Topic: World economy, what do you think? (Read 3052 times)

The list of powerful countries is not a small one but China indeed is at the top. It controls almost 80 percent of stock market. Hence a big player in determining the future price of this market. We are also aware of its efforts to control bitcoin but that did not happen. America also supported bitcoin in the beginning but realized that it cant be tamed. Future belongs to that country which will support bitcoin.

China is the most powerful economy right now and America comes next.
But you should not forget the European Union as it is a vital player for the world economy.
They have a lot of exports especially Germany which is active in the production of expensive goods.

This is why China is called as Sleeping Giant and as of the moment that giant wake up. There are many Chinese investors all over the world. These Chinese Businessman are not just play safe with their country but they travel all along the world.
China has a business mentality and it needs to be adapted by every country in the world because it really helps the economy to become boom.

I think it's mostly the other way around - money affects international relations. Look at the example of China using their large market to influence culture and also politics. Too long to elaborate but look up the Blizzard and NBA fiasco and see how the Chinese government is using their populations purchasing power to beat around companies.

That is one of the many reasons why governments do not want to do it, if they back their currencies with gold then gold will have to be reevaluated many times over its current price, they will admit defeat against gold and all of the long term gold holders that told them a fiat system will never work, now they may try to confiscate gold before this takes place but those that hold gold for the long term are historically aware this happened before and they will probably disobey.

So the only option left for the governments will be to tax gold holders but they could always move themselves and their gold ahead of time and avoid those taxes.

This is exactly what happens, the Central Bank in the US is still printing dollars to cover the requirements of import from China. Despite this, US debt to China is still growing. Sooner or later there will be a moment when China will say that it can't go on like this and turn off the tap and the US economy will collapse with it, a crisis will arise on financial markets around the world.

Personally, I think that the world economy is rather flawed and not fair, because wealth is not evenly distributed among all people, although there is no difference between us except sharing cultural values.
This is not fair. In such an economy, some will always benefit, while others will sooner or later face crises, natural or provoked by others. We must be united with a single equal economy.

I don't think that it is possible to backup fiat currency with gold anymore. The total market cap of all the gold mined till now is around $8 trillion. The amount held by the central banks is less than $1 trillion. The total market cap of all the fiat currencies in the world is many times that amount. So it is impossible to backup fiat currency with gold, unless the gold prices increase by 20x or 25x.

@abhiseshakana

The purpose of my previous comment just to make sure that you criticize the right thing.

Partially correct. A free market doesn't mean "absolute freedom" to pursue self-interest so that you can throw away morality to reap as many profits as you can. It is self-interest bounded by morality.

https://www.adamsmith.org/the-theory-of-moral-sentiments

How come Laissez-Faire Capitalism tries to rule the world?

Maybe, you confused with these so-called "capitalism:"
- Crony Capitalism
- State Capitalism
(which is not free-market capitalism)

Hence, the problem is always about "power struggle," a pursue of self-interest unbounded by morality, which is not about Adam Smith's capitalism.

Bitcoin is a Capitalistic System
- "Your key your Bitcoin, not your key?" - popular quote;
- Decentralization, not centrally planned.

"If you don't believe it or...." - SN.

Which parts are from the US exactly? As far as I know parts like processors, lcd/led etc are all from either South Korea or China again. (Intel and other processor manufacturers are still in China)

Iphones are completely made in China just like everything else. The US basically is hiring China for their cheap labor and that sllwly killed the economy in the US and made China... great again.

I see the current state of the world economy as only held by America and China, They still dominate the global market today, America is still the king of imports and exports to all countries, while China now exists as a barrier and is ready to take over the power possessed by America. We will see the economic battle between the two countries.

Basically the terms above were born from a bit of the process of human travel in their efforts to create an ideal society. The form of ideas is then formulated in terms of what we know as certain socio-political-economic views. There is such a thing as democracy, communism, socialism, liberalism, and so forth.

Mercantilism is an economic theory that assumes that the welfare of a country is only determined by the number of assets or capital stored by the country concerned and that the magnitude of the volume of global trade is extremely important.
Mercantilism occurs aimed at the interests of developing industries in European countries were European countries, especially the UK are developing an industrial revolution in which to carry out the industrial revolution, industrial raw materials needed to be purchased at the lowest possible price and obtain as much as possible so that implemented mercantilism.

The emergence of the Industrial Revolution opened up opportunities for capital owners to open and establish industries. They are increasingly competing to invest their capital. This led to the emergence of capitalism, namely the new economic system adopted by Britain, which incidentally was the largest industrial country in the world, where every individual who had capital had full rights to determine their production activities.

On its development. capitalism is not only an economic principle but a political ideology. One of the prominent features of the ideology of capitalism is the existence of a free economic system, where there are no restrictions regarding the benefits derived or the limits of economic competition, meaning that profits can be achieved as much as possible. Moreover, in this ideology, there will usually be no interference from the government in the market.



Let's continue the discussion about how capitalism rules the world. If the capitalists have hegemony at the national level, then there will be a new problem, namely the existence of excess production and the lack of absorption of production results in the country so that they make planning for world-level hegemony:

6. Opening markets in poor and developing countries and creating world economic organizations such as the WTO and GATT (general agreement on Tariff Trade), so excess products can be marketed freely abroad

7. Open a multi-national corporation in the country which is the object of its export, with the aim of preventing the opening of the same industry as a competitor and selling its products cheaper

8. to increase profits it is necessary to master the source of raw materials by dictating the birth of various laws that are able to guarantee that foreign companies can fully control the source of raw materials

9. Dropping the value of the local currency so that the price of raw materials is cheaper by the Foreign Exchange Market. If the country has opened its foreign exchange market, the world capitalists will be more free to "play with" the value of the local currency, in accordance with their wishes.

10. To reduce production costs, low-wage labor must be obtained through the process of education liberalization. Education subsidies were revoked so as to encourage as many vocational schools to be opened. With this school, it is certainly expected that there will be many students who are highly skilled, obedient, as well as willing to be paid low.

11. Intervention The law requires puppet rulers who are obedient to the wishes of world capitalism, by providing means, ranging from campaign finance assistance, media publications, manipulation of survey institutions, to the intervention in the vote-counting system at the General Election Commission.

 If it has planted its hegemony in a country, a new problem will emerge, namely, the death of the country so that it will pose a threat to the capitalists themselves to market their products

12. A non-governmental organization is developed so that the community can develop a home-scale industry in order to continue to have income. The capitalists will support the activities of NGOs in the hope that society will continue to have purchasing power, will decide on the role of the government and, most importantly, that the colony will not become a large industrial country forever.

Until this stage, capitalists still have a threat that is the threat of an economic crisis. but the capitalists have prepared a solution which is:

13. Capitalists simply "force" the government to provide a bailout or economic stimulus that funds come from the State Budget. The source of state revenue is derived from the people's tax, so there is an economic crisis that is disadvantaged by the people

14. To resolve the crisis, the Government submitted foreign loans to the IMF which resulted in the intervention of the IMF in determining a country's policies in return for loans provided

15. Middle trap Income is a policy that can lock a country into a hegemony of capitalism.

6,7,8,9,11, 12, 14 requires support from banks and also the capital market.

  Any country can only survive in this world by making diplomatic relations with leading powers of the world and her neighbors because now we are living in global village. We don’t have choice of developing alone because somehow every single country is relying on others in one way or another. As you stated the instance of iphone manufacturing, there are countless examples where states are exchanging resources and labors. All do this in order to save money and develop strong economy.

You answered your doubts on the first paragraph with your second paragraph, the US dollar is still the reserve currency of the world because it is still used to buy oil, and the only other economy that is big enough to allow for its currency to be used by the world is China and we know they are known to be currency manipulators, the EU is in an even worse shape than the US and we do not know if the experiment will last for another 20 years, so there is not a currency that can replace the dollar.

In my opinion if we begin to see problems in the economy there are only going to be two options, governments back their currencies with gold to bring stability to the system or they decide to create a world currency.

Well, all countries have an impact on each other especially like trading, importing and exporting. As you can see those countries that have a good relationship have a good economy as well. Like China and the US. Iphones are made in China but its parts are from the US. They do it because they will only pay less amount of money in Chinese workers rather than paying a big amount in American workers. But both countries can benefit from it. Indeed, there's no country that has no connection, anyone has interconnected and helping each other.

This is surely important for countries to use export and import system between them it will give every country a chance to grow and get good earning every earn for making the economical state even more stable. Apart from this we also can take part in the ecological and economic development of our state by using crypto investment as it provides jobs to unemployed people and has so many ways to earn money for our new generations so our economy will grow with this faster and faster.

In economic terms international relations is very influential, even this is for trade or investment negotiations. this will have a positive effect on both countries in the area of economic growth, of course. a few months ago we were presented with trade war performances by the US and China, some exports and imports from both parties experienced disruptions and automatically affected the economies of countries that have cooperative relations in the two countries.

Nope, you need to read in order to learn. You can grab your "maximalism" back to Bitcoin Discussion. This discussion is an economics discussion.

And I made a correction about capitalism, not related to corrupt governments.

LOL

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No country adopts pure communism or pure capitalism. The closest example of a communist country was USSR, and now North Korea.

Exactly! It's about who owns the property.

In the previous discussion about capitalism, properties can be owned by private parties; in other words, anyone.

In North Korea (communism), the government (which is a form of community) owns the property and allocates it to the person according to ranks. For example, a high-rank officer receives a bigger house, more clothes, etc.

It's indeed difficult to say that country X uses the Y system since it usually mixed and also depends on what party wins the election (if any).

Honestly, I don't like Politics (and International Study) since you can find this real-world example:
- Country: Democratic People's Republic of Korea << democratic or republic? or none the above
- Economic system: Centrally planned
- Political ideology: Closer to communism than to socialism << debatable
- Government type: Authoritarian
Compiled from: https://en.wikipedia.org/wiki/North_Korea according to my opinion

Hence, economics scholars usually talk about capitalism-communism in terms of ownership and means of production, i.e., Laissez-Faire Capitalism and Command Communism.
And pretty much correctly depicted by the image above.

Not about corrupt governments and whatever else.

I am not the expert on this but I think NK isn't communism or anything near of it.

The dictionary says

It is funny how most Americans confuse communism for fascism which is entirely different. NK is a dictatorship. Communism isn't a dictatorship. It can be, but not always.

No man is an island, so as countries. No country is an island and each and evry country are interconnected and affects each other directly or otherwise, It alliws countries to cooperate with one another concerning relations across boundaries of nation states. International relations are the way to face global economic issues together such as terrorism, environmental concerns, and othe contemporary global issues. IR is really important in maintaining the interconnectedness of countriea regardless of the distance and language and culture boundaries.