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  Debt Economics: Part Three

  •      Source: Appendix 5
         Implications of the Implementation of the Concept of Simple(st) Mind
         in terms of the Theory of Natural Evolution DIA Natural Selection in the Living Reality (Jovanovic, 2004)
        “Multidimensional Space versus World of Dialectics - Dialectic Interactive Approach in Use ”.

In the following "APPENDIX 5" written five years later (2004) the focus was put on the various manifestations of market malversations DIA manipulations and speculations. By even deeper reconsidering the unsustainable gap in dialectically long run between the value of share and dividend, understood in terms of real covering its true value by the (in meanwhile) paid out dividends, it was shed more light on the change of the trigger and driver of the classic economy: profit(ability). In other words, it was also turned the attention on the visible trend of pushing aside, not only the production of goods and services DIA basic principles of the classical market (trading with these classical outputs) but the profit(ability) as well, as the major reason for establishing (classical) companies, without mentioning, in netmodal terms, the highest possible DIA feasible level of employment DIA deployment of actors, activities and resources, which are available DIA creatively accessable (with)in the marknet/actornets DIA (pro)active and creative actions.

As a result of it, today are clearly visible the consequences of implementation of their binary DIA dual way of thinking (yes/no, black/white ...) in the business (financial) reality. READ, "The Methodological Consequences of the Way of Thinking based on the Static Mathematic". In other words, "their proper remark and identification of the major drawback of the book value of the corporation in terms of time DIA space (historical costs) DIA accounting value of the achieved profit that neglects importance of cash (flows) for the corporation DIA simultaneously considering some business transactions as a part of the realized profit, which might not be (eventually) repayable in time in space", HAS BEEN AGAIN understood by them and as such implemented in terms of the neglecting DIA putting in the second plan the importance of PROFIT(ABILITY), generally speaking! On the other hand, this creator of knowledge by applying AGAIN the developed dialectic interactive approach in terms of METHODOLOGICAL reconsidering this dialectical interactive content IN TIME (FUTURE, presence, past) DIA SPACE (SPIRIT, mind, matter), has questioned this obvious favoring the thesis at the expense of a antithesis, respectively he emphasised THE FACT, based on the theory of finance that the value of the share and the paid out dividends are dialectically interrelated (conditioning each other).

In other words, he raised again the question regarding the neglecting one of the basic postulate of finance that "the value of the share today is equal to the present value of (all of) the paid out future dividends" and REPLACING IT COMPLETELY in terms of implementation of their recognizable (recti)linear (bi-polar) DIA dual (binary) way of thinking (yes - no, true - false, 0 - 1, black - white ....), that is, the value of the share is EXCLUSIVELY determined by its PRICE on the financial market. Their claim is based on their remarks that the accounting profit does not include some hidden values of the corporation such as, for example, the TRUE VALUE of its employees, which according to them is possible to be done in the financial markets that is, by some kind of the CASINO’S WAY ? Because this way of the determination of the "TRUE" value of a corporation reminds this creator of knowledge on the betting (predicting the results of sport events), this dialectical content can be reconsidered in this way of a "wager" as well. By the way said, all of us have not to be the financial experts, in order to be able to follow this debate related to this kind of the scientific content (as an important part of the theory of international finance). Probably, you have already noticed, that this developed dialectical interactive approach does not remind at all on the existing methodological approaches, which have been thaught at the universities worldwide but it is much closer to the common people. In other words, this dialectical content under consideration can be understood by the mindual capabilities of the HUMANE non-experts in the realm of finance too. YES, in the creative works and articles, by this creator of knowledge was demonstrated the power of the MADE AGAIN FREE SPIRIT, as a final result of the separation of the dialect spirit from the fused (coalesced) mind! From this reason, also do not be scared to do the same, by releasing thy SPIRIT and MIND freely and fearless (from eathly them)!

Seen from this "betting's" perspective, 'they' DIA them want to say and convince all others (experts), that these external participants in this kind of the financial betting DIA forecasting the results of "sport events", are able to determine better the true (hidden) value of the players of participating teams and its (facility-)staff. WHETHER IT IS SO IN THE REALITY? In short, to the opinion of this creator of knowledge, even in the case, they are in right, IT IS NOT RELEVANT AT ALL, because anyone, whoever participated (betted) in this kind of the "financial market" (casino), that is, bought this kind of the share, KNOWS VERY WELL that the gains (and loses as well) ARE ALWAYS HIDDEN IN THE SURPRISES (of the day) and not in the (real and true) expectations of the most of the participants. Particularly, in the scenario in time DIA situation in space, when such surprises were organised and accomplished by them (behind the dark sceneries). In addition to this, the DIFFERENCES between the price of share (determined by the financial market) and the present value of share (determined by the paid out dividends to the owners) can be easily calculated, and as a result of this, there is no actually the true surprises. Keep in mind, in any kind of the natiocratic environment, based on the well-known two-polar DIA dual (rectilinear) "yes-no, true-false ....", that is, a quarreling and raw-competing environment, no any established societal category, by definition, is not long durable, seen from a dialectically long run perspective. As examples, reconsider the duration of the established ancient, antique .... ex-civilizations, empires .... What then to be said about such a fragile societal category, as it is the company. Just consider the Forbes's list of the largest ones for a few decades back, and compare it to the today's one.

In other words, as a consequence of it DIA seen from this dialectically long run perspective, the each of the previously mentioned DIFFERENCES (potentially fragile financial bubble) is a time (DIA spatial) bomb, implanted within the living DIA business reality, just because of the durability of their natiocratic conceiving and comprehending of the NOTION-FUTURE. All this, without a need to be mentioned the problematic of this kind of "business pyramid", caused by the insufficient rate of economical growth, as a result of the hyper-production DIA the continual reducing of the purchasing power of the majority of people (concentration of the money in "a few" hands), continual reducing rate of child-births in the (high) developed countries, and thus, the reduced needs and wants of the elders, and the like. Bear in mind, a share can be only acquired BY THE CASH (after paid taxes), that is, this financial transaction has nothing to do with the problematic of any kind of historical costs. Because cash-sums of this kind of the potentially (or real?) very fragile financial bubbles (one more upshot of the "syndrom og big"), respectively the differences between the financial reality (determined by the achieved profit) and the financial expectations (POTENTIALLY FUTURE COSTS: determined by the promised return on the investment), often surpasses the available budgets of any larger state, that is, the budgets of the most existing states, hope, you are finally able to understand, what kind of the potential disaster, caused by explosion of only one, or a few such bombs, was talked about. Or uttered it in another way, it cannot eternally be waited for the distribution of the achieved profit to its existing owners! Keep in mind, it is anyhow taxed during the business year, although for the tax-basis was used the accounting value of profit, which still includes HISTORICAL COSTS, and not the value of the "profit", calculated by the financial value of a corporation, achieved on the FINANCIAL MARKET. Again, too much of the well-known simple-minded "screaming - noise": hubbub, boom, boom, related to the problematic of the financial value of corporation DIA value of shares on the financial markets, to the opinion of this creator of knowledge. But this (tax-) dialectical content belongs to an another story. These and the similar kinds of the liabilities are also recognisable features of the latest established natiocratic order (debtism), based on the running of its economics in the way of continual making of debts DIA debtors, on the individual level, on level of the group's way of organising, state's ... world's levels and. In other words, resale of the future of its (still unborn) citizens in advance, as a consequence of the (narrow minded) satisfaction of the greedy needs and wants of the elite as well as the simpler minded persons and vulgar ones, whose time horizon has been reduced on their (recti)linear conceiving and comprehending (hermetically closed barrel of) the PRESENT TIME, that is, after them DELUGE.

Apart from this, even if these external experts were in right, that is, successfully forecasted the all results of these "sport events on the financial markets", including even the revelation of all their hidden values too, then it is FOR SURE THAT ALL OF THEM ARE ACTUALLY LOSERS in this "casino game"! The reason is simple: The organizers of this kind of casino also took EACH TIME IN ADVANCE their high (participating) fees. As a final result of this fact, ONLY they and those to whom will be distributed a large part of this (financial) cake ARE ALWAYS REAL WINNERS IN THIS KIND OF THE "MARKET CASINO". Or reinterpreted it in the financial way, which is subject of the consideration of this creative article, only the organizers of this participating (financial markets) in the determination of the price of share, respectively of the real value of the joint-stock company and those to whom will be distributed a large piece of this kind of the financial pie [investment banks, brokers, big shareholders-professionals, participating with large sums of money, top-management, board of directors, various kinds of the financial vultures ....] ARE ONLY CERTAIN WINNERS.

Frankly said, this external observer, as the METHODOLOG and evaluator (by profession too) of this kind of the gambling on the financial markets (casinos) has nothing PERSONALLY against doing it, UNDER CONDITION if it were not SUCKED OUT the money, which should not be part of this hazardous game: savings of the citizens, pension-, health-, social .... funds, which are GUARANTEED BY THE STATE, as a protector of interests of the citizens (individuals), OR it is actually the protector of the interests of various group societal categories?. In other words, the sucked out cash that should be compensated by "the state", that is, BY THE TAX-PAYERS (worldwide). And all it, again to finish in the pockets without bottom of these "professional fishermen" of this kind of the easily catching "fish", that is, of the fresh (of tax-payers') cash, which was PURPOSEFULLY transferred into these troubled financial waters by politicians. When 'they' DIA them would not have been that greedy, the more honest way would be transferring tax-payers' money directly to them by politicians, that is, paying this kind of the imposed "racket". In either way, related to this dialectical content under consideration, all of us, finally have got opportunity in the year 2008, to find out the TRUE HIDDEN (or obscured?) value of the employees in the financial sector (and much broader as well), and THIS FACT CANNOT BE A SUBJECT OF A FURTHER DISCUSSION. Or perhaps, it is needed a new crash of the (global) financial markets, followed by an even bigger economic crisis, to be again found out it?

Moreover, this creator of knowledge creatively travells (methodologically) further (by going BEHIND the caught challenge in time DIA space) and questions another completely EMPTY BABBLING, as a final result again of the implementation of their binary DIA dual way of thinking by the propagators of the natiocratic finance economics. In other words, their "justifying the business policy of the increasing market value of a corporation at any price DIA increase of the value share at the expense of not paying out dividends from the achieved profit by empty babbling of the simple(st) ones, READ, "An Upshot of the Conflict within the Simple(st) Mind: The Concept of a Simple-Minded Person", that is, according to their opinion, if a shareholder needs cash, (s)he can SIMPLY SELL the shares". Even by the neglecting the influence of a taxing received income, selling and transaction costs, spent DIA dedicated time DIA space (with)in this business (ad)venture DIA particularly, the correction of it by the, in the meantime, accrued (DIA compound rate of) inflation, after deducting the own cash investment in this span of time DIA space, is not left much, if anything (FOR SMALL SHAREHOLDERS). But the point of this dialectical content is, that it mustn’t be forgotten that this (natiocratic) shareholder lost (the mainly fictive) right on the PARTICIPATION IN THE SHARING OWNERSHIP of corporation and the wished (steady DIA) CONTINUAL cash income as well, respectively participation DIA distribution in the sharing of the accumulated profit over time DIA space. Or uttered it in different way, the participation in the sharing of achieved profit through paid out dividends was DIA should remain the major incentive for establishing of corporations, in the similar way as it was the foundation of the classical companies to have been achieved profit. Or put it in another way, the problematic of the accounting profit, either as a consequence of the historical costs (classical approach), or as a consequence of the historical capital (financial market's approach) SHOULD NOT BE a barrier to the distribution of the profit to its owners!

In other words, each individual, particularly, those who have intention to establish family DIA those who have already done it wants a steady DIA CONTINUAL cash income DIA related cash flows over time DIA space. Or reformulated it in netmodal terms, they want stable income DIA the achieving stability in the netmark, seen from a dialectically long run perspective. Now it is not difficult to guess that this, at the first place, empty babbling for naive ones, opens the door for different kinds of manipulations. For example, those shareholders who bought too late the shares will not participate in the sharing of achieved profit DIA distribution of the dividend cake, and it is clear, who decides DIA has information when it will be done. The owners holding large number of shares can in this way re-bought the shares necessary for electing the wished top management DIA board of directors. On the other hand, any elected top management DIA board of directors has been already in advance "bought DIA corrupted", in particular, the top management that apart from the (obligatory) share package is rewarded by high salaries DIA various kinds of paid bonuses (CASH IN THE HAND) and other benefits as well, whose major task is to be increased the market value of the share (at any price), by attracting more and more (new) shareholders, who are ready to pay higher and higher sum of the cash for the (existing, old) issued shares, so it is not truly interested for the long run consequences of this kind of the implemented business policy, as well as for the development of new products and services.

Even in the case when they were changed by the new (ideologically DIA 'theologically' alike) top management, in their contracts there is always clausal on compensation for the lost income until the end of contract: "We to you DIA you to us in time DIA space", an another kind of manifesting natiocratic solidarity. The similar case in (all) natiocratic societies, is with the top ranking state officials, politicians (on various levels) and other elitary members of such societies. In other words, instead of punishment in the case of (business, political ....) failure, for them is always provided rewarding, valid so long until they are loyal to the elitary natiocratic (international) network, understood in terms of respecting the adapted natiocratic values, including the finding new lucrative job by the so-called [simple(st) mind] head hunters. At the same time DIA space, the ordinary people DIA workers, divided in various CASTES are denied of these rights. Furthermore, a (temporal) worker can be dismissed as they want it, not only without any kind of compensation but often without any right to enjoy at least the paid taxes, in particular, if (s)he is foreign descent, dissident, or any kind of the natiocratic outcast, as a final result of the implementation of CASTE DIA CASTING SYSTEM, characterised for any natiocratic society DIA implemented in one or another way. This natiocratic caste DIA casting system is implemented even in the issuing of shares in terms of dividing them in various A, B ... classes.

On the other hand, according to this creator of knowledge, the objective of group units (companies, corporations ...) is continuous DIA continual cash (flow) circulation DIA (providing more certain as possible) cashing of it. Due to the initiated dia-processes of time in space DIA space in time, expressed DIA impressed in it in terms of value loss / depreciation of money, this creator of knowledge, again applying dialectic interactive approach, reconsiders this dialectical interactively creative content in terms of thesis and antithesis. In other words, a new brought up, educated and edified members of (top) management DIA board of directors should make decision on reinvestment of the (part of) acquired profit (THESIS), when was established by them, after reconsideration of various scenarios DIA situations in time DIA space (of the marknet), that the received cash is still profitable in this time DIA space, transforming in that way this cash (space in time) again into time in space, respectively preparing (stakeholders’) soil for successful DIA continual (collective way of market) running business in this collectively renewed space in time (matter in past). On the other hand, when it was come to conclusion by them that this "cash in hand" (ANTITHESIS) might be more valuable DIA profitable for individuals (shareholders) in this concrete span of time DIA space, it should be paid out dividends, respectively preparing (consumer’s) soil for successful DIA continual (individual way of market) running business in this individually renewed space in time (matter in past). Since each business sector follows different life business cyclus, on the marknet will be retained the dialectically wished colourfulness, diversity and the related differences, which are desired features of netmark, seen from a (dialectically long-run) perspective. This creator of knowledge hopes is not difficult to feel the purpose of this dialectical interplay and mutual interacting between these two initiated dia-processes.

In the "Appendix 5" devoted to the rule of the thinking of simple(st) mind DIA simple(st) ones CLICK here to read: "The Concept of the Simple(st) Mind", was also questioned, seen from a dialectically long-run perspective, reasonability of implementation of the typical natiocratic motto, "all is about money" DIA "all can be bought by money". In a financial market, its various financial instruments, products of the so-called financial engineering, were used for "hedging" the taken business risk DIA its (uncertain) financial transactions, or additional squeezing DIA sucking money, if you so will. Or said it in different way, it was undermined the possibility DIA feasibility, seen from a dialectically long run perspective, of realisation of an another postulate of finance that the higher return on investment {thesis} requires riskier market {antithesis}. In other words, the money spent on this kind of the hedging has to be additionally earned DIA it is not difficult to imagine who is able to achieve it and in which way: Instabilisation DIA destabilising (particularly global) market. In short, the big players on the financial market are able at the right moment DIA right place, (carefully) following (by their omnipresent cuckoo’s eggs) the espied phases of this (created) repeatable DIA reapable business (life) cycle in time DIA space, to transform DIA (mis)using it for sucking out the accumulated cash (cream) within it or the pawned / mortgaged (real) property and the like. From all these reasons, the futures and (call & put) options, as financial instruments for the hedging business risk, are creative kitch of the financial engineering.

From the afore elaborated reasons, it was also suggested by this creator that should be added DIA displayed additional columns that contain the information of the value of the share today based on the computed present value of all of paid out dividends up to current day, together with column containing data how many years have gone from the day of establishing corporation. Anyway, in spite of the all uttered by this creator of knowledge, the last time when he had opportunity to read the available info related to the values of coorporation's shares on the financial markets, these additional columns, easily understable to the people in large, as a very important orienteer in time DIA space for ordinary (small and potential) shareholders, were still missing. To remind you these data should not be computed manually but displayed using the already available ITC accessories. Keep in your mind, these simple additional info contributes to the considerable increasing the efficiency of existing financial markets! This idea was argued in terms of if a shareholder's company postpones paying out dividends for a too long period, it by definition additionally loads up the imagined (future) span of time DIA space for the amount of all the unpaid (postponed) dividends until then, demanding higher (and higher) rate DIA ADDITIONALY INCREASED AMOUNT OF THE NEEDED return on investment. In other words, this is an another example of the OBSCURED building in time DIA space a business DIA financial PYRAMID because of the afore mentioned durability of their natiocratic conceiving and comprehending of the NOTION-FUTURE. If to this were added, the external and internal GLOBAL DEBTS, both on the citizen, company and the state level (space in time) DIA a large part of it CANNOT BE FOR SURE PAID BACK within (by the law) predicted DIA available span of time in space, seen from the todays perspective and witnessed by me, thou, us, this creator of knowledge hopes, it is clear what is the true source DIA trigger and driver any (future) economic DIA financial crisis.

However it is feasible to be postponed it in terms of pushing this debt burden of dark obscurity from a part of the world to the another one, or from the the rich(er) world to the pour one, if you so will, in hope that the larger part of it will be transfered DIA DISPERSED on the global citizens DIA greedy companies, in terms of even further (blurring DIA obscuring of this dialectical content DIA) exploitation of them at the expense of working DIA living in misery, but sooner or later this financial buble, like any kind of the buble, will explode on the world (DIA regional) level. In the meantime, the getting out of the obscured DIA stinky 'air' will be felt by the ordinary citizens, manifested, for example, as economic recession. In addition to this, the previosly uttered shows DIA proves that even in the earthly (business DIA living) sphere also acts some kind of the "invisible hand" (mechanism of the market) as well as the fact that the made earthly debts ("sins") cannot be so easily DIA SIMPLY "forgiven" with the 'mercyful' (?) WRITING them OFF, both on the individual DIA various group (company, state, ....) levels, as someone might believed in it, by listening the various new (created) 'theologians' employed DIA deployed in the business and political DIA social scientific sphere, without previously to be done "genuine DIA true repentance", understood in terms of the taking suitable steps in purpose of the prevention of FURTHER DIA CONTINUAL REPETITION (of this false "religious" ritual) in time DIA space. By the way said, to any reader of the similar interpretation of some statements noted down in the "Acts" included as such ones in the New Testament, the above uttered dialectical FINANCIAL content sounds very familiar: Take the burden of debts ("sins") made by others, so they, in such a way unloaded, can make easier new ones!

The only true difference between the exposed natiocratic (religious?) methodological approach DIA concept and the corresponding heavean's one regarding this dialectic content under consideration, is that in the earthy terms the burden of made "sins" (DEBT) will be loaded ALWAYS DIA dispersed in the greatest extent on the weak and pour ones, in particular on those who in fact the least had to do with the above uttered continually repeated financial "religious" rituals, that is, again will be favoured the "evil" (debt) at the expence of "good" (no debt). As a result DIA consequence of this way of thinking DIA acting and "creating", in such a purposefully created natiocratic working DIA living natiocratim environment, it is "BETTER" to be "sinner" (debtor) than "unsinner" (living without debt), according to them. In particular, it is true on the group (company, state, ...) level, that is, it is "BETTER" to be a owner(s) of the company, state(wo)men of such a state in great debts ("sins": FOR EVER, if it is possible DIA feasible), than to be an employee (without or with debts, egal) DIA being compelled to work (captured "small fishes") for such kind of (NATIOCRATIC) business & state(wo)men, which in fact owe (DIA being indebted by their parents / predecessors) to some higher group entities ("fishermen") of this kind of the developed obscured financial scheme, and FROM THIS REASON perfidiously "compelled" to further and (even) further over time DIA space to harness these created objects (debtors) referred to.

Finally, it was underscored the missing concept of shareholder’s organising of small (till medium-sized) (family's) shareholder's companies, where all (or the most of) employees have (internal) stakes / shares in these corporations, as an alternative to putting into focus the strategy of exclusive establishing DIA growing company for sale, that is, for the external financial market, but rather on development of its own products (services) for the external market, bringing together within this established actornet employees, resources and activities. In this way, the employed are in position DIA participation in decision making, either to increase paying out dividends (from the un-invested part of profit) at the expense of lower salaries or to increase salaries and wages (at the expense of costs), depending on the(ir) appraisal, including the political, economic and familiar considerations DIA calculation, what is more favourable for them, considering this dialectical interactively creative content from the (tri)angle of them as employees (THESIS) DIA them in the role of (share) owners of the company (ANTITHESIS), seen from a long perspective of their involved families (SYNTHESIS DIA RENEWED THESIS). In other words, for a better functioning of the free market economy, there is a need for additional kinds of property ownership in order to have been increased competition between and among the participating actors within the marknet. And this ought to be taken as an example DIA pattern for thinking, how it could be done.