Currency Wars and the Making of the Next Financial Crisis in the Global Economy
February 12, 2025
During the year 2008, America was reeling from a real estate crisis. This crisis was so severe that it had thrown the entire financial system in disarray. It had also caused the real estate prices to plummet. The prices were at a record low. The price of the average house in America was 40% below […]
In the previous two articles, we have studied the different types of mortgages from the borrowers as well as from the lenders point of view. In this article we will look at some products which were called the byproduct of financial innovation. At first these products were applauded as being solutions to many problems. However, […]
The Oil based Paradigm and its Impact on Businesses and Societies The whole edifice of society is built on energy. We need energy to power our vehicles, electrify our homes and offices, and to give us products that are manufactured by byproducts of oil and gas. It is common to talk of oil and gas […]
The liquidity trap is a concept which is believed by some economists whereas it is not believed by the others. Many great economists like Keynes, Tobin and Schumpeter have made no mention of the liquidity trap in their works. It was widely believed to be a discredited concept, one that had no application in the […]
The United States of America is one of the most developed countries in the world. It is also known for having the most transparent market system in the world. Since many economies in the world are so integrated with American economies, a movement in the American markets has ripple effects all across the globe. This […]
Fossil fuels are considered to be the biggest environmental hazards of our time. The biggest objective of several global organizations is to reduce the use of these fossil fuels and replace them with something more organic. This is where biofuels can help. Governments all over the world are giving subsidies to biofuels. Many government agencies procure biofuels from vendors. They are used to meet the needs of sectors like railways which have high energy requirements. In this article, we will look at the positive and negative impacts of using these biofuels.
There are some disadvantages to the use of biofuels as well. They have been listed below.
Even though the energy needs might be met in a better way, the production of crops will decrease once biofuels become the main stream. This reduced production will cause higher food prices.
These higher food prices are a concern in low-income countries. However, these are also the countries where maximum fossil fuel-related pollution happens. Hence biofuel is not really a viable alternative in such countries.
The bottom line is that technology related to biofuels still needs to be developed even more. There are many benefits to using biofuels. However, some of the disadvantages need to be mitigated before biofuels completely replace fossil fuels.
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