Page 20 - 0 English Edition, the Book with Ch. 46 Added..docx

4.16 Money cycle
1. A good economy requires more and more funds to transfer
If you can share money with a lot of people, then this is a good

economy.
Let the money flow through the loop.

A=> B => C => A

4.17 Blind spots on the supply Curve
Supply Curve claim

Supply: The more expensive the price, the more goods people
sell.However, when the cost is high, even expensive goods,
people may not sell because of the reduced profits.

Therefore, the willingness to sell should look at profits, not
prices.

4.18 Accounting blind spots
accounting:

1. When an asset cannot be sold, the owner of the wealth is still
wealthy according to the accounting, wrong! The owner is very

poor.
2. Asset = liability + SE. More debt, more wealth, according to
accounting, wrong!

3 The cashier does not keep the sales record, so where does the
sales record come from?

4.19 Rich people:
The only person who has the ability to buy or consume is a

retire, because wealth is accumulated.
When young people are all bankrupt, humanity will face

extinction. (Because the elderly get the job first; the population
is reduced and fewer people are needed, so the young people are

unemployed.)

4.20 Inflation