Speculation and bubbles are definitely killing world economy


There is a tremendous excess of liquidity in the hands of very few people who in fact do not know anything about real economy .

Political groups in the main areas of this planet must understand that unless we promote a real wide and vigorous middle class , the existing enormous manufacturing ventures of goods and services will collapse because there is no enough purchase power to consume all that is being offered .

Stock exchange , real estate , currency and raw materials speculation are absorbing the majority of money issued and are acting as huge cemeteries of liquidity that generate costs and inflation that canot be matched neither by industry nor consumers .

The unbalance in the economic situation at any time is promoted by speculation , whereas factories and consumers are at the end those who pay for it .

It is real sad that the world is as it is because the governments of the main countries of this planet work to win elections with the favor of the most powerful , instead of setting the right economic policies that may help the creation of a healthy middle class that will guarantee the necessary consumption capacity to allow for a competitive offer to grow .
Real competitiveness has very little to do with labor costs in manufacturing and high added value services . If you are concerned with durable goods manufacture you should know that competitiveness is a result of the type of investment that helps a bigger production per unit of time and lower costs in raw materials , components and transforming processes and logistics . Bigger production figures will help minimise costs further .

Technology services with higher level staff and continuous recycling education will provide much higher added value to the company .

Those ventures canot receive fiscal and credit treatment equal to speculators . Generation of a well paid middle class needs be rewarded because a bigger number of healthy people will pay estate expenses with lower individual effort that will promote durable consumption .

Brahmason

Brahmason@gmail.com

Published in: on marzo 19, 2013 at 6:39 pm  Comments (3)