Access Investments-European Union- ROMANIA

I have been running business's for other people and myself since 1983. Running an economy may indeed be unlike running a household, but it is EXACTLY like running a business. Some of the most famous business's in the world went bust because they could not finance their debts, or were the victim of bad debts where their customers could not finance theirs. You need cash flow, you need working capital, you need a stable exchange rate, you need to keep an eye on all the important ratio's one of which is liquidity and you need to make a profit both as a business and a country. Which is where we could get too deep on financing long term deficits on the balance of payments. Cliches are cliches because they are right.
One cliche is "cash is king" If you have money, then you can buy assets, invest in assets and make some good deals. The world will beaty a path to your door. If you are skint, like Cyprus the world does not beat a path to your door, it bashes your door in.

Here's another cliche: If you owe the bank $50,000 you have a problem. If you owe the bank $50,000,000 the BANK has a problem....The Fallacy of Composition argument that national economies and indeed the global economy as a whole are like a household or business economy and should be run as such was laid to rest thirty seven years ago!.  In summary there are three vital economic ideas politicians and the electorate need to understand to fight recessions and achieve economic growth these are Fallacy of Composition, Sectoral Balances Accounting and Sovereign Currency Creation of Money.... And so the debate trundles on. Austerity or more money printing. I suppose the only way to find out is to suck it and see. Well in fact we are getting a hybrid policy which has elements of both approaches: loose monetary and tight fiscal policy. The upshot, stagflation. Was there ever a more egregious policy mismatch. Anyway we (central banks around the world that is) seemed to have produced a stock market rally and the beginnings of a rally in the housing market. News papers are full of 'soaring' equity prices as a sign that the 'recovery' is firmly in place. Recovery for whom I wonder? All that QE money had to go somewhere and it hasn't gone into productive investment, but hey, the headlines are good.  Unfortunately the whole thing looks like Global Bubble MKII and we can safely predict it will end in the same catastrophic manner as the 2007 debacle notwithstanding all of the media hype.. If it walks like a bubble etc., ... Is this the famed Keynesian stimulus at work I wonder? If so it isn't quite running to plan.  This depression has a long way to run. Like the 1929 slump it began with loose credit and excess demand in the US stock market followed by the failure of the Vienna Bank Credit Anstalt and ran right up to WW2, albeit with a partial recovery. But even as late as 1938 US unemployment was running at 20% and world trade was being stifled by a tariff war which added a further twist to the slump. Sovereign nations with their own currencies were engaged in a currency and trade war against each other to gain competitive advantages in the diminished world export markets. All eerily similar to today's situation.  Here's a prediction, an inflationary upturn with any number of asset price bubbles as the corollary - this is not an accident it is policy - then the inevitable pop and back in the **** only this time even deeper. That is what is on offer from the Treasury and central bank mandarins.