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01 Value and Price - This section provides a good grounding in economics, it explains how and why money came into being and where it succeeds and fails and what is necessary for a healthy economy. What is here you won't find in an economics text book.

02 Modern Money - Here I look at the different kinds of money and then how almost all modern money systems work with fiat money issued by central banks.

03 Growth or Recession - What is growth and recession and is it a good or bad thing. Also how is growth or recession linked to inflation.

04 Lending and Borrowing - A look at the basis of lending and borrowing and the problems it can cause in an economy. Also looks at Usury and Islamic Banking. 

05 Capitalism - The capitalist is any person that invests directly or indirectly in search of a return. Here I look at risk, yields and forms of investment and ask what is the credit crisis.

06 Economic Health - TODO

08 Speculator or Investor - TODO

12 Statistics  - TODO

Any comments or questions to:


This is the result of three months study of fundamental economics and some other collected material for people trying to understand economics.

Discussion group on economics in relation to this site

Some new concepts introduced here that I have been unable to find elsewhere are;
  • Trade Chains which should form,
  • Trade Rings in,
  • The Trade Web of a healthy economy I can't find these vital concepts any place!
  • How stop loss orders (reverse trades) on the markets cause flash crashes and booms.
Some other concepts that seem to be out there but are undervalued are;
  • Price is not  Value - This concept is out there but seems to miss most economics books completely. The relationship between price and value I think is key to understanding economics.
  • Supply and Demand is totally unlike that shown in the text books.Traditional textbooks on the subject seem to shed no light on it at all with things like supply and demand curves that have nothing to do with real economics. Tell me one of anything, that if you double the price, the amount supplied doubles and the demand halves. No it doesn't work like that does it? (See Supply_and_Demand)
Is it possible that economists create mathematical models of what are mainly social phenomena hoping for results as accurate as those of physics.

In so far as the mathematics of economics, models real phenomena, it will give real predictions, and in so far as it models intuitive guesswork it will give intuitive guessed predictions. In computer terms "Garbage In Garbage Out."

There is no law that says money borrowed cheaply will rebuild an economy if it may be spent unwisely.

(C)2010 Tom de Havas. The information under this section is my own work it may be reproduced without modification but must include this notice.