I am still working on the wording of the 1st Law:
for the moment it looks like this -
- Debt based Economy is Inflationary
- Internet based Economy is Deflationary
- Emerging Internet Economies Rapidly Deflate Debt Economies
What we see happening now is Government attempting to maintain or protect their debt based models by lowering, in the U.S., for example, Fed Rate which effects the Overnight Lending Rate that banks are charged to stimulate a greater flow of Debt based spending and lending. In London we see a lowering of LIBOR, the London interbank Offered Rate. Ultimately this will not work. The house that was bought in 2005 is going to continue to lose value as the Internet Economy overpowers the Debt based economy. People who trade stocks through the Internet are going to continue to gravitate to the $1 trade and no amount of credit will entice them to go back to a $30 broker fee. Shoppers will more intensely look to the Internet to find the best price for the best product (defined as the product that they want to buy) and will not pay more. All markets will continue to shift and adjust to a Deflating World Economy.
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