Manfred Davidmann

Manfred Davidmann is an internationally well-known and respected scientist and consultant, and author of a number of books and reports which have had and are having considerable impact, playing their part in improving the quality of life and the standard of living, worldwide. His work usually breaks new ground and opens up new understanding and is written in meaningful and easily understood language. Outstanding is that his work is generally accepted as factual, objective and unbiased.

Nearly 7 million copies of his reports have been downloaded from the Solhaam website so far, and have changed and are changing the way in which people live, think and behave.

The Twenty Most Popular Downloads

• Style of Management and Leadership

• Family, Sex and the Individual; Women's Liberation, Feminism and Community

• How the Human Brain Developed and How the Human Mind Works

• ORIGIN OF CHRISTIANITY and JUDAISM

• MOTIVATION: Summary

• Using Words to Communicate Effectively

• The Will to Work: What People Struggle to Achieve

• Meaning and Significance of the Names of God in Genesis

• Directing and Managing Change

• Inflation, Balance of Payments and Currency Exchange Rates
  Including: How Base (General) Interest Rates determine Share Prices and Pensions

• Multinational Operations: Transfer Pricing and Taxation

• Organising

• Causes of Antisemitism

• Co-operatives and Co-operation: Causes of Failure, Guidelines for Success

• History Speaks: Monarchy, Exile and Maccabees

• The Meaning of Genesis: Creation, Evolution and the Origin of Evil

• Social Responsibility, Profits and Social Accountability

• Work and Pay, Incomes and Differentials: Employer, Employee and Community

• Struggle for Freedom: The Social Cause-and-Effect Relationship

• COMMUNITY ECONOMICS: Ownership and Limited Liability

Books by Manfred Davidmann

• ISLAM: Basis - Past - Present - Future
  
  
• God and People: The Social Laws and Social System
  Underlying Judaism, Christianity, Islam and Democracy
  
  
• THE HUMAN MIND AND HOW IT WORKS:
  Group Minds in Action: How the Human Group Mind
  Shapes the Quality of Our Life and Living
  
  
• COOPERATIVES AND COOPERATION:
  Causes of Failure, Guidelines for Success
  
  
• Management and Leadership:
  Local, National, Multinational (Global),
  Principles and Practice
  
  
• The Real World in Which We Live:
  The Social Rules and Social System under Which We Suffer, Struggle, Survive and Prosper
  
  
• Messianic Struggle: The Worldwide Struggle for a Good and Secure Life for All, Here and Now
  
  
• Judaism: Basis - Past - Present - Future, Part 1
  
  
• Judaism: Basis - Past - Present - Future, Part 2
  
  
• Christianity: Basis - Past - Present - Future
  
  
• Towards a Better Future
  
  
• Chemical Engineering, Chemical Plant Contracting,
  Chemical Industry.
  Work and Pay, Work and Remuneration of Directors,
  Community Leadership and Management
  
  
• Social and Economic Problems of Israel and Democratic Countries
  Policies for a Better Future
  
  

You can support and help us to provide and keep this exceptional website free of charge by buying Manfred Davidmann's books.

Theme of the Week (Current Events, Current Problems)

• Themes    (listed by content)
  
  
• 
  Previous themes:
  
  
• 'Family's Role in the Real World:
  Teamwork in an Age of Specialisation and Accelerating Change
  and
  Gaining Strength in the Struggle for a Better Life'
  
  
• 'Israel and The Social Laws and Social System of the Pentateuch'
  
  
• 'The Social Laws and Social System of the Pentateuch: (Ha Mim) The Word of Allah as Taught by Mohammed'
  
  
• 'Christianity at the Crossroads, at the Final Parting of the Ways'
  
  

Theme:

'Balancing National Income and Expenditure in the Real World; Multinational (Global) Operations and the Balancing of National Accounts'

How individuals in responsible positions or authority, in local and national government, are managing our affairs on our behalf and for us, is of crucial importance to every citizen.

Government has to make ends meet, has to bring about a rising standard of secure living, social security and an increasing quality of life for its citizens. There can be ups and downs but, says Manfred Davidmann, "failure to make ends meet is just as directly and surely the result of bad leadership and management as it is in any commercial enterprise."

We all have to balance what we are spending against what we are earning. If we consistently overspend then we either have to earn more or else reduce our spending.

Until we make the necessary adjustments, we can increase our spending money by drawing on savings, by selling jewellery, by short-term borrowing from the bank or friends and perhaps by long-term borrowing such as taking out a mortgage.

For a little while our friends or the bank manager will help us by lending money but the loan has to be repaid and we may have to pay interest. The same applies to a mortgage. The interest we have to pay makes our position worse. As a result of having to pay interest we now have less to spend and overspend more heavily.

If we consistently overspend and cannot increase our income then we are forced to reduce our spending and thus are forced to reduce our standard of living.

Hence we aim to increase our income until it more than balances what we are spending and in this way we aim to increase our standard of living.

The same considerations apply to countries, as illustrated by Figure 2 'Making Ends Meet' in

Inflation, Balance of Payments and Currency Exchange Rates

which illustrates what is being said here.

For a full statement and discussion of the alternative ways of balancing national accounts, in meaningful language and with clear diagrams and illustrations, see this report. It is about National Accounts and the national Balance of Payments, in effect about good national financial management, and was first published in 1981. Its analysis and methodology are now widely accepted, world-wide, and can be of much help when considering the causes and effects of financial crises.

Take the case where the total cost of a country's imports is more than the value of its exports. This means that more is being spent on imports than is being earned from exports. We see a payments deficit which needs to be made good as imports have to be paid for. We can:

1. Increase the value of exports or reduce the value of imports, or do both.
   
   
2. Increase short-term borrowing by increasing the interest paid by us to depositors.
   
   

   If the country is failing to make ends meet, then short-term borrowing is a convenient way of raising the required funds for paying one's debts but interest rates increase accordingly.
   
   This quickly affects the level of share prices, which fall. The house of cards consisting of fictitious (unreal) share values then faces collapse. Hence government is under pressure to keep interest rates low.
   
   
   Share prices also depend on other factors, but share values may increase steeply, and may be kept up artificially, by reducing interest rates and by keeping interest rates low.
   
   As interest rates were reduced and as share values increased, corporations (companies) have withdrawn corresponding 'surpluses' from their company pension funds and added them, or a substantial part of them, to shareholders' profits.
   
   As share prices fall, pension funds can become underfunded. Companies may then be obliged to make up the underfunding to some extent. It appears that the likelihood of this happening may be an important factor.
   
   
   And governments are not informing their populations of the enormous costs of importing sources of energy, are apparently trying hard to keep interest rates level or low, are attempting to balance national accounts by means other than short-term borrowing.
   
   Means corresponding, for example, to selling the family silver or taking out a mortgage, like selling ownership or majority control of one's major productive and service assets into foreign control.
   
   

3. Increase long-term borrowing (for many years) against terms which depend to some extent on our credit worthiness. Interest charges have to be paid regularly and the loan repaid in due course.
   
   

   Britain, for example, had to borrow vast sums annually so as to pay for imported oil until North Sea oil became available. Combined with a considerable increase in borrowing requirements by local government, this materially contributed to the annual deficit. It soon became apparent that it is not easy to reduce one's standard of living, and different sections of the population were confronting each other, struggling to maintain their own level, their own standard of living, struggling for a bigger share of what was available.
   
   Many underdeveloped countries find themselves working to an increasing extent for those who lent them money in the past, or for those who provided essential goods such as oil at high prices, working very hard to export more and more merely to pay interest and repay loans granted in the past instead of bettering their economic capability and the standard of living of the people.
   
   

4. Sell some of our stock of gold to obtain foreign currency.
   
   
5. Sell assets such as land, hotels, factories and business interests to foreign buyers.
   
   

   There are considerable dangers inherent in allowing such investments to take place on any scale, in allowing control of important assets to pass into foreign hands.

In practice any combination of these may be used, dependent on the circumstances the country finds itself in and on its credit worthiness. Each one affects the country's progress and prospects differently, particularly as regards inflation.

Source

See report

Inflation, Balance of Payments and Currency Exchange Rates.

Description of Source

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