Global Economy

Summary

The transcript discusses the dominance of the US dollar in international trade and the challenges it faces from emerging economies like the BRICS nations. It touches on historical currency shifts, the importance of a stable currency backed by tangible reserves, and the potential collapse due to overproduction. The speaker also addresses the impact of globalization on the environment, food security, and intellectual property, highlighting the need for sustainable practices and fair trade policies to ensure economic growth without environmental degradation.

Takeaways

• 🌐 The script discusses the dominance of the U.S. dollar in international transactions and the historical shift from other currencies like the Euro.
• 📉 It highlights the challenges to the U.S. dollar's supremacy, including the BRICS countries' potential move towards using gold as a standard of currency.
• 💡 The importance of practicality in currency use is underscored, with the dollar's current prevalence due to its widespread acceptance in global trade, especially for commodities like oil.
• 📈 The script mentions a potential economic collapse due to the overproduction of currency without a corresponding increase in value or goods, referencing historical examples like the Weimar Republic's hyperinflation.
• 💼 The role of the World Trade Organization (WTO) in protecting intellectual property rights and the strategic non-participation of China in the WTO to avoid such constraints is noted.
• 🌾 The impact of economic globalization on food security and environmental degradation is explored, with concerns about genetically modified organisms (GMOs) and their long-term effects.
• 🌳 The script raises the issue of environmental sustainability, questioning the irreversible effects of GMOs on the environment and human health.
• 🛑 It points out the problem of food hoarding by businesses to create artificial shortages and inflate prices, which can lead to social and economic instability.
• 🚫 The negative impact of importing on domestic industries is highlighted, suggesting that countries should prioritize local production to support their economies.
• 📊 The discussion on global income inequality and the stratification of the global economy is touched upon, with a focus on the challenges faced by developing countries like the Philippines.
• 🌍 The script concludes with a reflection on the need for a balanced approach to globalization, considering both economic growth and social equity.

Q & A

What is the current dominant international currency mentioned in the script?

The current dominant international currency mentioned is the U.S. dollar.

What was the international currency before the U.S. dollar according to the script?

Before the U.S. dollar, the script suggests that the Euro was the international currency.

Why is the U.S. dollar used for transactions like buying crude oil?

The U.S. dollar is used for transactions like buying crude oil because it is practical and has been established as the standard for international trade.

What is the challenge to the U.S. dollar's dominance mentioned in the script?

The challenge to the U.S. dollar's dominance is the declining demand for the dollar and the rise of alternative currencies, possibly gold, as proposed by countries known as the BRICS.

What are the BRICS countries and what do they represent in the script?

The BRICS countries are Brazil, Russia, India, China, and South Africa. They represent a significant portion of the world economy and are challenging the use of the U.S. dollar in international trade.

What historical currency was used during the Spanish colonization period according to the script?

During the Spanish colonization period, the script mentions that the peso was the currency used by the colonizers and in the countries they colonized.

How does the script describe the economic impact of the United States' influence on the world?

The script describes the economic impact of the United States' influence by stating that the U.S. controls the world through transactions, particularly in the sale of crude oil which must be transacted in dollars.

What is the concern about the continuous printing of U.S. dollars without a corresponding value?

The concern is that the continuous printing of U.S. dollars without a corresponding value could lead to a collapse in the currency's value and potentially devalue the money without a reserve or basis for its value.

What is the role of the World Trade Organization (WTO) in protecting intellectual property according to the script?

According to the script, the WTO plays a role in protecting intellectual property by ensuring that if a country is a member, its registered products are recognized and protected in all member countries, allowing for legal action against imitators.

Why did the script mention the issue with genetically modified organisms (GMOs) in the Philippines?

The script mentions the issue with GMOs in the Philippines to highlight the potential environmental and health risks associated with such modifications, especially when the long-term effects are not fully understood.

How does the script address the issue of food security and environmental degradation in the Philippines?

The script addresses food security and environmental degradation by discussing the impact of GMOs, the potential for monopolistic practices in food distribution, and the importance of sustainable agricultural practices that do not compromise the environment.

Outlines

00:00

🌐 Dominance of the US Dollar in Global Economy

This paragraph discusses the dominance of the US dollar in the international monetary system and how it has become the practical choice for global transactions, particularly in the purchase of crude oil and other commodities. It highlights the challenges to the dollar's supremacy, including the rise of the BRICS nations (Brazil, Russia, India, China, and South Africa), which propose alternatives like gold. The paragraph also delves into historical currency shifts, from the Spanish peso during colonial times to the Euro and the current US dollar, influenced by political and economic power dynamics. It touches on the potential for economic collapse due to excessive money printing without corresponding value in goods and services, and the importance of a stable currency for economic health.

05:01

💡 The Role of Currency in Global Trade and Economic Alliances

The second paragraph explores the necessity of currency in modern trade, arguing against the practicality of barter systems due to the perishable nature of commodities. It emphasizes the US dollar's role as an international currency, facilitating exchanges between countries. The paragraph also discusses the challenges posed by countries like those in the BRICS group, which make up a significant portion of the global economy and propose the use of gold as an alternative to the dollar. The geopolitical implications of energy dependency are highlighted, using Russia's oil supply to Europe as an example. The paragraph concludes by mentioning economic alliances like NATO and ASEAN, formed for mutual protection and commerce, and the importance of understanding economic globalization and global trade.

10:02

🚀 China's Strategic Approach to Global Trade and Intellectual Property

This paragraph examines China's strategic approach to global trade, particularly its decision not to join the World Trade Organization, which allows it to avoid strict intellectual property regulations. It discusses the implications of this choice for the protection of inventions and trademarks, suggesting that China's non-participation makes it difficult to hold the country accountable for imitations or infringements. The paragraph also touches on the broader themes of economic globalization and sustainable development, hinting at the need for a careful balance between innovation, environmental protection, and global economic participation.

15:02

🌱 Environmental Impact of GMOs and Food Security Concerns

The fourth paragraph addresses the environmental and health concerns surrounding genetically modified organisms (GMOs), using the example of a genetically modified eggplant in the Philippines. It raises questions about the long-term sustainability and safety of GMOs, noting that scientists were unable to conclusively prove their safety. The paragraph also discusses the broader issues of environmental degradation and food security, suggesting that the overproduction and monopolization of food by certain businesses can lead to artificial scarcity and inflated prices. It calls for government intervention to prevent hoarding and ensure a stable food supply.

20:05

📉 Economic Manipulation and the Impact on Local Farmers

This paragraph delves into the manipulation of markets by businesses and government entities, which can lead to artificial shortages and inflated prices. It discusses the practice of hoarding commodities like sugar to create a false sense of scarcity and drive up prices, which can be particularly damaging to local farmers who struggle to compete with lower-priced imports. The paragraph highlights the need for government action to prevent such practices and protect local industries, suggesting that a focus on exports over imports is crucial for a country's economic growth.

25:07

🌍 Economic Globalization, Poverty, and Inequality

The final paragraph sets the stage for a discussion on economic globalization, poverty, and inequality. It invites reflection on the Philippines' position in the global economy and the potential for the country to rise to middle-income status. The paragraph introduces the concept of global stratification and encourages an analysis of how economic theories apply to the real-world dynamics of wealth distribution and development. It also poses a question about the feasibility of continuous economic improvement in the context of global economic pressures.

Keywords

💡International Currency

International currency refers to a currency that is widely accepted across different countries, facilitating global trade and transactions. In the video's context, the U.S. dollar is mentioned as the dominant international currency, highlighting its importance in global economic activities such as oil purchases. The script suggests a shift or challenge to this dominance, indicating the evolving nature of global monetary systems.

💡Pre-colonial

The term 'pre-colonial' refers to the period before a region was colonized by foreign powers. In the script, it is used to contrast the monetary systems of the past with the current dominance of the U.S. dollar, suggesting that different currencies, like the Euro, were used for international trade before the dollar's rise to prominence.

💡Monetary Policy

Monetary policy involves the actions of a central bank or government that influence the availability and cost of money in an economy. The script discusses the potential negative effects of printing money without a corresponding increase in value, such as devaluation and inflation, which are outcomes of certain monetary policies.

💡BRICS

BRICS is an acronym for five major emerging national economies: Brazil, Russia, India, China, and South Africa. The script mentions these countries as a collective challenge to the U.S. dollar's dominance in international trade, proposing alternatives like gold as a standard of currency, reflecting their significant role in shaping global economic policies.

💡Economic Globalization

Economic globalization is the process of increased interconnectedness and interdependence in the world economy. The video discusses the impact of globalization on local economies and the challenges it poses, such as the influence of the U.S. dollar and the potential for economic instability due to over-reliance on a single currency.

💡Genetically Modified Organisms (GMOs)

Genetically Modified Organisms are living organisms whose genetic material has been altered through genetic engineering techniques. The script refers to GMOs in the context of agricultural advancements, such as larger fruits, but also raises concerns about their long-term environmental and health effects, illustrating the complex relationship between technology and sustainability.

💡Environmental Degradation

Environmental degradation refers to the deterioration of the natural environment through processes such as pollution and deforestation. The video connects environmental degradation with unsustainable agricultural practices and the potential risks of GMOs, emphasizing the need for caution in human activities to ensure environmental sustainability.

💡Food Security

Food security is the condition of having reliable access to a sufficient amount of affordable, nutritious food. The script discusses the challenges to food security posed by factors such as monopolization of food distribution, hoarding, and the impact of global economic forces on local food availability and prices.

💡Intellectual Property

Intellectual property refers to creations of the mind, such as inventions, literary and artistic works, and symbols, names, and images used in commerce. The video mentions the importance of registering intellectual property to protect inventions and trademarks from imitation, highlighting the role of legal frameworks in fostering innovation and creativity.

💡Trade Imbalance

A trade imbalance occurs when a country's imports exceed its exports. The script uses the concept of trade imbalance to discuss the economic strategies of countries, emphasizing the need for a country to sell more than it buys to improve its economic standing and the potential negative effects of excessive imports.

💡Hoarding

Hoarding in an economic context refers to the practice of withholding goods from the market to create artificial scarcity and drive up prices. The script describes hoarding as a manipulative practice that can lead to false perceptions of scarcity, such as in the case of sugar shortages, and its detrimental effects on consumers and producers.

Highlights

The origin of the dollar's dominance in international currency is tied to the country that governs the world economy.

Before the U.S. dollar, the Euro was the primary international currency.

The demand for the U.S. dollar increases due to its practicality in global transactions, especially for commodities like crude oil.

There is a current challenge to the U.S. dollar's dominance by countries known as BRICS, proposing alternatives like gold.

Colonizers historically influenced the type of currency used in colonized countries, such as the Spanish peso.

The British Empire's influence led to the Euro being used as an international currency for Europe.

The U.S. dollar's control over global economy is exemplified by contracts requiring oil sales in dollars.

The value of currency may not reflect its worth due to excessive printing without corresponding value.

The Philippine peso is used for local transactions, but international trade requires currency conversion.

Economic history shows that currency value can collapse due to overproduction without underlying value.

Barter systems are impractical in modern economies due to the need for a lasting, universally accepted medium of exchange.

China's non-participation in the World Trade Organization allows them to avoid international intellectual property regulations.

Genetically modified organisms (GMOs) like Bt eggplant have raised concerns about long-term environmental and health effects.

The potential negative impacts of GMOs have led to their discontinuation if irreversible effects on the environment or human health are suspected.

Food security and production can be manipulated by monopolistic practices, creating artificial shortages and inflating prices.

Government intervention is necessary to prevent hoarding and ensure fair market practices in times of food crisis.

Economic globalization has led to discussions on global income inequality and the stratification of the global economy.

The Philippines' economic status as part of the global South is examined within the context of global economic theories.

Transcripts

okay it's it's a reality right now if

You observe that there is really a

challenge to to

tell you the origin of this dollar

actually it depends on what country uh

governs the world if you notice during

the pre-colonial

um the monetary International currency

was different only now that it was U.S

a dollar that dominates the

international currency but before it's

actually Euro okay that depends on which

country is most

um practical

so since retina is practical to use

dollar renew when we and deal with other

countries like buying crude oil and all

other products it must be converted into

dollar that's why right now there is a

shoot up

okay or the increase of there's a spike

of the demand for dollar but some

economy says that it may not be good

because they keep on producing Gala

without any basis

okay just that at this time it's U.S

that controlled the world okay

um they

dominated all transactions so it is very

practical right now to use dollar but

lately there's a challenge okay there

was a declining the demand for dollar

more so that there are

um five countries okay known as the

bricks that challenges this economic

um demand for the use of dollar okay so

the challenge it by probably using gold

which is now the standard of

um currency

okay and it may be you want because the

Demand right now is to buy purchase or

purchase these Chinese products so

this is actually a challenge as to what

um denomination that they're going to

use but if you trace back history the

world economy is governed by the

colonizers in Spanish period all of the

countries that were colonized

that they colonize uh use peso okay

Ola currency that was used by the

Spaniards and all of the country that

they colonized also use the same

currency

so almost all of the world at the time

use that currency but because of that

um

lately they were replaced by their

colonizers like the Britain also

dominates the world it was Europe okay

uh Euro for Europe okay as a

international aspect as their currency

okay but right now we know of the

influence of U.S so it's the dollar

so we control the economy by entering

into a contract with

with Saudi Arabia that when you transact

business

um that that crude oil must be sold in

the dollar since all of us also purchase

dollar purchase purchase oil okay for

our economy then we have to convert our

peso to dollar so the exchange rate

which is

now a great demand at present okay after

the pandemic

makes that currency strong or meaning

it's in demand but it's the value that

it is worth May no longer be the same as

before so in fact there may be a

possibility of a collapse why because

they keep on printing without

um

knowing first how much

um how much is the value of it because

when you make money

there must be a reserve or something

that can be a value

okay so in other words when we uh use

dollar it's more of an international

currency but it's just like in the

Philippines that we have peso as a

motivation for all Commodities in the

Philippines okay but we're gonna just

simply print it otherwise it's just a

mere people without any value okay so

when we exchange that to other currency

it may not be that valuable anymore

that's why decentral Bank of the

Philippines also limits it okay there

was a time in history when

um I think it was in Germany where when

you when they purchased one one bread

it's worth almost thousands of

of their currency why because it really

devaluates because they do not have

products that can be in exchange of the

money

okay so they have to produce first in

order they must have to increase first

their GDP so that there the money has an

equal value because they keep on

reproducing money because it's the

control of the government without the

products or services that they render or

they produce then it may be of a less

value

okay

so

well can we not also how can we

how about if we will not use money

in all our transactions well it's very

it's not practical anymore why because

we need you can just simply Bart there

okay let's say you have a

equal amount I need your cow and you

need my face all the tourists to barter

we're gonna do that anymore because you

know this Commodities has a these are

perishable

so to make it

um lasting then we have to convert our

our products into money which can last

okay for a long time

so that is the the nature of our economy

so in in

the world

okay we have dollar so if we have peso

in all in our country the world also you

use an international currency to to

exchange other products that are found

in other countries so right now we use

dollar

okay there are challenges

um from other countries

they propose a better probably

International currency like the use of

gold okay so these are the countries

known as the brics and Brazil Russia

um India

um China and South Africa

okay so do you want to challenge and

these are actually big groups and they

constitute probably 40 of the world

economy so although there are only few

of that but they contributed much in the

exchange of

of

International currency because these are

very active in

in the

in Commerce like Russia sells all their

all their oil to European countries and

you know when winter comes probably

people there will die okay because

there's no electricity there's no

there's no

um

fuel which will be used to

to

warm their body during winter season

okay so it's coming already but you know

people are people are are paying higher

um

higher fees for for the purchase of this

crude oil

now

exactly that is what the president of

United States that Europe should have

their own alternative okay so they

depend much on the supply of Russia

which actually resulted for this

um unfortunate event in our history

because Putin sees that this Europe will

probably bow to him because they depend

their economy on the Russian

um supply of gas okay imagine all Europe

all parts of Europe including Germany

which is their former enemy during the

time of Hitler also depend

entirely from Russian oil okay so that's

how Putin okay you know him already

controls the world in terms of supplying

the crude oil in Philippines we also

purchase their crude oil okay although

there was a sanction from the United

States because they might use this money

they might use this money for the

purchase of the crude oil at the project

that could oil for the

manufacturing of the

armaments to

or missiles for

to to

continue his

illegal acts of invasion okay so that's

how the global economy right now works

so other countries also groups

themselves for Mutual

um protection and commerce NATO group

themselves for Mutual defense and

protection other countries like in Asia

we have asean and basically it's all for

economic purposes it was created for

economic purposes

now one we have is to generate insights

on economic globalization and global

trade okay

um how about this global trade I want to

tell you okay I keep on repeating this

one that other countries are also wise

China is very wise why because

um although they

they're part of the permanent member of

the United Nations there is one group

that they do not

um become a member of the World Trade

Organization okay uh these are groups of

uh countries which

um because of in practicality of

registering all the inventions you have

in other countries to be for it to be

recognized and you can claim therefore

the

the right economic rights if somebody

would imitate your product all they have

to do is to become a member of the of

the World Trade Organization

he says that if your products is or if

your country is a member of that the

protection not only is in in the

Philippines but also to all countries

that grant that are members of the World

Trade Organization

so in other words if you invented

something let's say invented or

um you had a product okay trademark

like um

uh Levi's granting it's in made in the

Philippines you don't have to go to

other country and register it for it to

be have to be protected and therefore

somebody would imitate your product you

can claim for damages

okay

so as long as you're a member of the

World Trade Organization if you register

your products in the country where you

are all of the countries who are members

of the World Trade Organization also

recognize that registration

okay so what what happened is that China

did not participate

which is why if they imitate the

products of other country it's difficult

for the inventor

okay

or trademark owner

to sue China why because they are not a

member okay they are not bound by The

Invention okay they can just simply

copied it okay so probably You observe

most of the products right now are

made

are made in China

okay and

you will know it because the it's not

registered okay if it's purely

if it is genuinely in

I think continue I mean

there must be a word r it means it's

registered

okay so at the top of the

trademark or trade name there is a word

r it means it is registered

okay

so I don't know if You observe that but

basically this is common to all other

inventions that they put there are it

means it is registered in the Bureau of

buttons under the intellect um

intellectual property

okay what do you mean by this

intellectual property if you have

invention it is your own

um it is your own effort that you come

up with a useful

a tool for the solution of human

problems

if that if anybody will just copy it

that may be unfair on your part so to to

encourage you to do more and to invent

which actually in other countries they

are more into it they give incentives to

those inventors

you you will be protected okay all I

have to do is to register it

in the Bureau of buttons to prove that

it issue so anybody would copy or any

similar or

um

imitation

or similar or seemingly similar to

to the origin

you can claim for damages otherwise

it will defeat

the the oh it will

put a stop to those who have uninvented

mind

okay

to increase that you will be protected

and if there somebody would claim or

would imitate your product you can claim

for damages

so if there is a loose on your

income because somebody copied or

imitated your company

then you can be awarded with the amount

of the of the loss you have

provided also you have to present the

proof of damage as like a decrease of

the sale of your products

Okay so

and another damage is like moral damages

or

um put a punishment to those who simply

copied it will be awarded to

you're a real owner now elaborate

further the concepts of economic

globalization and sustainable

development focusing on environmental

degradation

can food Security in the Philippines now

there are many inventions in the

Philippines okay as I've mentioned

okay but it should be more inclined to

Environmental Protection One

case I've read about Environmental

Protection is an invention I don't know

if you are aware of that baby alone okay

it's bbha I'm genetically modified

organisms GMOs

okay the modified

the gene of this plant and to make it

more for the more

um productive

as a result the fruit of that

um of that plant becomes enormously big

compared to an ordinary implant without

that genetical modification

okay

and also my ease okay corn was

also started to make it more productive

which resulted to a bigger

um fruit or bigger

type

of corn so that was effective but

there's another

uh invention or

um discovery about the use of this

and genetically modified organism

they experimented this

um Talon or eggplant which resulted to

the

to the

production of a bigger type bigger type

of eggplant but the question is whether

or not

it is sustainable or are are they really

sure it was us in court if they are

really sure that there is no

environmental effect to human beings

okay

so the result was that they are not so

sure they are not so sure as to each

effect

so because they are not so sure of its

effect to human body

and when it will really affect it's no

longer reversible

then it was not continued

okay that's the only problem here we

actually invented a bigger type of along

it's a genetically modified but the in

the scientists failed to prove

themselves

a simple question

okay weather

that invention would have an

environmental effect

so since they were not so sure of the

answer it was not continued

why because we cannot just simply agree

on something and we cannot

um we cannot

um

solved anymore that it's resolved it

happened many times okay in our place we

had before a

um

a golden cohort was that a problem okay

we do not have good in call but one of

the one of the

a resident there what

put that at us he said he got it from

somewhere else somewhere from bisca it

is known for their agriculture he

brought

that golden called to his house with it

with

it with Kang Kong but during the flood

this

um

this one overflows and eventually goes

into the rice field

okay so at first they do not eat

um

rice

okay

rice talks but later on because of

survival there's no food around

all I have to do is to adapt to the

environment

so how did they adapt they eat what they

cut what this what they see

so since we are in the rice paddies so

what

um that the only food you can see are

the rice so it becomes a pest already

Okay so until right now you know it

cannot be can't be stopped anymore

so that's the effect

so we have to be very careful in

whatever we do okay otherwise the effect

will be catastrophic

so similar to biblical said they are not

so serious effect so that's the reason

why it was stuck

been so sure that it has a an

environmental effect or when the effect

is calculated and it can be reversible

then probably it is it can be approved

okay focusing on environmental

degradation and then food security

so right now I think because of so many

catastrophes okay typhoon pandemic

um

there is really a less

production okay but sometimes it only

appears that it is less but in reality

it's not how how come

because most of the

businessman who controls the

distribution of this food

okay

um they monopolize okay they are done or

really control and they if they will not

produce the they're going to buy all the

products and then they just control

the output

so if they will not release

the let's say the the food

it will create a scenario where there is

shortage

yeah if this and if they're shorted then

everything will goes up all Commodities

but in reality it is just a word

sometimes the government will run sucked

raid those warehouses to prove that

um the the

the the

inflation is not really true okay

sometimes they are the one who creates

the prices like you know in supply and

demand if the very short days like no

they although there's no shortage

although all you have to do is to Simply

do not sell

okay The Horde let me just wait for the

right time to sell it at a higher price

so

if they do that it's actually a

violation of the law and the same time

it create a false Market

now

that should that should be the

activity of the government

in times of food crisis you have to go

to the warehouses and and prove to the

to the country that

uh what we have are

temporarily and

they just simply hoard yeah of course

you know of uh right shortage right so

not trying sure things the sugar

shortage okay so you've heard of

um there's no more stocks in rice in in

sugar

that is why when you buy I don't know

now at present he like

um Coca-Cola or any

um

beverages

like um soft drinks

for example

it's very expensive why because you they

use sugar and they believe that there

was a shortage really but in reality

there was none

Okay the reason is that

this Bureau of Customs also earn money

from

from the

business apart from the businessman so

they are not going to

sell their products all they have to do

is to import from other country because

they created a scenario where there is

your kids

but in reality they are just hiding the

the sugar in their warehouses

now

why because most of these people also

have connections in other countries okay

so they're going to buy a certain amount

uh

um let us say sugar and then sell it in

our country for a higher price what is

the result of that that discourages the

farmers why because they cannot their

products will not be sold okay or if it

is sold it will be at a lower price

because of the competition from other

country which is also at lower price

okay and this sometimes give frustration

to Farmers which resulted to become more

um unproductive why

they spend much on the production but

during her recession

um somebody will just simply

sell the products which is of similar

which is similar to what the farmers are

producing

so at a lower price so what happened is

that this farmer will also

um compete

so that their products will be sold as

well so that they can get their Capital

back

okay so it will not be at the lower

price so what is the effect they do not

actually earn

okay

now so if I am the President I would

simply do not import because in income

competing in income of a country it

simply means that your export is higher

than the import

if your importation of let's say buying

product from other country is higher

than what you sell then you do not earn

it must be the other way around you have

to sell

more than what you buy from other

countries

okay

so in in our practice in the Philippines

we normally keep on buying products from

other country

that's why we we do not

really improve

now uh evaluate publish researches on

economic globalization poverty and

inequality with imposition Global income

inequality

the third world right Philippines are

not present but could we continuously

rise up become a middle income

country

okay the global South and a global City

analyze theories of global

stratification based on their usability

and global economy

now there is an activity

which you have to

answer okay so you put their you copy

this one and answer in the

a Google Classroom okay and put there

check or wrong just copy and answer this

one