Sir can u light the real thing whats happening in world about economy?

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   moneycopposted 12 years ago

   Sir can u light the real thing whats happening in world about economy?
   
   why it is so confusing, even after 2008 recession also nothing could be fixed as permanent reason behind

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2. 95

   Sustainable Sueposted 12 years ago

   Here's a short answer. For over 100 years the US has been operating on the assumption that money pumped into the top levels of the economy will eventually trickle down to the masses, i.e. money spent on huge, capital intensive projects will create jobs and use materials that will themselves create jobs, etc.
   
   But in practice, it doesn't work that way. In practice, money acts more like cream - it rises to the top and stays there. That's why there is such a small percentage of the populace that are super rich, while most of the population is getting poorer and we're losing our middle class. Records show that small businesses are the ones that provide the greatest employment, but that's not where the money is now and small business are going bankrupt right and left.
   
   Connected to that practice is the concept of scarcity, promoted by charging interest on loans. Paying interest means you are paying more than you borrowed. Where does the extra come from? In repaying loans you, and everyone else who borrows, become a sort of money scoop that sends yours and others' money back to the banks. In other words, the banks scoop up all the "extra" money out there, through you, by charging interest, thereby keeping control of the economy.
   
   In the Middle East the Q'uran forbids the charging of interest (usury). The US has been trying to force it on them. That's one of the many reasons we have war there. It isn't just about Israel or nuclear power.

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3. 61

   Evan G Rogersposted 12 years ago

   OH, terribly sorry I didn't get to this earlier. I'm a bit new to the nuances of Hubbing.
   
   Basically the situation is this:
   
   The US controls the world money supply because we are "the reserve currency".
   
   This means that every international transaction has to be made in Dollars.
   
   The federal reserve bank (not a government agency, although heavily politicized) controls how much money is available through "the interest rate".
   
   We have had a 0% interest rate for 4 years now (this means banks can borrow money for free and never have to repay it. This means that the supply of money right now is infinite).
   
   This means that people are investing their money stupidly.
   
   This means that there will be a horrible, Worldwide crash in the next decade or so (depending on minor variables).
   
   This is known as the Austrian Business Cycle Theory.

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