In what direction is the world economy moving and what to expect… Cryptocurrencies vs. monetary policy… And what to expect in Bulgaria… Economist and political analyst Nikolay Nikov speaks to FACT.
- Mr. Nikov, you teach economics and business sciences. You follow what is happening on a global scale in the world. What stage is the world economy in…
- The moment is coming for a restart of the entire economic system by changing the world monetary model. Most countries in the developed world will gradually move to an increasingly closed type of economy and an authoritarian type of government. This is inevitable and all signs are there that these changes are coming very quickly.
- You are talking about changing the monetary model. How?
- The monetary model of money supply and control of strong economies has long been exhausted. The political levers for maintaining confidence in paper and unsecured money are becoming untenable. This is also evident from the rise in the value of some cryptocurrencies in recent days.
- Cryptocurrencies, what alternative are they…
- It is clear that cryptocurrencies are the fighting alternative against the strong influence of the Federal Reserve in America and the European Central Bank for Europe. Money supply policy has been the main instrument for influencing the development of modern capitalism until now.
- How should we then look at the money we have…
- Look, the levers for economic engineering through which the current monetary policy affected inflation, consumption and economic development will weaken. In addition, the role of subsidizing and, accordingly, controlling the development of member states of the European Union, for example, will not be able to be carried out with such predictable results.
There is a change in money, and in the leading currencies. It is very likely that the gold standard will even gradually be restored, where the new currencies will be secured by gold.
- Why do you expect this?
- Another motive for this change is also dealing with the enormous indebtedness in the world. It will be necessary to switch to a more basic model of economic development, since the role of financial markets around the world will weaken. As a result, most economies will switch to an increasingly closed type of existence and the interconnections in the world economy between different countries will be transformed. In other words, countries will rely more on their resources and potential.
- But how will this happen?
- All this will lead to a redistribution of wealth, or rather, a weakening of the role of the super-rich in world governance. Then power will largely return to politicians and this now “democratic” model of parliamentarism will no longer be able to exist. Until now, this form has skillfully deceived people that they choose who will govern and everything is in the hands of voters, because other levers of control were available. Currently, they are changing and power is returning to politicians. Accordingly, in order for them to rule, most countries, especially in Europe,
will move to a more authoritarian model of government.
The old democracies will largely retain some form of parliamentarism, but with a strongly expressed bipolar model.
- And where does Bulgaria fit into this global puzzle?
- Bulgaria will certainly move to a presidential republic with a drastically smaller parliament. This pseudo-parliamentarism with dozens of parties and coalitions will become totally meaningless, and this is not only because of our inability to deal with democracy, but because of international changes. This is because the backstage and the oligarchy will lose spheres of influence. The good news for us is that wars will also die down, because the world will solve a large part of its problems by changing the monetary model.
The transition stage may be difficult and frightening, but it is inevitable.
Democracy will not be threatened, but political power will become stronger and more authoritarian. This is a natural process and everything will happen very quickly. People will want someone to really bear political responsibility and Bulgaria will definitely become a presidential republic. We are moving towards a better world and the reality in Bulgaria will become different. We will have more justice, predictability and prosperity. We deserve it.
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Nikolay Nikov. Born in 1977. He studied “International Business“ at the London branch of the American International University in Richmond (American International University) and “Insurance and Risk Management“ at City University Business School in London. He also has a PhD in Economics and Management from Southwestern University Blagoevgrad. After a dynamic career in the City of London, he returned to Bulgaria and until 2012 developed a career in finance. He was also the chief coordinator in the “Management of Multinational Insurance Programs“ department at AIG, Europe (Great Britain), London. He currently develops theories and teaches in the field of economic and business sciences. He also develops business in the field of industrial entrepreneurship.