Wednesday, February 28, 2018

Re-post: Lower Credit Rating = Higher the Risk Premium = Higher Interest Payment

* Posted on Monday, August 08, 2011 *

The credit rating tends to be determined by the frequency of trade of this national debt. Long (buy) = higher the rate; Short (sell) = lower the rate. This decline in the credit rate means rise in the risk premium so that the interest payment has to go up. The investors (the saving curve) requires higher security on investment to the government (the investment curve): The saving curve shifts left along the investment curve. Therefore, the quantity traded goes down, and then the value of this share goes down...

Monday, February 19, 2018

Power of Logic

Many human individuals tend to rely on their experiences and cultural-traditions as the base of their decision making processes and the measure of social justice. These measurements are based on what have happened in the passed, and these individuals following this method tend to implicitly assume their past events will repeat in the future as similar to the past.

Of course, human individuals may be only able to acquire their knowledge used for their analytical inference is highly limited to what they have already known. Nevertheless, their decision making process for their personal life choices and social justice in their living environment exists to create the path for individuals leading them to their desirable pleasant future instead of limiting their imagination to the past events and experiences having already happened.

Then, there needs to be a principle tool enabling individuals to stimulate innovative actions and estimate their future outcomes, and this ought to be a logical inference. For example, mathematical logical analyses enables individuals to imagine the existence of zero and infinity as well as abstract formulae, complex numbers, other various mathematical notations.

Knowing there are infinitely small and big scales in our living nature infers there is always a possibility of discovering an unknown characteristics in both much bigger or smaller scales than it has ever been discovered. Mathematical logic expresses something abstract which does not exist to measure substances existing in the real nature such as complex number. But, an invention of this abstract has enabled individuals to use this abstract as a tool for helping their thought process to create a highly innovative output.

The disadvantage of logical inference is that there is no objective measurement which can self-evaluate the validity of a process and a conclusion of logical inference like mathematical axiom. Someone may use logic just for a mere intrigue purpose to convince others for some personal interest. Someone may use an unpleasant criteria basing logical inference which can be irrational, scientifically false, or utterly unproductive, and this logical inference guides other individuals and their environment to these unpleasant paths.

There are some philosophers claiming there ought to be a universal principle guiding logical inferences to prevent individuals falsely following a path deviating from their believing path. By contrast, there is a counter-argument suggesting that it is highly risky to hypocritically assume there is a universal principle basing logical inferences. Even though this universal principle sounds good and looks like functioning, a good intention does not always induces a good desirable outcome. It should leave some freedom of choices for individuals for testing their own hypothesis and compete with each other unless it considerably harms others in an unfair way.

While hedging for any potential risk of failure, bets by logical inferences should be carried on in order to invent creative ideas and productive solutions. Finding an interaction of things will lead to find something new by discovering a core element of an interaction of ideas and things. Union of ideas and things will lead to a new alternative something. Abductive reasoning will lead to discover an unexpected relation of many things.

*** Please kindly read my following essay for your further understanding about my emphasis on logical analyses and inferences. ***

- Read Ethical Principles explained by Mathematical Logic Pt1

- Read Ethical Principles explained by Mathematical Logic Pt2

- Read Ethical Principles explained by Mathematical Logic Pt3

- Read Ethical Principles explained by Mathematical Logic Pt4

Sunday, January 14, 2018

Bitcoin/Cryptocurrency V.S. Fiat-Currency

Fiat-currency issued by central-bank/government has its solid physical form whereas the cryptocurrency does not. However, the mechanism of how this cryptocurrency works is closer to the original concept of currency

These cryptocurrencies cannot be excessively printed more than the market demands for the sake of the monopolistic organisation such as central-banks, governments, and big corporations aided by them.

The problem of cryptocurrency is that it requires the technology and the mining capacity of computers across the world to back up with. It is still not convenient for everyone enough to frequently use in our daily life yet.