Rules of physics provide insight into economic crisis
Published: 17 March, 2009, 10:16
TAGS: Markets, Russia and the global economy, Economy
Russian scientist Victor Maslov calculated the global financial crisis using formulas derived from mathematical physics. He is is now disclosing his know how to help government fight the recession.
The enduring laws of numbers. Viktor Maslov used formulas from Mathematical Physics to predict the break-up of the Soviet Union and Russia’s 1998 crisis. He looks at physics – and studies the behaviour of identical particles – to understand how money works. He calculates a critical number – an index showing when a situation will worsen abruptly.
“Give me the list of debts and their duration and I will count the ”critical number« – the time when they all should be repaid. If the country or a person plans to take longer to repay them – they are bankrupts.»
So he calculated the critical number for US household debt and predicted the fall of the mortgage market. As for companies, he says they should be allowed to fail.
“Let the Wall Street be mad at me!!! But if some company is going bankrupt – there is no need to save it. The more zero levels we have – or simply bankruptcies – the better.”
Victor says he can tell President Barack Obama the maximum level of state ownership the U.S. economy can sustain. And he warns against calls from Russia to create a supranational reserve currency.
“There should be many different currencies in the world. The chain of money exchange should be more complicated. The rules of physics work in the economy – The unipolar world with unified money is under a huge danger of sudden collapse.”
Viktor says pure mathematical formulas – unlike economics – give exact numbers, not general trends. The G20 summit in London will show whether the voices of science are heard.
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I would like Russia Today to tell me more about how his theory predicted the events and when the economic crisis will be over. While I don't know his theory I do know that what precipitated a sudden collapse was that the savings rate in the U.S. became negative for the first time. The second issue is to look along the contagion theory. So if one company is sick fianancially, it becomes a virtual blackhole for money as the subprime are build on derivatives trading, betting the housing prices goes up when there is a clear cycle that the housing prices was peaking from it's 15 year something cycle. It becomes like a contagion if they are not isolated and the opening of trade is the source of the contagion as same as a disease that is spread with the opening of trade barriers. There is no economic fuse box to protect this.











I say move this guy to the US & appoint him Secretary of the Treasury & get rid of the present clown ASAP!