Thursday, February 10, 2011

Black Sprinter Van For Sale

The reasons for the crisis

Good evening friends of Mediterranean identity,
Today we finally explain the reason for two of the most important current social problems besetting our country, namely the economic crisis and unemployment . First, you must start with a premise: remember the joy prevailing in the country when Italy adopted the euro?, All at the post office to get the kit euro was not expecting other people to collect all the coins of EU countries, some who thought that the market economy was a good opportunity to grow, etc.. Unfortunately, that joy is gone because of an awareness, concerning the crisis that is sweeping the country and generally across Europe.

The Italian political crisis has made a blockbuster media, for a while ' the time now, hearing some statements at a political level, it seems to be over.
But is it really? Apparently not, at least for us mere mortals we do the accountants to make ends meet. If this crisis was really over, why are the workers and continue to be laid off, or worse, are dismissed?. Why does the purchasing power of households continues to decline?. Why did the factories close, or do many sacrifices to remain standing?
If this crisis is over, it is only for finance and the stock exchange where the securities are returned to gain ground. For us mere mortals, however, if no end in sight. Why?

No need to squeeze the meninges, the answer to the problem is very simple, although it seems that no one has noticed.
The reasons for the crisis are due to two reasons. The first is globalization linked to a market economy, which compares quite different economies, the second is clearly the loss of real value to the coin.

Regarding the first point, welcome to the wonderful world of globalization, where identity is lost in the mass of the people and models imposed by the media and in which there is the principle that "is made of the whole lump." Unfortunately, this economic system has several flaws, such as demonstrated in the market economy of which Italy is a part, namely the European Union. It is a clear example of the failure of a system that compares low-cost markets, with low wages (around 300 €) and workers with limited rights is essential, with high-cost markets, with average salaries - high (around 1000 €) and workers supported and protected by the constitutional rules and safeguards laws, as well as employment law. The consequence of this unfair competition is that the employer, the manager or anyone to have to choose where to place their works, clearly opts for the cheaper option. This phenomenon, as a direct consequence of blocking the opening of new factories in our country and also results in the migration of Italian factories abroad, where there are lower costs and expenses, well as a loss of quality the product in favor of quantity and gain . This economic phenomenon - social stops the growth of the country, with businesses closed or moved, and the lack of new investors, is an economy without economic growth, in a nutshell is stuck and mired in an economic stagnation by which can come only by granting greater rights to employers and to business owners, is the famous case of Fiat and Marchionne.

Regarding the second point, we are witnessing a phenomenon of the devaluation of the real value of money. But I'll explain it in simpler terms.
A bancanota, eg. € 20, has a nominal value relative to its amount (ie € 20 in terms of quantity - eg. 20 pieces of 1 euro), and a real value, calculated according to purchasing power that money gives. This is because money is a medium of exchange for goods and services, so its value is related to the purchasing power that money allows. While the nominal value remains the same (20 € 20 € and are still), the actual value may vary depending on the purchasing power, because as the prices offered, with the 20 € I can buy more or less things. The fact that the real value of the currency declines, and consequently involves of a rise in prices, which lowers the purchasing power of households. The beautiful days when we bought with 50 000 pounds the expenses for a week and maybe two, right?. Now with 25 € you can not buy even spending two days recently.

short, the crisis is not over with, and in his live. The same EU member states are struggling to move forward due to the huge public debts. To resolve this problem you need to step back, for a market economy exist between Member States, they must be economically treated and who depart from an equal footing. This equality would lead to further investment and hence an economy in where the purchasing power of households cycle was starting to grow.

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