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Internet economy

I have not come across any good articles or special report on internet economy. Most probably, nobody has ever written on it.

Adam Smith is the Father of Economics. Karl Marx, a German sociologist and economist wrote two books, "The Communist Manifesto" and "Las Capitas". He did not complete writing his second book before he passed away. He best friend continued and finished Karl Marx's uncompleted job. John Maynaud Keynes wrote the book "The General Theory of Money, Interest and Unemployment". This classic book first published in 1937 lay the foundation for modern economics. In short, it is known as Keynesian economics.

The Communist Manifesto is not about communism although it was first used by the Russian leader, Starlin. The Communist Manifesto is about concepts in social cycle and economic cycle.
(When we say social economic, we are actually refering to the balance between these two opposing forces.) Karl Marx's second book "Las Capitas" is about capitalism. (Please, do not confuse capitalism with democracy)

John Maynaud Keynes' "General Theory of Money, Interest, and Unemployment" was written as a solution to the Great Depression of 1929. What happened during 1929? Basically it was a failure of the economic system. The interest rate of banks dropped to as low as minus quarter percent. This meant those with money had to pay the bank to look after their money. Most of the world's economy today rely on Keynesian economics as fundamentals.

The internet economy of 1998/1999 had some similarities. Who survived the 1929 Great Depression? Basically they were conservative long term organizations. Consevative means they do not borrow money. They are stable, cash rich and can pull through long periods of depression.
Who survived the internet bubble of 1998/1999? The answer is the same--those orgainzations or individuals which stick to these fundamentals.

Until today, internet economy is still the winning economy, way ahead of any other industry. The cake is growing bigger and bigger astronomically proportional to the speed of modem (Moore's law) rewarding organizations and individuals alike. Beneficiaries include Bill Gates, Googles, You Tube and so on.

If you want a piece of this cake, you have to use the right vehicle, right strategy, and be in the right place at the right time? As the saying goes, it is impossible to launch the rocket with your firecrackers. No doubt you can get pennies to survive day to day just with firecrackers!

Let me know what you think.

You are welcome to post any reasonable comment.

posted by DR SOON @ 9:48 PM