December 10, 2014 Leave a comment
Market leaps are necessary to achieve Market Development on a Globalized Marketplace.
The difference between the passive currently used Economics and the proactive Market Economics is in the approach to prompt Market Development id Economic Growth; whereas, the formal one uses Investment (mostly private) and Productivity preferably under shady business practices and lower taxation to prompt Economic Growth; the Market Economics uses targeted financing through investment, subsidies, low interest lending, and other market tools for a pre-programmed approach (Market Leap) to prompt Market Development.
The ‘J Factor’ indicates the level of sufficiency of the market transmission-ability of Capital. It varies in conjunction with the functionality of an economy/market. The Rule of Law in Business, the Infrastructure, the Social Structure are the objectives for the ‘J Factor’; however, the ongoing Globalization and rising Productivity provide higher flexibility to have economies/markets enhance their ‘J Factor’ by the implementation of the following Market Agents:
- Consumer Protection Laws
- Environmental Protection Laws
- Insurance Laws
- Bonding Laws
- Unlimited Liability Corporate Laws
- Firm Business Contracting Laws
- Intellectual Property Laws
- By-Sectors Monetary Policies on Lending
The inadequate infrastructure and social structures play important role to higher ‘J Factor’; however, the implementation of the appointed ‘Agents’ gives over ‘0’ – ‘J Factor’. Artificial Market Tools as Subsidies and Low Lending boost such undeveloped markets through targeted investment. Through a ‘Market Leap’ using Quantum Probabilities Theory to project and limit inflation/deflation effect a Market Development is achieved; however, with the improvement of the Infrastructure and social structures in a longer-term development the ‘J Factor’ comes substantially higher. Undeveloped markets with corruption, weak banking, and lack of infrastructure and social structures are considered impossible for exogenous interference; however, the globalization allowed large retailers, manufacturers, and banks to open outlets almost elsewhere – with the few exceptions of North Korea, Cuba, and the war zones. The exogenous Market Leap can be financed and controlled through the commercial banks; the government should be required to implement the Market Agents.
The Projects of Alternative Energies, Tourism, Farming, and Technologies should be the motors for Market Development; so, Market Leaps should be the Market Tool for succeeding it. The world cannot afford any more deforestation, exploitation of old cars, and fossil fuels heating resulted of the poverty driven markets/economies.
A ‘J Factor’ could vary from ‘-2 to 0 to +2’. Such J Factor is a multiplier to the invested capital; whereas, a market performs causal to its pre and projected level of development could bring straight return on the invested capital, along with some ‘Equity” built up of a long-term Market Development. Thus seasoned ‘Equity’ is to improve these markets’ standard of living, prompt environmentally friendly development, and eradicate poverty. The Market Economics uses Quantum Factors to provide “J Factors’ for different markets: first, to show their transmission-ability and return on invested capital along with added market ‘Equity’, and, second, to prevent from harmful inflation/deflation sparks.
The J Factor performs in its best while a market runs from 2% Deflation to 2% Inflation; however, such precondition is optional and is mostly advancing to a straight return on investment, and not that much to a long-term Market Development, which would advance independently as long the pointed Market Agents are implemented in a market/economy (such independent – not connected to the Inflation/Deflation Market Development depend from the size of such market/economy as well of the size of the targeted Market Leap. In such a case, the expectations would be for more volatile return rising with the increasing Inflation/Deflation market environment.
In relation to the ‘J Factor’ a market/economy could need pro-demand market (when the globalization is well presented), a combination of pro demand and supply, or a pro-supply leaps; therefore, the planning of a market leap is specific for individual markets.
Pro demand Market Tools:
- Fiscal Expenses
- Low Interest Lending
- Monetary Subsidies
- Insurance Expenses
- Social Expenses
- Infrastructural Expenses
- Educational Expenses
Pro supply Market Tools:
- Fiscal Breaks
- Sectional Inflation/Deflation Interest Rates
- Lending Rates
- Borrowing Rates
- Prevailing Wages
- Bonding on Market Prices
- Access to Public Financing
A Market Leap is the approach to boost business activities through subsidizing, low interest lending, or investing will differ because of the ‘J Factors” levels for individual markets. The industrialization belonging to the supply side of individual markets is not considered possible Market Leaps, because as stated in many places of this research, the global industrial production capability has tipped-off as a result of already succeeded by the Transnational Corporations and China capacities, which will benefit substantially from other markets increase of demand.
Example 1 for a Demand based Market Leap:
Undeveloped Market A (could be a country or underdeveloped markets ex. Detroit) in which 60% of the heaters are on fossil fuels, 80% private and commercial residences not-insulated (walls, windows, doors, etc.) resulted in very high pollution.
Low-income results to low consumption:
GPI 5,000 USD per person
GDP 10,000 USD
Residential Occupied Properties: $3 Million
Commercial: $1.5 Million
High energy consumption and on fossil fuels 2,000,000 Residential 1,000,000 Commercial
Required by the Environmental Protection Laws improving to standard properties.
To Improve Properties to low energy consumption with non-fossil heating per Item $20,000 US total $60 billion US:
- Market Agents implemented.
- Market Tools used:
- Fiscal Expenses – 0 Taxes on Non-commercial Houses for 5 Year
- Investment – 20% (Commercial properties related) – $12b US
- Low (1-2%) Interest Lending – 40% – $24b US
- Monetary Subsidies – $24b US – IMF
- Insurance Expenses – $2b US – Gov
- Apprenticeships – $1b US – Gov
- Prevailing Wages plus Materials 95% from Total or $6b US
- Local Employment Preferential and Market Related
- Financing and Financial Control: Lending and Subsidies thru Commercial Banks
- Social Expenses– N/A
- Infrastructural Expenses – N/A
- Educational Expenses – N/A
‘Equity” (on paper) built non-seasoned $50b US, seasoned equals Total (minus 20% on Loans) plus ‘J Factor” – example 0.50% – $25b US ($18b US Commercial with ROI $6b US in ‘Equity’). Overall seasoned ‘Equity’ gained by the market – $75b US.
Paid for Construction Employment – about $27.5b US or $9,500 US per Unit.
Paid for Equipment and Materials – about $27.5b US or $9,500 US per Unit
Pollution from heating and waist of energy after Market Leap NONE.
Joshua Ioji Konov, 2014