economic downturn and stock market crash in 2017, the end of international treaties?

Saturday, August 20, 2016

economic downturn and stock market crash in 2017, the end of international treaties?

¿Settlement Trade Agreements to Transnationals?

The phenomenon of economic globalization has made all rational elements of the economy are inter-related.
That, due to the consolidation of oligopolies, technological convergence and corporate tacit agreements, so the outbreak of the economic crisis in the global village has led to the emergence of new challenges for governments and institutions mired in confusion and the disbelief, slowly but surely returning to unknown economic scenarios since the Second World War.
Thus, the replacement of the economic doctrine of budget balance of states by endemic deficit, ( a practice which by mimicry, take the households and companies and public and private organizations), it has contributed to the disappearance of the culture of saving, chronic indebtedness and excessive dependence on external financing.
In addition, the suicidal policy in granting loans and subprime major global banking institutions involved in the expanding maelstrom of the world economy over the last decade and in order to optimize its income statement would have acted ignoring the most elementary prudent credit standards, becoming mere speculative brokers and neglecting provisions to provident funds and insolvency.
This, coupled with the lack of supervision by the monetary authorities of the credit ratings of banks, It originated the subprime crisis in the US, followed by a steady drip of bank insolvencies, a severe contraction in bank lending and an alarming lack of monetary liquidity and confidence in financial institutions.
To this the establishment of compulsive consumerism would be added in developed countries, favored by the incessant bombardment of advertising, the irrational use of plastic cards, granting instant credit with bleeding interests and the invasion of a tide of manufactured products questionable quality and prices without competition from emerging countries. a severe contraction in bank lending and an alarming lack of monetary liquidity and confidence in financial institutions. To this the establishment of compulsive consumerism would be added in developed countries, favored by the incessant bombardment of advertising, the irrational use of plastic cards, granting instant credit with bleeding interests and the invasion of a tide of manufactured products questionable quality and prices without competition from emerging countries. a severe contraction in bank lending and an alarming lack of monetary liquidity and confidence in financial institutions. To this the establishment of compulsive consumerism would be added in developed countries, favored by the incessant bombardment of advertising, the irrational use of plastic cards, granting instant credit with bleeding interests and the invasion of a tide of manufactured products questionable quality and prices without competition from emerging countries.

economic downturn and stock market crash in 2017

China would be immersed in an economic crisis identitaria having to implement a comprehensive battery of structural reforms.
Thus, among the fragilities of the economy it is still limited international financial integration, isolation and control of the state apparatus domestically as well as an allocation of inefficient economic resources caused by the public paternalism and an insufficient level of development distribution networks, marketing and sales.
The challenges are focused on overcoming the high dependence on China relative to demand in developed economies and the uncertain ability of private demand to take over once the public stimuli are exhausted.
For Latin America and the Caribbean, the contraction in global demand for materials would already be causing the strangulation of its exports and widespread depreciation of their currencies due to the strong dollar, which will result in increased production costs, loss of competitiveness, inflation rates runaway and dramatic increases in foreign debt that could end up drawing a secular economic stagnation scenario will force a large part of its population living below the poverty line.
Thus, according to IMF Managing Director Lagarde, "the stronger dollar along with weak commodity prices creates risks for balances and financing debtor countries in dollars" what follows that the economies of Latin America and the Caribbean will be more exposed to a possible appreciation of the dollar and the reversal of flows associated capital, a phenomenon that could reedit the "lost decade of Latin America" ​​(The 80) compounded by a significant increase in social instability, increasing poverty rates and a severe setback for democratic freedoms.
Moreover, the entry into scenarios of recession in countries like Norway, Canada, Brazil, Russia and Finland due to the collapse of commodities and some recent macroeconomic indicators of countries like China or the US have warned of the risk of economic stagnation adueñe of the world economy in 2017, which combined with the next rising dollar interest rates, investors will distance themselves from the equities and the bears you stand at the helm of world ship market, leading to a saleswoman psychosis that eventually trigger the outbreak of the current stock market bubble.
The bubble would be daughter of euphoria on Wall Street (and by extrapolation from other world stock exchanges) after the monetary policies of the major central banks have flooded markets with hundreds of thousands of dollars and euros in hopes of relaunching the economy, especially when placements without risk (debt US or Germany), not give back anything to investors which together with a possible rebound in oil prices due to destabilizing geopolitical factors (Ukraine, Libya, Syria and Iraq) ,

¿ Settlement Trade Agreements to Transnationals?

Paranoiac obsession of stateless multinational or transnational corporations to maximize profits (due to the insatiable appetite of its shareholders by requiring steady increases in dividends), would have led to debt dangerously for the sake of gigantism by hostile takeovers and intensifying the policy of relocation of companies to emerging countries in order to reduce production costs (given the huge differential in wages and lack of labor rights of workers).
Thus the Free Trade Agreement between the US, Canada and Mexico (NAFTA or NAFTA), signed by President Clinton in 1964 would have caused white adults over 45 years with no university education and jobs with low added value after being enrolled in rows unemployment, they would have finished plunged into an explosive circle of depression, alcoholism, drug addiction and suicide after seeing fizzle blackbird the "American Dream", which would have the side effect of disaffection of said segments of white population from the traditional establishment Democrat and Republican, for what the Republican candidate Trump intends to renegotiate. Similarly, the Trans-Pacific Partnership (TPP for its acronym in English) would be the centerpiece of Obama's policy reaffirmation of economic and military power in the Pacific region to meet the Eurasian Union which began its journey on 1 January 2015, but both Clinton and Trump included in its election manifesto US exit of the association.
Likewise, we have the TTIP (Treaty Transatlantic Trade and Investment between the US and the EU) which negotiations should be completed by early 2017 because in theory only involve the elimination of tariffs, unnecessary regulations and bureaucratic barriers but which in practice would be fraught with pitfalls, such as food and phytosanitary regulations.
France and Germany have already expressed serious reservations on the Commission to some precedents in which multinationals have imposed their criteria against legislators through these systems for resolving investor-State conflict (in English, ISDS) and since the Euro-Parliament has the power to knock down all the TTIP once negotiations have been concluded, not rule in 2017 rejecting the majority MEP approval of that Treaty because of late-European reassertion of sovereignty by Franco-German part adjuvanted with the side effects of the imposition of sanctions on Russia.
Moreover, the return to recurring endemism of the Cold War between the US-Russia following the crisis in Ukraine and mutual sanctions between EU-Japan-US on the one hand and Russia on the other, would mark the beginning of the decline of the global economy and free trade, both the EU and the US will implement the Doctrine of promoting consumption of domestic form of aid to avoid relocation of companies, subsidies to the food industry for the introduction of the BIO label all its manufactured products, increased quality parameters required of manufactured goods from abroad and the imposition of additional phytosanitary measures to products from emerging countries. This will force China, Mexico, Brazil and India to make extremely costly investments to reduce pollution levels and improve the quality parameters, being drawn out a scenario to five years in which it would trade wars to economic protectionism, with subsequent contraction of world trade, finiquito back to economic globalization and subsequent return to the watertight compartments in the global economy. http://www.hispantv.com/noticias/opinion/284994/globalizacion-tratados-comerciales-transnacionales-ttip-ttp-nafta-tlcan WEB ALTERNATIVE PROMOTION