Skip to main content

Economics 101

Lecture 101 1. Gross, Domestic Product a. GDP = V x M1 b. 25.74t = 1.29 x 19.82 x 1012 (t) c. Velocity was 15 as recently as 2008 before housing crisis 2. Sectorial Balances a. S + (Imp - Exp) = I + (Gov Spend – Rev) b. S = consumer or demand side wealth c. I = Foreign and domestic supply side excess profit 3. Capital Divergence / Global Trade a. Decreases Demand Side Wealth (Middle Class) b. Decreases economic Volume (productivity) c. Increases Supply Side Investments & Oligarchs d. Increases Government Spending 4. Elasticity of Demand a. Calculates sales volume / price change b. Critical Margin c. Company w/ narrow margin raises price. 5. Inflation a. Government spending b. Credit easing c. Low interest rates d. Restricting fossil fuel production e. COVID lockdown, pent up demand f. Inherent instability of inflation 6. FED Failure a. Phillips Curve, supply & demand b. Reluctant return to Work, 2/3 stay home c. Depressed private sector. Thriving supply side i. Contradiction, pent up and depressed ii. Non-discretionary vs discretionary iii. Decreased sales, increased prices 7. Productivity, Velocity, Tighten M1 a. Small increase in Velocity = > GDP b. Decrease government spending c. Ways to increase activity 8. Staged Layoffs of non-productive a. Unemployment in measured weekly number b. Thus, the Phillips Curve for dis-inflation c. Productivity from previously non- productive 9. Gold Standard (Conjecture) a. What might happen? $1,000 = 1 oz gold b. Might the government declare a J’oublie to discharge debt ?

Comments

Post a Comment

Popular posts from this blog

Rick Atkinson

THE FATE OF THE DAY , just released, The war for America QUOTE George Washington. Our conflict is not likely to cease so soon as every good man would wish....Our cause is noble. it is the cause of mankind, and the danger to it springs from ourselves. March 31, 1779
Post a Comment
Read more

Inflation

Many retail investors buy individual stocks with growing confidence in a narket that has a long run. Many fail to appreciate the way the market reflects inflation. Company revenue consists of inflated number,s as does cost and profit, thus the market reflects true inflation which must now be near 100%.
Post a Comment
Read more

Tariffs versus Capital Surplus

"Trump is Completely Wrong on the Trade Deficit." Let Levin, Sowell, and Friedman Explain. In this interview, Melton Friedman claimed that "deficits are not bad. What's not to like about a capital surplus." In his book Arguing with Zombies, Paul Krugman, a Nobel Prize economist, said, "An end to trade deficits? That's not something trade policy can or should do." The surplus profit earned through cheap foreign labor seeks the most profitable place to go. As the safest and most profitable option, that capital surplus lands in the US stock market. What's not to like about a capital surplus? That fondness intensifies with any threat of it going away, but why would tariffs be such a threat? Scott Bassett, US Secretary of the Treasury, on CNBC's Squawk Box, 4/8/25, said, "If we put up a tariff wall, the ultimate goal would be to bring manufacturing and jobs back to the US. In the meantime, we will be collecting substantial tariffs. As I...
Post a Comment
Read more