Tuesday, March 24, 2009
Ezreen Emira's Economic Theory.
I've read one of Nami articles about steep raising price in Malaysia.And I don't know somehow he had mentioned about a theory--which I never realized when I was saying it--my Ezreen Emira Economic Theory,simply Triple E.
This Triple E Theory,for me it's just a random observation,but somehow I feel it's make sense.
The theory is:-
1.The value of money will drop at least 30 percent 10 years from now.For example,C$100 right now were just C$70 in 1999.
2.Since the money's value dropped,the price will automaticly raise to bring balance to the drop.
It was 1950s in Indonesia,according from Citra's father,they still can get things to buy with 1 rupiah.But right now it's Rp6,500 equals to C$1.Why value of money dropped significantly?What it takes to re-structure your money's value?
I'm agree with Nami that paper money that we hold right now are not valuable.It's just represents the capability to exchange.What's is the different between C$1 and C$100 notes?Or RM1 and RM50 notes.It's still the same--paper.What it takes to say this paper is more valuable than other paper?It's still the same thing--it's a paper.
If you buy an ice-cream--you'll hands up with ice-cream seller with papers.In the same time if you buy a car--you'll still hands up with papers.Is ice-cream is same value as car?Of course it's not.It's just a representation of your capability.It's not a comodity anyway.
Some says that we should return back into gold dinar system.Yes,it's inflation proof,yet,how many gold and silver you have to dig for humans to use?And how many place on Earth to be destruct for the sake of our economy?
According from CIA Factbook,it was 142,000 tonnes of gold has been mined since the beginning of civilization,which it's estimated around US$4.5 trillion dollars.Compared with huge amounts of this paper currency which values US$54.5 trillion dollars,I believe this amount of gold is just a drop in the ocean to solve this inflation and global economic crisis.Definitely you can't raise the gold price to be equal with paper money,because the price of money will be so expansive that no one could ever effort to get a penny,if we lay our money into gold standards.Because in order to balancing up the value of money with value of gold(since we pegged up with gold).
But over-printed money can causing the value of money to drop.Of course,more people to be born everyday.It was estimated 7 people per second was born in this world.More people requires more money.And the government needs to print more money for its people and to ensure the people got buying power to buy goods and services.So,when money been printed not according with capasity of population growth,value money can be dropped.
Bailouts and government backing's to some capitalist faggots is another factor the value of money will be dropped.Bailouts requires more money and if those taxpayers money been used to bailing some troubling company,then this cycle of vicious will still carry on.People still need to pay taxes and parking ticket,which government will charge,in the meanwhile the government using our money for some stupid faggots who loves to steal our money.So the governments' problem-solver?Print more money.Let the value dropped and let the people die.Because this capitalist pay more to the government,isn't it?
In my study case in Russia,the rubles value dropped significantly.In Soviet 1 ruble are equivelant to 1,000 Russian rubles right now.So,which money is valuable?Soviet 1 ruble or Russian 1,000 rubles?The answer is,the value is same.So is that Soviet rubles are more valuable than Russian rubles.Definitely,by thousand times valuable.
Why currency in Zimbabwe is hideously troubled with inflation?Because the supply of money is too much compared with the demand.The high supply happens to fund Mugabe's regime,to bail some of Mugabe's crony,but overprint papers causing the price to drop.Do you believe three eggs in Zimbabwe worth 100 billion dollars?
The best thing to solve this problem is let the people hold the money and decide how much money to be printed.If governments ever care about some capitalist faggots to be saved and need more money to be printed,then the value will drop.And the price will raise.It's automatic.So,are you waiting til the time when we buy eggs worth 100 billions?
Let us kick this stupidity out of frame.Let us know ourselves that the main culprit of economic crisis is because of capitalism lost its foundation.The world should ready for fair and square of economy.That's why I told people that Barack Obama's bailout strategy somehow will fail.Millions,billions or trillions,if you keep printing money for bailing out the trouble company from bankruptcy,then be prepared that US dollar will dropped significantly.And why peg your money to US dollar?
Economist John Maynard Keynes said that "Governments should spend money they don't have may have saved capitalism".In the same time ceteris paribus (or equality between supply and demand) keep controlling the value of money.What happen in the world right now is because capitalism greed that controls each and every penny that we have,and since they want more,the governments printed more and more,and the price drop,the price raising up,the people suffers,and they got money to burn.
Labels:
global economy crisis,
john maynard keynes
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5 comments:
I somehow tak trust dengan Keynes.Dia tersangatlah kapitalisnya.
His idea about multiple spendings theory tu,memang tak boleh pakai.
According with his theory,kalau kita bina,let's say lapangan terbang baru la,and then dengan membina tu,kita memberi peluang pekerjaan kepada buruh yang membina,kemudian memberi pekerjaan kepada teksi,tukang sapu etc.
Dan apabila orang datang berbelanja di lapangan terbang tu maknanya dia telah invest dalam pembinaan lapangan terbang itu.
Persoalannya,berapa ramai yang nak travel tengah2 ekonomi gawat ni?Malaysia?Nak lawat mende?Turun-turun billboard Zoom Malaysia muka tiga monyet bodoh(Dollah,Najib,Azalina).Tak caya u datang Malaysia.Tengok sendiri muka monyet-monyet ni bersepah.Buat pelancong takut je nak datang.Apa la,letak la muka model2 cun sikit.Cacat permandangan jalan raya.
Nami,itu bukan salah Keynes.Itu salah Najib letak muka dia kat depan airport :P
Anyway I tak tau la.Somehow Keynes better dari Milton Friedman.Friedman capitalist habis.
Mungkin bagi Keynes itu macam chain reaction la.Kalau tak bina lapangan terbang takde la pekerjaan kat kawasan tu.Sama jugak,kalau orang tak bina jalanraya macam mana nak bina kilang kereta.Sort of like that la.
For Keynes infrastructures are important for economy.Tapi kat Malaysia infrastructurenya harga mahal tapi cepat reput pasal ada 2-3 kerat orang swindle people's money.Keynes theory tak salah,orang yang melaksanakan yang salah.
Somehow kalau Malaysia kalau guna theory Marxist pun,kalau korup tak boleh buat apa.You tengok North Korea,guna Marxist theory pun tak boleh buat apa jugak.Teruk jugak.
For me ceteris paribus between permintaan dan penawaran tu kena balance.I guess you belajar ni dalam Ekonomi Asas KBSM right?
Oh,I almost forgot,you hate so much with KBSM words.hehe!
Now..
Where do we begin to stop these (especially ours)bailing games?
I've been so frustrated with our right side of the seats in the parliament for so long that I've been numbed with pain.
1998 - Time when I graduated = Economic recession.
Now - Even worst economic situation with prices of goods rising exponentially.
The years of corruptions now showing true 'colours' or ugly outcome/result.
"apsal internet connection kat utmkl slow sangat"
3 biji telor ayam = $100 bilion?
mahal nyer duit diorg...
kalu kat sini guna beli telur
7 keturunan pun x habis...
ape - ape hal pon Najib dah selamat pegang kuasa sebagai Presiden UMNO...
hujung bulam 6 ni Dia dah confirm jadi PM....
maka makin huru - haralah jadinya negara malaysia yang aman permai ini..........
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