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* 

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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.

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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)]

_____________________________________________________________________________

(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)

_____________________________________________________________________________

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

_____________________________________________________________________________

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.  

_________________________________________________________________

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

Marketsm – Active Economics

Economics has been a playground for the governments for the good part of the 20th and the 21st Centuries; from the far right trickle-down Austrian liberalism to the Soviet style ultra left total control by the government. Such extremes were prompted by the ideologies of from one side firm believes in the free Libertarian economics founded on the pro-supply marketplace, vigorously suppressing Inflation through tight Monetary and Fiscal policies and a generally controlled economies by the Communists believing in the Marxists views proclaiming the constant classes’ straggle for who to control the means of industrial production: a pro-supply economics, too ‘from quantitative aggregations to qualitative improvements’ dialectic theory that is just on the opposite side of the Libertarian philosophy whereas the pro-supply principles that create economic growth are the same! Both theories rely on a ideological control over the economy using very common explanation of how a pro-supply economy works: the dialectic powers of the industrialization establishing high profit margins economics!

 When the Communists economies and economists are gone for good with a very few exceptions of Cuba, Venezuela, and North Korea the Libertarians continue ruling the global economics almost unconditionally. By its nature the pro-supply economics is trickle-down driven: either by the rich or by the government owning and controlling the industrial means of production – makes no difference philosophically and practically – the ideas and ideologies are based on the same principles: ‘shady’ business (remember the huge factories polluting, filthy. full of injustice and Communist officials in total control on individuals freedom or the big businesses and investors using Offshore Banking and many other ways not to pay taxes). The Communism and the Capitalism have many things in common even when the results are different: the first is gone without glory when the second has succeeded in building prosperity in North America, Western Europe, Japan. etc 

 However, the industrial production capabilities evolved from a pro-supply short marketplace into a pro-balance such: the ongoing Globalization, rising Productivity, the Internet and Chinese Industrialization have reached very highest tipping off the supply driven markets. The exogenous global forces are up to the point of suppressing markets invoking stagnations: dilation instead inflation.

 The Global Warming is a turn-off on the old style pro-supply economics factor, too: the inability of the libertarianism to establish stable markets with less inequality and alleviation of the global poverty necessary for reduction of  old vehicle usage and primitive heating, excessive deforestation that is a main source of pollution and improper garbage disposal.

 A practical economics able to comprehend and apprehend these new developments into  productive force is needed more that anything because the global marketplace is ruled by conceptions and ideologies. In the modern age of high technologies and the Internet the probabilities for setting up such productive economics are as high as ever, but the ongoing believes and conveniences of the old even underperforming practices are overwhelming.

 Such economics, I called Marketism i.e. Market Economics saves on a Micro level the markets and market competition as factors that can limit excessiveness by keeping free entrepreneurship the main source for development, and by limiting governmental powers and market take overs.

Economics that marginalize the inequality with which Small Businesses and Investors participate in the market competition in compearance to the Big Businesses and Investors, and makes economic tools such as Social and Infrastructural expenses of the past partially equitable parts of the Market Equilibrium. Takes in account the exogenous powers and environmental protection to steer business activities in these very complex marketplace.

 Marketism is also flexible: it differs from market to market, from country to country, where even though, the Market Agents such as the Rule of Law in Business, Contracting, the Environmental Protection, Consumer and Labor Protection, Intellectual Property Protection, Insurance and Bonding Laws must be mandatory the Market Tools of Private and Public Investment, Subsidies, , Social and Infrastructural expenses, targeted Market Leaps with less or more governmental involvement are disproportionately used and specific for individual markets.

There is no status quo in using Market Tools: some markets where the governments are much involved may need less involvement some to the opposite may need more; however, targeted are Full Employment and Low Inflation/Deflation: the Budgetary Economics goes to a secondary factor – the risk to reward investment of Marketism is similar to the Stock Exchanges present system – Governments should not be neither becker nor  investors; even though the strict business laws call for personal liability the insurance and bonding,and bankruptcy are market tools,

Joshua Konov 2016

State and Private Debt of Market Economics

In recent economics debt is in the foundations of business and equity – state debt limits governments’ expenses, social, educational, infrastructure, policies and international relations – private debt limits individuals’ expenditures, abilities to access better education, housing, and etc; however, ‘credit’ that could fall into ‘debt’ is a main market tool giving governments and individuals the abilities to expand infrastructure, business, equity, and etc using capital, which could not be approachable but by through crediting. The difference between ‘credit’ and ‘debt’ is in the momentum – whereas ‘credit’ is targeted investment considered in motion, a ‘debt’ is negative after deficiency market imbalance. The distinction between working ‘credit’ and accumulating ‘debt’ is a thin line that could be crossed by global recessions, works of nature, or political turbulence. Between ‘credit’ and ‘debit’ comes public financing – in case the ‘risk’ is taken in parts by the investors thus limiting the issuers (could be governments or corporations) liability; however, in cases like “Bondholders against Argentina”,

CAMBRIDGE – Argentina and its bankers have been barred from making payments to fulfill debt-restructuring agreements reached with the country’s creditors, unless the 7% of creditors who rejected the agreements are paid in full – a judgment that is likely to stick, now that the US Supreme Court has upheld it. Read more at http://www.project-syndicate.org/commentary/jeffrey-frankel-explains-why-a-recent-us-supreme-court-ruling-leaves-creditors-and-debtors-worse-off#LEKoUJp5KSDDLW2A.99

or “IMF, ECB, Germany and other lenders against Greece” bonds are capitalized into loans and the governments of Argentina and Greece are required to pay these in full.

There are many historical occasions when ‘debt’ on countries level was forgiven or let it die in time:

The revolutionary war set up the United States’ new monetary system – all partially causal to the austerity measures and trade restrictions on the Colonies implemented by the Minister George Grenville – by year 1763 Britain’s national debt had risen to £122 million, or over 150 percent of the Gross Domestic Product that prompted strict austerity and trade-restrictive policies:

“Grenville passed the Currency Act of 1764, which forbade the colonies to emit any new currency. Finally, in 1765, Grenville ushered the American Stamp Act through the House of Commons, a measure that was designed in part to restrict the colonial land market.” se “1776: The Revolt Against Austerity”

Germany after the Second World War and Poland after the fall of Communism are the best example of such …

Yet debt forgiveness has an established historical precedent in Europe. Poland, for example, had accrued external debts of about 57% of GDP by the time the Communist system had collapsed, with the majority of that debt (around $33 billion) being owed to Western governments. Poland’s largest creditor at the time was Germany, which reluctantly agreed in 1991 (under pressure from the United States) to go along with the “Paris Club” of creditor nations and forgive half of Poland’s debt to the West (though this was less than the 80% write-off Poland had originally been seeking). An even more dramatic example is provided by Germany itself. Historically, Germany has been described as the biggest “debt transgressor” of the 20th Century, with restructurings in 1924, 1929, 1932 and 1953. Total debt forgiveness for Germany between 1947 and 1953 amounted to somewhere in the region of 280% of GDP, according to economic historian Albrecht Ritschl of the London School of Economics. Today, Greece has an external debt-to-GDP ratio of roughly 175% (by comparison, Germany’s external debts currently stand at about 145% of GDP).

On individuals or corporate level ‘debt’ has been washed out by bankruptcy procedures – in the US bankruptcy courts are much speedier and overall easier than these in the EU, that some economists consider the main reason for the better way US economy has performed in post-2007-9 Recession times. By giving debtors a second chance bankruptcy courts play some fundamental role in taking individuals and businesses out of the big hole of debt into the market opportunities, thus boosting business and consumption.

The most unorthodox economic approaches to flood capital into underperforming markets is the used by the US, UK, Japan and now EU central banks so-called ‘quantitative easing’, while instead of borrowing publicly or privately capital to revive their economies these central banks ‘produced’ such capital from ‘thin air’ into the system. The ‘status quo’ economics predicts that additional capital – such not a product of an economy market activities (debit/credit) – would prompt inflation; however, no inflations but deflations have occurred in the post-recession times? Neither, the huge debt accumulations by Japan, the US, many EU countries, and others have prompted inflations either! Thus, neither the quantitative easing nor the huge debt has yet created sweeping inflationary forces. In context with the ‘status quo’ economics are the ways government accounting is done by not properly deducting QE from the overall debt even so the capital infusion by QE writes off debt by acquiring issued bonds? In referring to inflationary forces or the lock of it for the last 20 plus years the ongoing Globalization, rising Productivity, China’s Industrialization, and the Internet could be considered causing the increasing exogenous economic pressures over national economies indicated in by their deficit adding to their debt.

The world is crippled by too much debt. The borrowings of global households, governments, companies and financial firms have risen from 246% of GDP in 2000 to 286% today. Since the financial crisis began in 2007, debt-to-GDP has risen in 41 of 47 big economies. For every extra dollar of output, the world cranks out more than a dollar of debt. The Economist explains why the world is addicted to debt http://econ.st/1eaQEgc

As simple as things may look like the results of this system of economics not being able to accommodate these exogenous forces cause fundamental global market imbalances – unemployment, declining middle class, small business and investment, and accumulation of high national debt.[1]

Market Economics employs exogenous market forces and thus capitalize on the 21st Century irreversible developments by not only enhancing the international accounting but further by employing the immense powers these exogenous forces posses to boosting national and global Market Development through alleviation of poverty and environmental Earth protection.

The countries debts are considered by Market Economics as the present corporate and individual debts involving bankruptcy, mitigations, negotiations, and etc; whereas investors take their reward and risk; however, Foreign Direct Investment and Productivity are not considered primary force for global development but supplementary such, because the more important consideration such as Earth protection requires poverty alleviation by not prompting mass industrialization.

Capitalism uses foreign direct investment by transnational corporations to raise productivity and bring a return on this investment that could be only achieved through industrialization, and the global accounting system is set up on these principles;

The Marketism uses subsidies, low-interest financing, and etc along with foreign direct investment to prompt environmentally friendly Market Development that will alleviate global poverty and thus save Earth from destruction using market principles and saving individual freedoms.   Joshua Konov 2015 [1] http://www.economist.com/blogs/graphicdetail/2015/05/daily-chart-4?fsrc=scn/fb/wl/dc/st/thetracksofarrears

Parameters – Market Agents and Tools – of Market Economics

Market Economics uses environmentally friendly approaches to steer business and employment of a democratic society that consequences into poverty alleviation and middle-class growth on a global scale. It is founded of the existing principles of the Capitalism, however, it changes the shady ‘easy’ business into strict law of business to deleverage the inequality of market competition to raise ‘market security’ and the small businesses and investors lend-ability that differs from the current economics.

If Market Economics accepts ‘uncertainty’ as an ongoing and growing market (economic) development – product of the ongoing exogenous for individual markets (economies) forces coming from the ongoing Globalization, rising Productivity, Chinese Industrialization, and the Internet – to manage such ‘uncertainty’ an ‘as it comes; as it goes’ approach is needed that could be only achieved if market (economic) tools are used as ‘parameters’ to prevent the global marketplace from exasperations that could bring upheaval.

The ‘market agents’ are status quo necessities required for raising the ‘market security’ by marginalizing the existing inequality in current market competition – how ‘small and medium businesses and investors’ are affected by the business laws and conditions in comparison to the ‘large businesses and investors’. For the ‘market economics’ to enhance ‘capital transmission-ability’ and thus boost business activities – employment and fiscal abilities – the acceptance of more fair ‘market agents’ is paramount: enhanced business, liability, contract, environmental, consumer protection, bankruptcy, insurance, bonding, and labor laws will raise ‘market security’ allowing lower rates of lending.

However, the ‘market tools’ are used as ‘parameters’ to balance market equilibriums in synchrony with the ongoing deflation/inflation forces in the real economy – flexible capital infusion through FDI but also through Subsidies, Low-Interest Lending using ‘market leaps’ mostly by developing alternative: energies, tourism, and farming should go global. Social, educational, research and development, and infrastructural expenses, prevailing wages, and etc are also such ‘market tools’,

To save Earth the alleviation of poverty is necessary; however, achieving it not through the industrialization of the present Capitalism but through targeted ‘leaps’ of diverse environmentally friendly businesses of the Marketism (Market Economics).

The Marketism will work under high ‘market security’ with enhanced ‘market agents’ whereas the ‘market tools’ are used indiscriminately in comparison to the ideological approaches or current budgetary economics – the debt issues will resemble the individuals/businesses system of lender/debtor approach in which governments and countries will have less intrusion in economics being more on the controlling side than on the capital transmission such – Commercial Banks and International Financial Institutions will approach directly markets thus reducing corruption and politically motivated investment of the Presence.

The ‘parameters’ are flexible in nature: some on the supply side such as targeted subsidies and low-interest business financing another on the demand side such as social, infrastructural, educational, prevailing wages, and etc expenses. Balancing ‘market equilibrium’ because of increasingly relevant exogenous market forces will be targeted through market sectors ‘parts equilibrium’ than the currently used ‘general market equilibrium’ – thus monetary policies will not work by varying discount interest rates of the Central Banks but by expanding or reducing individual market sectors lending rates and/or fiscal initiatives. If markets are taken as ‘demand to supply’ (not to be mistaken with ‘supply to demand’) places for business competition the long-term ‘market development’ depends on the relative ‘stable’ market environment that is only possible by mitigating the excessive market/economic fluctuations through using the ‘parameters’ to prevent ‘big waves’ of excessiveness – the market forces on sectored/partial level – natural to the market competition are the best ways for keeping ‘marketing equilibrium’; however, the fierce variations experienced in the last 2007-9 Recession lesson goes to active usage of these ‘parameters’ to prevent such harmful consequences of a ‘as it comes; as it goes’ economics.

Joshua Konov 2015

Bankruptcy in Market Economics

There are well-substantiated suggestions that the difference in the bankruptcy procedures between the US and the EU has given the US an upper hand while dealing with the 2007-9 Great Recession and the Post-Recession tremendous economic issues. By giving individuals and businesses a second chance in relatively short procedures the US Bankruptcy Courts have helped jump starting the economy, whereas their EU counterparts followed much lengthier and complacent largely ineffective practices – the divisions among countries and even regions in the EU, in their economic achievements and jurisprudence apprehension have taken an additional toll to prolonging bankruptcy procedures; however, the difference in the way bankruptcy has been processed in the US and in the EU is just one of the issues that have brought to substantial divergence in economic growth between the two – the insistence by the EU on the trickle-down economics of austerity, the redistribution of wealth from the have and to the have not: through VAT, monetary and fiscal means, subsidies and programs targeting mostly large businesses, the overall reliance on the large corporations and investors – the so called FDI – to boost productivity and growth, the growing nationalism, xenophobia, and the pressure on the national governments to comply through pay backs boosting corruption are just some of it. However, this article will concentrate on the ‘bankruptcy’ and how it is considered by the Market Economics as a ‘tool’ of economics.

Just for reminding – the Market Economics is an ‘as it comes; as it goes’ approach in economics that uses market ‘tools’ as parameter to steer up or slow down market forces under the circumstances– it is not so much a ‘budgetary’ economics as it is ‘inflationary/deflationary’ adjusted to system. What brought Market Economics as possibility was the tipped off over all industrial capability by the ongoing Globalization and rising Productivity, the Chinas Industrialization and the Internet; the Market Economics is necessary to deal with the needed Environmental Protection and related Poverty Alleviation not relying on an industrialization of the Capitalism, and therefore not relying on the Large Transnational Corporation and Investors or the so called FDI to boost productivity and economic growth. The deleveraging of market structures to marginalize current economy’s market advances to the large corporations and investors is a postulate to raise the market security – and thus the Small Businesses and Investors lend-ability. Fundamental, for this approach, is the exogenous economic forces consequential to the ongoing Globalization and rising Productivity.

Market ‘agents’ and ‘tools’ to succeed market security vary from the enhanced business, insurance, environmental, consumer protection laws to the prevailing wages, labor laws, to market ‘quantum’ leaps through investment, subsidies, and low interest rate – all pinned to inflation/deflation.

The idea is by enhancing market security the global economy would allow small businesses and investors through natural to the markets means.

Market Economics changes the ideas about what a global marketplace should look like – whereas Environmental Protection Laws are paramount – but such to be succeeded in a world, deepening in poverty, an alleviation of such poverty on a global scale must be accomplished!

A ‘bankruptcy’ is a ‘tool’ of economics such as ‘infrastructure’ and ‘social expenses’ are – just a balance market tool on the demand side of the occasion, and therefore, the laws of market economics and the possible balances between the demand and the supply sides apply to the quantities of bankruptcies’ market tool used without provoking inflation/deflation that can hurt an economy – it is all about market equilibrium that could be achieved by using FDI or/and targeted subsidies, low interest rate lending, etc through gradual and/or market leaps approaches. Alike ‘social and infrastructural expenses’ that could be expanded to a point when these start hurting the market economy by prompting excessive inflation/deflation ‘bankruptcies’ even needed to keep market equilibrium may easy rise up into excessiveness – that must be sustained accordingly!

Joshua Konov 2015

The EU Mixing True and Fiction in Dealing With Greece

The European Union authorities and the media are constantly talking about reduction of Greece’s debt whereas it is about the turnaround of the Germany’s insisted austerity policies that have wracked the EU ever since the 2007-9 Recession. An approach of ‘bagger your neighbor’ by keep cutting social services, education, medical, and any governmental expenses – the theory goes: ‘when a market gets indebted by cutting expenses and regulations such market becomes attractive to foreign direct investment with its low salaries, desperate work force under high unemployment, low social expenses, cheep prices privatized assets, etc idyllic conditions for the large investors and transnational corporations to move in raise productivity and get such market becoming competitive and sound’; however, that was suppose to happen, instead – the unemployment reached heights unknown, the consumption plummeted without attracting major investment or rising productivity – in reality, the whole theory that is founded by neo-liberalism collapsed prolonging slow if no growth in-and-out of recession business environment followed by rising National Dept as a percentage of an ever declining GDP – it has become a ‘catch 22’.

The Brussels bureaucrats and the Berlin masters instead of sitting down in comprehensive evaluation of these realities has continued to call their mantras until Greece elected a totally different and not controlled by them government who called for change.

Seemingly, the Greece’s insufficiencies in administration and business environment did – in the past – cause substantial debt, the EU actions targeted reducing the existing administration and improving business to overcome these insufficiencies; in practice, nothing good came out of the austerity measures but misery, unemployment, lack of development, so obviously the reasons for these insufficiencies were not the one evaluated by the ideologically inclined Brussels and Berlin, or at least the actions requested were not the right one to change the existing pattern, you should recognize them by the results: higher unemployment, increasing Debt to GDP ratio, and total economic collapse of the Greek market equilibrium and development.

What went wrong and why the liberalism did not perform? One sentence: – the exogenous pressure were not accounted for and taken in consideration – the Globalization and rising Productivity have brought pressures in manufacturing, employment, technologies changing the pro-supply market growth of the Capitalism that could have been positively affected by the Austerity into a pro-demand (pro-market equilibrium) market development of the 21^st Century in which inflationary forces change with deflationary, exogenous factors take larger percentage from economies/markets, and the Economics must change to accommodate these changes in order to perform, the Liberalism has not done it and therefore the results are negative. Greece is a best example of these new developments: the high debt and unemployment, and lack of growth will persist unless new approaches are used to take the Greek as well entire EU. Joshua Konov, 2015

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

Market leaps are necessary to achieve Market Development on a Globalized Marketplace.

The difference between the passive currently used Economics and the proactive Market Economics is in the approach to prompt Market Development id Economic Growth; whereas, the formal one uses Investment (mostly private) and Productivity preferably under shady business practices and lower taxation to prompt Economic Growth; the Market Economics uses targeted financing through investment, subsidies, low interest lending, and other market tools for a pre-programmed approach (Market Leap) to prompt Market Development.

The ‘J Factor’ indicates the level of sufficiency of the market transmission-ability of Capital. It varies in conjunction with the functionality of an economy/market. The Rule of Law in Business, the Infrastructure, the Social Structure are the objectives for the ‘J Factor’; however, the ongoing Globalization and rising Productivity provide higher flexibility to have economies/markets enhance their ‘J Factor’ by the implementation of the following Market Agents:

• Consumer Protection Laws
• Environmental Protection Laws
• Insurance Laws
• Bonding Laws
• Unlimited Liability Corporate Laws
• Firm Business Contracting Laws
• Intellectual Property Laws
• By-Sectors Monetary Policies on Lending

The inadequate infrastructure and social structures play important role to higher ‘J Factor’; however, the implementation of the appointed ‘Agents’ gives over ‘0’ – ‘J Factor’. Artificial Market Tools as Subsidies and Low Lending boost such undeveloped markets through targeted investment. Through a ‘Market Leap’ using Quantum Probabilities Theory to project and limit inflation/deflation effect a Market Development is achieved; however, with the improvement of the Infrastructure and social structures in a longer-term development the ‘J Factor’ comes substantially higher. Undeveloped markets with corruption, weak banking, and lack of infrastructure and social structures are considered impossible for exogenous interference; however, the globalization allowed large retailers, manufacturers, and banks to open outlets almost elsewhere – with the few exceptions of North Korea, Cuba, and the war zones. The exogenous Market Leap can be financed and controlled through the commercial banks; the government should be required to implement the Market Agents.

The Projects of Alternative Energies, Tourism, Farming, and Technologies should be the motors for Market Development; so, Market Leaps should be the Market Tool for succeeding it. The world cannot afford any more deforestation, exploitation of old cars, and fossil fuels heating resulted of the poverty driven markets/economies.

A ‘J Factor’ could vary from ‘-2 to 0 to +2’. Such J Factor is a multiplier to the invested capital; whereas, a market performs causal to its pre and projected level of development could bring straight return on the invested capital, along with some ‘Equity” built up of a long-term Market Development. Thus seasoned ‘Equity’ is to improve these markets’ standard of living, prompt environmentally friendly development, and eradicate poverty. The Market Economics uses Quantum Factors to provide “J Factors’ for different markets: first, to show their transmission-ability and return on invested capital along with added market ‘Equity’, and, second, to prevent from harmful inflation/deflation sparks.

The J Factor performs in its best while a market runs from 2% Deflation to 2% Inflation; however, such precondition is optional and is mostly advancing to a straight return on investment, and not that much to a long-term Market Development, which would advance independently as long the pointed Market Agents are implemented in a market/economy (such independent – not connected to the Inflation/Deflation Market Development depend from the size of such market/economy as well of the size of the targeted Market Leap. In such a case, the expectations would be for more volatile return rising with the increasing Inflation/Deflation market environment.

In relation to the ‘J Factor’ a market/economy could need pro-demand market (when the globalization is well presented), a combination of pro demand and supply, or a pro-supply leaps; therefore, the planning of a market leap is specific for individual markets.

Pro demand Market Tools:

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

Pro supply Market Tools:

• Fiscal Breaks
• Investment
• Subsidies
• Sectional Inflation/Deflation Interest Rates
•      Lending Rates
• Borrowing Rates
•      Prevailing Wages
•      Bonding on Market Prices
•     Access to Public Financing

A Market Leap is the approach to boost business activities through subsidizing, low interest lending, or investing will differ because of the ‘J Factors” levels for individual markets. The industrialization belonging to the supply side of individual markets is not considered possible Market Leaps, because as stated in many places of this research, the global industrial production capability has tipped-off as a result of already succeeded by the Transnational Corporations and China capacities, which will benefit substantially from other markets increase of demand.

Example 1 for a Demand based Market Leap:

Undeveloped Market A (could be a country or underdeveloped markets ex. Detroit) in which 60% of the heaters are on fossil fuels, 80% private and commercial residences not-insulated (walls, windows, doors, etc.) resulted in very high pollution.

Low-income results to low consumption:

GPI 5,000 USD per person

GDP 10,000 USD

Residential Occupied Properties: $3 Million

Commercial: $1.5 Million

High energy consumption and on fossil fuels 2,000,000 Residential 1,000,000 Commercial

Inflation 1%

Required by the Environmental Protection Laws improving to standard properties.

To Improve Properties to low energy consumption with non-fossil heating per Item $20,000 US total $60 billion US:

1. Market Agents implemented.
2. Market Tools used:

• Fiscal Expenses – 0 Taxes on Non-commercial Houses for 5 Year
• Investment – 20% (Commercial properties related) – $12b US
• Low (1-2%) Interest Lending – 40% – $24b US
• Monetary Subsidies – $24b US – IMF
• Insurance Expenses – $2b US – Gov
• Apprenticeships – $1b US – Gov
• Prevailing Wages plus Materials 95% from Total or $6b US
• Local Employment Preferential and Market Related
• Financing and Financial Control: Lending and Subsidies thru Commercial Banks
• Social Expenses– N/A
• Infrastructural Expenses – N/A
• Educational Expenses – N/A

‘Equity” (on paper) built non-seasoned $50b US, seasoned equals Total (minus 20% on Loans) plus ‘J Factor” – example 0.50% – $25b US ($18b US Commercial with ROI $6b US in ‘Equity’). Overall seasoned ‘Equity’ gained by the market – $75b US.

Paid for Construction Employment – about $27.5b US or $9,500 US per Unit.

Paid for Equipment and Materials – about $27.5b US or $9,500 US per Unit

Pollution from heating and waist of energy after Market Leap NONE.

Joshua Ioji Konov, 2014

Joshua’s Second Law of Market Economics

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

There are a few ways to finance Demand:

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

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

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

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

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

Joshua Ioji Konov, 2014

Joshua’s First Law of Market Economics

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

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

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

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

Demand	Supply
By-Sectors Monetary Policies in Lending Consumer Protection Laws Environmental Protection Laws Insurance Laws Education  Infrastructure on Projects Investment Social Policies (including: Pensions, Social Security, Unemployment Benefits, Medicare, etc.)	High Market SecurityHigh Education Research and Development Unlimited Liability Corporate Laws Business Contracting Laws Apprenticeships Intellectual Property Laws Bonding Laws

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

Example of an increase: 4 x 1.25 = 5 (the gained amount is 1) 

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

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

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

Demand	Supply
·      Fiscal Expenses· Low-Interest Lending ·      Investment ·      Monetary Subsidies ·      Insurance Expenses ·      Social Expenses ·      Infrastructural Expenses ·      Educational Expenses	·      Fiscal Breaks·      Stimulus Packages ·      Investment ·      Targeted Inflation/Deflation Prevention Interest Rates ·      Lending Rates ·      Borrowing Rates ·      Prevailing Wages ·      Bonding on Market Prices ·     Access to Public Financing

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

Joshua Ioji Konov, 2014

Joshua’s Second Law of Market Economics

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

There are a few ways to finance Demand:

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

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

Joshua Ioji Konov, 2014

Joshua’s Third Law of Market Economics

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

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

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

Joshua Ioji Konov,2014