The Trauma of Economics
Markendeya Yeddanapudi
The Trauma of Economics
Suppose a person who became an expert swimmer is conditioned to believe that unless he holds to a raft he will drown. The belief gets so integrated into his system, all his expertise in swimming will not save him from drowning when he does not clutch to the raft. Today the fate of the human, totally under the subjugation of economics is similar to the person holding on to the raft. We live as economic beings, the Phantoms of Newtonian mechanics. We can no longer even believe that we are part of the planet earth, the limbs of nature and that we continuously derive health, strength and rapture from nature as emotional beings and not as economic machines. We do not even feel the emotional symbiosis as limbs of the organism, the Biosphere.We have completely left the basic emotional symbiosis of the Biosphere and analyze or divide and divide in the mania for Cartesian analisis, we do not add and understand; expand as parts of the Macrocosm. The flow of Theism from nature is stifled and we find the repudiation of nature itself dressed up as Atheism.
One who does not smell, hear and sense from nature and actually lives the cyborged life is an Atheist, even when he eloquently defends Theism, Gods etc where the great Gods help and uphold the law enforcement.
Today every organism of the Biosphere is put to trauma by economics. Actually the so called scientific outlook is search for markets and the accountancy fantasy profit. The basic fact that my income is your expenditure and at the macro level, there can be no profit or loss is obfuscated away, by swamping the students with the Theories about profit. Profit actually is the euphemism to cover up the continuous maiming of nature. We are continuously taking from nature more than our ecological share and ignoring the fact that our trade and commerce is continuously harming nature.
The Microcosm divides and divides and analyzes the micro actions. The Macrocosm on the other hand studies the effects of continuous additions. When we recognize the basic fact that we are part of nature and are living as limbs of nature, we are actually feeling as the Macrocosm. Then you have to realize that the assumption of the outsider observation to do science is most unscientific or lunatic. The Scientific outlook must leave the outside observer assumption and accept the feeling based approach now called Bias. The Universe is expanding, which means that you are also expanding, and everything has to be included continuously. The expanding whole continuously expands the subject matters of perception and understanding. The method is development of feeling, the opposite of Cartesian analysis.
In every University every faculty must expand and all faculties must merge and then expand, ultimately to become the free and healthy nature. It must lead to the starting of ‘Free Nature Parks’ without any tampering. In the Park the faculties forget their separation. They actually must realize that harming nature under some torn fig leaf of scientific observation must be left for good, better to make the Jain Sages head faculties.
To justify the protest as giving education, every university must start a free nature park and enable the students feel their limbhood of nature. Every student by feeling as the forest leaves participation in the present social Darwinism, or participation in the economic rat’s race.
We are living in nature suffering from the trauma caused by our economics.
YM Sarma
Rajaram Krishnamurthy
YMji Today every organism of the Biosphere is put to trauma by economics. Actually, the so-called scientific outlook is search for markets and the accountancy fantasy profit. The basic fact that my income is your expenditure and at the macro level, there can be no profit or loss is obfuscated away, by swamping the students with the Theories about profit. Profit actually is the euphemism to cover up the continuous maiming of nature. We are continuously taking from nature more than our ecological share and ignoring the fact that our trade and commerce is continuously harming nature.
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KR HOW ECONOMY IS DEFINED OR VIEWED?
An economy is a complex system@@@ where resources (land, labor, capital) are managed to produce, distribute, and consume goods and services. Its universal function is to solve the fundamental problem of scarcity—balancing unlimited human wants with limited resources to determine what gets produced, how, and for whom.
The Core Functions (The Universal "What, How, and For Whom")Every economy, from a small local community to the global market, performs these three essential functions:
Production: Allocating resources (like raw materials, labor, and technology) to create necessities and wants.
Distribution: Moving those goods and services from creators to consumers, often facilitated by a centralized medium of exchange (money) and trade infrastructure.
Consumption: The ultimate utilization of goods and services by households, businesses, and governments to satisfy their needs.
Key Systems of Organization
While the universal functions are the same, societies organize their economies differently based on the degree of government control vs. individual freedom:
Market Economies (Capitalism): Individuals and private businesses own the factors of production. Prices and resource allocation are dictated by supply and demand.
Command Economies (Socialism/Communism): A central authority or government controls the means of production and dictates what is produced and how wealth is distributed.
Mixed Economies: Practically all modern nations operate as mixed systems. They rely primarily on free markets but use government regulations, taxes, and public services to stabilize society and ensure equity.
Primary Sectors of Economic Activity Regardless of the system, economic activity is universally categorized into three main sectors:
Primary Sector: Extraction of raw materials (e.g., agriculture, mining, forestry).
Secondary Sector: Manufacturing and processing raw materials into finished goods (e.g., automobile assembly, textiles).
Tertiary Sector: The service industry, which facilitates trade, distribution, and personal needs (e.g., banking, healthcare, retail)
II In economics, M0, M1, M2, M3, and M4 are "monetary aggregates" used by central banks to measure the total money supply in an economy. They are categorized by liquidity—how quickly and easily an asset can be converted into cash for spending—and range from the most liquid (M0/M1) to the least liquid (M4).
1. M0: Reserve Money / Base Money
- What it is: The foundational base of the money supply, also known as high-powered money. KR REQUIREMENT-BASIS
- Components: Cash (coins and paper notes) circulating in the public, commercial bank reserves held at the central bank, and other central bank deposits.
2. M1: Narrow Money
- What it is: The most liquid forms of money that are readily available for everyday transactions KR EVERYDAY TRANSACTIONS CARRY DIFFERENT FACES NOT ONLY JUST EXPENDITURE AND INCOME, AS INCOME IS NEVER DEFINED BY ANYONE ANYWHERE. IF RECEIPT IS INCOME, GIFT IS NOT? BUT SOME NATIONS DEFINED GIFT ALSO AS INCOME AND MANY NOT.
- Components: M0 (excluding bank reserves) plus demand deposits (checking accounts) held by the public in commercial banks.
3. M2: Near Money
- What it is: A slightly broader measure that includes M1 plus highly accessible, short-term savings accounts. KR ITS YOURS BUT YOUR ACCESS IS CONDITIONED.
- Components: M1 plus savings deposits with banks, money market funds, and (depending on the country) savings accounts at post offices.
4. M3: Broad Money
- What it is: The most closely watched metric by major central banks (such as the Federal Reserve and the Reserve Bank of India) to gauge overall economic activity and inflation. {KR THIS MONEY IS YOURS BUT ON BEHALF OF YOU WITHOUT YOUR CONSENT FOR MERE CUSTODY, RIGHTS OF OPERATIONS DONE BT 3RD PARTY}
- Components: M1 plus time deposits (CDs or term deposits) with commercial banks, and larger liquid assets.
5. M4: The Broadest Money
- What it is: The least liquid and most comprehensive measure of the total money available in the entire financial system. [KR MONEY UNDER ROLLING IN A BROAD SENSE}
- Components: M3 plus all other long-term deposits, such as non-bank financial institution accounts or all deposits with post office savings banks (depending on the specific central bank's definition).
Note: Definitions, abbreviations, and the specific use of M3 vs. M4 vary depending on the country. For example, the US Federal Reserve primarily focuses on M1 and M2 (M3 was discontinued), whereas central banks in India and the UK utilize broader aggregates for their economic analysis.
III People have many needs, such as the need to eat, to live in an apartment or in a house, to move around, to meet others, to learn new things or to dress as they please. This is why people cook or go to a restaurant, buy a car, a bike or a ticket for public transport, meet up with friends to go to the cinema or to the theater and therefore they attend training or go shopping. People try to meet their needs in very different ways. In most cases, they are unable to fulfill all of them on their own. Often, they will have to rely on others who work in companies and offer different products and services.
When we buy products and services to meet our needs, we pay specific prices for them. We thus exchange our money for products and services.
To do so, we often use money we got for our own contribution to the economy. If we work for a company, for example, we will receive money (a wage or a salary) which we can use to buy things. On top of such paid work, however, there is also a lot of unpaid labor that is equally important to ensure that an economy can function. Such labor includes household tasks, childcare or caring for other relatives. Most of the time there is no remuneration for this kind of work. It is frequently also called care work.
If we want to buy products or services, money is a means of exchange. Exchanging money for goods is a key mechanism in our economy.
Our means of exchange are limited, though. The time we can spend working is limited, for example. When we work, our employer pays us money in return. Some people’s income is higher than others’. But no matter how high our income is, it is limited. The resources a company can use for production are limited too. Such limitations come with the challenge of decision-making. We have to decide what we want to spend our money on.
So, we engage in economic activities to meet our needs as best as we can with the limited resources we have. Companies engage in economic activities, to produce their products and services, thereby fulfilling their corporate purpose. We enter into an exchange with others to meet our needs. This results in different trade relationships that we can image as a cycle. Throughout the so-called economic cycle, households (private individuals), companies as well as the state all enter into different types of relationships with each other.
Trade relationship 1: goods and consumer spending We refer to private individuals as “households.” Households have different needs and cannot fulfill all of them by themselves. Therefore there is companies that produce and offer goods (products and services) for sale. Each company specializes in the fulfillment of certain needs. While some companies produce food, for example, others develop smartphones or design clothes. Households pay money to companies for the products and services they want. The money that is exchanged in this context is also called consumer spending.
Trade relationship 2: work effort and income Companies need different resources in order to produce goods. First and foremost: people to do the work. People work in all kinds of places, for example: in companies, educational institutions, public administration or social institutions. In return, they receive an income in the form of a wage or a salary. They can use this income for consumer spending to fulfill their needs. People's consumer spending enables companies to pay their employees, cover other costs and make profit.
Trade relationship 3: taxes and public goods Money and goods are not only exchanged between households and companies. For example: Private individuals can use a number of services without directly having to pay for them. Think of roads, cycling lanes, sidewalks or assistance from the police, for example. In the domain of health care and education, people in Austria do not have to pay directly for certain services either because everyone should have equal access to them. Households and companies pay a part of their income and consumer spending to the state in the form of taxes and fees. The state then uses these revenues to provide public services. Both households and companies can make use of these services in different ways. Households, for instance, may benefit from family allowances, pension payments or education. Companies may receive subsidies or funding for research. Taxes allow for the provision of various government services.
The economic cycle shows that private households, companies and the state interact with each other in many ways. Together they shape the economy by exchanging products, services and money. Example Mr. MOHAN is an accountant (employee) in a small company (employer). In exchange for his work, he receives monthly payments to his account (salary). If Mr. MOHAN has lunch at a restaurant, he spends money (consumer spending). In return, he receives a meal (good). His payment is part of the [NOT WHOLE] restaurant’s income. The restaurant then spends part of its income to buy food from suppliers. The suppliers generate their income by selling products to the restaurant. At the same time, the restaurant also pays social security contributions as well as income tax and sales tax to the state. The state, in turn, uses some of this money to build roads or to offer educational services (public goods). This creates a continuous cycle in which households, companies and the state exchange money, products and services. It is important to emphasize that we are describing a simplified version of the economic cycle here. In reality, these processes are much more complex, @@@ especially due to economic relations with other countries. Legal, political, social and cultural conditions play an important role, of course.
The economic cycle reflects many individual decisions: Households decide what they want to spend their income on, companies decide how much they want to produce of which product and the state decides about tax levels, for example. Markets are where all of these decisions intersect. They have a supply side and a demand side. Companies that produce bikes, for example, represent the supply side on the market for bikes. They can set a certain price for their bikes. If the price is very high, potential buyers – households or other companies – might be less willing to buy bikes. As a result, companies might find it difficult to sell their bikes and thus might be forced to lower the price. At a lower price, more households and other companies will probably want to buy bikes. This is likely to increase demand. Increased demand, in turn, could lead to companies raising their prices, so they can benefit from the increase in demand. The interplay between supply and demand on the market will ultimately lead to an equilibrium price. The equilibrium price reflects the price level at which supply and demand match. With changing demand the equilibrium price level will also change. If more people want to buy a product, for example, while its supply remains the same, its price will rise. This also happens if supply goes down (e.g. after a bad harvest) while demand remains unchanged.
The principle of supply and demand is not only valid for bikes, but for a broad range of products and services on various markets in the economic cycle. Next to the market for products and services, there is also a labor market. As employees, private individuals form the supply side and companies, as employers, represent the demand side. There is also a capital market, where the supply of and demand for money and capital come together. All markets follow the principle of supply and demand.
Households, companies and the state may have different interests regarding the exchange of products, services and money. Households want to buy good products and services at a low price. They also want to receive a fair income for their work which, according to them, should be as high as possible. Companies want to make profit by selling their products and services. This could mean, for example, that they want to buy production materials of the desired quality at the lowest possible price. In their view, the labor required for production should not be too expensive either. The price they want for their goods and services, should be as high as possible. Similar conflicts of interest also arise where the state is involved. Households and companies would like to receive as many state-provided services as possible while paying as little taxes as possible in return.
IV ECONOMY DOES NOT MEAN YOUR LOSS IS MY INCOME IT’S A COMPLEX SUBJECT. WITH A MILLION ON HOLD ONE MAY STARVE; WITH NOTHING ON HOLD, ONE MAY LEAD A ROYAL LIFE. 13700LAKH CRORE BORROWAL, IF CIRCULATED AS REVENUE EXPENDITURE, IT SHOULD HAVE CREATED AN INFLATION (NOT 28000 PER HEAD DEBT) BUT, STILL RANK NO 1 WITH 10 OUT OF 10; AT THE SAMETIME, 3 OTHER STATES ARE IN RANK 2,3 & 4, BY POINT 1 TO 7 DIFFERENCE ONLY; BUT THOSE STATES BORROWAL WERE TOO LOW; THERE IS NO INFLATION THERE; THERE IS GOORD PROGRESS IN THOSE STATES. BUT HERE NEITHER PROGRESS NOR INFLATION; IF SO IT MEANS THAT EXPENDITURE FALSIFIED IN ACCOUNTS WENT AS INCOME OF CM FAMILY? SO TRAUMA OF INCOME IS YOURS OR SOME ONE ELSE?
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K RAJARAM IRS 17626
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