Resilient economy

How to be more resilience in economy...here's my thoughts...
every monetary form must be backed up with valid assets.... No more of the lending cancelling borrowing (on paper contra), especially when lenders are state protected and guaranteed.

 For asset transfer that depreciated immediately, bridge that difference with non depreciated assets or the repayment must match the speed of depreciation. ...That's true borrowing cost.

Currently, Borrowing is inconsistent because it increase with interest against depreciated assets.

Use net present value for more accurate financial condition. Recognised loss immediately based on net present value.

All these bubble market need to go.

 Its worth stocking up asset with gold, silver and pewter to ride potential recession. Oil alone is not enough.

Basically, other than economic strategy, I think accounting standards need some serious reform. Historic accounting is useless.

 

-fida.i-

Jan 21,2013