ExpertConsultant Blog

I was planning to answer some more questions but instead decided to make this post about one single question. This question came in various shapes and flavours but the main idea was: my theory supports “conspiracy theories” of different kind. If some of my respondents were happy about it others were definitely not.

Now this is plain WRONG. My theory actually destroys all the conspiracy theories in the world economics.

What is a conspiracy? It is when a person or group of people take actions based on their own will and later attempt to disguise it with something else. In fact my theory shows that all these actions were inevitable because system defines them. In conspiracy theory if you replace “bad” person with “good” person then the action changes from “bad” to “good”. In fact my theory says that action does not depend on a person, and changing main actors would simply make the action to appear either slightly sooner or slightly later.

Before we were talking about “real estate” and house prices as driving force. And I said that it is a great oversimplification. The driving force of any economy where the real wealth comes from is resources and manufacturing. Imagine this, if I am the only country in the world that produces oil, then I can simply stop selling it to the country with lots of money, financial institutions and “secondary wealth”. Will the secondary wealth be worth anything? No. Could they prevent me (without using military force) from putting any price on my resources? No. As you see secondary wealth could be destroyed in no time. And this is what all nodes possessing secondary wealth are very much aware of. Therefore these nodes are not conspiring but simply surviving. And it doesn’t depend on who is in charge of the nodes economically or politically.

The supernodes need backing of the secondary wealth by primary wealth. Therefore supernodes have to create situation when all income from primary wealth is distributed towards secondary wealth.

This is where supernodes create situation when using income from primary wealth inside the wealth-producing nodes is not safe. This is how wars, conflicts and instabilities are created. Anyone can look on the map, mark the conflicts and see what real wealth producers are neighbouring the conflict area. Now circle all main secondary wealth countries and see if there is any conflict nearby.

Current supernodes have no other choice, otherwise their supernode status is in jeopardy. And because supernodes are clustered (finance-governments) if one part goes down then the rest goes down.

This is why the economy of primary wealth should be dependant on the secondary wealth. This is one of the main reasons of instability as in fact it should be other way round.

Until financial institutions pretend to be the basis of world economy and do everything to stay this way – situation is turned upside down. But node preservation makes them to do it. Later we will discuss what could be done to change the situation.

… to be continued.

Since I’ve started series o articles on the fractal-lattice-nodes theory of Economics, I’ve received literally hundreds of emails. Some of them with praise some… hmmm … opposite, others with questions. I can not physically answer all of your questions but before continuing with articles I feel obliged to give at least some answers, as they also might help my other readers to understand more serious aspects of the theory.

I am not going to give names or emails and might rephrase some of the questions, but I believe the author would recognise his / her question.

Q. Are you an economist?
A. No, I am not. I have a degree in Theoretical Physics and also do strategic eMarketing.

Q. I work for <…> Bank for many years and I don’t think that you understand banking.
A. The main point is, banking can have many aspects and details but I am not going to get into all of them. The idea behind the theory is simple. There are limited resources (estates, equity, etc.) in the world. To keep system stable their real value and “banking value” should at least match. It is something similar to the energy conservation law. If the law is broken – system becomes unstable. I do understand how the law works, and I can put it mathematically by implying new concepts – connections. Based on this concept fractals and lattice model explains all processes in the economy. If you want me to explain the particular specific aspect of financial market based on the theory – let me know. But I simply can’t put each and every detail into the picture.

Q. So what do you think should be done?
A. I’ve already spoke about it but more detailed explanation is planned for future articles.

Q. You are talking about mathematical modelling but I can’t see any math…
A. Well, not all my readers would understand or be interested in mathematical details. I am going to give some calculations later. At the same time I am not planning to reveal the entire model. First of all many bits and pieces from my articles are already been “stolen” without giving any credit. Second, some of my concepts especially way of calculating precise “value” of the connection are not open part of the theory. But some math is on its way.

Q. Do you have any prove that theory works?
A. I’ve already explained lots of things based on the theory, haven’t I? Even made some predictions. More to come.

Q. Do you think economists would accept what you are writing here?
A. No (at least not openly).

Q. Do you think that banks might follow your advice?
A. See above

Q. Why you are writing all this?A. Good question. Because I want people to think about how the system works not about what elements of the system say or do.

Q. Could the situation be improved and further crashes avoided?
A. Yes. But it doesn’t mean that it would.

Q. I don’t understand what you mean by connections. How can they affect economy?
A. OK, think of … Google. What they have is connections (people “connecting” to them on a daily basis). Now see what Google is worth these days. Well, this is a very simplified and not mathematically correct explanation.

…to be continued.

I think it is time to return to the long awaited tutorials. The delay was due to the problems with one of the hosting companies where the test sites were running. Unfortunately transfer took some time and if one tutorial site is already up and running again, the second one is a bit trickier to transfer so I need a bit more time.

The problem is, once site goes down for a while (and if the site is relatively new), then it’s position in search engine results page drops. And to understand is it dropping because the site is inaccessible or because search engines treat site as supplementary is pretty difficult. This is why the website should be clean and responsive for a while to get the results right.

Now the main question: which affiliate system to use? I know many people would not change Amazon program for anything else, others say that the Affiliate Window is an absolute leader in the UK.

Here we can do simple pros and cons and then you decide what to use.

Amazon.
Pros: Great variety of products, very good prices, lots of information can be retrieved using simple API method, populating your site is easy, the name is one of the most trusted, etc.
Cons: Commission levels are not so good and, most important; whatever you sell could not bring you more than 7 pounds.

The latest is a big NO if you want to use Amazon affiliate for any serious items like large plasma TVs, laptops, etc. Generally speaking, anything that costs more that 100 pounds should not be included because any other affiliate system would pay you much more.

Affiliate Window.
Pros: Huge selection of retailers, products from virtually all niches could be found including travel, hotels, etc., good commission rates.
Cons: They depend on feeds and therefore have no control over content, images, etc. Often feeds are broken and “no image available” icon spoils even otherwise nice looking sites.

Therefore Affiliate Window shops require some more effort and control from your side.

Now, my second tutorial site is being transferred to a cPanel host and once the search engines pick it up again, we will continue with the tutorial.