a few years back, when I had started composing ‘The Alinea concept’ I did not have EU crisis in my mind. I was only thinking & thinking and thinking of the current nature of economy that has failed to lift the people out of poverty. The current economy has produced a lot of money but simultaneously has pushed the costs of living high enough to make the past’s ‘poor’ as today’s ‘very poor’.
But then again, by the time I was finished with Alinea concept, the solution model that came out was of mutual cooperation among different economies. And it also included or should I say needed a higher financial body. A good match with EU.
Have I run simulations? have I done experiments?..I have not. I didn’t have a computer when I had finished the first draft. the posts that you will(may) refer to were written sitting in a cafe. with sheets covering me as whole. So, if you wish to run simulations before trying, you are free. but please do share the results.
—Down to business, shall we-
A total of 13 chapters.
I will pick up from the final chapter….
the two of final graphs.
I have given a lot of time in expressing in detail about all structure. and why the solution was proposed like this.
Here i only wish to express is that –only a banking system, in this case, ECB, the Europear Central Bank can not, alone, resolve the current crisis.
Reason for it being is that, It can only pump in the system with more money. A lot of which is virtual money, also more money it pumps in- higher is the price rise. after a few short successes, some of which have already achieved, the more pumping in of money will only result in price rise or should I say, eventually another bubble. (long term).
This has proved correct in the past too, we have seen the collapse of 1990’s, IMF did succeeded for short period but then everything failed. The huge stimulus been put ahead by the world’s different banks has also triggered a higher cost of living(for the poorer)
the Alinea concept is like this..
Here the actions of ECB have been included as Ffin- a financial boost. If you will refer to chapters- Alinea: Ghost of Austerity I & II. It will explain where the current solution will lead to.
The thing is- What ECB or for that instance any of such banks are doing is good. but it is not good enough, because they are trying to pull the economy up by themselves; which just doesn’t work.(has never worked).
what is needed, and this is only a theory, is a market oriented boost by another country.
and a venturing out of the country’s market( private companies) into a third nation’s economy.
the suggestion in pictorial form is like this-
I can’t write everything again, it takes a lot out of me. You can excess the whole concept at the address ..
I’ll only add a few questions ahead–
1. why would the ECB intervention not work?
I did not say it will not work, what I am saying is there is a better, permanent solution possible. as explained in the healing chart. the affect of providing liquidity is always temporary. You are providing money to the businesses. that is a good thing, they need the investment, they need the boost but will that work in long time. what afterwards, what if a second crash comes up? more liquidity?? are we not pushing the costs up. inserting and inserting money and none of it goes directly to the people.
What you need to do is invest in people. Now you can not do that without making loss. a loss which at this stage you can-not afford to have. So let another country, friendly off-course, enter in your economy, in a suggested way, allow it to produce in your country, to give jobs to your people, in your state. and when I say another country, I am saying- the public companies of that another state & not the private sector.
At the same time, make your companies to venture out of your soil and build infrastructure in another country, a third state. And I am not saying enter their market, but I am saying build infrastructure for them. The required technological support, the needed monetary support does has to come from a very healthy institution, in this case the ECB, same as they are doing it now. but now they won’t be alone in their effort.
If this particular model can be used…the government should have enough funds to build the infrastructure needed for expansion of the economy.
and the best part is, a web of this kind can take care of it self and the problem of over increasing demand and supply.
—————–
if you have any queries..you can reach me at p.r.apurva@gmail.com
..THESE IS STRICTLY A PERSONAL WORK SHARED BY THE AUTHOR AT HIS OWN DISCRETION. PLEASE DO NOT COPY WITHOUT PERMISSION.
….apurva
