These two Mondays I was watching a documentary “The Party’s Over: How the West Went Bust”, weirdly enough it was shown on TV, something of quality on TV is a very rare thing these days. The documentary is very good and though provoking. For me as an entrepreneurial minded guy it gave me thoughts about my business strategy. Well, actually I got a lot of thoughts and now I’m thinking how to put them all in this blog post.
Let’s start from the boring part, for me it’s actually the exciting part, the theory. We all know what’s the problem in Europe and also in America – debt, actually huge debt. In Greece the debt is bigger than what it can produce in a year and that is the doomsday scenario that all the other countries are afraid of happening to them.
Now what has caused all of this? Well, the habits of people to spend more than they have earned. In Europe and America people had huge capitals and the plan for these economies to grow was to lend money to developing countries and live from the interest. Sadly developing countries soon enough started regretting to even considering this route, because they got in big debt and the West was waiting for its percentage.
So, developing countries went a different route, build upon their own resources, create products, sell them in the West and save and reinvest the profits. It was actually a wealth transfer from West to East and now East, China basically is the wealthy one and West, Europe and USA looks like developing countries.
At this point everything could have been handled by China starting to buy the higher priced products from West and by that stabilizing the economy, but China didn’t do that instead it kept saving its wealth, according to the numbers an average person in China saves 50% of its earned money and in the West people keep spending more than they have earned.
West finally realized that it can’t live out of debt for eternity and that it needs to start paying back the debt. For West to get out of debt it needs to start manufacturing goods that China needs and that’s high technology specialized parts and machines.
My Thoughts About Economics
After watching this movie I started thinking about the future of my country – Lithuania. Our debt compared to others isn’t really big, well I can’t say that we aren’t following the “European Model”, but I think the situation is under control. We are also in the European Union and now that the union understands the consequences of uncontrolled borrowing, it started to dictate some financial rules to the countries of the union and in the future I think they will be even more strict.
So, I think we wont face problems like Greece is facing, if not our politicians, then the politicians from EU will start to regulate this debt and everything should be okay, because again we aren’t that much in debt.
As for the Eurozone I think it’s a sinking ship and we should let it sink and build a new one. I don’t think that Germany is able to save Greece and other sinking ships like Italy, Spain etc.
My Thoughts About Business
Chinese don’t want to work in factories their whole lives anymore. They are reaching high educational degrees and they are willing to work twice or even 3 and more times harder than an average person in Europe or USA. I’m thinking that in the near future the market will be full of qualified Chinese people in any niche you can think off and competition online will be fierce.
So, start working right now to secure you financial future, trust me it wont get easier in the future, if you don’t work your butt off. Join Empower Network today and start building your business: Click here! and if you haven’t seen the movie, I definitely recommend it.