The Reversed Sustainability effect
It 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 the economic e monetary theories, policies and formulas of the 30's and the 70's, that 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. They continue to apply those policies and formulas to nowadays economies.
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 ramps 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