https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/ Recent content in Finance Ratios on Superphysics Hugo en Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-01/ Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-01/ <p>The Trade Ratios are in our DSIT Model.</p> <table> <thead> <tr> <th>Trade Ratios</th> <th>Description</th> </tr> </thead> <tbody> <tr> <td>GR</td> <td>the rise or fall in interest rates as the society gets wealthier. A rising slope may indicate the dominance of the borrowers, as a sign of liberal morals</td> </tr> <tr> <td>GN</td> <td>the rise or fall in inflation as the society gets wealthier. A rising slope may indicate the dominance of speculation, as a sign of liberal morals</td> </tr> <tr> <td>GD</td> <td>the rise or fall in public debt as the society gets wealthier. A rising slope indicates debt-driven GDP Growth, as a sign of liberal morals</td> </tr> <tr> <td>C1 : C2 : C3 : C4</td> <td>The ratios of a currency against 3 currencies of its trading partners.</td> </tr> <tr> <td>GIt</td> <td>the rise or fall in imports as the society gets wealthier. A rising slope may indicate a service country</td> </tr> <tr> <td>GXt</td> <td>the rise or fall in exports as the society gets wealthier. A rising slope may indicate a manufacturing or agri country</td> </tr> </tbody> </table> https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-02/ Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-02/ <!-- In the earlier chapters, we explained that the flaws in money: - it becomes a single point of failure when money stops circulating - it only shows quantitative information and has no qualitative information We solve the shortcomings of money by introducing grain-based valuation which allow trade or donations in kind. This will then allow people to transact with each other even when money is not available. The current solution of Modern Economics to the lack of money is to lower interest rates and to simply print more money, an effect known as quantitative easing. Quantitative easing adds to the money supply by returning the money lent by bondholders, by buying those bonds. Bondholders lent that money to the government because the government is supposed to be the safest debtor. This forces those bondholders to invest that money elsewhere such as in: - real estate - stock market - tech startups - stock buybacks (in effect, the companies give back the money of their investors) This was supposed to create inflation failed because of 2 mistakes of the banking system, ultimately caused by the profit maximization doctrine of Neoclassical economics. --> <p>Why are interest rates so important in Neoclassical Economics, but not so important in Classical Economics?</p> https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-03/ Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-03/ <p>The GN ratio is the rise or fall in inflation as the society gets wealthier. A rising slope may indicate the dominance of speculation, as a sign of liberal morals</p> https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-05/ Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-05/ <p>The Currency Ratio is the ratio of a currency against 3 currencies of its top trading partners.</p> https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-04/ Sun, 03 Jun 2018 00:00:00 +0000 https://www.superphysics.org/social/economics/principles/part-4/chapter-07/section-04/unit-04/ <p>The GD ratio is the rise or fall in public debt as the society gets wealthier. A rising slope indicates debt-driven GDP Growth, as a sign of liberal morals.</p>