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Date: 2018-12-18 Page is: DBtxt001.php L07-ECONOMY-MONEY-LIQUIDITY

ECONOMY
MONEY / LIQUIDITY

A key feature of the classic economic system ... essential ... but a problem and maybe a solution
#10 ECONOMY / MONEY / LIQUIDITY
A VITAL LUBRICANT .. BUT NOT THE ENGINE
GO TOP
.
FINANCIAL CAPITAL PHYSICAL CAPITAL INTANGIBLE CAPITAL
.
THE FINANCIAL ECONOMY
INVESTMENT BULLS
A bull market has been good for investors
STOCKS UP
Stock market has been spectacular
MONEY DOWN
... but the buying power of the US$ is way down
WAGES FLAT
and wages flatlining while productivity grows.
GDP -v- GPI
While GDP is up, progress (GPI) is flat
Profits, Stock Prices and GDP measure success in the modern economy
  • The financial economy has grown robustly since the 1980s.
  • Amazing innovation has been deployed mainly to improve profit performance.
  • The huge expansion of financial wealth is excessivly concentrated.
  • Concentration of economic power by both individuals and corporate organizations has come at the expense of everyone else.
  • A lot of people are 'mad as hell' and don't intend to take it any more.
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THE REAL (PHYSICAL) ECONOMY
BUILDINGS INFRASTRUCTURE STEEL MFG. CEMENT MFG. SHIPPING RAILROADS
Buildings / Infrastructure / Industrial Processes / Transport
  • Modern engineering and technology is deployed and exploited to improve profit performance.
  • Rather little is is deployed to make society and the world a better place.
  • The modern 'real' economy is pretty amazing, but not so much in the news (Western news, that is).
  • Many of the more amazing things are going on in the Middle East (e.g. Dubai) and Far East (China).
.
THE INTANGIBLE ECONOMY
KNOWLEDGE EDUCATION GOVERNMENT SECURITY CULTURE RELIGION
Many of these important things make life worth living
  • These elements are very important, but metrics for their value are undeveloped.
  • The intangible economy is a very important contributor to quality of life.
  • Will remain at the margin as long as the dominant performance metric is mainly profit.
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MONEY / LIQUIDITY
Stock market Intangible value Money supply World GDP growth US GDP growth GDP v GPI
Without money / liquidity, the system stops working ... or never gets started
  • The money system is very powerful, and difficult to understand.
  • Some commonly held beliefs are wrong.
  • It is unclear if any of the proposed better systems would be any better.
Site Navigation
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
MONEY / LIQUIDITY
A VITAL LUBRICANT .. BUT NOT THE ENGINE
Open L070-ML-MONEY-LIQUIDITY
EXCHANGE / TRADE
IMPORTANT PART OF OPTIMIZING ECONOMIC PERFORMANCE
Open L070-XT-EXCHANGE-TRADE
THE STATE OF ECONOMIC CAPITAL
GROWTH OF ECONOMIC CAPITAL ON ITS OWN IS A FAILED METRIC
Open L0700-CS-EC-ECONOMIC-CAPITAL
THE POSITIVE CONTRIBUTION OF ECONOMIC CAPITAL
ECONOMIC CAPITAL ENABLES SOCIAL AND ENVIRONMENTAL PROGRESS
Open L0700-PC-EC-ECONOMIC-CAPITAL
CREDITS and DEBITS of VALUE
ALL THE DIMENSIONS IMPACTING ALL THE CAPITALS
Open L070-CD-CREDITS-and-DEBITS-of-VALUE
DEBITS and CREDITS of VALUE
IMPACTING ALL THE CAPITALS
Open L0700-CD-CREDITS-and-DEBITS-of-VALUE
CORPORATE PROFIT
THE MOST IMPORTANT GOAL FOR DECISION MAKERS IN BUSINESS
Open L0700-SS-PROFIT
CAPITAL MARKET PRICES
THE MOST IMPORTANT GOAL FOR MOST INVESTORS
Open L0700-SS-CAPITAL-MARKETS
.
Site Navigation
ECONOMY / MONEY / LIQUIDITY
PROFIT LESS IMPORTANT THAN PEOPLE AND PLANET
Open L07-ECONOMY-MONEY-LIQUIDITY
MONEY / LIQUIDITY
A VITAL LUBRICANT .. BUT NOT THE ENGINE
Open L070-ML-MONEY-LIQUIDITY
EXCHANGE / TRADE
IMPORTANT PART OF OPTIMIZING ECONOMIC PERFORMANCE
Open L070-XT-EXCHANGE-TRADE
THE STATE OF ECONOMIC CAPITAL
GROWTH OF ECONOMIC CAPITAL ON ITS OWN IS A FAILED METRIC
Open L0700-CS-EC-ECONOMIC-CAPITAL
THE POSITIVE CONTRIBUTION OF ECONOMIC CAPITAL
ECONOMIC CAPITAL ENABLES SOCIAL AND ENVIRONMENTAL PROGRESS
Open L0700-PC-EC-ECONOMIC-CAPITAL
COSTS AND EXPENSES
IMPACTING ALL THE CAPITALS
Open L0700-CX-EC-ECONOMIC-CAPITAL
CORPORATE PROFIT
THE MOST IMPORTANT GOAL FOR DECISION MAKERS IN BUSINESS
Open L0700-SS-PROFIT
CAPITAL MARKET PRICES
THE MOST IMPORTANT GOAL FOR MOST INVESTORS
Open L0700-SS-CAPITAL-MARKETS
.
Economic and financial metrics going up ...

US GDP growth

World GDP growth

Stock market

Intangible value

Money supply

Balance sheet cash
... but social metrics have flatlined or worse for several decades ...

Value of $ down

Value of $ down
The buying power of money has declined dramatically over time ... likely because of a systemic flaw in how the money system works

GDP v GPI

Wages flat
... and environmental trends are catastrophic
CO2 concentration

Temp v CO2

Sea level rise

CO2 emissions

TVM CRYPTO FUNDING
A TVM funding initiative to help fund social and environmental progress
Open L070-TVC-TRUE-VALUE-COIN
FINANCIAL CAPITAL
The money denominated component of wealth
Open L0700-CS-EC-FC-FINANCIAL-CAPITAL
Financial Goodwill
The value attributed to profitability in excess of the historic accounting cost
Open L0700-CS-EC-FC-Financial-Goodwill
Money
Money ... a store of value
Open L0700-CS-FC-Money
Securities
Financial instruments of all sorts
Open L0700-CS-FC-Securities
FINANCIAL
The conventional system of accountancy
Open L0700-MA-FINANCIAL
FINANCIAL ACCOUNTANCY
The conventional system of accountancy
Open L0700-MA-FINANCIAL-ACCOUNTANCY
Alternative Currencies / Complementary Currency
Sometimes referred to as Alternative Currency, LETS, etc.
Open L070-ML-MONEY-LIQUIDITY
Alternative Currencies / Complementary Currency
Sometimes referred to as Alternative Currency, LETS, etc.
Open L0700-ML-ALTERNATIVE-CURRENCIES
Cryptocurrencies
A game changer ... but not yet clear what game!
Open L0700-ML-CC-CRYPTOCURRENCIES
Cryptocurrencies / Bitcoin
Was priced at around 10 cents, now somewhere between $8,000 and $19,000
Open L0700-ML-CC-Bitcoin
Cryptocurrencies
More energy effficient ... but pricing still difficult to justify
Open L0700-ML-CC-Ethereum
Currencies
A game changer ... but not yet clear what game!
Open L0700-ML-CURRENCIES
Finance
A game changer ... but not yet clear what game!
Open L0700-ML-FINANCE
Financial Inclusion
A game changer ... but not yet clear what game!
Open L0700-ML-FINANCIAL-INCLUSION
How MONEY Works
The essential basics of how the MONEY economy works
Open L0700-ML-HOW-MONEY-WORKS
Value Based Currency Units
A proposed framing for a 21st Century liquidity system from TrueValueMetrics
Open L0700-ML-VALUE-BASED-CURRENCY-UNITS
MISC MATERIAL
Misc material related to money, finance and banking
Open L0700-ML-zMISC-MATERIAL
BANKING-FINANCE
The money denominated component of wealth
Open L070-BF-BANKING-FINANCE
BANKING-FINANCIAL-SERVICES
Misc material related to money, finance and banking
Open L0700-SI-BANKING-FINANCIAL-SERVICES

Money Supply GO TOP

Stacks of 50-subject one dollar note sheets at the U.S. Bureau of Engraving and Printing in Washington on April 14, 2015. (Andrew Harrer/Bloomberg)

Cut stacks of $100 bills make their way down the line at the Bureau of Engraving and Printing Western Currency Facility in Fort Worth, Texas. (AP Photo/LM Otero)

Since

Bank Lending GO TOP

UK Bank Lending by Sector from 1997 to 2012
UK bank lending grew along with the size of the British economy from 1997 to around 2007, at which point there was a surge in lending to the financial and real estate sectors ... and a subsequent banking crisis as these loans proved unviable.
What is particularly concerning is that the lending to non-financial businesses ... what one might describe as the 'real economy' which produces the goods and services that we all need to live our lives, has flatlined for this period, as it has done for a very long time before this period.
More about Banking and Finance Open L0700-SS-BF-BANKING-FINANCE

Crowdfunding GO TOP
Crowdfunding
Some more detail about Crowdfunding
Crowdfunding
What WikiPedia says about Crowdfunding
'https://en.wikipedia.org/wiki/Crowdfunding'
Open Wikipedia page

Initial Coin Offering (ICO) GO TOP
Initial Coin Offerings (ICOs)
Some more about ICOs
Open L0700-II-ICO
Initial Coin Offering
What WikiPedia says about ICOs
'https://en.wikipedia.org/wiki/Initial_coin_offering'
Open Wikipedia page

Initial Public Offering (IPO) GO TOP
Initial Public Offerings (IPOs)
Some more about IPOs
Initial Public Offerings (IPOs)
What WikiPedia says about IPOs
'https://en.wikipedia.org/wiki/Initial_public_offering'
Open Wikipedia page

Private Currency GO TOP
Private Currency
Some more about Private Currency
Private Currency
What WikiPedia says about Private Currency
'https://en.wikipedia.org/wiki/Private_currency'
Open Wikipedia page

Complementary Currency GO TOP
Complementary Currency
Some more about Complementary Currency
Open L0700-ML-ALTERNATIVE-CURRENCIES
Private Currency

Stock Exchanges GO TOP
Stock Exchanges
Some more about Stock Exchanges
Stock Exchanges
What WikiPedia says about Stock Exchanges
'https://en.wikipedia.org/wiki/Stock_exchange'
Open Wikipedia page



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