I want to say that this message should not be seen just as a criticism toward “the West”, rather it should be seen as a contribution to a more objective approach toward the economic science from the Westerners.
Everything in this world uses to have two sides, like the sides of a coin. In my opinion, power is not just power of destruction through violence, weapons, armies or wars, it is power of construction or it is not true power. In the West, financials is the king among the several branches of economics, that is a huge bias. Adam Smith defined the base of the economic science and the theory of money with a simple transaction. A supplier offers goods or services; a consumer demands such goods and services and offers money in exchange. As we can see, the part of the economic science that studies the goods and services that any particular economy produces should be as important as the study of the amount of money, or rather the study of the amount of financial resources, that that economy can offer in exchange. Economics is the science of balances. In this sense, the Western economics is as biased toward financials as the Soviet economics was biased toward production. It comes from a basic misunderstanding of how the free market works and the “evil” legacy of the top-down approaches since Malthus to Friedman. “Give me the money creation power and I do not need governments” they said. That is untrue, as much as “give me the armies, the weapons, the violence, etc… and I do not need builders”. Financials, the amount of financial resources available to produce economic transactions, is just 50% of the equation. I would say more. What people and corporations really want is not money or capital. What they really want are the goods and services that they can acquire with it. I want a ticket to fly, I want clothes, food, etc. money is the resource that I need to make real that wish. Therefore, financials should be just 49% of the equation; the other 51% should be the economic policy that intends to produce the goods and services that the society really wants. What we experience nowadays is a financial crisis, that is true. However, we have to remember that economics is the science of balances. This financial crisis is just the result of an economic crisis. A crisis of unbalances in the economic structure of the US economy that started decades ago. Until those unbalances are not fixed, the real crisis will not be fixed, although the West, and the rest of world, will enjoy short periods of apparent relief. To do that, Western governments must take an active role. Through regulation of the financial system, true, but also regulating the whole economic system. Peace and best wishes. Xi --~--~---------~--~----~------------~-------~--~----~ You received this message because you are subscribed to the Google Groups "World-thread" group. To post to this group, send email to [email protected] To unsubscribe from this group, send email to [EMAIL PROTECTED] For more options, visit this group at http://groups.google.com/group/world-thread?hl=en -~----------~----~----~----~------~----~------~--~---
