Considered by Orthodox Economics Reckless Policies Bring Growth and Employment

For info to all readers: there are a few important issues to be considered along with the following articles… meaning the picture is much wider, indeed!

Introduction:

It must be quite ambiguous but yet practiced by most economists to not evaluate the current economic policies by Trump, Abe, Xi considered “Reckless” by the Orthodox Economics but yet working by prompting and maintaining growth and employment. Huge, in the Trillions, Deficit/Debt to boost different sectors of the economy without invoking any Inflation? Well, what is wrong with this picture? 

Even these economic policies are called temporary until the economy starts working as usual, by itself, the Quantitative Easing well used by Obama followed by Trump’s even chaotic but heavily in debt aggressive economics, the three-pointed Economics by Abe, and not the least the targeted subsidies by Xi have been developed into a 21st Century Market Economics of prompting Economic Growth and Employment to avoid downturns and sluggishness; because of such policies the US have run a very long growth after the 2007-9 Recession, Japan has gotten out of a consistent Deflation and Sluggishness,  and China has avoided the formerly mentioned Recession to improve substantially even in the worst global conditions by taking out of poverty more than 600 million Chinese. It comes to the conclusion that at the time of high productivity, technologies, and globalization, recessions that aggregate such new developments for a Market/Economy to improve and maintain its Infrastructure, Social Expenses, Medicare, necessary Employment, and etc the reliance of the 20th Century Orthodox Economics of Trickle-down and strict Budgets is just not possible. And here we do not include the most important of all the need for Earth’s strict environmental policies additionally loading expenses.  In the foundations of the modern-day Market/Economy Economics stays Employment mostly into the Service Sector, Infrastructure, Social Security, Medicare based on a Deflationary driven Economics why the Trickle-down Budgetary Capitalism is based on Industrial Production as well Accounting of Governments GDP is strictly Budgetary and Inflationary driven Economics. The best way to explore Market Economics in the 21st Century is by using a flexible, pragmatic “as it comes; as it goes” Economics pinned not to Deficit/Debt but to Inflation/Deflation, an Economics seeking full employment and maximum business activities but yet using Environmentally Friendly techniques and technologies.

It is amazing why most of the leaders using unorthodox economics become extreme mixing economic policies with radicalized nationalism, xenophobia, or other political approaches? – Why practical economic policies should be just policies aiming to boost business activities, employment, small business-enhancing (as the small and medium businesses employ the majority).

Joshua Ioji Konov 2019

Micro and Macro Approaches of Market Economics

There are a few fundamental differences between Market Economics a pro-market balance Economics: pro-market development theory, and the Capitalism, Social Capitalism, and Communism, a using pro-supply Economics theory that varies from pro-business trickle-down to a vastly involved into business governments of the Communism but yet pro-supply theories on both Micro and Macroeconomic levels.
Market Economics uses free competition self-adjusting Micromarket i.e. Microeconomic approach; whereas, aggressively and artificially adjusted through the invisible hand National and International financial institutions and governments Macromarket i.e. Macroeconomic multiple approaches. An ‘as it comes; as it goes’ Market Economics pragmatically boosting business activities to create and maintain full employment, self-employment by using environmentally friendly technics, technologies in farming, industrial production, infrastructure, services under very limited inflation/deflation.
The possibility to employ Market Economics without prompting high inflation and recessions has come with the expanding Globalization and rising Productivity that have given to markets i.d. economies the abilities to prompt Market Development without prompting such inflationary forces when properly used. Generally the Economic Trend of pro-Supply, as mentioned before, has evolved into a pro-Demand, Market Equilibrium Trend, even though this could be considered a Market Possibilities for some underdeveloped Markets as a result of lower standard of living, low consumption; however, if properly used on global scale a Market Economics could accelerate such Trend that basically means that these markets could have relatively fast Market Development without strong inflationary forces as it has been always the main issue, obstacle. The idea that the processes of globalization and technological, structural improvement of all spheres of business to boost underdeveloped, impoverished markets are not achievable nether by giving more power to that large businesses and investors nor by giving to more market involvement to the governments! And therefore, neither Capitalism nor some kind of Socialism could provide the necessary structures. The 21st Century’s global economic developments of rising debt, deteriorating Middle Class or not generating of new such, the rising poverty with the exemption of China, the ongoing pollution and global warming, the chronic unemployment and lack of business opportunities, the rising nationalism, and radicalization clearly state the inadequacy of the pro-supply Economics.

Currently, China could be considered as the best performer, as e result of its employing an ‘as it comes; as it goes’ economic policies to targeted areas, regions, industries through subsidies, tax breaks, investment, lower lending rates; such approach, however, is not used on the entire economy range whereas some kind of social-capitalism of a pro-Supply trickle-down economics prevails. Thus, if Market Economics is used on a general scale it would much better boost business, employment, market development than lacking individual freedoms, thus democracy would provide better conditions for long term successful market development.

Advanced Market Economics is founded on strict Rule of Law in Business and Environmental Protection along with enhanced strict Market Agents: that would succeed high Market Security thus allowing lower lending rates and better conditions for direct investment. The targeted market conditions conclude deleveraging the advantages large businesses and investors have over the SME and investors. On a micromarket level the maximum effective market competition is paramount to avoid exaggerations and redundancies; however, on a macromarket level recessions, sharp inflations/deflations must be targeted by ‘as it comes; as it goes’ approaches, thus, from one side the macro approaches are to boost business employment, business and also preventing recessions by using fiscal, monetary, restrictions, stimulus packages, quantitative easing, etc. A Market Economics approach is not limited by Debt, Debit/Credit restriction more like tagged to Inflation/Deflation variances. Because the 21st Century markets are preliminarily in organic farming, environmentally friendly approaches in services, tourism, etc. that must overwrite Debt, Debit/Credit restrictions to save Earth by alleviating poverty that is considered the most uncontrollable hard to fix sources for pollution: usage of old vehicles, fossil fuels heating, related deforestation, farming, garbage disposal; Poverty must be considered the main and most uncontrollable at the moment polluter that if Earth is to be saved must be confronted and dealt with it head-on.
The main problem of balancing the free competition Micromarket could be succeeded with mostly artificially balanced Macromarket

Table 1 Demand versus Supply under Market Leap Q1 – Q2

 

 

 

 

 

 

The condition for Market Leap positive effect on the Market Development is one that does not prompt Inflation/Deflation that only could be succeeded if the Market is part of the Globalization and if the Demand (D) to Supply (S) is taken in consideration when such Market Leap is planed. On a Macromarket level, such Market Leap could be executed by using a targeted combination of Market Tools such as Quantitative Easing, Subsidies, Low-Interest Lending, Fiscal Breaks, Direct Investment, Monetary Policies. The paramount indicator that such a leap is tagged to is Inflation/Deflation variances that must be anticipated and dealt with indiscriminately. So from one side: you have indiscriminately used Market Tools to prompt business, employment, a building of equity and from another, it is strictly followed Inflation/Deflation restraining by using Market Tools, too. Market Leap is a combination of boosting Demand and Supply simultaneously to succeed accelerated Market Development under very low Inflation/Deflation.
Market Economics cannot be anticipated by using Game Theories: it is much more complex than the possibilities for such; only by using Market Tools as Parameters to balance markets more-or-like in Quantum Mechanics’ theory such a balance is apprehensible!. Even though a straight relation between Market Economics and Quantum Mechanics cannot be made as these are in different fields, philosophically the uncertainty theorized by Quantum Mechanics and fundamental for it is similarly observed, theorized, and fundamental for the Market Economics. (see table 2)

The Market Balance even considered very volatile when artificial Market Tools are used to boost entropy (business activities and consumption simultaneously) with the help coming from the globalized marketplace that has developed extensive supply capabilities can successfully prevent excessive inflation/deflation; however, any kind of protectionism is counterproductive setting up the conditions for boom-and-bust consequences.

Current practices experienced by many economies of rising unemployment and debt, deteriorating middle-class are a product of inadequate pro-supply economics that cannot use the goods coming from the globalization to prompt entropy (business activity and consumption simultaneously).

Table 2 Market Tools used as Parameters in a Quantum Mechanics’ like ways

m,m1 – Market Leap
X-Xn – Market Tools as parameters applying pressure on Demand and Supply simultaneously
A – the existing entropy, business activity seasoned into equity (micromarket balance)
B – the succeeded entropy, business activity seasoned into equity (micromarket balance)

The idea of using principles from Quantum Mechanics to balance markets is simply emulating from the uncertainty, complexity, and volatility of global markets under interweaved trade, investment, and balances. The global markets necessity of accelerated Market Development to alleviate poverty by employing environmentally friendly approaches is a must; therefore, to avoid or postpone Market Economics’ implementation in time is incomprehensible, such will lead to Earth destruction and the end of Humankind.

What is important to be considered:
1. The diversity of Global Markets i.e. Economies actual conditions requires accommodative usage of Market Tools. However, the Global Markets must play under the same Rule of Laws in Business, Environmental Protection, Consumer Protection, Insurance and Bonding, and a few other Market Agents explained in my Research;
The ‘Invisible Hand’ must be used by Central Banks (individually for countries) and International Financial Institutions (globally) to plan and implement Market Leaps and flexible usage of Market Tools on Macromarket level to prevent from harmful volatilities;
no industrialization be targeted but the individual to markets specifications: geographical, landscape, traditions, possibilities to be set for development by saving the environment and identities;

The modest (up to 2%) inflation used in current economics to keep economic growth is based on the relatively high lending rates in a high-risk marketplace. In Market Economics it is all about steady (in the low 0.5 of 1%) Inflation/Deflation that self-adjust micromarket variances both ways: 1. it uses slight inflationary variances to allow businesses and investors some leverage in generating profits when 2. deflations cut down on micromarket level on redundancies and dead-meat exaggerations. Such very modest leverage is possible in a low-risk lending environment, only! The low Inflation/Deflation’ variances are straightly connected to the low lending rates of the low lending risk of high market security.

Market Tools such as Social expenses including educational, medical, retirement, social security, etc are in certain percentage Equitable (used as Market Tools) to balance markets; same are the Infrastructural expenses; however, Social expenses differ from the Infrastructural ones by the Equity they build: from one’s side it is Human wellbeing necessary to alleviate poverty and keep market balance from another it is Equity of Environmentally friendly Infrastructure that will give the opportunity to boost Entropy: business activity, employment, investment why saving Earth by keeping Earth livable!

Market Economics relies on SME (Small to Medium Enterprises) and Investors to provide the majority of jobs why on large transnational corporations and investors to retain the possibilities for Market Leaps and Market Development on a Global scale without Inflations.

Some Markets i.e. Economies need more Social Expenses than others reflecting the current Economic Policies, therefore the approaches used by Market Economics differ from Market to Market, as mentioned before. However, the principles are about Market Development under relative market balance of an ‘as it comes; as it goes’ Market Economics with no strings attached to any ideologies or principles: more or like ‘the ends justify the deeds’ and the ends are full employment (down to 1%, business opportunities, growing Social stability and building Infrastructure all in synchro with protecting Earth!

Micromarket of Market Economics entirely rely on the market competition to set pricing and quantities of goods and services; what the ‘invisible hand’ of Macromarket of Market Economics does is to target underdeveloped areas of a market to add some new competition into the Micromarket competition; example: a market could improve its vehicles park to a completely electric ones: using subsidies, low-interest lending, direct investment a Targeted Project finance the replacement without raising the existing expenses to the commercial drivers’ thus the market competition is not anyhow interrupted or intervened by giving some weight to different competitors. ‘Or let say an upgrade of the existing power generations is targeted: the procedures are the same as the previous example. Any additional jobs created with a new targeted project and the upgrade of the existing services, mechanics, installers through apprenticeships. Adding to the existing market competition must be done without disadvantages to any parties but through open competition.

The balance between the Micro and Macro levels can be sustained by always being sure to target the right segments by using open Market Tools accessible to all participants thus from one side maintaining fair competition and from another by not intervening into any competitive advantages succeeded by better management of some businesses. In practice the Central Bank, International Financial Institutions by using Commercial Banks on setup matrix boosting targeted market segments to accelerate and maintain business, employment, infrastructure: Market Development.

The depoliticization of Market Economics, individual freedoms, and democracy along with the implemented Market Agents of strict Environmental Protection Laws, Business Laws, Insurance, Consumer Protection, and etc. must ensure relative high Market Security that improves the market competition’s quality; thus the Marx’s pro-Supply theory’from quantity aggregation to quality improvement’ is avoided: because such theory does not prevent from pollution: it is based on industrialization. Or the idea of Adam Smith that the economic system is automatic, and, when left with substantial freedom, able to regulate itself. Obviously, working its best when the least regulations and flexible business jurisdiction, that also projects economies’ industrialization based on a trickle-down approach is enhanced in Market Economics to not rely on just industrialization and trickle-down approaches. or Debt: Debit/Credit restrictions. The necessities that overwrite such approaches and restrictions are related the absolutely needs to avoid Earth Pollution calling for changes by avoiding industrializations of the 20th Century like, and the lawlessness of the deregulated business that gives the opportunities to the large transnationals and investors to expand their activities globally, always looking for fewer restrictions on pollution, consumer protection, business laws thus in many cases promoting corruption and one-sided justice that benefited mostly them. The world of lawlessness the 20th and before centuries approach must be over as the priorities have changed from the pro-Supply liberalism based on limitless industrialization to a pro-market balance Market Development of environmentally friendly business and full employment to alienate poverty and poverty-driven pollution.

Joshua Ioji Konov 2018

PHILOSOPHY OF MARKETS

INTRODUCTION

What really must be made as a statement before starting this essay is that Economics is not self-centered but on creating business, employment, assets principle that greatly differs from any Economics used by current reliance on trickle-down of capital, some combination of private market related economics and social governmental distribution, or the governmental involvement and control on business and distribution. Current kinds of Economics are politically and ideologically motivated, directed, and most definitely self-centered around ideas, convictions, status quo. What really defines current Economics is the rule of what is expected based on ideologies than the objectivity to reach results; thus the dysfunctionality, slow growth is considered either consequence of not imposing enough such Economics principles by the book status-quo convictions or some kind of temporary distortion. Such Economics relies on the investment trickled-down, the improving productivity, the lowering labor, and consumer protection and taxes to attract large corporation, investors to boost economic growth; in context some countries, economies have higher government involvement in wealth distribution, business, control than others; however, the principle of ‘hands off’ is widely accepted as the only working. Only, China uses much more flexible Economics that have achieved consistent development taking hundreds of millions out of poverty, building incredible infrastructure; China’s approach more chaotic and partial having in mind the usage of Orthodox Economics as a primary approach and the ‘as it comes; as it goes’ Economics as a secondary, even though very proactive approach when compared to the Market Economics* that uses Orthodox Economics with major amendments as a Micro-market-level approach and artificial hand-on Economics on Macro-market-level. It could be also stated that the Quantitative Easing and Stimulus Packages used by the US, UK, Japan, and later EU are Market Economics’ Tools but there they were even further partial – more like adjusting to prevent the full collapse from the 2007-9 Recession and the slow following economic revival.

ABSTRACT

The Market Economics* promoted by these research is an ‘as it comes; as it goes’economics adaptable to the most recent exogenous and endogenous forces coming from the globalized marketplace and the improving technologies, productivity – it is non-ideological, conviction-like, or status quo. Even though it values democracy, personal freedoms, individual rights it is apolitical by nature relying on flexibly used Market Tools to steer business activities, full employment, market development by capitalizing on environmentally friendly technologies, farming, tourism, development in a high Market Security business competition marketplace.

EXPOSITION

The Market Agents required (considered unifying) implements:

• Strict Rule of Law in Business, 
• Unlimited Corporate Liability for the Management

Enhanced Protection Laws in;

• Insurance, 
• Bonding, 
• Earth Environment, 
• Consumer, 
• Labor  

that provide the high-security (lower risk) market conditions for flexible usage of the Market Tools as Parameters in an uncertain market motion to offset harmful fluctuations ups-and-downs that can bring high inflation/deflation variances. To accelerate and carry-on Market Development with robust business activity, full employment, alleviate poverty, save the Earth environment are flexibly used Market Tools:

• Quantitative Easing, 
• SDR, 
• Subsidies, 
• Low Rate Lending, 

• Social Expenses 
• Infrastructural Expenses 
• Market Leaps
• Targeted Projects, Markets, Regions
• Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions 

pinned to Inflation/Deflation (not to Budgets) are to either accelerated or decelerate consumption in keeping the Inflation/Deflation in strict limits. The Game Theories cannot be explored to set up such limits because the complexity of economic data, the globalization forces, the unevenness in development and therefore the Parameters must be applied on a Quantum Factor principles with extreme flexibility. The Nash Equilibrium can be used on individual Parts/Sectors Level but again not as Game Theories but more like a balance between Demand to Supply (the Supply goes second not accidental).

      The theory of Supply driven Economies evolves into Demand, Balance driven Markets;

• from General Equilibrium – Economics into Parts/Sectors Equilibriums – Market Economics; 
• from Nationally defined Economies into Level of Development defined Global Markets; 
• from Budgetary constrained  Economies into Inflation/Deflation constrained Markets;
• from Shady Business Environment of the Capitalism into Strict Rule of Law such of the Marketism;
• from hands-off Trickle-down Economics to active ‘as it comes; as it goes’ Market Economics;
• from Macro and Micro Levels General Equilibrium economic intervention by the Central Banks through manipulating the Discount Rates to an only Macro-level Parts Equilibriums all around intervention while on Micro-level the market competition is self-adjusting (market driven);

       The Joshua’s Three Laws in Market Economics:

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

1. “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”

1. “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”.

These Three Laws basically explain and direct the ways Market Economic works: this isn’t about Budgets and a tight leash has been used by the status-quo current practice but it is about more motion steered by the necessities, demand for development so, the Market Economy to respond to these necessities through using the Market Tools in a High Market Security Environment that would allow lower interest lending. The need for Earth’s Environment Protection overwrites Budgetary Restraints setting up new principles of handling Economics. 

What does the Market Economics mean in practice?

To steer enough business activities, employment, equity built up and to use other than Industrial production methods to protect Earth from pollution thus alleviate Poverty the Market Economics is using an ‘as it comes; as it goes’ Economics in which even though the Market Agents are mandatory, unifying the Market Tools are used flexibly, differently, specifically from market to market compatible with individual markets historical specifications. The Market Tools are used as Parameters more like in Quantum Mechanics than in Game Theories because of the high Uncertainty in the Global-marketplace where the Data is very complex and insufficient. On a Micro-market-level the Market Economics relies on the free market competition to self-adjust disbalances whereas on Macro-market-level artificial adjustment, interference is used to prompt and carry-on robust business activities, full employment (down to 1%), accelerated Global Market Development that requires the governments and central banks of the most developed economies along with the international finance institutions (WTO, IMF, others) very active policies that through Commercial Banks access to Markets to setup Matrix to succeed such vigorous activities without limiting individual freedoms, liberties. 

CONCLUSIONS

To exploit current possibilities of Globalized marketplace, Improving technologies, robotization, the Internet, the highly concentrated capital the Market Economics uses the Market Tools indiscriminately meaning with no concern or direction to political ideas, motivation: it is all about practical methodology system of Demand to Supply balance under the conditions of accelerated business activities. The Inflation/Deflation is the tagged data indicator: the Market Economics accepts both very low (in the quarter of percent) Inflation or Deflation as normal variances and fight vigorously bigger fluctuations; because generally in Market Economics the Interest Rates are low the higher Inflation/Deflation may have negative effect on consistent Market Development, and because of the same reason a modest Deflation may establish boosting effect on competition and improve living standards. The current idea that lower Inflation or even Deflation may have a very negative effect on the Economy is based on low economic security and relatively high lending rates, particularly to small and medium businesses and investors, evolves into a Market Economics in which lower rates, Inflation, Deflation are compatible to the entire market structure. The entirety of projected Market Development relies on boosted huge business activities on a global scale that will bring limitless opportunities for investment and companies expansion but it will be on a larger scale than currently experienced. However, in perspective, the change from quantity driven global-market-expansion may come into a quality such, but then the market motion will move to new technologies, improvements, higher productivity leaps that may allow certain companies higher profit margins.

The large market’s expansion brought by the Market Economics will boost business activities and individual income using natural for the market micro-market competition why the macro-market-level will keep it up and running and preventing for catastrophic exacerbations, redundancies, The Research and Development, Education, overall Living Standards will expand  proportionately establishing prosperity: the ability to apprehend the exogenous and endogenous market forces coming from the ongoing Globalization and rising Productivity will be the main accomplishment. It could be considered utopic such projections but hypothetically said if the market forces of the 21st Century Globalization and Productivity, the Internet, the China’s mighty industrialization, the Transnationals spreading globally in many business sectors of farming, retail, banking, manufacturing, technologies are supported along with rising market development and market related demand the possibilities for expansion of such forces are not just probability but a reality.

REFERENCES

Konov, Joshua Ioji, Market Economy Under Rapid Globalization and Rising Productivity (October 4, 2012). Available at SSRN: https://ssrn.com/abstract=2789388

Konov, Joshua Ioji, Piercing the Veil’s Effect on Corporate Human Rights Violations & International Corporate Crime (Human Trafficking, Slavery, Etc) (January 5, 2012). Available at SSRN: https://ssrn.com/abstract=2947755

Konov, Joshua Ioji / JK,. “Piercing the Veil’s Effect on Corporate Human Rights Violations & International Corporate Crime (Human Trafficking, Slavery, etc),” MPRA Paper 35714, University Library of Munich, Germany, 2011.

Enhancing Markets Transmissionability to Optimize Monetary Policies: Pro-Demand Indefinitely – the Result of the Ongoing Globalization and Rising Productivity Paperback – January 12, 2017

by Joshua Ioji Konov (A1)

BLOG Philosophy of Market Economics https://joshuakonov.wordpress.com/

Joshua Ioji Konov 2017

Market Economics Tagged to Inflation/Deflation not to Debt/Budget

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To take Inflation/Deflation as a Data Indicator to adjust Market Development  by using Market Tools one way or another in meaning either accelerating it through Market Leaps and Targeted Investment or slowing it through Sectoral Monetary & Fiscal Policies, Lending Restriction and Temporary Regulation instead of the currently used Debt related Budgetary Economics may look improbable, incomprehensive, revolutionary but actually there are in nowadays Economics presaging practices such as

1. Equities Exchanges (Stocks, Securities, others)1*

1. Quantitative Easing2*

1. Accrual Accounting3* 

___________________________________

https://en.wikipedia.org/wiki/List_of_stock_exchanges

2 The numbers are daunting if not shocking: $12.3 trillion of money printing, nearly $10 trillion in negative-yielding global bonds, 654 interest rate cuts since Lehman Brothers collapsed in 2008.http://www.cnbc.com/2016/06/13/12-trillion-of-qe-and-the-lowest-rates-in-5000-years-for-this.html

3 Definition: Accounting method that records revenues and expenses when they are incurred, regardless of when cash is exchanged. The term “accrual” refers to any individual entry recording revenue or expense in the absence of a cash transaction.

__________________________________________

That is not Budgetary/Debt related*. 

However, currently, Governments, Central Banks, International Finance Institutions use the Orthodox Budgetary (debt related) Economics Policies, Accounting that have performed quite well in the Supply. General Equilibrium driven economies of the 20th Century but have become counterproductive, obsolete in the Demand, Market Parts Equilibrium required 21st Century of ongoing Globalization^ and rising Productivity^, of the Internet^, China’s Industrialization^, and the overall super-production by the Transnational Corporations in manufacturing, farming, finances, retailing, wholesale, services^. The last 20-25 years have shown increasing accumulation of private, cities, and national Debt, Rising Inequality, Poverty, Unemployment, Underemployment, and deteriorating Middle Class that with the exception of China who used an ‘as it comes; as it goes’ Economics, has enveloped the Globe, indeed. The inability of the Capitalistic trickle-down, orthodox, status quo Economics to deal with the 21st Century developments, issues^ has become more than obvious where the Debt could be considered the best indicator of such incoherence, incomprehension. 

To deal with the exogenous and endogenous global market forces coming from the 21st Century Developments^ is necessary a new approach, approaches to apprehend their powers instead of resisting them, thus Market Economics is a Philosophical however Practical system that preserves democratic, individual freedoms, liberties to exploit, use these new Developments^ for Global Market Development.

The main, fundamental factor that makes Market Economics not maybe but must be is the Global Warming and the necessary measures to sustain it or even reverse it: clean Pollution, alleviate Poverty by using Environmentally Friendly Technologies^^ in Farming^^, Manufacturing^^, Transportation^^, Tourism^^. The usage of such technologies^^ as main Economic Tools to implement Market Leaps, Targeted Projects is in the foundation of Market Economics. 

Market Economics usage of Inflation /Deflation Data Indicator tagged to Market Development does not differ from the appointed current presaging practices* but rather it extends such practices to the Governments, Central Banks, International Finance Institutions’  Economic Policies, Accounting. The Debt Budgetary Economics is overwritten by first: the need for Environmental Protection^^ and second: by the practical reason to boost business, employment, development. As mentioned above the exogenous and endogenous forces^ have become unsustainable by using the Orthodox Budgetary Economics whereas the Market Economics capitalize on these forces to boost and maintain Market Development; what these forces do the most is preventing markets from Inflation by being capable of flooding the marketplace with products, services a basic 21st Century development. Thus, to apprehend these forces^ the existing budgeted capital and the system of distribution must evolve by first: having the Market Agents: Strict Rule of Law in Business, Unlimited Corporate Liability for the Management, Enhanced Protection Laws in Insurance, Bonding, Earth Environment, Consumer, Labor implemented that will enhance Market Security** and second: using ‘as it comes; as it goes’ approach Market Tools: Quantitative Easing, SDR, Subsidies, Low Rate Lending, Social Expenses Infrastructural Expenses Market Leaps, Targeted Projects, Markets, Regions Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions indiscriminately as inquired by the current market possibilities; the Debt, Investment, Financing evolves into ‘risk-and-reward’ approach well protected by the high Market Security** but not enforced on national or international approach currently used; the Quantitative Easing, SDR are not distributed by trickling down approach but by Targeted Investment: Market Leaps, Targeted Projects; whereas the National, International Accounting evolves from the current Cash based into Accrual-like based including Social (incl. Educational, Social Security, Medicare, Social Programs, etc.) ‘expenses’ as ‘equities’ and Infrastructural ‘expenses’ as Assets when the Market succeeds Balanced the negative Debt could be either accumulated just on ‘Books’ or written off against ‘equity’, ‘assets’ that approach will clear the Accounting from some Debt that goes against the QE, SDR; however, private Debt must be indicated as Invested and must be returned as ‘Return on Investment’ the ways current Equities, Securities Market Exchanges work. The Central Banks, International Finance Institutions using QE, SDR have to write off the debt against achieved, succeeded, accomplished by the Market Leaps, Targeted Projects: Equities, Assets. The Private Investment is Preferred first when the Market Leaps, Projects are Targeted and second, it will be retained as Liability on the Books. The Principle of Market Economics is that on a Micro-market Level the markets should self-adjust based on market competition with minimum or not any outside interference while on Macro-market Level the Governments, Central Banks, International Finance Institutions must use Commercial Banks on setup Matrix to execute Market Leaps, Targeted Projects and use the Market Tools indiscriminately as Parameters to boost or slow down business activity tagged to Inflation/Deflation Data Indicator. 

The 21st Century global marketplace indicators are very complex therefore the principle of Uncertainty is accepted that cannot be apprehended by the Game Theories but the Quantum Market Principle of Parameters is used, though the Nash Equilibrium overall applies on the Parts/Sectors Market Equilibriums (in comparison to the current General Equilibrium practice).

The theory of Modern Economics goes that moderate 2% gives the best economic environment so business has the leverage to turn a profit; therefore, the Central Banks use mitigating with the Discount Rates (Tier 1) and other Monetary and Fiscal Policies to keep it at this level. Such theory is based on assumption of relatively high return on investment and short term rebuilt after downturns that both do not apply with the 21st Century developments: the very deep 2007-9 Recession, the slow post-recession growth, the strong deflationary forces bringing stagnations even when Trillions of Dollars is poured into the most developed economies; thus, the Central Banks keep rates very low even negative and the Banks are constantly in trouble even being given free loads of very low-interest Tire 1 loans. 

The Market Economics accept Inflation and Deflation in possibly shortest span whereas all Market Tools along with boosting business and employment are tagged to Inflation/Deflation variances. The –1….-0.5…..0…..+0.5….+1 are variances considered acceptable; -0.5…0….+0.5 are triggering points. The large quantity of business activities, consumption must compensate the businesses for their effort and Deflation is to adjust prices on a Micro-market Level as a preventive valve of self-adjusting market powers. On a Macro-market Level the Central Banks, Governments, International Finance Institutions must fight larger span variances indiscriminately and it must be done on a Parts/Sectors Market Equilibrium!

More detailed research on the Parts/Sectors Market Equilibriums) to follow up!

Joshua Ioji Konov 2017

Uncertainty, Probability, Parameters, Market Economics Using Quantum Approaches

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The complexity of modern day economics invokes the uncertainty principle because it becomes profoundly clear that using mathematics or the game theory may hardly take in consideration multiple variances, changing data, probabilities. The probabilities of multiple ever-changing economic realities could be only adjusted by using parameters, as it is done in quantum mechanics, to adjust or at least prevent extreme variances by applying pressures on certain relevant points.

Until to date, the tight budgetary leach has been used to prevent from excesses, redundancies or at least such approach was supposed to work. In the pro supply economy if the tight leach budgetary releases certain expansion to prevent inflation it might be considered the only comprehensive way possible for its time. Then with the new global economy complexities arriving with the development of high technologies, productivity, globalization the game theories have flourished becoming relevant in such progressively perplexing realities. In Market Economics such perplexity goes beyond the possibility for even game theories to apprehend thus changing realities, possibilities, pressures. In practice the aggregating inequality, personal and national debt, declining middle class, and with the exception of China: expanding poverty, insecurity – pressures of exogenous forces of super productivity achieved by the Transnational Corporations in farming, manufacturing, banking, services through better management, technologies, moving, outsourcing the China’s Industrialization, the Internet that have tipped off the ‘old’ supply driven economies into demand, balance driven such. The 2007-9 Recession put the final nail in the coffin of the supply economics by accelerating the processes globally toward recalibration of assets, redundancies, the inadequate consumption, demand in a highly vigorous supply possibilities marketplace.

21st Century‘ inability of the orthodox economics to apprehend the globalized, high productivity possibilities could be put in the following grading from China that uses a best ‘as it comes; as it goes’ economics showing best results running for the last 2017 quarter 6.9 GDP growth down to the European Union’s under 1.5%. However, the results elsewhere are limited by the budgetary/debt driven orthodox supply driven economics that limits economic possibilities for vivid development. The low security of the trickle-down Capitalism, Socio Capitalism used at the moment comes from the main targets of easing business by overwriting labor, consumer, social protections to provide tempting for the investors, companies conditions to invest, do business, have better return on investment; the entire system, philosophy relies on such shady-business approaches that seeming had worked well for the developed economies like the US, Japan, Germany to succeed their high living standards, middle class, relative prosperity in the 20th Century. But this kind of prosperity is all but gone, the globalization, technologies, the non existing labor markets have taken over shrinking employment, small business and only allowing the really big business and investors to prosper – inequality, debt, unemployment, lost generations, reduction of social services, pensions, crumbling infrastructure that’s how the Orthodox Economics performs in the 21st Century, and therefore the new, Market Economics is needed to capitalize on the achievements from the 20th Century along with the new market developments in the 21st Century. Thus what was good for the 20th Century is quickly becoming an abomination in the 21st Century that needs enhancements, changes to apprehend the new market forces.

However, the question remains: how to avoid redundancies, inflation, economic upheaval if the leach of firm budgetary economics is not there?

If the Game Theories cannot solve the dilemma because of the high Uncertainty in modern day markets that only the Quantum Computing and the principles used in Quantum Mechanics to find the best adjustments in a particular situation will: both new sciences are brand new staff, never experienced; thus the principle used in modern science of adding up on past experience may not apply under these new circumstances! Lets say the Nash Equilibrium could be applied on individual Market Sectors development but not as a Game Theory, instead the multi Quantum Balance/Equilibrium may be reached by using the relations between Market Tools (Quantitative Easing, SDR, Subsidies, Low Rate Lending, Social Expenses Infrastructural Expenses Market Leaps, Targeted Projects, Markets, Regions Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions) + Market Development + Inflation / Deflation + Market Competition (Equity, Assets, ROI) + Market Forces – a function between many relative Data to be mixed in a pad of relativity to the overall possibilities; the Market Tools are used as Parameters that either accelerate or slow down Market Development (entropy to equity or their ways around).

Uncertainty Principle and Sectoral Nash Equilibriums may apply for balancing factors to succeed equilibriums, the Market Tools are practically used as PARAMETERS to get accelerations, slowdowns, carry-ons in limits not boosting Inflation / Deflation and thus undercutting Market Development.

The Probability goes through the Invested / Subsidized Capital to the Market Tools that are flexibly applied in sinhron with the a market’s specifics, to J Constant that combines the statuary Market Agents and must be reached %% Macro-level Factors relating the succeeded adaptability under the circumstances to the subtracted Inflation / Deflation effect that must be kept in limits (-0.5 to +5) when both direction Inflation or Deflation are taken in number/fraction the – or + irrelevant;

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ε,ε1x→ε,ε1p = Θ x [ℑζ – ∑(ℑζ x ΙΔ)]

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μ1 = [μ + (ε,ε1x→ε,ε1p)] = Θ x ∑[ℑζ[A(y1→y7)|P (1) +B(x1, x2, x3, x4, x5, x6, x7, x8, xn)|P (1→n) x ΙΔ|P(-05⇔0.5)]

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(μ1) – it is seasoned Market Development after the gained Entropy, Equity;

ε,ε1– Equity, Entropy (x → p) added by the Θ amount invested through – Market Leap, Targeted Project, Carry-on Capital Infusion) multiplied by the ℑζ – J Constant then subtracted by the multiplied ΙΔ – Inflation or Deflation. (see: Example)

ℑζ – J Constant is the sum of 2 probabilities; the Market Agents and the Market Tools.

A Market Agents implementation A(y1→y7) considered probability to 1

B Market Tools probability p(1→n] utilize the B

(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools’ probability effect on the Real Market that is a most complicated probability that needs Quantum Approach possible by using Quantum Computers – Market Tools are used as probabilities in conditions of implemented Market Agents meaning in high Market Security business environment that allows lower interest lending and high transmissionability of the invested capital.

ΙΔ – Inflation or Deflation – acceptable variance p(-05⇔0.5)

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Example:

14 = (Θ)10 X c[(ℑζ)2 [(μα)1(Ω)(μτ)(1] X (Ι/Δ)–0,3/0.3 = 0.6] 2 – 0.6 = 1.4 x 10 = 14

14 = 10 x ∑ [2 x 0.3] = 0.6 ∑ (2 – 0.6) = 1.4 x 10 = 14

ε,ε1(Equity, Entropy) gain 14 thus M^ = 114-10 Liabilities;

if the invested capital comes from QE, SDR it must be subsidized to lift the EE will reach 121 whereas ‘seasoned’ EE may bring it down (seasoned E,E – Equity, Entropy = M^ – Market Development

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The Quantum Probabilities are:

Market Agents [A(y1→y7) ]complete implementation that will keep in (0….1) variance;

Market Tools [B(x1, x2, x3, x4, x5, x6, x7, x8, xn) ] that will add to the J Constant to accelerate, multiply the Market leaps, Targeted Projects, Carry-ons;

The J Constant ℑζ up to n%;

Targeted Low Inflation / Deflation Ι/Δ[(–0.5….0….0.5)] that will not undercut Market Development – these factors are specific for individual markets, too;

Market Leaps / Targeted Projects / Carry-ons Θ that will be enough in value (at least 10% of the current M’s GDP) to ensure full employment and consistent Market Development;

These variances are targeted by the Market Tools indiscriminately; but also these are in relations to each other that must be taken in consideration and therefore only Quantum Computing can take so diverse variances into possibilities. Fundamental is the retaining of Inflation / Deflation where the Market Actions are tagged to it. The Partial / Sectoral Market Equilibriums are reached to make up the General Equilibrium; so, the Uncertainty and numbers of Possibilities are becoming even higher.

Μ– Market Development requires seasoned E,E – Equity, Entropy

Θ– Market Leap, Targeted Project, continuous Market Development

A(y1→y7) Market Agents:

Strict Rule of Law in Business,

Unlimited Corporate Liability for the Management

Enhanced Protection Laws in;

Insurance,

Bonding,

Earth Environment,

Consumer,

Labor

B(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools to accelerated Entropy/Equity

Quantitative Easing, SDRs;

Subsidies;

Low Rate Lending;

Social Expenses (incl Educational, Pensions, Medicare, Social Security, Unemployment Benefits, etc.);

Infrastructural Expenses;

Markets, Regions Parts Equilibrium Monetary Policies;

Fiscal Policies;

Sectoral Regulatory interference by Central Banks, International Finance Institutions).

n. Others

ℑζ – J Constant (0……n) where MS (Market Security) with implemented A (Market Agents) brings ℑζ to (1) in relation whereas the (1 – n) relate the adapted, adjusted Market Tools toward the Macro-level Market thus the efficiency fraction.

Ι/Δ – Inflation/Deflation

The Principle of self-adjusting Micro-level Markets and artificially adjusted using Market Tools as Parameters on Macro-level Markets on Parts / Sectors Equilibriums’ approach.

The most perplexing, hard to adjust, Probability in the above relativities is the B

(x1, x2, x3, x4, x5, x6, x7, x8, xn) Market Tools: Parameters’ mitigating effect on individual Parts/Sectors acceleration or slow down but also the relation among these parameters themselves; so, when a parameter is added or subtracted to certain value it affects the overall Market Development on a Sectoral and General Equilibrium as well other parameters in the occasion; when having in consideration the UNCERTAINTY PRINCIPLE and the MULTIPLE POSSIBILITIES and apprehensive overview requires QUANTUM COMPUTING capability to do such multi-functional, multi-operational, multi-informational estimation.

The ℑζ– J Constant (0…1…n) is consequential to the implementation in complete of the Market Agents that would give (0…1) ; the (1 to n) is a effect coming up from the proficiency of B(x1, x2, x3, x4, x5, x6, x7, x8, xn) in the execution of a Market Leap or Targeted Project that reflect the specificity of Individual Markets: (example: let’s take a market that is socialized so the more private business inclination will have better effect on the ℑζperformance or the way around: if the market is too privatized that reflects lack of employment: then the adding some social distribution would be more effective). The targets are high business activities to keep full employment using indiscriminately the Market Tools in an ‘as it comes; as it goes’ approach. Even there are countless variations in putting pressure on different Data Indicators: the positive, accelerating business are some that can be considered boosting business activities, employment to the required levels, thus the probabilities are limited and the % of impact vary but is yet limited in varieties: from these possible varieties are extracted the most vigorous for a particular market under its circumstances, development.

Joshua Ioji Konov 2017

Market Tools B(x1, x2, x3, x4, x5, x6, x7, x8, xn)|P (1→n) Boosting Market Development While Keeping Inflation / Deflation in Limits ΙΔ|P(-05⇔0.5)

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ε,ε1x→ε,ε1p = Θ x [ℑζ – ∑(ℑζ x ΙΔ)]1 

The Market Tools B(x1, x2, x3, x4, x5, x6, x7, x8, xn) as parameters setup by flexible usage through Market Leaps, Targeted Projects, Carry on Market Policies uses Environmentally friendly technologies, techniques in farming, manufacturing, energies, heating and cooling, garbage disposal, services, transportation to boost Market Development: business and employment, infrastructure and acceptable living standards I.e. alleviation of poverty, elimination of any Earth pollution under sustained Inflation / Deflation ΙΔ|P(-05⇔0.5)

1 μ1 = [μ + (ε,ε1x→ε,ε1p)] = Θ x ∑[ℑζ[A(y1→y7 ) |P(1) +B(x1 , x2, x3, x4, x5, x6, x7, x8, xn ) |P (1→n) x ΙΔ |P (- 05⇔0.5)] _____________________________________________________________________________

(μ1) – it is seasoned Market Development after the gained Entropy, Equity; ε,ε1– Equity, Entropy (x → p) added by the Θ amount invested through – Market Leap, Targeted Project, Carry-on Capital Infusion) multiplied by the ℑζ – J Constant then subtracted by the multiplied ΙΔ – Inflation or Deflation. (see: Example) ℑζ – J Constant is the sum of 2 probabilities; the Market Agents and the Market Tools. A Market Agents implementation A(y1→y7 ) considered probability to 1 B Market Tools probability p(1→n] utilize the B (x1 , x2, x3, x4, x5, x6, x7, x8, xn ) – Market Tools’ probability effect on the Real Market that is most complicated probability that needs Quantum Approach possible by using Quantum Computers – Market Tools are used as probabilities in conditions of implemented Market Agents meaning in high Market Security business environment that allows lower interest lending and high transmissionability of the invested capital. ΙΔ – Inflation or Deflation – acceptable variance p(-05⇔0.5)

B(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools to accelerated Entropy/Equity

1. Quantitative Easing, SDRs; 
2. Subsidies; 
3. Low Rate Lending; 
4. Social Expenses (incl Educational, Pensions, Medicare, Social Security, Unemployment Benefits, etc.); 
5. Infrastructural Expenses; 
6. Markets, Regions Parts Equilibrium Monetary Policies; 
7. Fiscal Policies; 
8. Sectoral Regulatory interference by Central Banks, International Finance Institutions.

      n. Others 

The general unpredictability / uncertainty of very complex market forces aggravated by the globalization, rising productivity, improving technologies, transnational corporations global expansion in farming, manufacturing, retail, wholesale, technologies, financing, the Chinese industrialization, and the Internet have brought exogenous for most market forces to improbable complexity that could not be offset by the status quo ideological economics of the Capitalism nor by the Game Theories, nor by the governments taking bigger role in the such orthodox economics’ practices. The self-adjusting Economics cannot prevent crushing recessions like the 2007-9 one, nor accelerate the post-recession rebuilding; under the heavy pressure of possible economic collapse the central banks and governments in the most developed economies have taken highly revolutionary policies such as Quantitative Easing, Subsidies, Bailouts of Banks, Expanding Foreclosures and Unemployment Benefits periods that supposedly would have brought Inflation but instead imploded stagnation; the even chaotic such actions helped the economies to regain some vitality, growth. However, the ideological economics that brought the 2007-9 Recession on the first place regain their ideological grip not being able even to explain what really had happened. The only marketplace that somehow and to a certain extent continued its growth was China that used the tools of economics very flexible on an ‘as it comes; as it goes’ policies principles. The Market Economics go beyond such economic policies into creating a system where the Market Tools are used as Parameters to prompt from one side continuous Market Development of alleviation of Poverty through Environmentally friendly methods, and by having market forces on Micro-market level self adjusting through market competition, and from another whereas on Macro-market level artificially using Market Tools to keep very low Inflation / Deflation.

The improper setup flexible usage of Market Tools might have a different effect  on individual markets: 

• If exaggerated I.e. incompatible amount of money is invested in a market such can bring high inflation and may even crush it; or 
• If not enough of capital is invested in a market that such may bring huge deflation and impoverish even higher percentage of its population 

Thus bringing further Earth pollution, with high unemployment, a not properly functioning market. 

In this research is strictly stated that individual markets have their specifics, therefore, any intervention: Market Leap, Targeted Project, or Carry on Investment must be done in apprehension of such differences; however, with the required implementation of the Market Agents as stated by previous working papers of these research a existent minimum of a high security market environment would be in place. Despite of such existent minimum the differences, specifications must be taken in consideration in any artificial move on any market. Thus to relativity between individual Market Tools to Inflation / Deflation, and to full Employment, Business activity, Infrastructure (Equity) building is highly improbable to be achieved by the probabilities possible by the existing technologies but through Quantum Computing allowing unreachable in the past compatibility and variations. Thus this Market Economics was called Quantum too, because of its very high uncertainty and demanding complex relativity between a number of factors, possibilities.

The majority of Market Tools could be applied, enforced more to either supply or the demand sides of the occasion – thus to seek balance, first such must be sought on parts, sectoral market basis equilibrium instead of general such as some sectors overheat needing tightening up while others are in the opposite side of the occasion either needing additional boost or at least still in their ways up; second, the one way approach let say the demand side only can prompt quick inflation – instead careful configuration a particular market specifics is needed: let say a market is socialized like the Norwegian one than the pro-private business policies are to balance the market imbalance of a one way development, the opposite distinctions require the other way around thus too rigid privatization while the demand is relatively weak and stagnation sweeps through the Social expenses must be used to offset such extreme situation. It is all about balances under very low Inflation /Deflation – the second particularly distinguishing such economics from the Capitalistic one and the probabilities of high market security market development allow such difference to be possible where the lending rates to small businesses and investors could be very low without compromising with the risk factor requirements. The Market Tools also  will have multidimensional effect being invoked by the need for Earth preservation that is not purely market factors but a dominant such that requires actions not necessary in synchrony with the debt controlled current budgetary economics, and therefore, as such artificial factor modulate the global marketplace the Market Tools must be used artificially on Macro-market Level to accelerate, promote, carry-on high business activities, full employment, market balance; thus the quantum uncertainty and multidimentuallity can provide such balances and allow the markets to develop without prompting harmful recessions. The relativity that accumulate by the Market Tools and affects the real economy has been well researched by the current economics though in combinations of multiplicity and international markets (globally) such could not be done first, because the mathematical approaches are limited in such uncertainty and second, because the further developed game theories could not accept multiple factors either even though the Nash Equilibrium and other probability theories were in use. The Quantum Economics i.e. Market Economics goes far beyond single or couple probabilities into ‘n+’ probabilities and the effects on multiple factors on the global marketplace.  

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Example 1: you have 10b QE subsidized into public transportation, infrastructure, Social Expenses, Fiscal Breaks, prevailing wages, residence requirements, limited lending to small businesses up to middle size – however, the equipment, materials, energy is produced by large transnational corporations that make it global. 

The Market Agents are implemented in the Market!

If for the local market 10b is 10% of the market – the demand side are salaries, business income, social expenses, fiscal breaks, etc – the supply side are the purchases, small business output, services, etc; however, the effect of the global exchange of manufactured equipment, materials, goods, is to retain low Inflation. Thus open market exposure to the globalized marketplace is paramount.

The Market Development is 1. Entropy – Sales, expenses, business activity, employment and 2. Equity – infrastructure, market competition, poverty alleviation, clean environment;

To accelerate Entropy / Equity build up the higher Market Security with the implementation of the Market Agents will be established, however, the flexible ‘as it comes; as it goes’ usage of Market Tools under very low inflation even Deflation will be achieved only by appropriately weighing on the different Market Tools in accordance with the specifics of an individual market.  

In this example, the Investment is to change the old vehicles, improve public transportation, provide the needed employment by steering the needed business but also by apprenticeships and expanded public education. The funds are to be disposed by the commercial banks on setup matrix. To alleviate poverty also the social expenses are lifted targeting food, heating, transportation, job opportunities through prevailing wages and residency requirements. Fiscal Breaks on taxation are to have the capital circulate in the Market. In case it is a Targeted Project in a process. There are three requirements for the implementation: 1. Proper preparation 2. Fast execution 3. Not allowing any corrupt or disruption practices. 

What complicates this Targeted Project is the necessity for multiple such Projects that must be executed simultaneously on the markets in proximity for 1. To sustain huge movement of people toward Targeted Project 2. To settle employment spread to all areas, 3. To avoid pollution coming with a concentration of people in less developed as infrastructure markets. The Market Economics does not prompt urbanization, industrialization, the concentration of people but the alleviation of poverty by using environmentally friendly methods in place: meaning in some market it could mean manufacturing and services in another farming and services, in third tourism and services to dominate market industries. 

Again, all Market Leaps or Targeted Projects are tagged to Inflation / Deflation and therefore to the maximum a Demand-to-Supply internally must be paramount even though the globalized marketplace could sustain serious inflationary pressures by themselves. 

The complexity of multiple projects, invested capital, other market tools, and the requirement to sustain low –0.5 to 0.5 Inflation / Deflation must be overcome by taking in consideration the pro-supply projected business, the existing supply local and global capabilities, the rise of demand under these projects that in a pot must avoid ‘big waves’ that can crash the market. 

While, in practice, China is using a very similar project approach but on a smaller scale and therefore the results succeeded even impressive compared to the rest of the developed world are very limited in comparison to the probable Market Development under a very aggressive and widespread Market Economics: and what really presses the need for such is the necessities for poverty alleviation to Earth preservation not providing long term allowance. The Chinese experience even extremely valuable in practice, and serving as an example does not provide the needed on the large scale functionality. 

In the Example 1: If 10% or 10b USD is invested through Market Tools to steer enough business activities, employment, consumption, building of equity just the implementation of the Market Agents (A) should provide Probability (1) effect on the invested capital so no losses are projected but the Inflation’s deduction, therefore, the Inflation / Deflation should be kept close to (0); the Market Tools effect should add additional acceleration, transmission-ability to the Investment thus adding to ROI, Entropy, Equity in which continuous after the operation business activity, employment, consumption must be achieved; thus, it isn’t about quick in-and-out profit driven operations but a long term Market Development where Equity / Entropy are seasoned: the Detroit’s effect where capital goes through brings profit and when the industrial production technically moved out or was robotized a devastated marketplace was left over; such, effect cannot be environmentally accepted – therefore, it is the service sector along with small business and investors, and the Social and Infrastructural Expenses that are suppose to keep the Market Development running on, the market competition, employment, consumption in check., and the Earth environment clean. 

To use environmentally friendly technologies in transportation a very inexpensive public transportation, electric and hydro vehicles, and railroad, water channels, airfreight system must offset pollution; to use such in energy generation – the green energies must become the only source, same with farming, manufacturing, tourism, etc; to offset deforestation the heating and cooling must become elsewhere driven by green energies. The biggest difference between this new Market Economics and the Capitalism is the involvement of the developed economies to swiftly export Market Development all over the global marketplace, to extinguish any pollution, to establish stability by having people engaged in productive activities, having access to jobs and opportunities. Someone will call this research utopian, but actually, it is the only possible way to avoid Earth destruction by using peaceful means, and by saving personal liberties, freedoms and by not letting the government take over the business, life, personal freedom. 

The implementation of the Market Agents expands personal management liability, strict environmental protection, consumer and labor such that must stop large transnationals, all businesses from hurting the environment or inflicting human rights violations. But all of this is possible with the expansion of possibilities for productive business activities, market development, prosperity on a global scale. 

Joshua Ioji Konov 2017

Governing in Market Economics

The theory of Orthodox Economics makes government either accomplices to shady business environment as per pure Capitalism or an alternative employer, business incubator as per Social Capitalism taking some of the functions of economic competition. The self-adjusting theory is supposed to help reduce redundancies from the business and governments alike with its final target more competitive overall economy that establishes the right conditions: less debt, less bureaucracy, less expenses on government spending to boost investment, business, productivity that finally had proven through centuries to improve living standard, economic power, growth. That’s how the theory goes: a pro-supply economy needs an easy business environment to make startups easy, private entrepreneurs supported by trickle down capital would create enough business to employ, improve infrastructure, stabilize fiscal reserves, then ensure some social expenses, pensions, basic education. When an economy goes into a downturn, the government expenditures, regulation, employment must be reduced, as mentioned before, to kicks off investment, business, productivity; thus it goes on and on. The dialectic spiral of such economics should go upward with short downslopes of self-adjusting. 

The right role of a government and the International Finance Institutions in a Market Economics should be an ‘invisible hand’ along with investors: national or foreign; the principles of how a market/economy is organized compiles of Market Agents: strict laws in business, unlimited corporate liability, enhanced and strict environmental, consumer protection, labor, insurance, bonding laws – laws that will create market conditions for competition, boost business activities, increase demand, alleviate poverty, establish middle class; why in the developed markets the governments are the ‘invisible hand’ to succeed Market Development in the poorly organized countries lacking capital the International Finance Institutions through Commercial Banks, Transnational Corporations must target environmentally friendly market developments by separating economics, economies from politics; thus corruption, disorganization, mismanagement do not overrun targeted Market Leaps as it has been experienced. Economic policies must be separated from politics by requiring the implementation of the Market Agents into the market, economies structure: the Rule of Laws in Business! Market Economics in its fundamentals is full implemented Market Agents that raise its Market Security: lend-ability, marginalized advantages of the Big Business and Investors to the Small to Medium Businesses and Investors, marginalizing the advantages most developed markets, countries, economies hold to the developing, underdeveloped, undeveloped markets, countries, economies. However, the big businesses, investors, the most developed markets would play substantial role in the process of market development that will benefit them substantially giving to them even further boost as manufacturing, market, educational, technological, Internet hubs. 

What the Market Economics does is kicking off environmentally friendly business,  employment, consumption, demand, alleviation of poverty by using the globalization and rising productivity to offset inflationary forces. 

To succeed Market Development the market agents are implemented as a compulsory but the market tools are used on an ‘as it comes; as it goes’ approach: used flexibly in synchrony with  the individual market specifications; the Market Tools are the Quantitative Easing, Market Leaps, targeted Subsidies, low interest Lending, Fiscal, Monetary Policies, International and National Investment, Social (including education, pensions, social security, Medicare) and Infrastructural Expenses. The major difference between Market Economics and the Orthodox Economics is the in the usage of such Market Tools not based on political ideas but on purely economic, data, situation. (as an example: if  a market, economy needs to be balanced by expanding Social Expenses, Fiscal, Monetary means to boost consumption, demand the Social Tool as a Market Tool must be used indiscriminately, the other way around goes the same: if the Social Expenses boost inflation countermeasures may include not further expanding such, or even reducing some).

Market Economics is using the most enhanced developments in economics, the globalization, the rising productivity to boost business, employment, fiscal reserves in the individual markets, countries through using Market Tools pinned to the Inflation/Deflation variances. Whereas, the Orthodox Economics bases economic growth purely on budget, investment, productivity, self-adjusting approaches pinned to Debt/Deficit. What makes Market Economic possible are the mostly exogenous forces of the Globalization and rising Productivity that offset Inflationary forces; the Market Economics is artificially adjusted on Macroeconomic level, and self-adjusting on Microeconomic level. How is it possible to split Macro and Microeconomic levels is by implementing the Market Agents that create unifying market condition for working economics – micro market level independence, competition, self-adjusting. The Market Tools are to be used as parameters in a very complex market environment to either boost business activities on a sectors based approach. The Game Theory may not work in such situations because of the high complexity exogenous forces prompted by the globalization and rising productivity. 

The necessity to find new approaches in economics to handle the 21st Century economy is aggregated by the weighing Global Warming that requires immediate action to protect Earth Environment – the EU most developed countries, China, the US and a few other like Morocco have taken actions to clean environment by using more and more green energies, however, the most polluted cities, countries are not the most developed once but those using old vehicles, mass fossil fuels, wood for heating, the improperly disposed garbage.  The sources of current pollution lays into widespread poverty, underdevelopment; thus the only conceivable way to reduce, eliminate it goes through the poverty alleviation by not using uncontrolled industrialization, even though by using the improving technologies the widespread industrialization is not probable at all, the robotization, the improving corporate organization, the overall high productivity reduce any possibility for such; however, the shady business laws, the corrupted governments, the need for employment opens the doors for any possible pollution in these developing markets, countries. From any perspective the Earth protection and cleaning is paramount therefore the Market Economics take Environmental Protection, Poverty Alleviation as targets overwriting budgetary constraints – Debt, Deficit, the lack of Capital must not stop Market Economics from actively pushing Market Development so the Global Poverty is alleviated thus the Earth Environmental Protection is accomplished. But these developments are implemented through market competition, preserving individual freedoms, relying on private enterprises not on the governments take over. 

The most developed economies will have to expand Social and Infrastructural expanses much further than it has been accepted to keep market balance intact: the accelerated business activity is the only alternative to it, and such must be targeted by Stimulus, Lending, Fiscal, Monetary sectoral policies; the Quantitative Easing to become a supportive tools to supply the needed capital; what comes first is not the Capital but the Development, employment, business activities; the Inflation is the only indicator that must be taken to limit or expand the active market tools.

Debt, Deficit is the ruling Orthodox Economics indicator – Inflation, Deflation is the ruling Market Economics indicator!

The Investment, Capital is becoming less secure more like current Stock Exchanges, even though the Market Risk is very much limited by the high Market Security succeeded by the implementation of the Market Agents. In the overall market development the volatility on a macro level could be only adjusted by using the Market Tools one way or another as Parameters. The value of investment, capital is not to change the idea that only investment, capital means growth, development must change, however, because the unorthodox tools of accelerating market development such as quantitative easing, SDR, stimulus do not rely on investment, capital only. The unorthodox market tools are necessary to boost enough business, employment, social expenses to succeed alleviation of poverty, consistent market development. 

The International Accounting System has to accommodate all orthodox and unorthodox market tools moving to an Accrual Accounting – the investment, capital, capitalization must be taken in their relation to Market Development, and it must be done Globally. Private Investment, Capital brings Return on Investment that comes with the risk; it should be no such thing as protected by the governments, International Finance Institutions investment whereas they pursue borrowers, impose sanctions, require austerity measures – the role of the governments, international financial institutions is to ensure the Market Agents are fully implemented, and all participants play by its rules that are very simple: the Rule of Law in Business. 

Joshua Ioji Konov 2017

Why It Is That Difficult to Change Economics?

 

The system Economics has evolved in time into Game Theories based on data mining; conceptions founded, many times, on idiosyncratic endogenous principle conclusions. Mathematics has been used to back up these conclusions: formulas taken as status quo in time. The overall philosophy of the orthodox economics accepts struggle to survival as bringing in individuals, markets the vivid powers to invent, innovate, create, organize, adjust to the changing economic conditions; when exaggerations, redundancies, inefficiencies compile an adjustment, recession occurs that could be self-adjusted by individuals, companies, institutions to a point when a new fun off can start; thus, spinally the economic pressures increase productivity, sufficiency the standard of living, better conditions of infrastructure, education, better life for the many. A minimum unemployment rate needed to carry on enough eagerness for the labor to support the demand for employment, labor without prompting inflation as if the unemployment goes under the % so the labor market is disrupted then high wages are required that boost inflation, high prices and limit businesses ability to increase productivity, production, keep competitive internationally in the US it means interstate, too.

The orthodox economics has evolved into game theories when in time varieties of factors, indicators appear that obviously invoked the need to use probabilities but still in an idiosyncratic, closed system. Even though the game theories give a certain wider spectrum of data and using that data, the overall scheme of certainty was retained: the principles of debt, investment limits, productivity have never been overwritten or taken in different but the developed trickle-down economics. From the pure Capitalism of the wild wild west to the Social Capitalism of some European Countries, to the Communism of the post-communist block economies the system of spinally self-adjusting economic growth – recession – growth has been the status quo – the orthodox economics of the 20th Century. The Keynesians added more monetary through governmental intervention counter-cyclical measures to shorten recessions, even accelerate business activities. Same of the game theories added to that by targeting different economic sectors to boost further business. However, the status quo of debt, investment, productivity has been retained and any substitute was considered to be done by expanding the governmental role in business activities: the two opposite right to left either asking for less or more governmental intervention, and explaining economic developments by such economic interference; blaming one another for all the gloom and bust.

Actually, the leftists and the rightists of the present are both correct the economy in the developed and with few exceptions in the developing countries is grossly under-performing: debt, inequality, un and underemployment, insecurity, diminishing middle class and rising poverty are spreading like a plague. But, when the pure Capitalism approach has been used it did not affect these developments neither prevented it – such as the 2007-9 recession that enveloped the globe, neither the Social Capitalism, not the least the Communism have done it, the Soviet Block disintegrated, the European Union is in a process of disintegration: the Brexit, Italian referendum, Hungary, Romania are a good example of what have been the consequences to not working economies. The globalization and the rising Productivity of the 21st Century have changed the pro-supply economic pressers of the past to pro-demand, asking for equilibrium forces of the presence. China’s Industrialization, the Internet has aggregated these new conditions actually started and worked out by the Transnational corporations, the improving Technologies, the hugely accumulated Capital that exploited these new conditions to move, outsourced, expended industrial production, financial services, retail, wholesale, farming, services. The global marketplace has become overtaken by these forces to change the pro-supply economic prevailing force to the pro-demand, pro-equilibrium required such. The economies changed into markets; the economics must change into market economics to apprehend these new developments, but it did not happen: ideologies, status quo, politics have prevented the science of economics to evolve into market economics. That has brought the economic slam elsewhere but China who accommodated an ‘as it comes; as it goes’ economics that worked out the 2007-9 recession and post-recession global slow down and instead took out of poverty 600 Million people, and maintained high economic growth.

The China example has not prompted the western politicians, economist to start figuring out what really has happened to adjust and adapt the orthodox economics, but in the opposite, it made them become hardliners insisting that these new developments are temporarily, or a result of not imposing even further austerity, debt restrictions, shady business environment.

The 21st Century calls for flexible market economics that will ensure less inequality, full employment, Earth’s environmental protection, open global marketplace, however, individual markets developing such flexible policies that can manage consistent market development, alleviation of poverty, saving of the personal freedoms and the democracy for all.

Joshua Ioji Konov 2017

EU’s Economics of Ideas

The underperforming of the European Union economies is a fact not contested by the left or the right spectrum. The meager economic growth following the US spread globally recession has crashed banks and governments alike. Close to call elections miraculously avoided the far right or left parties from taking over – a good example was Austria; however, in Hungary the luck ran off, the Brexit, the Italian referendum, or the ravaged Euro barely holding above the Dollar, and many more were the consequences of the EU economic policies, the Euro and  the 3% Debt Rule that did not give any flexibility to national governments, the German rigidity pushing trickle-down liberalism and imposing strict austerity. The EU economics up to the Quantitative Easing by its Central Bank had been by the book, but even by the distribution of the QE such has been continuing consistently: simply enough, the EU economists and policymakers believe in the trickle-down economics of the Capitalism up to an obsession, and when it did not work out the politicians manipulated governments, elections, referendums to prove that the not working is either what is suppose to be, or just a temporary occurrence that most definitely will improve if the policies are even further rigid. The politicians have been so much blinded by their ideology and fellow economists that they tended to blame anyone: nations of being stupid of voting out of the Union, or opposing austerity, the ones on strikes against cruel measures undercutting their benefits and wellbeing, even the economic indicators which month after month and year after year have been showing total underperformance; indeed, their stubbornness has overpassed any reason. But most importantly it has brought general misery to the EU populace that instead of vivid market development and prosperity such approach has brought general stagnation. Some economists have blamed it on the Euro or other technicalities being afraid to call it inadequate economics that could not apprehend the forces of globalization and high productivity to spur business activities and responsive consumption/demand. The pro supply drove EU economics is founded on proven by the history philosophy that built economic powers from the US to Germany and Japan; but why the system has not been working out for the recession and post-recession times, or it could not have been done any better?

In the world exists a big diversion that on macro-level large businesses: manufacturers, financiers, high tech and service companies, etc would have the markets/economies self-adjust, the recessions should be short synonyms for such corrections. The tight leach of debt prevents from redundancies and inflations; whereas, economies are run on budgetary principles. Then the 2007-9 recession came out roaring over the US and other countries invoking more actions by the Central Banks and Governments: Quantitative Easing, Subsidies, bailing Large Banks, Corporations, extending Unemployment Benefits, Foreclosures, and other countercyclical measures that finally helped to stabilize economies. Though the results differ from region to region, from country to country: some like China withstood these winds just by slowing growth, others like the US, UK, and Japan managed to come out on clear with even short of full recoveries modestly higher growth and lower unemployment, and third as the EU that the growth is small to nothing and the unemployment in places like  Greece, Spain runs in the 25% and on youth over the 50% and overall the EU is on the double digits unemployment rate. Between 1993 and 2005, 98% of households in 25 advanced economies experienced rising real incomes. But in recent years this trend has ground to a halt and even gone into reverse. The pressure of the globalization and technologies has been accelerating progressively, therefore, the ability of the self-adjusting austerity economics to keep employment and debt in the normal levels have become less effective: the artificial interference by the governments and central banks of the most advanced economies is a good example of such process. The off-hand economics must evolve into invisible-hand ‘as it comes; as it goes’ economics; however, there comes the question is the governments capable to generate and hold on concerning their inflexibility and incompetence when it comes to markets and business? – a legit question! The governments and central banks could only jump-start business activities either by market leaps or/and targeted investment, but only business competition on micro-level posses the functionalities to successful market development with lasting effect. However, some countries like China, Norway have more developed government structures than others like the US, UK, so, as mentioned before countries, markets with governments too involved in business must withdraw on a micro-level, let the business competition compete and adjust. In the opposite example, the complete hands-off by the governments and central banks when it comes to social and infrastructure is ineffective thus these governments and central banks must get more involved by ensuring social improvement. The balance of involvement is in the point of market success and equilibrium.

Practically, how to manage Market Equilibrium? – from one side it is full employment and fair market competition and from another, it is limited Inflation/Deflation – the Market Tools are used to either spur or slow market development to prevent high Inflation/Deflation volatility. Debt and inequality are secondary effects on a functional or dysfunctional market development: logistically when functional market development debt and inequality will be low to moderate and the way around. Market development builds equity thus creating opportunities for return on investment, high inequality is a product of not fluent market development: either underemployment is very high or market competition is unfair, therefore, if Market Agents are adapted the micro-level market forces will naturally for the market distribute wealth fairer and debt will be more limited. The ideas that tight leash on access to financing to prevent inflation/deflation is the only approach had worked in a pro supply economy and no concerns about Earth pollution, thus the system must evolve into a worldwide markets development to offset Inflation/Deflation – the Global exogenous to most  markets forces must sustain the demand-driven Inflation; the ongoing market competition should offset Deflation. However, on Macro-level market tools must be used as parameters to prevent, diminish Inflation/Deflation built ups.

If the EU is an example of how inadequate orthodox economics has been, and China of using flexible economics has performed, the theory of economics should practically comprehend the real economic reasons for such developments. Why in the near past the Soviet Block ran by the governments’ economies experienced constant goods and services’ shortages lacking innovation while the Capitalism succeeded in establishing high living standards and high productivity; then why the turn around the nowadays China using mixed free market competition and state governed ones have better improvement? Is it because Capitalism is not performing anymore or the Social distribution in combination with the free markets betters? – well, I believe, it is some of the above but not in the ways of Socialism to Capitalism comparison: it is the Marketism I.e. Market Economics that at the moment is adapted by China or even more, it is the Marketism not being adopted by the EU that by the way has much more advanced structures to boost market development on the first place; it is the stubborn EU economists and politicians that are to blame for it, not the way around. The Marketism is closer to Capitalism than to any other philosophical system. The personal freedoms are a great advantage when developing markets, if properly given the opportunities, and disadvantage if not.

Joshua Ioji Konov 2016

The Relativity and Uncertainty of Market Economics

Economics is a philosophical system of taking statistical data on individual technical indicators consequential to subjective conclusions: an example of such: Gross Domestic Product variations call % positive or negative growth while two consecutive quarters of the second call a recession. Although the GDP does not indicate the distribution of gained or lost wealth or many economic activities such as at home labor and any transactions that do not exchange cash. Other example is the Unemployment Rate The official unemployment rate (technically called U3) simply divides the number of people who are not working, want to work, and have been actively applying for jobs (defined as having applied to at least two different employers within the last month) by the sum of the people working and those defined as unemployed. Thus, lots of people who are unemployed by many reasonable definitions do not count as such in the official government statistic. Using the government’s own definition, workers who are discouraged or marginally attached to the labor market do not count in the official unemployment rate. There are different, broader, unemployment measures available, but they do not get the headlines.

However insufficient, the GDP, Unemployment Rate, and other statistical indicators are used to draw ‘at the moment’ situational picture on an economy that provides the Central Banks parameters to trigger Monetary, Fiscal or other Policies. When recession persists going even deeper into the red the actions take even very unorthodox actions such as Quantitative Easing, saving individual Banks, Corporations, extending Unemployment Benefits, etc.

What ‘modern’ economics lacks? – first the inability to call economic indicators: trigger flags into a system of relativity and uncertainty where ‘market tools’ must be used not based on believes or ideologies but on ‘counter’ or ‘pro’ cyclical pragmatic measures – parameters into an unstable market environment; and second, the prioritize on at the moment actual market tools to accelerate or prevent relative market developments. Let say that a market e.d. an economy is running into stagnation with diminishing demand: seemingly it must trigger pro-demand measures, or a market is running under strong inflationary forces: such should take measures to boost the supply driving market forces. The relativity of demand to supply or the way around is balanced by market equilibriums in which situation the market resistance is at it’s the least force. So to speak, when market tools are used as parameters on an ‘as it comes; as it goes’ approach triggered by ‘at the time’ market developments; such pragmatic approach may prevent the real economy from violent market variations.

The relativity of the real economy’s market developments is not unconditional because of the high uncertainty of economic realities; however, by isolating ‘at the moment’ developments then acting to smooth or accelerate these developments: let say, a market is running stagnation (deflationary forces) while the consumption/demand is indicated then the pro-expanding demand market tools should be used to steer higher employment, income, and consumption. The action strength will depend on the strength of the indicated variations.

Market Agents such as the Environmental Protection that is unconditional – thus any other market actions must comply with. Less demanding but not the least important are Poverty Alleviation; or Consumer & Costumer Protection, the Rule of Law in Business, and Insurance & Bonding that will help saving Earth, raise market security to allow SME and Investors lower rates lend-ability, raise the level of quality of business activities.

Market Tools as triggered Market Leaps through Direct Investment, Subsidies, Low rate Financing, or Social and Infrastructural Expenses, Sectoral Monetary Policies, Fiscal and Lending Policies, Prevailing Wages or just maintaining market equilibrium by using these Market Tools as Parameters under Uncertainty. Inflation/Deflation are fundamental Market/Economic Indicators that can trigger actions on the Demand or Supply Sides. Minimum Unemployment is down to Full Employment relying mostly on Small to Medium Businesses and Investors to steer enough business activity; however, governmental and other means for employment are feasible: balancing private employment. Some markets where the governments are more involved in employment could evolve into more private employment, other may follow the way around: ‘the means justify the deeds’; however, free entrepreneurship performs as best in market development and manage at best market equilibrium; the inflexible bureaucracies cannot compete private entrepreneurial organization such. There are market sectors that commonhold property is must to ensure fair common services, and the percentage of nonprivate employment will probably rise – the fiscal reserves that support such employment must also be flexible, sometimes not debt related but market demand is driven. Overall, to succeed full employment in a highly technologically developed and developing world the idea of National Debt should evolve into the ideas of protecting Earth Environment and alleviation of Poverty to support it, the entire market economics should be founded on two bases: first is the Micro –level that is directly market forces compliant and adjusted by the by competing market participants and second is the Macro-level that is not the only market adjusted: the appointed factors of Earth Protection and Poverty Alleviation will overwrite it, but also even the existing market forces could not let it self-adjust as it is seen by the 2007-9 Recession that required enactment of many counter-cyclical  governments actions such as the Stimulus  packages, the QE, the bailing of ‘too big to fail’ Banks. The Market Tools usage could be adjusted on Macro-level to eventually slow-down an overheating market by targeting individual market sectors (example of such interference is the way China cooled down their Real Estate in post-recession time by limiting lending access to 50% LTV on first property and prohibiting lending on a second property, also not allowing for the Developers to change prices from the previously listed ones. The targeted actions by the Central Banks should not be limited to Discount Rates or even Quantitative Easing but should go to individual sectors and fix the redundancies or shortages.

The ongoing Globalization and rising Productivity have put strong market exogenous forces over national economies in the 21st Century as seen it has prompted excessive national debt and rising inequality. The Transnational Corporation in manufacturing, financing, services have flourished under these new conditions by outsourcing and moving business elsewhere; in addition the China’s Industrialization and the Internet have aggregated these market processes of changing the pro-supply forces well handled by the economics of Capitalism into a pro-demand and pro-supply new forces ravaging many markets because the inability a new system of market economics be implemented.

To include these exogenous market forces along with the endogenous such of technologies and highly sufficient management, and the Earth Protection very expensive and uncompetitive means and the needed Poverty alleviation on a currently used Budgetary Economics is going to be impossible: if the whole economics is ruled by debt and budgetary approaches the many issues arousing from these 21st Century developments cannot be properly dealt, and therefore an evolution to a Market Economics adjusted to Inflation/Deflation must be apprehended. To overcome the headwinds coming from the new developments to stay on Austerity adjusted Debt economics is impossible by nature, neither all economies can industrialize to fulfill their Fiscal shortages nor by cutting on expenses can take these to some balance to the necessary investments to build the required infrastructure, full employment, stop polluting by focal fuels, old vehicles,  stop woodcutting, garbage disposal, invest substantial money into green energies and technologies. To succeed Market Development the Debt stigma cannot apply, the lending, financing, shareholding, are private issues based on ‘risk’ or ‘reward’ principles that must become national and international investment principles too:

How governments will handle these highly demanding new expenses? – Foreign Direct Investment, available other capital: Public or Private, the Quantitative Easing, the SDR issues by large Central Banks and International Finance Institutions are the one to provide and control proper investment and execution, even though, this is not going to change the current economic order incomplete it will create some very unknown market conditions.

How the government will make sure not promoting at the moment Inflation? – the Market Leaps are targeted environmentally friendly project developments that target infrastructure build-up, construction employment, maintain employment, other employment: double targets as could be seen; what such project must sustain is not prompting excessive Inflation and consequential diminishing employment: the complexity of making projections should include the scenario of having large manufacturers, banks, wholesalers and retailers be included in the project as auxiliary  filling the blanks to prevent Inflation, also a project should include green farming, tourism, apprenticeships, courses in management, finances, agriculture, to prompt employment and teach the locals to manage themselves – the Prevailing Wages, Residential Requirements, SME lending parameters are necessary too. Such project will employ in the beginning many foreign managers, instructors, teachers, and specialists that will provide the needed expertise but all mid-management, labor, support must be done by the trained locals in perspective all the positions must be occupied by trained local staff. The discussed project imply some underdeveloped markets with a lack of proper education and skills, however, when a Market Leap is done in a developed market the need for outside specialists could be limited.

Most developed markets may not need Market Leaps but just acceleration of the existing green energies projects; however, employment is an issue in these markets too, so to prompt business and employment many new approaches must be used that will boost SME activities, will create opportunities for all – meaning full employment that consequently will give more Fiscal power and revive the optimism and the desire to succeed. The motion, when created, will employ the positive energy of many skilled currently underemployed or unemployed people.

In details, the developed markets have many channels to shake up business, social and infrastructural expenses are not excluded as a market tool’ the Market Agent apply to these markets as well to developing ones in their entire powers; they are the foundations for higher market security that will allow low-interest lend-ability to small and medium businesses and investors, and establish high requirements for consumer and labor protection changing the ‘quantity’ development into ‘quality’ development. Under higher quality requirements more education, professionalism, is going to be required to compete, but better rewards will follow up. The globalizing marketplace will provide plenty of opportunities for highly educated specialists.

To ensure modest Inflation the developed markets artificially boosted Market Development should be done in a complex manner by engaging more diverse measures: from manufacturing, service sector, farming, tourism to all go green – protecting the Earth environment. The substantial capital needed

such actions must come mostly through QE, but investors will get involved after the project starts. The commercial financing must be done through commercial banks on setup terms and subsidies (in the beginning) why letter the high security at the markets will make such low-interest rating market compatible. The Market development literally means developing markets: developed or developing by using Market Tools for targeted Market Leaps or accelerated economic activities under implemented Market Agents business environment. These projects differ from country to country and from a market in a country to another market could be in the same country (example: South of Chicago and North of Chicago could be considered different markets: differing in education level, access to employment, safety, property values, opportunities for business development – even though neighboring, having the same currencies, language, etc even under GDP, Unemployment, and other current indicators the difference is substantial; thus to approach these two markets requires dissimilar planning, financing, and executing: the planning for North of Chicago will improve already developing green infrastructure, by vehicles replacement with electrical, solar and wind power generation, renovation of buildings aiming  isolations, finance existing small and medium businesses to expand, using fiscal breaks to leave more money for consumption, higher social pension, Medicare, helping for high education, schools, etc that much of the project could be financed by direct and indirect investors. The strong middle-class markets require upgrading to more business opportunities, green infrastructure, electric means of transportation, zero pollution.

Whereas, the South of Chicago is needed ground-up planning for a Market Leap closer to one in the developing than in the developed worlds formerly explained.

Marketism calls economies markets so the less advanced parts of an economy could be qualified into markets with their specifics that require individual planning and actions.

The governments involvement and interfering with economic activities or the control on business vary substantially from country to country as mentioned before. Markets like China have strong State Companies competing straight with private companies whereas markets like the US does not run State Companies and the competition is among private companies, markets like the Scandinavian have very strong social protection system with public Medicare far different than the more individual US such. These examples are to show how diverse the world markets are and therefore, the Marketism should use compatible Market Tools to their specific business activities, employment, environmental protection.

Market Agents are required by the need for markets unification, for marginalizing competition disadvantages to Small and Medium Businesses and Investors, and for higher market security. In the world of so much diversity, the basic rules of Market Agents are more than enough to stabilize international business and financing to allow the proportionate usage of Market Tools to steer enough business activities, local investment, employment, alleviation of poverty, and finally, protection of the Earth environment by market means.

Up to now the tight budgetary leach on economies prevented or was suppose to do so from exacerbations in business and governments, modest recessions were supposed to cut dead branches of redundancies by painful but necessary self-adjusting. Then the 2007-9 ‘Great’ Recession hit the economy so hard that the multiple interferences by the Central Banks and the Government were necessary to prevent from total meltdown. The ‘certainty’ of the science of economics evolved into ‘uncertainty’ – so, instead, the measures (pro-cyclical) follow the trickle-down philosophy of the Capitalism, the ‘as it comes; as it goes’ counter-cyclical approach of using market tools as parameters were used. The Keynesian interference could be considered closer to the methodology used by the Central Banks means but the Quantitative Easing, for example, was far beyond it; the complexity of the interference into the economy went far unorthodox, but it saved the world economic order from destruction. The showed the level of ‘uncertainty’ prompted under the new global conditions that exceed the conceptions. After substantial amounts cash was infused by the Central Banks Inflation was predicted by the orthodox economics, however, such did not come: the exogenous forces more powerful than even huge quantities of money prevailed. How strong are these forces though? And if Inflation has evolved into chronical Deflation where is the turning point?

Thus from one side the Globalization and rising Productivity have been taking away the fundamental industrial jobs from another it has pushed prices and Inflationary pressures down. The ideas of certainty by letting these developments self-adjust cannot be considered practical. Example of sticking to the orthodox ideas was the European Union insisted by Germany: the weak results of a barely improving EU market are a good example of how such philosophy underperforms. Example for using more flexible economics is China that even though it had highly dependent on the export economy it gradually been changing by exploring QE, targeted stimulus, subsidies, on the supply as well on the demand sides; thus raising living standards and boosting consumption.

The question how to prompt the right market development by not triggering excessive Inflation in the most fundamental for an ‘as it comes; as it goes’ economics; the diversity of markets structures further complicate any setup system. Actually, there aren’t any possibilities for a ‘setup’ system – it is about using Market Tools as Parameters to boost business activities and employment while preventing excessive Inflation. In principle, as mentioned before, if Market Leaps are used these must be more complex having into account all sides of a market while balancing demand to supply. The excessive capabilities of the Transnational Corporations to expand global production, financing, outsourcing, and moving are preventive valves to short term inflation; in a longer term, the steering of market competition on micro-level could self-adjust, on Macro-level prompt actions to cool overheating market sectors must be preventively used. The game economics cannot comprehend the complexity of data from endogenous and exogenous perspective to set up a system working for the appointed diversity in market varieties, only based on parameters that slow or accelerate certain market sectors the system may localize and address effects and consequences for a market, particularly in a short term; in a long term for a market that has overgone market leaps or targeted business activities boost the micro-level market competition should let such market self-adjust business activities; the interference on macro-level should boost environmentally friendly business activities in any possible varieties and if needed to use Social expenses along with Subsidies to maintain full employment, that is considered paramount by Market Economics.

The full employment of Market Economics is not in the 2-3% level but in the single 1% . To have such high employment is the target: in less developed markets such employment consists of fewer advance jobs but yet giving the individuals the ability to maintain normal life to the local standard of living. It is obvious that the most developed markets will have more access to high education and high-tech jobs, at least of the beginning of such global market development. Industrialization is not considered by Market Economic as the way to Global Markets Development – the Market Agents consist of strict Environmental, Consumer, and Labor Laws thus not giving to the Transnationals the initiative of deregulated markets. Non-Industrial market development is the most fundamental difference between Market Economics (Marketism) and Capitalism. The artificial Market Leaps and targeted Projects which are not self-adjusting on a Macro-level are the second big difference – in this case, the Environmental Protection targeted by Market Economics overwrites the Debt controlled self-adjusting Capitalism.

Market Economics I.e. Marketism is based on free entrepreneurship as a vivid force for global development; the Market Tools use many artificial approaches such as Subsidies but on Micro-level the market competition is ruling, thus the finance institutions and governments are the ‘invisible hand’ to promoting business activities, not the overhand of making business or money. Freedom of capital flows, labor, recourses, private ownership, freedom of speech and ideas are paramount for Market Economics to succeed in the long term.

Joshua Ioji Konov 2016

The EU 3% Deficit Limit

2015 Conference – Association for Heterodox Economics : AHE .

Joshua Konov
Market Economy under Rapid Globalization and Rising Productivity

The European Union’s Deficit/Debt Rule considered fundamental for members economies harmonic development through raising Productivity and cutting the dead branches of bureaucracy and governments spending:

The Stability and Growth Pact (SGP) is an agreement, among the 28 Member states of the European Union, to facilitate and maintain the stability of the Economic and Monetary Union (EMU). Based primarily on Articles 121 and 126[1] of the Treaty on the Functioning of the European Union, it consists of fiscal monitoring of members by the European Commission and the Council of Ministers, and the issuing of a yearly recommendation for policy actions to ensure a full compliance with the SGP also in the medium-term. If a Member State breaches the SGP’s outlined maximum limit for government deficit and debt, the surveillance and request for corrective action will intensify through the declaration of an Excessive Deficit Procedure (EDP); and if these corrective actions continue to remain absent after multiple warnings, the Member State can ultimately be issued economic sanctions.[2] The pact was outlined by a resolution and two council regulations in July 1997.[3]The first regulation “on the strengthening of the surveillance of budgetary positions and the surveillance and coordination of economic policies”, known as the “preventive arm”, entered into force 1 July 1998.[4]

“In the ‘corrective arm’ of the SGP, the Excessive Deficit Procedure (EDP) ensures the correction of excessive budget deficits or excessive public debt levels. It is a step-by-step approach for reining in excessive deficits and reducing excessive debts.

The EU Treaty defines an excessive budget deficit as one greater than 3 % of GDP. Public debt is considered excessive under the Treaty if it exceeds 60 % of GDP without diminishing at an adequate rate (defined as a decrease of the excess debt by 5 % per year on average over three years).”

The two directions this Rule should ‘help’ individual members and the union overall is thus by obeying the Rule the countries are constrained from balking up unsustainable debt (in a case over 60% of its GDP) and to the Union to an overall setting common ground for such unification.

The Rule has become the economies measurement for righteousness in terms of balanced economic growth and therefore many if not all other EU economic policies have been designed and implemented in compliance with the Rule. And, for example, when Banks were receiving funds for re-balancing on very low-interest rate most of the governments were not given access to such. The principle is to steer business not government spending, to raise productivity not social programs, particularly by less developed economies of the Union that have lower productivity and weak organization. Thus, a business must be boosted in places of underdevelopment – not through governments spending but through market activities. The Transnationals are considered front-runners to spread economic activities and prompt productivity. The Trickle-down Libertarian Economics is the philosophy of the EU economics: the preferential status Transnationals and Large Investors in the EU is supported by High VAT pushed by the EU particularly to the Periphery along with Low-Profit Taxation. thus the idea also goes that these Transnationals mostly coming from the most developed EU economies will spread out economic progress. The most advanced economies apply constant pressure on the EU government to keep on such direction. (TO BE CONTINUED)

Part II

2007-9 Recession and Post Recession Observations on the EU Deficit/Debt Rule’s Effect On Macro level the Central Banks use Monetary and Fiscal Policies to adjust redundancies and shortages: over and undercapitalization, and thus to prevent building up of balloons that can burst to recessions, or at least it goes in theory. The most recent usage of Quantitative Easing to pumping money into the system, even used since 2001 by Bank of Japan was a relatively new market tool until 2008-9 when the US Federal Reserve started using it on a large scale coming up to 89 Million USD per Month.

Overall, either by issuing long term bonds or by quantitative easing the Central Banks of the US, Japan, EU or UK;s or the China have pumped money through Tier One prime Banks, Financial Institutions, or even Large Corporations into government spending, finance and business activities to sustain the decline caused by the 2007-9 Recession and consequently boost economic growth.

The Central Banks analysis when changing economic policies have used Monetary and Fiscal Policies predominantly influenced by an Economics of Neoliberalism relying on the Large Transnational Financial Institutions and Corporations to help boosting productivity and business that consequently should have brought reduction of the unemployment, underemployment, and thus prompt consumption not by empowering further the governments involvement into business but mostly on the private sector in case on the large finance and corporate organizations.

The theory that has built the most prosperous economies of the US, UK, Germany, and Japan was considered solid enough to raise any doubts in its ability to prompt enough such business and then consumption: it (the theory) is a supply-driven growth of ups-and-downs runoffs a trickle-down Capitalism. Life should have continued as usual.

“Eurostat released estimates of first quarter GDP for the Eurozone a little over a week ago (here), showing modest growth of 0.5% for the more inclusive measure of European countries. This is the 12th quarter in a row that the Eurozone has exhibited positive growth after suffering nearly two years of negative growth 2011-2013. The truth is, however, that the Eurozone has only barely recovered to its pre-recession levels. Furthermore, this growth has been driven by core economies, with countries on the periphery still years away from a full recovery.”

The economic growth of the post-recession EU could be considered anemic in it’s best. High underemployment, in some places high unemployment, rising inequality, declining middle class, rising poverty, and debt: both personal and national has appropriated the period after 2007-9 up to now (2016). And this is not even the reality, because there are other factors to a bleaker situation, indeed!

 

A combination of factors that can paint the real picture of an economy/market:

– the Real-time Air Quality Index

– Pollution Index

– the Human Development Index

– Human Poverty Index

– the real employment and underemployment figures

– the Inflation/Deflation

– the inequality ( Gini Coefficient)

– the GDP Growth Rate

must be considered such the real effect certain GDP growth has on the market: whereas the GDP growth is just one of these, and if, for example, the Gini Coefficient is high and the GDP growth must deduct it (the Gini Coefficient) or at best adjust the GDP growth effect on that market the GDP growth’s effect must be substantially reduced!

The EU Periphery runs high and higher than the most developed EU markets with the exception of the UK Gini Coefficient; Periphery that also is with a low GDP growth, high employment and underemployment, etc that could be considered results of the EU general economic policies effect: the 3% Deficit/Debt Rule is a fundamental EU policy along with the imposed high VAT, low business taxes and social expenses, raising the retirement age, removing labor protection regulations, etc.

 The conclusions drawn from the data is that Budgetary Economic as used by the EU insisted by Germany that is an exporting economy have holding effect to any possible growth. The Market Agents that could boost growth under the ongoing Globalization and rising Productivity differ from the Agents and Tools insisted by the EU: the weakening labor laws, expanding pension age, protection, lowered business taxation, and over the board privatization on discount prices, the high VAT is counter-productive under these new conditions of fierce exogenous market forces: by lowering the equities values and living standards thus farther diminishing the labor markets, consumption, and demand! The conception that by imposing tightening rules over an economy will boost foreign investment and then productivity is not performing under these new conditions, because when the marketplace loses consumption it moves foreign direct investment to expand consumption markets like China, India, or Vietnam. The ideas of Transnationals being attracted just buy lower taxes and they can boost any market to adequate employment are as archaic when the need for labor has been declining disproportionately to the value of high equity markets with rising consumption.

The Budgetary economics of the Rule keeps tight leach on the indebted less-developed economies; however, as seen it also establishes conditions for high inequality and poverty, unemployment and underemployment. The two approaches to the 3% Rule by those that obey it like Bulgaria keeping lower deficit and those breaking it constantly like Italy results seem just keeping the status quo of lower growth of underdeveloped Bulgaria and drifting toward similar but yet with a higher standard of living Italy or crashing down Greece. There could be well concluded that both approaches are not working showing fundamental structural issues in these nonfunctioning markets: the limit of monetary policies is well seen elsewhere: from the US to Japan, where the Prime Rates are underground with fairly limited results. But, the more stubborn EU 3% Rule goes further by even weaker economic results of a prolonged in and out recession into the 1% growth.

The EU Poverty well matches the Inequality; however, it differs in its Debt data sets: the Debt reduction means no Development, Poverty Reduction, and Prosperity in conflict with the Economic theory…

A Market/Economy combines equity, government expenditures, and consumption from its demand side and business activities and global exposure from its supply such (TO BE CONTINUED)

The balance of a markets must be done by using the market forces self-adjusting on Micro-level – the interference by governments and investors must be done on a Macro-level such adjusting is much more complex and needs interference because of the exogenous and endogenous forces over the real economy, forces being accelerated by the increasing flexibility though moving and outsourcing by the large transnational (TNC) corporations, the technologies that reduced labor expenses by mechanizing farming, production, and services. China that sharply developed its industrial production structures and trading abilities, the Internet that allowed access to information for the many, and not the least the access to capital and foreign direct investment for the large corporations.

The globalization seemingly changes the trend from the time of the most developed economies holding industrial production and technologies to now when large Transnationals do move and outsource wherever they considered it profitable: to places of limited environmental, labor, or consumer protection. In context, China differs from the formal statement and actually, the Chinese companies are following the same trend, but many smaller countries are ready to compromise any regulations and laws to attract big business. The TNC employ in the very single digits globally however more than 80% FDI goes to them. The tax avoidance by the TNC is another side effect that literally has them established as above governance by countries entities being able to move capital and infrastructure from country to country in their convenience. Another, major factor that boosted Transnational’s productivity has been the consulting company such as Boston Consulting Group that evaluated entities on a large scale, compared them to their competitors, and then help them lift up productivity by improving management, technologies, and sales practices. The critical powers of these consulting companies may ell be considered in the same level of the technologies, because without proper information for their competitors the difference in proficiency would be wider, than productivity lower in general.

The access to capital through Public Financing or Foreign Direct Investment, or/and Governments subsidies and initiatives have been fundamental for the Transnationals global reach. The global financial structures have covered the entire global marketplace by taking advantage of any opportunities: acquiring assets, building infrastructure, developing markets. What really happened has been a global expansion of the vivid and flexible Capitalism from the more developed markets to elsewhere. The capabilities of the Transnational in combination with the large Chinese Corporations have brought tipping off that turned around the pro supply market to a pro demand driven such. Occurrence never experienced in history that also brought some graving disadvantages to most world markets: such as inequality, debt, declining middle class, and more poverty. The conceptional inability of the trickle-down economics to deal with these new forces are to be blamed for the poor or very poor results. Some market like Chinese adapted better by manipulating economics using an ‘as it comes; as it goes’ approach of sharply imposed subsidies, tax breaks, or imposing restrictions and farther scrutinizes holding about the 6.8% growth. Another market like the US and the UK poured a huge amount of cash into the system and even though not using the Chinese flexibility succeeded moderate rebound holding 2-3% growth; third markets like the EU ones stuck to the trickle-down budgetary economics and kept in and out from recession and deepened into underdevelopment.

The entire bleak global growth, however, brought rising nationalism, xenophobia, racism, and religious radicalism that consequences in many conflicts, terrorism, and in general instability.

The thing, however, that has been the most harmful affected by this development was the Earth Environment’s Pollution that has brought Global Warming with extreme weather, floods, drought, etc that most definitely must be sustained by alleviation of Poverty through global development but not by uncontrollable industrialization. The usage of old vehicles, the fossil fuels heating, the deforestation, the uncontrolled garbage disposal are byproducts of the poverty, underdevelopment, and lack of opportunities.

 The 3% Deficit/Debt EU rule is the worst trickle-down approach in such a global environment, and it is not because the governments should spend endlessly by mostly wasting it, but because the policies through EU’s QE, high VAT, lower labor protection, or bailing banks are even worst by redistributing from the haves to the have not been when the steering of general business development through SME and Investors should be a primary target along with a relatively fair market competition that is totally ignored. (TO BE CONTINUED)

The Budget Economics is a mindset continuation of controlling borrowers by the lenders; in a way the very old tradition and thinking. Up until the pointed new development in the world, the supply-driven countries were necessary to obey rules to retain stability. The control by the lenders was the stone to an economy’s success. But, as it was mentioned above, the things have changed to a pro-demand pro-market balance market economics of paramount environmental protection. This new world calls for discontinuation of the budget-driven economics by adapting flexibilities to sustain long term Markets Development. Whereas the Rule of Law in Business is a founding Market Agent to succeeding Market Development the budgetary approach is not primary but a secondary. The everyone’s access to Employment under the conditions of moderate to low Inflation/Deflation is the primary. The Investment by individuals, institutions, or governments must be on a risk-and-reward consistency the way public investment has been. However, subsidies and fiscal initiatives to reach such full employment are must, the Earth environmental protection must overwrite any other priorities, too.

The question: how social and global order could be retained another such new market condition maybe unanswered by the imposition of the Market Agents as compulsory for participation in the global marketplace; thus, the Rule of Laws in business will replace multiple and many times avoiding countries’ business laws. High protected Environmental, Consumer, Costumer, Labor, Insurance, Bonding, Intellectual, and other laws are Market Agents, too.

The Market Tools, however, used by different markets are compulsory vary from market to market: example is if a market is more socialized than it should be the social market tools should be less applied than the private business ones: the targets, however, are exactly the same: to steer business activities and employment by a self-adjusting on micro-level marketplace.

The Globalization and rising Productivity are pivotal for achieving such targets that conceptually differs Market Economics from Capitalism or Social-capitalism’s Economics! When on the Micro-level the market forces are free roaming on a Macro-level these forces are adjusted by using parameters – not allowing over or undercapitalization excessiveness. The market’s expansion is considered a force promoting and maintaining high business activities by developed and developing countries alike. The division of labor wherein the developing markets high education, organization, and technologies will benefit straightforward from the developing markets expansion into environmentally friendly farming, tourism, construction, etc the use of subsidies and targeted market leaps will lower interest rate on all lending under the higher market security while Market Agents are implemented that in longer terms will move from subsidies to micro-level market financing. It cannot be ignored the powers markets invoke when given the opportunities, therefore acting on time to prevent quick acceleration up or downwards is going to be paramount in succeeding such longer-term Market Development; however, its believed that if a market evolves in sectors’ relative harmonic ways the upheaval even when could not be prevented will be far from the overwhelming such under the exp 2007-9 Recession when the Real Estate alone with Construction and Financing were the only market sectors in development – whereas the rest were either just hanging around or on a down-slope.

The Market Tools (explained in detail at my other articles) are parameters used flexibly to prevent or overcome access; therefore, it is considered by me that the ‘uncertainty rule’ applies to modern day markets whereas ‘parameters’ are used more-like in Quantum Mechanics’ approaches than in ‘game theory’ such. I do not believe the ‘Game Theory could not appropriately apply because of the variety of factors that built a variety of pressures on the real markets. The game theory implies to similar possibilities why the Quantum Economics’ Theory implies to ‘uncertainty’s situation that the principles are used more-like on ‘as it comes; as it goes; principles of an theory of dispersing of energies: meaning that the built up market energies might be dispersed into the rest of the market and globally when the rest of the sectors are kept ‘healthy; thus, a market must be seen from most angles to be censured in a certain position. The fundamental Market Tools are financial. lending, fiscal and some regulation that let say would shrink or expand access to some production or purchasing of i.e. products, services; the Central Banks current Monetary Policies of raising or lowering Prime Rates are considered to general equilibrium by having effect on all sectors in many cases that are not overheating or too underfunded – the Market Economics considers using Sectors i.e. Parts Equilibriums to fighting over or under heating of these Sectors! The approach currently used by the Chinese Central Bank to prevent the Real-Estate Overheating they raised the LTV requirement on the first house, and actually prohibited the second home landing simultaneously not allowing the developers to play with unit pricing – to hold on the declared prices. The idea was to cool down the supply alone with the demand until the dead branches of oversupply is extinguished. It is considered a successful approach.

The probabilities for Market Development without prompting high Inflation/Deflation is not unrealistic and somehow was done by China: by targeted subsidies and by the State-owned Companies’ raisin salaries to raise income is successful to certain extent; even though China has one of the world’s highest levels of income inequality, with the richest 1 percent of households owning a third of the country’s wealth, a report from Peking University has found. The poorest 25 percent of Chinese households own just 1 percent of the country’s total wealth, the study found, the Disposable Personal Income in China increased to 31195 CNY in 2015 from 28844 CNY in 2014. Disposable Personal Income in China averaged 8046.18 CNY from 1978 until 2015, reaching an all-time high of 31195 CNY in 2015 and a record low of 343.40 CNY in 1978. Disposable Personal Income in China is reported by the National Bureau of Statistics of China. That in all accounts must be considered successful, yet.

Market Economics will work at best an open democratic market: the freedom of ideas and the avoidance of any oppression make individuals advanced and more initiative risk-taking, advantageous and forwarding who put under the right conditions would advance far beyond the alternative thinking.

PHILOSOPHY OF MARKETS

INTRODUCTION

What really must be put-up before starting this essay is that Economics is not self-centered but on creating business, employment, assets principle that greatly differs from any Economics used by current reliance on trickle-down of capital, some combination of private market related economics and social governmental distribution, or the governmental involvement and control on business and distribution. Current kinds of Economics are politically and ideologically motivated, directed, and most definitely self-centered around ideas, convictions, status quo. What really defines current Economics is the rule of what is expected based on ideologies than the objectivity to reach results; thus the dysfunctionality, slow growth is considered either consequence of not imposing enough such Economics principles by the book status-quo convictions or some kind of temporary distortion. Such Economics relies on the investment trickled-down, improving productivity, the lowering labor, and consumer protection and taxes to attract large corporation, investors to boost economic growth; in context some countries, economies have higher government involvement in wealth distribution, business, control than others; however, the principle of ‘hands off’ is widely accepted as the only working. Only, China uses much more flexible Economics that have achieved consistent development taking hundreds of millions out of poverty, building incredible infrastructure; China‘s approach more chaotic and partial having in mind the usage of Orthodox Economics as a primary approach and the ‘as it comes; as it goes’ Economics as a secondary, even though very proactive approach when compared to the Market Economics* that uses Orthodox Economics with major amendments as a Micro-market-level approach and artificial hand-on Economics on Macro-market-level. It could be also stated that the Quantitative Easing and Stimulus Packages used by the US, UK, Japan, and later EU are Market Economics’ Tools but there they were even further partial – more like adjusting to prevent the full collapse from the 2007-9 Recession and the slow following economic revival.

ABSTRACT

The Market Economics* promoted by this research is an ‘as it comes; as it goes’economics adaptable to the most recent exogenous and endogenous forces coming from the globalized marketplace and the improving technologies, productivity – it is non-ideological, conviction-like, or status quo. Even though it values democracy, personal freedoms, individual rights it is apolitical by nature relying on flexibly used Market Tools to steer business activities, full employment, market development by capitalizing on environmentally friendly technologies, farming, tourism, development in a high Market Security business competition marketplace.

EXPOSITION

The Market Agents required (considered unifying) implements: 

Strict Rule of Law in Business, 

Unlimited Corporate Liability for the Management

Enhanced Protection Laws in;

Insurance, 

Bonding, 

Earth Environment, 

Consumer, 

Labor  

that provide the high-security market conditions for flexible usage of the Market Tools as Parameters in an uncertain market motion to offset harmful fluctuations ups-and-downs that can bring high inflation/deflation variances. To accelerate and carry-on Market Development with robust business activity, full employment, alleviate poverty, save the Earth environment are flexibly used Market Tools: 

Quantitative Easing, 

SDR, 

Subsidies, 

Low Rate Lending, 

Social Expenses 

Infrastructural Expenses 

Market Leaps

Targeted Projects, Markets, Regions

Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions 

Pinned to Inflation/Deflation (not to Budgets) are to either accelerated or decelerate consumption in keeping the Inflation/Deflation in strict limits. The Game Theories cannot be explored to set up such limits because the complexity of economic data, the globalization forces, the unevenness in development and therefore the Parameters must be applied on a Quantum Factor principles with extreme flexibility. The Nash Equilibrium can be used on individual Parts/Sectors Level but again not as Game Theories but more like a balance between Demand to Supply (the Supply goes second not accidental). 

The theory of Supply driven Economies evolves into Demand, Balance driven Markets;

from General Equilibrium – Economics into Parts/Sectors Equilibriums – Market Economics; 

from Nationally defined Economies into Level of Development defined Global Markets; 

from Budgetary constrained Economies into Inflation/Deflation constrained Markets;

from Shady Business Environment of the Capitalism into Strict Rule of Law such as the Marketism;

from hands-off Trickle-down Economics to active ‘as it comes; as it goes’ Market Economics;

from Macro and Micro Levels General Equilibrium economic intervention by the Central Banks through manipulating the Discount Rates to an only Macro-level Parts Equilibriums all around intervention while on Micro-level the market competition is self-adjusting (market driven);

       Joshua’s Three Laws in Market Economics:

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

Painted and the Painter Employed”

“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”

“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”.

These Three Laws basically explain and direct the ways Market Economic works: this isn’t about Budgets and a tight leash has been used by the status-quo current practice but it is about more motion steered by the necessities, demand for development so, the Market Economy to respond to these necessities through using the Market Tools in a High Market Security Environment that would allow lower interest lending. The need for Earth’s Environment Protection overwrites Budgetary Restraints setting up new principles of handling Economics. 

What does Market Economics mean in practice?

To steer enough business activities, employment, equity built up and to use other than Industrial production methods to protect Earth from pollution thus alleviate Poverty Market Economics is using an ‘as it comes; as it goes’ Economics in which even though the Market Agents are mandatory, unifying the Market Tools are used flexibly, differently, specifically from market to market compatible with individual markets historical specifications. The Market Tools are used as Parameters for like in Quantum Mechanics than in Game Theories because of the high Uncertainty in the Global-marketplace where the Data is very complex and insufficient. On a Micro-market-level the Market Economics relies on the free market competition to self-adjust disbalances whereas on Macro-market-level artificial adjustment, interference is used to prompt and carry-on robust business activities, full employment (down to 1%), accelerated Global Market Development that requires the governments and central banks of the most developed economies along with the international finance institutions (WTO, IMF, others) very active policies that through Commercial Banks access to Markets to setup Matrix to succeed such vigorous activities without limiting individual freedoms, liberties. 

CONCLUSIONS

To exploit current possibilities of Globalized marketplace, Improving technologies, robotization, the Internet, the highly concentrated capital the Market Economics uses the Market Tools indiscriminately meaning with no concern or direction to political ideas, motivation: it is all about practical methodology system of Demand to Supply balance under the conditions of accelerated business activities. The Inflation/Deflation is the tagged data indicator: the Market Economics accepts both very low (in the quarter of percent) Inflation or Deflation as normal variances and fight vigorously bigger fluctuations; because generally in Market Economics the Interest Rates are low the higher Inflation/Deflation may have negative effect on consistent Market Development, and because of the same reason a modest Deflation may establish boosting effect on competition and improve living standards. The current idea that lower Inflation or even Deflation may have a very negative effect on the Economy is based on low economic security and relatively high lending rates, particularly to small and medium businesses and investors, evolves into a Market Economics in which lower rates, Inflation,

Deflation is compatible with the entire market structure. The entirety of projected Market Development relies on boosted huge business activities on a global scale that will bring limitless opportunities for investment and companies expansion but it will be on a larger scale than currently experienced. However, in perspective, the change from quantity driven global-market-expansion may come into a quality such, but then the market motion will move to new technologies, improvements, higher productivity leaps that may allow certain companies higher profit margins.

The large market’s expansion brought by the Market Economics will boost business activities and individual income using natural for the market micro-market competition why the macro-market-level will keep it up and running and preventing for catastrophic exacerbations, redundancies, The Research and Development, Education, overall Living Standards will expand proportionately establishing prosperity: the ability to apprehend the exogenous and endogenous market forces coming from the ongoing Globalization and rising Productivity will be the main accomplishment. It could be considered utopic such projections but hypothetically said if the market forces of the 21st Century Globalization and Productivity, the Internet, the China’s mighty industrialization, the Transnationals spreading globally in many business sectors of farming, retail, banking, manufacturing, technologies are supported along with rising market development and market related demand the possibilities for expansion of such forces are not just probability but a reality.

REFERENCES 

Konov, Joshua Ioji, Market Economy Under Rapid Globalization and Rising Productivity (October 4, 2012). Available at SSRN: https://ssrn.com/abstract=2789388

Konov, Joshua Ioji, Piercing the Veil’s Effect on Corporate Human Rights Violations & International Corporate Crime (Human Trafficking, Slavery, Etc) (January 5, 2012). Available at SSRN: https://ssrn.com/abstract=2947755

Konov, Joshua Ioji / JK,. “Piercing the Veil’s Effect on Corporate Human Rights Violations & International Corporate Crime (Human Trafficking, Slavery, etc),” MPRA Paper 35714, University Library of Munich, Germany, 2011.

Enhancing Markets Transmissionability to Optimize Monetary Policies: Pro-Demand Indefinitely – the Result of the Ongoing Globalisation and Rising Productivity Paperback – January 12, 2017

by Joshua Ioji Konov (A1)

BLOG Philosophy of Market Economics https://joshuakonov.wordpress.com/

Joshua Ioji Konov 2017

Market Economics Tagged to Inflation/Deflation, not to Debt/Budget

To take Inflation/Deflation as a Data Indicator to adjust Market Development by using Market Tools one way or another in meaning either accelerating it through Market Leaps and Targeted Investment or slowing it through Sectoral Monetary & Fiscal Policies, Lending Restriction and Temporary Regulation instead of the currently used Debt related Budgetary Economics may look improbable, incomprehensive, revolutionary but actually there are in nowadays Economics presaging practices such as

Equities Exchanges (Stocks, Securities, others)*

Quantitative Easing*

Accrual Accounting*

That are not Budgetary/Debt related*.

However, currently, Governments, Central Banks, International Finance Institutions use the Orthodox Budgetary (debt related) Economics Policies, Accounting that have performed quite well in the Supply. General Equilibrium driven economies of the 20th Century but have become counterproductive, obsolete in the Demand, Market Parts Equilibrium required 21st Century of ongoing Globalization^ and rising Productivity^, of the Internet^, China’s Industrialization^, and the overall super-production by the Transnational Corporations in manufacturing, farming, finances, retailing, wholesale, services^. The last 20-25 years have shown increasing accumulation of private, cities, and national Debt, Rising Inequality, Poverty, Unemployment, Underemployment, and deteriorating Middle Class that with the exception of China who used an ‘as it comes; as it goes’ Economics, has enveloped the Globe, indeed. The inability of the Capitalistic trickle-down, orthodox, status quo Economics to deal with the 21st Century developments, issues^ has become more than obvious where the Debt could be considered the best indicator of such incoherence, incomprehension.

To deal with the exogenous and endogenous global market forces coming from the 21st Century Developments^ is necessary a new approach, approaches to apprehend their powers instead of resisting them, thus Market Economics is a Philosophical however Practical system that preserves democratic, individual freedoms, liberties to exploit, use this new Development ^ for Global Market Development.

The main, fundamental factor that makes Market Economics not maybe but must be is the Global Warming and the necessary measures to sustain it or even reverse it: clean Pollution, alleviate Poverty by using Environmentally Friendly Technologies^^ in Farming^^, Manufacturing^^, Transportation^^, Tourism^^. The usage of such technologies^^ as main Economic Tools to implement Market Leaps, Targeted Projects is in the foundation of Market

Economics.

Market Economics usage of Inflation /Deflation Data Indicator tagged to Market Development does not differ from the appointed current presaging practices* but rather it extends such practices to the Governments, Central Banks, International Finance Institutions’ Economic Policies, Accounting. The Debt Budgetary Economics is overwritten by first: the need for Environmental Protection^^ and second: by the practical reason to boost business, employment, development. As mentioned above the exogenous and endogenous forces^ have become unsustainable by using the Orthodox Budgetary Economics whereas the Market Economics capitalize on these forces to boost and maintain Market Development; what these forces do the most is preventing markets from Inflation by being capable of flooding the marketplace with products, services a basic 21st Century development. Thus, to apprehend these forces^ the existing budgeted capital and the system of distribution must evolve by first: having the Market Agents: Strict Rule of Law in Business, Unlimited Corporate Liability for the Management, Enhanced Protection Laws in Insurance, Bonding, Earth Environment, Consumer, Labor implemented that will enhance Market Security** and second: using ‘as it comes; as it goes’ approach Market Tools: Quantitative Easing, SDR, Subsidies, Low Rate Lending, Social Expenses Infrastructural Expenses Market Leaps, Targeted Projects, Markets, Regions Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions indiscriminately as inquired by the current market possibilities; the Debt, Investment, Financing evolves into ‘risk-and-reward’ approach well protected by the high Market Security** but not enforced on national or international approach currently used; the Quantitative Easing, SDR is not distributed by trickling down approach but by Targeted Investment: Market Leaps, Targeted Projects; whereas the National, International Accounting evolves from the current Cash based into Accrual-like based including Social (incl. Educational, Social Security, Medicare, Social Programs, etc.) ‘expenses’ as ‘equities’ and Infrastructural ‘expenses’ as Assets when the Market succeeds Balanced the negative Debt could be either accumulated just on ‘Books’ or written off against ‘equity’, ‘assets’ that approach will clear the Accounting from some Debt that goes against the QE, SDR; however, private Debt must be indicated as Invested and must be returned as ‘Return on Investment’ the ways current Equities, Securities Market Exchanges work. The Central Banks, International Finance Institutions using QE, SDR have to write off the debt against achieved, succeeded, accomplished by the Market Leaps, Targeted Projects: Equities, Assets. The Private Investment is Preferred first when the Market Leaps, Projects are Targeted and second, it will be retained as Liability on the Books. The Principle of Market Economics is that on a Micro-market Level the markets should self-adjust based on market competition with minimum or not any outside interference while on Macro-market Level the Governments, Central Banks, International Finance Institutions must use Commercial Banks on setup Matrix to execute Market Leaps, Targeted Projects and use the Market Tools indiscriminately as Parameters to boost or slow down business activity tagged to Inflation/Deflation Data Indicator.

The 21

st Century global marketplace indicators are very complex therefore the principle of Uncertainty is accepted that cannot be apprehended by the Game Theories but the Quantum Market Principle of Parameters is used, though the Nash Equilibrium overall applies on the Parts/Sectors Market Equilibriums (in comparison to the current General Equilibrium practice).

The theory of Modern Economics goes that moderate 2% gives the best economic environment so business has the leverage to turn a profit; therefore, the Central Banks use mitigating with the Discount Rates (Tier 1) and other Monetary and Fiscal Policies to keep it at this level. Such theory is based on assumption of relatively high return on investment and short term rebuilt after downturns that both do not apply with the 21st Century developments: the very deep 2007-9 Recession, the slow post-recession growth, the strong deflationary forces bringing stagnations even when Trillions of Dollars are poured into the most developed economies; thus, the Central Banks keep rates very low even negative and the Banks are constantly in trouble even being given free loads of very low-interest Tire 1 loans.

The Market Economics accept Inflation and Deflation in possibly shortest spam whereas all Market Tools along with boosting business and employment are tagged to Inflation/Deflation variances. The –1….-0.5…..0…..+0.5….+1 are variances considered acceptable; -0.5…0….+0.5 are triggering points. The large quantity of business activities, consumption must compensate the businesses for their effort and Deflation is to adjust prices on a Micro-market Level as a preventive valve of self-adjusting market powers. On a Macro-market Level the Central Banks, Governments, International Finance Institutions must fight larger span variances indiscriminately and it must be done on a Parts/Sectors Market Equilibrium!

More detailed research on the Parts/Sectors Market Equilibriums) to follow up!

Joshua Ioji Konov 2017

Uncertainty, Probability, Parameters, Market Economics Using Quantum Approaches

The complexity of modern day economics invokes the uncertainty principle because it becomes profoundly clear that using mathematics or the game theory may hardly take in consideration multiple variances, changing data, probabilities. The probabilities of multiple ever-changing economic realities could be only adjusted by using parameters, as it is done in quantum mechanics, to adjust or at least prevent extreme variances by applying pressures on certain relevant points.

Until to date, the tight budgetary leach has been used to prevent from excesses, redundancies or at least such approach was supposed to work. In the pro supply economy if the tight leach budgetary releases certain expansion to prevent inflation it might be considered the only comprehensive way possible for its time. Then with the new global economy complexities arriving with the development of high technologies, productivity, globalization the game theories have flourished becoming relevant in such progressively perplexing realities. In Market Economics such perplexity goes beyond the possibility for even game theories to apprehend thus changing realities, possibilities, pressures. In practice the aggregating inequality, personal and national debt, declining middle class, and with the exception of China: expanding poverty, insecurity – pressures of exogenous forces of super productivity achieved by the Transnational Corporations in farming, manufacturing, banking, services through better management, technologies, moving, outsourcing the China’s Industrialization, the Internet that have tipped off the ‘old’ supply driven economies into demand, balance driven such. The 2007-9 Recession put the final nail in the coffin of the supply economics by accelerating the processes globally toward recalibration of assets, redundancies, the inadequate consumption, demand in a highly vigorous supply possibilities marketplace.

21st Century‘ inability of the orthodox economics to apprehend the globalized, high productivity possibilities could be put in the following grading from China that uses a best ‘as it comes; as it goes’ economics showing best results running for the last 2017 quarter 6.9 GDP growth down to the European Union’s under 1.5%. However, the results elsewhere are limited by the budgetary/debt driven orthodox supply driven economics that limits economic possibilities for vivid development. The low security of the trickle-down Capitalism, Socio Capitalism used at the moment comes from the main targets of easing business by overwriting labor, consumer, social protections to provide tempting for the investors, companies conditions to invest, do business, have better return on investment; the entire system, philosophy relies on such shady-business approaches that seeming had worked well for the developed economies like the US, Japan, Germany to succeed their high living standards, middle class, relative prosperity in the 20th Century. But this kind of prosperity is all but gone, the globalization, technologies, the non existing labor markets have taken over shrinking employment, small business and only allowing the really big business and investors to prosper – inequality, debt, unemployment, lost generations, reduction of social services, pensions, crumbling infrastructure that’s how the Orthodox Economics performs in the 21st Century, and therefore the new, Market Economics is needed to capitalize on the achievements from the 20th Century along with the new market developments in the 21st Century. Thus what was good for the 20th Century is quickly becoming an abomination in the 21st Century that needs enhancements, changes to apprehend the new market forces.

However, the question remains: how to avoid redundancies, inflation, economic upheaval if the leach of firm budgetary economics is not there?

If the Game Theories cannot solve the dilemma because of the high Uncertainty in modern day markets that only the Quantum Computing and the principles used in Quantum Mechanics to find the best adjustments in a particular situation will: both new sciences are brand new staff, never experienced; thus the principle used in modern science of adding up on past experience may not apply under these new circumstances! Lets say the Nash Equilibrium could be applied on individual Market Sectors development but not as a Game Theory, instead the multi Quantum Balance/Equilibrium may be reached by using the relations between Market Tools (Quantitative Easing, SDR, Subsidies, Low Rate Lending, Social Expenses Infrastructural Expenses Market Leaps, Targeted Projects, Markets, Regions Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions) + Market Development + Inflation / Deflation + Market Competition (Equity, Assets, ROI) + Market Forces – a function between many relative Data to be mixed in a pad of relativity to the overall possibilities; the Market Tools are used as Parameters that either accelerate or slow down Market Development (entropy to equity or their ways around).

Uncertainty Principle and Sectoral Nash Equilibriums may apply for balancing factors to succeed equilibriums, the Market Tools are practically used as PARAMETERS to get accelerations, slowdowns, carry-ons in limits not boosting Inflation / Deflation and thus undercutting Market Development.

The Probability goes through the Invested / Subsidized Capital to the Market Tools that are flexibly applied in sinhron with the a market’s specifics, to J Constant that combines the statuary Market Agents and must be reached %% Macro-level Factors relating the succeeded adaptability under the circumstances to the subtracted Inflation / Deflation effect that must be kept in limits (-0.5 to +5) when both direction Inflation or Deflation are taken in number/fraction the – or + irrelevant;

___________________________________________________________________________________

ε,ε1x→ε,ε1p = Θ x [ℑζ – ∑(ℑζ x ΙΔ)]

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μ1 = [μ + (ε,ε1x→ε,ε1p)] = Θ x ∑[ℑζ[A(y1→y7)|P (1) +B(x1, x2, x3, x4, x5, x6, x7, x8, xn)|P (1→n) x ΙΔ |P(-05⇔0.5)]

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(μ1) – it is seasoned Market Development after the gained Entropy, Equity;

ε,ε1– Equity, Entropy (x → p) added by the Θ amount invested through – Market Leap, Targeted Project, Carry-on Capital Infusion) multiplied by the ℑζ – J Constant then subtracted by the multiplied ΙΔ – Inflation or Deflation. (see: Example)

ℑζ – J Constant is the sum of 2 probabilities; the Market Agents and the Market Tools.

A Market Agents implementation A(y1→y7) considered probability to 1

B Market Tools probability p(1→n] utilize the B

(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools’ probability effect on the Real Market that is most complicated probability that needs Quantum Approach possible by using Quantum Computers – Market Tools are used as probabilities in conditions of implemented Market Agents meaning in high Market Security business environment that allows lower interest lending and high transmissionability of the invested capital.

ΙΔ – Inflation or Deflation – acceptable variance p(-05⇔0.5)

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Example:

14 = (Θ)10 X c[(ℑζ)2 [(μα)1(Ω)(μτ)(1] X (Ι/Δ)–0,3/0.3 = 0.6] 2 – 0.6 = 1.4 x 10 = 14

14 = 10 x ∑ [2 x 0.3] = 0.6 ∑ (2 – 0.6) = 1.4 x 10 = 14

ε,ε1(Equity, Entropy) gain 14 thus M^ = 114-10 Liabilities;

if the invested capital comes from QE, SDR it must be subsidized to lift the EE will reach 121 whereas ‘seasoned’ EE may bring it down (seasoned E,E – Equity, Entropy = M^ – Market Development

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The Quantum Probabilities are:

Market Agents [A(y1→y7) ]complete implementation that will keep in (0….1) variance;

Market Tools [B(x1, x2, x3, x4, x5, x6, x7, x8, xn) ] that will add to the J Constant to accelerate, multiply the Market leaps, Targeted Projects, Carry-ons;

The J Constant ℑζ up to n%;

Targeted Low Inflation / Deflation Ι/Δ[(–0.5….0….0.5)] that will not undercut Market Development – these factors are specific for individual markets, too;

Market Leaps / Targeted Projects / Carry-ons Θ that will be enough in value (at least 10% of the current M’s GDP) to ensure full employment and consistent Market Development;

These variances are targeted by the Market Tools indiscriminately; but also these are in relations to each other that must be taken in consideration and therefore only Quantum Computing can take so diverse variances into possibilities. Fundamental is the retaining of Inflation / Deflation where the Market Actions are tagged to it. The Partial / Sectoral Market Equilibriums are reached to make up the General Equilibrium; so, the Uncertainty and numbers of Possibilities are becoming even higher.

Μ– Market Development requires seasoned E,E – Equity, Entropy

Θ– Market Leap, Targeted Project, continuous Market Development

A(y1→y7) Market Agents:

Strict Rule of Law in Business,

Unlimited Corporate Liability for the Management

Enhanced Protection Laws in;

Insurance,

Bonding,

Earth Environment,

Consumer,

Labor

B(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools to accelerated Entropy/Equity

Quantitative Easing, SDRs;

Subsidies;

Low Rate Lending;

Social Expenses (incl Educational, Pensions, Medicare, Social Security, Unemployment Benefits, etc.);

Infrastructural Expenses;

Markets, Regions Parts Equilibrium Monetary Policies;

Fiscal Policies;

Sectoral Regulatory interference by Central Banks, International Finance Institutions).

n. Others

ℑζ – J Constant (0……n) where MS (Market Security) with implemented A (Market Agents) brings ℑζ to (1) in relation whereas the (1 – n) relate the adapted, adjusted Market Tools toward the Macro-level Market thus the efficiency fraction.

Ι/Δ – Inflation/Deflation

The Principle of self-adjusting Micro-level Markets and artificially adjusted using Market Tools as Parameters on Macro-level Markets on Parts / Sectors Equilibriums’ approach.

The most perplexing, hard to adjust, Probability in the above relativities is the B

(x1, x2, x3, x4, x5, x6, x7, x8, xn) Market Tools: Parameters’ mitigating effect on individual Parts/Sectors acceleration or slow down but also the relation among these parameters themselves; so, when a parameter is added or subtracted to certain value it affects the overall Market Development on a Sectoral and General Equilibrium as well other parameters in the occasion; when having in consideration the UNCERTAINTY PRINCIPLE and the MULTIPLE POSSIBILITIES and apprehensive overview requires QUANTUM COMPUTING capability to do such multi-functional, multi-operational, multi-informational estimation.

The ℑζ– J Constant (0…1…n) is consequential to the implementation in complete of the Market Agents that would give (0…1) ; the (1 to n) is a effect coming up from the proficiency of B(x1, x2, x3, x4, x5, x6, x7, x8, xn) in the execution of a Market Leap or Targeted Project that reflect the specificity of Individual Markets: (example: let’s take a market that is socialized so the more private business inclination will have a better effect on the ℑζ performance, or the way around: if the market is too privatized that reflects lack of employment: then the adding some social distribution would be more effective). The targets are high business activities to keep full employment using indiscriminately the Market Tools in an ‘as it comes; as it goes’ approach. Even there are countless variations in putting pressure on different Data Indicators: the positive, accelerating business are some that can be considered boosting business activities, employment to the required levels, thus the probabilities are limited and the % of impact vary but is yet limited in varieties: from these possible varieties are extracted the most vigorous for a particular market under its circumstances, development.

Joshua Ioji Konov 2017

Market Tools B(x1, x2, x3, x4, x5, x6, x7, x8, xn)|P (1→n) Boosting Market Development While Keeping Inflation / Deflation in Limits ΙΔ|P(-05⇔0.5)

ε,ε1x→ε,ε1p = Θ x [ℑζ – ∑(ℑζ x ΙΔ)]

The Market Tools B(x1, x2, x3, x4, x5, x6, x7, x8, xn) as parameters set up by flexible usage through Market Leaps, Targeted Projects, Carry on Market Policies uses Environmentally friendly technologies, techniques in farming, manufacturing, energies, heating and cooling, garbage disposal, services, transportation to boost Market Development: business and employment, infrastructure and acceptable living standards I.e. alleviation of poverty, elimination of any Earth pollution under sustained Inflation / Deflation ΙΔ|P(-05⇔0.5)

B(x1, x2, x3, x4, x5, x6, x7, x8, xn) – Market Tools to accelerated Entropy/Equity

Quantitative Easing, SDRs;

Subsidies;

Low Rate Lending;

Social Expenses (incl Educational, Pensions, Medicare, Social Security, Unemployment Benefits, etc.);

Infrastructural Expenses;

Markets, Regions Parts Equilibrium Monetary Policies;

Fiscal Policies;

Sectoral Regulatory interference by Central Banks, International Finance Institutions.

n. Others

The general unpredictability / uncertainty of very complex market forces inadequacy aggravated by the globalization, rising productivity, improving technologies, transnational corporations global expansion in farming, manufacturing, retail, wholesale, technologies, financing, the Chinese industrialization, and the Internet have brought exogenous for most market forces to improbable complexity that could not be offset by the status quo ideological economics of the Capitalism nor by the Game Theories, nor by the governments taking bigger role in the such orthodox economics’ practices. The self-adjusting Economics cannot prevent crushing recessions like the 2007-9 one, nor accelerate the post-recession rebuilding; under the heavy pressure of possible economic collapse the central banks and governments in the most developed economies have taken highly revolutionary policies such as Quantitative Easing, Subsidies, Banks and other bailouts, expanding foreclosures and unemployment benefits periods that supposedly would have brought Inflation but instead imploded stagnation; the even chaotic such actions helped the economies to regain some vitality, growth. However, the ideological economics that brought the 2007-9 Recession on the first place regain their strength not being able even to explain what really happened. The only marketplace that somehow and to a certain extent continued its growth was China that used the tools of economics very flexible on an ‘as it comes; as it goes’ policies principles. The Market Economics go beyond such economic policies into creating a system where the Market Tools are used as Parameters to from one side prompt Market Development of alleviation of Poverty through Environmentally friendly methods, and by having market forces on Micro-market level self-adjusting through market competition, whereas on

Macro-market level artificially using Market Tools to keep very low Inflation / Deflation.

The flexible usage of Market Tools have different effect on individual markets: let say hypothetically that an exaggerated I.e. incomputable amount o money is invested in a market such can bring high inflation and may even crush it; or let say that not enough of capital is invested in markets that such may bring huge deflation and impoverish even higher percentage of its population bringing further Earth pollution, with high unemployment, a not functional market. In this research is strictly stated that individual markets have their specifics, therefore, any Market Leap, Targeted Project, or Carry on Investment must be done in apprehension of such differences; however, with the required implementation of the Market Agents as stated by previous working papers of these research a existent minimum of a high security market environment would be in place. Despite if such existent minimum the differences, specifications must be taken in consideration in any artificial move on any market. Thus to relativity between individual Market Tools to Inflation / Deflation, and to full Employment, Business activity, Infrastructure (Equity) building is highly improbable to be achieved by the probabilities possible by the existing technologies but through Quantum Computing allowing unreachable in the past compatibility and variations. Thus this Market Economics was called Quantum too, because of its very high uncertainty and demanding complex relativity between a number of factors, possibilities.

The majority of Market Tools could be applied, enforced more to either supply or the demand sides of the occasion – thus to seek balance, first such must be sought on parts, sectoral market basis equilibrium instead of general such as some sectors overheat needing tightening up while others are in the opposite side of the occasion either needing additional boost or at least still in their ways up; second, the one way approach let say the demand side only can prompt quick inflation – instead careful configuration a particular market specifics is needed: let say a market is socialized like the Norwegian one than the pro-private business policies are to balance the market imbalance of a one way development, the opposite distinctions require the other way around thus too rigid privatization while the demand is relatively weak and stagnation sweeps through the Social expenses must be used to offset such extreme situation. It is all about balances under very low Inflation /Deflation – the second particularly distinguishing such economics from the Capitalistic one and the probabilities of high market security market development allow such difference to be possible where the lending rates to small businesses and investors could be very low without compromising with the risk factor requirements. The Market Tools also will have multidimensional effect being invoked by the need for Earth preservation that is not purely market factors but a dominant such that requires actions not necessary in synchrony with the debt controlled current budgetary economics, and therefore, as such artificial factor modulate the global marketplace the Market Tools must be used artificially on Macro-market Level to accelerate, promote, carry-on high business activities, full employment, market balance; thus the quantum uncertainty and multidimentuallity can provide such balances and allow the markets to develop without prompting harmful recessions. The relativity that accumulate by the Market Tools and affects the real economy has been well researched by the current economics though in combinations of multiplicity and intermarkets (globally) such could not be done first, because the mathematical approaches are limited in such uncertainty and second, because the further developed game theories could not accept multiple factors either even though the Nash Equilibrium and other probability theories were in use. The Quantum Economics i.e. Market Economics goes far beyond single or couple probabilities into ‘n+’ probabilities and the effects on multiple factors on the global marketplace.

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Example 1: you have 10b QE subsidized into public transportation, infrastructure, Social Expenses, Fiscal Breaks for 10 years, prevailing wages, residence requirements, limited lending to small businesses up to middle size – however, the equipment, materials, energy is produced by large transnational corporations that make it global.

The Market Agents are implemented in the Market!

For the local market 10b is 10% of the market – the demand side are salaries, business income, social expenses, fiscal breaks, etc – the supply side are the expenses, small business production, services, etc; however, the effect from the global exchange of manufactured equipment, materials, goods, are to retain very low Inflation.

The Market Development is 1. Entropy – Sales, expenses, business activity, employment and 2. Equity – infrastructure, market competition, poverty alleviation, clean environment;

To accelerate Entropy / Equity build up the higher Market Security with the implementation of the Market Agents will be established, however, the flexible ‘as it comes; as it goes’ usage of Market Tools under very low inflation even Deflation will be achieved only by appropriately weighing on the different Market Tools in accordance with the specifics of an individual market.

The in this example Investment is to change the old vehicles, improve public transportation, provide the needed employment by steering the needed business but also by apprenticeships and expanded public education. The funds are to be disposed by the commercial banks on setup matrix. To alleviate poverty also the social expenses are lifted targeting food, heating, transportation, job opportunities through prevailing wages and residency requirements. The 5 years Fiscal Breaks on taxation are to have the capital circulate in the Market. In case it is a Targeted Project in a process. There are two requirements for the implementation: 1. Proper preparation 2. Fast execution.

What complicates this Targeted Project is the necessity for multiple such Projects that must be executed simultaneously on the markets in proximity for 1. To sustain huge movement of people toward Targeted Project 2. To settle employment spread to all areas, 3. To avoid pollution coming with a concentration of people in less developed as infrastructure markets. The Market Economics does not prompt urbanization, industrialization, a concentration of people but the alleviation of poverty by using environmentally friendly methods in place: meaning in some market it could mean manufacturing and services in another farming and services, in third tourism and services to dominate market industries.

Again, all Marketed Leaps or Targeted Projects are tagged to Inflation / Deflation and therefore to the maximum a Demand-to-Supply internally must be paramount even though the globalized marketplace could sustain serious inflationary pressures by themselves.

The complexity of multiple projects, invested capital, other market tools and

the requirement to sustain low –0.5 to 0.5 Inflation / Deflation must be overcome by taking in consideration the pro-supply projected business, the existing supply local and global capabilities, the rise of demand under these projects that in a pot must avoid ‘big waves’ that can crash the market. In practice China is using a very similar project approach but on a smaller scale and therefore the results succeeded even impressive compared to the rest of the developed world are very limited in comparison to the probable Market Development under a very aggressive and widespread Market Economics: and what really presses the need for such is the necessities for poverty alleviation and Earth preservation not providing long term allowance. The Chinese experience even extremely valuable in practice, and serving as an example does not provide the needed on the large scale functionality.

In the Example 1: If 10% or 10b USD is invested through Market Tools to steer enough business activities, employment, consumption, building of equity just the implementation of the Market Agents (A) should provide Probability (1) effect on the invested capital so no losses are projected but the Inflation’s deduction, therefore, the Inflation / Deflation should be kept close to (0); the Market Tools effect should add additional acceleration, transmission-ability to the Investment thus adding to ROI, Entropy, Equity in which continuous after the operation business activity, employment, consumption must be achieved; thus, it isn’t about quick in-and-out profit driven operations but a long term Market Development where Equity / Entropy are seasoned: the Detroit’s effect where capital goes through brings profit and when the industrial production technically moved out or was robotized a devastated marketplace was left over; such, effect cannot be environmentally accepted – therefore, it is the service sector along with small business and investors, and the Social and Infrastructural Expenses that are suppose to keep the Market Development running on, the market competition, employment, consumption in check., and the Earth environment clean.

To use environmentally friendly technologies in transportation a very inexpensive public transportation, electric and hydro vehicles, and railroad, water channels, airfreight system must offset pollution; to use such in energy generation – the green energies must become the only source, same with farming, manufacturing, tourism, etc; to offset deforestation the heating and cooling must become elsewhere driven by green energies. The biggest difference between this new Market Economics and the Capitalism is the involvement of the developed economies to swiftly export Market Development all over the global marketplace, to extinguish any pollution, to establish stability by having people engaged in productive activities, having access to jobs and opportunities. Someone will call this research utopian, but actually, it is the only possible way to avoid Earth destruction by using peaceful means, and by saving personal liberties, freedoms and by not letting the government take over the business, life, personal freedom.

The implementation of the Market Agents expands personal management liability, strict environmental protection, consumer and labor such that must stop large transnationals, all businesses from hurting the environment or inflicting human rights violations. But all of this is possible with the expansion of possibilities for productive business activities, market development, prosperity on a global scale.

Joshua Ioji Konov 2017

The Perception and Psychology of Economics

The US Feds are well accounting when putting out decisions and explanations of their policies; it is clear that perception proceeds real actions: let say that the mentioning of possible real actions definitely affects markets. Investors always act in advance of probable actions trying to predict these actions and get ahead of the curve. The rightly explained economic policies are taken by the investors weighted by them on the effect such would have on the overall economy. It is considered that investors actions reflect the estimated effect on the business activities and the return on the invested capital.

Clearly, and what the Investors value the most are the relative market stability of the political and demand such! When the developed markets can be considered politically stable the demand such becomes the main value taken in consideration; thus, if business activities and employment are slow to boost such demand the market stability is down therefor the investors are to look elsewhere to invest for ROE. Under the conditions of a supply driven market the demand was always bigger than the supply, then the investment was more politically motivated than market such. The conclusions of a tipping off from supply to a demand-driven markets has been well presented in most developed and some considered developing economies: rising inequality among individuals and countries alike has added to such processes of eroding demand – the declining Middle Class, the marginalized income growth, the rising poverty are accelerating by the ongoing Globalization, rising Productivity, the Internet, and the Chinese industrial growth: exogenous and endogenous factors that have never but in the 21st Century had a profound market effect. The Capitalism a Social-Market structure founded on industrial production of supply-driven markets could not apprehend the powers of these new developments thus greatly under-performing. The Foreign Direct Investment into huge Transnational Corporations or by lending to emerging markets’ governments have both ways contributed to the inequality by bringing huge returns to the very few prompting the productivity by improving technologies and more proficient management, but also by lower salaries and weak consumer, labor, and environmental protection laws. The ‘Catch 22’ of from one side rising Productivity and from another the decreasing demand and good paid employment have hit markets whereas the 2007-9 Recession is a good example of how harmful over-capitalization of a few sectors of a market in the case the Real Estate, the Construction, and the Capital Markets have overrun and left behind most of the rest market sectors, thus real estate prices in residential and commercial sectors rose so high that the supporting income that was supposed to match these prices were left well behind. The Recession hit the entire market with an unparalleled vengeance, indeed. The role of the easy money trickling up and down through up to 110 LTV loans aggregated the insufficiency of the US market inflating the huge balloon that finally burst.

The trickle-down Economics is based on such ups and downs to supposedly self-adjust by cutting the dead branches of overheating markets; however, Capitalism has been affected by the incredible exogenous and powers of the 21st Century that almost brought to destruction the US and many other markets, drained billions from pension funds, and impoverished many. Well, if the Earth Environment has not become in great concerns, maybe the self-adjusting could work their ways around, but with the Global Weather Changes that brought accelerating Global Warming and all the consequential disasters, the probabilities for a natural trickle-down self-adjustment without total Earth destruction are bleak. The need for alleviation of Poverty, establishing stable Middle Class all over the world must be accomplished ASAP to reduce pollution, deforestation, careless disposal, etc. Such quick response could be done only by using active market economics that must exploit Environmentally friendly approaches of all human activities but yet succeed consistent Market Development and yet preserve Freedom, Liberties, and Democracy!

 The Philosophy of Market Economics is exploring the opportunities of current days economic structures to accomplish the targeted Earth Preservation! 

Joshua Ioji Konov, 09-2016

 

The New World of 21st Century

The modern day’s economic developments have brought the following very new and enhanced some already existing powers with a force never seen before.: the Internet, the worldwide globalization along with the hugely empowered Transnational corporations and Foreign Direct Investment mostly held by Big Investors, the Chinese Industrialization that shifted industrial production from the supply to the demand side of Macroeconomics, the highly improving technologies and corporate organization that reduced insufficiency and labor force.

Life, as known, has changed forever, the supply-driven philosophies of Communism, Social-Capitalism, and Capitalism deepened in economic incoherence and under-performance: rising inequality, national and private debt have come naturally causal of such not performing Economics. History has shown that anytime excessive economic deficiencies bring extreme political ideologies and current situation from the Middle East to Donald Trump, through rising Far Right and Left Parties confirm such conclusions. The trend to attack the weak, the refugees and immigrants, the difference in view or religion has been the same for centuries, but what makes it really different lately has been the speed with which such trends have been developing: nationalism, chauvinism, xenophobia, racism, and ext just broadened to excesses and blindness only such could bring!

The declining US Middle Class looks for someone like Trump to reduce immigration and eventually bring prosperity by using his experience even when he filed 4 bankruptcy and ruined hundreds of businesses! Whereas, in Brussels and Berlin the weak EU economics is directed to all the wrong reasons: from Debt to Productivity: pushing the weak countries to dismantle labor and social protection with the only idea of triggering consistent growth; however, the weakness prevails instead – thus the Brexit, the on the brink of collapse Greece, the high unemployment and underemployment, lost generations and political instabilities in Northern and Southern Post Communist Countries. On top of all the refugees that are flooding most developed economies. The EU Periphery has been the best example of poorly handled economics: high VAT and Subsidies that redistribute taking from the have not’s and giving it to the have’s. While the trickle-down effect has become more like an illusion than reality, indeed. The people in charge, however, have not stopped using all political and financial control means insisting that early or later the system will start working!?

The system of Chinese economics seems to be the most adequate in comparison to the rest, and guess what if personal freedoms and democracy have been underperforming to a centralized practical Chinese approach many openly deny it by even calling Second or First depends of the view Economy still developing just to not answer the question how such thing happened and is happening? Why deregulated capitalism under-performs to a centralized China?

The same ‘Economists’ that predicted the collapse of the UK economy after the Brexit, wondering why this did not happen, or even before that ‘overlooked’ the 2007-9 Great Recession, mishandled Greek economy and overall the entire EU, or the Abe’s Second Arrow of raising taxes that undermine the Japanese economy revival resulted of his first arrow even though the flow of Quantitative Easing capital could not trickle-down choked by the system.

In the US the economic growth gives to the very few the majority of it: the inequality, marginally leveraging income kept the Middle Class further deteriorating and Poverty rising. The lowering unemployment has not helped this development to reverse.

The gross reality is that ‘orthodox’ approaches in economics have brought nothing but even more debt and inequality; underemployment and hard times that finally brought Mr. Trump who ‘has a quick solution’ to any problem: from underemployment and poverty to crime he ‘can fix’ it for a week or two, just entrust him with the Presidency!?

The Chinese economy is bettering others because of its ‘as it comes; as it goes’ approach that has been using any market tools to boost sectors or slow them down. The practicality and flexibility with which these economic tools can work in different economies differ, however, the principles are the same: boost Small and Medium Enterprises and Investors under a stable market competition environment: prompt environmentally friendly industries to save Earth, boost consumption but not by blind industrialization and pollution!

The 21st Century has brought exogenous and endogenous forces unknown and powerful with the Globalization and rising Productivity: if these forces are properly used the global market development may eliminate pollution, poverty, and bring stability!

Joshua Ioji Konov, Sep 2016