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14 February 2010 @ 05:00 am
what caused the economic crisis (the loss of trade ( draft ):)wind renting venomless bites  
http://www.nytimes.com/2010/02/14/business/global/14debt.html?hp updated *2/14/2010 from 08/01/2009*

The wealth effect derived from borrowing all possible value from equities is misleading if it does not account for the transactional costs with direct and proportionate increases to real inicome because when unaided those transactional cost devalue equities thus increasing the cost of ownership.

when first world nations, such as the European Community, establish regional currencies they deprive the marketplace of incalculable exchange opportunities, trade. Currency exchange, whether direct exchange or indirect exchange through import/export business, grafts new value onto the issues because their exchange produce income (IMMEDIATE BANKING EQUITY). By subsequent measure, the worth of individual currencies are continuously subjected to global evaluations that account for the time frame shifting (GROWTH POTENTIAL) of the economic community's income product.
The rise of the Euro however ignored fundamental business concerns so as to satisfy political concerns.  Some examples of the Pitfalls of this decision-making are now listed

1. Solution focus.  After the collapse of the Soviet Union, the European Community moved quickly to solidify relations with eastern block countries. Trade and financial aid was expanded; EC membership was increased; and Germany was reunited.  Under the pretext of  finalizing equality a common currency, the Euro, was established

2. Premature evaluation. The introduction of the euro apparently greatly relieved the financial burdens of individual western european nations and increased productivity throughout europe as education and opportunities in Eastern Europe were expanded to match those in the west.   The introduction of private industry to eastern europe measured itself with GDP productivity booms throughout the continent, which by fact was determined by the increase in the pool of private sector borrowing from particularly U.S. Internationalized banks and represented multifold increases over the spending capacities of Socialism.. Building the world highly leveraged loans from U.S. banking institution became the deposits for others in a seemingly perfect system allowing all parties to count the money as equity income.

3.. Bias toward objective data.   Global Productivity continued to rise until early 2007 when apparent speculative scarcity began raising the cost of resources.   In recent G8 meetings, however, the U.S. has been saddled with fault for bringing about the global economic slowdown because it was our banks that had overextended capacity for loan repayments when the required payment differentials of their excess loans  could not be met by available cash.  Major Media outlets have not given any attention to the actual underlying loss of real income opportunities (resulting from disappearing exchange opportunities *trade*) choosing instead to focus on Employment and Spending as primary indicators of economic well being

***Point of Fact, without the U.S. housing bubble there would not have been a productivity boom in Eastern Europe and the risk of cold war like retrenchments would have increased Domestic homeownership initiatives, in other words, furthered European integration by financing its economic modernization

(if there is no currency exchange, there is no trade. This is deflationary. For a handful of people to successfully stand against 10000 years of economic history by advocating for the establishment of a global currency is inane and outlandish. A single currency will eliminate real income produced by trade (currency exchange)

Probably should restate the economic perspective on longterm solutions to environmental and climate science, solar science,e arguments (CLEAN THE OCEANS) while we have the chance and capacity to afford the investments


dollar value investments in Eastern Europe overinflated the value of the Euro (not really matched by real income). anti american U.S policies sunk the value of the dollar (dollar depreciation forced american consumers to increase borrowing thus entailing a proportionate loss in real income).

Russia should compartmentalize iteslf and treat the CIS as a trade organization intended to enrich native banks of members so that they can finance growth.

By growing africa, it is possible to reduce some of the financial sinkhole impacts of the new Euirope, but it is better for all (because there are 1 billion europeans and the gross domestic product of the EC is now shrinking because of trading loss http://en.wikipedia.org/wiki/List_of_European_countries_by_GDP_%28nominal%29 )
: When trade fails, banks fail and then empires always fall
: Aside (not 11, but 10