I think one everlasting truth about life is how to become better daily. In the insurance industry, the greatest challenge is often how to sell insurance to people, who generally do not need it. No one wakes up one day and thinks he needs an insurance policy. Usually there are trigger events like the death of someone. some sickness etc. In the same way, no one wakes up one day and thinks he needs to push himself to be better.
So much has changed with this blog entering its fourth year, yet so much has not. Whether I’ve found the truth I couldn’t confidently tell. Only nearer, I constantly console myself. A step closer to unravelling the mysteries of life, mayhaps?
We first talked about Quantity Theory of Money some time back (click here for the post) focusing rather on the macro picture. For example how do money printing and manipulation of money supply become government’s propaganda tool.
Today we’ll take a look from a micro effect perspective, namely wealth effect and how does it affect us.
“If as one people speaking the same language they have begun to do this, then nothing they plan to do will be impossible for them. Come, let us go down and confuse their language so they will not understand each other.” Genesis 11: 6-7
It must seem like ages ago since I last updated this blog, for which I sincerely apologize. Anyway, technology has indeed shrunk space (removing geographical limitations), expanded time and eased the flow of knowledge. Alvin Toffler identified these 3 deep fundamentals like 30 over years ago. (click here for the post).
I’ve spent some spare amount of time on mobile games for the past few months. Two games ( and the only two that I actively play) that I think have managed to somehow redefine mobile gaming are (a) Clash of Clans and (b) Injustice Gods Among Us ( or renamed as Injustice The Mighty Among Us in the Middle East region).
We continue our discussion from the previous post where we talked about money supply, currency devaluation and the new 21st century war called the ‘currency war’. James Rickards, author of Currency Wars described it succinctly when he said, “Currency wars are akin to tug of war. Nothing much seems to happen on the surface. But as tension builds up underneath, it’s only a matter of time when the rope is pulled to one side or the other.” Well, it’s not word for word. Curse me for not copying it down previously.
(1) On the World Landscape (a brief outlook on what’s happening around)
- Quantitative Easing and EU Bailouts
- Recall from macroeconomics 101 that GDP, which measures a country’s economic output is widely defined as GDP = C + I + G + X, where C = private consumption, I = Investment, G = government spending and X = net export.
- By engaging in QE, the US is basically exporting its inflation abroad, i.e. growing her X (net export). QE is basically printing more paper money and that means cheapening its currency relative to other nations’.
- Germany, on the other hand, has to lead in the various bailouts of PIIGS (Portugal, Ireland, Italy, Greek and Spain) and recently Cyprus for the same reason. A collapse in the EU economies will severely affect Germany’s own economy since it’s a net exporter within Europe. What Merkel did is in fact, in the best interest of Germany, something that apparently some Germans fail to grasp, I think, by harping on ‘no to using taxpayers’ money for bailouts’.
This post ought to beget more questions than answers because I am still thinking about the thinking.
The question at hand is on man’s search for life’s holy grail. So far I am satisfied with the finding that we are driven by one of these three – (a) Freudian’s will to pleasure (b) Nietzsche’s will to power and (c) Frankl’s will to meaning. (click here for the post).
About 10 years ago while I was still an undergraduate, I remember taking a course called Knowledge Economy. The lecturer who also co authored the textbook we were using, described how knowledge will be the new capital vs what emerged from [the remnants of] the Industrial Revolution where the factors of production are (a) labour (b) land and (c) capital (raw materials and money).