On The Virtual Economy And The Economy Of The Virtual

Economics is a subject to study an area existed in the society to satisfy directly or indirectly the substantial and spiritual demands of people (it may be a work production, or it may be the nature existence). Fictitious value, which is supported by people' mentality, is the largest amount payable by the buyers for obtaining a certain resource, depending on the future efficiency of. Its amount is related to the possible income, time compensation, the risk compensation, the power, the possible damage, the amount buyers having, most buyers' objection, the monopolization level, satisfaction level for resources and susceptibility factors, etc. Price is a realization of fictitious value decided by the governable income by the buyers. Narrow sense of fictitious value is supported indirectly by labor value;Economy bubble is supported by one's mentality but can't be supported by work, and it equals to a difference of a broad sense of fictitious value and a narrow sense of fictitious value;A narrow sense of fictitious value and an economy bubbles may be converted each other under a certain condition. Fictitious economy is a series of economic activities related with fictitious value which decides the basic price;Bubble economy refers to economic activities of chain reactions of economy bubbles deciding price fundament and economy bubbles producing economy bubbles to reach a complete fiction of macroeconomics or profession economy. Credit and power is the main reason of producing fictitious economy and there are also some other reasons as spirit, moral, cultural tradition, custom, information and opportunity. Fictitious economy has characteristics of complexity, fluctuation and high speculation. Fictitious economy depends on substantial economy and it also has more and more tremendous influence to the substantial economy. Fictitious economy is getting more and more substantial, and the substantial economy is getting more and more fictitious. The appearance of fictitious economy is related with power, monopolization, information, tradition, culture and emotions, etc. The degree of bubble economy can be measured by the financial relative rate, the P/E ratio, M/B Ratio etc. Economy bubble can cause wealth hallucination, economy bubble in appropriate degree has no harm;Nevertheless, bubble economy may cause enormous harm to social economy and can bring financial crisis and economic crisis. The bubble will be broken by any problem occurred in the period of bubblegrowing and developing procedure. Exploitation and profit both related with the fictitious value and it is a kind of performance of the fictitious value. Paper money is a kind of fictitious assets occurred under state credit and power. A kind of resource being money should have a property of departing from the social work. A high credit country may carry on an economic invasion to an undeveloped country depending on their money during international intercourse. Inflation is a continuous rising situation of general resource price and the basic reason of the rising price is monopolization. People may use their best superior resources, this becomes the main reason of social division of labor, transactions between sellers and buyers and international business. GDP can't reflect all things about economy development and the wealth produced by work of a country. China should set up government with authority and credit, emphasize on national spirit and patriotism education, function its authority cautiously, pay more attention to the management and study of "costs and fees". The key point to save the stock market is to make perfect laws, regulations and system for enterprises fairly going into the stock market. China should control bubbles and guard for the bubble economy;Chinese currency RMB should go abroad to establish and improve a Chinese characteristic market for creditor's rights.