Market Leap of ‘As It Comes; As It Goes’ Market Economics


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:

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
  • Investment
  • Low Interest Lending
  • Monetary Subsidies
  • Insurance Expenses
  • Social Expenses
  • Infrastructural Expenses
  • Educational Expenses

Pro supply Market Tools:

  • Fiscal Breaks
  • Investment
  • Subsidies
  • 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

Inflation 1%

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:

  1. Market Agents implemented.
  2. 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

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Joshua’s Third Law of Market Economics


If the capabilities of the Market Economics are not explored and used globally under enforced Environmental Protection Laws and the rest ‘J Factor’ Laws & Practices the Earth’s Environment is to deteriorate and the inequality is to rise to the points of no return bringing Environmental Destruction and Global Social Unrest”.

This Third Law is consequential to the First and Second Laws and conclusive of the market imbalances that overwhelmed the global market with the 2007-9 Recession, the sluggish recoveries, the rising inequality between rich end poor: countries and individuals., the growing radicalization, discrimination and social impatiens.

Why inaction is considered futile? – Answers come to:

  1. The Globalization and rising Productivity diminishes the adequacy of the pro-supply Capitalism to manage long-term economic growth, as done in the Past.
  2. The Internet and other communications bring to the world open communications and information.
  3. And not the least, the Global worming caused by pollution and underdevelopment calls for immediate action for eradicating poverty that makes people destroy natural recourses as woods, drive old vehicles, dispose garbage elsewhere, and alternative energies inaccessible.

Joshua Ioji Konov,2014

Joshua’s Second Law of Market Economics


“If ‘the House is painted’ and ‘the Painter employed’ in limited Inflation/Deflation and higher than Zero ‘J Factor”s market environment: the market Entropy is boosted and Equity is built; therefore, thus Invested Capital/Subsidies/Low Rate Lending prompts Market Development”.

There are a few ways to finance Demand:

  • Investment
  • Low Rate Lending
  • Fiscal Initiatives
  • Subsidies
  • Social (Including Social Security, Pensions, Education, Unemployment Benefits, etc.) Expenses
  • Infrastructural Expenses

Whereas, the returns vary from straight return on the Investment to built in the market equity; the higher Market Security lowers lending rates and the return on the invested capital. The Monetary Policies on lending, Environmental Protection Laws, Consumer Protection Laws, Business Contracting Laws, Intellectual Property Laws, Personal Corporate Liability, and the Insurance & Bonding Laws guarantee Environmental Protection and proper Business Practices therefore higher than zero ‘J Factor’.

Market Economy under Market Development works mostly in low interest rate monetary environment.

Any ascend of Market Development increases Consumption, lowers Unemployment, and replenish Fiscal Reserves; it is Seasoned Entropy and Equity’s Growth.

The Invested Capital goes through ‘the House’ to ‘the Painter’ in materials, equipment, and proceeds; it adds to the market value and requires more goods, services, education, and improved infrastructure; it gives opportunities for development of many economies now undeveloped and impoverished. Current globalized marketplace and ever-rising productivity has the manufacturing and organizational potentials to offset excessive inflation/deflation in a way never experienced in history that made possible the Second Law of Market Economics.

Joshua Ioji Konov, 2014

Joshua’s First Law of Market Economics


See also Market Leap of ‘As It Comes; As It Goes’ Market Economics

“If a House needs Painting and a Painter is Available: Market Economics should have the House Painted and the Painter Employed”

By using an “invisible hand” (could be private or/and public investment; targeted subsidies or/and fiscal and monetary initiatives) a house that needs painting gets painted and a painter who needs employment employed: the Demand is ‘the House’, and the Supply is ‘the Painter’. Having such done without exceeding the targeted inflation/deflation boosts ‘entropy’ to naturally evolve into ‘equity’ of a seasoned Market Development made possible because of the ongoing globalization and rising productivity. While an ‘as it comes; as it goes’ system of economics is used to prompt business activities. Such approach differs from currently practiced economics by not being budgetary constrained, but tagged to the inflation/deflation variations.

^Market Agents* for the First Law’s Realization and Maintaining:

                             Demand                                  Supply
By-Sectors Monetary Policies in Lending

Consumer Protection Laws

Environmental Protection Laws

Insurance Laws

Education 

Infrastructure on Projects Investment

Social Policies (including: Pensions, Social Security, Unemployment Benefits, Medicare, etc.)

High Market SecurityHigh Education

Research and Development

Unlimited Liability Corporate Laws

Business Contracting Laws

Apprenticeships

Intellectual Property Laws

Bonding Laws

The level of the Market Agents*’ implementation in an economy will also give the ‘J Factor’ deviation which vary from ‘-2 to +2’ when -2 is lack of such implementation and +2 is completed implementation, thus if for example 4 is the invested capital in the project in a functioning economy 4 is multiplied by the ‘J Factor’ to give the gained ‘equity’ or if it (the invested capital) is done in a dysfunctional economy it adds to a loss.

Example of a gain: 4 x 1.25 = 5 (the gained amount is 1) 

Example of a loss: 4 x 0.75 = 3 (the lost amount is 1)

So, when ‘a house is painted’ and ‘a painter is employed’ the Return on Invested Capital in the Project could vary emulating the level of Market Agents* implementation. The ‘J Factor’ accumulates and projects different kinds of return for the effect an investment has on the economy/market: the ‘equity’ value added to such market is not necessary cash related, it could add to the market value of such property, to the consumption by the ‘painter’ resulted of received salary, and to fiscal gain from such project; However, plus the Market Agents* there are number of Market Tools** that must be used as Parameters in an ever fluctuating marketplace to prevent from sharp market fluctuations – such as the one that brought the 2007-9 Recession – which is a subject of an in progress Quantum Economics Research. In a well developed market with highly implemented Market Agents* the Market Tools** are very sensitive to manage variations and the market forces adjust such fluctuations. But, proactive actions in case of substantial fluctuations are necessary; as well a prevention system is required.

^^Market Tools** used as Parameters to manage Consistent Market Development (Project or Sector Targeted):

                               Demand                             Supply
·      Fiscal Expenses·      Low Interest Lending

·      Investment

·      Monetary Subsidies

·      Insurance Expenses

·      Social Expenses

·      Infrastructural Expenses

·      Educational Expenses  

·      Fiscal Breaks·      Stimulus Packages

·      Investment

·      Targeted Inflation/Deflation Prevention Interest Rates

·      Lending Rates

·      Borrowing Rates

·      Prevailing Wages

·      Bonding on Market Prices

·     Access to Public Financing

 The Joshua’s First Law of Economics allows an expanded if not full employment when properly implemented. Such is made possible by the exogenous forces from the Globalization and rising Productivity of a technologically advancing world. There are possibilities of both inflation and deflation to be used for accelerating and maintaining long-term Market Development that differs from currently considered limited-inflation driven Economic Growth. (A subject of another Research)

Joshua Ioji Konov, 2014

Joshua’s Second Law of Market Economics

“If ‘the House is painted’ and ‘the Painter employed’ in limited Inflation/Deflation and higher than ONE/MINUS ONE ‘J Factor”s market environment: the market Entropy is boosted and Equity is built; therefore, thus Invested Capital/Subsidies/Low Rate Lending prompts Market Development”

There are a few ways to finance Demand:

  • Investment
  • Low Rate Lending
  • Fiscal Initiatives
  • Subsidies
  • Social (Including Social Security, Pensions, Education, Unemployment Benefits, etc.) Expenses
  • Infrastructural Expenses

Whereas, the returns vary from straight return on the Investment to built in the market equity; the higher Market Security lowers lending rates and the return on the invested capital. The Monetary Policies on lending, Environmental Protection Laws, Consumer Protection Laws, Business Contracting Laws, Intellectual Property Laws, Personal Corporate Liability, and the Insurance & Bonding Laws guarantee Environmental Protection and proper Business Practices therefore higher than ONE/MINUS ONE ‘J Factor’. Market Economy under Market Development works mostly in low interest rate monetary environment. Any ascend of Market Development increases Consumption, lowers Unemployment, and replenish Fiscal Reserves; it is Seasoned Entropy and Equity’s Growth. The Invested Capital goes through ‘the House’ to ‘the Painter’ in materials, equipment, and proceeds; it adds to the market value and requires more goods, services, education, and improved infrastructure; it gives opportunities for development of many economies now undeveloped and impoverished. Current globalized marketplace and ever-rising productivity has the manufacturing and organizational potentials to offset excessive inflation/deflation in a way never experienced in history that made possible the Second Law of Market Economics.

Joshua Ioji Konov, 2014

Joshua’s Third Law of Market Economics

If the capabilities of the Market Economics are not explored and used globally under enforced Environmental Protection Laws and the rest ‘J Factor’ Laws & Practices the Earth’s Environment is to deteriorate and the inequality is to rise to the points of no return bringing Environmental Destruction and Global Social Unrest”.

This Third Law is consequential to the First and Second Laws and conclusive of the market imbalances that overwhelmed the global market with the 2007-9 Recession, the sluggish recoveries, the rising inequality between rich end poor: countries and individuals., the growing radicalization, discrimination and social impatiens. Why inaction is considered futile? – Answers come to:

  1. The Globalization and rising Productivity diminishes the adequacy of the pro-supply Capitalism to manage long-term economic growth, as done in the Past.
  2. The Internet and other communications bring to the world open communications and information.
  3. And not the least, the Global worming caused by pollution and underdevelopment calls for immediate action for eradicating poverty that makes people destroy natural recourses as woods, drive old vehicles, dispose garbage elsewhere, and alternative energies inaccessible.

Joshua Ioji Konov,2014