NOW HAPPY, MERRY CHRISTMAS YOU DESERVE
Recently the Policy Board of the Bank of Japan for the first time admitted that Japan is undergoing deflation.
According to a report on their internal discussion, some members of the Policy Board held the people so cheap that they actually said that the BOJ should not publicly tell the truth about the state of the Japanese economy being in deflation.
If economists in BOJ are so foolish and arrogant, how terrible the bias of the FRB members might be.
Anyway, it might be a kind of Xmas present that the Policy Board of the Bank of Japan for the first time admitted that Japan is undergoing deflation, so that BOJ must take necessary steps to cope with deflation, which will surely test their ability, including those foolish and arrogant members of the Policy Board.
(It is said that most of economists have never been taught about deflation in school.)
SECTION I: CHRISTMAS MESSAGE
Everybody is working in Japan on this day called Christmas Eve.
However schools are going to be closed for two weeks, one week before January 1 and another after January 1.
It is so, since January 1 is the holiest day for Japan, though Japanese people nowadays do not celebrate Lunar New Year unlike Chinese.
However, why did the son of God come to live on the earth?
Is it because He wanted to enjoy a happy party or a gorgeous feast with happy people?
Did He come to the world to befriend rich and happy people?
Did He come to the world because everybody is happy on the earth?
Indeed, without making somebody unhappy, you cannot be happy.
Without neglecting unhappy people, you cannot stay happy.
If you help poor people, you will be poor, too.
This simple rule makes people hate and despise one another eventually.
Capitalists never love workers; rich men never love poor men; and lucky guys never save unlucky guys.
Accordingly, the human society would collapse through strife, fights, and war.
So, how to avoid this catastrophic situation is a key to success of civilization.
As mankind could not find solutions for themselves, the son of God came to this world simply to teach mankind how to avoid this catastrophic situation.
His teaching is that if capitalists do not love workers or rich men do not love poor men, the God will destroy the world.
His teaching is that if workers do not love capitalists or poor men do not love rich men, the God will not love workers and poor men in return.
SECTION II: CAPITAL FOR PROFITS
Economists do not truly understand that capital is for more money, though labor is not only for humble money.
Capital is for profits. Labor is mostly related to human dignity.
One million dollars capital is for one dollar return or more.
But, one minute labor is worth invaluable return.
SECTION III: CAPITAL FOR PROFITS (2)
With profits "P", capital input "C," costs and expenses "X", and multiplier "k":
P = k*(C - X)
(Note: if both "C" and "X" are very large, "k" can be also very large.)
However "X" is used to purchase labor force "L" and other facilities and means "F":
X = L + F
P = k*(C - L - F)
So, if your religion tells you that the most important thing in this world is to increase profits as much as possible to any given amount of capital input, you would try to decrease "X," especially "L", as much as possible. You will surely do it, since your religion tells you that you do not need to respect dignity of labor by workers.
Ideally, "L" should be zero and "F" should be zero, though we can assume here that "F" has a fixed value. Then only meaningful diagram is as bellow:
This tells what capitalism is. This is the basic for economics to analyze and understand capitalism, since desire for huge money is universal enough to be adopted in non-nonsense theory.
Capitalists love blindly more and more capital, less and less labor costs, and thus more and more profits.
Capital and profits can increase toward the infinite, but labor costs hit the bottom at zero.
In the eye of a capitalist, there are only a huge number for money but no dignity of workers at all.
But, as capitalists are blinded by desire, they do not truly understand workers are also consumers and clients without whom no profits are possible and thus whom they must respect. Otherwise, they think simply that they can find consumers anywhere in the world if they pay small, little, or no wages to workers in their facilities.
So, economics should evolve to teach capitalists how they should respect workers as they should thank consumers and clients in order to protect human civilization.
To maintain civilization, the balance of profits, capital, wages, and consumer power should be carefully adjusted and upheld, taking away the concept of the infinite capital and profits.
Conversely, capitalism is a religion that recommends desire for the infinite capital and profits by decreasing labor costs in their facilities ultimately to zero while pursuing new consumers all over the world.
Consequently, capitalism destroy the world and themselves eventually.
If one ideology is ultimately harmful to mankind, it must be eradicated.
Now you may start to define new capitalism or modified capitalism that is oriented to an optimum profit level with an ultimate purpose for protecting human dignity and civilization and eradicating bad conventional capitalists.
*** *** ***
I saw recently some signs above my head in the blue sky in the daytime and the dark sky at night.
It is not threatening at all, though somehow extravagant for me so humble on the earth.
If you have less money than I have, you would be surely blessed than I in this Christmas 2009.
(Beethoven No.9 Symphony is widely played in Japan at the year end customarily for some reasons. But, Beethoven No.10 Symphony might match the mood in Christmas No. 2009.
http://www.youtube.com/watch?v=PYvYZFukRqo )
Joh 12:23 And Jesus answered them, saying, The hour is come, that the Son of man should be glorified.
Joh 12:24 Verily, verily, I say unto you, Except a corn of wheat fall into the ground and die, it abideth alone: but if it die, it bringeth forth much fruit.