Economics requires “a revolution in technique”

Would economists be better off starting from somewhere else? Some think so. They draw inspiration from neglected prophets, like Minsky, who recognised that the “real” economy was inseparable from the financial. Such prophets were neglected not for what they said, but for the way they said it. Today’s economists tend to be open-minded about content, but doctrinaire about form. They are more wedded to their techniques than to their theories. They will believe something when they can model it.
Mr Colander, therefore, thinks economics requires a revolution in technique. Instead of solving models “by hand”, using economists’ powers of deduction, he proposes simulating economies on the computer. In this line of research, the economist specifies simple rules of thumb by which agents interact with each other, and then lets the computer go to work, grinding out repeated simulations to reveal what kind of unforeseen patterns might emerge. If he is right, then macroeconomists, like zombie banks, must write off many of their past intellectual investments before they can make progress again.
Mr Krugman, by contrast, thinks reform is more likely to come from within. Keynes, he observes, was a “consummate insider”, who understood the theory he was demolishing precisely because he was once convinced by it. In the meantime, he says, macroeconomists should turn to patient empirical spadework, documenting crises past and present, in the hope that a fresh theory might later make sense of it all.

Why infinite competition in a domestic market will ultimately crash the market

Competition between global players will spur competition
Create innovations and lower the cost of goods
But infinite competition will cause destructive competition
Lowering the price until your profit = zero
Then you have a collapse where no goods can be produced anymore
Especially in a domestic market
Horizontal competition is good as it will create
A broad spectrum of goods as diverse as the oceans
But Vertical competition will cause the same type of good
To drop drastically in price until profit = zero
So it is unsustainable and unproductive
So everyone must co-operative to prevent destructive competition
Where the knowledge of markets will cause
Everyone to shy away from goods and services
That has very low margins or profits
Ultimately get higher profits and wages
Welcome to the New Economy.

Where the Knowledge of Markets will bring Maximum returns

The most important factor in the New Economy is the “Knowledge of Markets”, without it, it is almost impossible to determine the “Demand” with the right “Pricing” so as to limit the “Supply” to prevent “Destructive Competition” so as to maximise the “Return Of Investment” for scarced resources, without cutting back on the Labour component. The key role is sustainability, where the production of goods and services where pricing is maximised so as to offset higher costs of labour and resources, it is therefore possible to sustain a job for every person in the global economy when all the imperfections of the global markets is resolved. 
The world is like a musical chairs with each country rotating its role in the production of goods and services, with its global interconnectedness, anything that happens in one part of the world will definitely affect another. Other than governments that need to prudently balanced their budgets, the financial markets are fraud with risks that only proper regulations will bring back the financial health with austerity measures and sacrifices the top G20 economies need to undertake to undergo policy changes to achieve this goal.
The global market is big enough for everyone with Free Trade Agreements that will bring prosperity to every economy. It is the “Destructive competition” element which will drive down goods and services until it is unsustainable and unprofitable that needs to be eliminated to bring health back to the global economy. Therefore it is imperative for every governments to co-operate and impliment what is necessary for the blueprint of health and share their knowledge in order to prosper collectively, as a crisis cannot be averted without the co-operation of all.
Trade protectionism is not as effective as “Pricing your competition out of your markets” in the New Economy, it is not necessary to create barriers anymore. By correctly pricing your good and services with the Knowledge of Markets, it is possible to have control over your own domestic markets, you can remove all barriers according to the FTAs, and embrace the New Economy.

http://www.youtube.com/watch?v=Q-zp5Mb7FV0&feature=related

Price will determine Demand and Supply

Let’s take for example Apple’s iphone
Let’s assume there is only one market – Singapore
The product life cycle is about 2 years
Where after 6 mnths the price will be reduced 25%
After 1 year the price will be reduced 50%
After 1.5 years the price will be reduced 75% which is the lowest possible
Upon introduction the iphone is priced $599
Where the demand is 10,000 pieces monthly
If Demand=Supply the constant is Price=$599
If you increase Supply beyond that
The Price will drop
Fact is in real life other than that is the “Time” constant
Where there is “multiple markets” to complicate things
Considerations like the “Lowest Costs” to produce the iphone
Where “Labour”, “Materials” and “Land”
Will be outsourced to countries with the “Lowest Costs”
Based on these assumptions the ROI is 40%
Which is the maximum possible for the manufacturer Apple
With Total control of its Supply chain and Logistics
With advanced monitoring of the Demand of iphone via its stores and website
It is possible to “Maximise Returns”
A new concept for the “New Economy”
In fact with market data on multiple markets
It is possible to tweak “Supply”
To meet “Demand”
To get the “Maximum Price”
Thereby maximising the use of scarced resources
Without overproducing to cause a drop in “Price”
Giving maximum returns for “Wages”
Whereby ending “Destructive Competition”. 
The Old Economy method of overproducing until
“Supply” is more than “Demand”
Will only cause a drop in “Price”
It will not help you get “Maximised Returns”.

I am an expert in data collection, processing, and analysis

Business intelligence (BI) is defined as the ability for an organization to take all its capabilities and convert them into knowledge. This produces large amounts of information that can lead to the development of new opportunities. Identifying these opportunities, and implementing an effective strategy, can provide a competitive market advantage and long-term stability within the organization’s industry. [1]
BI technologies provide historical, current and predictive views of business operations. Common functions of business intelligence technologies are reporting, online analytical processing, analytics, data mining, process mining, complex event processing, business performance management, benchmarking, text mining, predictive analytics and prescriptive analytics.
Business intelligence aims to support better business decision-making. Thus a BI system can be called a decision support system (DSS).[2] Although the term business intelligence is sometimes used as a synonym for competitive intelligence (because they both support decision making), BI uses technologies, processes, and applications to analyze mostly internal, structured data and business processes while competitive intelligence gathers, analyzes and disseminates information with a topical focus on company competitors. If understood broadly, business intelligence can include the subset of competitive intelligence.[3]

“Throughout your work life, you need to learn the skills of every department in your organisation, so that you remain productive in your old age by the increased in knowledge. Without an overall understanding, you are not able to solve problems, that is the reason why you get dedundant and retrenched. That is how you create valuable staff.” – Contributed by Oogle.

Nobody has my skills because I have worked a full circle in every industry and an insight into every business processes including the economy, stocks and futures, accounting, real estate, insurance, advertising, media, food and beverage, hotel industry, healthcare, diseases, research/development and even IT, the internet and technology. I cannot afford to learn everything in-depth but I manage to learn everything to get my job done. It was a lifetime of suffering for me but now I can help everyone increased their knowledge and brain power and help everybody find decent jobs. That is my mission from God and I need to fullfill my oath. I will impart my skills freely and bring prosperity for everyone so that everyone in the world will also succeed. That is the only way I can solve Hunger and Poverty, Diseases and Inequality.

“The entire world’s labour force needs to move from unskilled labour to skilled labour so that productivity increases will compensate for higher salaries, a better work life.”

“It is no use learning a skill for life and cannot have an understanding to solve problems, very soon you get redundant and retrenched. So you need a lifelong retraining plan to stay relevant.”

“Destructive competition is a stupid way to make money, it will only kill the markets, the market is big enough for everyone if you have the intelligence.”

– Contributed by Oogle

Crossing the Bridge, if you cannot get pass, you will never reach the next

By Saumu Jumanne

This is how to attain your business goals
As a human being develops in different spheres, dreams for a worthwhile future are part of living. And those dreams are attained by setting up goals and working towards their fulfillment.
One almost universal dream is financial independence, the subtle spirit that lives in the hearts of entrepreneurs.
The difference
 A dream is something you hope for, something you see, but presently it is intangible while a goal means setting up a path to walk in and putting your mind into it in terms of planning.
 The dreams of an entrepreneur fires one to set up business goals. This calls for planning ahead with a clear objective on what to achieve.  Business goals are usually two pronged- financial and non-financial. A good dreamer will set targets which with some inspiration are realizable or attainable.

Financial goals
As an entrepreneur you expect to be in a positive financial situation in the future. In order to reach there, you make your targets. How much do I want to earn? How much do I want my business to be worth? Where do I want my enterprise to be in two, five or ten years? Those are some of the question that crops up.  And it calls for setting up good strategies to attain those goals. In business language we are talking about financial planning.
Financial planning
In order to achieve your financial goals, you need to have good financial planning which can be reviewed every now and then as per the reality on ground and future projections. Financial goals acts as a way of gaining control over your money.
 To succeed you must identify and list all your financial goals. Then you need to estimate the time (set deadline) to be taken to achieve each goal. For instance, identify the goals that might be attained within a period of less than 1 year, medium-term (1 to 3 years) and long-term (5 years or more). This means that, the short term and medium term goals focuses  much on how to attaining long term goals.
 It is also important to estimate the cost of each goal (how much money is required to attain each goal).  Then determine how much to save on a  weekly or monthly basis to be able to attain your goals. Remember you need to proceed with the normal daily life while making some savings.
 Without a budget for your goals, they will hit a cropper.  You must have a plausible budget that will help you identify priority areas.
In other words, all what we are looking at today, is PLANNING what you want to achieve in the future and IDENTIFYING resources needed to make your dreams come true.
As an entrepreneur it is unforgivable sin not to know exactly what are your financial goals and how you plan to make them good.

Along the way, it is always advisable to keep on evaluating progress made. This can be at any interval which is convenient. It can be monthly, quarterly, semi annually or  annually. Leaving that element is suicidal to your enterprise.
Evaluations helps to review progress and take measures to redress shortcomings and move into the future at a point of strength. If you find that you are not making satisfactory progress on a particular goal, it is time to re-evaluate your approach and make necessary changes.
It is very satisfying for an entrepreneur to achieving planned goals thus making your dreams come true.
To attain your financial goals is much like finding a unique place that you had never been before. Finding your way there is a challenge but following the steps I have shared here will let you taking less time.  Human beings, more entrepreneurs do not plan to fail but rather fail to plan.
What hammering home is that good financial planning is a way forward towards achieving your business goals. The more detailed your plan is, the better the chance of reaching your determined destination in the least amount of time.
After all planning in business is the core of successful which shows you exactly where you want to be now and in future financially. But my friends remember achieving financial goals requires not only planning but some sacrifices as well…. Next week, best wishes. ( saumu.j@gmail.com )
*The columnist teaches at Dar es Salaam University College of Education (DUCE).

Distance Learning Ideology for a Lifetime planning of Knowledge

Ideology translates to the science or study of ideas. However, ideology tends to refer to the way in which people think about the world and their ideal concept of how to live in the world. This is slightly different from philosophy in the sense that ideology encompasses the concept that one’s ideals are the best way.
Philosophy on the other hand may examine the way ideology affects others from a more distant perspective. Philosophy however may become ideology when a philosopher sets forth ideal concepts for the way people should live. Plato’s Republic, for example, is his ideology of the best way to proceed in life.
The term ideology also may be used to describe the shared beliefs of a group of people, for example a nation, a sect of a religion, or a group of theorists. The term was most likely coined first by the French philosopher, Count Destutt de Tracy, who used the term in the 1700s to describe the more specific definition of the science of ideas.
Distance education or distance learning is a field of education that focuses on teaching methods and technology with the aim of delivering teaching, often on an individual basis, to students who are not physically present in a traditional educational setting such as a classroom. It has been described as “a process to create and provide access to learning when the source of information and the learners are separated by time and distance, or both.”[1] Distance education courses that require a physical on-site presence for any reason (including taking examinations) have been referred to as hybrid[2] or blended[3] courses of study.
Distance Learning is the best way to ideally take a course at the lowest costs possible to upgrade oneself for a Lifetime planning of Knowledge. Local technical colleges and universities could easily partner with foreign technical colleges and universities where technology will bridge the gap to provide training materials at the lowest costs possible to free lecturers and teachers to concentrate on more important matters, and easily provide a wide array of topics to increase knowledge at a time and pace according to the student. If executed properly, a Lifetime planning of the courses and the path to take will greatly keep the student relevant and stay employed for the challenges ahead where technology will advance and increase the brain power to multitask.

I have now completely passed my knowledge for everyone to succeed, only the last bit of increasing your brain power and my inventions belongs to the UN, play games with me and I will withdraw the last bit of information and let Jesus handle you.

– Contributed by Oogle.