The Global Economy

From The SchomEmunity Wiki
Jump to: navigation, search

SchomeJ8 2.pngWorking for global change.

The Global Economy

Project Leader: Explo Schomer
Associated forum discussion:

It is clear that the economies of the world are becoming increasingly dependent upon one another, in times both good and bad. It is equally clear that this is unregulated, to a sometimes dangerous extent, due to discrepancies in the policies of different countries. In order to remedy this, we propose that international financial watchdogs must be created to serve a purpose similar to authorities within each country, and that these must act across borders using information collected both independently of and in conjunction with the national financial authorities.

The World Bank also has a role to play, with a system whereby, rather than money fed from the world bank to national treasuries and in turn to companies, multinational companies could directly take loans, in order to aid decentralisation of these companies, and spread the profits more equally across the global economy. In effect, central banks must share their monopoly with international institutions, as regulated by the international financial watchdogs.

Another problem which is becoming more evident, with the current credit crunch, is the separation of the financial markets and the real economy. In order to prevent against losses escalating during economic slow down, the practise of leveraging could be regulated, restricting the loans to traders to a value closer to the collateral offered, and the investment into a company to realistic levels, with legislation heavily based upon the advice of independent watchdogs.

Schome J8!

Welcome to Schome J8.

SchomeJ8 Banner2.png