45% world's wealth destroyed - page 4
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Worldwide forex transactions are worth $3 Trillion per day.
World stock markets are worth $30 trillion - $40 Trillion (estimated)
The global financial crisis 2008 & 2009 was a result of all-time high prices for Crude oil, Real estates, commodities & others.
The prices reached all-time high in 2008 due to massive demand from China and India.
Now China & India economy is prospering where as USA amd Europe are collapsing. They have made a meal out of them.
I think what you are describing is called Spontaneous Order. It is driven by a force much larger then our selfs.
"Spontaneus orders" ?... another fancy word as "lifestile"...?
Nope. Not trying to discuss semantics here.
"Spontaneus orders" ?... another fancy word as "lifestile"...? Nope. Not trying to discuss semantics here.
Nope has nothing to do with lifestyle.
"Markets
Many economic classical liberals, such as Hayek, have argued that market economies are creative of a spontaneous order - "a more efficient allocation of societal resources than any design could achieve."[6] They claim this spontaneous order is superior to any order human mind can design due to the specifics of the information required.[citation needed] Centralized statistical data cannot convey this information because the statistics are created by abstracting away from the particulars of the situation.[7] In a market economy, price is the aggregation of information acquired when people are free to use their individual knowledge. Price then allows everyone dealing in a commodity or its substitutes to make decisions based on more information than they could personally acquire, information not statistically conveyable to a centralized authority. Interference from a central authority which affects price will have consequences they could not foresee because they do not know all of the particulars involved. This is illustrated in the concept of the invisible hand proposed by Adam Smith in The Wealth of Nations. Smith, however, rejected that Capitalist society was free in any form of all, stating that the workers were constantly enslaved and forced into labor regularly by their managers (Chapter 8 of Vol. 1 of The Wealth of Nations). Thus in this view by acting on information with greater detail and accuracy than possible for any centralized authority, a more efficient economy is created to the benefit of a whole society."
Nope has nothing to do with lifestyle.
"
Markets
Many economic classical liberals, such as Hayek, have argued that market economies are creative of a spontaneous order - "a more efficient allocation of societal resources than any design could achieve."[6] They claim this spontaneous order is superior to any order human mind can design due to the specifics of the information required.[citation needed] Centralized statistical data cannot convey this information because the statistics are created by abstracting away from the particulars of the situation.[7] In a market economy, price is the aggregation of information acquired when people are free to use their individual knowledge. Price then allows everyone dealing in a commodity or its substitutes to make decisions based on more information than they could personally acquire, information not statistically conveyable to a centralized authority. Interference from a central authority which affects price will have consequences they could not foresee because they do not know all of the particulars involved. This is illustrated in the concept of the invisible hand proposed by Adam Smith in The Wealth of Nations. Smith, however, rejected that Capitalist society was free in any form of all, stating that the workers were constantly enslaved and forced into labor regularly by their managers (Chapter 8 of Vol. 1 of The Wealth of Nations). Thus in this view by acting on information with greater detail and accuracy than possible for any centralized authority, a more efficient economy is created to the benefit of a whole society."I know the work of Adam Smith, of course...
I dont know nothing about Hayek
, but for the quote you post about him, I think it might be another (poor) attempt to explain the concept of "invisible hand" stated by Smith.
Much of the work of Smith is still standing. Other aspect have been reviewed, coz economic and social conditions have been changing thru time.
But that is not the point of my previous post.
However, I can only say that society is faaaar away from being economical "efficient". Just look around and you will find thousands of examples.....
But I agree that the government or any other centralized autority is not the answer.
fxnewbie,
Thanks for your kind words.
The interesting issue is what happened AFTER the Spanish brought the gold to Europe...you can imagine..more Gold,same real assetts..inflation..same as has happened here and in the USA for the past years,and I am not referring to CPI..NO..I am talking about assett inflation..so,when a 100 square meters house in the middle of nowhere goes from 50k Euros to 500k because the bank finances you(who,for the sake of discussion,earn 1.5k euros a month) 40 years and 100% on valuation(who,believe it or not was higher than actual paid prices)...Wealth is created?..Yes,I know that you agree with me that it is not;)..I am using you as an example,if you allow me...same as it is not destroyed when the inverse happens.
BTW,in Spain there are like 1MM houses not sold(same as in the USA,who has 6 times the population),the banks have appropriated most of them,now,the interesting issue is that NOMINAL PRICES have decreased by just 10% in one year(valuation companies work for the banks
)...while the bank will sell that house to you at a 40% discount,100%mortgage and 40 years at LIBOR+0 to pay for it...so,on one side the bank`s valuation companies say that the house is worth 450k,while the bank is willing to sell it to you,and to finance it,at 300K..interesting issue ..isn`t it?
Regards
SIt is an interesting issue, indeed...
Waters are finding their true level.
Time to buy a house, Simba !!...