Growth and collapse of economies – scenario

Long time ago, in a small Brazilian city, people cultivated land and grew animals. They were poor and lived in impoverished homes.

Suddenly, automotive industry in Europe and United Stated has expanded and the rubber was in high demand. Car’s tires manufacturing required great quantities of rubber. Brazil’s richest people have bought land, virgin forests were cleared and rubber was planted everywhere. Poor people from Europe went to work on these plantations.

In the small Brazilian city, large ports, docks, warehouses, neighborhoods, hospitals, schools etc were built. A small town has became a boom town in a very short time. Nobody planted anything, except rubber. Everything was imported: wheat, corn, rice, coffee, cocoa etc.

Suddenly, everything collapsed like sand-castles. The synthetic rubber was invented. It was cheaper and better than the natural rubber. Nobody has bought natural rubber anymore. The city was abandoned by its inhabitants. It has turned into ruins and jungle overtook the entire city.

All cities become ruins from antiquity to the present, across the globe have economic causes. In fact, the empires have risen and have fallen because of the economic reasons.

Economic cycles rotate from east to west, so on Earth’s latitude, not on Earth’s longitude. This theory is the result of my personal thoughts and if it coincide with the theories of scientists, then it is a pure coincidence.

Any increase in a place is due to decrease in another place. Any inflated bubble, sooner or later will break. Nothing comes up out of nothing. Everything appears, is a consequence of past actions. If the French Revolution wouldn’t have been, Napoleon would have appeared. If the capitalism wouldn’t developed until the stage of imperialism, the capitalism and the scientific socialism doctrine wouldn’t have appeared. Everything moves follows a single template: cause – effect – consequence.

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