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,ε1xε,ε1p = Θ x [ζ – (ζ 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 coolinggarbage 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(-050.5)

Market Development

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 BanksExpanding 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 extend continued its growth was China that used the tools of economics very flexibly 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 improperly setup flexible usage of Market Tools might have different effect  on individual markets: 

  • If exaggerated I.e. incompetable amount of money is invested in a market such can bring high inflation and may even crush itor 
  • Inot enough of capital is invested in a market than 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. Despide 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 a 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 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 seeked 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 an 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 synchron 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 global marketplace.  

_________________________________________________________________

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 production, services, etc; however, the effect from 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. The 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 complicate 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, concentration of people but 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 a 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 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 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 channelsairfreight 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 to take over 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

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 suppose 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 Centuryinability 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 abomination in the 21st Century that need 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 than 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, slow downs, 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,ε1xε,ε1p = Θ x [ζ(ζ x ΙΔ)]

_____________________________________________________________________________

μ1 = [μ + (ε,ε1xε,ε1p)] = Θ x [ζ[A(y1y7)|P (1) +B(x1, x2, x3, x4, x5, x6, x7, x8, xn)|P (1n) x ΙΔ |P(-050.5)]

_____________________________________________________________________________

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

ε,ε1Equity, Entropy (x p) added by the Θ amount invested through – Market Leap, Targeted Project, Carry-on Capital Infusion) multiplied by the ζ – J Constant then subtracted by the multiplied ΙΔ – Inflation or Deflation. (see: Example)

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

A Market Agents implementation A(y1y7) considered probability to 1

B Market Tools probability p(1n] 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.

ΙΔInflation or Deflation acceptable variance p(-050.5)

_____________________________________________________________________________

Example:

14 = (Θ)10 X c[(ζ)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

_____________________________________________________________________________

The Quantum Probabilities are:

Market Agents [A(y1y7) ]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 ζ 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(y1y7) 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

ζ J Constant (0……n) where MS (Market Security) with implemented A (Market Agents) brings ζ 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 ζJ Constant (0…1n) 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 ζ 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 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 now days 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 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 superproduction 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 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 extend 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 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 od Modern Economics goes that moderate 2% gives the best economic environment so business have leverage to turn 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

PHILOSOPHY OF MARKETS


INTRODUCTION

What really must be stated 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 disfunctionality, slow growth are considered either consequences 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 into 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 hundred of millions out of poverty, building incredible infrastructure; the China’s approach more chaotic and partial having in mind the usage of the 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 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 setup 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 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 a 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: thus isn’t about Budgets and a tight leach has been used by the status-quo current practice but it is baout more motionsteared 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 means in practice?

To stear 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 to individual markets historical specifications. The Market Tools are used as Parameters mor 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 rebust 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 very negative effect on the Economy is based on a 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 a 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 markets 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

The Most Recent Developments in The Global Economy


With the coming of President Trump in power and with the Brexit, the world is coming to a point of excessive Nationalism, politicizing of Economic, widespread fear of ‘the others’, ‘the different’. The old smooth liberal order is becoming a thing of the past with its nice words, rising GDP, falling Unemployment indicators that by themselves did not include the majority of citizens in the US or other developed countries and even less in the developing world: elsewhere, rising inequality, debt, poverty, lack of business and employment all together bringing an widespread belligerence toward the normal people. Why the politicians have been applauding the ‘incredible’ economic growth and decreasing unemployment of a glorious globalization with IPhone, cheap computers, stores full with goods, professing prosperity; the many, if not the majority were actually out of the loop into a circle of everyday difficulties. In the US, UK, EU, Japan and  the developing world, maybe with the exception of China, Norway, UAE, and a few, the already succeeded economic, political structures have been out casting more and more individuals from the economic competition, calling them ‘left over’ the prosperous global marketplace.

What the current establishments do not understand is that the system does not work thus steering mass harm that is not just a collateral damage of the ‘left over’ by the globalization less educated or adaptable individuals, but a mass breakup of the global economies not being able to provide basic conditions for the many to exist normally: that brings excessiveness: nationalism, xenophobia, radicalization have become natural consequences under these conditions. To expect any natural developments that will change these developments under the trickle down orthodox economics is futile; to expect mass rising productivity, industrialization, countries balancing budgets by providing ‘adequate’ conditions for investment by cutting consumer, labor protection is inconsistent with the reality: the ongoing globalization, the rising productivity, technologies, the Internet, the large transnational corporations in manufacturing, finance, retail, wholesale, farming most definitely cannot and do not provide conditions for such muss industrialization and individual countries improvement. The developed countries are losing their middle class the developing with a few exceptions are not building such middle class: poverty, inequality, debt are the result of  such not working economics.

The European Union are the best example of how the orthodox economics is not working whatsoever!

The 2001 & 2007 Recessions were provoked by these new economic developments, too The severity particularly of 2007-9 Recession that affected the entire world economy in some ways, continued for long period, and could has not fully recover, or has recovered very weak could taken as a warning to how ineffective orthodox economics is to prevent, self-adjust, post-recover the destructive forces of the globalization and the rising productivity, of the exogenous forces in a economics of closed economies. The issues of such 21st Century economics has become so complex that by using the orthodox economics methodology is completely incomprehensive.

The 2001 & 2007 Recessions have additionally accelerated the processes prompted by the 21st Century the globalization and rising productivity to the point of unseen inequality, debt: national and private, poverty, global pollution. The increasingly high productional capacities by the transnationals, China, the fluent sales on the Internet the improving technologies, robotization reduce the industrial related employment that has always been in the foundations of the Capitalism so when these factors changed the trickle-down economics became irrelevant, not working; thus, the recessions of the Past that could had been self-adjusting have become extreme, not rulable, impossible to handle by using this orthodox philosophy. The world has changed for the last 20+ years to a point when the orthodox economic tools must have to evolve too. So, the Quantitative Easing, the Subsidies, the targeted Investment, the bailing outs, even the Social and Infrastructural expenses have become necessary market (to replace economic, economics and market (to replace an economy) tools to be used on a ‘as it comes; as it goes; approach. In the West these new market tools have been used under the pressures of an oncoming crush prevention; whereas, in China such innovative approach has been well developed and used resulting in the higher growth, market development not being so much affected by the recessions; even though, the Chinese political structures lacked the freedom and liberties of the West; the better market economics worked its ways to have China advanced to their competitors.

The Earth Environment issue has become a matter of life or dead to the entire world requiring immediate actions by all countries, but the poverty driven usage of old vehicles, fossil fuel heating, deforestation for heating or agricultural development, the improper garbage disposal have had replaced the industrial production pollution as man pollution: as the developed economies are taking measures to reduce such pollution why the developing, impoverished cannot change without alleviation of poverty, change of the entire system of economics.

So, all of the mentioned and much more was not brings the conclusions that a innovative, market oriented economics must be developed to accommodate all the new global developments to 1. save Earth from destruction by alleviating poverty, and through using environmentally friendly technologies, and 2, establish longer term market developments by using private entrepreneurialship and the power of the globalization and the rising productivity, and 3rd use human ingenuity to improve technologies, management, organization; all of these but by limiting governments economic involvement, saving and enhancing individual freedoms, democracy. And the question remains: is all of these possible, are there such systems to accommodate all very complex global developments?

To ignore the realities and continue using economics as usual has shown particularly in the EU the bastion of the orthodox economics the long lasting harmful consequences that finally brought rising extreme left or right parties, leaders: from Hungary, Poland, Italy, Romania to Brexit the economics has greatly underperformed with high unemployment, eroding middle class, social policies, business activities that brought rigid politicians, parties that are limiting personal freedoms, media, immigration, – the blooming nationalism, zelophobia, radicalization resulted of such weak economies, economics. When deleveraged to the inequality, debt the GDP elsewhere in the EU has shown inadequate approach that could not accelerate individual business involvement enough to employ the majority into productive environment. Instead, the political madling with individual, less developed countries politics has been used to ensure some stability, the continuation of the orthodox trickle down economics that policies obviously failed to prevent the mentioned Brexit, Hungary, etc. The biggest tragedy of the EU is the long term slow down that under the Capitalism spells Debt whereas the 3% Debt/Deficit Rule limits the ability of individual countries to wrestle such harmful developments; it has been more like ‘Catch 22’.

But such developments could be well traced in the United States bringing in power the extreme right in the entire government wings: from the White House, Lower and Higher Senate Chambers, to the Supreme Court that is the last ongoing development. And as in the EU, the US political turbulence can be well traced in the US economic developments: President Trump was elected by the ‘left over’, ‘deplorable’ unemployed, underemployed, not given business opportunities , normal life.

The only country, market, economy that avoided such melt down has been China; but it used ‘as it comes; as it goes’ approaches market economics more successfully than anyone else. It is wrong to think that China manipulated their currency and therefor succeeded; it is more complex a system of 21st Century flexible market economics that achieved such successes.Thus, to first, consider that somehow the trickle down orthodox economics has worked for China is jut not correct, because China used much more flexible market related economics: for example instead of maintaining General Equilibrium theories as all other Central Banks China used Parts Equilibriums theory along with targeting economic, market sectors by using lending, fiscal restrictions, initiatives to either slow down or give boost to targeted market sectors. China used State Owned Corporations to keep rising income, consumption, demand, too; that, approach use to bring inflation, shortages, underdevelopment in the past Communist Blocks now has helped taking out of poverty more than 600 Million Chinese, because the world of real economies has changed from pro Supply driven to a pro Demand or at least Equilibrium driven marketplace. What China has  shown to the world was that even an economy, market lacking freedoms, democratic freedoms if using properly economics it can succeed immensely. But also, if countries, economies, markets do not use proper market related economics the results could be meager, catastrophic, harmful not just to their or the global economy, marketplace but will have political consequences bringing back many years of liberalization, democracy, improvement.

Joshua Ioji Konov 2017