how the economy affects crypto

We find the second globalization from 1980 to the present. We differentiate it from the first in that it includes most of the world economy. And the international convergence of manufactured price-production. Its role in international trade is given by the liberalization of the international economy, both through its production and consumption routes, with a great variety of products and lower prices, which gives us great purchasing power. We find this due to new technologies and the relocation of production, which comes from the hand of FDI, and this from the hand of growth, complementing each other. In 1980, with a significant number of countries in debt to the United States, oil prices rose, creating a lot of inflation. The US is dedicated to making restrictive policies. The emerging countries therefore liberalized their economies, generally adapting floating exchange rates, facilitating the liberalization of foreign trade, and currencies can be devalued if interested, etc. The participation of developing countries is gaining importance in this trade in exports and imports of manufactures, as well as services, and each year they are increasing. But there is still a high regional concentration of trade in rich countries. This liberalization of the majority of developing countries was one of the keys to the second globalization. More or less great liberalization, and with its key piece as was the production of manufactures. The generalization of ICTs will improve instant communication between continents at low costs, thus facilitating investment (FDI), as well as speed in transport. This FDI boosted the developing countries in their own industry and exports. The causes of the slowdown in the BRICs are: In Brazil due to its low domestic demand, and its exports, and its government to implement reforms. In Russia because of the fall in oil; in China due to its internal problems, such as its exhaustion in investor-export growth, which forces it to change its economic model to one where service and consumption are main, and as its debt; and India has benefited from this moment from China and Russia, from the former due to competition.

The Great Recession of 2008 was the product of the rise in the US interest rate. There was a global banking explosion, so the banking crisis affects all countries, unemployment accelerates, and therefore production falls, which means for the developing countries the fall in FDI, international aid and the number of emigrants, so central banks and governments will have to intervene, with bailouts, providing liquidity, etc., so the public deficit will increase and income will be reduced, something that we are currently experiencing with COVID-19, where some countries like Brazil are they are being severely affected since they do not have the same resources as some PDs, and they cannot cope with this health emergency like other European countries.

We can talk about the availability of natural resources, taking Spain as an example. Spain is a country where a large amount of its natural resources are imported, such as natural gas that comes from Algeria, oil, since Spain does not have oil wealth, and it is located in one of the European countries with the highest consumption of these Per inhabitant. The main wealth of Spain comes from the service sector, therefore we observe that it is not necessary a large amount of national natural resources to grow (or be a developed country). We can see how, for example, other countries have developed thanks to the extraction of national natural resources, as in the case of Great Britain in the First Industrial Revolution, it based its economy on factories and on the availability of coal for the steam engine, trains. etc. Currently, the countries that are developing the most are the countries that have the most natural resources, as is the example of India, which is one of the main dedicated to the textile sector, since there labor is very cheap and they have many natural resources . For example, here one of the largest industries in the world such as Inditex (fully capitalist) is supported to be one of the best valued companies in the world. The current level of consumption is not compatible with the environment since no time in humanity has so many resources been used as now. This is observed in the dietary model of PDs, reflected in serious health problems, and above all tragic consequences with the environment (as we have observed, during this pandemic the carbon footprint has been reduced). We can conclude that it is necessary for the consumption of products that damage the environment to be more responsible.