1.6 Why Money Velocity Slows Down?
We are talking about money velocity here. Money velocity is the flow of survival energy that flows throughout a society. Money is a symbol that represents production value and production energy. In this article we will look at money as a “symbol of production energy.” Production energy is the survival energy for an individual, family, a society and mankind. In a society, money velocity increases and decreases depending on the production level and on the Producers pay or reward for their production. When rewarded production increases, money velocity increases. When production decreases, money velocity decreases. When production increases and the Producer is not rewarded for creating the production, money velocity decreases. When rewarding non-producers increases, money velocity decreases. Money velocity is the rate at which money changes hands in a society. Money velocity is the rate at which money energy flows through a society. The faster the rate of money energy flow, the more prosperity there is in a society.
- AXIOM 151: Money velocity is the rate at which money changes hands while being exchanged on the Open Market for products (goods and services.)
- AXIOM 151.1: As the flow of money energy increases through the hands of the people in the society when buying and selling products (goods and services), their affluence level increases.
- AXIOM 152: Increased production efficiency increases money velocity.
Early in the research and writing of Producer Rewarded Open Market Economics there has been much attention placed on the rewarded non-producers and the catastrophes caused by rewarding non-producers. As we move into the future and a great enough awareness has been made to the point of not allowing non-producers to have money without an exchange for it in production, we will work on perfecting the Producer Rewarded Open Market Economic System. We will work at perfecting the Producer Rewarded Open Market Economic System with, the purpose of having, a tremendous survival potential for all individuals, societies, mankind and the environment.
Other than natural and/or “God” given causes, the only reason why money velocity slows down and societies find themselves in recessions, depressions and chronic depression stems from and only from rewarding non-producers. This is the action of giving money to non-producers who place no production or not enough production on the Open Market in exchange for the money. The action of rewarding non-producers is giving production or survival energy to non-producers who place no or not enough production on the Open Market in exchange for this energy. The action of placing money (production or survival) energy into the hands of non-producers brings about the destruction of money and energy. This destruction of money and energy slows money and energy velocity rates in a society. Recessions and depressions expand and grow deeper as rates of money and energy velocity slow down.
This type of economic practice is classified as Capital Destroying Economics. Capital Destroying Economics is the contra-survival part of Capitalism. Remember there are two classifications of Capitalism. There is the pro-survival classification and that is Producer Rewarded Open Market Economics, The Science of Economics. There is also the contra-survival or succumb classification of Capitalism and that is Capital Destroying Economics. In the past, Capital Destroying Economics had another name. Capital Destroying Economics was formerly called Capital Consuming Economics. The Capital Destroying Economics sub-classification of Capitalism has been changed from Capital Consuming Economics to Capital Destroying Economics. The reason, I changed the name from Capital Consuming Economics to Capital Destroying Economics, was because rewarding non-production literally destroys money, wealth and money energy. This destruction brings about the destruction of Producing individuals, families, societies, nations, mankind and the environment.
On inspection we find Communism, Fascism as well as the contra-survival classification of Capitalism falling into the Capital Destroying Economics classification.
This contra-survival classification of Capitalism, where wealth is concentrated with its power and influence in the hands of a few non-producers, causes undue hardship and suffering.
Communism and Fascism are also contra-survival systems of economics. These two systems also concentrate wealth with its power and influence into the hands of a few non-producers. This activity leads to undue hardships and suffering.
What do these three contra-survival economic systems have in common? The have a money velocity that is flowing very slowly. Their citizens are living under undue hardship and suffering. They are mired in prolonged economic depressions.
We find, in the above three systems, the few powerful non-producers (where the money, power and influence is concentrated) tend to be in hiding. We find these rewarded non-producers in hiding. They hide, grab and hold onto the money, wealth and money energy. They grab and hold onto material objects (Materialism.) They become the money and objects they worship. They become their expensive cars, boats, airplanes, houses and other material objects. It could be said, “These rewarded non-producers are hiding in or as their objects!” Being objects is a very low tone to be in. Hiding is a very low tone, but being objects is lower. They hide grab and hold. Their purpose is to stop the flow of money energy. They have a tremendous negative effect on money velocity and survival in their societies.
These rewarded non-producers are hard to spot. They hide, grab and hold onto money energy, production energy and survival energy. They will never stand up and admit their true purpose. Instead they will hide behind other issues such as abortion, gay rights and “create” enemies of the state to take attention off their real purpose. They will argue issues such as abortion and gay rights but, when they get to power they will not handle these issues, when they have the power to do so. When in political power they will concentrate their attention on grabbing and holding more money energy. They will use the enemies they “create” to promote war. War is another means for the non-producers to transfer more money energy, survival energy and production energy from the Producers, of the energy, to the non-producers.
We find long recessions, depressions and a slowed money energy velocity caused by moving wealth from Producers who create it into the hands of a few powerful non-producers who have not created it.
There are tools to determine: What is production and what is non-production? Who are the Producers? Who are the non-producers? There are tools to determine whether we are Capital Producers or Capital Destroyers.
What is a Product?
A good or a service is classified as a Product when it:
A. is marketed on The Open Market (open to all on equal terms,)
B. is needed and wanted and
C. does not harm the individual, family, society, mankind and/or environment.
Or it can be more fully explained by saying, “it causes the greatest good to the greatest number of people or dynamics.” Another way of saying it is, “it causes the least harm to the greatest number of people or dynamics.”
Definition of dynamics: Dynamics are, of or having to do with, energy or forces in motion. Here we are applying the term dynamics to all the energy and forces involved during the activity of survival by the individual, the family, the society, mankind and the environment.
DEFINITION OF A PRODUCER:
AXIOM 23: A Producer is a person who:
- A. Creates a good or a service, classified as a Product,
- B. The good or service must be needed and wanted,
- C. The good or service must be marketed on the Open
Market (open to all upon equal terms) and
- D. It must enhance or should not destroy the survival
of the individual, family, society, mankind and/or
the environment.
AXIOM 24: Producers are the main beams, support structure and
back bone of a society and a Nation. The survival of a
Nation rests upon the backs of the Producers.
There is only one way to achieve optimum money velocity and be a Capital Producer and that is to reward the Producers of production. There are many, many ways to place a drag on money velocity and, other than natural causes; they all come down to rewarding non-production. These non-producers are the destroyers of capital.
We can use the Technology in Producer Rewarded Open Market Economics to create and expand our pro-survival economic system on this planet. In the past we have been subject to the grab and hold (hoarders) running our economic systems. This has always slowed money velocity bringing about recessions, depressions and wars. The Producers have always sought to produce energy, money and wealth. The Producers have always sought to increase the money energy velocity. They have sought ways to make sure everyone who produced received their production value and production energy in return or in exchange, in money units, for what they have created.
As Producers, we can move forward with confidence, knowing what we are doing is correct and very right! We can confidently move forward producing survival and energy for ourselves, our families, our societies, our nations, for mankind and for our environments.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 4, 2012
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Axioms of Economics
Constant Money Supply
Money Velocity and Prosperity
- 1.0 Money Velocity and Prosperity
- 1.1 The Money Velocity Cycle
- 1.2 Capital Producing Economics
- 1.3 Vampire Economics
- 1.4 The Goal of a Society
- 1.5 Production Efficiency
- 1.6 Why Money Velocity Slows Down?
- 1.7 Capital Destroying Economics
- 1.8 Producer, Non-producer or Counter-producer?
- 1.9 Razor Thin Path