This is the structure economy.

When the market matures, it should be converted from quantity-oriented to quality-oriented. Accordingly, it is necessary to strengthen the restrictions and monitoring.

The market should be changed from mass production and mass consumption to limited production of diversified products, well-planned consumption and consumption that meets demand.

Let me show the example of the hotel industry. Hotels used to accommodate many guests at reasonable prices. But now, it is necessary to allow customers to select the quality of the hotel facilities and equipment depending on the income, requests and objectives of individuals.

For that purpose, pursuit of better quality is required. It is expensive to maintain high quality, so securing profit has priority.

Accordingly, in order to maintain quality, it is important to strengthen the restrictions as well as to keep a closer watch on dumping.

The economy is the product of human consciousness. The consciousness recognizes an object only against a relative standard. A relative standard means comparison and contrast. Comparison and contrast come into effect by the position, move and relation. The position and move mean the distance between objects and time difference and difference in change. That is to say, they come into effect based on the premise of making a difference.

Therefore, in order to make the economy come into effect, rational and structural differentiation and distinction are necessary. Rational and structural differentiation and distinction means differentiation based on competence and performance as well as distinction depending on the functions and roles of individuals. Namely, this is a merit system.

Discrimination based on other attributes such as race, religion, sex and place of origin should be eliminated, because it makes society rigid.

Distinction should be made rationally and structurally depending on the income, requests and application of the object.

In professional sports, players are divided into first category and second category depending on their skill. And, depending on their competence, skill and performance, it is possible for players to move from the first category to the second category and vice versa. Thanks to this system, the quality of professional sports has been maintained.

If any factor other than ability were to be added, the system itself would be rigid. Professional sports cannot stand as professional sports.

Next, let me talk about correction of disparities. Considerable disparities distort the distribution structure and make organizations more stressful. In the worst case, it would destroy the social structure itself. Therefore, it is necessary to confine the social disparities within a certain range. To do this, redistribution of income and minimum life security will become necessary.

Also, it is necessary to establish economic units and guarantee autonomous activities by multiple management entities. Establishment of economic units means to have a number of economic entities (communities) have a divided autonomous function as needed. In terms of professional baseball, it corresponds to a baseball team.

Dividing an organization into units is expected to lead to the following:

First, freedom of choice is ensured to individuals.

Second, the autonomy of the organization can be maintained.

Third, functions are decentralized to restrain dictatorial power.

Fourth, the divided organization aims to maintain an appropriate scale.

Fifth, it makes market principles work and brings a mutual supervisory effect.

Sixth, disparity may be restrained.

This is the structure economy.

It is important to identify economic crimes. If it was wrong to manipulate accounting to cope with a decline of profit, then every corporation would have done the wrong thing. An economic crime is a violation of market rules for the sake of oneself, i.e. an act to obtain profit illegally by deceiving, deluding or destroying the market.

It is not right to regard an act of generating no profit while following the market rules as a crime. But, receiving unreasonably high pay is close to criminal behavior.

In fact, the modern era began when government bonds could not be repaid. Democracy and capitalism began when a ruler borrowed money from his people. I think the process of disposal among nations can be applied to the process of bad debt.

What should we do if public bonds cannot be repaid? The first option is to replace them with something that need not be repaid. The second is to reduce the value of money. The third is to reduce the value of borrowing. The fourth is debt default. The fifth is to freeze borrowing. And the sixth is to change the system drastically.

In the first option, what is something that need not be repaid?

First, it is paper currencies and securities. Second, it is capital, i.e., stocks. Third, it is tax. Fourth, it is assets. Fifth, it is debt, i.e., transfer of borrowing.

In fact, these five measures were taken at the dawn of the capitalist economy, thus setting up the bubble.

Borrowing consists of the following elements. The first is the principal, namely the body of the borrowing. The second is the interest, which is the value generated as time elapses. The third is time. The fourth is a lender. The fifth is a borrower. The sixth is collateral. The seventh is payment method. The means of settling borrowing is hidden in these seven elements.

The history of public bonds started with the question: what should we do if bonds cannot be repaid, rather than be repaid steadily? This question created parliaments and caused wars and revolutions.

We reach a standstill if we are obsessed with the idea of having to repay public bonds. If they cannot be repaid, there is no solution other than to recognize that they cannot be repaid. But, it is not good to defiantly declare that the bonds cannot be repaid. It would be necessary to clearly identify the reasons for default.

In the past, some organizations decided to purchase bad debts using long-term national bonds or perpetual bonds and capitalize them at the same time.

p.s. The present financial system is just like a bucket of which bottom has been

fallen out of. Therefore, I think we should fix the bottom rather than stop the

flow of water.

　　　　　　　　　　　　　　　　

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