Financial Problem – Need Financial Suggestion

The time of financial crisis and people facing problem with finance. There are no solid suggestion in the world by Finance minister or news paper to escape it. But I have some ideas to resolve the financial problem. As I have already mentioned in my previous post about financial crisis in the post of “Financial Crisis Analysis” and in the post I have given some solid reason of the crisis.

It is very clear that financial crisis is actually crisis of market. The product which has been produced are on very slow sale. The crisis is selling problem of products. How it occurs, I have already mentioned in my previous post.

Here I want to give some suggestion to resolve it. Current system of our world is capitalist system. Capitalist system by its nature produced the product for sale not for use in the conditions the contradictions comes with financial crisis.

Capitalist systems produced the product for market and earn profit but the profit has not been distribute as publicly. The profit goes in the single hand. The contraction creates the gap in society and market in both.

In the one hand we see the money and money but on the other hand only the need. The persons who have money, have no need to use all the things which has been produced. In the other hand the person who have need, money is not there to buy the product.

We know all the money is the equal of all the products of world or a nation. The money is exchange value in my previous post as I mentioned. Here the money distribution is not same with the productions due to gaining profit. In this conditions the production of products accumulate in one place and the money became capital on that place automatically.

I want to say if we produce the product for human society not for market then the problem of financial crisis will solve by itself.

The human society run under a system and currently it is in market system. If we make it social system and people energy work for human being needs fulfillment then it will remove financial problem automatically.

I am talking about financial problem but the problem creates by a system not a person so, the system if change, the financial problem remove automatically.

Financial Crisis Analysis

Today, we are facing now financial crisis in all over world. I think it is better to introduce about financial crisis at first. In my point of view financial crisis is the stage of capitalist system. The crisis comes time to time in the system and it is not new. We know, 1929 financial crisis was world’s biggest crisis and after that we face two world war to reduce the crisis. You will think I am talking about war and it is not related to financial crisis. But it is not true. Basically, war comes in the stage of crisis.

At first, we should discuss about capitalist system because the crisis has been produced by this system. It is simple every state has system to run that. Currently in the capitalist state what is the system to run the state we will see here. I have already said it is not new financial crisis in the system because every after every 10 years we face the crisis and after some time we forget all the things.

I think here should discuss about capitalist system something. Capitalist systems is different from its all previous system because it runs on money and capital. Now, the question is what is money? Money is nothing but a mediator. It is only exchange value. Suppose, we have a product A and money B then we can exchange from each other if the value is same.

To run every system and every thing basic is productions and products. The basic things is product and money is secondary thing which runs as exchange value. But in the capitalist systems the capital ruled over the production. Here creates all the problem because capital runs but the product remains constant in the situations we face some times inflations and some times crisis.

Now, we will see how the production increase and the sell of products goes in down in the system. The product has been produced for market not for people uses in priority. For example, if we are not able to pay a lump-sum for a product we can’t buy however the product after some times will be diminish. But the run market the product will not be sold.

It is the basic laws of production in the capitalist system. Now, we will discuss about circulation systems. In the circulation system the product comes in market but the money doesn’t come with that in market to buy the product. For example, in a company a labour work 8 hours and produced 100 rupees product but after the 8 hours he get only 20 rupees as a labour value. In this condition 80 rupees goes in the pocket of capitalist. We can assume that if the capitalist spend 40 rupees more to buy the row material, labour, machine etc. however he has still 40 rupees in his pocket. In this conditions in the market the product has been sold only the rupees of 60 and product of rupees remain in the store of capitalist. In this cycle the production accumulation became higher and crisis comes itself.

The capitalist system in this situations use the financial loans to face the problem which we can see today with the banks. Banks are trying to give more and more loans to the consumer. What is the reason behind it? They want to sell their product and want to capture the future saving of the people. I have already written about it with the topic of loans – killer of people future savings.

Lastly, the capitalist system can’t face the problem forever and can’t remove the financial crisis forever because the cycle of capitalist system is very bad. We can say the current scenario of the India. From the 2006 to 2008 the market was on boom because people got the loans and bought the product which was already produced before production of that.

People were thought that India is growing and market is in boom but what about today’s scenario. The market is in its real conditions and all the growth remain same of 2005. Actually, it was not growth it was the boom of capitalist system by the loans. Actual, production was remain constant then how a country can develop and growth. Only the consumptions was developed not production that is why after 2 years again we are facing the problem.

I think it is the analysis of financial crisis in the term of capitalist system. Now, from here we can deal what can be better options to escape the financial crisis.

I will write that in my next post with some example.