BASIC THEORY


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In science, you state the principles, and then you comply with them.
In economics you state the principles and then do something else...

THAT IS WHAT CREATES THE CHAOS

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"All prices will do what the first lesson in economics say they must do – adjust to balance supply with demand."

This is what all first year students of economics are taught should happen.

As any first year student would think that when the rate of inflation increases:
  • Interest rates would rise
  • Property values would rise
  • The value of the currency would fall
  • The cost of loan repayments would rise somewhat like rentals do
  • The value of savings in government debt / treasuries would rise faster than before.



But what economics students are taught thereafter is a little different. 

They get taught that:
  • Property values will fall
  • The value of the currency will rise as interest rates rise
  • The cost of loan repayments is either fixed, or it will leap upwards, and
  • The value of treasuries / government debt and other fixed interest bonds, will fall. 


IT'S A COMPLETE MESS
They call this economics. 


This is where the choas is coming from.
There's very little science behind it. 

In science, you state the principles, and then you comply with them.
In economics you state the principles and then do something else.


DECISION TIME
Edward was furious. Many of his most credit-worthy clients were facing huge losses because of these mistakes being made in the housing sector. Inflation was taking the real value of their debts down and the lenders were demanding hugely increased payments.

Edward decided to show how this mess can be sorted out. The practical solutions come from his experience as a successful financial innovator in the financial services industry. The Peer Reviews are amazing.

The comparisons with other schools of economics as taught at universities shows how outdated the others all are compared to this. They all fail to deal with the chaos created - the social and financial damage and behaviour change which comes out of it.

My book will be on sale shortly giving the scientific alterantives. Title:

HOW TO END THE WORLD'S FINANCIAL CHAOS

Check Amazon / Kindle or buy a hard copy in Zimbabwe where this is being taught at an online university.


WHAT MORE YOU MAY LEARN

HOW DO YOU JUMP START AN ECONOMY?
THIS IS TOTALLY NEW THINKING:
http://www.chronicle.co.zw/jump-starting-the-economy/


This is just one of the dazzling new features in the book.

How about some of the other topics you have never seen before - 


  • Banks can only lend deposits once at a time...


  • A vitually cost-free way to bail out a bank but let go of the board and the shareholders


  • How to end the Central Banks' problems for raising interest rates and normalising their economies while complying with their own basic laws of economics.


  • How can central banks find a way to optimise the use of credit in their nation?


  • What combination of instruments can deleiver a balanced stimulus across the entire economy without any need to borrow?


  • How can it possibly be that, just maybe, Professor Bill Mitchell is on to something when he says that unemployment can be eliminated and / or free education does not cost as much as you think? A peek at the reasoning - but an absence of proof.


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