The mechanisms of the economy are artificial mechanisms, and originally the economy was a purposive system.
The mechanisms of the economy are mechanisms that were created by people.

The purpose of the mechanisms of the economy is not about making money. Money is merely a means to an end.
The purpose of the economy is to make use of people. Therefore, the purpose of the mechanisms of the economy is to produce the resources necessary to live, to distribute those resources to those who need them, and to ensure that people’s lives are not troubled.
Therefore, rather than money, the important point is how much can production activities be reduced for people and goods. Economic efficiency is something that should be measured by production and consumption, and money should merely serve as a guideline, as a sort of criteria. Production and consumption can be troubled both by surpluses and shortages.
Today’s economy is based on the assumption that mass production is better than suffering shortages. Therefore, everything is in excess, resulting in a waste of resources and labor, and wasteful use becomes rampant. If left unchecked, environmental problems, resource problems, and global warming problems arise, and it is clear that we will leave a variety of disastrous issues for future generations to deal with.

A market does not fail. It is people who fail.
The failure of people is that they have lost sight of the original purpose of the market.

When an accident is caused by a runaway vehicle, saying that the vehicle is in the wrong is a frivolous point to make. No matter how high performance a vehicle may be, it can become a weapon in the hands of the person operating it. The specifications of vehicles vary depending on the purpose of the vehicle. And each and every individual vehicle is manufactured to suit a specific purpose. A tank truck with the purpose of transporting oil is designed to have the required functions and performance that are determined by that purpose of transporting oil.
The market is the same. The market is also a kind of mechanism. But more than just being a mechanism, the market has a purpose, and as such, it should be designed according to that purpose. But even if the market is only a mechanism, it is an inviolable sanctuary unlike any other mechanism, and there are those who deny discussing the market itself in terms of mechanisms and purposes. For such people, competition is their principle. Carrying on like this looks something like a sort of religion.
This is not to say that the market is without defects, but if people can make defective vehicles, people can also create a market with defects. Moreover, people must remedy this because it is people who are at fault, not the market. For that reason, saying that the market has failed is simply nothing but just a lame excuse.

The results of the economy are not intended to be something that occurs naturally. The economy is a creation of people. The economy was not created by God. All responsibility for the events of the economy lies with people. But when the economy turns bad and becomes inconvenient for them, people begin speaking of the economy as though it were something created in nature. In the extreme, people even try to make God responsible for the economy. The mechanisms of the economy function at the will of the people. This is something that must not be forgotten.

The economy has a purpose. As the economy runs its course, a variety of situations and phenomena occur.
For example, one has to heat water in order to take a bath, and in order to reach a certain destination, a plane must be piloted to get there.
If one’s purpose is to take a bath, then the water must be heated to a certain temperature, and then after that, the hot water must be regulated to maintain its temperature.
In addition, for the plane, it must be piloted so that it maintains its altitude after reaching a certain altitude. And for the bath water, if the heating continues beyond a certain temperature required to achieve its purpose, the overheated hot water could become a dangerous situation.
If the airplane flies higher than its safe altitude, and even goes beyond the stratosphere and uses that space only a little, it could turn into a catastrophe.
But this does not make sense for the economy. Without any meaning, if the economy is heated to a dangerous level, and even overheated beyond that dangerous level, people single-mindedly want to calm whatever it is that is continuing to cause the heat. And as a result, it turns into a miserable situation that people themselves have caused.

Income is based on human resources, and production is based on material resources. But, the dispersion of human resources and the dispersion of material resources are not uniform, nor are they consistent.
The mechanisms of the economy serve to make the dispersion of human resources and the dispersion of material resources consistent, as the economy is a system that is created for the purpose of fair distribution.

Human resources make up the labor force. Thus, income is attributable to the labor force.

In a market economy, funds and goods are obtained by exchanging them through the market. In other words, income is obtained from the market by an exchange of a means of labor.

The inconsistency in the dispersion of human resources and the dispersion of material resources is something that is lurking behind the disparities in every society.
It can also be said to be the root of such disparities. In a capitalist society, if there is no place where one can take advantage of the resources of labor and capital, then it is not a mechanism for making any money. And the gap between those who have no place to work even though they want to work, and those who can earn an income just by providing a place to work can not be easily filled.

The state of the economy is determined by the imbalance between the dispersion of material resources and human resources.
The inconsistency of material resources and human resources appears as an asymmetry in the structure of income and expenditure.
For those in a region that has scarce material resources, unless they can bring the resources in from elsewhere, process them and then sell to other regions, they will not be able to make any money. When the division of labor evolves, those who have surplus resources and those who have a shortage of resources will need to flexibly accommodate each other. As the resources are mutually complemented, trade will develop.

A money economy is established with personal income as the basis. In other words, income is the personal earnings that people make. And that income becomes funds to be distributed.
For income, there is an income that is based on labor and income that is not based on labor. Income that is based on labor is labor income, and income that is not based on labor is non-labor income. The root of the economy is income based on labor.

An economy with only production can not exist. An economy with only consumption can not exist. What is important is the international division of labor. What enables the international division of labor to exist is income based on labor.
Income is based on human resources, and production is based on material resources. But, the dispersion of human resources and the dispersion of material resources are not uniform, nor are they consistent.
The mechanisms of the economy serve to make the dispersion of human resources and the dispersion of material resources consistent, as the economy is a system that is created for the purpose of fair distribution.

In a market economy, funds and goods are obtained by exchanging them through the market. In other words, income is obtained from the market by an exchange of a means of labor.

The inconsistency in the dispersion of human resources and the dispersion of material resources is something that is lurking behind the disparities in every society.
It can also be said to be the root of such disparities. In a capitalist society, if there is no place where one can take advantage of the resources of labor and capital, then it is not a mechanism for getting ones hands on any money. And the gap between those who have no place to work even through they want to work, and those who can earn an income just by providing a place to work can not be easily filled.

The state of the economy is determined by the imbalance between the dispersion of material resources and human resources.
The inconsistency of material resources and human resources appears as an asymmetry in the structure of income and expenditure.
For those in a region that has scarce material resources, unless they can bring the resources in from elsewhere, process them and then sell to other regions, they will not be able to make any money. When the division of labor evolves, those who have surplus resources and those who have a shortage of resources will need to flexibly accommodate each other. As the resources are mutually complemented, trade will develop.

Hidden behind selling and buying is a relationship of lending and borrowing. Moreover, whereas selling and buying have a temporary relationship, lending and borrowing have an ongoing relationship.
In other words, considering only the workings over the long term, the impact of lending and borrowing is stronger than that of selling and buying.
Originally, the borrower stood in a weaker position than the lender, but in overseas trading that sort of relationship does not necessarily hold. The reason is because military might is at work in the background.

The in-flow and out-flow of goods and money are at the root of money transactions.
When attempting to make up insufficient resources by procuring them from abroad, there must be funds available to do so.

The world of money and the world of goods exist in different dimensions.
In the beginning, money did not exist in the world of goods. The existence of money is purely an artificial existence.
In order for money to be able to function as money, there must be confidence in the market. Confidence in the market is achieved on the basis of money being constrained.

In order for a market transaction to be possible, the seller must possess a product and the buyer must possess money. In order for this relationship to be possible, first of all, rights of ownership must be established.
Another point is that it is a prerequisite that money is spreading all throughout the market. That is, in order for the monetary system to be established, the key is whether money is thoroughly spreading all throughout the market while in some way confidence in the money is being gained. In addition, while gaining the confidence, in order to thoroughly spread the money, lender-borrower relationships are essential.

When something is consumed, that is the end of it. However, the same thing must not happen to money. Money needs to be circulated.
Once it is put into savings, the role of money is over. Even then, a lender-borrower relationship arises.

If the buyer is not in possession of any money, there is a need to hand over a payment in some form to the other party, the seller. One of the means of handing over the payment is to provide some thing or some service in exchange. This means lending the money. In any case, this assumes that the seller and the buyer have confidence in the value of the money.
If they do not have confidence in the value of the money, then a starting point would be to lend money and sell the goods.
Producers lend money and sell their products to recover the money. However, the money is no longer being circulated and that would be the end of it. Therefore, money is lent again. If there is only this kind of relationship, debt would go on accumulating unilaterally. So, it is thus necessary to reverse the direction of the flow.

Unilaterally produce and unilaterally consume is not a relationship that is possible. What mediates between production and consumption is labor and remuneration. The fundamentals of income are formed by labor and remuneration. This is a given principle.

All transactions are set to have a zero sum balance. Selling and buying have a zero-sum balance, lending and borrowing have a zero-sum balance, and seller-buyer and lender-borrower transactions have a zero-sum balance.
The current account balance is formed by the seller-buyer relationship, and capital transactions are approved depending on loans. In trade, the current account and the capital account are established with a zero-sum balance.

Selling and buying transactions are not possible unless the seller assumes the existence of a buyer and the buyer assumes the existence of the seller. Market fundamentalists ignore this principle to compete, and they jeer at competition. But, trying to encourage competition has no meaning if a relationship between the seller and the buyer does not exist.
In order to conduct sales transactions through the market, the buyer is assumed to have money in advance.
First of all, money must be supplied to the market. Money is not necessarily supplied to the market unconditionally from the beginning. So, a loan relationship thus occurs. This is because money is supplied to the market by lending and borrowing.
This is a market principle, which is the foundation of the money economy. The problem is how to evenly distribute money in advance without bias to consumers. Here, the resources of labor play an important role.
In principle, the first thing is to allocate money to the labor resources according to the results of that labor.

It can not be said that the seller has an advantage and the buyer is at a disadvantage, nor can it be said that the lender is superior and the borrower is inferior. Advantages and disadvantages, and superiority and inferiority are determined by power relationships and circumstances.
A seller needs a buyer, and a buyer needs a seller.
This is divine providence.
It is not a relationship of being for one and against the other.
In and of itself, whether the current account result is a surplus or a deficit is not a matter of being good or bad.
The problem lies in the balance. Therefore it is the cause of the surplus or deficit, the mechanism for producing the surplus or deficit, the right or wrong of the structure.

The essence of the economy is not a problem of whether the seller is good, or whether the buyer is good, or whether a surplus is right, or whether a deficit is wrong.

Financial assets are a payment reserve, and debts can be said to be assets.

An ill of modern society, where it is not visible to the eye, is that debt without substantive support is increasing. And, it is like the negative part is eroding the good part of the fruit.

When one splits a payment, since each one of the payments is a small amount, one has a good feeling of having benefited. But, a debt is a debt. Because, after all, the total debt is an extended payment with interest.
Moreover, because the debt includes interest, the payments are substantially higher than the nominal cost. In addition, there is no time to lose in making the repayments. In other words, money that could be freed up to be used as disposable income is being compressed. If the debt becomes excessive, there may be no money available to be freely used due to the monthly repayments, and in the worst case the repayment amounts may exceed ones income.
From the aspect of increasing ones income, although the monthly repayments can be expected to be compressed, if the income decreased or were interrupted, it could result in bankruptcy.
To put it another way, if there is no debt, bankruptcy will not happen. And this is the same for finance and businesses as well.

And, the flow of these funds is the underlying problem of capitalism.
This is because the flow of the repayment of debt does not appear anywhere in the periodic profit and loss.
The reality can not be readily grasped from the cash flow statement.

We must not overlook the fact that without debt, it is not possible to go bankrupt. This is also not different for households, companies and finance.
In that case, one might think that it is good not to go into debt, but that would be wrong. The reason why is because, currency has the characteristic of being a financial asset, and financial assets are a kind of debt, and once you deny debt, the money economy itself will no longer be possible.

In short, debt is a vital element and should be actively utilized, but if it is handled incorrectly, it could bring about ruin.

Even though its revenue had been steady, suddenly one day a business can fail and go bankrupt. In addition, that could lead to the economy suddenly becoming abnormal. The “Lehman shock” financial crisis is a good example.
That was caused by the flow of funds related to those loans.
The flow of funds, in a part that has nothing to do with revenue, proceeds bit by bit, and apparently seems normal, then one day the flow suddenly stops and becomes dysfunctional. The routes of the flow of money become narrow, and the functions of money become limited and rigid. In some cases, the routes of the flow of money become clogged and money no longer flows.
The important thing is not to fear debt and stay away from it, but rather to know the substance of debt and make it an ally.

People are not saved by faith alone. This is because people have acquired the power of God through science. People who are not God-fearing will not be forgiven for using the power of God. People can not become God. The essence of God lies in God’s existence rather than God’s force. If the power of God were to get into the hands of people who are not God-fearing, they would be destroyed by the power of God. That is the conscience of scientists.