“Tolong jelasin masalah resesi dong”

recession-2008(Conversation as of 19 October 2008)

yyyy(9:43:38 PM): btw tlg jelasin masalah resesi dong

yyyy(9:43:43 PM): gw ga ngerti nih hehehe

yyyy(9:43:47 PM): lo kan pasti jago

Dhirosattha (9:44:40 PM): resesi ekonomi scr umum? ato yg sekarang?

yyyy(9:47:25 PM): yg sekarang

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Relation between Vocational & Computer Money and Reps & Dem leadership

ancient-us-moneySo often economy and politics converge. It is political system that makes money, the blood of economy, possible; without a stable system of governing a country, no paper would be able to assume a value beyond its production cost. And it is politician who can make policies that affect the economy through laws, taxes, regulation, levies.

Now, the US have a Democrat president, what will this mean to the economy? Specifically, how will this effect the perceive balance in Wallstreet’s mind between Vocational money and Computer money? And what is the real shift between computer money and vocational money? Click here to understand more about vocational and computer money

If market sentiments could be a guide, this is an estimation on the perception of how such balance will shift:

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Vocational money and computer money

By: Sendy Filemon, 31 October 2008

Question, what is the underlying, most basic premise of current global economy system?

Perpetual growth

What prove to this answer?  The pervasive application of interest rate to borrowed capital. An interest means that the borrower will somehow get more money in the future than what he had borrowed today. Without growth, it’s impossible to expect that the borrower would be able to do such a thing. We have been so used to growth, so expectant of growth, that we often forgot that without growth, interest is impossible.

Ok, since this is pervasive, everyone who borrows money needs to pay an interest, what is the implication of applying a perpetual growth assumption into an economic system?

As some people had mentioned: In an economy system based on perpetual growth – There’s only 3 paths: actual increase in production, inflation, or bankruptcy.

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