Today with fixing the world

Good day January 18, 2013,

Thank you for a very inspiring day. For the last 2 weeks I have been reading about my CFA studies and I ponder a lot of things. According to social standards the rate of money supplied to the whole world grows by 1-2% hence we should monitor and control inflation by 2% at most. I haven't finished the book nor the course but in simple terms I would like to try to explain what I am thinking.

We buy and sell goods at a rate. This rate is a countries' earns or grows its money. To explain this, I think when a country central bank releases 200 coins for trading. It's citizens buys and sells goods at a profit. Ofcourse with our greedy nature we opt of the highest possible gains. This would be tripling our doubling our money. After doubling it we only use a certain portion to buy stuff. Rich people or people accumulate wealth. The current economic system is not created for accumulating wealth. It's design more inclined towards spending. Spending creates growths, these growth could be seen in additional items or new stuff for the person to enjoy. This would further enhance growth cause with spending you let others earn and they would also buy stuffs which would continue the cycle. The problem with this model is that, people then not to anticipate the future or anticipate the future. That said, money would be differently need in the future than the present. The more growth or the higher the GDP of a country. The government needs to print more money to the economy for circulation. This would continue the cycle of growth. If however the government carelessly printed less money it would constrict the economy and would produce recession. Giving too much money out in the economy would also devaluate the value of money.

I don't know much about how policies should work or how to stabilize the economy. The free market system is a very good system, it gives the most efficient value for each resource available in the market. I really think that government all over the world are doing more bad than good in the current world economy. Exchange rate and currency devaluation is like saying the poor will always be poor. I would suggest a single way for government to control or stabilize their economy. Government should not be greedy. Here is my suggested plan. The economy should be weight not by spending, but it should be monitored on how much it earned. The first step it how each person should be taxed. Every country has its own cost for it to run. Everyone living inside the country should pay x amount for contribution living in the country. This way, each person inside the country would contribute to the country earnings. Secondly, a government should taxed each person differently, by means of how many assets it have accumulated. If a person bought a car he would need to pay road tax and tax that he pollutes the country air. The more he accumulated wealth he would need to pay more taxes for the government yearly. This taxed amount should be determine by offsetting the economic gains of the citizen who earned. This way if the government only issued 300 coins it will still be 300 coins in the economy. They could monitor the taxes earned. The government should put the money back to the market equal to the money earned. That means if the economy earned 10%. The taxed gained should be measured by 10% of the coins hence the government should issue 30 more coins towards the market. The problem with the current system the government do not have any idea on how many real gains or how much money they should pour back to the economy. Pouring back lesser would halt growth pouring more would trigger inflation which would result in lower growth.

Capitalism is a good system, the way me manage and monitor it has quite some flaws. In the past people predicted that people loves to have a comfortable lives. A d They were right! The only problem was they also decided that people who wants to have a luxurious life needs to for for it! Now a days, some are just born rich due their parents or ancestors had worked very hard or been very lucky. This means people tend to have a lot before they even worked for it. Now with this scenario, the people likes to enjoy life more. They spend more and don't think much about anything. This eventually will worked out for the future cause those who worked hard would eventually would catch up with the rich. The problem is that this rich people are also social beings. They need to interact. Not all they interacted are born rich. This influences the average income people to do what rich people do spend. With the current system it's goo cause the more you spend the more the economy would prosper. Here is the only problem, without thinking of the future. They will spend and exhaust all possible means of income. The time when their physiology or physical strength would not able to catch up with their excessive life style. This is when most of the people would result to recession. Responsibilities would not be meant and they would blame the government for their own problems.

Another irony is about jobs and population. It is simple to understand that a person ave age were they would earn x amount of income is at ages 18 - 55, this income years would also be subdivide to categorizes in the amount a person could earn in their life span. This amount could also be subdivided in which how much amount could be given to dependents. Cause from the age 0-17 we could assume a person don't have income and the person who earn the income need to sustain the income less years of their dependents. The more dependents the lower the quality of life an average income earner would have. The lower quality of life would also contribute to lower production output. This means when the person is depressed or stressed out on earning an amount for his/her family to live a certain lifestyle. It would add more stress to the workforce. More stress, physical or mental it will be less productive for the economy hence it will be a cycle that is hard to break.

The short term solution is to force doctors to offer permanent contraceptives like vasectomy and ligation for couples this way we are sure that they will control the birthrates. In the long term solution is education about sex at an earlier stage in life. Repackage the image of sex thru media. This way citizens would know that sex is just an act of reproduction. Sex is also an activity that both sexes could enjoy but they would require certain contraceptives to lower the risk of certain unwanted circumstances. These steps are not 100% certain but it is good enough cause we practice free will and democracy. Education system are also flawed. I would need to elaborate on the education on some other day.

Now with this said, solutions are needed to fix the economy. A healthy economy is able to sustain constant growth with no government intervention. The current situation is hard to fix due to the fact the government had already manipulated the market to expand at the rate they prefer or comfortable. Rich people should not be blamed for others misfortunes cause they are just doing the best they can to outwit the market. Politician thou are the once who are blinding the market with false hope and false truth. Engaging the market with manipulation to work to their favor. If the people are smarter they would pick the candidate which would government the people to a better future. A future of paperless money system, full proof security and the best a bright future for their children.


January 18, is my father's death anniversary. He is dead for 21 years now. He left his family to be peaceful. He did gave us a lot of opportunity to be fortunate enough to grow and live the way we have now. I am a person who dreams big and aim for something my heart thinks it is worth while. My life is really great, I have everything I want materially but in terms of achieving something worth while I am now in the process. The measurement of my achievement is money. The more money I accumulate the closer I am in achieving my dream.