Solvere, Cognose LIM Swee Keng (Sep 22, 2008)
http://www.cts-ideas.com/ tab Cognose.blogspot.com
Dynamite Economy 3 – Summary for Deadly Urgency
What we see today, collapsing, chain collapsing of financial institutions, like a dominos. The root causes have been discerned as early as 2001,[1] since then, time, scale, together with cause, effect, wrong solutions and resolutions have been detailed.
Financial industries depends on the economy at large, this reflect also the economy at large.
By 2000, innovation came to a halt, economy, predominantly technology-led economy definitely come to stagnation. No new, significant industries has been racing for listing, investment bankers face over-capacity.
However, Over Abundance Wealth (OAW) has been cumulated that find no profitable ventures. Negative interest rate and war were predicted then. So they were.
Negative Interest rates are fabrications.
Fabrication has no limit, so free wheeling of fabrication escalated till stand stark as most profitable, biggest employers, in 2007.
To inject Well Governed Funds to Free Private Hands, in the market flooded with OAW, is analogous to inject sugar into diabetics. It will clog the arteries, impair physical body, and caused stroke, paralyze. Again it has been forewarned. It was taken note, but not acted adequately.[2],[3],[4] The situation today, is the outcome – parallel to The Great Depression.
The said reference to Japanese similar rescue in the 1990 by her Financial Service Minister of State Yoshimi Watanabe, is irrelevant. Unlike America, Japanese was a smaller economy and did not lead all the major fields of industries. The funds latter were quickly absorbed into new immense industries - the internet, mobile communications expansions - the most rapid technology-economic expansion in history. There was no impact to commodities prices that sink the economy, as we see today.
Free Private Hands, is subjected to no governance, no obligation to facilitate the bigger picture. When they are over-endowed with OAW, they move from financial instruments (which are not factor of production) to commodities (key factors of productions). When bank call for liquidity, OAW in private hands has no obligation to response, this is Credit Crunch in OAW. This is worse than stagflation, because stagflation is merely a phenomenon spanning private, public sectors. While OAW overloaded in private, ungoverned hands, is a dynamite-clogged arteries, clogging every passage of economic activities – material, transport, communication.
Many drew parallel to The Great Depression.
No one has mentioned of its sequel – WWII.
This may be because after two major campaigns, no one can foresee mighty power will commit another.
However, today real weapons and virtual tools while multiplied in power, are miniaturized in size and within the access of private, many faceless people. Without visibility, governance, accountability, the damage will be much bigger, wide spread, unpredictable, uncontrollable. The damage will be far beyond the sequel of The Great Depression – WWII.
With globalization, with weaken, poorer governments, the outcome will be worse than WWII.
So before we foolishly empty nations’ vaults, weaken governments, we must act to prevent such tragedy from happening.
Here, practical solutions, that take priority to address the nature of human is presented, supported by technology, invention, apply with philosophical depth.
To mop up the OAW from Free Private Hands is the right approach.
To create new industries, in innovative way, immediately implementable is prescribed.
The outcome will be to bring
1. millions urbanities and billions rural farmers busy creating wealth,
2. to keep them occupy, so that even their insatiable nature is fulfilled, because
3. their vigor is engaged in meaningful, profitable engagement.
The Fed, the Treasuries may think such fundamental approach take too long, but the correct treatment for all serious ailments took long time, arduous effort, patient to heal.
Taking any quick approach, like pouring well govern funds into OAW market, is like helicopter dropping of dynamite into wild fire, when even the last plant has lost water - dried up. The outcome is obvious, destruction, violent destructions. You see your delivery, but others experience the death, burnt and torn bodies, while no one actually is saved – the spread ensure no one can escape, no spot for the pilot to land!
But if you understand human nature, once a good, effective policy is conceived, the market confidence swing before the policy is fine tuned, approved, implemented. People start to move, faster, more decisively, than legislature, executive branches – when there is profit to make.
So the Fed and Treasuries, together with world leaders must improve not just their understanding of economy, also
http://www.cts-ideas.com/ tab Cognose.blogspot.com
Dynamite Economy 3 – Summary for Deadly Urgency
What we see today, collapsing, chain collapsing of financial institutions, like a dominos. The root causes have been discerned as early as 2001,[1] since then, time, scale, together with cause, effect, wrong solutions and resolutions have been detailed.
Financial industries depends on the economy at large, this reflect also the economy at large.
By 2000, innovation came to a halt, economy, predominantly technology-led economy definitely come to stagnation. No new, significant industries has been racing for listing, investment bankers face over-capacity.
However, Over Abundance Wealth (OAW) has been cumulated that find no profitable ventures. Negative interest rate and war were predicted then. So they were.
Negative Interest rates are fabrications.
Fabrication has no limit, so free wheeling of fabrication escalated till stand stark as most profitable, biggest employers, in 2007.
To inject Well Governed Funds to Free Private Hands, in the market flooded with OAW, is analogous to inject sugar into diabetics. It will clog the arteries, impair physical body, and caused stroke, paralyze. Again it has been forewarned. It was taken note, but not acted adequately.[2],[3],[4] The situation today, is the outcome – parallel to The Great Depression.
The said reference to Japanese similar rescue in the 1990 by her Financial Service Minister of State Yoshimi Watanabe, is irrelevant. Unlike America, Japanese was a smaller economy and did not lead all the major fields of industries. The funds latter were quickly absorbed into new immense industries - the internet, mobile communications expansions - the most rapid technology-economic expansion in history. There was no impact to commodities prices that sink the economy, as we see today.
Free Private Hands, is subjected to no governance, no obligation to facilitate the bigger picture. When they are over-endowed with OAW, they move from financial instruments (which are not factor of production) to commodities (key factors of productions). When bank call for liquidity, OAW in private hands has no obligation to response, this is Credit Crunch in OAW. This is worse than stagflation, because stagflation is merely a phenomenon spanning private, public sectors. While OAW overloaded in private, ungoverned hands, is a dynamite-clogged arteries, clogging every passage of economic activities – material, transport, communication.
Many drew parallel to The Great Depression.
No one has mentioned of its sequel – WWII.
This may be because after two major campaigns, no one can foresee mighty power will commit another.
However, today real weapons and virtual tools while multiplied in power, are miniaturized in size and within the access of private, many faceless people. Without visibility, governance, accountability, the damage will be much bigger, wide spread, unpredictable, uncontrollable. The damage will be far beyond the sequel of The Great Depression – WWII.
With globalization, with weaken, poorer governments, the outcome will be worse than WWII.
So before we foolishly empty nations’ vaults, weaken governments, we must act to prevent such tragedy from happening.
Here, practical solutions, that take priority to address the nature of human is presented, supported by technology, invention, apply with philosophical depth.
To mop up the OAW from Free Private Hands is the right approach.
To create new industries, in innovative way, immediately implementable is prescribed.
The outcome will be to bring
1. millions urbanities and billions rural farmers busy creating wealth,
2. to keep them occupy, so that even their insatiable nature is fulfilled, because
3. their vigor is engaged in meaningful, profitable engagement.
The Fed, the Treasuries may think such fundamental approach take too long, but the correct treatment for all serious ailments took long time, arduous effort, patient to heal.
Taking any quick approach, like pouring well govern funds into OAW market, is like helicopter dropping of dynamite into wild fire, when even the last plant has lost water - dried up. The outcome is obvious, destruction, violent destructions. You see your delivery, but others experience the death, burnt and torn bodies, while no one actually is saved – the spread ensure no one can escape, no spot for the pilot to land!
But if you understand human nature, once a good, effective policy is conceived, the market confidence swing before the policy is fine tuned, approved, implemented. People start to move, faster, more decisively, than legislature, executive branches – when there is profit to make.
So the Fed and Treasuries, together with world leaders must improve not just their understanding of economy, also
the very purpose of their function – wealth creation
only wisdom will bring peaceful, progressive, prospering world
while brute force, foolishness
using wealth to destroy wealth creating engine
resulting in depression, retardation, poverty of even the richest
Choose the sections relevant to save the world from worse than WWII.
Dynamite Economy 3 Summary for Deadly Urgency
Dynamite Economy 3.1 Magnitude
Dynamite Economy 3.2 Cognized before Happening
Dynamite Economy 3.3 What has Happened
Dynamite Economy 3.4 How Faults Initiate?
Dynamite Economy 3.5 Who is at Fault?
Dynamite Economy 3.6 Wisdom from History
Dynamite Economy 3.7 Where can we be heading
Dynamite Economy 3.8 Can Nations inject Sovereign Funds to rescue Enterprises?
Dynamite Economy 3.9 Key Characters of Correct Policy
Dynamite Economy 3.10 Importance of Human Motivation
Dynamite Economy 3.11 Approach - Finance Industry (relevant to education, health care, insurance…
Dynamite Economy 3.12 Approach – Essential Commodities
Dynamite Economy 3.99 Deadly Urgency
[1] “Real Economy, Realities of Economy, Economic Realities” April 2001, collected in “Cognose – Recover the Lost Key to Infinite Wisdom.” ISBN-9810-513757
[2] “Dynamite Economy” Aug 13, 2007, http://www.cts-ideas.com/G0813DynamiteEconomy.pdf
[3] Sep 9, 2007, after delivered above warnings, I have encouraged Steve Forbes, on a luncheon in Raffles Hotel, Singapore, that America must lead to create new industries.
[4] “Dynamite Economy - Proliferation, Wrong Solutions, Resolutions” , Nov 8, 2007 http://www.cts-ideas.com/G1108DynamiteEconomyProliferation.pdf
[2] “Dynamite Economy” Aug 13, 2007, http://www.cts-ideas.com/G0813DynamiteEconomy.pdf
[3] Sep 9, 2007, after delivered above warnings, I have encouraged Steve Forbes, on a luncheon in Raffles Hotel, Singapore, that America must lead to create new industries.
[4] “Dynamite Economy - Proliferation, Wrong Solutions, Resolutions” , Nov 8, 2007 http://www.cts-ideas.com/G1108DynamiteEconomyProliferation.pdf
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