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Definitions
created on November 24, 2016
The entire theory of finance rests upon measuring: 1. The value of expectations (otherwise known as ‘interest rates’) and 2. Their impact on Intrinsic Value. It follows that, under Information Symmetry (across time, season, place, social hierarchy, etc.) the future value component of Present Value, impacts Current Price to the extent it fully reflects Intrinsic Value.
Conversely, under Information Asymmetry, Current Price reflects biased Intrinsic Value, which assures high benefits to those economic agents hoarding access to unbiased information. Ultimately though, Exponential Production Growth drops below Exponential Population Growth, which makes living standards unsustainable for all economic agents.
created on November 22, 2016
Similar to the May 2013 surge in U.S. Treasury yields resulting from the Federal Reserve's use of tapering to gradually reduce the amount of money in the US economy,The Trump Tantrum signals the surge in U.S. Treasury yields, resulting from Donald Trump's winning the US presidential election on an expansionary fiscal-deficit policy, budgeting high public spending, while lowering tax rates.