TED Conversations

Goodness Ugwumba Opara

This conversation is closed.

What is the future of the global economy?

With the rise of new economic powers such as China, India and Brazil (and virtually every other country in one small way or another), is the global economy headed, even faintly, in the direction of equality for all nations?

As growing internet access spreads information, enlightenment, global exchange and commerce across the planet, the gross effect appears to be a leveling of standards, innovation potential and competitiveness. People increasingly have access to the same learning resources, technology and information. So people in one part of the world are setting up businesses to rival others across oceans and deserts, effectively leading to a more balanced world in which New York is not so different from Mumbai, for example. Is this the true direction of the global economy, even for third world nations, or is there some other trend that's harder to see?


Showing single comment thread. View the full conversation.

  • thumb
    Jul 11 2013: Goodness, I am not an economist. However, the question what is the future of the global economy? reminded me of the article in Money ... Is the next big bubble Bonds? This along with QE in many countries ... the failure of the Euro and most of the EU countries .... banking failures and the supporting stimulus infusions ... etc.

    For the quantitative easing policy, the Federal Reserve holdings of U.S. Treasuries increased from $750 billion in 2007 to over $1.7 trillion as of end-March 2013.

    China holds $1.17 trillion in U.S. Treasuries. The Japanese own about $1.1 trillion of Treasuries.

    Robert Auerbach, Professor of Public Affairs, The University of Texas at Austin, submits the following: "As of March 20, 2013 the Ben Bernanke Federal Reserve has added $2.101 trillion dollars to the base of the U.S. money supply since September 2008 when the financial crisis erupted. That is a 240 percent increase. The Bernanke Fed, that has sole control over the nation's monetary base (currency, coin and private bank reserves), is continuing its money explosion by adding $85 billion a month."

    The impact that the G-20 has on global economy and the "shaky" future of the US and EU economy may send economic shock throughout the globe. These types of failures in the past have eliminated the elite and middle classes by the government taking all the money available to support the growing government .... to no avail. As a prime example was the fall of 1916 Argentina a rising world power that fell to the bottom.

    Another prime factor to consider is the economic model being used. I would suggest a review of the two primary models: Keynesian and Austrian.

    I would like to be able to say the future looks good but I do not believe that. Further I think with failures in the G-20 would have bad effects on all other countries. When recovery occurs perhaps new leadership will emerge.

    This is what I have read. Further research by yourself will be required. Bob.
    • thumb
      Jul 11 2013: Thanks Winner
    • thumb
      Jul 13 2013: At some point, prices will have to fall to empty inventories so we can start over. The last time we did this, we did it with WWII. Until we fix prices based on a global index like food and basic comfort, inflation will always increase to foil the game allowing poverty to exist and cause harm.

      I think the next bubble willh be with rental property. Wall street shuffled 12 billion dollars into property investment down in Georgia and Florida. They bought up everything of any value, painted it up and put a rental sign on it. I've been looking for a home for two years now without success. The only other opportunity for small home owners is to build their own and many are starting to move in this direction. That is why the rental bubble will burst. I does not take into consideration that people get upset and with current communications, can see how the game is moving. They then take a different path to home ownership.

      Even though wall street is trying to make a profit for their investors, they are following the same paths they did after 2000. Of course this will lead to the same result. It's not business.... it's gambling.

Showing single comment thread. View the full conversation.