money supply

5.0 Production Rewarding

Revised November 11, 2013

This is the fourth set of axioms in the Axioms of Economics.  This set will include two sections of Axioms.  The first section includes the Axioms covering Production Rewarding.  The second section includes the Axioms covering Money Supply and Money. 

Rewarding Production has been found to lead to prosperity.  In Societies and Nations where production is rewarded, those Nations and Societies prosper very well.  In Societies and Nations where non-producers and counter-producers are rewarded we find recessions, depressions, wars and hard economic times.  The prosperity of the Societies and Nations rewarding non-production and counter-production is low and declining.  The only solution that will solve a Society or Nation declining economically is to fully reward the Producers of the commodities, trades, goods and services.  They must be rewarded in full for the money, value, energy, wealth, capital and power they have created.

Production Rewarding Axioms:

72.         As production rewarding increases, money value increases. 

Money value increases because increasing production rewarding gives Producers incentive to increase production rates.  This increase in production on the Open Market causes demand for products to decrease, decreasing the value of the products.  This allows for each money unit the power to purchase more production per money unit.

73.         As production rewarding decreases, money value decreases. 

Money value decreases because decreasing production rewarding lowers Producer   incentives.  Lower Producer incentive decreases production rates.  This decrease in production on the Open Market causes demand for products to increase.   Increased demand increases the value of the products.  This increase in product value causes an increase in money units necessary to purchase the product.  The money now has less value because it takes more money units to purchase the same product volume.

74.         As the rewarding of non- production and/or counter-production decreases, money value increases.

75.         As the rewarding of non-production and/or counter-production increases, money value decreases.

76.         Reward production and only production, never reward non-production or counter-production.

77.         Reward the Producers and they will reward you with abundant production.

78.         Reward non-production and non-production will increase abundantly while production decreases.

79.         Reward counter-production and counter-production will increase abundantly while production decreases.

80.         Rewarding Producers enhances the prosperity of the individual, family, society, nation, mankind and the environment.

81.         Rewarding non-production or counter-production directs the individual, family, society, mankind, nation and environment toward economic recessions and depressions.

82.         Any individual making money in any other way than through the production of commodities, trades, goods and services is a rewarded non-producer or a rewarded counter-producer.

83.         A society that is rewarding non-production and/or counter-production is declining economically.

84.         Any society that is declining economically is rewarding non-producers and/or counter-producers on a large scale.

85.         By rewarding non-producers and/or counter-producers you are helping yourself decline economically along with the non-producers and/or counter-producers.

86.         Increased production rewarding increases sanity in a society, thus decreasing crime and war.

87.         Increased non-production and/or counter-production rewarding increases insanity in a society, thus increasing crime and war.

88.         War when used as the first solution or any solution other than the last solution to a problem is a system of rewarding counter-production.  This activity causes the individual, family, society; nations, mankind and environment to decline economically.

Money Supply and Money Axioms:

The money supply provides symbols used for the medium of exchange.  When a constant money supply is maintained we have a standardized economic system.  The money supply gives us money unit objects.  These money unit objects are where value, energy, and power are transferred and stored.  The value, energy and power are transferred into and stored in money units during the process of marketing goods and services on the Open Market.

This section includes the formula for applying a Constant Money Supply to Banking.

It is found; when constant money supplies are maintained, very stable economic systems are created by Producers. 

89.         When a constant money supply is maintained, we maintain a constant unit of measure in money units for monitoring the value of production.

90.         Money, in money units, is a means of measuring relative value of products on the Open Market.

91.         A Constant Money Supply applied to banking;

A.     Hold the number of monetary units constant in the money supply.

B.     Decide what ratio, money on hand to money loaned out, is most stable when loaning out money.  Then hold this ratio constant.  This will set up banking so it will never fail.

C.     Banks don’t loan out money beyond the established stable ratio of “money on hand to money loaned out.”

D.     Creating money, “out of thin air,” is the act of transferring value from the money currently in circulation and placing the value into the newly created money without an exchange for it on the Open Market.  This is an act of counter-production.  This is an act of taking other peoples’ money (value, energy, wealth, capital and power) and using it with no production in exchange for it.

E.      Creating money, “out of thin air,” is very destructive to individuals, families, societies, nations, mankind and environments.

This formula maintains a constant money supply.

92.         The value of money is inversely related to the size of the money supply.

93.         Creating money, “out of thin air,” to increase the money supply decreases the value of all monetary units in proportion to the number of money units created “out of thin air.” 

94.         Creating money “out of thin air” to expand the money supply is a form of counterfeiting and rewards non-production and/or counter-production.

95.         An open or floating monetary system, where the money supply is not held constant, has few winners and many losers.

96.         Expanding the money supply is not an ethical act.

97.         When the money supply is expanded, the individuals first to receive the newly created money reap huge profits. 

These individuals reap huge profits by transferring value, energy, wealth and power from the money currently in circulation.  This value, energy, wealth and power are transferred into the newly created money.  They are taking money value, energy, wealth and power without placing commodities, trades, goods and services on the Open Market in exchange for it.   Other individuals in the society lose money value, energy, wealth and power which are transferred to the individuals who first received the newly created money.

98.         Expanding the money supply leads to inflation.

Money loses value when the money supply is expanded.  It requires more money units to purchase the same commodities, trades, goods and services.

99.         Shrinking or contracting the money supply increases the value of money units in the monetary system.

100.         Production doesn’t depend on the monetary system for survival.  The monetary system depends on production for survival.

101.         Production is senior to money.  Production gives money its value, energy and power.

102.         Production is senior to capital.  Production gives capital its value, energy and power.

103.         Production is senior to wealth. Production gives wealth its value, energy and power.

104.         Production creates the power an individual, family, organization, society, nation, mankind and environments possess.

105.         Money lends efficiency to production. 

It is efficient to transfer the value of one’s production into money units.  One can transport the money units to another location and use them there to purchase needed and wanted products.  Before the concept of money was developed and put into practice, production was carried from location to location with the purpose of trading it for needed and wanted products.  This is the barter system. It is very inefficient. 

106.         Money is always junior to production and production is always senior to money.

107.         In order to get money out of the money supply, an individual must always exchange production for it on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised November 11, 2012

 

 

 

 

 

 

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Sunday, November 4th, 2012 Axioms of Economics No Comments

7. Symbol for Value and Energy

Revised November 14, 2013

Money is a symbol used to represent exchange value.  The exchange value is created by Producers.  Producers create exchange value during the process of producing commodities, trades, goods and services.  Money is also the symbol used to represent energy generated by Producers.  Producers generate the energy used in the creation of commodities, trades, goods and services.   Money is the symbol for value and energy.

There has been much attention placed on money units down through the ages.  The money unit is basically a unit of energy.  A Producer first generates the energy, and then he transfers this energy into a commodity, trade, good or service as he produces it.  The commodity, trade, good or service is exchanged on the Open Market for money units.  In the process of the exchange, the energy that was created by the Producer is transferred into the money unit.

Money is also a unit measure used to define the value of commodities, trades, goods and services.  When a product is exchanged on the Market, the competition among commodities, trades, goods and services on the Market determines the value of each product.  The competition among commodities, trades, goods and services on the Market is caused by demand forces created by producers as they compete with one another in purchasing commodities, trades, goods and services from the Market.

There have been many ways money units have been acquired, accumulated, taken or gotten.  However, there is only one ethical and honest way to receive money units.  That way is through the production of commodities, trades, goods and services which are marketed on the Open Market.  Receiving money units through the production of commodities, trades, goods and services and marketing them on the Open Market is how true prosperity is achieved.

There is no other way to create, produce or acquire money and be in exchange for it.  All other ways or methods of acquiring or accumulating money are out-exchange or destructive to the prosperity of the individual, families, organizations, societies, nations, mankind and environments.

There has been a common belief over the ages that money units could and should be acquired without the efforts of production, work or without any labor.  There have been many methods developed over the years to overtly or covertly steal money.  This is especially true among non-producers and counter-producers.  These individuals  can’t produce or have a very hard time producing.   They have resorted to devising methods of stealing money, value, energy, wealth, capital and power from the producers around them.  Expanding the money supply is one of many methods they have devised and used when stealing prosperity from the Producers.

There is only one way money comes into existence and that is through the production of commodities, trades, goods and services.  Producers use directed energy forces when producing commodities, trades, goods and services.  These directed energy forces are employed during the processes of work and labor.  The workers and laborers (Producers) direct the energy forces, needed and used, during the process of producing commodities, trades, goods and services.  There must be work and labor involved in the creation of production.  Anyone taking any money without involving labor work in creating production is out exchange!

The Capitalist (capital destroying Capitalist) is chief among those who believes money units can be acquired without their efforts of production, work or without any labor of their own.  The Capitalist (capital destroying Capitalist) believes others should provide the labor and he should take the money created by the labor and work of others.  The capital destroying Capitalist enslaves Producers.

Taking money created by the labor and work of others does not give him freedom.  He is not as free as he thinks he is.  There is only one way to be free and that is to be able to produce one’s own prosperity with the hands and mind of one’s own creative potential.  True freedom is to be able to create energy and transfer it into commodities, trades, goods and services which one can use to exchange for other commodities, trades, goods and services with money on the Open Market.

True freedom is granted to those individuals who operate within the Axioms of Producer Rewarded Open Market Economics.  An individual operating outside of the Axioms of Producer Rewarded Open Market Economics is not free.  He is not creating prosperity.   He is taking prosperity away from the producers.  He has no existence but to steal money-energy from the Producers.  Stealing money-energy is a destructive activity which strikes against the Producers as well as against the counter-producer himself.

The Producers can carry non-producers and counter-producers on their backs until the system becomes overburdened and then it collapses bringing the Producers down with the non-producers and counter-producers.  The non-producer and counter-producer is not free until he joins the ranks of the Producers, becoming a Producer.  As long as the Producers allow the non-producer and counter-producer to be rewarded, the Producer is not free.  True freedom comes about when everyone is required to create production in exchange for money.   Producers of prosperity thrive while operating inside and using the Axioms of Producer Rewarded Open Market Economics.

The Capitalist, capital destroying capitalist, has the belief that others should provide the work and labor and he should take the money without production exchanged for it.  The Capitalist, capital destroying capitalist,  has lost the ability to produce energy or believes he has lost the ability to produce energy.  He grabs and hoards money.  This grabbing and hoarding of money creates a scarcity of money in circulation.

As a result of the Capitalist’s action the money velocity slows, giving the perception that money is hard to come by and there is a scarcity of money.  The prices of commodities, trades, goods and services go up in value because of less money in circulation in respect to products on the Market.  The fact is there is an abundance of money, wealth and material possessions available when Producers and only Producers are rewarded, when the Market is maintained open to all on equal terms and when the Money Supply is held constant.

The Capitalist, capital destroying capitalist, redistributes and concentrates money and material possessions into the hands of a few rich and powerful counter-producer capitalists.  The correct distribution of wealth occurs when Producers and only Producers are rewarded, when the Open Market is maintained open to all on equal terms and when the money supply is held constant.  The wealth is distributed to those individuals who create it or produce it.  Any other wealth redistribution systems are rewarding non-producers and counter-producers and are destructive systems.   Distructive wealth redistribution systems include Capitalism (capital destroying Capitalism) Fascism and Communism.  Fascism and Communism are capital destroying socialist economic systems.  They reward non-producers and counter-producers.

The Fascist also takes money without the necessary exchange for it.  He is like the Capitalist. He turns up the volume in his efforts to steal and hoard money and material wealth.  He uses great force in doing so.  He also creates a scarcity of money and material possessions by redistributing and concentrating it into the hands of a few rich and powerful counter-producers.  The Fascist also enslaves producing workers and laborers.  Both the Capitalist and the Fascist are working to stop the flow of money, value, energy, wealth, capital, power and material possessions throughout the societies.

The Communist also takes money without the necessary exchange for it.  He does it in a covert manner. The Communist sells himself as a Producer or pretends to follow the prosperous laws of economics while grabbing and hoarding money and material wealth.  He says he is the patron to labor and workers.  When he seizes power he enslaves the producing workers and laborers.  He also creates major scarcities of money and material wealth.  The Communist takes possession of almost all wealth and material wealth under the umbrella of the State.  He covertly tricks the Producers into believing it is the government who owns all.  In reality it is the counter-producer communist individuals who are the government and who control the government.  It is the counter-producer communist individuals who have and control all money, value, energy, wealth, capital, power and material possessions in the society and nation.  They carry out this deception “under the guise of the state.”  The counter-producer communist individuals governing the country have exclusive access to the money, value, energy, wealth, capital, power.

The three; Capital Destroying Capitalism, the Fascist and the Communist all grab and hoard money, value, energy, wealth, capital, power and material possessions.  They work to stop the flow of money, value, energy, wealth, capital and power.  They redistribute the money, value, energy, wealth, capital, power and material possessions away from the Producers and concentrate it in the hands of the rich and powerful counter-producers.

In today’s nations on planet earth we find the expansion of the money supply being used to acquire money instead of producing commodities, trades, goods and services for the money.  They acquire money by going outside of the Open Market.  They don’t bring self-created commodities, trades, goods and services to the Open Market where they can exchange them for money.  They simply steal money, value, energy, wealth, capital and power by expanding the money supply.  This misuse of money, “the symbol for value, energy,wealth, capital and power,” is very destructive to the societies and nations on the planet.

We see the accumulation of massive amounts of wealth in the hands of the Capitalists without the proper exchange for it.  There are various methods of speculation being used on the stock market to take vast sums of money without an exchange for it.  The basic purpose of stock market investments is to increase and enhance production in the companies invested in.  Stock market investment should be investments made over a long enough period of time where the company invested in gets an exchange for the money it paid out in dividends.  Stock market investments should be investments made for the purpose of enhancing productivity in the company invested in along with creating wealth for the investor.  This is as apposed to short term pure speculative investments where huge sums of money are taken without or not enough exchange returned for the money taken.

Investing in the Stock Market should be a Producer created service.  The dividends received by the investor should be in exchange for the money the investor allowed a company to use while enhancing production.  This should be a Producer created service exchanged for the dividend money received.  The main purpose in investing in the stock market is to enhance the prosperity of both the individual Producer, doing the investment, and the company being invested in.

Speculation investment such as skimming the market with or without a computer program to remove profits is taking money with no exchange for it.  Speculation on commodities and not taking possession of them, at least to store them, is taking money without an exchange for it.  Speculation on commodities and not using them to create further production or to store them is taking money without an exchange for it.  This type of non-productive speculation results in huge sums of money being taken with no exchange for it.  This type of speculation places non-productive demands on the commodity, increasing the price of the commodity.  The producers who use the commodity for further production now have a higher cost added to the input side of their production.  The money spent on the higher cost of the commodity goes to an out-exchange speculator who exchanged nothing in return for the money he received.  This type of speculation violates the purpose of investing in the Stock Market.  This type of speculation harms the prosperity of the out-exchange speculator, the company, society, nation and mankind.

An example of this is the counter-production speculation on oil commodities.  Counter-producer speculators bid the price of oil up while not taking possession of it, at least to store it. They bid up the price of oil while flipping paper.  They perform no production at all.  They don’t do the minimal activity of handling the oil commodity.  The price gets bid up, based on no need or want or to use it for creating further production.  The Producers who use oil as an input to create production have a higher input cost.  Speculation should only be done by Producers who use the commodity speculated on to further the creation or enhancement of production.  The counter-producer-speculator-parasite sells the commodity and walks away with huge profits while contributing no production at all in exchange for the money.  The higher cost of oil products are felt throughout the society.  “The counter-producer-speculator-parasite is sucking the energy out of the society.” This counter-producer parasitic activity can be felt by all the Producers in the society.  Their energy is being stolen away.

We see recessions and economic collapses occur because counter-producer-speculator-parasites have stolen huge quantities of energy from the Producers, families, organizations, societies, nations and mankind.  This occurred in the early 2000’s.  It caused the economic collapse in 2008.  This also caused the Great Depression.

The counter-producer-speculator-parasite further damages the economic system by using this out-exchange money to place a demand on the Market further increasing the prices of all other commodities, trades, goods and services on the Market.  He further damages the economic system by using his out exchange money to run lies, deception and propaganda promoting and justifying his methods of taking money without an exchange for it.  He also uses this out-exchange money to take over and control the political system where he further robs and enslaves the Producers.

The Producers find themselves working harder and receiving less in return while carrying the counter-producer-speculator-parasite, money expander, capital destroying Capitalist, Fascist and the Communist on their backs.   The above groups of non-producer and counter-producers have as their purpose and sole purpose to extract money, value, energy, wealth, capital and power from the Producers.

The Producers have established the money unit as the symbol for value, energy, wealth, capital and power.  They create this value, energy, wealth, capital and power through the production of commodities, trades, goods and services.  The Producers create the value, energy, wealth, capital and power a society and a Nation operates with.  We need to produce a Quality Control System where we take full control and responsibility for the economic system we create every day as we produce prosperity for ourselves, families, organizations, societies, nations and environments.  We are the producers and creators of the economic system.  We must become the creators of a system of control where the non-producers and the counter-producers remain outside of the economic system.  They have chosen to function on the outside sucking the energy out of the economic system.  Let’s let them be out there without any money, value, energy, wealth, capital and power unless they exchange self- produced commodities, trades, goods and services for any money, value, energy, wealth, capital and power received.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
August 3, 2012

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Friday, August 3rd, 2012 Constant Money Supply 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

1.95 Producers, Non-producers and Counter-producers

Revised October 30, 2013

In this article we will be covering Producers, Non-producers and Counter-producers, with the purpose of bringing more understanding on how an Economic System functions.  I will be introducing a new concept on the non-producer side of the Producer/ non-producer dichotomy.  This new concept is the Counter-producer.  The counter-producer thrusts his efforts in the opposite direction or in conflict with production and prosperity.

The Producers are the creators of the value, energy, wealth, capital and power the money symbol represents. The value, energy, wealth, capital and power are carried with the money unit after a product is exchanged for it on the Open Market.  We have covered this process of converting produced value and energy into money units in earlier articles.  Value is created through the production of goods and services.  Energy is created and placed into the goods and services at the time of production. When the goods and services are marketed on the Open Market the produced value and energy are transferred to the money units.  During the process of Marketing, wealth, capital and power are also brought into existence.  They are also represented by the money unit symbol.  All of these, the value, energy, wealth, capital and power can be measured and defined in terms of money units. This is how an Economics System comes into existence and continues to thrive and prosper into the future.

The Producers create the Economic System and maintain its prosperity and growth.  If all we had existing in an Economic System were Producers, we would have a very healthy thriving Economic System.  We would have individual Producers, families, organizations, societies, nations, mankind and environments prospering and thriving.  This is the Ideal State for an Economic System.  This is a goal and a target, in which to strive for, in creating a prosperous Economic System.

However, the ideal state is seldom achieved but always must be sought after.  This Ideal State can be very closely achieved but not at a 100 percent level.  We must maintain the axioms of economics and strive to reach this ideal state.  Along the way we will have a very thriving Economic System.  It is when we fail to maintain the axioms of economics and stop striving for the Ideal State that the Economic System slides into a recession.  An Economic System starts to fail or slide into a recession the moment the Producers stop striving for the Ideal State of an Economic System.

Producers lose their focus on the Ideal Economic State when they agree with becoming non-producers and counter-producers.  Producers loose their focus when they agree to have or allow non-producers and counter-producers to take money without an equal amount of production exchanged for the money.  Producers also go off focus when they agree to accept counter-producer destructive creations in the Market where they can be exchanged for money units. 

The Ideal State for an Economic System is: When we have Producers and only Producers operating in the economic system creating money, value, energy, wealth, capital and power then we have the Ideal State for an Economic System.

As soon as we stop striving for and focusing on the Ideal State for an Economic System, the non-producers and counter-producers start to pull the Economic System into a recession.  The numbers of non-producers and counter-producers start increasing in numbers in proportion to Producers.   If we don’t hold this Ideal State as a goal, the counter forces against this Ideal State will overtake the Producers and reverse economic growth and expansion.  These counter forces work 24/7 at reversing economic growth and expansion.

There are two counter forces at work here. The first one is the non-producer.  The second one is the counter-producer.  Both the non-producer and the counter-producer exert forces against the Ideal State for an Economic System.  They are both non-producers but the counter-producer actively engages in destructive counter-production activity in exchange for his money.

The non-producer creates no, or not enough production for the money received. The non-producer pulls in small quantities of money to large quantities of money and at times very large quantities of money, value, energy, wealth, capital and power without enough or no exchange, at all, for it.  We find farmers on welfare, corporations on welfare, monopolists on welfare, speculator bankers on welfare and the poor on welfare.  We also find speculators, who don’t use speculation to further production but speculate to take wealth with no production in exchange for it, are also on welfare.  These rewarded non-producers take money with no or not enough production in exchange for the money they receive.  Bankers who expand the money supply are the counter-producer money supply expanders in this rewarded non-producer/counter-producer classification.

The money supply expanders literally steal the value, energy, wealth, capital and power out of the money you presently have in your pocket, your bank account and in your assets.  They steal the value, energy, wealth, capital and power during the process of expanding the money supply.  They aren’t placing production on the Market for the money they are removing while printing more money.  So, your money value, energy, wealth, capital and power are transferred to the money expanders.  The money in your pocket, in your bank and in your assets loses value, energy and power.  The money supply expanders are non-producers and counter-producers.  They are rewarded counter-producers.  By expanding the money supply the money supply expanders are stealing energy from the Producers.  They are stealing money value from the Producers.  They are stealing wealth from the Producers.  They are stealing capital from the Producers.  They are also stealing power from the Producers.  They are countering and thrusting against the prosperity of the Producers, families, organizations, societies, nations, mankind and environments.

The non-producers take more money out of the Market than they put exchange back in.   They take money from the Market with no or not enough exchange for it.  Some non-producers create monopolies.  They dominate the supply of a particular commodity, trade, good or service and create an artificial shortage.  They create an artificial shortage with the purpose of causing the demand to rise on a specific commodity, trade, good or service.  This increased demand increases the price of the commodity, trade, good or service on the Market.  In this case they are receiving more money units than product placed on the Market while exchanging product for money units.

The second counter force at work in destroying economic growth and expansion is the Counter-producer.  Counter is the opposite direction to or in conflict with.  The counter-producer creates commodities, trades, goods and services that are in opposite direction to or are in conflict with prosperity.  This harms the prosperity of the Producer, family, organization, society, nation, mankind and environments.  The counter-producers’ goods and services are not classified as products.  The rewarded counter-producers’ commodities, trades, goods and services are destructive to the prosperity of the Producer, family, organization, society, nation, mankind and environments.  The counter-producers’ counter production is harmful to the greatest good for the largest number of people.  The rewarded counter-producer receives money in exchange for the destruction he is doing to the Producer, organization, society, nation, mankind and environments.  The counter-producer is actively destroying Producers, production facilities and Economic Systems. While he passes off this destructive activity as production.  He receives money, value, energy, wealth, capital and power for this destructive activity.

The counter-producers may appear to be and in many cases are very hard workers but their production falls short of the definition of a Product.  Their production is harmful to the prosperity of the greatest good for the greatest numbers.  These people work daily creating counter-survival commodities, trades, goods and services.  These counter-survival commodities, trades, goods and services are destructive to the prosperity of the Producers.  They not only suck money, energy, wealth, capital and power from the society with a destructive exchange but their “production” harms the Producers and all life on Earth.

The counter-producers’ counter-survival creations cause lower production levels for the Producers.  This destructive production also converts Producers into non-producers. Producers lose jobs during recessions, depressions and wars caused by the rewarded destruction of the counter-producers.  Producers get ill from using and being in the environment of the destructive creations passed off as products by counter-producers.  Producers lose their ability to produce from lost jobs, ill health and upset in the work environment.  Death may result from the effects of counter-producer destructive creations.  Destructive production causes numbers of non-producers and counter-producers to get larger.

Destructive production created by counter-producers is never a good sign in a society.  In a healthy, Producer Rewarded Open Market Economic System there will always be far more production jobs available then producing individuals to fill them.  The only people not working and producing will be the most unable physically, mentally or spiritually.  The numbers of non-producers will be so low that their counter productive impact on the Producing society will be very minimal.  Charity will be able to handle them.  There will be no welfare for the rich or the poor because it will not be needed.  There should be no counter production or counter-producers present.

Examples of counter-producers and counter production are illegal drug trade, over-consumption of alcohol, over prescribed prescription drugs, most if not all Psycho-tropic drugs, excess national defense, crime, tobacco products, any directed effort in anyway used to block or restrict production competition such as monopolies and using destructive lies, deception and propaganda.

In Producer Rewarded Open Market Economics we can spot counter production creations and activities once thought of as products.  This counter production is in conflict with or going in the opposite direction to prosperity.

Producer Rewarded Open Market Economics, in its fullest definition, is a science of the prosperity of the individuals, family, organizations, societies, nations, mankind and environments.  Anything that is in conflict with prosperity or going in the opposite direction opposed to prosperity is counter production.

In Producer Reward Open Marker Economics we find the Producer thrusting toward prosperity.  We find the non-producer being dead weight pulling down the prosperity potential of all Producers and non-producers.  We find the counter-producer engaged in direct conflict with and going in the opposite direction from prosperity.  The counter-producer attacks prosperity, covertly or overtly.

In the current economic system on Earth we find the non-producers and the counter-producers being allowed to participate in the economic system, the Market and the Money Supply.  Then we wonder why the economic system keeps failing.  We are allowing counter-producers to dominate it and destroy it!

 The counter-producers are allowed to dominate the Market and the Money Supply.  The Producers, on the backs of which all prosperity rests, are carrying the whole load of prosperity along with the non-producers and the destruction of the counter-producers.  The counter-producers are opposing the Producers at every step of the way.

With this data we, the Producers, can step up and be proud and take control of the Economic system we create despite the counter production of the counter- producers and the dead weight of the non-producers.

There are working Producers creating prosperity.  There are working counter-producers creating destruction and countering prosperity.  There are non-producers, not working, sucking the energy out of the Economic System.

The Producers create money, value, energy, wealth, capital and power.

The non-producers suck the money, value, energy, wealth, capital and power out of the Economic System.  They accomplish this by taking money without exchanging commodities, trades, goods or services for it.

The counter-producers suck the money, value, energy, wealth, capital and power out of the Economic System.  They accomplish this by creating destructive products that harm the Producers, families, organizations, societies, nations, mankind, and environments.

I will end off by leaving you with an exercise.  Go out and see if you can use the following data to identify the Super Producers, Producers, non-producers and counter-producers in your company or society?

Remember, the Super Producer holds the company together despite all the counter efforts put forth by the non-producers and counter-producers.  At this time the Super Producer usually producers far more than he receives in money units exchanged for his production.

The Producer is pulling his weight; he is in full exchange with production for money.

The non-producer is out exchange.  He is the under producer or the under achiever.  He is receiving more money than he is creating in production.

The overt (easily spotted) counter-producer is another matter.  He is the guy who stops production, he confuses up for down, left for right, he gets hurt a lot, he is in accidents, destroys company property, uses drugs and excess alcohol, has unusual sex practices, gets into arguments frequently.  He has more than normal health problems.  He looks for ways to find fault.  He has to be watched continuously.  He is destructive to the company and the staff.  He upsets the staff and the public.  This is the overt counter-producer.  He creates a hostile and stressful environment.  He tends to be over the top in his criticizing.  He will alter and exaggerate, too the negative, the information that needs to be passed on.  He is confused with priorities.  He reverses priorities, taking a lower or the lowest priority first.

There is also the covert (hidden) counter-producer.  He is much harder to detect.  There are clues you can follow.  He will us drugs, excess alcohol and has unusual sex practices.  He has more then normal health problems.   He excels in giving confusing orders.  He will give orders and an hour later will change the whole line up.  He makes a lot of confusion for the staff.  He quietly creates a stressful environment.  He appears to be nice and friendly but will covertly stab you in the back.  He criticizes in a sort of smooth and complementary way.  He will tell the producer how good he is and not promote him.  He will promote a fellow counter-producer instead. He will alter information that needs to be passed on.  He is confused with priorities.  He will surround himself with overt counter-producers.

Here you go.  I hope this helps bring about a better understanding of the Economic System.

Producer Rewarded Open Market Economics
The Science of Economics
BY: R P Obrigewitsch
March 24, 2012

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Thursday, March 29th, 2012 Producer Rewarded Economics 1 Comment

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. The Open Market!

Revised November 17, 2013

The Open Market Construct is the third important Axiom in Economics.  The first important Axiom in Economics is; ALL MONEY IS CREATED THOUGH AND BACKED BY PRODUCTION.  The second important Axiom in Economics is; THE PEOPLE WHO CREATE THE PRODUCTION OWN THE PRODUCTS AND THE MONEY RECEIVED FOR THE PRODUCTS WHEN THEY ARE EXCHANGED ON THE OPEN MARKET.  When the producers exchange the production on the Open Market they own the money units received for it.  The fourth important Axiom in Economics is; MAINTAIN A CONSTANT MONEY SUPPLY, NO EXCEPTIONS.  Maintaining a constant money supply standardizes the entire Economic System.  This is like the Metric System being standardized with the standard meter.

The Open Market is a Market.  The Open Market Construct is defined in the Producer Rewarded Open Market Economic System.  All Markets exist because of supply and demand forces. If there are no supply and demand forces, there are “no Markets.”  The supply and demand forces inject life or dynamics into a Market.

The most important parts in the Open Market Construct are (1.)  The Open Market is “open to all on equal terms,” (2.)  The Open Market is a “pure supply and demand” marketing system and (3) The Open Market is, restricted to Producers and only Producers.”  The Open Market is restricted to the activity of Producers because, Producers create all Markets.  Non-producers and counter-producers destroy Markets and thus, are excluded by their nature. They have excluded themselves by being a counter force to the force dynamics that operate all Markets.  In this case they are a counter force to the  Open Market.  They, at some time, have made a decision to be a counter force to the existence and prosperity of the Market and themselves, organization, societies, nations, and mankind.  The Open Market Construct is activated and propelled by the supply and demand principles used by Producers.  The Producers use the supply and demand principles when purchasing and selling commodities, trades, goods and services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
October 2, 20011

 

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Sunday, October 2nd, 2011 Open Market Economics No Comments
 

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