Rules of physics provide insight into economic crisis
The enduring laws of numbers. Viktor Maslov used formulas from Mathematical Physics to predict the break-up of the Soviet Union and Russia’s 1998 crisis. He looks at physics – and studies the behaviour of identical particles – to understand how money works. He calculates a critical number – an index showing when a situation will worsen abruptly.
“Give me the list of debts and their duration and I will count the ”critical number« – the time when they all should be repaid. If the country or a person plans to take longer to repay them – they are bankrupts.»
So he calculated the critical number for US household debt and predicted the fall of the mortgage market. As for companies, he says they should be allowed to fail.
“Let the Wall Street be mad at me!!! But if some company is going bankrupt – there is no need to save it. The more zero levels we have – or simply bankruptcies – the better.”
Victor says he can tell President Barack Obama the maximum level of state ownership the U.S. economy can sustain. And he warns against calls from Russia to create a supranational reserve currency.
“There should be many different currencies in the world. The chain of money exchange should be more complicated. The rules of physics work in the economy – The unipolar world with unified money is under a huge danger of sudden collapse.”
Viktor says pure mathematical formulas – unlike economics – give exact numbers, not general trends. The G20 summit in London will show whether the voices of science are heard.