016. Theory of Interest

The theory of interest, our company's proprietary core doctrine, all our other doctrines in economics are extended from the theory of interest. Now that we have the theory of money, the theory of interest can be opened up. Market price changes have a cycle, traditional agricultural production has a cycle of three years, and therefore, an interest rate contract gradually formed: the average annual interest rate capital is 30%, and the interest rate of one-year sales is 20%.

YangLinng PuYiHeTong wenhua chuangmei youxian gongsi

Introduction to the Theory of Interest

1.Constant capital average interest rate of 30% per year

The theory of interest, the theory of price, the theory of money, and the theory of contract support each other and cannot be separated. The traditional production a market cycle of three years, and the price fluctuates in this cycle. Due to the limitation of the supply of money, the fluctuation of prices cannot be severe. The of capital thus gradually forms a contract of interest, and this contract evolves to the transfer of goods interest to form a corresponding contract, and then the price is the cost-the price added by different capital rent values.

Let the annual average rate of interest on capital be X, and let the capital be reckoned at 1:

3X+3x^2+x^3=1+X-x^2

2X+4x^2+x^3=1

2X+4x^2=1

X=30%

3X+3x^2+x^3=1+X-x^2 contains the problem of capital replacement (asset valuation) and it is easy to think of 3X+3x^2+x^3=1 or 3X+3x^2+x^3=1+X, but it is not easy to think of X 3X+3x^2+x^3=1+X-x^2.

Capital 30% annual interest rate is the best of the market, not the average of the market. It is not easy to exceed this number, it will attract new competitors. Monopolizing the market will not make the capital rate exceed 30%, no, but much lower. Monopoly requires power or influence, it is difficult for power or influence to have the wisdom of market appraisal and turning around.

2.The average annual interest rate constant of cost and sales20%

Suppose that the annual production cycle is one year, the annual average rate of interest on sales is a constant A, and the sales revenue is a; the capital is; then :

30%b=Aa，b / a = A /30%＜1.

When A < 15%, the initial investment is too small, and the later capital has insufficient time to be effective, so, 15% < A< 30%.

Invest 2/3 in the early stage, 20+5=25. When A>25%, the later stage returns are relatively small and it can be contracted out, so, 15%<A<25%.

Invest in 2 equal parts, 15+7.5=22.5.

Invest evenly in 4 segments, 7.5+5.62+3.75 1.9=18.77

Early investment > Late investment. Uneven 4-stage investment, first stage > second stage > third stage > fourth stage. Thus, 18.7 < A.

Divide the four-phase investment into two thirds in the first half and evenly in the second half,

10+7.5+ 2.5+1.25=21.25

The first half and the second half are not equal, each is twice the latter,

3.3+5+3.3+0.12=21.72. A＜21.72.

The amount of capital in the later 1/3 is not a small number, and some of the work needs to be outsourced. Outsourcing to idea, there is a problem of asset idle investment is not uniform, but there must be a considerable part of the uneven investment, and some of the early business also needs to beourced, and some businesses need to do outsourcing, and it is difficult for enterprises to clearly delineate the boundaries with the market. Therefore, 18.77 <A< 21.72.

Rounding, A=20%. The cost annual average interest rate constant 25%.

Business and the market are difficult to interweave, and it is uneconomical to do work that can be outsourced by oneself. The part that must done by oneself is monopolistic, and the market cannot do it. Idle assets require outsourcing business. It is not easy to earn enough interest to cover the average annual interest of capital.

3.he exchange of different goods

The exchange of different goods can not bypass the theory of labor value, and pricing by working hours is a simple method. After human labor creates, a complex system of capital is formed. The processing industry is also basically priced by time.

When the market becomes complex, different goods are priced according to their cost. But the unknown cost, they are also priced according to their preferences. This corresponds to Mr. Zhang Wu's statement - price is tested.

Utility involves the problem of scarc and substitutes. Scarcity is related to cost, and information about scarcity also has timeliness and locality.

Ancient things are scarce, unique, and their value also be traced back to their utility. Utility is complex and related to the values of the interested parties themselves.

Monet's water lilies, philosophers see the dialectics standing firm, the poor see the vitality at any time, the rich see the changes in timing, the young see the sparks of life, the old see the calm, so on. Monet is a painter, but he is more like a philosopher. He can be broad and detailed. The painting is based on his intention, and the painting itself irreplaceable, but its intention may have substitutes. However, the way of price also has time and space, and there is information fragmentation in time and space, so its is also limited by time and space.

4. 30% capital = 20% sales / N.