Welcome to ICKO
|
|
|
|
This page explores the nature and dynamic of money. This study investigates what is the nature of inflation, deflation, and the impact of economy from a combination of system theory, complexity theory and economic theory. Traditional thinking on inflation and deflation is very much polarized by overlooking the co-existing and intereacation of these two trends. The world's economy is always in a inflationary trend due to the consumption of resources that pushes the price up. However, technology advancement creates a quantum well that floors the prices due to mass production. The globalization to manufacturing goods at low cost region drives the deflationary effect. In the last 10 year, these two factors help China becomes the factory of the world and exports deflation to the world to sooth down the inflation. And China was not the first one. It displaces Southeast Asia and India. Now the world's factory has down sized. Previous regions may pick up the slack when the demand resumes when China migrates to manufacture higher cost merchandise at a lower cost. For the meantime, the world economy is in seizure. This page will look at the money from a cold hard cash angle, or may be from a physics perspective. A lot of metaphor will be borrowed from areas such as particle physics, astrophysics and quantum physics which deals with forces of huge nature and fragile at critical mass formation which is similar to the current state of world financial system: a sudden move creates a lot of breakdowns that are unexpected.
|
Please send email to ck_wong@ieee.org with questions or comments about this web site. Copyrighted © 2005 - 2008 In CK's Opinion Last modified: 06/12/10. |