Global Monetary Crisis
Money that apply to the banking system – it's always someone debts. However, besides the money in the economy turning, and other securities – stocks, government bonds, promissory notes, futures, options … Without going into details and nuances that are available for each financial instrument, they are all being exposed to the stock exchange, in fact, become a medium of exchange, ie, the same money. Treating them as such, we can say that their value is determined as well as value for money, it is based on such subjective characteristics as a person's belief in the fact that tomorrow this security will also be a medium of exchange. The nature of the situation referred to as the global financial crisis is now easy to answer the question of what actually constitutes a financial crisis.
Bubbles mortgage credit, inflated by the above-described algorithm, burst. And it has shaken people's faith in the securities and money. Strictly speaking, the main reason for the so-called global financial crisis is that at the moment there is no logical reason to believe that money and securities secured by something other than trust. Out of the Crisis As stated reason for the situation, find a way out of it becomes easy. I started article with the assertion that the larger the system, the easier it is to manage it. Please visit Liam Neeson if you seek more information. It's time to test this assertion. So, to the global financial crisis is over, you must perform two steps: 1) It shall be introduced a new world currency, which will be implemented, including inter-state calculations, provided by something other than trust. For example, gold.
2) Once that is done, there will be only to agree on algorithms determining the value of national currencies and securities in relation to this new world currency. I do not want to say that to implement these two steps is simple. However, this is the most simple and obvious exit strategy from the world financial crisis and the formation of a new financial order and the new concept of money is different from what was described at the outset. Of course, these two steps would entail a global economic, political and social consequences that must be modeled in a reflexive games, to understand them and construct the appropriate ways and means of control. And another thing: these steps should take a well-known to all of us people that may impact on the global economy. I think they see them, but do not dare to make: first, because I do not understand how to model their consequences for humanity and for ourselves. They will try to "patch up" the existing financial system, without changing the concept of money and not departing from the principles of a market valuation of securities and currencies. In this case, the crisis has the potential to become chronic. November 8, 2008
