Financial thinking
Economists have believed for centuries that:
- The best budget is balanced budget.
- Private sector is self contained and stable.
- Demand always finds its supply and to the contrary.
- Banks need savings for providing credits.
- Flow of savings changes in the flow of investment.
- Instruments are given into the circulation by central bank.
- Creation of financial capital is provided by profits of companies and savings of households.
- People, companies and government should save and do not indebt themselves.
Attachment on these by practice unacknowledged assumptions, which had changed into dogma, caused the creation of economic crises and bankruptcy of many companies.
Why do we use financial thinking?
- Financial thinking allows increase of flow and level of financial instruments on your accounts.
- Financial thinking allows determination of future development of economic.
- Financial thinking enables to make financial decisions which avoid creation of financial crises.
Financial thinking faces current reality, it means the matter of fact that:
- instead of old gold material money we use immaterial financial instruments, and
- beside economic laws, unwritten financial laws are in function.
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