how globalization affects countries and markets

8/9/2019 How Globalization Affects Countries and Markets

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How Globalization affectsCountries & Markets

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This is ongoing - updated article/blog reflecting ever changingGlobal Marketplace and some individual countries' economies

_________________________________________________While the markets are becoming more globalized and

productivity is being propelled by ever improving hightechnologies, some economies as Chinese and Indianare growing rapidly thus becoming real powers inindustrial production, however the old "science" ofWestern Economics is changing very slowly not beingable to conceptualize these undergoing changes. The"old" system of Economics firmly believes that:

"The main motivations for the rapid expansion of multinational activity areas follows:

Higher profits and a stronger position and market access in globalmarkets

Reduced technological barriers to movement of goods, services andfactors of production

Cost considerations a desire to shift production to countries withlower unit labour costs

Forward vertical integration (e.g. establishing production platforms inlow cost countries where intermediate products can be made intofinished products at lower cost)
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Avoidance of transportation costs and avoidance of tariff and non-tariff barriers

Extending product life-cycles by producing and marketing products innew countries

The urge to merge the financial incentives created by the globalderegulation of capital markets is making it easier to achieve

acquisitions and mergers and thereby encouraging the externalgrowth of a business"

"Throughout the past half century, states andinternational organizations have continued to expandthe codification of international human rights lawprotecting the rights of individuals againstgovernmental violations. In parallel with increasingattention to the development of international criminallaw as a response to war crimes, genocide, and other

crimes against humanity, there has been growingattention to individual responsibility for grave humanrights abuses. The creators of this ever-larger web ofhuman rights obligations, however, failed to paysufficient attention to some of the most powerful nonstate actors in the world, that is, transnationalcorporations and other business enterprises. Withpower should come responsibility and internationalhuman rights law needs to focus adequately on these

extremely potent international nonstate actors."

Though neither Environmental concerns nor the everexhausting resources, nor the poor Wealth Distributionand Redistribution of a deregulated Capitalism provedfeasible to get any country out of the Last GlobalRecession.

Portugal Suffering Greek Contagion Pressures EU Bonds (Update2) "Portuguese Prime

Minister Jose Socrates push to convince investors his country will avoid Greeces fate is

being hobbled by an economy thats expanded less than an annual average of 1 percent for a

decade and is reliant on tourism and industries such as cork and pulp. While Portugalspublic debt of 77 percent of gross domestic product is on a par with that of France, the

burden including corporate and household debt exceeds that of Greece and Italy, at 236

percent of GDP. The savings rate is the fourth-lowest among 27 members of the

Organization of Economic Cooperation and Development, according to the Paris-based

groups data."

Eye on Greece, finance leaders to attack debt "(AP) WASHINGTON -Financial leaders, with a nervous eye on Greece, pledged on Saturdayto address the risks posed to the global recovery from high
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government debt. But they also stressed that high unemployment inmany countries remained a threat to a sustainable recovery from thedeepest global downturn since the end of World War II. The Greekdebt crisis has dominated the weekend discussions among financeofficials from the world's major economies."

Pimco Favors China, Brazil, Canada in Uneven Rebound (Update4)April 06,

2010, 1:28 AM EDT "McCulley, based at the companys main office inNewport Beach, California. We continue to expect a desynchronizedrecovery, with less leveraged emerging economies likely to grow morerobustly than the developed economies.

It (the last Global Recession) showed to anyone that ifGovernments of the Most Developed Nations of US andEU did not intervene by expanding Monetary Quantities(through accumulation of high deficit), pouring capitalinto Financial Institutions (such as Fannie Mae, Freddy

Mac, and AIG) and even financing Individual Businesses(such as GM) their Economies and even the GlobalEconomy could have collapsed under the pressure of thebust after huge Real Estate over-capitalizationsucceeded in "Trickle-down" Capitalism's "freedom" ofspeculations of deregulated business and financialstructures, the inadequate system of wealth distributionunable to sustain and raise "demand".

GM plans early loan exit Reimbursing the government would comefive years ahead of schedule."DETROIT General Motors Co.,steadily returning to health after its near-collapse in 2009, saidWednesday it plans to pay off its government loans by June fiveyears ahead of schedule and could report a profit as early as thisyear."

Other reason and not the least important for the deadlyGlobal Recession of 2007-2009 could be considered theexodus of Industrial Production and related CapitalInvestment from the Most Developed Countries and

Markets such as US and EU into China and India. Xinjiang attracts nearly 13 billion yuan of external investments in

Q1 - "External investments have played a crucial role in spurringeconomic growth in Xinjiang Uighur Autonomous Region. Xinjiangattracted nearly 13 billion yuan of external investments in the firstquarter of 2010, up nearly 46 percent from last year, marking thehighest quarterly growth rate of paid-in investments since the globalfinancial crisis."
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In the past, Social expenses where contra productive formaintaining Economic growth, thus Economies of mostsocialized countries such as of these of the Eastern

Block and then China and India (of the Early and MidNineties) were not able to keep up enough supply tobalance the demand for goods and services, howeverwith the ongoing Globalization and rising Productivity,supported with huge Capital the system of Social WealthDistribution is becoming more economically adequate asthe economies of China, France, Germany, and in its ownways Japan have showed. These countries were able toovercome the Global Recession by having better then US

Social Systems for Wealth Distribution.After the fall of the Eastern Block and the Chinasentering into WTO the Globalization stepped on toestablish economic conditions for incredibly fastindustrialization of China and now of India; veryaccessible and easy movable highly technologicallyadvanced industrial equipment for manufacturingcombined with already highly capitalized US financialmarkets leering for ROI found prospective on vastly

populated Chinese marketplace (of educated and skilledlabor) to move industrial production, outsource andinvest huge capital into industrial production andrelated technologies.

US, China announce anti-dumping steps "(AP) BEIJING - TheUnited States and China have announced new anti-dumping stepsagainst each other over aluminum, nylon and optical fiber, possiblyreviving strains over trade and currency that had eased in recentweeks."

In the Sixties and Seventies a similar to the Chinese andIndian industrialization was experienced by Germanyand Japan, however the vastness of the Chinese andIndian Economies and Marketplaces were not remotelymatched by German and Japanese Economies andMarketplaces therefore to suggest that most recent
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Globalization and Industrialization was ever historicallyexperienced is not feasible.

What really changed in the 21st Century is a first timeexperience of Vast Marketplaces of China and India'sEconomies joining US, Germany and Japan into a Globalindustrial production, but because China and India arevast and with educated inexpensive labor-force, andmost important with a very practical Confucian systemof Economics mixing Capitalism, Socialism and evenCommunism systems of Economics (however comes:whatever goes) these countries are manipulatingmarkets to maintain sustained developmentand theyare succeeding on an unimaginable scale.

Frequency of interest rate the central bank statement touched asensitive nerve point large differences speculation"Zhou Xiaochuan atthe International Monetary and Financial Committee meeting madethe following statements. He said China will make comprehensive useof monetary, fiscal and other policy tools, pay close attention to pricemovements and to manage inflation expectations, and effectivelyprevent and resolve all potential systemic risk."

China has discovered that globalization andinternational competition work in its favour.

Great exportations "China overtakes Germany to become the biggestexporter of all""CHINAS rise has long appeared inexorable. Despitea decline in total world trade, China has seen its exports fall less thanthose of other big powers. A new report by the World TradeOrganisation calculates that the total value of merchandise exportsfell by a staggering 23% in 2009. Among the top ten exporters,Japans shipments were worst affected (falling by 26%). AlthoughChina's exports also fell (by 16%), the contraction was less painfulthan in Germany (down by 22%). As a result China is now the singlelargest exporter. The global downturn has helped to reduce globalimbalances; the leading three exporters accounted for 26.7% of totalworld exports in 2009 down from a third of the total in 2008. TheWTO expects trade to rebound by nearly 10% this year."

The Real Reason China Resists on the RMB "As I see it, China isasking a question to which there is no easy answer; what right doesthe US have to lecture anyone on economic matters now, havingplayed so large a part in causing the current global recession throughloose monetary policy, poor risk management by some of our mostprestigious companies and monumental regulatory failures? They areresponding to the continued US belief in American exceptionalism,that we can do whatever we do, right or wrong, and ignore the
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criticisms and demands of other countries who often bear theconsequences of our actions, while we continue to insist on our rightto criticize and make demands on them. As Brad Delong and StephenCohen have pointed out, the US simply no longer has the economicclout to get away with this any longer, and who better than China tostand up to it?

The problem of the Rest of the World is the ideologicalalmost blind following of Marx's' Das Kapital financialsystem controlled by the rules of trickle-downCapitalism that happen to be quite impractical evenwhen this system built North Americas, Great Britain,France and Germany: Great Powers envied by anyone inthe World, however looking in History things sometimehave to change; it happened to Rome, Persia, VictorianEmpires, and etc., thus change could be considered asongoing now affecting different countries and marketsin different ways, but the trend is quite similar ( In theWorlds short term history: once mostly agriculturallydriven GDP changed into mostly industrial productiondriven GDP, now to change into mostly artificiallybalanced Demand-to-Supply Market Economics GDP).

(For parameters see my research Philosophy of theEconomy)

If these new developments of Globalization haveharmful effect on the Most Developed Countries of NorthAmerica, France, Germany and Japan to the rest of theWorld their effect is deadly: rising deficit or genuinepoverty are everywhere: Latin Americas, Africa, EasternEurope, and elsewhere;

Credit Swaps at Record High as Greek Debt Crisis InfectsEurope "April 27 (Bloomberg) -- Credit-default swaps on Europeansovereign debt surged to records on concern that Greeces fiscal crisis

is starting to hurt the borrowing ability of indebted nationsthroughout the region. Contracts tied to Greek government bondsclimbed 54 basis points to 764, Portugal rose 38 basis points to 349and Spain increased 16 basis points to 204, according to CMADataVision. Yields on Greek two-year notes surged above 15 percent,the highest since at least 1998, on concern bondholders will be forcedto take losses as the country grapples with the highest debt ratios inthe European Union.
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IMF warns against Japan's fiscal deterioration "WASHINGTON Atop official of the International Monetary Fund on Sunday warnedagainst rising vulnerability in Japans fiscal conditions amidsnowballing public debts and called for an accelerated effort to putthe nations finances in order. Although Japans problem should notbe treated in the same way as the Greece debt crisis, its fiscal

vulnerability is rising fairly high, IMF Deputy Managing DirectorNaoyuki Shinohara said in an interview with Kyodo News." Japanesefiscal deficits have been financed by the nations high savings so far,but the pace of fiscal deterioration is pretty high, Shinohara said."

Greek budget deficit 13.6 percent of GDP in 2009 "(AP) LONDON -Financially-stricken Greece had an even bigger budget deficit for2009 than previously thought, official figures showed Thursday-at atime the country is considering whether to tap a bailout facility fromits 15 partners in the eurozone and the International Monetary Fund."

Greece, Spain, and Bulgaria are among manyeconomically struggling to couple with ever lack of

Fiscal and Monetary quantities countries: to maintainthe rising productivity of Germany, Japan and China orto industrialize themselves is just futile so they arecursed to high National Debt like Greece, Portugal andSpain or to high Poverty like Bulgaria whoseGovernment was "hired" by the World Bank and IMF tomaintain strict financial order:

World Bank, IMF end Spring Meetings with solid step in voice reform"The

World Bank and the International Monetary Fund (IMF) ended theirSpring Meetings in Washington on Sunday, with a solid step in the long-expected voice reform, a cautious note on exit strategy and a call forglobal cooperation amid uncertain recovery prospects. STRIDES INVOICE REFORM The meetings approved a plan to increase thedeveloping countries' voting power in the International Bank forReconstruction and Development (IBRD) by 3.13 percentage points to47.19 percent, representing a total shift of 4.59 percent to developingand transition countries since 2008."

Rating Agency Data Aided Wall Street in Mortgage Deals"In essence,banks started with the answers and worked backward, reverse-engineering top-flight ratings for investments that were, in somecases, riskier than ratings suggested, according to former agencyemployees. The major credit rating agencies, Moodys, Standard &Poors and Fitch, drew renewed criticism on Friday on Capitol Hill forfailing to warn of the dangers posed by complex investments like theone that has drawn Goldman Sachs into a legal whirlwind. But whilethe agencies have come under fire before, the extent to which theycollaborated with Wall Street banks has drawn less notice.
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U.S., EU call on Tokyo to ensure fair competition against Japan PostTOKYO "The Japanese government has received a letter from theUnited States ambassador and his European Union counterpart callingon Tokyo to ensure fair competition when revising the nations postalprivatization plan, Chief Cabinet Secretary Hirofumi Hirano saidFriday. In the letter, U.S. Ambassador to Japan John Roos and Hugh

Richardson, ambassador and head of the delegation of the EuropeanCommission in Japan, are believed to have claimed that Tokyos planon raising the deposit cap on Japan Post Holdings Cos banking unitmay breach World Trade Organization agreements."

Commentary: This is very suspicious to say the least. As the international criminal bankster

gangsters enrich themselves by creating havoc around the world(Greece, Ireland, Iceland, Spain,

Italy, Portugal, US,)and get countries under their control, a national safe haven for savings is veryimportant.US ans EU are claiming unfair competition because Japan wants to enable a safe haven

for people's savings. Japan, hold strong to your national sovereignty, do not let these criminal

scumbags and there New World Order agenda in. World Trade Organization creating problems

and enriching those at the top through neo-mercantilism."

However neither of these two approaches happen tobring "prosperity" to these countries: "high deficit" or"financial austerity" both are not going to make Spain,Greece nor Bulgaria "industrial powers" thus they couldcover their ever arising Social Expenses andInfrastructural Deterioration._________________________________________________

Fed chief: Joblessness, housing still problematic Despite a morestabilized economy, he says, the U.S. is "far from being out ofthe woods." "WASHINGTON Problems in the housing marketand high unemployment are the biggest economic challenges thenation faces, Federal Reserve Chairman Ben Bernanke saidWednesday. After suffering through the worst recession sincethe 1930s, the economy seems to have stabilized and is growingagain, Bernanke said. But he warned: "We are far from being outof the woods. Many Americans are still grappling withunemployment or foreclosure or both." In prepared remarks tobusiness people in Dallas, Bernanke said he saw no evidence of a

"sustained recovery" in the housing market, noting thatforeclosures keep rising. Commercial real estate remains atrouble spot, too. The toughest problems are in the job market.Even though layoffs have slowed, hiring is "very weak,"Bernanke said. He noted that unemployment, now at 9.7percent, is still close to its highest levels since the early 1980s."

ADDRESSING THE PARALYZED HOUSING MARKET "Some in the US (especiallythe democrats) have been calling for a housing stimulus bill that will help the
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struggling home owners stay in their homes and also stop the house prices fromfalling further. President Obama recently announced an expected plan to fight adeepening housing crisis by committing up to US 275 billion to stop the wave offoreclosures sweeping the US. The plan aims to help around 9 million Americanfamilies. Under the proposed plan a US 75 billion fund will be formed to reduce themonthly payments for homeowners and provide them a buffer of up to $ 6,000against any decline in the value of the houses. The treasury will also agree todouble its financial aid to Fannie Mae and Freddie Mac enabling them to play abigger role in supporting the housing sector. The aim is obviously to increase theconfidence in Fannie and Freddie ensuring the strength and security of themortgage market and to help maintain mortgage affordability.

G20 sounds warning note over new bank rules "One of the lessons ofthe crisis is that facing global challenges we need to have globalanswers," IMF Managing Director Dominique Strauss-Kahn told theRomanian parliament during a flying visit to Bucharest. "This lessonis about to be lost," he said. The IMF chief said individual countrieswere working on new regulations and creating new supervisorybodies. "The only problem is, they don't fit together," he added. The

G20's steering countries said in a letter to all group members thatgovernments must recommit and deliver on reforms they agreed to inPittsburgh."We all have a mutual responsibility to deliver on all ourcommitments to address the weaknesses that led to the financialcrisis," the letter said."This will require that we maintain ourvigilance to address the required reforms and guard againstcomplacency as our economies recover," it added. Bank of Englanddirector of financial stability Andrew Haldane said it is possible thatno amount of capital or liquidity will be enough to totally shieldtaxpayers as profit incentives may place risk one step beyondregulation. "That means banking reform may need to look beyondregulation to the underlying structure of finance if we are not to riskanother sparrow toppling the dominos," Haldane said. PAY RULES

PATCHY But G20 leaders said there can be no let-up on efforts toagree a new set of bank capital and liquidity rules -- dubbed Basel III-- for implementation by the end of 2012. They singled out the needto still include a leverage ratio or cap in Basel III as some countrieslike France have expressed concerns about its impact. The letter alsosaid all countries must have adopted the existing Basel II bankcapital framework by 2011, a reminder to the United States which hasyet to implement it in full. They also reiterated the need to regulateover-the-counter derivatives by the end of 2012 and implement theG20's principles aimed at curbing big bonuses for excessive risk-taking at banks. The Financial Stability Board, tasked by the G20 toimplement its regulatory pledges, said several countries have yet to

fully apply the remuneration principles. They were agreed in part tohelp quell public outrage at the return of big bonuses in a sector thathad to be shored up by taxpayers during the financial crisis. "Firmswill need to maintain momentum toward reforming theircompensation practices through 2010 and beyond," FSB ChairmanMario Draghi said. Many of the major financial centers like the UnitedStates, Britain, Germany, France, Japan and Hong Kong have takenthe regulatory or supervisory steps needed to implement the code.
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Argentina, Brazil, Singapore, India, Indonesia, Mexico, Russia andTurkey lag, the FSB said.

Sarkozy urges new world finance rules in US speech "Sarkozy wantsthe United States to champion firm regulations of financial systems,from tax havens to hedge funds. His ideas were shared by many in

the immediate wake of the financial crisis but momentum fordramatic changes has since slowed. "We should invent a new globalmonetary order," he said Monday, insisting that new regulationswould "save capitalism."

________________________________________________Impossibility for many countries to industrialize joinedby constant lack of capital means no solution underthe control of the World Lenders (World Bank. IMF,WTO) that control their borrowers tightly.

Could not be denied that some of these less developedcountries might have corruption, improper bureaucracy,insufficient markets, and etc. but whatever WB and IMFcould present as reasonable for lack of development:the ongoing processes of Fiscal shortages for these andmany other countries are to be unavoidable: andbecause most of the World economies are 80%+ basedon consumption these countries lower life standards

prompt weak market demand boomeranging back to theMost Developed Industrial Countries export and so itgoes on and on.Unless in the Past, these new conditions of decreasingindustrial production, following consumption anddemand affect US, many countries in EU, and the rest ofthe World in a very harmful ways seen at the Last GlobalRecession.

_________________________________________________

US
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U.S. rebound on good footing: Fe d's Fisher (Reuters) - The U.S.economic recovery is gathering speed as business activity picks uppace, despite lingering weakness in employment, Dallas FederalReserve Bank President Richard Fisher said on Tuesday. I'm Sure Glad The Recession Ended"It's a good thing the recession ended. Otherwise, key economic

charts might look something like this.

Alternatives to appreciating the Chinese yuan"Recent debate has focused on how to increase US exports andsavings and increase Chinese imports and consumption in order tocorrect the trade imbalance between the US and China. In America inparticular, focus has been placed on Chinese exchange rate policy.American leaders would like the RMB to appreciate significantly andquickly. They hope that this would lead to an increase in US exportsand employment."

H-man - Thursday March 04, 2010 08:06AM EST "I was a manufacturing executive forthe past 30 years. I directly observed our manufacturing base disassembled andoutsourced. The pace only increased and unfortunately continues unabated. Themanufacturing jobs sent out of the country were much better paying than theservice jobs that replaced them. The bottom line is now Americans can no longer

just "BUY AMERICAN" and don't have the $ to do so anyway. Greed (Corporate,Political, Individual) has killed the Amercian Dream.

The New Poor"Economists fear that the nascent recovery will leavemore people behind than in past recessions, failing to create jobs insufficient numbers to absorb the record-setting ranks of the long-term unemployed. Call them the new poor: people long accustomed tothe comforts of middle-class life who are now relying on publicassistance for the first time in their lives -- potentially for years tocome."

America tied-up by Record Debt "Smoothing out theeconomy's ups and downs, however, has a cost which is now tyingAmerica's hands. At this time when fears of a double-dip recessionare rising, it's an obvious moment for the government to apply morestimulus spending as it has in the past. But the U.S. finds itself moreleveraged than ever before, limiting its options."

Small businesses need a disaster plan and planB(AP) NEW YORK - Small business owners in the Upper Midwesthave just gone through a disaster preparation drill as the Red Riverrose and threatened to repeat last year's catastrophic flooding. The

region dodged a bullet this time, but more floods may well come, andother parts of the country could see tornadoes and hurricanes.Disaster preparation is one of those tasks that many small businessowners say they'll get around to, soon. But it often gets pushed downthe priority list, especially when a company is focused on bringing innew business or improving cash flow.
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______________________________________President Obama is doing a lot of positive economic actions inattempt to revive US economy: currently signed in laws Health

Reform, support for homeowners mortgage defaults, financingSMB and helping Student Financing are moves into a rightdirection. In regard Wealth Distribution by following the lastGlobal Recession facts are showing indiscriminate link betweenusing Social and Infrastructural Expenses as Economic tools forbalancing "demand-to-supply" ratios. Such trend could bechanged by using an enhanced Stock and CommoditiesExchanges regulated structures that would be sufficientlyallowing Small to Medium Investors to invest Globally and to beable to profit from thus going Global growth: the ROI (returnon investment) such SMI (small and medium investors) couldbecome Market driven ways for Wealth Distribution; OtherMarket related ways for such Wealth Distribution could be byimposing common Global Markets' regulations (for making SMBequally competitive to the Large International Corporations) ,enhancing Business Contracts and Bonding Laws, enhancingIntellectual Properties laws and Risk Management PersonalLiability laws to prompt SMB Global expansion.

Lack of funds & late payments force MSEs to perform billow

capacityDearths of funds and delayed payments have forced the Micro

and Small Enterprise (MSE) sector to perform below capacity, a study

conducted by the industry lobby ASSOCHAM said Sunday. "Most of the MSEs are

running at close to 70 percent capacity utilization due to paucity of funds, arising

out of unduly delayed payment of their dues, resulting in serious suffocation," says

the ASSOCHAM study.

There is a Global trend toward enhancing Personal Liabilitylaws for Corporate Risk Management. (article: "QuantumEconomics-Philosophy of The Economy: Corporate and BusinessStructures in Market Economics")

Mutual fund workers get whistle-blower cover: judge(Reuters) - A U.S. lawprotecting whistle-blowers at publicly traded companies also coversmutual fund firms, a federal judge ruled in a case involving two formerFidelity Investments employees.
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Monetary and Fiscal Policies are to be adjusted to theGlobalization and rising Productivity by Global CentralizedBanking System

------------------------------------------------------------------------

EU

Greek turmoil puts pressure on markets as loan costs soar: "The yieldor return on Greek 10-year bonds topped 7.5 percent for the first time since

Athens adopted the euro in 2001 but later came back to 7.35 percent -- still

more than double the rate on the German 10-year bond at 3.09 percent.Finance Minister George Papaconstantinou said Athens "is borrowing and will

keep on borrowing" despite the record high costs imposed by financial

markets. Ireland hits banks with hefty penalty, to inject billions (Reuters) -

Ireland hit its banks with a hefty penalty to take loans off their hands andsaid they needed at least 22 billion euros ($30 billion) in extra funds to

recover from a property collapse that was worse than feared.

U.S. Stocks Retreat as Iceland, Greece Temper Economic Data March30 (Bloomberg) -- U.S. stocks retreated as concern that deteriorating

government finances will derail the global economic recovery overshadowedbetter-than-estimated reports on American consumer confidence and home

prices. Citigroup Inc., Goldman Sachs Group Inc. and Bank of America Corp.lost more than 1.6 percent as Standard & Poors cut Icelands credit rating

and Greece failed to sell half the 12-year bonds it offered. Exxon Mobil Corp.and Chevron Corp. retreated as oil declined after yesterdays 2.7 percent

rally. Stocks also fell after London-based Gartmore Group Ltd. suspended themanager of its two biggest hedge funds amid an investigation.

Ten Years of Pension Reform in Bulgaria: Achievements andChallenges These are difficult times for Bulgaria, Europe and the world. Formore than ten years the World Bank in Bulgaria has been a steady partner,

supporting reforms in the area of social security and pensions, both in termsof investing in the modernization of the social security administration and in

terms of analytical support to ensure fiscal sustainability of the pensionsystem and we are delighted to respond to the Ministers request for

continued support and work with all partners towards an effective, just andsustainable pension system.

Government aims to boost sluggish export growth " TheEconomy Minister rejected recent criticism of Germany's export boom voicedby his French counterpart Christine Lagarde. Last week Lagarde argued that

Germany's huge trade surpluses with countries in Europe had createdimbalances that were partly responsible for the budget problems in Greece

and other EU nations."Such criticism is unfounded," Bruederle said."Germany's exports are increasingly becoming a motor for the economies of

other European Union countries to overcome the crisis."
http://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/http://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://www.businessweek.com/news/2010-03-30/u-s-stocks-pare-advance-after-s-p-cuts-iceland-s-rating.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.dw-world.de/dw/article/0,,5381627,00.htmlhttp://epp.eurostat.ec.europa.eu/portal/page/portal/eurostat/home/http://www.france24.com/en/20100408-greece-sinks-deeper-crisis-loan-costs-soar-markets-sliphttp://www.reuters.com/article/idUSLDE62T0L920100330?loomia_ow=t0:s0:a49:g43:r4:c0.050000:b32354576:z0http://www.businessweek.com/news/2010-03-30/u-s-stocks-pare-advance-after-s-p-cuts-iceland-s-rating.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.worldbank.bg/WBSITE/EXTERNAL/COUNTRIES/ECAEXT/BULGARIAEXTN/0,,contentMDK:22502611~menuPK:305444~pagePK:2865066~piPK:2865079~theSitePK:305439,00.htmlhttp://www.dw-world.de/dw/article/0,,5381627,00.html


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Greece: It's a Deal France and Germany have brokered an emergency

financing mechanism to help Greece, following extensive bilateral negotiationsbetween the two sides earlier on Thursday (25 March). Under the deal,

approved by eurozone leaders after late evening talks, a funding package willbe created, made up of voluntary contributions from euro area countries and

cash from the International Monetary Fund.

The European Commission gives a serious consideration to the appearance of an alternative to

International Monetary Fund in the Old World. The talks about the establishment of the European

IMF are to be finished by July 1 of the current year. The haste most likely arose against the

background of the crisis in Greece, which unveiled the vulnerability of the financial system in the

European Union. The idea sprang from Wolfgang Schaeuble, the Finance Minister of Germany.

Other members of the governmental coalition of Germany supported the ministers suggestion.

Deutsche Banks chief economist Thomas Mayer said that the new fund would be especiallyimportant to establish better control over the countries of the Eurozone.

(Reuters) - Euro zone leaders won muted approval fromfinancial markets on Friday for a "band aid" agreement to create a

safety net for debt-ridden Greece, but a row over the IMF's role flaredup just as it had seemed settled. Central bankers played down thelikelihood that Athens, which is struggling to cut a giant budgetdeficit, would ever need hard cash from European governments andthe International Monetary Fund to avoid defaulting on its debt. Butthe day after the leaders hammered out their deal in Brussels, theplan remained short on details and the IMF made no direct commenton its role, which Berlin had demanded due to public hostility inGermany to bailing out Athens.

The Pain in Spain: An Economy in CrisisJesusManson323 Spain is a leech economy.

Much of its "new economy" is just Bernie Madoff-style bankingsucking blood out of Latin America.

It really says something that Spain did NOT start Europe's IndustrialRevolution, despite being an early colonial power that importedmassive amounts of gold and silver from North/South America.

------------------------------------------------------------------

------

Latin America

Some Latin Currencies May Be Too Strong "That will be a bigchallenge, because right now the region gets only 2 percent of theworld's overall investments in research and development, compared
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with 28 percent received by Asian countries, according to RICYT, aregion-wide science and technology research network.While China invests 1.4 percent of its gross domestic product inresearch and development, Brazil is investing 1percent, Argentina 0.6 percent, Mexico 0.4 percent and Colombia andPeru 0.1 percent, respectively, RICYT says. Even more worrisome, the

bulk of Latin America's investments in research and development arestate-funded projects on theoretical issues of no commercial value.Consider this: While South Korea registered 80,000 patentsworldwide last year, Brazil registered only 580, Mexico 330,and Argentina 80, according to the World Intellectual PropertyOrganization.

_________________________________________________

Industrial Production moved to the FastDeveloping Vast Countries as China and India

_________________________________________________

China

India, China to Reap Reward of Global Power Shift, "Roubini SaysThesize of the emerging markets is going to become larger and larger,and its going to become greater than the GDP of the United States,Roubini said. It may take 20 to 30 years, depending on relative

economic growth, but the process will occur and we should getused to it.As the U.S., Europe and Japan struggle to recover from theworst recession since World War II, Indias main stock-market indexhas soared over the last 12 months and its economy may grow 8.2percent in the year starting April 1, the fastest in two years, theFinance Ministry said in February. Chinese gross domestic productgrew 10.7 percent in the three months through December, thequickest pace since the fourth quarter of 2007.China has been a hareand India a tortoise but growth is accelerating in India, Roubini said.Emerging markets are set for a V-shaped recovery, even as India stillhas a massive need for human and financial capital as well aseconomic-policy changes to achieve double-digit growth like China,he said.

China Q1 GDP to Rise 12%: Gov't Researcher"The latest industrialoutput data showed robust 20.7 percent year-on-year growth forJanuary and February, although China's industry minister Li Yizhongsaid that the pace of growth, fed by a stimulus package in late 2008that had nearly run its course, could not be maintained." How to think about the RMB, 'currency manipulation,' and trade

war In specific, what I have seen in Chinese factories makes me
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doubt that changing the value of the Chinese RMB would make anynoticeable difference in "bringing jobs back to America." The wagedifferences between the country are so enormous, and the productiveand exporting infrastructure in China is so well advanced, that youcould double the RMB's value against the dollar and still make it moreattractive to produce somewhere in China than in the Midwest. That is

why I think typical American complaints about "currencymanipulation" are ill-founded. They imagine that a cheap currency iswhat has built China's industrial empire. That's a factor, but asecondary one.

Its Chinas World Were Just Living in It"It's easy to forget that biginternational bodies like the IMF and the World Bank were created by

just a few nations, led by the United States. These economicorganizations have global reach, but that globe used to be dominatedby the American superpower, and their policies were suffused withU.S. values. When Beijing was a small-stakes player its leaders didn'talways like the setup, but they lived with it, even facing down fiercegrassroots opposition to join the World Trade Organization. But now

China has more worldwide clout, and public opinion at home hastaken on a combative (and sometimes downright jingoistic) tone. Sowith one eye on China's national interests and the other on domesticcritics accusing the regime of "coddling" the West, Beijing has begunto push harder to reshape international systems to make them moreChina-friendly (and, in the process, to raise the regime's chances ofsurvival)."

China Exports Soar 45% Growth"CHINA reported Wednesday exports soared for the third straight monthin February. The fastest pace in three years as most analysts believe itcould leave Beijing more open to a stronger yuan. Overseas shipmentsgrew 45.7 % on-year last month to US$94.5 billion, the China customs

bureau announced. The consistent data cements a turnaround that beganin December when a year-long

_________________________________________________

The success of China and India is not because of the cheaplabor only: such cheap labor could be found around the Globe,neither it is because of the vast population only: as a wholeSouth America counts about 400M but could not succeed

consistent economic growth, nor because of "right time inhistory": for the last 20 years number of recessions haveplagued the World Economy (1999,2008 deadliest ), hence,why these countries succeeded in economic growth even whenrecessions were ongoing?Countries with very strong Social policies and Wealthdistribution and redistribution? - Maybe just because in the
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modern Capitalism the biggest problem is Wealth distributionand redistribution, maybe because they ignored following thetaboos of "trickle-down" economics and used flexible economicpolicies "as it comes as it goes", maybe because the Great

Industrial Nations of US, Japan and some in EU were notflexible enough in adjusting their Economic policies to succeedEconomics growth, maybe because the Big Internationals andBig Inverstors moved to China and India as a better choice:ther consistent at the same time flexible economic policies,social stability, vast population, work ethics and discipline, orfinally, may be because China and India pretty much ignoredthe Parish Club, the World Bank and the IMF in the ways theyconducted their Economic Policies: supported by strong foreigninvestments they changed the rules of the economic game "as

it comes: as it goes": example is the devaluation of theChinese Currency, the strong business and financial lawsagainst Corporate Risk Management fraud, and etc.

_________________________________________________

India

"Industrial output in February grew at a slower rate of 15.1 percent,official data showed on Monday. The production in January was 16.7percent. The index of industrial production (IIP), which measuresfactory output, stood at 10.1 percent during April 2009-February2010 against 3 percent in the same period of 2008-09, data releasedby the Central Statistical Organisation showed. While basic goodsgrew 8.4 percent during the period under review, capital goods grew44.4 percent. Consumer durables and consumer non-durablesrecorded growth of 29.9 percent and 2.3 percent respectively."

'Extension of interest subvention for garment sector by April'Namrata Kath Hazarika | 30 Mar, 2010

The extension of two percent interest subvention to the garmentsector should be given by April 2010 Read more.... Many of

the govt. schemes for MSMEs are irrelevant: Anil Bhardwaj Budget

allocation would address the additional needs of SMEs:

H.P.Kumar 'Increase in rural demand will accelerate growth of
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SMEs' 'Hardware + Tools exhibition a solid platform for industry

players' Consolidation need of the hour for SMEs in textile industry

'Indo-Canada trade standing at USD 4 bn annually'"He alsomentioned that India stands out in the world, as an emerging marketwith a strong democratic base, fully functional in English theworldwide accepted business language, as a country where the ruleof law pervades and as a country that survived the economicrecession. During the interactive session with Canadian businessassociations Canadian Council of Chief Executives and Canada-IndiaBusiness Council, organized by CII, it was widely recognized thatIndia's growing middle class and nation wide policies for inclusivegrowth present tremendous opportunity for participation by Canadiancompanies.

Govt. clears 23 foreign direct investment proposals "Among theapproved proposals were Tikona Digital Network's Rs. 1,142.21 croreoffer for rasing the FDI to 74 percent by issue of compulsorily

convertible debentures and Pune-based Bharat Forge's plan to issuewarrants worth Rs.576 crore. Opto Circuits India's proposal to issueconvertible warrants worth Rs.376.27 crore and a request by IntelCapital -- the Mauritius-based investment arm of the computer chipmajor Intel -- to acquire equity in the Multi Commodity Exchange ofIndia for Rs.66 lakh also received the nod. The government put offdecision on several proposals, including the offer of Gurgaon-based STel Private Ltd, a joint venture between Chennai-based Shiva Groupand Bahrain Telecom, to issue fully paid-up fresh equity shares toundertake the business of providing telecom services in India.

'Indo-African trade to grow by 22 pc in next twoyears' The bilateral trade between India and Africa is likely to growby 22 percent in next two years, according to an ASSOCHAM paperreleased in the capital on Friday."It is projected that bilateral trade between India and Africa could bearound USD 55 billion in 2012 from the current levels of close to USD45 billion," said Arun Agarwal, chairman of ASSOCHAM's AfricaCommittee.

_________________________________________________

The exodus of Capital from North America and E.U. hada deadly effect on their Fiscal Quantities (GDP of anycountry in the World and the most of Developed IndustrializedNations is based mostly on Industrial Production and Return OnInvestment ROI mostly from Industrial Production).
http://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/04/increase-in-rural-demand-will-accelerate-growth-of-smes600600.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/04/increase-in-rural-demand-will-accelerate-growth-of-smes600600.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Feb/23/consolidation-need-of-hour-for-smes-in-textile-industry800900.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Feb/23/consolidation-need-of-hour-for-smes-in-textile-industry800900.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Mar/30/indo-canada-trade-standing-at-usd-4-bn-annually61060.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Mar/30/indo-canada-trade-standing-at-usd-4-bn-annually61060.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Mar/30/govt-clears-23-foreign-direct-investment-proposals61055.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/04/increase-in-rural-demand-will-accelerate-growth-of-smes600600.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Mar/02/hardware-tools-exhibition-a-solid-platform-for-industry60914.htmlhttp://smetimes.tradeindia.com/smetimes/face-to-face/2010/Feb/23/consolidation-need-of-hour-for-smes-in-textile-industry800900.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Mar/30/indo-canada-trade-standing-at-usd-4-bn-annually61060.htmlhttp://smetimes.tradeindia.com/smetimes/news/top-stories/2010/Mar/30/govt-clears-23-foreign-direct-investment-proposals61055.html


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Japan, Germany and France succeeded in retainingsome of their High Tech Industrial Production but bothJapan and Germany among others were overrun byChina: Japan as the Biggest World Economy and

Germany as the Biggest Industrial Exporter, howeverGermany, France and Japan have balanced their internaldemand by strong Social and Infrastructural Policiesmuch better then many other countries have done it._________________________________________________

Japan

Applications for employment adjustment subsidies fall in Feb Thegovernment grants subsidies to companies which have opted tomaintain employment instead of dismissing workers by shortening thehours they work, for example. The subsidies are to make up for a wagedecrease resulting from shorter working hours. The number of workersfor whom subsidies were applied came to 1,608,149, down 119,066from January, the ministry said.

The Global Debt Bomb: "Today Japan can borrow all it wants from itsown citizens. Over the decades they have dutifully (if mechanically)piled up a $7.7 trillion cache of savings they keep mostly in low-yielding bank deposits. Those savings equal two-thirds of the totalhousehold wealth of Germany, France and the U.K. combined, says

John Richards, North American head of strategy at RBS"

Japan's consumer prices continue to fall

By Roland Buerk

BBC News, Tokyo

Japan has been in deflation for 12 straight months,

figures released by the government show.Prices fell by 1.2% in February from a year earlier,

threatening the country's recovery from recession.Japan's economy has been periodically plagued by deflation since the "lost decade"

of the 1990s, which led to years of stagnation.

The prospect that goods will become cheaper in the future makes consumersreluctant to buy today.This leads to a vicious circle of falling company profits and wages.

Downward trend The latest figures - where the core consumer price index fell by1.2% - is not as bad as in previous months.

Japanese exports are rising, but deflation

at home is cause for concern
http://www.jcer.or.jp/eng/index.htmlhttp://www.japantoday.com/category/business/view/applications-for-employment-adjustment-subsidies-fall-in-febhttp://bx.businessweek.com/business-of-banking/view?url=http%3A%2F%2Fwww.forbes.com%2Fforbes%2F2010%2F0208%2Fdebt-recession-worldwide-finances-global-debt-bomb.htmlhttp://www.jcer.or.jp/eng/index.htmlhttp://www.japantoday.com/category/business/view/applications-for-employment-adjustment-subsidies-fall-in-febhttp://bx.businessweek.com/business-of-banking/view?url=http%3A%2F%2Fwww.forbes.com%2Fforbes%2F2010%2F0208%2Fdebt-recession-worldwide-finances-global-debt-bomb.html


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Germany

Euro zone deal points to a more German Europe(Reuters) - The masks have fallen. From now on, we will all be livingin a more German Europe, with economic policy driven by Berlin'shair-shirt export-or-die model. That is the lesson of a deal amongeuro zone leaders on a financial safety net for debt-stricken Greece,adopted largely on German conditions on Thursday after months ofwrangling that battered confidence in the single European currency."The politics of the EU are undergoing a fundamental change atpresent, with Germany becoming increasingly willing to cast off theshackles of the past and make its voice heard," said RBS analyst

Timothy Ash in a research note.

China And Germany Unite To Impose Global

DeflationChindia, invented by Jairam Ramesh, an Indian politician,to describe the composite new Asian giant. Let me introduce you toChermany, a composite of the worlds biggest net exporters: China,

with a forecastcurrent account surplus of $291bn this year andGermany, with a forecast surplus of $187bn (see chart).

IMF: German economy to grow faster than expectedThe International Monetary Fund is cautio usly optimistic for Europe's biggesteconomy this year. It expects the German economy to expand by 1.5 percent

in 2010. Global growth is estimated at 3.9 percent. (26.01.2010)

German economy records biggest slump in post-warhistoryThe Federal Statistics Office announced on Wednesday that Germany's largely

export-driven economy recorded its biggest-ever decline since World War IIlast year. The country also breached the EU's deficit limit. (13.01.2010)

Breakthrough thrombosis drug wins German innovationprizeA German research group has deve loped new thrombosis medication that can

make life a lot easier for patients and doctors alike. The scientists wererewarded with the German Innovation Prize for their work. (03.12.2009)

Audios and videos on the topic

The new OECD survey (26.03.2010)

The OECD offers a cautious forecast for Germany in its 2010survey
http://www.marketwatch.com/story/german-economy-stagnated-in-fourth-quarter-2010-02-24http://www.businessinsider.com/china-and-germany-unite-to-impose-global-deflation-2010-3http://www.businessinsider.com/china-and-germany-unite-to-impose-global-deflation-2010-3http://www.ft.com/cms/s/0/da95cb88-c950-11de-b551-00144feabdc0.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401988_type_audio_struct_1431_contentId_5398011,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401597_type_video_struct_1431_contentId_5398011,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401597_type_video_struct_1431_contentId_5398011,00.htmlhttp://www.marketwatch.com/story/german-economy-stagnated-in-fourth-quarter-2010-02-24http://www.businessinsider.com/china-and-germany-unite-to-impose-global-deflation-2010-3http://www.businessinsider.com/china-and-germany-unite-to-impose-global-deflation-2010-3http://www.ft.com/cms/s/0/da95cb88-c950-11de-b551-00144feabdc0.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5171763,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,5122805,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/dw/article/0,,4941967,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401988_type_audio_struct_1431_contentId_5398011,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401597_type_video_struct_1431_contentId_5398011,00.htmlhttp://www.dw-world.de/popups/popup_single_mediaplayer/0,,5401597_type_video_struct_1431_contentId_5398011,00.html


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------------------------------------------------------------------------

France

Sarkozy ready to trigger EU 'crisis' to protect farm subsidies"President Nicolas Sarkozy addressed the nation Wednesday for thefirst time since his party's defeat in regional elections. He vowed topush on with reforms and said that he is ready to provoke a "crisis" inthe EU to defend French farm subsidies."

Slight upturn for Paris region but no new jobs yet

2010 will be a slightly better year than 2009 for industry and service sectorcompanies in the Ile-de-France region which includes Paris and the surrounding area.

According to the Bank of France's annual report - based on a survey of some 2,000

companies - 2009 was a year of stark decline in both sectors. But for 2010,companies are expecting business volume to rise again - slowly but surely.

The Ile-de-France region is particularly dependent on big companies which have a

high degree of international exposure, and it has suffered from the global crisis, theBank of France says in its report.

Change in performance per sector (2009)

Intermediate goods (wood, rubber, paper etc): -19.7 %

Automobiles: -15.2 %

Plant and equipment (electronics, aeronautic, rail etc.): +0.5 %

But it expects the region's industrial activity to see an upsurge of some three per

cent in 2010. The companies rely on consumer borrowing to individual households,

which has remained stable.But there was a sharp decline in investment in 2009. Rejecting claims this might

hinder growth this year, the bank's regional director Bernard Tedesco said, If were

dealing with full order books, growth can happen quickly. Investment activities havesimply been postponed. And never have conditions been as favourable for companies

as now, with interest rates at a historic low.But the outlook for employment remains grim, according to the report.

In 2009 companies in the region laid off 4.5 per cent of their staff, and another 1.4per cent are likely to lose their jobs this year.

Low profits mean that the CEOs are cautious. The job sector will be the last one togrow, says the report.Industry and service sector performance (2009 and 2010)

A survey among industry and service sector companies in Ile-de-France

The study was conducted among 1,022 companies from the industrial sector (producers of industrial orelectronic machines, textile, automobile, consumer goods), as well as among 947 service sector

companies (transport, merchandising, computer engineering, temporary work). In the Ile-de-France region,more than 300,000 people are employed in these two sectors.

Industry:

Business volume: -12.3 % (2009), +3.0 % (2010)

Export volume: -13.6 % (2009), +2.8 % (2010)

Service sector:

Business volume: -5.2 % (2009), +1.7 % (2010)
http://www.insee.fr/en/themes/theme.asp?theme=17&sous_theme=4http://www.france24.com/en/20100324-sarkozy-speech-reforms-cap-european-union-crisis-electoral-defeat-francehttp://www.insee.fr/en/themes/theme.asp?theme=17&sous_theme=4http://www.france24.com/en/20100324-sarkozy-speech-reforms-cap-european-union-crisis-electoral-defeat-france


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Export volume: -10.8 %, -5.6 % (2010)

_________________________________________________

The information and links provided above are to provethat the new trend in Economics differs from thetrickle-down Capitalism: just because there is nottrickle-down of capital to the US market but only trickle-up and trickle-down capital to the Chinese market, alsoto prove that all tools of economics are to be randomlyused as it comes as: as it goes as these are used inChina and India instead of ideologically used as in US.Pragmatism is about to rule the Science of Economics to

the rest of this Century.

------------------------------------------------------

Production Economics and Marketism

Quantum Economics-Philosophy of the Economy

Production (only) based economicstighten its monetary policies and financing guidelines on
https://sites.google.com/site/philosophyoftheeconomy/https://sites.google.com/site/philosophyoftheeconomy/


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economic indicators reflecting growth in production (could beagricultural, industrial and partially services). Thus it(production based economics) curtails inflation by preventingeconomies from harmfully over-expanding monetary supplies.Production based economics are all currently used systems:

radical capitalistic (like US, Japan), socio capitalistic (EU,China) and anybody else cracking in between, and communist(Cuba, Venezuela). The Paris Club, World Bank, IMF and WTO(lenders-which capital quantities are coming from thedeveloped capital markets of the developed countries such asUS, Great Briton and now China) are establishments that followthe ways of production based economics; these establishmentspolicies and lending matrix require tight deficit and budgetarycontrol over borrowers mostly less developed countries andmarkets; lending is done on relatively high interest rates andborrowers are watched closely; their budgetary policies arescrutinized. Thus borrowers are controlled on a daily basis soborrowers are prevented from wrongfully overextending theirbudget (social, infrastructural, etc. expenses); the usage ofInternet has helped lenders to tighten control over borrowerstherefore the countries borrowers have much less flexibilitiesto avoid this hug or spent a few dollars over the limit forSocial expenses or fix a bridge or two over the limits set tothem by lenders. The brightest of the brightest minds are hiredby lenders, these mostly young guys would not spare a thingsome time to their own nations if borrowers twist the rules

anyhow, they thoroughly believe in the system of productionbased economics.

Production based economics is a reasonable philosophicalconception defined very precisely by Karl Marx in his Capital-Critique-Political-Economy and clearly very precisely explainsdialectic cyclically self adjustable periods of an economy ofCapitalism, which economy in different proportions applys tothe economies of Social Capitalism and Communism and overallto any system of economics taught ever after by anyeducational institution from East to West; when even inCommunist economics throughout nationalization of industrialtools of production the people as owners of industries aresharing the profit equally instead of big fat capitalistssmoking cigars taking the profit, they the people (whatever inreality it means) were reinvesting ROI and enhancing theirstandard of life ( in reality blah, blah , blah), but still theeconomics of Communism is a production based economics;


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Has the production based economics really worked?

Most definitely: yeas, it worked even by experiencingdifficulties such as the Great Depression the production based

economics and its following financing and controlling practiceswere in the foundations of any most developed and developingcountry and market in the world: from the USA and Germany toJapan, all of these countries and their economies weredeveloped by the system of production based economics: thathow they avoided economic crashes, inflation and deflation,thats how they enhanced their standard of life reaching farbetter life conditions compare anybody elses; for any poorcountry these guys reached the sky. And they did, butWhat new happen that makes production based economicsinflexible and inadequate?

Actually, what happen were mostly products and achievementsof production based economics:

Eastern Block Communist countries change theirtotalitarian systems and embraced Freedom (whichwasnt a political act but a consequence of inadequateeconomics: these were the most sensitive to the newdevelopments in a Globalizing marked with constantlyrising productivity in the rest of the world: lock ofcompetitiveness knock them off)

Almost any country in the world started pushing towardnormalizing international relations and opened theirmarkets

China become a member of WTO, open Her economy forinvestment and private enterprises

European Union started expanding East and Southeastfollowing aggressive ante-corruption policies in anymember country and establishing number of low interestand subsidiary funds for development and promotion ofenvironmentally friendly projects

In the USA productivity was raising wild when risk-

management and intellectual properties were becomingmost powerful weapons too ?!? getting into Chinamarket. Capital was concentrating into smallest andsmallest percentage of the population, and middleclassincome growth after 2000 came to a hold

High technologies and concentration of capital weremaking industrial production and farming much easier to


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export: start up, expand and enhance very quicklyelsewhere in a short time limits

Internet allowed people from elsewhere to exchangeinformation and ideas thus making the world a smallplace; access to self education and new inventions, new

marketing strategies and new media approaches Etc

All of the above and many others were the new events anddevelopments brought by the new Globalization some of which(events and developments) are totally experienced for firsttime, but the most important are the Environmental issuesconsequence of long years of indiscriminate pollution by mostdeveloped and developed countries industrial revolutions.Environmental issues of Global worming are not just concernsbut scientifically proven facts that effect anyone living onEarth; production based economics is based on industrialproduction profit driven therefore high technologies forgeneration of renewable energies, technologies for cleaningemission of manufacturing plants are very expensivepreposition in a highly competitive world: for US practicallyimplementing Environmentally friendly technologies wouldmake for many businesses difficult to compete to China, Russiaand India when even without such burthen competition isfierce. Not the least is the widespread poverty around theworld in where countries and markets are barely having

enough production to feed their populations then to seriouslyconsider adapting expensive Environmentally friendlytechnologies and working toward better environment.Production based economics does not use economic tools todeal with most of these new developments:

Not all countries in a Globalizing market could becomeindustrial: first, because they cannot compete countrieslike Germany, US, China and Japan that basically arecapable to flood this Global market with manufacturedgoods; second, if all these countries go through industrialrevolutions to become industrialized the pollution wouldbe unbearable to the Earth environment

Even very developing countries like China and Indiashould not go throughout industrial revolutions in the oldknown ways themselves that they could destroy the worldeasily

In the existing financial system of lending no country butthe lenders could subsidize their economies if needed to


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reduce emissions and improve environment (when eventhese countries as explained could not do it on a largescale to not becoming uncompetitive)

Last Global recession showed that deregulated productionbased trickle-down Capitalism did not establish

release valves for handling over-capitalization neither"preventive regulatory policies" to avoid it: the wild-wild-west trickle-down theory of economics did not estimatethat instead to trickle-down the capital went overseesbeing invested in more stable markets, or just was notinvested in man-engaging industries in the US particularlywhen in there these were not competitive and less profitgenerating)

What kind of economics could enhance production basedeconomics to address above issues, and make ongoingGlobalization possible?

Changes in Western economies are naturally ongoing:governments are financing lending institution and insuranceconglomerates, buying shares in manufacturers and subsidizingagricultures. Governments in most developed countries aredoing what they can to save their economies from totalcollapses and this process will continue in the future in andout, but:

Is this kind of Governmental interferences in markets mosthelpful to these markets approaches to handle worldrecessions and are there better ways?

The change of production based economics could be changedpossibly by an economics of Marketism based on parametersand economic tools to accumulate over-capitalization, and dealwith inflation by using artificial methods to avoid recessions,using central banking with allowance to issue capital and lendunder low interest rates to a World with better security

Quantum leap must be done by developing and undevelopedcountries and markets in order industrial revolutions to beavoided thus Earth Environment be protected fromconsequential for industrial revolutions pollution.Quantum leap is possible if economics of Marketism isimplemented; the new developments in the world areempowering this new economics by the Rising Productivity andGlobalizing Markets because of the free trade and high


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industrial capabilities of most developed countries and marketsinflation is avoidable even when production based economics isnot used but free entrepreneurship is not replaced bynightmarish governmental bureaucratization which will beprobably unavoidable in future recessions if the old system of

economics remains.

------------------------------------------------------

21th Century Global FinancialSystem of Market EconomyIn the 21th Century currently existing Global Financial System leaded by US andother Most Developed Nations (incl. China) and managed by the Parish Club, WTO,

IMF and the World Bank must change their approaches to apprehend the most recentdevelopments of chronically becoming indebted World, in which except for a very few

countries and market as China and India, most of the rest Most DevelopedEconomies as US and GB, Developing Countries as Spain, Portugal and Greece, and

Undeveloped Countries as Bulgaria, Rumania and many South American Countries,

Asian and African Countries are greatly indebted or very underdeveloped. A CentralBanking System is needed to control the global demand-to-supply balance by being

able to issue capital, instead of the current global financial system which performs

more as a lender.

(SEE: How Globalization affects Countries & Markets below

Engines of growth
http://www.scribd.com/joshua_konovhttp://www.scribd.com/joshua_konovhttp://docs.google.com/View?id=dffw758q_42dqxpx6d4http://www.scribd.com/joshua_konovhttp://www.scribd.com/joshua_konovhttp://docs.google.com/View?id=dffw758q_42dqxpx6d4


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investment to the Far East. The Capitalism of US Economics is very inept indistributing and redistributing Wealth so to speak the demand side of Capitalism

correlates the supply and works well in a close marketplace in size of US marketwhen trickle-down capital first trickle-up to concentrate wealth then comes

down to create industrial production, but than when such trickle-down does notgo to the US market but to elsewhere the shortage of consumption cannot be

avoided, following in not properly balancing demand-to-supply, thus, to avoideconomic catastrophes US Government steps up with infusing capital into the

system: exactly what happen at the last Great Recession of 2007-2009. Also in timeof narrowing ROI (Return Of Investment) particularly for the SME (Small & Medium

Enterprises) and from the SMI (Small & Medium Investors), in time of Governmentalpolicies promoting and tolerating pro Big Business and Big Investors deregulated

trickle-down Capitalism which were mostly the only ones benefiting from theongoing Globalization, the possibilities in such times for occurrences of Economic

Bubbles are quite common. The 1999 Stock Exchange Bubble and the 2007 GreatRecession are products of appointed lack of Wealth Distribution. Thus become

obvious that the Government in situations like that step into actions by infusing

capital, save even individual businesses and prompt social distribution: TheHealthcare Reform, the Finance Reform, and the US SME Tax Reform are good

examples how the system in distress works, though the consequences are up to beseen. It is hard to believe that the US Government could c

how globalization affects countries and markets

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