The prosperity of economies realized monumental benefits from the technology revolution of innovation. It has enabled major developed economies to penetrate the market place of under developed and emerging economies to a degree not before possible.
Therein is provided the new frontier of economic expansion, opportunity to grow economies which creates a path to revitalizing from the devastation of a brilliantly managed modern version of a depression and escape from governmental blunder. And it is this spectacular innovation and technology revolution that has proved elusive and defiant of precedent jurisprudence principles.
Technology ushered in a financial environment that changed the ground rules of the two most important components of this access to markets: international trade and financial capital movement. The expansion of global trade resurrected themes of old, the principles of mercantilism.
Mercantilism is the raw basic need dating to the early fourteenth century where Italian merchants, the Medici’s, traded along very ancient north-south routes. This was generated by the need to import and export. The underlying philosophy was exports were to exceed imports, the origin of surplus trade. Trade continues as a barometer of commerce and its attendant benefits of market expansion.
However with the innovation revolution, the fluid movement of capital between global financial markets found that the speed and velocity magnified the dynamics and influences of economic progression. The international community did not possess an international apparatus to thwart the adverse effects of such revolutionary innovation. This influence of capital velocity by innovation formed new complexities of dramatic increases of risk.
It was the effects of a transformation of external market capital to particular domestic markets with unprecedented lighting speed and in unprecedented amounts that created financial risks that were unforeseen. And the same was true with respect to exiting capital of domestic internal markets to external Euro markets. Such enormous excesses of liquidity nurtured domestic economies as they basked in these disproportionate allocations of global capital.
A binge occurred and became intoxicating for the most sophisticated economies. It engendered irresponsibility and one of history’s most imprudent and dysfunctional episodes of government. The thing
