Adonis Diaries

This asymmetrical globalization process

Posted on: August 30, 2017

This asymmetrical globalization process

Globalization and technologies have been modeled by politics, an asymmetrical globalization that weakened the value of work to the benefit of Capital.

The global value of products per year when exchanged is a mere $5 trillions, excluding financial transactions that amount to $5 trillion per day.

Mostly, the previous colonial powers swap their sovereign debts at 3% interest against 8% when lent to developing countries.

The developing countries are pressured to cough up, Not only the interest portion but also part of the principle, of their debts to the colonial powers, lest they pay dearly in political upheavals, military intervention, and economic sanctions.

(For example, Syria that was economically and financially autonomous had to be destabilized. The same goes for Iran)

The colonial powers merely accumulate sovereign debt and never care to repay any part of the principals: The parliaments just vote to raise the budget to cover payments on the interest.

All countries have national debt, and the colonial powers, including Japan and Germany, accumulated trillions of dollars each, and their citizens never hear of this financial situation.

So far, only China has enough surplus money to lent, and mainly because it is producing and exporting at 7% annual growth.

Countries that managed to regulate the flow of speculative capital acquired more stable economies.

The difficulty is “How to regulate and tame the monopoly of the Dollar in the world market of capital“?

States have to rely more on the politics of budget rather than on the monetary policies.

Taking the easy way for controlling monetary fluctuation is not the best remedy for long-term economic stability.

Philanthropic contributions are a pragmatic expression to the notion “taking care of the people around us is good for business”.

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adonis49

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