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.

More than 6,7 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 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
  
  

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:
  
  
• 'Multinational (Global) Operations and Financial and Economic Crises and Recessions:
  Democracy under Attack: The Struggle for the Right to take the Decisions, and for Social Accountability'
  
  
• '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'
  
  
• 'Capital and Wealth, Owners and Population, Charging Customers: Comments and Considerations'
  
  
• 'Israel and The Social Laws and Social System of the Pentateuch'
  
  

Theme:

Theme: 'General Interest Rates, Share Prices and Pensions'

Money moves towards a better investment. If interest-paying investments give a better return than dividend-paying shares, people will buy interest-paying investments and sell their shares. Interest-paying investments are then in demand and their prices increase, shares are not in demand and their prices drop. Share prices may then continue to drop until the amount of the dividend payment (in currency units such as USD) represents a return <6> from the share which is the same as the interest paid by interest-paying investments.

<6> Return:  Dividend payment expressed as a percentage of the price.

So increasing the general interest rate reduces share prices, and reducing the general interest rate increases share prices. The return from shares (dividend payment as a percentage of share price) tends to move towards the new interest rates. As follows:

This sample calculation illustrates the mechanism. However, share prices also depend on other factors such as the risk associated with the investment, and the country's creditworthiness as reflected in currency exchange rates. Profits tend to increase in measure with inflation and profitability also determines share prices.

So 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 a factor when companies change, or advocate changing, established pension schemes.

See the full report:

Inflation, Balance of Payments and Currency Exchange Rates
(Including: Quality of National and Local Government and Worldwide Inequality)

by Manfred Davidmann

Short Descriptions

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