Infinite Spreadsheet

Comment to the Federal Reserve Board (the central bank of the United States to provide the nation with a safer, more flexible, and more stable monetary and financial system) on Capital Reserve by Hugh Ching, Post-Science Institute, PO BOX 2663, Fremont, CA 94536 USA (With Comment to National Science Board) [Subject: Non-Violable Laws of Nature vs.... Man-Made Laws] Capital Reserve Requirement will affect the money supply in the economy and could be an important tool to regulate the economy. The relevant equation is PQ=VM (Price x Quantity = Velocity of Circulation of Money x Money Supply), which could be a non-violable law of nature. In the future all man-made regulations should be based on non-violable laws of nature in both physical and social sciences. The solution of the problem of value posed by Gerard Debreu in his book Theory of Value is another important non-violable law of nature discovered by Post-Science Institute. The solution of value, being the foundation of decision-making, should be considered the beginning of rationality. Most of the economic factors, of which capital requirement is just one, have mutual dependence. Capital requirement, thus, depends on other factors. In fact, it does not make much sense to just discuss one of the factors or making laws to regulate just one factor. In particular, capital requirement depends on the stability of the economy, which involves around 50 factors, corresponding to the numbers of inputs to the solution of value. Most importantly, all man-made laws should be based on non-violable laws of nature, the most relevant of which for setting the capital requirement are PQ = VM and the solution of value. The economy should move from the Pre-Friedman economy of man-made regulations to deregulated Free Market of Milton Freidman to the Post-Friedman economy regulated by non-violable laws of nature. In conclusion, the capital requirement policy should be replaced by policies based on PQ=VM and on valuation, which might make fixed policy for capital requirement ...Read More