Money Velocity and Prosperity

2.0 Stock Market

Why does the Stock Market improve when Democrats are in control of the government? Why does the Stock Market decline when Republicans are in control of the government?

IMG_0585

Work on High Voltage Line.

This is my opinion based on the Axioms of Economics.

When Republicans are in control money tends to be concentrated into the hands of fewer and fewer individuals.  This slows money velocity (movement of money through the hands of the citizens.)  This gives people the sense of less money in circulation.  With a slower money velocity (money circulating slower) the Stock Market declines.

When Democrats are in control money tends to be less concentrated in the hands of a few individuals.  There is more money in circulation for the general population.  This increases money velocity (money circulating faster) the stock market improves.

Displaying production.

Promoting forest products.

The demand for commodities, trades, goods and services is directly related to the money velocity in a society.  With increased money velocity, sales of commodities, trades, goods and services increase. The stock market does better.  This results in increased prosperity for the greatest number of people.

With decreased money velocity, sales of commodities, trades, goods and services decrease. The stock market declines. This results in recessions.

Producer Rewarded Open Market Economics
The Science of Economics
Feb. 19, 2017
By RP Obrigewitsch

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Sunday, February 19th, 2017 Money Velocity and Prosperity No Comments

1.9 Razor Thin Path

Revised November 17, 2013

In this article we will look a applying the prosperity creating laws of economics.  They are contained in the technology of Producer Rewarded Open Market Economics.  This is the razor thin path that must be maintained in order for there to be prosperity.   Applying the correct laws in economics will give us a razor thin path to prosperity.  Surprisingly this razor thin path is easier to follow than we think.

In the Money Velocity section of Producer Reward Open Market Economics we have covered Money Velocity and how it increases or decreases prosperity and affluence of the individual, family, organization societies, nations, mankind and environments.  We have applied velocity to money as it appears in the physical universe.  Velocity is the rates at which energy and objects move.  Money acts and behaves like physical universe energy.  It flows as it changes hands among the individuals who use it for exchanging commodities, trades, goods and services on the Open Market.

With the rewarding of Producers the speed of money increases as it changes hands, it is like an energy flowing throughout the society.  This energy flow links all people together on the planet.  This energy is created by Producers and is like a life force for mankind and all life.  It can enhance prosperity for all life on the planet.   As this energy flows, at faster rates, the society gains in prosperity, morale increases, the society has greater self confidence and sanity, the prosperity potential of all individuals in the society increases.  Money is like energy, increasing money velocity is like increasing the energy flow of the society.  This gives the society power; this is the reserve strength of a Nation.  Power in a society, nation and mankind is directly related to rewarding Producers.  Rewarding Producers leads to ever increasing money velocity. This velocity of money flowing gives a Nation power, prosperity and affluence.

The true power in a Nation resides in its production level and the money velocity of that Nation.  A Nation with a high production level and a great money velocity doesn’t need excessive military spending.  The production level and money velocity is the reserve strength of a Nation.  The production level is the strength of the Nation.  It can be converted rapidly into defensive needs.  A Nation with high production levels and a great money velocity is very unlikely to ever need to use the counter-productive activities of war and excessive military spending.

In this article we will be discussing the importance of following a razor thin path to achieve prosperity.  It is found that abundant prosperity occurs when life forms live by prosperity creating rules.  They are following a “razor thin path.”  In this article we are looking at the field of economics.  There are other fields where there are “razor thin paths” such as Physics, Chemistry, Accounting, Genetics, Dentistry, Medical Doctoring, Animal Science, Biology, Zoology, Botany, The Constitution of the United States, most religions, etc.  People in successful marriages live within agreed upon rules of play, they are on the razor thin path and they are happy.

People in organizations, societies and nations prosper well; when they live within agreed upon rules of play for the organization, society and nation.  Producers in the true form of a Producer are on the razor thin path.  They are on the razor thin path when they are producing products and receiving money for their production.  They are on the razor thin path when they market their products on the Open Market.  They are on the razor thin path when they demand and maintain a Constant Money Supply.  The rules or Axioms of Economics, knowingly or unknowingly being followed, are the “razor thin path.”

Non-producers and counter-producers are non-producers and counter-producers because they don’t follow the prosperity rules in economics and in life in general.  They have a very high dislike for rules.  They are on the path to destruction and trying to take all life and even the physical universe with them.  They have one rule and that is to create as much chaos as possible.  They believe there is such a state as “no government.”  A condition of no government is a state where no rules of existence or prosperity are defined.  If there are defined rules of prosperity the non-producers and counter-producers would not follow that path.

Non-producers and count-producers are a very unhappy lot.  They tend to lessen the prosperity levels of those individuals around them with their destructive efforts.  Producers are happy, considerate individuals who have the thrust to bring all individuals around them to higher levels of prosperity as they produce wealth.

Producers in the realm of mankind and all life seek exact rules to follow.  They have inherent in their basic nature the desire to follow the exact rules that give them and all life the greatest level of prosperity and survival.  Non-producers and counter-producers have the desire to violate rules and exact methods used to create prosperity.  They are there to destroy either by receiving money for no production or by receiving money for creating destructive commodities, trade, goods and services.

The Producer does follow the razor thin path of creating prosperity in all fields.  He/she does the best they can in making sure they are on the razor thin path because this path leads to continued increasing prosperity and affluence.

I want to validate this characteristic present in the Producer.  The Producers are constantly being invalided, by the non-producer and counter-producer.  They are invalidated for their ability to follow the “razor thin path.”  They are attacked with phrases such as, “you worry too much, you are no fun, let your hair down, you are a stick in the mud, rules are made to be broken, you work too hard, you need to retire early, have some fun in life, have some drugs, go out on your spouse because no one will know, use other peoples money, if it feels good do it, etc.”

Prosperity for an individual, family, organization, society, nation, mankind and environments is achieved by following the razor thin path.  This razor thin path is laid out by the Axioms of Economics and the technology of Producer Rewarded Open Market Economics, a Capital Producing Economic system.

Money velocity increases are achieved by following the razor thin path laid out by the Axioms of Producers Rewarded Open Market Economics.

Rewarding production increases money velocity and brings about higher and higher levels of affluence and prosperity. Rewarding non-production and counter-production decreases money velocity and brings about lower and lower levels of affluence and prosperity.

The accurate rewarding of Producers plays a vital role in increasing money velocity and prosperity in a society.

It is not simply a matter of paying producers for their production but making sure they are not under paid or over paid.  The over payment or the under payment for production brings about a decrease in a society’s standard of living.  There is really only one path which leads to economic prosperity and it is the straight “razor thin path” of Producer Rewarded Open Marker Economics Axioms.  This is demonstrated in studying the History of Economics.  It is also demonstrated in studying the History of several countries and societies of the world.

The conclusion after these studies is: “Prosperity has always been achieved by rewarding the Producers and the Producers have always created the prosperity.”  You can cast this statement in stone.

The analytical layout of the Axioms of Economics discussed in the Money Velocity section of Producer Rewarded Open Market Economics should, if applied, bring prosperity to all who play this game of economics.

The ups and downs in economics will never be entirely removed.  With the application of the Axioms there will be a much smoother economic flow.  The ups and downs will be greatly reduced to small ebbs and flows.  Money value, energy and power will see much smaller ups and downs.  Applying the Axioms will greatly stabilize the economic systems on the planet.   Application of the laws put forth here will rid the societies of the wild fluctuations from prosperity down into depressions and up again that we have seen throughout the ages.

Rewarding production brings about prosperity.  In the past, after prosperity was achieved in a society, the Producers got reasonable with the non-producers and counter-producers.  They felt pity and sorry for them.  They granted them power to exist not as Producers, but as non-producers and counter-producers.  Granting non-producers and counter-producers the right to exist as non-producers and counter-producers is “the big mistake.”

Once the counter-producer and non-producer takes charge of the economic system, the economic systems fall into an economic depression is very rapid.  This has been seen throughout history and more importantly in recent times.  When an economy starts to fall into a steep recession or an Economic depression the non-producers and counter-producers have taken charge of a large part of the economy and put it in a fee fall.  The Producers are again stuck with removing the non-producers and counter-producers from power.  After the counter-producers are removed from power, the Producers can once again start recreating prosperity.  The process of removing the non-producers and counter-producers from power can be a long arduous, dangerous and destructive undertaking.  When the task is complete the Producers can once again put the society back on the razor thin path to economic prosperity and affluence.

Best of luck in the application of the principles laid out here.  May prosperity and affluence be with you and your families, organizations, societies, nations, mankind and environments.

Producer Rewarded Open Market Economics
The Science of Economics
May 7, 2012
By: R P Obrigewitsch

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1.8 Producer, Non-producer or Counter-producer

Revised November 17, 2013

This article is about establishing who is, a Producer, Non-producer or Counter-producer.  In this article we will look at the Axioms or tools we can use to determine if one is a Producer, non-producer or counter-producer.  These Axioms can also be used to determine if one is in the Capital Producing Economic System or in the Capital Destroying Economic System.

Axiom 9: A commodity, trade, good or a service is classified as a Product when it is:

A.     Exchanged on the Open Market (open to all on equal terms.)

B.     Needed and wanted and

C.     Does not harm the prosperity of the individual, family, organization, society, mankind and the environment.

When all of the above criteria are met the commodity, trade, good or service is a Product and the person creating the commodity, trade, good or service is a Producer.

When all of the above criteria are not met, the created commodity, trade, good or service is not classified as a product.  At best the individual creating the commodity, trade, good or service is a rewarded non-producer or a rewarded counter-producer.  The individual is a rewarded non-producer or counter-producer when he receives money without exchanging a commodity, trade, good or service on the Open Market for the money.  It is very important that all commodities, trade, goods and services be exchanged on the Open Market.  Demand for the commodity, trade, good and service on the Open Market establishes the correct value for the marketed commodity, trade, good or service.  This is the only way one can get the correct value established for the commodity, trade, good or service.  The correct value is translated into and expressed in terms of money units when the commodity, trade, good or service passes through the Open Market.

The individual is also a rewarded non-producer or counter-producer when he receives money for commodities, trades, goods and services that are not needed and wanted.  When there is no demand for a commodity, trade, good or service, the commodity, trade, good or service has no value placed on it.  It is the demand thrust or force, in the Open Market, which places monetary value on each commodity, trade, good or service.  When something is not needed and wanted there is no demand thrust or force placed on this something and this something has no value that can be translated into money units.  When one takes money for something that is not needed and wanted he is out exchange.  Individuals, rich to poor, who receive money for no production, are on welfare.  They are non-producers or counter-producers.

An individual is a counter-producer when money is taken in exchange for something that is harmful to the individual, the family, organization, society, nation, mankind and environments.  Counter-producers take money in exchange for destroying prosperity.

When all the criteria that classify a commodity, trade, good or service as a product are valid, the commodity, trade, good, or service is classified as a product.  The individual receiving money for them is a Producer operating in the Capital Producing Economic System.  When any of the criterion that classify a commodity, trade, good or service is violated, the commodity, trade, good or service is not a product.   The individual receiving money for them is a non-producer or a counter-producer operating in the Capital Destroying Economic System.

Axiom 10:      One does not decide to back money with production, production backs money.  Production gives money its value, energy, and power.

This Axiom is very, very basic to Economics.  It is a wonder this basic Axiom has not been emphasized ad nauseam in the education of Economics students and in the education of people in all societies.  This information should be known cold.  The citizens should know this like counting from 1 to 10 or like they know their names or the alphabet.  This truth is so simple and basic to the prosperity of the whole economic system.  Without it known, it is a wonder there is any economic existence on the planet at all.  This Axiom is as true and basic to economics as the Law of Gravity is to Physics.

I am severely, severely emphasizing this Axiom.  If everyone on the planet knew and could apply this Axiom. Production gives money its value, energy, and power it is unimaginable how much prosperity we would have on this planet.  Everyone would know how to create money, value, energy, wealth, capital and power.  Honest individuals would not take money without production exchanged for it.  The only individuals who would take money without production being exchanged for it would be criminals or the extremely handicapped.  Individuals would know how money symbols, pieces of paper and metal objects, get their value, power and energy.  A tremendous amount of confusion would be eliminated.

The counter-producers could be very easily detected.  Today they hide, because of the ignorance of the technology in economics.  The counter-producers hide and hold onto the money, slowing the money velocity flow.   They take money in exchange for destruction; they destroy the value, power and energy inherent in the money units.  The Producers create the value, power and energy residing in the money units.  The counter-producers destroy the value, power and energy residing in the money units; they suck the energy out of the money units and the society.  Whenever the money velocity is slowed; money value, power and energy is destroyed.  Wealth and capital are also destroyed.

Axiom 11:       A created commodity, trade, good or service is not classified as a product until that commodity, trade, good or service is marketed and sold on the Open Market.

 Axiom 12:       A commodity, trade, good or service is not a product if it harms the prosperity of the individual, family, organization, society, nation, mankind or environments.

 Axiom 13:       A commodity, trade, good or service that harms the prosperity of the individual, family, society, nation, mankind or environment is a criminal product.

 Axiom 24:       Producers are the main beams, support structures and back bone of a family, organization, society, nation, mankind and environments.  The prosperity of a family, organization, society, nation, mankind and environments rests on the backs of the Producers.

 Axiom 66:       If an individual is prospering and the individual is not producing, the individual is living off the backs of Producers.   This individual is lessening those producers prosperity as well as his own prosperity.  This is a rewarded non-producer or counter-producer on welfare.

Also, if an individual is receiving more money than he is producing in production value exchanged for it, he is partially living off the backs of Producers and is a rewarded non-producer or counter-producer on welfare.

 These Axioms cover individuals as Producers, non-producers and counter-producers from the poorest class to the wealthiest class.

The Producers create energy.  They use the energy they have created to create production.  The products are placed on the Market where an energy flow is generated.  The exchanging of commodities, trades, goods and services on the Market is, in its simplest terms, an exchange of energy for energy.

Energy flows are generated among all Producers participating in a Market. The Market becomes much like a living entity.  The energy flows of this Open Market entity are converted into Market forces directed by the ideas and agreements of the Producers.  The Open Market occupies space created by Producers for the purpose of exchanging commodities, trades, goods and services.  This space can be created anywhere, anytime producers meet and exchange commodities, trades, goods and services.

Each individual has his or her own space.  You probably have experienced, on limited bases, another individual’s space.  Recall interacting with another individual and how well you got along.  You actually made contact with their space and it meshed well with your space.  Your two spaces had a lot of agreement.  Also, recall interacting with another individual and how you didn’t feel good around that individual.  You contacted an individual with a space that did not agree with your space.  On Facebook and in life people tend to invite individuals with similar spaces to be their friends.

When we create a Market or an Open Market we are interacting with at least one other individual’s space.  A Market is the interplay of individual space.  You and your pace are interacting with from one to many other individual’s spaces by way of or through the physical universe.  The physical universe is the space that is common to all individuals.  We have it in common.  We see, feel and hear the physical universe.  Each individual’s space is pretty much off limits to the senses of others.  The physical universe is the medium we use, when we interplay our space with the spaces of other individuals.

Producers control their space and the physical universe.  Producers use their space to create models of the commodity, trade, good or service they want to create in the physical universe.  They interplay their space with the physical universe.  From this interplay the model is transferred to and created in the physical universe.  This is production.

Non-producers don’t create in their physical universe environment.   Producers compensate for this by allowing non-producers to have money for no production exchanged.

Counter-producers create destructive activities in the physical universe environment.   They create destructive activities against prosperity.   Counter-producers will create activities that cannot be classified as products.  Their activities will be based on false information, incorrect perceptions, desires to destroy, misunderstandings and not doing a thorough evaluation of the consequences of their creation.  Their personal space models used in creating destructive activities are also based on false information, incorrect perceptions, desire to destroy, misunderstandings and not doing a thorough evaluation of the consequences of their creations.

An example of not doing a thorough evaluation of the consequence of their creation is in the field of Nuclear Energy.  When a thorough evaluation of the field of Nuclear Energy is made it is shown that the radioactive waste material will be a menace to the survival and prosperity of the individual, family, organization, society, mankind nations and environments for thousands if not millions of years.  It will be impossible to seal and make safe all the radioactive waste materials for that long a period of time.  It is almost certain that survival and prosperity will be harmed many times by these radioactive materials until the radiating life of the waste material has expired.

The counter-producer will, in many cases, rabidly create models of destructive commodities, trades, goods and services.  He will rabidly stand by his destructive creations with great conviction and justification.  He will demand money and in many cases demand huge sums of money for his destructive creations.  Counter-producers usually know they are creating destructive commodities, trades, goods and services.

When Producers Market their production on the Open Market, they create more interplay between spaces.  They take their space and interplay it with one or several other Producer’s spaces through the medium of the physical universe.  Of course their products are located in the physical universe.  They are inter-playing, their spaces, with each other in order to exchange the commodity, trade, good or service on the Open Market.

This interaction by Producers, on the Open Market, when trading their production generates the energy in the Market.  This energy is symbolized by the use of money units.  This is where the individual, family, organization, society, nation, mankind and environments get their prosperity energy.

Counter-producers are creating a negative energy flow when they market destructive commodities, trades, goods and services.  They are taking money (energy) out of the Market with no energy in the form of true commodities, trades, goods and services placed on the Market.  Their commodities, trades, goods and services harm the prosperity of the individuals, families, organizations, societies, nations, mankind and environments.  This harm cuts down on the production level of the producers.  This reduces the energy generated in the Market.  The whole society, organizations, mankind, nations, families and individuals see their prosperity potential lowered.

Counter-producers also grab and hold onto energy and power in the form of money.  They slow the velocity of money energy.  Money is an energy flow.  When money flows increase though a society we see prosperity increasing.  When money flows are decreased or stopped we see prosperity decreasing.  The counter-producers grab and hold money, their game is to stop the flow of money.  They take money from the Producers working for them, in many cases, and place it into their pockets without a correct exchange for it.  They accumulate massive amounts of money, value, energy, wealth, capital and power without exchange for it.  They literally stop the flow of money, destroying value, energy, wealth, capital and power.  They take money in exchange for destruction.

We can see the importance of the existence of the Producer.  The Producer creates all of the prosperity one sees in the society.  He truly is the King of the planet.  He puts his attention on production.  He creates production in his mind (space) and translates it into the physical universe.

Throughout time the Producer has seldom received the correct exchange for his production.  The counter-producers have played a huge role throughout history in squashing the Producers.

With this information from Producer Rewarded Open Market Economics we can move forward in applying a workable economic technology.  This is a technology that will reward Producers.  When applying the technology of rewarding production we will create an incentive for everyone to BE a Producer.  Today we reside in an economic system that concentrates attention on rewarding non-production or counter-production.  The incentive today is to take money and wealth without production in exchange for it.  We can and must turn this attitude around so all who choose to produce will be rewarded for producing.  Rewarding production will give incentive for all to produce, moving all Producers toward great prosperity.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
April 22, 2012

 

 

 

 

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Sunday, April 22nd, 2012 Money Velocity and Prosperity No Comments

1.7 Capital Destroying Economics

Revised November 17, 2013

In the previous article we started to deal with the Capital Destroying Class of Capitalism.  We discussed the fact, earlier, that there are two classifications of Capitalism.  There is the prosperity creating classification and there is the prosperity destroying classification.  The prosperity creating classification is Capital Producing Economics.  Producer Rewarded Open Market Economics is a Capital Producing Economics System.   Capital Producing Capitalism is a Capital Producing Economics System.

The prosperity destroying classification is Capital Destroying Economics.  Capital Destroying Capitalism is in the Capital Destroying Economic System.  Communism and Fascism are also in the Capital Destroying Economic System.

Capital as used in economics means; the amount of money or property that a company or a person uses in carrying on a business.  Capital also means; national or individual wealth as produced by industry and available for reinvestment in the production of goods.

Destroy or destroying means:   1. to break to pieces; make useless; spoil; ruin:  2. to put and end to; do away with.  Destroy means: to make useless by breaking to pieces, taking apart, killing, or in any other of many ways. 

When non-producers and counter-producers take money without an exchange for it they cause the value, energy, wealth and power in money to be less.  Money loses purchasing power when non-producers and counter-producers take it without an exchange, of an equal production value, for the money.  Rewarding non-producers and counter-producers causes money to have less value and energy per money unit; they spoil and ruin the value and energy in money.  When Banks expand the money supply, they cause money to have less value and energy per money unit.  They spoil and ruin the value and energy money possesses.

The Capital Destroying Economic system is predominantly being used, today, on planet earth.  This system of Economics causes wild fluctuations between prosperity, recessions and depressions in the field of Economics.  Much confusion is caused when attempting to produce prosperity using Capital Destroying Economics.  It is a covertly destructive and chaotic system of economics.  Anytime prosperity is achieved, the Capital Destroying Economic system eventually goes into a self-destruct mode and collapses the economic prosperity.

This economic collapse is brought about by allowing non-producers and counter-producers into the Marketing system.  It is caused by allowing non-producers and counter-producers into the Money Supply.   This economic collapse is caused by believing we should allow rich and powerful people to take money without an exchange or not enough exchange for it.  An economic collapse is also brought about by believing we need people in the emotional states of chronic anger, hostility and covert hostility running our Companies, Corporations and Political Systems.  On the Planet today, people of the emotional states of chronic anger, hostility and covert hostility are mistaken for sane and able people.  After all, they appear to “know,” with such “force and/or smoothness!”   They appear to know what they are doing and they appear to be “right!”

People in the emotional states of chronic anger, hostility and covert hostility are destructive.  They, because of their negative emotional state, are non-producers and counter-producers.  Their product is the destruction of the companies they work for and the countries they run politically.  They are destroyers of Capital!  They hire and promote people of their own emotional state; chronic anger, hostility and covert hostility.  The companies, corporations and nations that do prosper, prosper despite the counter-efforts of the leaders in the emotional states of chronic anger, hostility and covert hostility.

They prosper because they have a few Super Producers working in key positions in the Organizations.  These Super Producers make production happen despite anything.  They are very able individuals; they don’t let the destructive leaders destroy the Organization.  They produce and produce and find ways to get around the counter-efforts of the destructive non-producing and counter-producing leaders.  Usually they get promoted to a certain level and don’t get promoted any farther even though they carry the Organization on their backs.  The destructive non-producers and counter-producers leading the Organizations; believe it is leading by anger and hostility that is causing the success of the Organization.  When the Super Producers leave the Organization, the Organization collapses. The destructive non-producing and counter-producing leaders can’t understand what caused the collapse.  They are usually clueless because they live off the back of the Super Producer.  They are unaware the Super Producer was the key to the organizations success.  The destructive non-producers and counter-producers have their attention on destructive activities.  They don’t notice constructive activities in progress.

You can spot the chronically angry, hostile and covertly hostile person (leader or worker) by observing how they communicate and by what they do in their activities.  They communicate in general terms.  They are very often out sequence and non-sequitur in their discussions.  They can be very literal in their interpretation of a piece of communication.  They can be found involved in excessive alcohol and drug use.  They can be found to be involved in unusual sex practices, such as with prostitutes and with many partners.  The Producer and Super Producer will overlook and compensate for the faults of the chronically destructive leader and worker.  Meanwhile the company, corporation or nation suffers and follows an economic decline as money, value, energy, wealth, capital and power is destroyed.  The destructive leaders destroy prosperity.

In many Organizations on Planet Earth; when you find the Organization prosperous, you will find a few Super Producers holding it up despite all the counter-efforts of the destructive leaders and workers in the Organization.  In many Organizations on Planet Earth you will find a Super Producing Leader maintaining a high prosperity level despite the counter-efforts of some destructive non-producing and counter-producing workers inside the Organization.

Steve Jobs is an example of a Super Producing Leader.  The Board of Directors of Apple fired him.  The company almost died.  He came back and brought it back to prosperity.  When you find an Organization being led by Super Producers, the Organization is usually doing very well.  The trick is to get all positions in an Organization filled with Producers or Super Producers.

Over many, many years, Capital Destroying Economics has brought about much suffering and hardship for many people, organizations, families, societies and Nations.  Capital Destroying Economics in its basic form rewards non-production and counter-produces.  It provides for the concentration of wealth along with the power derived from wealth to be placed into the hands of a small group of non-producers and counter-producers.  These non-producers and counter-producers have not created products that can be exchanged on the Open Market for the wealth.

Capital Destroying Economics provides for the transference of wealth, created by the Producers and Super Producers in an Organization.  The wealth is transferred from the Producers and Super Producers into the hands of the chronically destructive leaders of an Organization.  Wealth is also transferred from the Producers and Super Producers into the hands of all other non-producers and counter-producers existing in an Organization.

The concentration of Capital into the hands of a few non-producers and counter-producers has given them tremendous power.  They have used this power to take over the political system. With these political systems, Communism, Fascism, Right Wingism and even Left Wingism, they establish laws that create a legal structure they use to funnel much of the Capital created by Producers into their hands.

Production is the action of doing and converting energy into a product.  Marketing is the action of exchanging products for products among Producers. This is basic Marketing; exchanging products for products.  Barter is exchanging products for products.  In more advanced Marketing, Products are exchanged for money units. When products are exchanged for money units, money units are being used as a medium to transport value from the product.  We take this one step further; we say money is also a symbol in which the energy generated to create products is transported to the money unit during Marketing.

The energy used to create the products continues to flow in a society as long as products are “always” exchanged for money units.  More and more energy is being created and added to the Open Market.  As this energy level grows we see money velocity increase.  This increase in money velocity means money is changing hands more rapidly in the society.  This energy can be felt when a society achieves prosperity.  The individuals and the society are much more alive and vibrant.  Non-producing and counter-producing Capital destroyers don’t like this high energy level.  Producers love this high energy level, they revel in it!

When money is taken from the Market with no exchange in production, energy is being removed from the Market.  When this energy is removed from the Market it gets destroyed disappears or vanishes.  The money units, that are the symbols for this energy, lose value.  This is where money (Capital) gets destroyed.  Money velocity slows.  Money value and the amount of energy in each money unit decreases.  A recession starts, if ever so slightly.  With the out-exchange increasing, more and more money value or money energy (Capital) gets destroyed.  Money loses value and energy causing money velocity to slow.  Money value and energy, as Capital, is being destroyed.  All other forms of Capital start to lose value.  What we are describing here is a state of Capital Destruction.

Banks expanding the money supply, speculators who exchange nothing for the huge sums of money they take are huge destroyers of Capital.  Excessive military spending and wars are huge destroyers of Capital.  Any out-exchange activity is a destroyer of Capital.  Monopolies are destroyers of Capital.  Many of the most ardent advocators of Capitalism practice Capital Destroying Economics.  They are engaged, in a big way, in the destruction of Capital.

You ask, “Why is Capital Destroying Economics so destructive?”   Capital Destroying Economics destroys prosperity, it eats up wealth and Capital, it consumes prosperity until a society literally dies and if it doesn’t totally die out it causes tremendous hardship and suffering.

Examples of Capital Destroying Economics at work can be found around the world and throughout history.  Almost all wars are the result of Capital Destroying Economics at work.  The depressed conditions of Third World Nations are traced to practices of Capital Destroying Economics.  The current Great Recession of 2008 is the result of Capital Destroying Economics being practiced.  Communism is a Capital Destroying Economic System developed as a solution to past practices of Capital Destroying Economics.  Communism came into existence as an answer to Capital Destroying Capitalism.  Desperate people under the rule of the Capital Destroying class of Capitalism agreed to accept Communism.  They had two choices, death or Communism.  They chose Communism which wasn’t any better than Capital Destroying Capitalism.  They are still mired in a Capital Destroying Economic system.  Communism is a Capital Destroying Economic System.  They went from one Capital Destroying Economic System into another Capital Destroying Economic System.

Now that we have seen the consequences of Capital Destroying Economics we can see why we need to insist on working toward a pure Capital Producing Economic System.  It is self evident that Capital Destroying Economics slows money velocity and destroys Capital.  It also is self evident that Capital Producing Economics, Producer Rewarded Open Market Economics, increases money velocity, increases the value and energy in Capital and money and leads to abundant prosperity.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 13, 2012

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Tuesday, March 13th, 2012 Money Velocity and Prosperity No Comments

1.6 Why Money Velocity Slows

Revised November 17, 2113

We are talking about money velocity here.  We are talking about why money velocity slows and why it speeds up.  Money velocity is the flow of energy.  It flows throughout a society.  Money is a symbol that represents production value, production energy and production power.  It also represents wealth and capital.  In this article we will look at money as a “symbol of production energy.”  Production energy is the prosperity energy for an individual, family, organization, society, nation and mankind.  In a society, money velocity increases and decreases depending on the production level of the society.  Money velocity also depends 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 (commodities, trades, 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 (commodities, trades, 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 wealthy non-producers and counter-producers.  There has been much attention placed on the catastrophes caused by rewarding wealthy and powerful non-producers and counter-producers.   The wealthy and powerful non-producers and counter-produces cause great destruction.  However, all forms of rewarding non-production and counter-production harm individuals, families, organizations, societies, nations, mankind and environments.  As we move into the future we will work on perfecting the Producer Rewarded Open Market Economic System.   Producers will become more aware of the consequences of rewarding all non-producers and counter-producers.  This awareness will allow us to prevent non-producers and counter-producers from taking money without an exchange for it.  The exchange must be in self-created products.  We will work at perfecting the Producer Rewarded Open Market Economic System.  We will work with the purpose of having a tremendous prosperity potential for all individuals, families, organizations, societies, nations, mankind and environments.

Other than natural and “God” given causes, the only reason why money velocity slows down and societies find themselves in recessions, depressions and chronic depressions stems from and only from rewarding non-producers and counter-producers.  This is the action of giving money to non-producers and counter-producers who place no production or not enough production on the Open Market in exchange for the money.  The action of rewarding non-producers and counter-producers is giving them money energy with no exchange for it.  This is allowing them to take money with no or not enough production on the Open Market in exchange for this money energy.  The action of placing money energy into the hands of non-producers and counter-producers brings about the destruction of money, value, energy, wealth, capital and power.  This destruction of money, value, energy, wealth, capital and power 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 Capitalism is in this classification.  Capital Destroying Capitalism is the destructive part of Capitalism.  Capital Destroying Capitalism is in the classification of Capital Destroying Economics.    

Remember there are two classifications of Capitalism.  They are the prosperity creating types and the prosperity destroying types.   They are  Capital Producing Capitalism and Capital Destroying Capitalism.  The Prosperity creating types are classified as Capital Producing Economics.  They are Producer Rewarded Open Market Economics and Capital Producing Capitalism.

The prosperity destroying types are classified under Capital Destroying Economics.  They are Capital Destroying Capitalism, Communism and Fascism.  The reason the name Capital Destroying Economics was given was because rewarding non-production and counter-production literally destroys money, value, energy, wealth, capital and power.  This destruction brings about the destruction of Producing individuals, families, societies, nations, mankind and environments.

On inspection we find Communism, Fascism as well in the destructive classification of  Capital Destroying Economics.

This destructive classification of Capitalism, where wealth is concentrated with its power and influence into the hands of a few non-producers and counter-producers, causes great hardship and suffering.

Communism and Fascism are also destructive systems of economics.  These two systems also concentrate wealth with its power and influence into the hands of a few non-producers and counter-producers.  This activity also leads to great hardships and suffering.

What do these three destructive economic systems; Capital Destroying Capitalism, Communism and Fascism;  have in common?  The have a money velocity that is flowing very slowly.  Their citizens are living under great hardship and suffering.  They are mired in prolonged economic depressions.

We find, in the above three systems, the few powerful non-producers and counter-producers tend to be hiding.  The money, energy and power are concentrated into their hands.  They use it to have a tremendous influence on their societies and nations.  They use it to set up systems where they can take more money, value, energy, wealth, capital and power without exchanging production for it.  We find these rewarded non-producers and counter-producers hiding. They hide, grab and hold onto the money, value, energy, wealth, capital and power.  They horde and stop the flow of 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 and counter-producers are hiding in or as their objects!”   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 prosperity in their societies.

These rewarded non-producers and counter-producers are hard to spot.  They hide, grab and hold onto money energy, production energy and prosperity energy.  They seldom stand up and admit their true purpose.  Instead they will hide behind other issues such as a balanced budget, 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.  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 assert their hidden purpose.  Their hidden purpose is to concentrate more money, value, energy, wealth, capital and power into their hands.  They grab and hold more money, value, energy, wealth, capital and power.  They will use the enemies they “create” to promote war.  War is another means for the non-producers and counter-producers to transfer more money, value, energy, wealth, capital and power into their hands.  They steal the prosperity energy and production energy from the Producers.  They steal the value, energy, wealth, capital and power from the Producers.

We find long recessions and depressions.  We find a slowed money velocity.  This is caused by moving wealth from Producers.  The wealth is placed into the hands of a few powerful non-producers and counter-producers who have not created it.

There are tools to determine: What is production and what is non-production?  What is counter-production?  Who are the Producers? Who are the non-producers?  Who are the counter-producers?  There are tools to determine whether we are Capital Producers or Capital Destroyers.

What is a Product?

 A commodity, trade, 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 prosperity to the  individual, family, organization, society, mankind, nation and/or environment.

Or it can be more fully explained by saying, “it causes the greatest prosperity to the greatest number of people.”   Another way of saying it is, “it causes the least harm to the greatest number of people.”

DEFINITION OF A PRODUCER:

AXIOM 23:  A Producer is a person who:

A.  Creates a commodity, trade, good or service,

B.  The commodity, trade, good or service must be needed and wanted,

C.  The commodity, trade, 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 prosperity of the individual, family, organization, society, nation, mankind and environments.

AXIOM 24:  Producers are the main beams, support structure and back bone of a society and a Nation.  The prosperity 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 other than natural causes.  They all come down to rewarding non-production and counter-production.  Non-producers and counter-producers are the destroyers of capital, money, value, energy, wealth and power.

We can use the Technology in Producer Rewarded Open Market Economics to create and expand our prosperity creating 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 create money, value, energy, wealth, capital and power.  The Producers have always sought to increase the money velocity.  They have sought ways to make sure everyone who produced received their production value and production energy in exchange 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 prosperity,  energy, wealth, capital and power for ourselves, families, organizations, societies, nations, mankind and environments.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 4, 2012

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1.5 Production Efficiency

Revised 11-16-13

Efficiency is the ability to create production without the waste of time and energy.  Production efficiency is a much sought after goal.  This means the Producer’s, the Laborer’s or the Worker’s goal is to produce the same commodities, trades, goods and services in less time and with less energy than was done before.  Producers have an innate drive to increase production efficiency.  Non-producers do not have an innate drive to increase production efficiency.  Non-producers waste time and energy.  Counter-producers thrust against increasing production efficiency.   They try to operate with less efficient methods.

Production efficiency plays a large part in money velocity and in prosperity.  Anytime Producers can increase their production output their income will rise.  Their income will rise provided the producers of the increased commodities, trades, goods and services receive all of the increase in money, value, energy, wealth, capital and power they have created with this increase in production.

When non-producers and counter-producers are allowed to take this increased money and wealth, an increase in prosperity for the Producing individuals and the society will not be realized.  We are currently witnessing the result of this rewarding the non-producers and counter-producers phenomena in the United States and all around the world today in 2012.  I am talking about the phenomena of allowing the non-producers and counter-producers to take the wealth and money which was created by the Producers.

Allowing non-producers to steal the wealth created by Producers, Workers or Laborers has a very destructive effect on the Producers and the society.  It tends to squash the incentive of the Producers.  It is not good for the prosperity of the individuals, family, organization,  society,  Nation and Mankind.  Allowing the non-producers and counter-producers to take the wealth created by the hard work of the Producers drives the Producers into apathy.  When rewarding the non-producers and counter-producers continues too long, or in a more extreme pattern, desperation sets in among the Producers.  This results in demonstrations, riots and the overthrow of governments.  History has examples of these results of rewarding non-producers and counter-producers.

During the past 30 years the production efficiency for the Producers in the United States has greatly increased.  However, income has risen very little, if at all, over that same time period.  This country is in a great recession.  This recession is a manifestation of allowing wealthy non-producers and counter-producers to take the money and wealth created by the Producer’s increased production efficiency.

It is important to remember that Labor and work create money, value, energy, wealth, capital and power.  Labor and work are senior to money, value, wealth, capital and power.  All Producers are Workers and Laborers.  If a person is taking money and is not a Producer, Worker or a Laborer he/she is a non-producer or a counter-producer.  Non-producers and counter-producers have this concept of “Labor and work creates capital” reversed.  They believe capital is senior to Producers, Workers and Laborers.  It is self-evident that capital does not create Production, Work or Labor.  Capital by itself has no productive action and no life.  Labor is alive and Labor puts the action into production, labor is life.  Capital is used by Producers, Workers or Laborers to produce and prosper with.  Labor puts the value, energy, and power into capital.  Producers, Laborers or Workers prosper by using capital to create new production.

“Labor is prior to, and independent of, capital.  Capital is only the fruit of labor, and could never have existed if labor had not first existed.  Labor is the superior of capital, and deserves much the higher consideration.”  Abraham Lincoln

In Producer Rewarded Open Market Economics, production efficiency increases money velocity.  This is when the Producers receive the newly created money.  If non-producers and counter-producers receive the newly created money, money velocity tends to decrease.  Anytime non-production and counter-production is rewarded money velocity decreases along with morale and production.  Producer Rewarded Open Market Economics Technology, when applied, brings about a prosperity thrust (incentive) within the producing individuals.  This prosperity thrust (incentive) tends to create technological advances in production, production efficiency and in new more advanced types of prosperity creating commodities, trades,  goods and services.   This prosperity thrust (incentive) creates new more efficient methods of production.  It also increases money velocity.  The increased money velocity increases the prosperity levels in the societies applying Producer Rewarded Open Market Economics Technology.

As production efficiency increases it leads to increased money velocity.  Rewarding the Producers of the commodities, trades, goods and services increases money velocity and production efficiency.  Rewarding non-producers decreases money velocity, production efficiency and prosperity.

Increases in production efficiency bring about increases in per capita production.  Increases in per capita production places more commodities, trades, goods and services on the Open Market.  This action speeds up the money velocity, leading to increases in prosperity.  The faster or swifter this flow becomes the more prosperity we see in a society.

The money velocity cycle, if increased, will bring about greater affluence and prosperity.  If the money velocity cycle is decreased, recessions and depressions will be the result.  Slight decreases in money velocity bring about recessions.  Greater and greater decreases in money velocity bring about deeper and deeper recessions and eventually will lead to depressions.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
January 29, 2012

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Sunday, January 29th, 2012 Money Velocity and Prosperity No Comments

1.4 The Goal of a Society

Revised November 16, 2013

The goal of a society  is to achieve a pure Producer Rewarded Open Market Economic System.  Producer Rewarded Open Market Economics is a money, value, energy, wealth, capital and power producing economic system.  Producer Rewarded Open Market Economics is a prosperity driven economic system.  This falls under the prosperity creating definition of Capitalism.  This is the first definition of Capitalism in the article, Capital Producing Economics, in http://youcreatemoney.com.   Even when a society is on its way out it maintains this goal.  However, the society has been overpowered by a destructive goal.  This destructive goal is created when the rewarded Counter-producers have over powered the producers.  The producers have gone into agreement with the counter-producers “right” to receive money, value, energy, wealth, capital and power without exchanging commodities, trades, goods and services for it.

The goal of a society in achieving an absolute pure Producer Rewarded Open Market Economic System has been a society’s goal since the beginning of Man’s existence.  The vast majority of the people in a society strive to achieve this prosperity driven economic system.  However, there are people present in all societies who strive to destroy themselves and their society by using Greed Economics or counter-producer rewarded systems.  Systems of Greed Economics or counter-producer Rewarded Economics include Capitalism (Capital Destroying Capitalism.)   Capital Destroying Capitalism alines with definitions 2 and 3 of Capitalism from the article, “Capital Producing Economics.”   Communism and Fascism are also systems of Greed Economics.  Greed Economics includes any systems of economics that have as their base the rewarding of non-producers and counter-producers.  Greed Economics also includes all systems of economics where money, value, energy, wealth, capital and power is concentrated into the hands of those in power.  These are destructive economic systems.

People have an innate knowledge about economics.  They can sense whether a system of economics is prosperity driven or whether it is destructive.  The people who follow the destructive systems know they are harming their society.  They have the intent to do so.

The current economic systems on the Planet operate mindlessly, like a ship with no one at the helm.  They have no technology or rules of play.  They are using the false ideas of non-producer and counter-producer rewarded economics.  Economic researchers study this system of confused mindless operation and try to make sense out of it.  Predictability in this mindless confusion is very difficult.  Prosperity is almost impossible to engineer.

Economics taught in Colleges and Universities teach economics more as the sociology of how man handles money and production.  It is more of a study in sociology than a study in Economics.  It is not defined by a strict Technology or applied rules of play.

True Economics, (Producer Rewarded Open Market Economics) like Physics, Chemistry and the Engineering fields, is a study with exact Axioms.   It is an exact science.  When the Laws (Axioms) of Producer Rewarded Open Market Economics are applied the system can be engineered into explosive prosperity with a very fast money velocity.  This is an operator at the controls economic system as opposed to the current systems of economics.  The current systems of economics are allowed to evolve with no operator at the controls.

Many people believe economics evolves with no director at the helm.  That is not true.  Many times there haven’t been any directors as the helm.  This is during the times when the counter-producers convince the Producers; economics should operate without rules.  When the economic system starts to collapse the Produces take control of the system.  They step up and take control of the economic system they create every day.   They correct the out points and the system becomes prosperous again.  If there were never anyone at the helm directing the economic system, man would have not risen out of the cave days.  The Producers throughout the ages have risen to the task and resurrected collapsing economic systems.  They have been at the helm.  They haven’t consistently been at the helm.  They have taken over the control of the economic system usually as the last resort.  This is when the economic system is in a deep decline, near collapse.

When the Producers don’t take control of the economic system the counter-producers will step right in and steal the money, value, energy, wealth, capital and power from them.  It is a sorry picture to view.  It is like an economic ship traveling at sea with no one at the helm.  The Workers and Labors are working with great productivity.  The non-producers and counter-producers are stealing and dismantling the production as the workers and laborers are creating it.  The workers and laborers are so intent on producing and believing economics is a self evolving entity, they pay very little attention t0 the non-producer and counter-producer.   The Producers believe the non-producers and counter-producers have a right to exist.  The Producers believe the non-producers and counter-producers have a right to expand the money supply.  They believe the non-producers and counter-producers have a right  speculate while destroying markets, take money they haven’t created any production for, etc.  They also believe the rich and powerful counter-producers create the jobs they are working at.  They let this activity go on to an extreme.  When the economic ship is about to sink or is sinking they wake up.  This is when they take the helm and fight to correct the destructive activities of the non-producers and counter-producers.

When you assimilate and apply the Axioms of Producer Rewarded Open Market Economics you can control your economic prosperity.  You are in control.  You are creating your prosperity.  The money value and money energy you create is yours!  No one can arbitrarily take it from you.  Your prosperity, the prosperity of your society, your Nation and Mankind is enhanced.

The current system of economics, based on rewarding the non-producer and counter-producer, leaves you in a declining state in the game of economics.  A declining economic state doesn’t feel very good.  You are being harmed by the non-producers and counter-producers.  They can take your production from you with no exchange for it in return.  Your prosperity, the prosperity of your society, your Nation and Mankind is harmed.

Producer Rewarded Open Market Economics gives the technology and the rules of play in the field of Economics.  These (Axioms) rules of play have always been here.  This is the tabulation of them.  Anyone learning, understanding, assimilating and applying this technology and rules of play, is operating at the helm of his or her economic ship.  They can pilot themselves as well as those around them on their economic adventure in life.  When most people in a society know, understand and have assimilated the technology of Producer Rewarded Open Market Economics they can apply it.  They can apply the technology to the economic system of their society.   Many people will take over the helm of their economic system.  Prosperity will be great!  Money velocity will be at its optimum level and increasing in velocity.

Producer Rewarded Open Market Economics is basic to all economic systems.  It is the Science of Economics.  It is natural in the nature of Mankind.  Good honest Men strive to operate in this system.  There is an intuitive awareness of this system innate in Man.  This can be seen by Man’s extremely strong desire to produce.  This can be seen by Man’s strong desire to use money as the medium of exchange.  This can be seen by Man’s efforts in creating a market system he has been trying to make fair for all producers.  This can be seen by Man’s strong desire to create and have a Constant Money Supply.  He has been attempting to create an economic system very close to what we see in Producer Rewarded Open Market Economics without the Axioms written up.  We now have the Axioms in writing.

The current situation on Planet Earth in 2011 is not optimum economically.   The money velocity is not optimum.  The money velocity is moving much slower than it should be.  The rich and powerful non-producers and counter-producers sucked the energy out of the economic systems on the planet in the early years of the 21st century.  This was done by expanding the money supply.  It was done by speculating on the stock market.  It was done by redistributing the wealth of the planet into the hands of a few men in power.  A few rich and powerful non-producers and counter-producers redistributed huge amounts of energy from the 99.9% of the people on the planet into their hands without an exchange for it on the Open Market.

People sense this as an out exchange.  People sense this as a destructive activity.  They know it is destructive.  They have been made to be very confused by the rich non-producers and counter-producers who redistributed the wealth.  These rich non-producers and counter-producers hire paid propagandists who operate on a daily basis spreading lies, deception and propaganda, blaming Producers and others for the economic recession.

The 99.9% of the people who lost their money need this technology.  They need this technology so they can understand what is happening.  They need this technology so they can take control of the helm of their economic ship and set it on a prosperity course.  They sense this Producer Rewarded Open Market Technology exists.  If they can get this technology, they will use it to operate their economic ship on the razor thin path to economic prosperity.

The fastest way a society can achieve the highest level of living standard without developing new more efficient methods of production is to achieve pure Producer Rewarded Open Market Economics.   It is a Capital Producing Economic System.  Producer Rewarded Open Market Economics gives an optimum rate of money velocity.  It also generates prosperity.   Once this is in place a society can look at more efficient methods of production.  More efficient methods of production will further increase money velocity, prosperity and living standards.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
September 11, 2011

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Sunday, September 11th, 2011 Money Velocity and Prosperity No Comments

1.3 Vampire Economics

Revised November 16, 2013

Capital Destroying Capitalism or Non-producer and Counter-producer Rewarded Economics is a Vampire Economics system.  This destructive economic system sucks the life-blood out of an individual, family, organization, society,  nation, mankind and environments.  Money, the symbol for production value and production energy, is the life blood of an organization, society and nation.  Vampire Economics leads to recessions, depressions and even to the death of a society and nation.  If the society and nation doesn’t die under Capital Destroying Economics a non-producer and counter-producer rewarded economics system, suffering becomes extreme to the point where Communism and Fascism rise out of the ashes of this failed economic system.

This leads to reigns of terror and suffering until the Producers using Producer Rewarded Open Market Economics recreate prosperity.  Throughout history Producer Rewarded Open Market Economics has always striven to create prosperity.  We would be back in the cave stage of civilization if the Producers hadn’t eventually always prevailed.  These periods of suffering and reigns of terror don’t have to take place.  We need to stay on the razor thin road of Producer Rewarded Open Market Economics and we will prosper over time in very good condition.  We will have optimum money velocity and prosperity on this road of rewarding the producers.

Definition 3 of Capitalism covered in the article titled “Capital Producing Economics,” also aligns with Capital Destroying Economics and non-producer/ counter-producer  Rewarded Economics.  This type of Capitalism like definition 2 leads to much suffering and death.  This is vampire economics.  Anytime money is taken from the Producers (creators of it) and given to the non-producers and counter-producers, in any form, production incentives decline causing production to decline along with a decline in money velocity.  This will lead to the eventual death of a society and nation unless the Producers are correctly rewarded.  If death does not occur, then we see much suffering and starvation leading to counter-producer rewarded systems of Communism and Fascism.  The counter-producers operating these vampire economics systems steal the money value, energy, wealth, capital and power from the Producers in the societies and nations.  These types of societies are ruled by rewarded non-producers and counter-producers who are on the road to destruction and are willing to take all with them.

Maintaining an optimum money velocity is achieved by fully rewarding the Producers of the money, value, energy, wealth, capital and power in the society and nation.  In the past history of Man’s Economics, the Producers have always saved the day in most cases.  Now that we have the Technology of Economics, Producer Rewarded Open Market Economics, written down we can take it and knowingly use it to maintain a high level of production prosperity and money velocity.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev: September 1, 2011

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Thursday, September 1st, 2011 Money Velocity and Prosperity No Comments

1.2 Capital Producing Economics

Revised November 16, 2013

In capital producing economics we find economics systems that create capital, money, value, energy, wealth and power.  Today there are two types of Capitalism in use.  They are Capital Producing Capitalism and Capital Destroying Capitalism.  Capital Producing Capitalism is in Capital Producing Economics.  Capital Producing Capitalism creates capital, money, value, energy, wealth and power.  Capital Producing Capitalism has Open Markets, open to all on equal terms.  Capital Producing Capitalism has a Constant Money Supply.  Producers are rewarded in full for their production. Capital Producing Capitalism gives increasing money velocities and prosperity.

Capital Destroying Capitalism is not in Capital Producing Economics.  Capital Destroying Capitalism is in Capital Destroying Economics.   It destroys capital, money, value, energy, wealth and power.   Capital Destroying Capitalism gives decreasing money velocities.  It also gives recessions and depressions.

Producer Rewarded Open Market Economics creates capital, money, value, energy, wealth and power.  It is part of Capital Producing Economics.  All economic systems that create capital are part of Capital Producing Economics.

All Economic Systems in use today can be classified into the two general classifications.  The first classification is Capital Producing Economics.  The second classification is Capital Destroying Economics.

The names of these two classifications are self explanatory in their meanings.  The Capital Producing System of economics is a system of economics which produces capital, money, value, energy, wealth and power.  The Capital Destroying System of economics is a system of economics which destroys capital, money, value, energy, wealth, and power.  Capital, money, value, energy, wealth and power are created by the Producers in an organization,  Society and Nation.

Capital Producing Capitalism and Producer Rewarded Open Market Economics align with the first definition of Capitalism in the Thorndyke Barnhard World Book Dictionary, copyright 1989.

  • Capitalism:
  • Definition 1.  An economic system in which private individuals or groups of individuals own land, factories and other means of production.  They compete with one another, using hired labor or other persons, to produce goods and services for profit.
  • Definition 2.  The Concentration of wealth with its power and influence in the hands of a few.
  • Definition 3.  A system which favors the existence of Capitalists or the concentration of wealth in the hands of a few.

Definition 1 aligns with Capital Producing Capitalism and Producer rewarded Open Market Economics.  These are prosperity generating economic systems.  They increase money velocity and prosperity.

Definition 2 aligns with Capital Destroying Economics.  There is no Open Market in Capital Destroying Economics.  There is no Constant Money Supply in Capital Destroying Economics.  Non-producers and counter-producers are rewarded in Capital Destroying Economic Systems.  This is destructive economics.  They destroy capital, money, value, energy, wealth and power.  Capital Destroying Economics destroys individuals, families, organizations,  societies, nations, mankind and environments.  It leads to slave economic systems.  We find slave economics systems being used in Fascist, Right Wing and Communist societies.

Capital Destroying Capitalism is the primary system of Capitalism used today on planet earth.  This is where non-producers and counter-producers have taken money, value, energy, wealth, capital and power and concentrated it into the hands of a few powerful individuals.  Capital Destroying Capitalism gives Capitalism a bad name.  In the past this extreme concentration of money value, energy, wealth, capital and power into the hands of the rich and powerful few counter-producers has lead to Communist systems.  Communism also is a system of Capital Destroying Economics.    Capital Destroying or counter-producer Rewarded systems of economics, is where wealth and power are concentrated into the hands of a few.

Capital Destroying Economics is a greed economic system.  People who push for this type of economics are themselves on the road to destruction and are trying to destroy all around them.

When a society has achieved an absolute pure Producer Rewarded Open Market System of economics then and only then do we see the optimum rate of motion in money velocity.  We also see the optimum prosperity level in the society and Nation.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Revised: September 1, 2011

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Thursday, September 1st, 2011 Money Velocity and Prosperity No Comments

1.1 The Money Velocity Cycle

revised November 16, 2013

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  Money velocity is the rate at which money changes hands in a society, nation and all mankind.  Money velocity is the speed of flow of money.  It is about how rapidly money passes through the hands of individuals in organizations, societies, nations and mankind.  Prosperity results with increased money velocity.  Recessions and depressions result when money velocity decreases.  In societies and nations were there is much non-producer and counter-producer rewarding the money velocity in the money velocity cycle slows.  These societies’ and nations’ economic systems recede into depressions.

In order to develop a better understanding of money velocity and the money velocity cycle we will define velocity.  We will also look at Axioms related to money velocity and the money velocity cycle.

The definition of Velocity (Thorndike Barnhart, World Book Dictionary.)

Velocity:  N. 1. Quickness of motion; speed; swiftness; rapidity.  2.  rate of motion in a particular direction.  3.  the absolute or relative rate of operation of action.   Adj.  of or having to do with the rapidity of rate of motion or action: velocity ratio.

Derivation [< Latin Velocitas < Velox, Ocis  Swift]

 The following three Axioms will cover money relating to how money has velocity.  I have discussed earlier that money is a symbol.  It is a symbol that represents value which is created by you the producer of commodities, trades, goods and services.  It is also a symbol that represents energy.  This is the energy you create or generate and convert into commodities, trades, goods and services as you create them.  Therefore, money is a symbol, it represents the value of commodities, trades, goods and services you have created.  The value of the commodities, trades, goods and services is established when they are exchanged on the market.  The market must be an Open Market.  The Open Market must be open to all on equal terms.  Money, you receive in exchange for the created commodities, trades, goods and services you place on the Open Market, also represents the energy you create and convert into commodities, trades, goods and services.

I am going to be talking about this energy as it flows throughout the society, nation and mankind.  All people on the planet are connected together through this energy that money represents.  If a person is alive, no matter how much or how little, they have money energy flowing through them.  Only when they are dead does money energy cease to flow through them.

  • Axiom 151:  Money velocity is the rate at which money changes hands while being exchanged on the Open Market for commodities, trades, goods and services.
  • Axiom 151.1:  As money velocity increases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level increases. 
    • There is a corollary (corollary 1) to this Axiom: As money velocity decreases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level decreases.
  • Axiom 152:  Increased production efficiency increases money velocity.
  • When people get more efficient in production, they produce and place more commodities, trades, goods and services on the Open Market in a given period of time.  With more commodities, trades, goods and services entering the Open Market in a given period of time, more money changes hands over that period of time.  Here we see money velocity increase, which in turn increases prosperity.

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  In a non-producer and counter-producer rewarded society this cycle dies as does the society.  The American Indian societies, as they were known, died out because their ability to produce was shut down due to the intrusion of Immigrants across the Indians production territory.  Their money velocity decreased as their production levels dropped.  The Indians used money in the form of shells, beads etc.  They also used a barter system.  The use of a barter system also has velocity, it is called barter velocity.

We find the frequency of the money velocity cycle increase and decrease depending on the production level and producer pay or reward in the society.  When the money velocity cycle speeds up, the society becomes more affluent and prosperous.  When the money velocity cycle slows down, the society becomes less affluent and prosperous.

Money velocity gets its rates of motion from the level of production occurring in the society and the producers receiving all the money they have created in producing commodities, trades, goods and services.  When producers receive more money than they have created in their production they are receiving money that has been created by other producers.  This causes a decrease in money velocity and prosperity in their society.  When producers are paid less than their production is worth money velocity and prosperity in that society will decrease.  When producers are paid their productions worth, in money units, money velocity and prosperity are optimum.

During the first part of the money velocity cycle, commodities, trades, goods and services flow to the Open Market in exchange for money.  During the second part of the money velocity cycle, money flows to the Open Market for the purchase of commodities, trades, goods and services.  There is a continuous and varying velocity flow of money and commodities, trades, goods and services to and from the Open Market.

 The best way to get the optimum (best or most favorable) rate of motion in money velocity is to pay only those people who have produced and placed commodities, trades, goods or services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev. August 22, 2011

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Monday, August 22nd, 2011 Money Velocity and Prosperity No Comments
 

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