Good and bad inflation.

Inflation is decreasing the value of the currency. Sometimes some people say that inflation makes the interest of loans negative. That means the value of the currency drops so fast that the interest of loans cannot cover the loss of the currency's value. Maybe that thing is good for somebody, but that is a bad thing for banks. The interests of loans are meant to cover the expenses of the bank. 

So when the bank would not get what it calculated, that thing means that those negative interests are left as bad debt. The thing that if the private person gets to benefit from the loans of the inflation person requires the inflation adjustments for the incoming. 

The problem with inflation is that it affects the prices of every product. Inflation is increasing prices. And another term for that thing is that costs of living increasing. There is the tale that little inflation is tolerated and helps economics. Of course, that thing can be true. But that requires that people have currency loans. Or they can change their currency whenever the value of a currency is changing. 

When we are talking about the loss of the value of the currency, we can talk about two types of inflation. Normally inflation means the loss of the buying force of money. So the value of the currency is lost internally. But the value of the currency is stable to other currencies. 

In another version of inflation, the value of currency turns weak. In comparison to other currencies. The phenomenon is similar to devaluation, but that thing happens spontaneously. Term devaluation means that the outer value of currency turns weak in purpose. But the spontaneous devaluation where the currency loses its value spontaneously can describe as "outer side inflation". 

Controlling the changes in the value of the currency is the key element in economics. The inflation adjustments are the interesting thing. But they can accelerate inflation. The major reason for inflation is that. There is too much cash or free money in markets. 

So inflation adjustments can mean that the central bank just makes more money for the markets. And because there is less other property the value of money will decrease because there is more money for the property. 

Should we separate from the Euro and get own money or not?

Should we separate from the Euro and get own money or not?

There are no simple answers for that kind of questions, like should we stay in Euro or not. This kind of questions is really good, because there is no way, how to predict the advantage of economics. The economics is science, what has one of the most difficult ways to operate because even we know the mechanisms, how this thing works, we cannot predict when the cycle turns upwards or downwards. In this text, I will handle the economics as the science, which has a very big and large scale connection to the information sciences, and that means that the way, how media reports about some things, what is happening has influence with economic advantage.

The news is modeling our way to think, and in the world of the stock marketing, the fast-changing situations in the marketing and economics  cause that even the faked news can have a really big influence, because the decision of buying and selling shares must make in the very short period after the information has been got. In the hectic world of modern information technology sharing the information is very fast. There is no time to check, how real or how even the source where the news has been got the involvement or even where it has been written.

The way to write things like human rights has a very big influence on tourism and willing to buy merchandise from some state, and that kind of things have the big influence to the economics of that nation. Before Adam Smith and his theory of "invisible hand," people thought that there is no way to control the cycle of economics, but then this Scottish economical researcher realized, that the things, how the people write in the newspapers has an influence on the cycle of the economics.

The thing about economics is to try to predict the behavior of the cycle of the economy and in the era of Adam Smith, the economics was the simple thing. But then the field of that science has been separated to the different areas, like the steel industry, electronics, computers, or ICT-sector, where the hardware is separated from the software, and there are sub-sectors like programs for business and entertainment sectors, and the last one is basically games.

And of course, there are programs for Mac, PC, and mobile platforms. The network-based solutions work in every operating system, but using them with the mobile telephone is sometimes a little bit difficult, because of the small screen. But writing the A4 document by using the mobile version of some text handling program is possible, but it takes a little bit longer time than writing it by using a tablet or computer.

So this makes the world of economics little bit more complicated than in the era of Adam Smith. The thing in economics is that this science is not independent, or economics itself is independent, but the behavior of the line on the screen depends on the things, like how much products have been bought, or how many times some computer program has been loaded. But it also depends on the situation in the global political environment.

If some state would start to behave aggressively, and if that state has nuclear weapons, it would have a great influence on the global political and economic environment. When we are looking at the currency and especially the value of the currency, we are facing the truth, that if the small state would face the threat from other countries, the things what next happen would have great influence to the economics.

If the international community would support that small nation, it would get power to its own economy. But when we are talking about the situation, that the state, what operates with nuclear weapons is going to defend the small state, would that cause a very complicated situation. Even if that state says, that it would not use nuclear weapons in that conflict, the question is "what if the opponent uses the nuclear weapons".

In the complicated relationship between the nations, what own nuclear weapons is one principle when one actor in the nuclear club goes to support some government, another one would support the opposite force of the government, what the first nuclear state has been supported. And then we must realize, that economics is really sensitive for that kind of things. In the past, the conflicts what happened in the middle-east had very large-scale influence in the economics of the world.

The thing in the way of view things might change radically if we would stop to use fossil fuel. The clean energy, what would produce locally can decrease the oil states influence the economics of the world, and the thing is, that if the oil states would lose their main export article, would that kind of change turn the economics down in those countries.

And this is only the part of the way to use the so-called "invisible hand". The other way is to use hoax information and other kinds of things, and that thing is really problematic because the influence of that faked news might be local, but if some financial operator would write faked news that some company has given the resulting warning, that person can make very big money in one moment. This makes the economics even more complicated than we have thought.