Skip to main content

The reality in economics is that a boom cannot last forever.

 


The reality in economics is that a boom cannot last forever. And after the boom period, the downturn is inevitable. That is the law in economics. Even the largest marketing areas cannot maintain a boom forever. So the economical downturn in the EUR area should not be surprising. What sizes are the damages that the downturn causes? 

That depends on how fast it is. And how long the boom continued before the downturn. If the boom continues for a long time and then the downturn is very fast the results of that thing are devastating. That thing causes lots of bankruptcies and unemployment. The bad economical situation can turn worse if there is some kind of civil disorder or some kind of suspicion of the central government's skills and abilities to keep order and control the value of currencies. 

The case where inflation brings benefit is the case where inflation turns to deflation. Deflation is the anti-inflation where the value of the currency is increasing. If that thing happens soon after inflation and especially inflation adjustments that bring benefits for people. 

The thing that also causes suspicion is the loss of free information. The thing that accelerates inflation and rises in the prices of merchandise is the case that many people and companies are just moving their savings and investments to another country. When people are selling currency. That causes inflation. And inflation is not a good thing. 

When we are thinking about inflation and exporting merchandise. That means foreigners can buy our products at a lower price if they use some other currencies. But the problem is that inflation is seen in supermarkets and the prices of everyday products are increasing. And normal people are seeing that thing when they are going to the supermarket. 

If we want to get benefit from inflation that requires a situation where we can get more money from the products. Then the value of money must rise and the prices must turn low. That means only deflation brings the benefit from inflation. 


See terms: 


Deflation:


https://www.investopedia.com/terms/d/deflation.asp


Devaluation:


https://www.investopedia.com/terms/c/competitive-devaluation.asp


Inflation:


https://www.investopedia.com/terms/i/inflation.asp


Revaluation:


https://www.investopedia.com/terms/r/revaluation.asp


Labels:

Comments

Post a Comment

Popular posts from this blog

Antimatter motor

Antimatter motor Antimatter would be an effective fuel for interstellar spacecraft Antimatter would be the most effective power source in the world. It will be the most suitable motor for interstellar spacecraft, but the problem is that thing is very reactive. And actually one of the biggest problems with this kind of motor is that the gram of antimatter would turn the entire planet to the molecular nebula. So this kind of motor can produce only outside of our solar system. Producing antimatter would need large particle accelerators, and that kind of systems might look like giant donuts, what is floating on the space. There are two ways to create the antimatter motor, one is to store the anti-ions in the magnetic bottle, where the pushing magnetic field will keep those ions away from the wall of the bottle, and then the antimatter would conduct to the water or some other particle. The huge explosion or annihilation reaction would send the rocket to a very high speed. The antimatt...
Post a Comment
Read more

The cyborg lichen can be one of the most exotic visions of what the high-tech civilization might look like.

.     The cyborg lichen can be one of the most exotic visions of what the high-tech civilization might look like. Above is the image of the nano-submarine. There is introduced an idea, that this kind of system would equip with living neurons, which makes it like some kind of artificial bug or mosquito. The idea is that the robot can take the nutrient by using the robot tube, which acts like a proboscis. The neurons can get nutrients and the rest of the machine can use small fuel cells or the energy to that system can deliver by using the radio waves. Futurologists are thinking about the ideas, what the hybridization of the neurons and machine would look like? Could the hyper-technical civilization look like the group of midget submarines? Those submarines might take nutrients for the neurons, what is living in them. The purpose of the midget submarines, which might be size less than a couple of millimeters would maximize the survivability of the neurons. One of the most intere...
Post a Comment
Read more

Could this be the thing, that some people don't want you to know about zombies?

Could this be the thing, that some people don't want you to know about zombies? The simplest way to control zombies, which are made by using tetrodotoxin, which is called "zombie poison" is to use the automatic dispenser, which is normally used in diabetes treatment. In this case, the dispenser would be loaded by using tetrodotoxin. If the level of this poison is right, the person would be totally under the control of other people. And if the system cannot detect this poison there is a possibility to make the laboratory experiment when the staff will follow the decrease of the tetrodotoxin, and then the system can use a simple clock, which will inject poison to the body of a victim after a certain time. This would be an effective tool in the hands of military and counter-terror operators. Those zombies can be captured enemy operators, who will send back, and then they just kill their ex-partners. By using genetically engineered bacteria could be possible to create t...
Post a Comment
Read more