World Economic Crisis... in a nut shell.
Hya folks,
It seems everybody now's talking about the new found World Economic Crisis (WEC). Some experts say this was a catastrofy waiting to happen, others that this is part of the economy cicle and that sooner or later eveything will pass and be ok. Since everybody seems to have an opinion and/or some one to blame for this problem, I decided to get my two cents in as well.
There are 3 sides envolved in this crisis that everybody seems to agree. The economists and/finacial, the politicians, and the media/communications. Let's start with the first one.
Economists
Do you remember the Enron case? A big multinacional energy company that lost all it's money in shady investments and then bribed the audition company's to tell everything was ok? Yeah! We should have guessed right there that something was not right in the world of business. Anyway... that same problem originated a few year later with the banks and financial companies. Basically they were making investments with money they didn't had, and when the people starting asking for there money for real, banks and finantial institutions started to pull all the credits from the people who didn't had it. But who were they lending there money to? Well... we'll get to that in a minute.
Politicians
Basically the politicians were all caught by surprise. You see, when a big company wants to make a big investment without there being to much red tape, they basically bribe (or loobie) a polititian or head of state to make the deal go smothly. The politician says his "working on behalf of the people" and gets a cut of that sweet deal (to his pocket of course). So when the politicians started to ear that the companies where going down because of the business that they supposedly mediated, people started to wonder just what was the deal with the people that new what was going on and didn't take mesures to ensure that it didn't blow up on their face. That takes us to the media.
Media
Ok, so where is a scoop for you. The media doesn't tell the truth! The media say's what the sources say. If the source doesn't speak (because basically it's not obligaded to do so) the media has no means of knowing what's happening and even if it did, they don't have evidence of anything unless someone goes public with it. So the media is the spokes person of the companies that provide them with information, being that finantial, economic or political. The media is saying what the goverment and institutions want them to say! I should know... I was doing that just a few months ago. It's not ilegal or shady, it's just the way it is. When a company has a new product or event and they want the media to be there, they simply ask the media to come and they may (or may not) buy into that. But when it's the goverment or people with power, the media doesn't take the chance 'not to' come because later they might need some information and that source won't speak to it.
I must say I'm not a economist, or a politician or even an "expert" of anykind. What I am is an artist that has tried to thrive in a word that sees money before future and looks to the immediate profit than the long all run. I've worked in media communications and public institutions and I've been there when they make a decision on going with something public or not. And the company always comes first!
So what can I say about the WEC? Three things:
1. Everyhting is business - Nobody does anything for free. Being the new hibrid cars, the new company that says it has the best profit in two years, even when you see Angelina Jolie given help on South Africa, somebody, somewhere is paying for her trip and food at least. Time is money and no big company or institution gives there time away without getting something in return.
2. Politicians are liars - You might thing "that goes without saying!" but remenber they are publicly-elected-professional-liars. So when you start thinking "hey, this guy's saying some thruths about politics! I should vote for him!" think before why is he saying that, at that time. Think what has happend in the world of finance or business for him to say that. Look at Obama! He had some pretty darn hard ideas but with a 7 billion (or something) election campaing, that means he also had 7 billion (or something) reasons NOT to make other ideias come to life.
3. Don't believe the press - As I have said before they say what the sources say. And sometimes souces are "publicaly-elected-professional-liars" and they make a business of liying.
So now you're probably wondering what was the reason for the crisis itself? If the world already worked like that so many years, why did it only happend now? Well I'll tell my theory...
CHINA!
China is now the largest faster growing economy of the world. It has 1/4 of the world population so that's a lot of people possibly buying a lot of stuff. There is just one snag in the plan: China doesn't use banks or the so called "virtual money". Everything is cash up front (and sometimes you even have to bargain for the price). So now imagine a big multinational company want's to pay a chinsese company with actions, bonds or somekind of "virtual payment". China doesn't work like that! So when china started to ask for her money's worth... companies all around the globe started to pull there resource funds to pay, and what did they found out?
There was no money! It was all zero's and one's in some bank or financial institution somewhere.
Ense... WORLD ECONOMIC CRISIS!
Thank you for reading. I hope it helped. (",)
Economists
Do you remember the Enron case? A big multinacional energy company that lost all it's money in shady investments and then bribed the audition company's to tell everything was ok? Yeah! We should have guessed right there that something was not right in the world of business. Anyway... that same problem originated a few year later with the banks and financial companies. Basically they were making investments with money they didn't had, and when the people starting asking for there money for real, banks and finantial institutions started to pull all the credits from the people who didn't had it. But who were they lending there money to? Well... we'll get to that in a minute.
Politicians
Basically the politicians were all caught by surprise. You see, when a big company wants to make a big investment without there being to much red tape, they basically bribe (or loobie) a polititian or head of state to make the deal go smothly. The politician says his "working on behalf of the people" and gets a cut of that sweet deal (to his pocket of course). So when the politicians started to ear that the companies where going down because of the business that they supposedly mediated, people started to wonder just what was the deal with the people that new what was going on and didn't take mesures to ensure that it didn't blow up on their face. That takes us to the media.
Media
Ok, so where is a scoop for you. The media doesn't tell the truth! The media say's what the sources say. If the source doesn't speak (because basically it's not obligaded to do so) the media has no means of knowing what's happening and even if it did, they don't have evidence of anything unless someone goes public with it. So the media is the spokes person of the companies that provide them with information, being that finantial, economic or political. The media is saying what the goverment and institutions want them to say! I should know... I was doing that just a few months ago. It's not ilegal or shady, it's just the way it is. When a company has a new product or event and they want the media to be there, they simply ask the media to come and they may (or may not) buy into that. But when it's the goverment or people with power, the media doesn't take the chance 'not to' come because later they might need some information and that source won't speak to it.
I must say I'm not a economist, or a politician or even an "expert" of anykind. What I am is an artist that has tried to thrive in a word that sees money before future and looks to the immediate profit than the long all run. I've worked in media communications and public institutions and I've been there when they make a decision on going with something public or not. And the company always comes first!
So what can I say about the WEC? Three things:
1. Everyhting is business - Nobody does anything for free. Being the new hibrid cars, the new company that says it has the best profit in two years, even when you see Angelina Jolie given help on South Africa, somebody, somewhere is paying for her trip and food at least. Time is money and no big company or institution gives there time away without getting something in return.
2. Politicians are liars - You might thing "that goes without saying!" but remenber they are publicly-elected-professional-liars. So when you start thinking "hey, this guy's saying some thruths about politics! I should vote for him!" think before why is he saying that, at that time. Think what has happend in the world of finance or business for him to say that. Look at Obama! He had some pretty darn hard ideas but with a 7 billion (or something) election campaing, that means he also had 7 billion (or something) reasons NOT to make other ideias come to life.
3. Don't believe the press - As I have said before they say what the sources say. And sometimes souces are "publicaly-elected-professional-liars" and they make a business of liying.
So now you're probably wondering what was the reason for the crisis itself? If the world already worked like that so many years, why did it only happend now? Well I'll tell my theory...
CHINA!
China is now the largest faster growing economy of the world. It has 1/4 of the world population so that's a lot of people possibly buying a lot of stuff. There is just one snag in the plan: China doesn't use banks or the so called "virtual money". Everything is cash up front (and sometimes you even have to bargain for the price). So now imagine a big multinational company want's to pay a chinsese company with actions, bonds or somekind of "virtual payment". China doesn't work like that! So when china started to ask for her money's worth... companies all around the globe started to pull there resource funds to pay, and what did they found out?
There was no money! It was all zero's and one's in some bank or financial institution somewhere.
Ense... WORLD ECONOMIC CRISIS!
Thank you for reading. I hope it helped. (",)
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