ALL THINGS BIG AND SMALL 2.0

  Many Economists see a period of both Inflation as well as Recession for the US economy in the months ahead- two scenarios at opposite ends of the spectrum of possibilities for an economy. This is a situation which they call Stagflation- a stagnant but also inflationary economy.  In this post we explain why, how Stagflation happens and the sequence of events. The flow chart above together with the notes below explains how the US Administration’s trade war tariffs can lead to stagflation:  • The process starts at the top with the implementation of high tariffs (Tariff Policy). • This leads to higher import costs, which in turn causes higher prices for goods—resulting in inflation. • As prices rise, consumers cut back on spending, which reduces corporate earnings. • Lower earnings force companies to lay off workers, increasing unemployment. • The combination of reduced spending and higher unemployment leads to a recession or stagnation. • At the bottom, ...

Data is for 2023 from the CIA Factbook, an interesting website to read https://www.cia.gov/the-world-factbook/ Introduction to Fuzzy Logic Fuzzy Logic algorithms are a way of looking at the world, not in black and white but shades of grey with black and white at the extremes (like “Fifty Shades of Grey “ the movie.) Japanese consumer electronic appliances have been using Fuzzy Logic for decades. Examples: • Washing Machines: Japanese washing machines use fuzzy logic to sense the load size, fabric type, and dirtiness of clothes. The machine then adjusts the water level, wash time, and detergent amount for optimal cleaning. • Rice Cookers: Fuzzy logic rice cookers monitor temperature and moisture, adjusting cooking time and heat to produce perfect rice regardless of the amount or type. • Air Conditioners: Fuzzy logic air conditioners sense room temperature, humidity, and even the number of people in the room, then adjust cooling power smoothly for comfort and energy efficiency. • ...