Some Tentative Laws - To be updated/changed when needed July 20th, 2008 - last updated Aug. 15th 2008 mpg First law of wartime currency
expansion
The
positive economic effects of wartime currency expansion/debt turn
negative after approximately five years.
Second law of wartime currency expansion The
recovery time from the inflationary affects of war time currency
expansion/debt is inversely related to the size of the conquered
territory's underlying economic assets and directly related to how
quickly they are incorporated into the conquering country's economic
system.
Third law of wartime currency expansion * 1)
The
interest rate (eventually)
is inversely related to the amount of war
time debt.
2) The interest rate (eventually) is directly related to the amount of war time currency expansion. Fourth law of wartime currency
expansion
The
chances of a war occurring are directly related to the rate of
deflation and inversely related to the rate of inflation.
Fifth law of wartime currency expansion The
size and length of the next war is inversely related to the economic
recovery time of the prior war.
Sixth law of wartime currency
expansion
The
ability to wage war through currency inflation is directly related to
the number and size of economies willing to accept the aggressor
nation's currency/debt.
Seventh law of wartime currency expansion The
wartime cycles take approximately ten years to complete.
Special Note: If great care is not taken, each successive ten year cycle creates more and more underlying debt/inflation per capita necessitating bigger and bigger cycles of war (violating the Fifth law) thereby increasing systemic instabilities untill the entire system collapses. * Regarding the third law, if there are large amounts of debt greater than the carrying capacity of the economy (deflation) while at the same time there exists large amounts of currency expansion (inflation), the result will invariably be stagflation, and both the direction of interest rates along with the chances for war (the fourth law) will be problematical. - links added 08-30-09 This is just a very tentative analysis - there's a lot more work to be done. - mpg For more on this issue see....Effective Fed Funds Rate 03-24-07 - mpg |