underemployment, debt accumulation, falling standard of living, and rising inequality that were shaking the foundations of the Capitalism, which short term relatively high lending rates, low market security, weak business, and intellectual property laws, weak consumer protection and environmental protection laws that were supposed to boost productivity, investment, and growth have established conditions for bubbles and recessions, instead: the 2001 $ 2007 Recessions followed by sluggish recoveries exemplify it.

 The conception of using market i.e. economic agents and tools in an “as it comes; as it goes” attitude to prompt Market Development i.e. economic growth is called Market Economics. It has become possible for short-term in History: since the turn of the new century, which brought some new capability for industrial overproduction by the same development that distorted the existing Capitalism. Whereas the technologies that improve Productivity, the Globalization, and China that utilized at best these new opportunities could become the market i.e. economic agents to offset the possibilities for shortages and inflation to allow long-term market development.

 The Market Economics utilizes on such counterproductive for the Capitalism developments to prompt Market Development into targeted Environmentally friendly industries that could prevent from further pollution causal of industrial production, productivity and investment approach, and in the same time create employment, replenish fiscal reserves, and allow a more balanced market approach in economics.

 The economic agents in Market Economics are flexible parameters that adjust the most recent fluctuations on “as it comes; as it comes” probability principle. A high Market Security is paramount to improve the investment transmission-ability, whereas less developed and undeveloped markets and small businesses and investors are given access to relatively fair market competition. Targeted into Environmentally friendly industries and technologies capital infusion should be adjusted to the Inflation (not to the budget). On local for the developed countries e.g. Detroit and international for the International Financial Institutions the “invisible hand” should prevent from pollution, wasting of resources, destruction of woods, wetlands, etc.

Joshua Ioji Konov 2014