Mervin Yeung graduated from University of Kentucky. He had university degrees in the following majors: Computer Science, Mathematics, Economics, and Mathematical Sciences (all with distinction). He also had successfully completed Series 3 (National Commodity Futures Examination)(USA), Canadian Securities Course, Canadian Options Course, and Canadian Futures Examination. After years of working as an Assistant to the Director of Research and as a Futures Analyst at a $102 million hedge fund in Chicago, he decided to start his own market letter.
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. This is our mission.
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