MARKET PROTECTION OF FINANCIAL INVESTMENTS
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MARKET PROTECTION OF FINANCIAL INVESTMENTS
With the replacement of the valuable gold money by non-gold money the
applied administrative governmental protection of financial investments
has been ungroundedly preserved.
The disadvantages of the administrative governmental protection of
financial investments are an infantile disease of the market economy
and a fundamental reason for budget deficits, accrued huge national
debts and runaway financial crises.
Due to the administrative governmental protection of financial
investments the respective governmental (macroeconomic) financial
system gets self-blocked without any chance of being activated again
and the inflation value for a definite period of time is always greater
than the market price of the invested financial resources.
The ongoing application of administrative protection of financial
investments is harmful both for the corresponding government and the
individual financial investors, because:
- it will directly counteract to the virtual governmental
interests because the respective financial management will continue to
accrue administrative expenditures without getting any market revenues
and so it is going to get self-blocked;
- for a definite period of time it will always cause damages to
financial investors due to the self-originating and self-developing
runaway inflation.
To protect against the above mentioned weak points, the
administrative protection of financial investments, being applied for
many years, can be replaced by the more efficient market protection of
financial investments.
By applying the technology for market protection of financial
investments the corresponding government (macroeconomic) will have the
following basic possibilities:
1.To eliminate the main reason for the current runaway currency crises,
inflation processes and financial self-blockage;
2.To terminate any accruals causing inflation;
3.To receive due market revenues;
4.To pay a relatively lower market price for issued securities;
5.To work under conditions of budget without annual budget deficit;
6.To stimulate the required investment activity;
7.To regulate the required level of unemployment;
8.To maintain an exchange rate regulated by the market.
9.Determining the price of market governmental (macroeconomic)
protection of financial investments by the Mitev Method:
P1= (R2 x P2) / (R1 + R2)
where:
P1 - price of market governmental (macroeconomic) protection
of financial investments;
R1 - primary decentralized financial
investments resource;
R2 - centralized financial resource;
P2 - market price of centralized financial resource.
10. Implementation, scientific and technological support of the
technology for market governmental protection of financial investments
by a system of two base rates of interest and the difference between
them; price of market governmental protection of financial investments.
The basic results from the economic research for market protection of
financial investments are published in the book “Economic Alternative”,
Ivan Mitev, Palmira 1997, Stara Zagora, Bulgaria, ISBN 954-8864-13-4.
The forecasted total beneficial economic effect as a result of the
worldwide implementation of market governmental protection of financial
investments is for over 10 000 000 000 U.S. dollars per a calendar day.
Thank you very much for your interest to the results of my
long-term efforts.
Best regards,
Ivan Mitev
Bulgaria
6000 Stara Zagora
Address for correspondence: Ivan Mitev,
E-mail: [email removed]
04 mar 2006, 01:55 Anonymous