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Economics - The Power of Numbers
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knowledge, Innovation, Sustainability, Social and Economic Research towards problem solving (SERTPS), The ECON Project, Monetary Policy, Finance, Economy, Economics - The Power of Numbers, Growth, Debt, Savings, Budget and Trade
knowledge, Innovation, Sustainability, Social and Economic Research towards problem solving (SERTPS), The ECON Project, Monetary Policy, Finance, Economy, Economics - The Power of Numbers, Growth, Debt, Savings, Budget and Trade

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Brilliant conclusions. Better to apply these now ... than latter on ...
If, the solutions presented in this article were to be applied rightnow ... they would prevent some of the effects presented in "The Reversed Sustainability Effect", explained in this G+ page.

The world has all the information about what it is needed to be done .... the problem is ... the main intitutions of the world, will not do this ... they are not certain that this is the right path, and also, these theories are not in the best interest of the financial system that governs the markets nowadays.
We have to see beyond the installed interests, and start to change current preconceptions about finance, economy, debt and trade.
This article starts to show us the right path ... doe it lacks the approach about transparency, financial regulation and currency control (uncontrolled and excessive amounts of printed money)

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The reversed Sustainability effect

Is more accurate than ever

Now we are in the lower part of the cycle, and:

In an unbalanced economy (Budget, Savings, Debt, Growth, Balance of Payments, Current Account and Trade), the money will flow away, will support the creditors and the markets, and will make the situation even worse for the economy and for the people living in those economies, so:

1. Most of the world continues to apply nowadays, the theories of the economy and the monetary policies and formulas of the 30's and the 70's. These theories were built after the "great recession", applied during the cold war, sustained since the 90's, and enforced by the financial deregulation in the beginning of this century, as the main line of conduct. Those theories and formulas were made for relatively closed economies, on relatively regulated markets. It's like "trying to do business and access the current market transactions, with an old IBM Pc2 + a modem built in the 80's, and hope to access the markets in real time, in the same conditions of everyone else".

2. The foreseeable analyses made in this G+ page, for the Chinese economy and currency, have been validated over the past 3 years, and will became even stronger in the next year (2017)

3. The foreseeable future for the Chinese, Indian and Russian markets will build more momentum for the reversed sustainability effect in the rest of the world, to be seen clearly and to be addressed. Not because of these countries or their economies, but because it will change the balance in the world and the unbalanced situations will become more clear. (monetary dependence and growth, budget, savings, debt, economic production and flows, capital flows, etc…)

4. Most of the world economies continues unbalanced.

5. Financially the world starts to know what has been happening to their money. The money that still serves the companies and the people, it has been hacked from the economy.

6. If we look at Production of goods and services in the economies that are unbalanced, as well as the basics, concerning education, investigation and innovation, market transparency and basic regulation, the advances in these issues have been static and relegated to words and intentions. Nothing has been done.

7. The scenario continues when we look at Savings. They continue to decrease all around the world.

8. Country’s Debt and private debt is higher than ever.

9. Budgets are not prepared to support the economy, and cannot solve the crises by themselves, because they have their own problems to look at.

10. The money from the QE programs continues to flow away from the economy, and goes directly to finance, and stays there.


Most of the world continues to do this systematically


When the cycle rumps up again, the effects of the reversed sustainability policies created systematically, cannot be avoided, will became clear and will enforce even more the already troubled and unbalanced situation.
 
 
Link to the Document about the Reversed Sustainability effect:

https://docs.google.com/spreadsheet/pub?key=0Aiv44toDZ0opdF9xOENMcThUVFRNT1dUanFsMU1IckE&output=html
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Reversed Sustainability

(Paper about the Reversed Sustainability effect, published online, 23rd, February, 2012 with additional note concerning Reversed Sustainability published on the 27th, March, 2012 )

Additional Post with info and analyses ...
About Myths, Monetary Policy vs Finance vs Economy ...
http://the-man-i-fest.blogspot.pt/2013/03/about-myths-monetary-vs-finance-vs.html

and a more recent Post about the same issue ...
Different things require a different apporoach ...
http://the-man-i-fest.blogspot.pt/2013/05/different-things-require-different.html

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About the Economy and the Power of Numbers (our Community), if any doubts existed concerning how much monetary policy (Most Central Banks, here ex:FED - Federal Reserve System in the US) is influencing stock markets (ex:DJIA - Dow Jones), here are 2 graphics for your consideration...

As presented here ▼:
http://the-man-i-fest.blogspot.pt/2013/04/monetary-policy-influencing-commodities.html
The problem isn't about the stimulus programs. It is about the way the stimulus is being applied, because the money isn't going towards the economy, in order:
1) to support companies and entrepreneurs, developing and creating new ideas and new products, innovating;
2) to convert and adapt the the skills and the knowledge of the unemployed, helping them to integrate the new economy;
3) to transform the industry and the productive platform in the country, building a new paradigm towards Sustainable Growth;
4) to duly and fully reform the Sovereign States, concerning their budgets and the way they are currently managed
...

These graphics belong to the following article▼ from Fox News
http://www.foxbusiness.com/investing/2013/04/12/all-rage-central-banking-on-steroids-goes-global/
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How and to what extent have the (QE) Quantitative Easing programs and other "printing money programs ", been influencing and Damaging the economy, since the 90's !?

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Enlightening isn't it !?

M2 vs Money velocity..., if you add the information concerning: Growth, Commodities and Financial Markets...

(that can be viewed here)
http://the-man-i-fest.blogspot.pt/2013/03/about-myths-monetary-vs-finance-vs.html

... it helps you understand that Money (M2) (printed money, quantitative easing, asset purchase, and other forms of money that are currently being injected by Central Banks), because of the way that this is being done, nowadays "New Money" isn't going to the economy, mainly.
Instead 1st goes to financial institutions (in stead of going to commercial and development banks), then goes to financial markets under the form of derivatives mostly, then it spins around and around in the financial markets, throughout Commodities and speculative operations, then it is subtracted of corporate bank bonus and commissions, and, when a small part of the money (M2) arrives to the economy, to fund the entrepreneurs, to support corporate bonds, venture capital and stocks, then it starts to do what it was supposed to do in the 1st place: IT was supposed to SUPPORT THE ECONOMY.

The Graph presented bellow and other useful information can be viewed here:
http://www.cumber.com/content/misc/G4_Charts.pdf.

and here:
http://the-man-i-fest.blogspot.pt/2013/04/monetary-policy-influencing-commodities.html
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The international support and bailout programs haven't been design accordingly to the economy's and the challenges of each individual country!

However, even though some problems have been identified, not all of them were addressed, due to, mainly lack of trust and integration, and also due to the focus and the strength of the ongoing international crises.

Because of this, some countries have more problems now, and different and more difficult challenges to face than they had some years ago.

Courage and work is needed to adjust the international programs to the solutions for the problems that they have to face. Just evaluating the results doesn't solve the problems. Action is needed...
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