Friday, May 14, 2010

Adversarial versus co-operative economics.

What can we deduce from the events in Europe? Why did the recession happen and why did it last as long as it did? Did it end?
The world has evolved based on a group theory dynamics in which different countries try to better the other countries. This competitive behaviour has spilled over into the economic environment of the day. In the past few decades the world has become more and more interlocked and each nation’s economy have become more interdependent. An economic slump in one nation leads to economic down turns in the world economy. The adversarial system of economics leads to countries hurting, hindering and not assisting the very nations they depend on for their prosperity. For example Germany's xenophobic seclusions led to a loss of confidence in the Euro because the population like football fans waving their flags and colours clung to a sick national fervor that was based on seclusions superiority by bettering ones own nation at the expense of the other. If Germany had not been reluctant and bailed Greece out at the beginning, confidence in the euro and Germany would not have faltered. Germany had no choice but to bail the Greeks out as it rally on the euro for its economy.
Many USA companies screamed bloody murder based on the outmoded seclusions tactics that Obama himself regretted with every meeting with a world leader. Ya the low end of the population is into that our school is better than theirs and it gained Osama’s much popularity, but he knew America first included Canada and Mexico and so on, as the US economy relies on trade and is so interlocked with other economies only it cannot survive without the prosperity of the other. So a co-operative economic world leads to prosperity. Germany knew it needed Greece to survive to survive itself and Portage, Spain and so on.
So how this is achieved, a co-operative versus adversarial world economic system?

More tomorrow

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