INFLATION IN THE UNDERDEVELOPED COUNTRIES

[bohr]

I've read that the worst effects of inflation take place on those most removed from the source and of course a 3rd world country does not benefit from the cheap debt financing that comes form the original issuance of the currency.  So the citizens of the nation far from the inflation cause such as in the dollar global reserve system do not have benefits from that system that originate with the new currency or the biggest traders with that originating country, so EU, UK and Japan who all receive dollars not long after they are printed all gain by a more direct relationship.
   There is a historical bias to current economic systems that does not properly reflect the world growth that will take place in 2020 going forward.    Any good system has to adapt to what is true today not just the wealth of yesterdays production.

The reason this happens is because governments get to spend whatever money they can print before inflation takes place, it is not only after they spend the money that they have created that this money creates inflation and the price of everything begins to go up, so governments not only have the advantage of printing their money but they get the advantage of being able to spend it before anyone else and before that money alters the price of all the products and services available.

[Xxmodded]

I've read that the worst effects of inflation take place on those most removed from the source and of course a 3rd world country does not benefit from the cheap debt financing that comes form the original issuance of the currency.  So the citizens of the nation far from the inflation cause such as in the dollar global reserve system do not have benefits from that system that originate with the new currency or the biggest traders with that originating country, so EU, UK and Japan who all receive dollars not long after they are printed all gain by a more direct relationship.
   There is a historical bias to current economic systems that does not properly reflect the world growth that will take place in 2020 going forward.    Any good system has to adapt to what is true today not just the wealth of yesterdays production.

The reason this happens is because governments get to spend whatever money they can print before inflation takes place, it is not only after they spend the money that they have created that this money creates inflation and the price of everything begins to go up, so governments not only have the advantage of printing their money but they get the advantage of being able to spend it before anyone else and before that money alters the price of all the products and services available.

Government not have new ideas how to keep their money keep higher value without inflation, almost countries not agree when talking about bitcoin can increase higher price than using cash money. But in reality government not agree want to adopt bitcoin and altcoin as payment transaction or looking other way by using gold for investing for less value transaction at the future.

[uneng]

The only way that a poor country can become rich is to produce value, both monetary value and production value. Each country must be able to measure its population in order to work productively. The formula depends on each country, what is the strength of their country, which is the biggest commodity and the character of the people.

The problem with underdeveloped countries is that they just sell raw materials to developed countries for any cheap price. They don't manufacture their materials, they don't have their own technology and they don't export expensive commodities to strength their economies.
Only technological countries can be wealthy nowadays and offer life quality to their people, others will keep suffering with their poor economy and uncontrolled inflation levels, heavily intervened by the government.

[drlukacs]

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?

Doing so is like making their country worse and worse. The subsistence economy has been undervalued for a long time and it's the worst strategy I've ever known. because an economy without trade with foreign countries will be outdated, the demand will also be significantly reduced. For example, you are holding gold and everyone has a lot of gold for a long time and no one wants to buy gold, so does gold mean anything for you?
so we should have a good trade with foreign countries. That is the way to help a country develop the best.

[bohr]

Government not have new ideas how to keep their money keep higher value without inflation, almost countries not agree when talking about bitcoin can increase higher price than using cash money. But in reality government not agree want to adopt bitcoin and altcoin as payment transaction or looking other way by using gold for investing for less value transaction at the future.

And this is because governments do not feel any need to change their ways, they get to do whatever they want, to pass any laws that they may like and if for some reason they begin to run short on funds they can always print more, what it is not to like about that arrangement? But like always they are being shortsighted, this cannot last forever people are not going to keep accepting this situation for long when for the first time in a long time they have an alternative in bitcoin.

[goaldigger]

Third world countries were the big sufferers of the inflation. First world countries make plans to get recover through the third world countries. This further turns to be a burden for the third world countries which are at the edge of development. In such occasions the affected countries without any plan continue to take decisions which causes heavy inflation.

Another factor is the corruption, by this time to get rid of the inflation first world countries will impose hard market strategies to make themselves strong, and this also been done by making politicians fall for corruption. Very few country's political leaders stand against several policies by first world countries to make thyself overcome the inflation.

Every country wants to become rich despite of their resources and its normal for a country to impose such law so they can survive from a big fall. Well, in my country we have a small rate of inflation but as a third world country, corruption is too high and that stops people from growing as well. If only cryptocurrency can stop them, then its good for all of us political leaders should live for their people and not on their personal wants.

[STT]

The problem with national currencies that relate only to paper value and promises is that the unit of value is uncertain and this unknown factor to every transaction in that currency leads to a discouragement of business and so the governments action in not providing a stable currency and certain accounting causes secondary harm to the country's prospects.
   Think of all the demand for the US dollar, that works in reverse for all these little developing nations.  The bias we have in the system where every country wants to hold dollars causes a lack of investment elsewhere to occur.   Ideally we want all currencies level in their equivalence and the easiest way to do that has been historically via gold.    The modern answer right now is that crypto and specifically BTC is providing a certain standard that helps to facilitate trade across borders, between nations and people globally.

[JeffBrad12]

The only way that a poor country can become rich is to produce value, both monetary value and production value. Each country must be able to measure its population in order to work productively. The formula depends on each country, what is the strength of their country, which is the biggest commodity and the character of the people.

The problem with underdeveloped countries is that they just sell raw materials to developed countries for any cheap price. They don't manufacture their materials, they don't have their own technology and they don't export expensive commodities to strength their economies.
Only technological countries can be wealthy nowadays and offer life quality to their people, others will keep suffering with their poor economy and uncontrolled inflation levels, heavily intervened by the government.

I know that well only industrial country that could process their raw material into something even more valuable could grow into a rich country take example of south korea and china they could become developed country from a poor country in short period of time and that's because they are industrial country and the chinese's growth after so much investors coming there is immense but now the turn for vietnam after the trades war. The problem with underdeveloped country is that they are always lacking common sense to process their own material and the corruption aswell. they still think about their own wealth and not for the entire country. but the weak currency that these underdeveloping countries have is also a problem for their advancement of the infrastructure.

[drlukacs]

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?

I don't think this is a good idea. Foreign trade is very important for the 4.0 era, so that China has become the No. 2 power in the world based on its resources and cheap labor. so we should actively support poorer countries to trade more and what they need to do is improve the quality of their products to create credibility and there will be more demand from more countries. .
for example, in less resource-rich countries like Africa, they should focus on other things. be it a technology service or something that is not related to resources that can make money.

[abhiseshakana]

I don't think this is a good idea. Foreign trade is very important for the 4.0 era, so that China has become the No. 2 power in the world based on its resources and cheap labor. so we should actively support poorer countries to trade more and what they need to do is improve the quality of their products to create credibility and there will be more demand from more countries. .
for example, in less resource-rich countries like Africa, they should focus on other things. be it a technology service or something that is not related to resources that can make money.

According to the Future of Jobs Report, World Economic Forum, there are five HR skills in industry 4.0 in the 2015-2020 timeframe. These skills if sorted are complex problem solving, social skills, process skills, system skills, and cognitive abilities. After 2020, cognitive abilities are expected to be the most needed skills, followed by system skills, complex problem solving, content skills, and process skills (http://www3.weforum.org/docs/WEF_Future_of_Jobs_2018.pdf).

Entering the industrial era 4.0 forced humans to enter two worlds, namely the real world and the virtual world. The Internet of things, which is the spirit of this era, conditions humans in a personal and communal way, relying heavily on the virtual world, which is increasingly complicated and smart. the shift from cognitive ability from fifth to first in 2020 makes it a challenge for all humans on earth.

To deal with the industrial era 4.0, it requires human resources who have flexible cognitive abilities, good logic, sensitive to problems, mathematical abilities, and visualization. We must become smart industrial 4.0 human resources, if not smart we can become victims of the 4.0 industrial revolution, the possibility that what happens is that we are not real anymore now entering the virtual world, but will become 'supernatural', because our existence vanished by itself. We are lost from the circulation and civilization of the world.

For poor African countries, the challenge will be multiplied. The main factor is how to think about becoming a smart human being while only to survive is very difficult (access to fulfill basic needs is minimal). Africa needs many opportunities for improvement in the quality of primary life. Opportunities needed by poor countries are access to employment to improve living standards, which also means investment in African countries.

China is now investing heavily in Africa and binding Africa with policy (OBOR). Even though China aims for Chinese interests, let's hope that the standard of living of the African people will improve.

[Mometaskers]

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?

That's assuming that they can even have control of their resources. Being many of these countries being shitholes many of the resource extraction are done by multlinational companies that would interfere in the politics of the country to keep ores flowing.

Even without foreign funding though, being these countries have few stable institutions, it's close to impossible for them to start operations on their own.

[BartS]

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?

Many underdeveloped countries do not have the infrastructure to transform their natural resources into something else that they can sell, so they do not really have any option and they have to export those resources to other countries, you may not like it but that is the way it works.

The current economic system has failed everyone except those that are at the very top and take the decisions since they know what it is going to happen and when and they can take advantage of this.

[TastyChillySauce00]

The problem with underdeveloped countries is that they just sell raw materials to developed countries for any cheap price. They don't manufacture their materials, they don't have their own technology and they don't export expensive commodities to strength their economies.
Only technological countries can be wealthy nowadays and offer life quality to their people, others will keep suffering with their poor economy and uncontrolled inflation levels, heavily intervened by the government.

That's most of the case nowadays. The industrial country will always benefit from the immense value addition to the product they produce meanwhile the underdeveloped countries will just become a ricefield. That happens not because of lacking human resources but simply because of mismanagement and they keep doing the same mistake over and over again. The lack of support for entrepreneurship also contributes to the low GDP and underdeveloped countries seem to forget that taxes generated from the private sectors are immense. Most of the developed countries like South Korea, Japan or even Singapore have some kind of big corporation that takes some percent of the world market share meanwhile the underdeveloped countries have nothing or if there's a big corporation it just dominates their own country. Corruption and bribery are common practices and speaking from my experience, these are just too many it feels so stupid to even start a business. If an underdeveloped country will just stay that way, there's no room for them in the future. The economic growth in underdeveloped countries may seem promising with most of them reaching 5% but the world is going ahead and all those developed countries also racing to grow their economics and frankly 5% of $0.5 - 1 Trillion GDP economic is a lot less than 2.5% of $20 Trillion GDP economic.

[tbterryboy]

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?

They should be blamed for bad their economy is, especially their governments should be the ones taking most of the blame. If you check out these developing countries you will notice that their government is very corrupt. Most of them don't do things that would favor the country in general, because they are bent on pursuing their own personal gain rather doing things that would help the country grow.

Lots of them steal money from those countries and push them abroad to developed countries, why won't their countries fail? The worst part is that the foolishness of their leaders never end,they still continue their greedy, corrupt practices and the way I see it these countries may never be developed (of course, that's if they never change).

[drlukacs]

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?

no, it's called selfishness and selfishness only brings bad things to them. an economy without trade leads to poverty in that country. If a country is self-sufficient, then how can it grow when it is only made and eaten? when they have a surplus on a product, what do they do with it when there is no trade with foreign countries? they will certainly continue to be poor. So for poor countries, they also have to learn a lot about the rich countries' culture and continually improve production to make the country more developed.

[TastyChillySauce00]

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?

no, it's called selfishness and selfishness only brings bad things to them. an economy without trade leads to poverty in that country. If a country is self-sufficient, then how can it grow when it is only made and eaten? when they have a surplus on a product, what do they do with it when there is no trade with foreign countries? they will certainly continue to be poor. So for poor countries, they also have to learn a lot about the rich countries' culture and continually improve production to make the country more developed.

Trades is indeed necesssary for a country to grow but a country also need to make a higher valued product out of their raw materials and not just selling it off to foreign country. Most of the underdeveloped country always failed in this respective field and most of the exports are from private sector owned by foreign investors. A country can't grow without trade but will always stay poor if what they capable off is just selling things they have even worst if it's unrenewable resources.

[EdvinZ]

Hyperinflation is usually seen in countries where corruption is high and rulers do not care about the welfare of their citizens. Instead, they plunder their own country, selling its resources for small prices to more developed countries. The cure for hyperinflation is honest and loving rulers.

[breathlessz]

Hyperinflation is usually seen in countries where corruption is high and rulers do not care about the welfare of their citizens. Instead, they plunder their own country, selling its resources for small prices to more developed countries. The cure for hyperinflation is honest and loving rulers.

right, as divenezuela, where it was reported that corruption there was rampant, so the country became chaotic in its economic system. to overhaul governance is indeed not easy, and requires time. until finally they use crypto to be the payment instrument

[Arkann]

Hyperinflation is usually seen in countries where corruption is high and rulers do not care about the welfare of their citizens. Instead, they plunder their own country, selling its resources for small prices to more developed countries. The cure for hyperinflation is honest and loving rulers.

right, as divenezuela, where it was reported that corruption there was rampant, so the country became chaotic in its economic system. to overhaul governance is indeed not easy, and requires time. until finally they use crypto to be the payment instrument

If the government of the country is made up of the majority of corrupt officials, then the country's policies are pursued accordingly.  In any case, the people do not get any benefits even from the use of cryptocurrency, since the government will do everything possible to rob a person even after the legalization of cryptocurrency.  The whole problem with the economy and social protection of citizens is primarily due to the corresponding government, which clearly needs to be changed.  In a country like Venezuela, it will be very difficult to use cryptocurrency, what did you do to stay incognito.

[rnsribeiro]

Hyperinflation is usually seen in countries where corruption is high and rulers do not care about the welfare of their citizens. Instead, they plunder their own country, selling its resources for small prices to more developed countries. The cure for hyperinflation is honest and loving rulers.

right, as divenezuela, where it was reported that corruption there was rampant, so the country became chaotic in its economic system. to overhaul governance is indeed not easy, and requires time. until finally they use crypto to be the payment instrument

I wonder if new crypto payment system in their country will solve existing problems.
I mean it is actually harder for corruption to exist in it, but its still possible.