How Central Banks Can(Not) Intervene

The economic circumstances are considered disturbing at times when the geopolitical situation is considered serious, and the certain cause and possible solutions have the same address. Central banks can intervene to diminish the effects of the banking crisis. The governments and the associations are trying to minimize the concerns of the economy, in particular the dissimilarities, while the strategic maneuvering and international relations are functioning to decrease the amount of conflict situations.

The existing social crisis is demonstrated through statistical data, the distribution of income between labor and capital. More specifically, it is the value added the product of the activity of transformation of men in the system, a value that is divided between the wage bill and the return on invested capital. The financiers sometimes have some means and show goodwill towards the banks, so it is obvious that the states have a strong-minded but inadequate will to control the social crisis with limited means. In the area of ​​geopolitical conflicts, it would take only a little less destructive will and a little more understanding to bound conflicts.

The main economic problem is the sectoral exchange of money, with a attentiveness in high-income, high-value activities and notional operations, with unwarranted returns, so what dries up whole segments of society with social and cultural needs to be supported. The portion of labor income has declined, but the amount is the worst since it masks two realities, where the first one is the disproportion in wages, as the fall in labor income is due to social clearance, while high earnings have kept up well. The evolution of the distribution between income from capital and labor is ineffective in several respects.

In the meantime, creation is increasing and globalization is not a unscrupulous mechanism if we take into account the idea that one can rebalance by the traditional ways the payment of the work is an illusion. Additionally, all predictable solutions have become out of action, except to push citizens into a major social crisis. In fact, the growth of principal income is based on the awareness of high value-added activities. The only certainty we have is that income from profit has increased because the returns to capital are tangible, but there are also restrictions, the symptom of which is highly exposed, the subprime crisis with so called natural effects, while insolvency and reduction of profits occurred since the financial suction of the economy has found its restrictions.

For the system to adopt a new resolution, it would not be a class fight, but an intellectual fight that contains figurative, coherent, and moral struggle. Instinctively, leaders, academics, media, economists cannot go against their interests even if some repentance produces them, buying a good integrity in good words or charitable. An option that remains out of bounds is not debated and which, to be considered, supposes a movement of greatness of public opinion and a powerful media intervention. The real objective of a restructure of the system would be to reload the areas of poverty by monetary injection, but for the middle and working classes, who struggle to get out of it, it is individualism. There is a shortage of civic awareness, of positive depiction combined with complete change of a desire to do good for others as well as for oneself.

Posted in ENG

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