People do not live for bread

People do not live for bread alone. Money is something that humans have created, and it is not something that God has given them. Although people need money to live, this does not mean that they should live for money. If they forget that fact, humans become slaves to money.

Talking about the economy is not the same as talking about making money. The economy involves the activities that are needed to live. All living things depend on an economy. There are as many economies for people as there are people. If money is no longer functioning properly, the mechanisms of money should be discarded.
The economy is about the activities that are needed to live. So, there is also work that does not involve making money. The economy is also involves work that is inherently unrelated to making money, such as the protection of the environment and resources, disaster prevention, public security, national defense, education and research. And even though they may not be related to making money, there are many types of work that are essential to people’s lives. Work should not be considered menial just because it is not involved in making money. There are people who despise work that must be done but is not money-making, looking at it as though money were being thrown away. It is often the case that people involved in work that is not about making money but is vital to the society are doing it based on a noble frame of mind.
Rich people do not have the right to despise those who are engaged in work that is not making money or to consider them stupid for doing something that is not a money-making activity.

People are always asking God for something. What are they looking for ...?
Are people looking for conflict? Or are they looking for peace? If they are looking for peace, then they should try their best to avoid conflicts. Suppose that conflicts were never to disappear from the world. That would not be the will of God. It would because of the people looking for conflicts.

The mistake of modern economics is that human selfishness is what is at the root of the economy.
Reason is the most important thing for the economy. Once the economy is left to people’s self-interests, the economy will fall into an uncontrollable state. This is because human desire is the driving force that moves the economy. And if desire is put under the control of human selfishness, the result is as clear as day.
Human greed is the driving force of the economy. However, if we do not know how to suppress it, the economy will run away out of control. The economy can be controlled only by reason. An economy that is not based upon reason has compromised itself. As desires are aggravated, reason will not be maintained.
There is a mechanism for maintaining reason, and it can be done by take advantage of desire.

Modern economics lacks insight into people. This is why money becomes everything.
Money is something that is man-made. People are frightened of their own shadows.

The phenomena of the economy can not be grasped and radically cured by treating the symptoms alone.
A fundamental solution is not possible as long as the mechanism lurking behind the phenomena is not revealed.

The mechanisms of the economy exert their functions through their structures, the energy that drives the mechanisms and the people who operate the mechanisms.
The mechanisms have two types of structures: physical structures and ideological structures.
The power that drives the physical structure includes oil, electricity and gas.
Conversely, the power that drives the ideological structure comes from money or information.

When currency does not appear in the market, the situation is akin to someone keeping a faucet closed and being angry that there is no water coming out, or on the other hand, someone leaving the faucet open and with water continuing to pour out unknown to the party that closed it. And this is the height of irresponsibility. Here, it is not unreasonable that the amount of water can not be adjusted.

The objective of accounting is not for profit-making. The objective of accounting is to monitor whether the management activities are in line with the objectives of the business. When the objective of accounting and management is profit, this loses sight of the original objective of the economy.

When profits are made the objective, reason will no longer function. As long as profits are being made, the business owner is seen in a good light.
The objective of operating a business is not profits. The objective is doing economic work for the business community.
That is why, in some cases, even having losses should be acceptable.
Profits are one of the indexes of business management. But profits are not the objective of business nor of the economy.
The objective of accounting is not for profit-making. The objective of accounting is to monitor whether the management activities are in line with the objectives of the business. When the objective of accounting and management is profit, this loses sight of the original objective of the economy.

What is income? First of all, income is revenue. Revenue is the funds needed to cover the cost of living.
Second, income identifies the range of spending. Basically, spending is done within the range of income. Income is what accounts for the major part of revenue. Income consists of a fixed constant portion and a fluctuating indeterminate portion. The larger the fixed and deterministic portion is, the more stable and planned living is possible.
On the other hand, an evaluation of the working is rigid.
Third, income is a reward. It is some sort of consideration. In other words, income is a return on some work performed. It is typical of labor and capital related to some sort of work. Both labor and income are a means of production.
Fourth, income is paid with currency. Currency represents the right to procure resources in the market. The right to procure means the right to exchange currency for goods that are desired.
Fifth, income is the funds for distribution, and income is relative. Income is a means of bridging the overall economy and individual economic entities.
One of the important roles of income is associating the overall economy and individual personal economic communities. Because the finances for this function are sparse, it is difficult for the relationship between the part that forms the individual economic entities and the economy as a whole to penetrate to all members of society.

Why are there differences in income? Differences occur because, first of all, the situations in which people exist are different. Humans living in cold climates and those living in tropical climates need different things. Inevitably it also comes down to differences in prices. Secondly, people all have different values. People’s differences in values also become differences in tastes. Third, there are differences in perspective. Roughly speaking, the working age is limited. Fourth, there are individual differences. From person to person, there are differences in ability and body type. Everyone can not be made to dress uniformly in the same way. Fifth, there are different family structures. Sixth, there are differences in asset ownership. Seventh, people, after all, are people. Human beings are not simply living. People seek significance in their lives and self-realization. This is reflected in their work, and the work is reflected in the compensation received, making it possible for people to change their standing and position in life.
An economy in which no value can be found in labor is corrupted.

The movement of figures appears often in the cash flow. The cash flow should not be spoken about disconnected from economic policy. By looking at the cash flows in all industries, by industry, by size and financial institution, the figures can be honestly seen and understood for what they are.
The Nixon shock can be considered to be the basis for the situation in which Japan’s economy currently stands. The global economy entered a new phase with the Nixon shock, and the new order that was formed by the Nixon shock is said to have been torn out by the roots and turned on its head by the crisis following the Lehman bankruptcy.

The concept of a zero sum relationship holds an important key when considering the modern economy. However, if one does not know what the zero-sum relationship is associated to, it is impossible to understand the workings of a zero-sum relationship.

The economy consists of activities for living, not for making a profit. Profit is an index used for monetary transactions. Monetary transactions are a mechanism, a means for distributing produced goods. Even if living is the objective of the economy, it is a mistake to take making a profit as an objective.
Therefore, rather than changing life to match monetary transactions, the mechanism of monetary transactions should be changed to match life. Violating this principle is like putting the cart before the horse.
Monetary transactions consist of buying and selling transactions and borrowing and lending transactions. In fact, buying and selling transactions are the means used to distribute produced goods. Borrowing and lending transactions are transactions intended to compensate for the surplus or shortage of the money to be used for buying and selling transactions. Funds are in circulation to compensate for the difference between the surplus and shortage of funds.
Funds need to circulate. Therefore, the difference between the borrowing and lending and the difference between the buying and selling is always balanced. Periodic profit and loss is premised on this relationship.
Distribution is achieved through buying and selling, and borrowing and lending are the preparation for buying and selling.
The prevailing situation is that¸ in order for buying and selling transactions to take place, the funds needed for buying and selling must be available to those who seek to obtain the resources they need for living through such buying and selling transactions. For this purpose, lending and borrowing exists. The fundamental aim of lending and borrowing transactions is to compensate for a shortage of funds.

The thinking behind periodic profit and loss seeks to clarify the workings of the overall economy by dividing the workings of buying and selling transactions and the working of lending and borrowing transactions.

The keywords for the three motions that drive the economy are cycle, vibration, and rotation, as well as time.
The important thing is that the today’s economy consists of money that is in circulation.
If money moves in only one direction, money will not circulate and the economy will become stagnant.

The economy is an irreversible phenomenon, and as entropy incessantly increases, the forces at work move the market toward equilibrium.

The shortage of money is what makes the circulation of money occur. The circulation of money occurs because there is an entity with a surplus of money and an entity with a shortage of money. The sum of the surplus and shortage of money is set to be a zero-sum.

If there is any entity that has a shortage of money, there will be an entity that has a surplus. It is borrowing and lending that adjusts the surplus and shortage of money. The working of borrowing and lending is what causes money to circulate. The problem lies in a bias between borrowing and lending. When the relationship between borrowing and lending is extremely biased, money will not circulate.

Fixed costs have a decisive influence on the industrial structure. The foundation of economic phenomena is formed by the way in which fixed costs are handled.
Fixed costs form assets in borrowing and lending, and on the other side, they are the basis of debt and equity. In income, they become the source of depreciation and serve to constrain profits. In addition, they are a factor in the creation of profits.
Also, they are a factor that associates production and revenue.

Fixed costs are the spending involved as a means of production. The actual cash balance is prepared on the basis of the balance sheet and capital. Gains and losses are recorded as depreciation and amortization and are closely linked to an assessment account. Fixed costs are at the source of depreciation and amortization. The balance of payments involved in the means of production varies depending upon the rate of operation. When the rate of operation increases, the sales volume increases, and in proportion to this, the fixed costs will characteristically decrease. In addition, depending on the method of calculation, cost accounting will change the burden to the benefit of the fixed costs, including their relationship with the inventory.
Also, the characteristics of such fixed costs are what make up the foundation of a growth-based economy.
Without the promise of mass production, mass marketing, mass consumption, and high growth, the current economic system can not be maintained.
This will form the motivation for a mass production, mass sales type of production structure. Mass production and mass sales result in mass consumption, which leads to the formation of a waste-oriented society.
In any case, how fixed costs are handled defines the state of the economy.
Therefore, the fact that fixed costs clarify the influence on the proportion, profit and costs involved with assets is the key to building a fair economic system.
Fixed costs form the core of the workings of long-term funds. Fixed costs form the backbone of substantial assets. Long-term funding is closely related to the time value.
In other words, fixed costs form the base of added value. The possibility of temporarily leveling spending has become an incentive for huge amounts of capital investment. In the background of this, innovations in financial technology lie hidden.

People can not exceed their limitations other than through a belief in God.
Those who despise God will perish through their own limitations and arrogance.


ページの著作権は全て制作者の小谷野敬一郎に属しますので、 一切の無断転載を禁じます。
The Copyright of these webpages including all the tables, figures and pictures belongs the author, Keiichirou Koyano.Don't reproduce any copyright withiout permission of the author.Thanks.

Copyright(C) 2015.8.10Keiichirou Koyano