Page 18 - The 40 Ch. Book by James Hong or 洪祥智

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
Inflation is by printing money, but the fact is that inflation is