INFLATION IN THE UNDERDEVELOPED COUNTRIES

[yoseph]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

It's high time that third world countries realise that it is industrialization and not natural resources alone that is going to make them leap from being a third world country to maybe an economic super power, They are over reliant on their natural resources and all they tend to do is to export them, if they are able to build factories that could transform their raw materials to finished products like developed countries do, they will end up being getting 10x the profits they make from exporting just the raw materials alone.

[deisik]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

It's high time that third world countries realise that it is industrialization and not natural resources alone that is going to make them leap from being a third world country to maybe an economic super power, They are over reliant on their natural resources and all they tend to do is to export them, if they are able to build factories that could transform their raw materials to finished products like developed countries do, they will end up being getting 10x the profits they make from exporting just the raw materials alone

If only things were that simple

The problem is that countries which are already industrialized have a competitive advantage while the third world countries can't just proceed from exporting raw materials and natural resources to manufacturing finished products and retail-ready goods because they simply would not be able to stand the competition with the developed countries. So, instead of getting 10x the profits from exporting natural resources, they would only incur losses by producing subpar goods that will fail to market

To do what you suggest requires a lot more than just building factories as it also requires highly qualified labor force, technologies, capital, etc, as well as support from the big guns like the US opening their markets (see Japan as one such example) and it takes literally decades to go in that direction till finally getting there (or just somewhere)

[Shenzou]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

The main reason why most of these countries suffer from inflation is due to bad economical strategies set by the governments, if we take for example Venezuela which represents one of most countries that suffers from inflation due to its economy heavily  relaying on oil back in the 90s so when the prices went down so it did and they had to get in debt and because of that all their earning had to go directly to paying them, there was no liquidity in the market so they just kept on pumping and printing more and more of the currency until it is worth noting compared to a dollar,  there are many ways to fight inflation but most of them revolve around reducing the currency supply directly and indirectly, and adding value to natural resources without selling to other countries is only gonna make things worse, because one thing leads to another and it will cause more inflation.

[ShooterXD]

Brazil is going to hell.

We have a crazy president, the inflation is big and rising. Our economy minister is a dumb shit and the things will get worse.

The brazilian real is going down day by day and, a lot of people without job.

This shit govern want to give our things to USA. FUCK THE SYSTEM

And now, the governament want set tax to deposits and withdraws

[beerlover]

I know Brazil looks like the only country like that but I can count at least 10 countries who are having the same problems. Yes Brazil was never a big huge economical country so going even worse meant a lot worse things but look at USA, even they are not doing that well and in a world where USA is not doing well because of idiots at power, it is not a wonder that third world countries like Brazil and all others not doing well neither.

I would personally wait it out, I know it is really difficult to manage financially right now but as a person who has seen multiple economical crisis all around the world thanks to my age, I can tell you that after the crisis is always the best time to make money, you have to just not make any debts during the crisis itself.

[abhiseshakana]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

An underdeveloped country is a country gripped by poverty with low income per capita. This is reflected in the very low standard of living of its people. About 75% of income is spent on food. Usually, poor countries are ex-colonies and they inherit the economic and political system from colonial countries. Their poverty and backwardness were caused by economic and political exploitation by the invaders. The colonizers dredged the natural resources of the colonies and sold them on foreign markets at high prices and allowed the colonies to remain poor.

Poor countries find it difficult to break the bondage of colonial heritage. After decades, even though developed countries did not do physical colonization, but they continued to carry out economic colonization by imposing free trade ideology on poor countries even though they knew poor countries were not ready for it. Developed countries through the IMF and World Bank under the guise of assistance control and even control loans and infrastructure projects for poor countries. Globalization has caused wider economic imbalances between developed and developing countries. To put it simply like this, you are born with the condition of your parents being poor and leaving a debt with daily interest. To buy food is difficult. So it is impossible to escape from the snares of poverty.

Inflation in poor countries occurs due to declining food production and ongoing war. Processing raw materials into finished goods or semi-finished goods, of course, requires adequate facilities and infrastructure. To support production, of course, requires a very large cost and competent experts, and even then they depend on developed countries.

To overcome inflation in a poor country, in my opinion, stability, and supply of basic needs must be fulfilled. although conventional food self-sufficiency must be planned to tackle various serious problems in poor countries.

[ShooterXD]

I know Brazil looks like the only country like that but I can count at least 10 countries who are having the same problems. Yes Brazil was never a big huge economical country so going even worse meant a lot worse things but look at USA, even they are not doing that well and in a world where USA is not doing well because of idiots at power, it is not a wonder that third world countries like Brazil and all others not doing well neither.

I would personally wait it out, I know it is really difficult to manage financially right now but as a person who has seen multiple economical crisis all around the world thanks to my age, I can tell you that after the crisis is always the best time to make money, you have to just not make any debts during the crisis itself.

LOL, Bolsonaro just enter in the war against China to get aproval from USA, now, China stoped importations of soy from Brazil, and will buy it from USA. Thats funny.

The problem is keep safe without any debt during the crisis. Its really hard, no job, supermaket prices rising like a bitch. Lets pray for our governaments. =D

[teosanru]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

The heart of the fact is that if you see the history " development" has been defined as a phase with respect to the contemporary technological and economical aspects. I mean to say there was a time in 1300s when Indian subcontinent was too flourished and was conisdered a developed economy but now it's called Developing. While the west was nowhere in the picture at that time now the centre of development. In 1600s China was greatest economy of the world under the Qing Dynasty. My point is that every good economy was bad in the past while many good economies have blown themselves up. You cannot blame the underdeveloped countries for high inflation. Moreover many a times countries with great natural resources have failed as a great Economy example being Venenzuela.

Also the bitter truth is that economy crashes root themselves from Major Economies only. The 2008 Housing debt bubble was created by America itself. So basically no small countries can effect the world Economy that easily. It's the giant nations which are the cause.

[wxa7115]

Brazil is going to hell.

We have a crazy president, the inflation is big and rising. Our economy minister is a dumb shit and the things will get worse.

The brazilian real is going down day by day and, a lot of people without job.

This shit govern want to give our things to USA. FUCK THE SYSTEM

And now, the governament want set tax to deposits and withdraws

This is a huge warning sign, when a government begins to try to restrict the way people use their wealth you know there is something terribly wrong with the economy, that kind of tax is obviously an attempt to try to keep people away from the money that they have deposited in their bank accounts, I will not be surprised that during the next years you see the Brazilian government passing laws to limit the amount of money that you can withdraw from your bank account.

As if we did not have enough reasons to use bitcoin and other cryptocurrencies that is yet another reason to use them, banks think that they can do whatever they want with money that is not even theirs but fortunately for us we have an option that we did not have before in the form of bitcoin and no one can tell you what to do with it no matter what they do.

[zhekinsp]

I know Brazil looks like the only country like that but I can count at least 10 countries who are having the same problems. Yes Brazil was never a big huge economical country so going even worse meant a lot worse things but look at USA, even they are not doing that well and in a world where USA is not doing well because of idiots at power, it is not a wonder that third world countries like Brazil and all others not doing well neither.

I would personally wait it out, I know it is really difficult to manage financially right now but as a person who has seen multiple economical crisis all around the world thanks to my age, I can tell you that after the crisis is always the best time to make money, you have to just not make any debts during the crisis itself.

Inflation is the main problem of this paper money but economist claims that its good to have inflation in the least rate but in the modern days inflation keep increases every year and many developing countries facing huge economical crisis and soon it also will after the developed nations as well.What you said is right main cause of this problem is idiots at poor and theory poor financial management of total economical funds.

[micher143]

I know Brazil looks like the only country like that but I can count at least 10 countries who are having the same problems. Yes Brazil was never a big huge economical country so going even worse meant a lot worse things but look at USA, even they are not doing that well and in a world where USA is not doing well because of idiots at power, it is not a wonder that third world countries like Brazil and all others not doing well neither.

I would personally wait it out, I know it is really difficult to manage financially right now but as a person who has seen multiple economical crisis all around the world thanks to my age, I can tell you that after the crisis is always the best time to make money, you have to just not make any debts during the crisis itself.

Inflation is the main problem of this paper money but economist claims that its good to have inflation in the least rate but in the modern days inflation keep increases every year and many developing countries facing huge economical crisis and soon it also will after the developed nations as well.What you said is right main cause of this problem is idiots at poor and theory poor financial management of total economical funds.

When the government keeps on printing money for their own good, the money will just break down. Inflation is a serious problem in a lot of countries, poor leadership will result to breakdown of the community and economy. But I think it's not Government is to blame, even you are the smallets part of the community you can do something to get a better life.

[teosanru]

Brazil is going to hell.

We have a crazy president, the inflation is big and rising. Our economy minister is a dumb shit and the things will get worse.

The brazilian real is going down day by day and, a lot of people without job.

This shit govern want to give our things to USA. FUCK THE SYSTEM

And now, the governament want set tax to deposits and withdraws

This is a huge warning sign, when a government begins to try to restrict the way people use their wealth you know there is something terribly wrong with the economy, that kind of tax is obviously an attempt to try to keep people away from the money that they have deposited in their bank accounts, I will not be surprised that during the next years you see the Brazilian government passing laws to limit the amount of money that you can withdraw from your bank account.

As if we did not have enough reasons to use bitcoin and other cryptocurrencies that is yet another reason to use them, banks think that they can do whatever they want with money that is not even theirs but fortunately for us we have an option that we did not have before in the form of bitcoin and no one can tell you what to do with it no matter what they do.

Even in India there is tax on cash deposit and withdrawal in excess of certain amount. But What's happening in Brazil is more drastic. Now the thing is that it's just a Myth that coming on Cryptocurrencies will solve these problems because currently Cryptocurrencies are Highly volatile so when people try to keep their mainstream money into crypto prices could fall by a lot daily so what you could buy today with your money can get you much more tomorrow because it's a deflationary currency.

[1Referee]

banks think that they can do whatever they want with money that is not even theirs but fortunately for us we have an option that we did not have before in the form of bitcoin and no one can tell you what to do with it no matter what they do.

I'm truly glad for Bitcoin to be an option we can tap into, but we have to look at how it is impossible for people to have all their funds in Bitcoin so that we have total control over what we own. Volatility is a major concern right now and will be that in the forthcoming years as well. I wouldn't even put all my money in Bitcoin if it has Gold's 'stability'.

What we need is a decentralized unit of account that maintains its value no matter what. I like the DAI stablecoin because it aims to solve that problem. The only thing we can't solve is scalability, therefore have to accept that Bitcoin and other cryptos will likely never reach a state of total mass adoption. Perhaps that we can have some sort of a workaround through interoperability between various networks, but we haven't seen it be put to the test yet.

[STT]

If the stable coin is relying on Dollar for its stability then its not going to work out long term, stablecoin is fine to hedge short term and to avoid exit costs but its not really a solution to just hold.    People are already exposed to dollar or their own national currency, they dont need more of that especially if inflation is the worry.

they make sure that they extract as much raw resources as possible

The 3rd world countries should really invest in their own particular commodity and only commit to one or two years of agreed pricing when doing deals.   Its a mistake to make any commitment to debt rather then the raw commodity, the problem being the countries no doubt dislike the irregular prices many commodities suffer from.     Its the job of their own national economy to account for the variance in commodity worth and to benefit when price peaks and be strong enough to survive the drop in prices.   Venezuela is demonstration of the terrible fallout of relying on a high oil price but it applies to every commodity dominated economy, they have to build stability and savings not debt or promises from the west that are external to their economy and can become a liability
  The problem is its not a fair relationship, the world is dollar centered and its hard for countries to operate independently of that.  I dont believe its impossible just requires discipline, I know Russia, China maybe other countries are trying to build reserves in gold but gold has no yield so really investment in productive industry is required also.

[Hydrogen]

This topic invokes something known as imperialism.

The hierarchy of nations is defined within social order resembling a caste system. Wealthy and powerful nations retain their status through adopting measures to ensure poor(er) nations are unable to elevate their own standards and become competitive. This is reflected by leaders of underdeveloped countries receiving financing and support from foreign powers in exchange for guarantees to keep the population repressed.

As mentioned, the end goal of imperialism is to limit competition between wealthy and poor nations, to guarantee the wealthy retain their status as king of the mountain. It enforces the status quo of the wealthy remaining rich, and those living in poverty remaining poor. This is one reason why many brutal and repressive dictators are found to receive billions in support from foreign sources. It is cheaper for wealthier nations to fund a dictator who is guaranteed to regress educational and economic standards so their country can never compete on a global scale. Cheaper than it would be to compete directly with said nation if they made a legitimate effort to strengthen their economy and elevate standard of living.

The second issue relates to design flaws in how governments are structured. Governments are structured as the largest and most powerful monopolies in the world. Any negative criticism that can be said about US big tech or amazon being a monopoly would apply far more to governments as they lack competition and are not incentivized to produce intelligent nor efficient solutions to problems.

Being a monopoly implies if state issued fiat currency hyperinflates, there are no alternative options. If governments implement poor economic policy or poor regulatory standards, there are no alternative options. The centralized design of state authority is flawed from inception due to it being monopolistic in origin and implementation.

One way to improve conditions relating to inflation would be for governments to issue more than one fiat currency to create a competitive environment. That way if one state issued fiat is poorly managed and devalues, there are other superior options for consumers to fall back on. Governments and leaders need a competitive environment to produce their highest quality work and demonstrate why they deserve to make decisions that affect the lives of millions.

Breaking up state monopolies and forcing them to compete on some level has potential to produce a superior state format in contrast with the way things are now.

Someone give me feedback on the above plz.

[boltz]

Inflation happen all over the world currently not only in the underdeveloped countries and the best examples are the football players transfer as some years ago the most expensive transfer was 120 mil $ now a regular player cost like 100 mil $ this will lead to a new recession in the end, maybe even next year when we might see crazy low prices and people fired from jobs and so on.
Personally I take extra measures from now as the charts don't look good so speaking of underdeveloped countries, I don't see them in any good positions and instead I see new civil wars rising on Africa and also big money are moving to Asia from America. Speaking of Africa, I see they are desperate getting into bitcoin and trying to make legit projects and work hard like they never did before which is another strong sign that something shady is happening in underdeveloped countries. I would exclude Venezuela as there is a conflict zone first and then we can speak of the massive inflation that they are currently experience.

[Murat]

When you have got a badly intended people on the upper level of your country then it must be shown they way various type of hazard on your country, I think some underdeveloped countries always try to follow the decision from the developed countries by this reason they always remain the same position because of the capitalist policy. You know that the first world countries always try to extract the valuable thing from the poor counties and this is the way they wanna make a good relationship among these underdeveloped countries. so the situation will never change. this is the way we are going to face a huge crisis in the future.

[SummerBliss]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

It is easy to say on paper but not possible to apply in practical. Underdeveloped countries like African and Asian countries are rich with natural resources and can do wonders if they get good value for their products. But they fall prey to the first-tier countries and their manipulative practices. First-tier countries especially European Union countries and USA have manipulated WTO to come to the arrangement where there is almost negligible import/export duty on raw materials but levy high duties on finished goods. So first-tier nations buy cheap raw materials from underdeveloped countries but sell them finished goods at inflated pricing. This leads to further depreciation in the value of fiat currencies of undervalued countries. Also they lack machineries and resources to consume natural resources in their own countries. 

[djsugar]

See, there could be many reason behind high inflation in developing countries.

One of them is huge trade deficit. Depreciating exchange rates can bring high inflation in a country. In this case, yes, the long term policies by the government where they can support people in developing such products themselves.

Second is the excessive credit. This can be controlled by tightening the monetary policy. Sometimes excessive credit is required in the economy to push the manufacture sector.

And the third is because of some natural disaster which corrects itself in mid run.

[Wexnident]

The world economy keeps crashing with many incidence of inflation. What is happening at the moment is  a clear indication of a world that has failed the minority. Although the underdeveloped countries could partly be blamed for the high inflation that exists in their respective economies. Would things turn around for good  if underdeveloped countries start to add value to their natural resources themselves without selling to the countries with good economy?

A lot of underdeveloped countries have natural resources that could compare to those developed ones but they lack the technology or resources to develop them. Either that or their government would just rather quickly be rich by selling resources to developed countries and then pocket a huge amount of profit from there. The people can't really do anything about it since the government are the ones whom control almost all of the products that can be imported and exported and it's really sad to see that instead of trying to develop their own country, they develop their won pockets instead.