Capital Destroying Economics

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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