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The world's economy is really the compilation of many economies. As such, there is no trade deficit or surplus because one country's deficit is offset by its trading partner's surplus. Trade, however, is still important to consider in that it represents depletion of resources from a country or region. Both the depletion and consumption of resources have consequential effects. As such, though the Amazon rain forests provide a source of inexpensive wood, it is questionable whether the depletion of a natural resource that converts so much carbon dioxide into oxygen actually raises our standards of living.

Even standards of living can be deceiving when looked at statistically. If we were to create a community with 1,000 people that has combined wealth of 100,000,000, statistics will show average wealth of 100,000. However, wealth is never spread equally. If we accept the "80-20 rule" (80% of the wealth is controlled by 20% of the people) as a standard, 200 of the people share 80,000,000. These 200 have average wealth of 400,000. The other 800 have average wealth of 2,500. The 80 and 20 are truly variables. In better economies, it may be 73-27. However, it can be 99-1 in the worst, as it is in many third world countries.

Communist and socialist economies are not exempt from this phenomenon. In the best economies of these types, the numbers get closer to balance than in the worst. However, those in government represent the few controlling the wealth. If the government is not thrifty, there is not much wealth to account for. If the government is malevolent, the standards of living for the population is impoverished and fearful, while a few live lavishly controlling the wealth.

So, how bad is the prospect for the world's economy in 2008? It is bleak in many ways. However, that does not mean it is necessarily bleak for you.

FLOWS OF WEALTH

Though the standards of living will rise for some of the world's most impoverished people, there is very little hope on the horizon for enormous masses of populations to experience much but poverty and fear this year, also. The standards of living for those who do experience improvement, is at the expense of middle classes of more affluent economies, and is for the purpose of creating greater gaps in wealth between the richest and the poorest.

An example is the recent announcement by BMW to build cars in South Carolina, USA. Presumably, the standards of living for those who get the jobs will rise. The move will be at the expense of jobs

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