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Friday, June 3, 2011

The Financial System II

Management of financial systems of a nation, it is mainly depending on supply and demand and without much of the control except manipulating some of the issues that are in our power.  There are economic indicators to help us for manipulating.  There are many ways we could use as our weapons to forge ahead and stir our national economy upwards.

Inflation is one of the indicators. One of the factors for causing inflation, it is the manipulating by cartels and they should be illegalized and heavy penalty must be imposed.  The supercomputer will eliminate all cartels. Other factors and there are many factors to cause the inflation, there are many ways, the present system are capable of dealing with it.  The supercomputer will give us more, up to date and useful indicators so that we could arrest the issues earlier and more effective.

The financial aspects handle by the supercomputer is directly under the nation central bank for manipulating the nation economics.  Major decisions are needed to refer the nation captain of administration.

The compilation of demand and supply of a particular line of product or service can be done at a finger tip and it can be highly accurate.  The pattern of demand, the past, the present and the near future are done by supercomputer with just only a few second.  Likewise for the supply, Vendors, past supplies, currently supplies and future intending new products/services/financial services supplies are with the supercomputer (Refer the Industrial and Commercial systems). The pattern of demand and supply, for a single products/service/financial services/foreign exchanges, for whole industries, for the overall situation, it is a useful data for manipulating a nation financial development.

The pension fund, the employee provident fund, the retirement fund and many other same nature of retirement funds, these funds are good financial weapon for stimulating the national growth. The supercomputer is good and able to be accurately to signal the economic circle by ways of data.  Using the data and the diagnosis by the governor of the central bank, it is going to be supply more than demand locally; other nations are predicted lack of economic strength in the near future, especially the trading partner’s nations. This is the time to use the pension fund and manipulating the demand by increasing the purchasing power. All public employees under the minimum salary brackets shall be issued bonus of monthly nature, increasing all monthly pensions with lower brackets.  Increasing additional and special interests payments for all government control pension funds for lower monthly withdrawers.

Relaxing all credit control, credits cards limits and new issues, posted dated checks, extending OD by the banks, relaxing accepting risks for credit limits and any other financial instruments, it is the right time to create virtual money expansion but channel to the lower earnings brackets group.

Demand and supply of currency, it is the main mechanism of determining the rate of exchange. There are more tourists to come in for tours, there are more foreign demands for products and services; the rate of exchange goes up. There are attacks on a currency as it is expected the said currency is going to fall.  Selling the currency virtually based on expectation and the rate is falling.  This is speculation and it is not healthy.  However, it is a speculation that the currency is going to go up and foreign currency pour in and by this time the country needed cheap money policy to stir the demands.  This is a time that speculation is good for a country. This is the concept of free economic.

Free economies is defined, it is without any form of control and intervention by the central bank of a nation.  Intervention and fiscal control is opposite to free economies policy.  There is another theory, the free money policy.  However, no one single theory is adopted by any nation.  It is combination of one or more of the theories.

The supercomputer compiles data of past foreign demands from importers and past supplies from exporters, past data from tourists’ arrivals and their spending. These are the data of indicating behaviors of a given time plus the past rate of exchange.  The said past data plus present data and the future projection data from the supercomputer, the relationship of such data is very useful for manipulating and decision making for the nation foreign exchange policy.
Foreign funds flow in by ways of fixed deposits, share purchasing, properties buying, and business investments. These activities are easily track and compile by the supercomputer, by hourly, daily, weekly and any period as to the nation wishes.

Such a financial systems being in place and adopted by all nations, we are going to have no financial crisis.  The foreign exchange rate is truly reflected the nation’s financial strength and their financial potentials.

Next Topic:  Security Systems I

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