Tuesday, August 25, 2015

Economics by a Physicist

I read enough Paul Krugman, and Joseph Stiglitz, to know that Economics has a political component. Nowadays there are world economic problems. The production of goods and services stalled. Finance has to do with moving capital to where it is needed.

China had a big correction, which has not ended. The Communist Party of China is learning how to play Capitalism. It is a slow and painful process. Cuba is just gearing up for this game. I expect them to outperform their friends in Miami. I just watched Memories of Underdevelopment last night.

We know from Physics, that Diffusion is the phenomenon by which anything moves from where it is plenty, to where it is scarce.

Capital doesn't follow free diffusion, because there are anti-diffusive forces. That is, what I think, is the role of states with their regulatory powers.

Governments should open the gates for capital to go to wages, and away from unproductive accounts. Less interest for accounts, increased wages for workers.

The US Fed Should Not Increase Short Term Interest Rates in September!

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