Saturday, February 18, 2012

Is there unbalanced supply and demand in the Global Financial Crisis?

The root cause of the whole crisis is our unbalance with nature, and the unbalance within humanity.


We live in a global, closed integral system now, which means we are all interconnected, and we all depend on each other even for our basic necessities.


So we can only get out of the crisis, or successfully face any future problems if we learn the laws governing our global system, and adjust, change our lives accordingly.


Below you will find some of the laws we need to consider, and a music video "Let's Change!" describing the steps we have to make.|||Yes, supply has out run demand and in particular for homes, construction industry and the auto industry. There currently exists an inventory (surplus) of unsold homes, construction equipment, and autos. All these industries have a terrific domino effect through the economy. No one needs steel, lumber, auto parts etc. This is what causes all the unemployment.|||Yes, due to deleveraging, credit bubble will shrink and it will reduce demand for goods, services, stocks, oil, gold, and everything. It will increase demand for US dollar since most of the debt that needs to be paid back is denominated in US dollars.|||yes

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