And so it ends

Alas, for three of importance exams have come and gone.

This means an increased supply of thought for food for the rest of you.

Unfortunately for the world one superpower has yet to complete the exams.

VG.

Until he has finished we cannot rest.

But alas, the end of nemesis Paul Crompton's reign as supreme ruiner of everything economics has come to an end, and must now pass back to Cale as supreme ruiner of everything in general.

This power changeover aside, the question remains: Paul Crompton, Macro or Micro......or Cunt?

You Decide ;)

I found a fantastic passage in Crompton et. Al whilst studying one late friday night:

"Balance of payments accounts are maintained according to the principles of double-entry bookkeeping."

In case one reading this was unaware of what double entry bookkeeping was, Crompton or et Al provides an explanation:

"Entries on one side of the ledger are called debits and entries on the other side are called credits."

This second explanation, clearing up all confusion in regards to exactly what double entry bookkeeping is, helps to solidify the introduction of what keeps the Balance of Payments in balance. Although Crompton goes on to suggest Supply and Demand of Currency on the FOREX market, it remains in balance because the left side equals the right side. Your "Credits" equal your "Debits".

The left hand knows what the right hand is doing.

Pretty simple really.

Hence therefore, all of you motherfuckers complaining about how difficult ECON1102 is should toughen the fuck up and realise that international finance is based on one simple fact: the left hand side equals the right hand side.

QED

Second point of order: bellicose - adjective - demonstrating aggression and willingness to fight.

what a fantastic word

VG uses it,

Do you?

victorknowsexonomics feat. cale "the mystical ninja" herbert

thursday 25 october 2007
11.00 am
octagon lecture theatre

t'is the day of our last macro lecture with dr paul crompton. ye for it is a gloomy day and we doth not know when next we shall lay eyes upon those ears of his. but all was not lost, for there was one exonomics student who refused to give up hope of seeing his beloved mentor dr crompton again. so strong was his faith that he saw fit to take with him to the lecture, homemade brownies in a container of sorts not unlike that of tupperware. this student, this man, if you will, was cale.

now THIS is a guy who is worthy of having his own tributary web space. he's no victor goh, mind you but for those of us who feel intimidated by victor's grandeur and majesty, cale "the mystical ninja" herbert is a good starting point. not only does he make some duck off good brownies (T9 people will know what i'm on about), but he also managed to ask a question that stumped even the great dr crompton, who gave a very articulate "yes well... er... well it's... the thing is more complex than... ah... it's not... i don't have time to go through this right now, i'll get to it later". typical of dr crompton, leaving things until later, even humiliating defeat (and that is why he is vg's arch rival).

duck yeah cale, duck yeah.

props to cale "the mystical ninja" herbert.

why 'the mystical ninja'?

VG knows.

Do you?

Economic History

One little known fact about vg is that he is the inspiration behind many famous figures in economics and the world at large. He was the inspiration for Keynesian theory of Jonny boy here saw the effect on the ecconomy that Vg had after his autonomous (vg has infinite income thus his spending habits are not considered as a fuction of income, actually before his publisher made him change it, the equasion went AE=C+I+G+VG+(N-X) where VG represeents Victors spending on Bling (or Bring-bring)) spending or injection into the economy after his purchasing of Bling

Hence Mr Keynes saw comparisons between Victor and his dynasty and the governments of the day, coming up with his keynesian cross (thought up when John saw VG with a diamond studded Jesus piece). Hence autonous increases in government spending (or VG buying jewlery or grillz) can be used to close contractionary gaps in an economy where spending is insufficent to achieve full employment.However some wacky naysayers are all like, uhhhhhh u dont know how large an increase of spending u need tgo close it, along with other neo-liberal bullshit. These mofos, along with trying to iceskate uphill, forgot that this is VG we are talking about here. Any time any government needs to determine a budget, they simply give VG a buzz, to co-ordinate their spending with his bling purchases.



Hence Keynesianism (not a joke, im fucking serious, and if u dont agree, VG WILL rain down hellfire and brimstone upon u, just like that time with Milton freidman (pictured right), he knows what im talking about.) is the greatest policy tool that the nation has to determine an equitable and reliable economy.

Ahhhh, goo times, just like the time VG gave style to david bowie, sold ice to the eskimos, taught the world the difference between Antarctia and the Arctic (hint one has penguins) and introduced Ghostface Killah to Tony Starks, its quite awesome.



Oh wait, u dont know those stories?

VG DOES

sexonomics explained

Open market economy – think about it.

Free capital inflows and outflows. No trade barriers. Fixed exchange rate, such that external investors know what they will get depending on what they spend. This will allow for easy market penetration. Policies are in place to prevent overheating of the market, and contrary to Paul Crompton, inflation is flavourabl—I mean favourable. There is a requirement to have elastic protection for firms entering the market. This open market is designed to reduce unemployment amongst firms. Every firm should have a place to go to. No firm should be marketless – that is the linchpin of our open market economy. Of course, there are some firms that will favour the Asian markets because they are small and have potential for expansion.

Not all firms have the desire to enter the market front on – they use more unorthodox methods of penetration. We will call these firms ‘back-door firms’. This method is less preferred as it can have painful outcomes, both for the firm and the market. Finding its origins in Ancient Greece, popularity of this method has skyrocketed in places like San Francisco. The Church frowns upon this.

Of course there are some firms who have such potential for capital outflows that they develop into very very large firms, and thus we call them ‘corporations’. These corporations (e.g. Starbucks, McDonalds) are prone to taking the market by force, being so big that they force the smaller firms out. Some of these large firms have trouble pulling out of the market due to consumer sentiment. Consumers, having gotten used to being satisfied by these large firms, will do whatever they can to keep the large firms from pulling out.

For locals wishing to enter an open economy liquidity is essential. Without liquidity market penetration can end painfully with much blood on the executive office floor. Liquidity can be found naturally within the internal workings of a firm, or from external private equity partners such as KKY.

Premature outflows lead to unsustainable growth. Contractionary gaps are favoured within Asian markets, as they allow for more market friction. Expansionary gaps are common when the market gets overheated, but they are favourable to large dominant corporations penetrating them.

There is a small group present in the market, but we do not class them as market participants. This small group prefers to watch the interaction between the market and the firms. They are called ‘economists’.

the truth behind victor

i was asked the question the other day "who IS victor goh?"

after raising my eyebrows to the point of no return in disbelief that anyone would actually NOT know who victor goh is, i then mulled the question over in my head, searching for an adequate response. lo and behold, it dawned on me that there is no ONE answer to the question "who is victor goh?", simply because vg means different things to different people.

to some, he is the soon-to-be emperor of malaysia and since you can't spell malaysia without 'asia', his rule is assumed to extend to the entire big arse continent.

to others, he's just an insanely trendy stylish guy, goin about, doin his own thing, never leaving the house without at least 4 pieces of bring-bring.

to others still, he is nothing short of a deity, and i use the term 'short' loosely because there is nothing short about vg.

and the list goes on. really for the rest of us noobs, the sheer grandeur of vg cannot be truly comprehended. so while we may try to understand the force that is victor goh, there is only one person who knows the right answer.

vg knows.

no one else does.

sexonomics

KAPOW
sexonomics - the economics of sexual encounters and gameplay
more is to be discussed soon.
there is a capital surplus.....in my pants!
yuan to know how we are going on our macro assignments? if you dont want to know then yuanot our friends
proof reading - flavourable exchange rate much?





yuan to know what dramatic chipmunk thinking?
Victor does
Do you?

for all you macro students out there.

righto. undervalued yuan, cheaper exports, imports become more expensive. that is, it becomes more expensive for the good people of China to purchase imports while the foreign devils enjoy cheaper Made in China goods.

that gives us our tendency for a trade surplus ($400 bn). surpluses mean a higher demand for the yuan in global currency markets, which puts upward pressure on the yuan. but since the Chinese government has placed a restrictive band on the value of their currency, the actual price of the yuan is kept below market price, hence the concept of being undervalued.

back to the imports-exports though, the key advantage for China is that the undervalued yuan keeps Chinese exports price competitive in the overseas market. consider a revaluation of the yuan to its actual market price - Chinese exports would be more expensive and consumers of Chinese exports would turn to other countries like Vietnam and such and such. God forbid the Chinese lose any customers.

the other point here is that imports in China are more expensive than they should be, thus hindering demand for imports and increasing demand for domestically produced goods competing in import industries. while this could encourage growth in these sectors, it probably shouldn't be overstated, seeing as China's main imports are raw materials (inelastic).

so we have the trade implication of an undervalued yuan, halfway there.

i am quite hungry so i shall post this and eat something before i jump right back into things.

vg knows i'm hungry.

do you?