demand

4. Production, Exchange Value and Money

Revised November 11, 2913

This is the third set of Axioms in the Axioms of Economics.  This is the Production, Exchange Value and Money set.  This set includes 5 sections of Axioms.  The five sections include Axioms in the Economics Equation section; the Definition of a Producer section; the Exchange Value section; The Relationship of Production and Money section; and The Relationship of Production to Commodities, Trades, Goods and Services section

There are 22 Axioms in the Production, Exchange Value and Money set.

 The Axioms in this set give the equation on how production comes about.  The Producer is defined.  There are Axioms related to the relationship of production to commodities, trades, goods and services and how production and money are related.

Economics Equation:

50.         Economics reduces down to one basic, that basic is production.

Idea + Space + Energy + Matter + Directed Doing = Production

51.         Economics is the Science of energy.

52.         Energy is generated or created during the process of production.

Definition of a Producer:

53.         A Producer is an individual who:

A.     Creates a good or a service.

B.     The good or service must be needed and wanted.

C.     The good or service must be marketed on the Open Market, open to all on equal terms.

D.     The good or service must not harm the prosperity of the individual, family, organization, society, mankind and environment.

54.         Producers are the main beams, support structures and backbone of a family, society, organization, nation, mankind and environment.  The prosperity of individuals, families, organizations, societies, nations, mankind and the environment rests on the backs of the Producers.

 55.         Producers project into the future.  They estimate the future needs of individuals, families, organizations, societies, nations, mankind and the environment.  They estimate and evaluate future commodities, trades, goods and services.

56.         Producers mock up models of their future production.  They mock up these models in their personal mental space.  They then transfer these mockups into the physical universe during the process of production.  The result is a final produced product.

57.         Producers generate energy.  They convert this energy into money, value, wealth, capital and power through the action of production.

Exchange Value:

58.         Exchange value is created through the production of commodities, trades, goods and services.

59.         Exchange value is represented by a money symbol.  The money symbol is in the form of coin, gold, paper, shells, beads, etc.

60.         Exchange value is the part of money that gives money its power.

Production and Money, the Relationship of:

61.          The act of creating money is a group function.

62.         It takes Producers, working together in creating commodities, trades, goods and services and trading these goods and services on an Open Market, to create money.

63.         Production rate and production quality determines the value of each money unit and the value of the money supply as a whole.

Corollary 1:  Value, that money represents, is being continually created, day after     day, by the Producers through production rate and production quality.

Corollary 2:  When production increases the supply of quality commodities, trades, goods and services on the Open Market, the value of these goods and services decreases due to decreased demand. 

This increases the value of money.  With the value of commodities, trades, goods and services decreasing, each money unit can purchase more products.

Corollary 3:  A low supply of quality commodities, trades, goods and services on the Open Market will increase the value of these commodities, trades, goods and services due to increased demand. 

This decreases the value of money.  It takes more money units to purchase these commodities, trades, goods and services.

Corollary 4:  The value of commodities, trades, goods and services relates inversely to the value of money. 

As the value of commodities, trades, goods and services increases it takes more money units needed to purchase these commodities, trades, goods and services.  Each money unit has less value.

As the value of commodities, trades, goods and services decreases it takes less money units to purchase these goods and services.  Each money unit now has more value.

Corollary 5:  As production rates increase, money increases in value. 

When the Market is flooded with commodities, trades, goods and services their value drops because of lower demand.  Now a money unit purchases more commodities, trades, goods and services so it has more value and also more power.

Corollary 6:  As production rates decrease, money decreases in value.

When there is a shortage of goods and services on the Market their value increases because of higher demand.  Here money units purchase fewer goods and services per money unit.  Money now has less value and less power.

Corollary 7:  The value of money is directly related to production rate.

Corollary 8:  The value of money fluctuates with the level of production backing it.

64.         A Nation with a high money value is a Nation with a high production rate.  Conversely; a Nation with a low money value is a Nation with a low production rate.

65.         A Nation with a high production rate is a Nation with a high money value and great wealth, energy, capital and power.

The Relationship of Production to Commodities, Trades, Goods and Services:

66.          Production is always being exchanged for production with or without money as a medium of exchange.

67.         Production rate determines the value of commodities, trades, goods and services.

68.         The value of commodities, trades, goods and services is inversely related to the level of production where demand is present. 

As the level of production decreases, the value of commodities, trades, goods and services tends to increase in a demand Market.  Conversely, as the level of production increases, the value of commodities, trades, goods and services tend to decrease in a demand Market.

69.         Production level is always directly related to the value and demand for this production.

70.         Demand generates the value for each commodity, trade, good and service.

71.         As demand increases for commodities, trades, goods and services the value of the demanded commodities, trades, goods and services increases. 

This, increased product value, attracts the attention of Producers.  Effort forces and ideas are generated by Producers.  The Producers use ideas to direct these effort forces, increasing production rates for these demanded commodities, trades, goods and services.

Producer Rewarded Open Market Open Economics
The Science of Economics
By RP Obrigewitsch
Revised November 11, 2013

 

 

 

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Wednesday, October 24th, 2012 Axioms of Economics No Comments

3. Products and the Open Market

Revised November 11, 2013

This is the second set of Axioms in the Axioms of Economics.  This is the Products and the Open Market set.  There are 24 Axioms in the Products and the Open Market set.   

This set gives the definition of a Product.  Only you the Producer create Markets.  The Producers create energy and flow the energy into the Market. 

There is more information on Products and the Open Marker on the web site http:youcreatemoney.com.  There are10 articles in the category titled Open Market Economics.  These articles go into much more detail on Products and the Open Market.

26.          A product is a good or a service that 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 environments.

27.         One does not decide to back money with production, production backs money.

28.         A created commodity, trade, good or service is not classified as a product unless that good or service is marketed and sold on the Open Market.

29.         A commodity, trade, good or service is not a product if it causes destruction to the individuals, families, societies, mankind and the environment.

30.         A good or a service that causes destruction to the individual, family, organization, society, mankind and environment is a criminal product.

31.         A purposely directed pro-prosperity action or activity gives the Producing individual a product.

32.         Production is converted into money units and the money units are a measure of the value of the production.

33.         All money value is backed by production.

34.         Production creates the value inherent in money.

35.         Production has exchange value.

36.         Criminally produced commodities, trades, goods and services do not and cannot give money value.

37.         Criminally produced commodities, trades, goods and services decrease and destroy money value and destroy the prosperity of the individual, family, society, mankind and the environment.

38.         Money cannot and must not ever be treated as a product.

39.         Producers are the creators and constructors of Markets.

40.         Non-producers and counter-producers destroy and destruct Markets.

41.         An Open Market occurs “only among Producers” and in numbers greater than one Producer.  An Open Market occurs when Producers exchange commodities, trades, goods and services with each other.

42.         An Open Market is established any time and anywhere commodities, trades, goods and services are exchanged between two or more Producers.

43.         The greatest difference between the Open Market and the Free Market is; the Open Market does not allow for non-producer or counter-producer participation.  The Free Market allows for non-producer and counter-producer participation.

44.         Demand generates Market force.

45.         Producers generate energy, value, wealth, capital and power through production and flow them into the Open Market.

46.         Producers give Markets their energy.

47.         Producers drive Markets and make them operate.

48.         Non-producers and counter-producers siphon (suck) energy, value, wealth, capital and power out of Markets.  They deflate Markets.

49.         Any time you find an abnormally shrinking and collapsing Market, you can be sure you will find non-producers and counter-producers taking money, energy, value, wealth, capital and power out of the Market without a correct exchange for it in produced goods and services.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised November 11, 2013

 

 

 

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Saturday, October 6th, 2012 Axioms of Economics No Comments

3. Medium of Exchange

Revised November 13, 2013

This article is the third article in the series of articles covering Axiom four, “Maintain a Constant Money Supply.”

A medium of exchange began to be needed and wanted in order to make the transfer of production value more efficient and practical.

With the absence of a defined money unit, we found products being traded in ratios to each other by the Producers to satisfy their needs and wants or demands.  This was the system of exchange in economics before the money unit was conceived and developed.  The money unit became the medium or intermediate step where value could be transferred during the sale of products on the Open Market.  The money unit with its newly transferred value could be used to purchase other products.  The symbol of the money unit, used for the value transfer, has had many forms down through the ages.

Production Value is the exchange value commodities, trades, goods and services have in relation to each other when exchanged on the Open Market, a Market that is open to all on equal terms. 

 Value is importance, worth or usefulness of a commodity, trade, good or service.  Competition among commodities, trades,  goods and services on the Open Market establishes the importance, worth or usefulness of each commodity, trade, good and service.  This competition is propelled by the forces of demand.  The needs and wants, placed in terms of demand, thrust forth by the Producers, establish the importance, worth or usefulness of commodities, trades, goods and services.  Competition on the Open Market along with the demands of the Producers gives commodities, trades,  goods and services their value.

Demand is a directed force put forth by Producers driving the competition on the Open Market.  The competition doesn’t just happen by itself; it is driven by a directed generated energy force.  This directed energy force is created by Producers.  It is an energy force directed in the direction of prosperity.  This force gives the Open Market its life.  The Open Market is like a living entity driven by the directed demand energy created by the Producers.

You could say the Open Market is like a living entity.  The Open Market gets its energy from the Producers.  This energy comes from commodities, trades, goods and services marketed on the Open Market and from Producer directed demand forces.  The Open Market is living, it is dynamic.  Producers create the Open Market by placing their commodities, trades, goods and services on the Open Market.  They then generate demand energy which they use to direct the competition among commodities, trades, goods and services.  Producers put life into the Open Market.

When non-producer and counter-producers enter into a Market they pull energy out of the Market.  They pull the market into recessions and depressions.  They pull the life out of the Market.  They suck the energy out of the organizations, societies, nations, mankind and the environment.

When the Market is broken down to its basic terms; we are really exchanging energy for energy.  When a non-producer or counter-producer enters into a Market they suck the energy from the Market.  They take commodities, trades, goods and services out of the Market without exchanging self-produced commodities, trades, goods and services for them.  They in effect take energy out of the Market without replacing it with energy of their own.  This act drains the Producer, families, organizations, societies, nations, mankind and environments of energy.  It brings about a state of economic decline and puts Producers, families, organizations, societies, nations, mankind and environments on a path receding away from prosperity.

There is only one true Market.  That true Market is the Open Market, open to all on equal terms.  Whenever non-producers and counter-producers enter into an Open Market even very slightly that Market is no longer open to all on equal terms.  It is a Market with a negative energy flow.  That energy flow is out of the Market.  This gives a receding economic condition.  When we have a true Open Market energy is flowing into the Market.   This gives a prosperous economic condition.  It is very important to maintain a Market where energy is flowing into the Market.  This leads to prosperity.

The Standardized money unit is the constant unit of measure that represents production value.  It also represents energy, wealth, capital and power.

A Constant Money Supply standardizes the money unit as a unit of measure for production value and Producer generated energy.  It is very important to maintain a Constant Money Supply. A Constant Money Supply gives a positive energy flow in the Open Market and maintains the Market as an Open Market.

An expanding money supply is a money supply that is not held constant. An expanding money supply causes a negative energy flow in the Open Market.  Money received by expanding the money supply without placing production on the Market causes a negative energy flow away from the Market. In this case the energy flow is from prosperity to recessions.  The economic conditions for individuals, organization, families, societies, mankind and environment are on a declining path.  Expanding money supplies destroy Open Markets and prosperity.

When the value of the dollar was floated in 1971 it was taken off the Gold Standard.  The money unit was floated.  Then the money supply could be expanded by a Central Bank at the whim of the operators of the Bank.  The dollar was now not standard.   It was no longer a standardized unit of Measure.  The result for the United States is an economic system that is no longer standardized.  Today this economic system is operating with a money unit whose value is altered anytime the central bank expands the money supply.  The Gold Standard was removed, as a way to maintain a Constant Money Supply.  The removal of the Gold Standard allowed the money supply to be expanded by the Central Bank.

Before 1971 the money supply was held constant by defining each ounce of gold to be equal to 35 dollars.  The amount of dollars allowed to be in circulation was equal to 35 times the number of ounces of gold held in a vault.

Expanding the money supply is like allowing the Meter or Pound to be arbitrarily changed in size and weight.  This would be allowing these standardized units of measures to change over time.  This would cause chaos throughout the societies.  Floating a money unit, instead of holding it as a constant unit of measure, is an idea made by counter-producers and non-producers.  From the moment they float the money unit, and from then on, they can continue to steal their money value, energy, wealth, capital and power from the Producers by expanding the money supply.  There is a belief that money supplies must be expanded to maintain economic well being.  When Producers and only Producers of the money are rewarded, money supplies can be held constant and the economic systems move toward more prosperity.  Expanding money supplies rewards non-production and counter-production.

A Constant Money Supply maintains a very stable Medium of Exchange

 Money, as the Medium of Exchange, is the intermediate step used during the exchange of commodities, trades, goods and services on the Market.

When money came into existence, money added a step in the exchanging of commodities, trades, goods and services on the Open Market.  Instead of exchanging commodities, trades, goods and services directly for other commodities, trades, goods and services; the commodities, trades, goods and services were first exchanged for money.  The value of the commodities, trades, goods and services was transferred to the money unit.  The money unit was then used to exchange for other commodities, trades, goods and services.  Value contained in the money unit was then transferred to another Producer for his/her commodities, trades, goods and services. This is when the money unit became the standardized measure for the value of commodities, trades, goods and services.  This is why it is very important to maintain a Constant Money Supply.  When the money supply is not held constant but allowed to expand, the money unit as the Medium of Exchange loses its standardization.  When the money unit loses its standardization economic systems get destroyed.

 It is much easier to transfer production value to a money symbol, a Medium of Exchange, than it is to transport commodities, trades, goods and services around to make exchanges directly among them.   Once the product value is transferred to the money symbol, the Medium of Exchange, it is much easier to make purchases of other Producer’s commodities, trades,  goods and services. The concept of a money unit came into existence to act as an intermediate step during the exchange of commodities, trades, goods and services.

Commodities, trades, Goods and services must be exchanged on the Open Market in order to determine the correct production value for each commodity, trade, good and service.  When commodities, trades, goods and services are exchanged on a Market that is not an Open Market, not equal to all on equal terms, production value will not be correct.  For example; in Markets where monopolistic practices are allowed, the production value created through a monopolistic individual or organization will usually be incorrectly higher.  Monopolistic practices are a form of rewarding non-production and counter-production.  Rewarding non-production and counter-production will lower money value.

Only where all Producers are in the Market on equal terms and only Producers are allowed to participate in the Market will the production value of all commodities, trades, goods and services exchanged on the Open Market be correct.

Rewarding non-production and counter-production places more money in circulation in relation to commodities, trades, goods and services on the Market.  This leads to fewer commodities, trades, goods and services being on the Market in relation to money in circulation.  The money value goes down as the non-producers and counter-producers bid up the prices of the existing commodities, trades, goods and services on the Market.  When money is given to non-producers and counter-producers they are taking money without placing commodities, trades, goods and services on the market.  This causes more money to be in circulation.  This money is found in the pockets of non-producers and counter-producers.  They use this money to bid up the prices of commodities, trades, goods and services on the market.  This will cause money to lose valueIt requires more money to purchase the same products.  Inflation is the result of having fewer commodities, trades, goods and services on the Open Market in relation to money units in circulation.

In conclusion; during Marketing, value is transferred from commodities, trades,  goods and services to the medium of exchange measured in money units.  Money units become packets of value and can be much more easily transported over distances and used to purchase other Producers’ production. The money unit, used as a unit of measure along with a Constant Money Supply, increases the efficiency of and standardizes the economic system.  A medium of exchange composed of money units was established.  This medium of exchange becomes standardized when the money supply is held constant.

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

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Friday, June 29th, 2012 Constant Money Supply No Comments

2. Production and Prosperity

Revised November 13, 2013

Production is the basic thrust of all mankind toward prosperity.  Production and prosperity go hand in hand.  Production by the Producer creates or generates prosperity.  Production enhances the prosperity of the Producer.  Production increases the Producers ability to exist.  The prosperity thrust of the individual demands production take place to forward the individual in his quest to exist.  This production has exchange value.  This exchange value is determined or generated by the needs and wants (demand) of each producer in the societies.  This exchange value is found to be inherent in what the individuals of each society have agreed to be defined as “their” money unit.

We will examine how money is created through production.  If one person produces milk, another person produces eggs, another produces coats, another produces computers and another producers cars.  We then have these people producing in their specialties.  Each of these Producers needs and wants (demands) the production created by the other Producers.  Each Producer needs and wants (demands) the production of other Producers for his or her prosperity, consumption or esthetic admiration and/or pleasure.

Producers have developed a system of exchange among themselves to accommodate their demands for each others production.  At first a barter system was set up where producers traded commodities, trades, goods and services with each other based on the value they assigned to each commodity, trade, good and service.  The value was generated by the amount of commodities, trades, goods and services available in respect to the demands for the commodities, trades, goods and services.  If there was an abundant supply of a specific good and the need was low for it, the demand was low.  A low demand would give a lower value for that good.  If there was a low supply of a specific good or service and the need for it was high, the demand would be high.  A high demand would give a high value for that good or service.

From this working together of need, demand and supply, the Producers worked out an exchange ratio among all commodities, trades, goods and services on the Market.  This ratio is the exchange relationship among all commodities, trades, goods and services on the Market.   The exchange relationship shows the number of times the value of one commodity, trade, good or service is contained within the other commodities, tradies, goods and services on the Market.  This is called the exchange rate.

We may find one hundred dozen eggs being traded for one coat, two dozen eggs being traded for on gallon of milk, fifty gallons of milk being traded for one coat, five hundred dozen eggs being traded for one computer, two hundred gallons of milk being traded for one computer or ten computers being traded for one car, etc.  These are the trading ratios which are being used by the Producers to achieve equity in product value when trading their products directly.  These ratios have established exchange value in terms of one product to another.

From this information or data it can be deduced that products have exchange value, generated by demand from Producers, which can be defined in terms of all other products.  In fact, all products created by Producers, throughout mankind, have exchange value which can be defined in terms of each other.

For example; one dozen eggs is equal in value to one/one hundred (1/100) of a coat.  One coat is defined to equal one hundred (100) dozen eggs in value.  One car is defined to equal one hundred (100) coats or ten thousand (10,000) dozen eggs or five thousand (5,000) gallons of milk or ten (10) computers.  We could define the exchange value of all production based on each product and determine how to exchange commodities, trades, goods and services based on that specific product.  The selected product could be dozens of eggs.  We could determine the exchange rate of all products based on the value of dozens of eggs.  As we can see this would be very unworkable.  The egg production would go wild. Everyone would be growing eggs as a short cut to having money.  This would lead to a constantly expanding medium of exchange (eggs) and a collapsed economic system.

Do you see how the value of commodities, trades, goods and services are determined on the Open Market?  One could go on and complete tables and tables defining the exchange value of each product produced by all members of mankind in terms of all other products produced by all of Mankind.  This becomes a very, very bulky and unworkable system.  We need some sort of simplification and standardization here.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised November 13, 2013

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Thursday, June 14th, 2012 Constant Money Supply No Comments

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

9. Establishing a Market

Revised November 18, 2013

In this article we will be looking at how to go about establishing a Market.  When Producers go about establishing a Market they trade commodities, trades, goods and services with each other.  When the activity of trading products with each other starts to take place, two forces come into existence.  These forces are created by the Producers. The Producers create a Supply Force and a Demand Force.  The supply force is established when Producers place supply on the Market. The demand force is established when Producers make demands for their fellow Producers’ supplies.  The interaction of these two forces establishes the value of all competing commodities, trades, goods and services on the Market.  This is the process of establishing a Market.

These forces are called Market Forces.  Market Forces are a naturally occurring activityA Market occurs “only among producers” and in numbers greater than one person.  It occurs when Producers exchange commodities, trades, goods and services with each other.  Adam Smith called Market Forces the Invisible Hand.

For the most part, we use money as a medium of exchange.  We use money to facilitate this exchange of commodities, trades, goods and services.

Anytime you have two or more Producers exchanging their produced commodities, trades, goods and services with each other you will find a Market.  A Market is established any time, anywhere commodities, trades, goods and services are exchanged between two or more Producers.

Demand put forth by individuals for commodities, trades, goods and services, generates the Demand Force in the Market.   In order for a Market to prosper all individuals involved in the market must balance their Demand Force with a Supply Force.  The Market declines in value when supply and demand forces aren’t balanced.

When Producers make the demand on the Market for money, they bring along supply.  The supply contains value.  They place this supply on the Market and receive money.  The money is equal in value to the value of the supply they themselves created.  The Producer is maintaining balanced Supply and Demand Forces.

When Producers make the demand on the Market for commodities, trades, goods and services they bring money.  The money is equal in value to the value of the products they are demanding.  The Producer is maintaining balanced Supply and Demand forces.

Producer activity establishes and expands Markets.  Markets gains value, energy, wealth, capital and power.  Value, energy, wealth, capital and power are added to Markets.  Markets grow and expand during this activity.

When non-producers and counter-producers make demands on Markets for money, they don’t bring along any or not enough supply.  In some cases they bring along destructive supply.  When they receive money without exchanging supplies for it, their Supply and Demand Forces are not balance. 

When non-producers and counter-producers make demands on Markets for supply, they don’t bring along any or not enough money.  When they receive supplies without exchanging money for them their Supply and Demand Forces are not balanced.

Non-producer and counter-producer activity harms Market.  Markets lose value, energy, wealth, capital and power.  Value, energy, wealth, capital and power are stolen by the non-producers and counter-producers.  Markets decline during this activity.  

Any time you find a declining and collapsing Market, you will find non-producers and counter-producers taking money out of the Market.   They are taking money without a correct exchange for it in produced commodities, trades, goods and services. 

Markets in their normal operation will have moderate to small value fluctuations up and down.  In normal operations, Market value will have a gradual upward expansion trend over time.  Non-producers and counter-producers cause extreme Market value fluctuations.  The value fluctuations are in an extreme up and down like a roller coaster.  This extreme roller coaster activity is caused by non-productive and counter-productive activities on Markets.  When Producers participate in Markets, Markets graph out in an upward curve.  When non-producers and counter-producers participate in Markets, Markets graph out in a downward curve.

Markets occur only among producers of commodities, trades, goods and services!  Markets do not occur when non-producers and counter-producers, take money, value, energy, wealth, capital and power with no or not enough exchange in production for it.  Money taken though out-exchange methods destroys Markets.   Taking money, without an exchange for it pulls value, energy and power out of  Markets.  Money and products taken without an exchange for them destroys the Market Forces of Supply and Demand.  This is theft or fraud.  Theft and fraud destroy Markets.

Production exchange constructs and builds Markets.  Production exchange is the action of establishing a Market.  Production exchange establishes Market forces.  These Market Forces are Supply and Demand.

Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch
December 29, 2011

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Wednesday, December 28th, 2011 Open Market Economics No Comments

8. Free Market Construct

Revised November 18, 20113

The Free Market Construct will give you a contrast with the Open Market Construct.  The Open Market is governed by exact prosperity creating technology.  The Free Market has very little if any prosperity creating technology.  The little it has in prosperity creating technology is being violated to the extreme.  The Free Market has been taken over largely by rewarded non-producers and counter-producers. They sit on the demand side of the definition of the Free Market and take money, value, energy, wealth, capital and power without placing supply on the market. The rewarded non-producers and counter-producers continually drain organizations,  societies, nations and mankind of the money, value, energy, wealth, capital and power. This money, value, energy, wealth, capital and power is created by the Producers.

It is very important to remember, the Free Market is a Market.  It works like any Market.  It is always working 24/7 in establishing the value for all commodities, trades, goods and services placed on it.  Even when non-producers and counter-producers take money without placing supply on the Market, the Market sets value.  However, the value of these commodities, trades, goods and services is higher than it should be.  This is because non-producers and counter-producers make demands without balancing them with supply.   The Market senses a low supply in relation to demand and the prices go up.  This is commonly called inflation.  When supply is low, prices go up.  When supply is high or abundant, prices go down.

 The definition of the Free Market is, a Market in which prices are controlled by supply and demand, without government regulations and restrictions. 

  • The Free Market allows for advantages by non-producers and counter-producers.  It allows monopolies and all other ways a non-producer and counter-producer can dream up.  They use these advantages to take money, value, energy, wealth, capital and power off the market without exchange for it with supply.
  • Technically speaking the Free Market should not be open to non-producers and counter-producers.  The definition of Free Market “strictly” implies that commodities, trades, goods and services must be supplied in order to demand or take money from the Market.  Supply, “in supply and demand,” implies commodities, trades, goods and services.  Commodities, trades, goods and services must be placed on the Market in exchange for any money received.  The money can be used to place a demand on the Market for other products.
  • Non-producers and counter-producers use one half of the Free Market definition.  They use the demand side of the Free Market definition.  They leave out the supply side.  Or, they fix and control the supply side to their advantage.
  • The non-producers and counter-producers enter into the Free Market and take money, value, energy, wealth, capital and power from it without a product exchanged for it.  This is catastrophic for individuals, families, organizations, societies, nations, mankind and environments!   Today in 2011 we are experiencing the result of this activity, on the Free Market, by non-producers and counter-producers.  We are in a deep world wide recession as a result.
  • The Free Market has no restrictions except keeping all government regulations out of it.
  • The Free Market does not restrict monopolies or any other way non-producers and counter-producers control the supply and demand.  They use methods of controlling supply and demand to receive more money than what their products are worth.
  • The Free Market doesn’t prevent people from taking a non-productive and counter-productive advantage in the Market.
  • The greatest difference between the Open Market and the Free Market is; “the Open Market does not allow for non-producer and counter-producer participation.  The Free Market allows for non-producer and counter-producer participation.”  Non-producers and counter-producers have wrecked many a society and nation.  They have been allowed to participate in the Market without exchange for the money, value, energy, wealth, capital and power they received.
  • Non-producers and counter-producers are found in all levels of a society.  They are located from the poorest among us all the way to the wealthiest among us.  There are no exceptions; non-producers and counter-producers, whether rich or poor, are non-producers and counter-producers.  They are a heavy burden and liability for organizations, societies, nations and mankind!

Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch
December 19, 2011

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Monday, December 19th, 2011 Open Market Economics No Comments

4. Market Action

Revised November 17, 2013

The market action of establishing the value for commodities, trade, goods and services is happening continuously twenty four hours a day. This market action takes place on all Markets whether Open Markets or not.  It is an action inherent to Markets.  As long as there are producers, producing commodities, trades, goods and services and exchanging them with each other, this Market force is at work.  It is a force working to establish the prices even with all the destructive out exchange taking place on the Market by the non-producers and counter-producers.  This force is always at work in the Market.  This is a natural force found in nature.

Even with all the muddle and confusion created by the non-producers and counter-producers this market action is taking place.  Of course the value of commodities, trades, goods and services gets placed incorrectly.  The value is usually higher than it would be when non-producers and counter-producers are allowed in the Market.

If non-producers and counter-producers become Producers they would create products.  They would place their created commodities, trades, goods and services on the Market.  This increased volume of commodities, trade, goods and services would cause a drop in prices across the Market.  There would be an increase in products on the Market in relation to money in circulation.  As production volume increases, demand tends to drop off and prices drop as a result.  Rewarding non-production and counter-production causes prices to rise because the volume of commodities, trades, goods and services is lower.  The non-producers and counter-producers are exchanging little or no commodities, trades, goods and services for the money they receive.   This causes demand to rise and prices follow along.

The Market has a directed effort to set the value for commodities, trades, goods and services that are competing with each other. The Market forces take place “anywhere at anytime” producers create a Market by exchanging commodities, trades, goods and services with each other or for money.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
December 4, 2011

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Saturday, October 8th, 2011 Open Market Economics No Comments
 

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