Most traditional economic theories are crucified on the idea of equilibrium. They are not wrong, but they are only a special case, a subset of our general economic theory. Without easy money, without easy credit, and without foreign capital inflow, our economy can indeed stay at a ground state, a level that can be described very well by traditional economic theories. However, most of the time in our real world, excess domestic liquidity and/or excess foreign liquidity inflow pushes our economy away from the equilibrium. This is called an excited state. At an excited state, traditional economic theories lose their predictive power, just like Newtonian Physics does not apply when we approach the speed of light. Also, this excited state usually lasts for years. The far-from-equilibrium economy is not temporary, contrary to what most economists believes.
After years of study, the author developed his own "Far-from-equilibrium Macro Economic Theory (FFEE)". The model is complex but the basic idea is very simple. FFEE is a general theory. If we specify the conditions on our FFEE, i.e. rule out easy money, loose credit and capital inflow, we can simplify the terms and deduce it back to the special theory-- traditional economic theories. From now on, we can no longer pretend that our economy is always at equilibrium. The author always believes that a good economic theory shall be as good as those in Physics or Chemistry, i.e. we shall be able to verify it in experiments. So far, FFEE has given the author the confidence and courage to put it on test in public. Sky Blue Monthly is the vehicle for FFEE to predict and to perform.
Sky Blue Monthly is published online before 15th of each month. This Monthly relies solely on FFEE (our unique fundamental analysis) to study world economy, futures markets and financial markets.
The information herein is based on sources which the Publisher believes to be reliable, but we cannot warrant its accuracy or completeness. Such information is subject to change and is not intended to influence your investment decisions.
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