Uncertainty, Probability, Parameters, Market Economics Using Quantum Approaches

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

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

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

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

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

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

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


ε,ε1xε,ε1p = Θ x [ζ(ζ x ΙΔ)]


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


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

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

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

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

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

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

ΙΔInflation or Deflation acceptable variance p(-050.5)



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

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

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

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


The Quantum Probabilities are:

Market Agents [A(y1y7) ]complete implementation that will keep in (0….1) variance;

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

The J Constant ζ up to n%;

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

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

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

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

Θ– Market Leap, Targeted Project, continuous Market Development

A(y1y7) Market Agents:

Strict Rule of Law in Business,

Unlimited Corporate Liability for the Management

Enhanced Protection Laws in;



Earth Environment,



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

Quantitative Easing, SDRs;


Low Rate Lending;

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

Infrastructural Expenses;

Markets, Regions Parts Equilibrium Monetary Policies;

Fiscal Policies;

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

n. Others

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

Ι/Δ – Inflation/Deflation

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

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

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

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

Joshua Ioji Konov 2017



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


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.


The Market Agents required (considered unifying) implements:

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

Enhanced Protection Laws in;

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

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

  • Quantitative Easing, 
  • SDR, 
  • Subsidies, 
  • Low Rate Lending, 
  • Social Expenses 
  • Infrastructural Expenses 
  • Market Leaps
  • Targeted Projects, Markets, Regions
  • Parts Equilibrium Monetary, Fiscal, Regulatory interference by Central Banks, International Finance Institutions 

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

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

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

       The Joshua’s Three Laws in Market Economics:

  1. “If a House needs Painting and a Painter is Available: Market Economics should have the House Painted and the Painter Employed”
  1. “If ‘the House is painted’ and ‘the Painter employed’ in limited Inflation/Deflation and higher than ONE/MINUS ONE ‘J Factor”s market environment: the market Entropy is boosted and Equity is built; therefore, thus Invested Capital/Subsidies/Low Rate Lending prompts Market Development”
  1. If the capabilities of the Market Economics are not explored and used globally under enforced Environmental Protection Laws and the rest ‘J Factor’ Laws & Practices the Earth’s Environment is to deteriorate and the inequality is to rise to the points of no return bringing Environmental Destruction and Global Social Unrest”.

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

What does the Market Economics means in practice?

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


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

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


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

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

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

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

by Joshua Ioji Konov (A1)

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

Joshua Ioji Konov 2017

The End of the Social Level with the Beginning of the Market Level of Human Development

The Globalization and rising Productivity along the Internet and the rise of China have created very new economic worldwide conditions where aggregating national debt and inequality brought unknown powers to the practiced by the Social Level – trickle-down Capitalism: system built on rising productivity that prompts Investment that mostly capitalize on large transnational corporations, investors, and favoritism under the conditions of shady business practices to concentrate capital that would have countries prompt business activities that in time will crystalize into industrial and high-tech production. The way Brussels and Berlin have pushed Greece to reduce its Labor laws, adapt further austerity and increase its Value Added Tax to provide better conditions to the Large Transnationals and Investors to prompt Greece’s competitiveness and productivity could be considered a good example of the Social Level philosophy – however, the barely growing EU economy, the increasing inequality and national debt, and the ongoing global stagnation accompanied by the out of balance demand have indicated the inability of such philosophy to perform on national or global levels alike for such to be considered the status-quo it is. Why in the past the economies were driven by such supply sided philosophy into building such great economy like the US, Germany’s, or Japan’s ones, through and after the 2007-9 Great Recession economic policies have shown that the more interference by the governments by using stimulus packages, quantitative easing, and etc. the more successful into overcoming the recession and prompting economic growth they have been; and in the opposite: the more neoliberal pro austerity ( EU is the best example of such) the least successful they have accomplished. Whereas China has been the best example of using ‘random’ an ‘as it comes; as it goes economics’ in succeeding the highest growth of them all. Thus, naturally, the conclusion that the 21st Century’s global market conditions have brought the exogenous interference with national economies to the point when the supply powers have greatly overcome the demand side of these thus prompting unsuitable for the Capitalism market conditions, therefor the inequality increase substantially along with widespread debt: national and private.

There are not that many options to overcome these new developments but the governments taking over further over the market forces, or the market economics to comprehend and apprehend these forces into an improved system of market development – here in particular: the economies are replaced by markets and the economic growth by market development! And, because it is well known the inabilities of any government to run markets and business, it is well known their inflexibilities and corruptness, it is obvious a need for a market driven system to maintain market equilibriums and long term market development.

The difference between such Market Economics and the Capitalism is not in the ways of appropriating someone’s recourses to be distributed or redistributed by social means, but into the very much enhanced level of Business, Consumer Protection, Environmental Protection, Labor, Insurance, and etc. Laws to deleverage the existing market disadvantages for the Small to Medium Businesses and Investors in compression to the Large such that will establish more secure market conditions to boost business activates naturally enhancing the demand; however, because Market Economic uses an ‘as it comes; as it goes’ approach the ‘Invisible Hand’ of subsidies and direct investment, fiscal and monetary stimulus, social and infrastructural expenses are well included as market tools to balance market equilibriums when needed, indeed.

Targeted Environmental Protection must be used as a main tool for Market Development nationally as well globally by using market tools into Market Leaps to prompt and maintain Market Development. Total ban on pollution and deforestation can be succeeded only by overcoming poverty and providing conditions for employment to everyone – the theories of ‘healthy’ 4+ percent unemployment, or the limited resources keeping many to access such creates conditions for wars and extremism to finally destroy Earth environmentally!

To maintain markets in equilibrium in an ‘as it comes; as it goes’ business environment the market tools must be used as parameters more like a Quantum Factor approach however remote it may looks like the Uncertainty Principle applies onto these new market conditions than the Trickle-down one, or the Governmentally run one. The complexity of Market Economics could be only overcome by adjusting market fluctuations in a quantum environment like; because, by aggressively prompting business activities and thus the demand side the possibilities for market fluctuations arises!

The supply side Social Level of development prompted economic growth by keeping low inflation and eventually by allowing overheating economies accept limited recessions to rebalance excessive production and management; whereas, the market equilibrium Market Level succeeds Market Development by allowing self-adjusting only on Microeconomic level whereas it interferes wherever unbalances affect general equilibriums; therefore, the Central Banks practice to balance general equilibrium by raising or lowering interest rate changes into a system of Central Banks interfering on microeconomic sections level by number of stimulus or restricting tools!

Joshua Ioji Konov, 2015

Market Economics Using Quantum Approaches

The number of articles I have written on the subject could be very perplexing for specialists and regular readers alike, because of the complexity of issues evaluated and mostly because of the ideologies have been broadened out for centuries, the ideologies that justify the deep division between rich and poor, countries and regions. The Cold War with its profound partition between the ideas of free market entrepreneurship of the Western Block Countries and the government-run economies of the Soviet Block Countries. Thus, it will be well concluded that altogether cultures of philosophical schools and religious conceptions have been exploited to smooth these divisions inside countries and set up conditions for unity and normality in life. Nationalism, chauvinism, xenophobia and over all “I am better then you are” aptitude have helped countries prosper competing to others, Empires rose and fall alone; and at present Economic Powers came up into existence.
Most of these Historical developments could be greatly explained by the processes of economic progress, because the Economy is a mirror of the History indeed. Over all the farther we go in the past when the means of production were less developed and the individual intellectual involvement was far less productive the bigger division between the having and the having not. And, in the same time the closer to the most recent times, the more middle class participation, the more individual intellectual involvement, and the more enhanced standard of life for the majority.
The rise of the technologies, the Internet, the ongoing Global political depolarization and the subsequent Economic Globalization, the ability for investing to another place not just into the developed part of the Western world for a substantial ROI “Return On Invested” capital, had brought general economic explosion of the 1990’s, but also these brought the economic upheaval of the 1989 stock exchange crash, and the most recent Great Recession of 2006.

The existing economic and social structures of (I call it) Social Order that was well perfected by the Most Developed Western Economies which is pro supply by nature of more or less trickle-down economics with relatively high lending rates (the set by the Most Developed Economies’ Governments low almost to 0 internal interest rates do not affect that much the inter-countries lending rates nor this do to the majority of the Worlds’ Small and Medium Businesses where these rates are even higher then before the Last Recession: see the interest rates of the securities sold by Greece, Ireland, Portugal, Spain, or see the rates Small and Medium Businesses are borrowing in the US). The Capitalistic trickle-down

economics is based on a relatively shady Business Practices maintained to prompt “easy business” which under the most recent conditions allows better and faster concentration of capital which effect does not result a possible on the US marketplace business expansion  but instead this effect consequences of high  profitable ROI from some Developing Countries then from the US; the “shady” business practices in which laws and regulations are far from the perfected common laws generally allow easy businesses start-up but than the “security” of these start-ups is quite limited to let lower interest lending, nor the Small and Medium Businesses have easy chances to collect on contracts from their Big Brothers’ Intercontinental Corporations by lengthy court cases, and finally when they (SMB) outsource or move any production to elsewhere trying to stay competitive globally these Small and Medium Businesses easily become a prey of weak international laws for intellectual property and anti damping protection, therefore it could be easily concluded that in the most recent times and under the most recent economic conditions the system of Social Order works better for the Large Transnational Corporations then it does for the Small and Medium Businesses, also the same formula could be well applied to how Global investment affects Large Investors and Small to Medium Investors; the lack of proper Personal Liability Laws and Regulations on National and International levels of Stock, Money and Commodity Exchanges benefit mostly the Large Investors by lowering substantially the security of investment for the Small and Medium Investors.
It may be noticed with great certainty that the Social Order of the so-called Capitalism is more in favor of Big Transnational Corporations and Large Investors then of their smaller brothers Small and Medium Businesses and Investors. Well, if such Social Order had worked well under a pro-supply conditions of a less connected and less developed world of the past, when under the most recent ongoing Globalization and ever rising Productivity such approaches are becoming quite contra productive by their fundamentals for a consistent economic growth and development; First, when Small and Medium Businesses and Investors use more than 75% in the US and the industrial production by the Transnational Corporation has been gradually moved and outsourced to China and elsewhere, Second, when Large Investors have gradually moved their investing to these Far Eastern Markets where the ROI and the economic prospective are mach advance then these in the US, Third, when in Global prospective there could be considered impossible for all regions in US and all countries in the World to enhance their Industrial Production to support in order and properly enhance their Fiscal Reserves for handling their ever getting older population required by the economics of Capitalism approach it is obvious that high interest inter-countries lending, the high rate securities controlled by the World Bank and IMF is beyond contra-productive for these underdeveloped economies , and Forth, may be the most important. The diminishing Earth resources and the disastrous Global Worming may not and cannot be addressed if the division between rich and poor people, regions, and countries is not overtaken by some new approaches in Economics differing from the Capitalistic one, in less developed and developing markets the usage of old cars, means of primitive heating, uncontrolled wood cutting, uncontrolled usage of pesticides and etc. may well destroy this Earth much faster then it is expected, to address these issues better system of Economics should be used that may accommodate and use flexible approaches to solve these.

So, even when the Capitalism or the Socio-Capitalism or the Communism systems of Economics which all represent the Social Order of the past claim to comprehensively deal with Market Economics it must be easy to prove that under the new Global market conditions non of these or any combinations of them could properly be called Market Economics: First, any economics of so-called Social Order is based on the philosophy of cyclical dialectic development that rely on the market economy to fix by itself when market fluctuations of recessions and upheavals occur which could have worked out in a pro-supply marketplace but experience real difficulties in a Global ever rising Productivity marketplace; the last Recession, the stalled industrial employees income diminishing Middle Class  for the last 10 years in the US, the setback in the European Union where maybe only Germany is doing relatively well and it is because of the German export to China of high-tech machinery, most of other countries are experiencing tremendous economic stress and are literally reducing their once succeeded higher standard of life: their social security, pension funds, Medicare instead of being enhanced and improved is being losing quality because of Fiscal shortages; then it comes China which succeeded in maintaining high growth and withstand the Recession of 2006 by expanding their own marketplace and export even under not very favorable economic conditions: China have done it and is doing it just because the flexibility with which the Chinese authorities use the economic instrument to maintain growth is very proper, the balance between social and infrastructural policies for employment and private sector, the prompt action when the real estate market was overheating last year by regulating second house lending matrix a developers specula regulations (2009), the constantly adapted policies of subsidizing exporters and certain economic areas (the photovoltaic equipment as an example), the policies of equity enhancement and values, and the etc. showed that the Chinese approaches are the best in the World now days, and such accomplishments showed to everyone that politics and economics under the most recent economic developments are two separate things to deal with, and showed that Karl Marx, Adam Smith, John Stuart Mill. And etc. are dead wrong in how the economy works under these most recent economic conditions of the Globalizing and high Productivity marketplace. And, second, no one ever really philosophically explained how the lock of resources and the Global worming could be dealt with under the Social Order conditions in an open marketplace, because never in History the people were given the opportunity or more exact had the abilities to produce more industrial goods then they consume (because by China, India, Brazil joining the Most Industrialized Economies of the US, Japan, Germany such capability for industrial goods is just very high) and at the same time the exhausting Earth resources are pushing toward Alternative Energies and Very High Technologies, and at the same time any countries but very few in the World rely on Industrial Production for their GNP, Fiscal Reserves and so on.

Even the Social Order systems of Economics in one way or the other proclaim the Market Economics as their best; none of them really deals with the most recent market fluctuations by using their established system of economics; so when under the pressures of the last Recession many governments took monetary and fiscal actions to stimulate their economies, which they still continue doing it, these actions include taking off debt from Banks and Large Financial Institution, partially acquiring businesses as it happen with GM, and printing money and quantitative easing as they are doing now; actually what the governments were doing is interfering with the market forces to prevent their economies from collapsing, and at least for moment they are succeeding, but what they are mostly doing is braking with the philosophy of cyclical dialectic economics of the trickle-down capitalism to not relying on the cyclical dialectic forces of the market to fix the mess of the consequences from the  last real estate overcapitalization that brought the Recession of 2006. The Keynesian approach of financial market interference that also was used in the Great Depression was well extended by the actions taken in this Recession to points well beyond Keynes imaginations and limits. When from Microeconomic prospective: “The cost-push theory basically emphasized the role of excessive increases in wages relative to productivity increases as a cause of inflation, whereas the demand-pull theory tended to attribute inflation more to excess demand in the goods market caused by expansion of the money supply.[1]” non of the conceptions can explain the total disruption consequence of extensive moving and outsourcing of industrial production and outflow of capital to other parts of the world. Neither Thomas Robert Malthus [2] nor John Maynard Keynes [3] neither most modern economists could or even like to explain an employment shortage not founded on economic development in a particular market, economy being replaced by a quickly globalizing marketplace where industrial production went so far out of hand so the question of balancing wages to employment to inflation is cut short of industrial employment which as it seems becomes in shortage not just because of the ever improving high technologies but even farther it becomes such because the majority of industrial employment is moved and outsourced indeed. Thus the questions from Micro and Macro Economic prospective are beyond existing logic in current economics. The question about inflation started relating more the value of the US Dollar to the Yuan, and the real costumer consumption when the costumer may not have a job in industrial production, and when in the same time GDP is founded predominantly on industrial production. Such, in an economic environment of exploding demand enforced by the new industrial powers in a marketplace of shortening industrial employment for the rest of the world, and reducing industrial employment for even some most developed industrial economies the questions about employment, Fiscal policies, distribution and redistribution of wealth are taking more power than ever if ever in History, so the questions become with depleting industrial production in the US marketplace and almost everywhere:

·        How to manage inflation without industrial production growth?
·        How to keep up and enhance consumption related growth when unemployment is high and may get higher?
·        How to manage Fiscal policies and Monetary quantities without industrial production growth?
·        What is this new world that changed one time from Farming into Industrial Production, and now what change is coming?
·        Why and what China is doing better to keep up high economic growth when the rest of the world crawls?
·        Why such a good world as the US Economy which with a few exceptions had grown for the last 100 years with at least 20% every 10 years in case has stalled for the last 10 (2000 – 2010)?
·        Why the hard-working and with the highest in the world productivity US workers are running short of jobs and how far it would go?
·        Etc.?

Actually, let me suggest what is happening and to where things in economy in the US and almost everywhere else may go to:
·        The Economics of trickle-down Capitalism may have to change to a Market related Economics of variances (I call) Quantum Economics which promotes the ideas of prompt, practical, flexible economic actions to prevent violent economic fluctuations such as the Last Recession of 2006, Inflation and deflation;
·        With the  self-adjusting  Economics gone, economic instruments/tools may be used “as it comes as it goes” approach of pure statistical principles;
·        The ideological approaches of Republicans against Democrats of how to run the economy may still be in place but will be much less intrusive to how the economy is run, because it maybe much clearer the principle system of the Science of Economics as a system of adjusting market fluctuations by using old and some new Instruments of Economics;
·        Social and Medicare expenses,  Infrastructural expenses along with

Subsidies for Alternative Energies may have to be considered more on the equity side of the governmental books not on the expenses side as it has been practiced until now, which also may have to be considered Instruments of Economics.
·        The Industrial production US Economy is about to continue changing into a Service Sector Economy, but the already succeeded equity including over all standard of life, Social and Medical Structures, Infrastructures, Educational System, relatively high valued Real Estate and the accumulated Capital may have to play important role in a more regulated Stock and other Exchanges for investment into less developed areas in the US as well Global by the Small and Medium Investors who now are handy caped by the hostile to them market exchanges;
·        The business laws and regulations may have to be enhanced for corporate, limited liability and trust management that must improve their security for lower rates “lend-ability” of Small and Medium Businesses, that must prompt more employment in different spheres of business;
·        The Government may have to start using better tools to subsidize and prompt growth; tax breaks, tax initiatives, employment stimulus, and etc. are part of these;
·        Internationally, the government may have to promote equal laws and regulations to these on the US market.

The Social Order of the Past may be changing into the Market Order of the Present and the faster these new developments are adapted by an economy the better this economy will stand globally. There maybe countries and economies losing their superiority over others and really hope the USA is not one of them. As stated above Personal Freedoms, Democracy, Liberties are not necessary bring and support the best and most advance economics because the game has changed, however the values of these succeeded extremely important accomplishments of Humanity must be preserved in any cause.
© Joshua Konov, 2011

[1]“Macroeconomics,” Microsoft® Encarta® Encyclopedia 99. © 1993-1998 Microsoft Corporation. All rights reserved.

[2]“Macroeconomics,” Microsoft® Encarta® Encyclopedia 99. © 1993-1998 Microsoft Corporation. All rights reserved.

[3]“Macroeconomics,” Microsoft® Encarta® Encyclopedia 99. © 1993-1998 Microsoft Corporation. All rights reserved.

Market Economy Under Rapid Globalization and Rising Productivity


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VOL 2, NO 9 (2015)




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Joshua Ioji Konov



Which are the worst current economics’ compatibility points to the present accelerating globalization and rising productivity? By Joshua Konov, 2012

  • Relying on high productivity as main economic/market agent for growth (1/f noise), whereas, many economic/market agents and tools should be considered “noise” to diversify business activities to maintain economic/market development

Someone has to lose money,” Guo Qigang, the plant’s general manager, said in a recent interview. “We’re a state-owned corporation, and it’s our social responsibility.”http://www.nytimes.com/2011/10/26/wor…

  • just as occurred decades ago with agriculture, the declining role in our economy of manufacturing, which over the last half-century is down from 32 percent of the work force to 9 percent, will continue. Let’s also recognize that retreating into protectionism would turn a win-lose into a lose-lose.

Tallying the Toll of U.S.-China Trade online.wsj.com Many Americans believe low-priced Chinese imports kill U.S. factory jobs. Most economists say the benefits of the trade far outweigh its costs. But new research suggests the damage to the U.S. has been deeper than these economists have supposed.

A typical General Motors worker costs the company about $56 per hour, which includes benefits. In Mexico, a worker costs the company $7 per hour; in China, $4.50 an hour, and in India, $1 per hour. While G.M. doesn’t (yet) achieve United States-level productivity in China and India, its Mexican plants are today at least as efficient as those in the United States.

‘In this perspicacious and persuasive book, Tom Palley shows how Conventional Economic Thinking led ultimately to the disaster of the Great Recession and how it is now threatening to culminate in the Great Stagnation. His thoughts on how to avoid that and how to recover are compelling and important.’ Clyde Prestowitz, President, Economic Strategy Institutehttp://paper.li/joshuak2077/1329070660

  • Low economic/market security founded on the shady business practices and lack of rule of law that gives major advantage to the large transnational corporations, and grieving disadvantages to the small and medium businesses

Small Business Majority and the American Sustainable Business Council reports that’s not the case. On the contrary, 78 percent of small-business owners in the study think regulation is important to help level the playing field with big business, and 76 percent believe existing regulations should be enforced.http://paper.li/joshuak2077/1329070660#

Whenever government wants more power it ignores the regulations that are in place, and then everything goes to hell. I don’t believe in a lot of regulation but I do believe you’ve got to have the proper structure in place to minimize the conflicts of interest involving greed and corruption. But regulations are not worth the paper they are written on if they are not enforced http://paper.li/joshuak

  • High interest rates lending to the small and medium businesses and investors that’s is accumulative in short term cyclical adjustments, and dysfunctional in another way

Struggling euro-zone economies like Greece, Portugal, Spain and Italy cannot cut their way back to growth. Demanding rigid austerity from them as the price of European support has lengthened and deepened their recessions. It has made their debts harder, not easier, to pay off.http://www.nytimes.com/2012/02/18/opi…

  • Industrial production as a main and fundamental economic/market agent for fiscal reserves that could have worked-out short term downturns, whereas, well exampled by the last 2007-09 Recession, the downturns are neither short, nor moderate, and could be followed by long rebuilding term

a study released on Wednesday found that entry-level wages for students who graduated from college in 2010 was lower than a decade earlier, after adjusting for inflation.http://economix.blogs.nytimes.com/2011

Technology and cheaper goods from overseas have replaced many of the not-especially-creative professions. A tax accountant loses clients to TurboTax; many graphic designers have been replaced by Photoshop; and the small shopkeeper by Home Depot, Walmart or Duane Reade. Though a lottery economy is valuable to various industries, the thought of an entire lottery-based economyhttp://www.nytimes.com

  • Business cycles as main and fundamental economic/market agent for adjusting economic/market redundancies, whereas the economies/markets fluctuations are less predictable and cycles progressively untraceable, the economic agents and tools should be used much more random “as it comes, as it goes, instead

Companies are focused on jittery consumer confidence, an unstable stock market, perceived obstacles to business expansion like government regulation and, above all, swings in demand for their products.http://www.nytimes.com/2011/09/10/

It is encouraging to see the Bank of England, the Bank of Japan, and the Federal Reserve all working to raise growth through stimulus primarily focused on the domestic economy. (While Japan’s central bankers would surely be happy to see the yen fall, they’re not, for the moment, following Professor Ben Bernanke’s advice to print yen and buy foreign exchange.http://paper.li/joshuak2077/1329070660

(VIDEO: Watch From Davos: Is Capitalism Failing? A TIME Discussion With the World’s Top Business Leaders) Third, and most importantly, the evidence is mounting that the austerity-led reform programs are not working to help countries exit the crisis. Take a look at Portugal Read more:http://business.time.com/2012/01/31/w…

  • The trickle-down approach of capital supported by political and fiscal economic/market agents that in the time of China and rising productivities carries on and accelerated wealth concentration into progressively the very few, in large disadvantage to the middle class in national plan, and less developed economies/markets in global such

 President Obama issued his sharpest warning yet about the German-led solution. He said the focus on long-term political and economic change was well and good, but emphasized that failure to react quickly and strongly enough to market forces threatened the euro’s survival in the coming months Unlike ·http://www.nytimes.com/2011/12/11/wor…

Lacking such evidence, the obvious conclusion seems to be that economic growth, and employment growth, would have been significantly stronger over the last two years without government cuts. But I’d invite readers to point us to any research that bears on the question, one way or the other.http://economix.blogs.nytimes.com/201…

  • Short term investment and capitalization by business practices prompted by the high interest rate lending, and the corporate structures business practices of short term profit and distribution
  • Practiced corporate limited liability laws mainly serving large transnational corporations thus giving to these competitive advantages and lowering market security over all

Large corporations can often squelch their competition. They can minimize their costs by dumping waste products into the environment, contributing to pollution and global warming. They can use their profits to buy political influence. If they don’t like the regulatory policies of one nation-state, they can simply shift their operations to another.http://economix.blogs.nytimes.com/201…

  • Hurting the earth environment short term investment and capitalization business practices, by the high interest rate landing, by the shady business, by the lack of liability and accountability transnational corporations, by the deepening devising between poor and rich people and countries, by the imposed by the developed countries and the international organizations: WB, IMF, WTO austerity and restructuring measures on the less developed and developing economies

Waning Support for Wind and Solar By DIANE CARDWELL Wind and solar companies say they need more government support to be competitive. But in Washington, there’s little enthusiasm for more subsidies.

  • The governments growing inept involvement in finances and business actually making the gap between rich and poor wider

The currency intervention also functions as a massive inequality-creation machine. U.S.-based behemoths, which own or use many of those exporting Chinese factories, benefit, as do their shareholders. And because more than 90 percent of U. S. stocks are owned by the wealthiest 20 percent, the spoils are disproportionately concentrated at the top

  • The bureaucratization of economic/market agents well presented in the European Union VAT and the EU funds for development that prompt corruption, politicization, and injustice

The campaign group farmsubsidy.org says there are 1,212 farm subsidy millionaires across Europe, including 268 in Germany, 174 in France and 29 in Britain. Charities such as the RSPB and corporations such as Nestle are believed to receive more than £1m a year. The Queen qualified for £473,500 in farm aid in 2009 for Sandringham farms.

Economy: Rich Countries’ Farm Subsidies Benefiting Royals by Julio Godoy (Paris)Friday, August 06, 2010 Inter Press Service Subsidies for agriculture in the industrialised countries of the world grew again in 2009, benefiting the largest companies and land owners, such as Prince Albert of Monaco and Queen Elizabeth of Britain.http://www.globalissues.org/news/2010

  • The lack of laws preventing market and commodity exchanges from shady transactions and activities that gives market advantage to the large investors, and greatly hurts the small and medium investors

JPMorgan Sees Clients With Less Than $100K as Unprofitable bloomberg.com – By Laura Marcinek – Tue Feb 28 16:54:17 GMT 2012 Enlarge image Jamie Dimon Jamie Dimon, chief executive officer of JPMorgan Chase & Co., center, at the World Economic Forum (WEF) in Davos, Switzerl…

  • Debit/Credit finance accounting, which because of the low economy/market security keeps very tight economic/market development, whereas the transnational corporation are expected to expand business and raise productivities attracted by lower taxes and unregulated labor marked: the transnationals not only raise money on the public market exchanges but also are credited on very low interest rate, however under these new conditions transnationals cannot maintain or expand industrial production any closer to the global markets need of employment

Mr. Fillon “made clear it had not been his intention to call into question the U.K.’s rating but to highlight that ratings agencies appeared more focused on economic governance than deficit levels,” Mr. Clegg’s office said.http://www.nytimes.com/2011/12/17/bus..

  • The pro-supply a priory economics cannot maintain balanced market demand-to-supply under this new emerging markets environment

The economists that I spoke to estimated that China’s currency policy has cost the U.S. between 200,000 and 3 million jobs. Of course, the wide range suggests that these are little more than educated guesses. But a broad picture does emerge. U.S. manufacturing employment has fallen by around 6 million over the last decade. If China had allowed its currency to adjust naturally, life might be much b

by Joshua Konov, 2012 joshua.konov@gmail.com

SEE http://mpra.ub.uni-muenchen.de/34588/1/MPRA_paper_34588.pdf

Association For Heterodox Economics 17th Annual Conference 2-4 of July,2015 Presentation by Joshua Konov


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 a 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 partially by the investors thus limiting the issuers (could be governments or corporations) liability; however, in cases like “Bond holders 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 setup 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 over all easier than these in the EU, that some economists consider a 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 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 21th 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.

The Capitalism uses foreign direct investment by transnational corporations to raise productivity and bring return on this investment that could be only achieved through industrialization, and the global accounting system is setup 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 societies 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 currently 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