products

1.6 Government Products and Services

Revised November 6, 2013

Purpose

The purpose of this article on Government Products and Services is to have an Economic System where everyone can win:  Where everyone has equal access to the Market.

 The only true Market is the Open Market.  The Open Market is a Market that is open to all Producers on equal terms.  The Open Market is a Market created by Producers.  The Producers generate the energy on which the Open Market operates. 

Non-producers and counter-producers have excluded themselves from the Open Market.  They have in reality excluded themselves from all Markets.  They have excluded themselves because they remove energy from Markets without exchanging commodities, goods or services for the energy they take.  They are on the outside of all Markets removing energy.  Energy gives Markets life.  Non-producers and counter-producers deflate and destroy Markets.  They send Economic Systems into recessions and depressions when they are allowed to participate in the Markets.

This section titled Government Products and Services is about the Producers and only the Producers having equal access to the Market.  This section is about restricting access to Markets.  The access is restricted to Producers and only Producers.  Non-producers and counter-producers should never be allowed to have access to Markets. 

Producers create and flow energy into Markets.  Counter-producers and non-producers destroy and remove energy from Markets.  Producers put life into Markets.  Counter-producers and non-producers take life out of Markets.  The energy created and flowing into the Markets by the Producers is the only source of energy any Market has.  Without the Producer generated energy the Market would not exist.

 Monopolies

In this section, Government Products and Services, we will look at monopolies as non-producer and counter-producer entities.  We will look at how monopolies can be harnessed and converted into Producer operated entities.  We will look at how monopolies can be set up so they are energy generators and how they can flow energy into Markets and expand Markets.

Today monopolies tend to pull more energy out of Markets than they flow in.  They tend to be non-producer and counter-producer entities.  They tend to be a recessive drag on the Markets and the Economy.  Monopolies have a great potential for destroying Markets, Economic Systems and Prosperity.

A monopoly is the exclusive possession or control of supply.  The supply would be commodities, goods, trades or services.  With the exclusive possession or control of the supply, Market energy can be rapidly deflated.  This means more Market energy is being removed from the Market than is being exchanged back into the Market in the form of commodities, goods, trades or services.

When the supply is exclusively possessed or controlled, the possessor or controller can create a false short supply in that commodity, good, trade or service.  This short supply will greatly increase the demand for it.  The great increase in demand will cause large amounts of money, value, energy, wealth, capital and power to flow from the Market to the counter-producer.  In this case, the counter-producer is the individual or organization that exclusively possesses or controls the supply.  The counter-producer causing the shortage of supply will be redistributing the money, value, energy, wealth, capital and power.  He will be redistributing the money, value, energy, wealth, capital and power, created by the Producers, into his own hands. The Market will go into a recession.  The Economic System will be on a downward spiral.  The money, value, energy, wealth, capital and power will be concentrated into the hands of the counter-producer monopolist.

When the Producers in a society say, “We need to redistribute the wealth,” this is a miss statement.  The wealthy counter-producers have already redistributed the wealth from the Producers into the hands of the rich and wealthy counter-producers.  The Producers should be saying, “We need to take back the wealth that was redistributed from us and placed into the hands of the rich and powerful counter-producers.”

In the Robin Hood story, it is a miss-statement to say, “Robin Hood took from the rich and gave to the poor.”  Yes, he did take from the rich and gave to the poor.  However, the statement has left out a huge important part of the story.  The important part of the story is, the wealth held by the rich was created by the Producers.  The rich stole the wealth from the Producers.  Robin Hood is an English medieval outlaw, reputed to have robbed the rich and helped the poor.

The correct way to interpret the Robin Hood story would be to say.  “Robin Hood took back from the rich and powerful, the wealth that did not belong to the rich and powerful.  He took back the wealth that belonged to the Producers of the wealth.  The Producers produced it in the first place.  They produced it, therefore they own it.  The rich and powerful counter-producers stole it from the Producers.  Robin Hood’s purpose was to place the wealth into the hands of its rightful owners.”

 Governments

Most Governments have set up Producer Rewarded programs along with non-producer and counter-producer programs.  Today most governments have set up Producer Rewarded programs mixed in with programs (non-producer and counter-producer rewarded programs) that reduce prosperity.

The programs that reduce prosperity come about from counter-producers being allowed into the Markets and in Governments.  Some counter-producer Government programs are the various forms of Corporate Welfare.  These are commonly called subsidy programs.  I call them welfare programs because they rank lower than the Welfare Programs that assist the Poor.  They are ranked lower than the welfare programs that help the poor because money, value, energy, wealth, capital and power is diverted to rich and well-to-do individuals who have the means to produce. 

We would have far fewer poor people on welfare if money, value, energy, wealth, capital and power were distributed to the Producers who create it.  Rewarding Producers would bring about prosperity levels far beyond what we consider as prosperity today.  The prosperity levels would eclipse the prosperity standards of today.  They would eclipse the prosperity levels to the point where we would have very, very few poor people.  Government expenditures in Welfare for the Poor would be very low.  By removing welfare programs used to redistribute wealth to the rich and well-to-do, we would almost eliminate the class of poor people.

Examples of Government counter-producer programs are:  All forms of corporate Welfare (subsidies), all forms of Agricultural Welfare (subsidies.)  The exception to this is when Governments invest in development programs for new technology.  Once the new technology is developed it should be sold to industry.  Another exception would be Government allocation of funds for disaster aid. 

Included in this class of counter-producer programs would be Government as the source of insurance for the Nuclear and Banking Industries.  When private Insurance Companies won’t cover an industry, the industry is too dangerous to have around.   Or, there is criminal activity abounding in that industry.  Government provides Insurance for the Nuclear Power Plant Industry because of the extreme damage that can be caused by an accident at a Nuclear Power Plant.  The Nuclear Power industry is too dangerous to have around. 

Government provides Insurance for the Banking Industry because criminal activity abounds in that industry.  The purpose of Banking is to provide security for the money, value, energy, wealth, capital and power that are created by the Producers.  The banks purpose is to provide security from external forces attempting to steal money, value, energy, wealth, capital and power.  The Banking Industry doesn’t provide enough security from internal forces attempts at stealing the money, value, energy, wealth, capital and power. 

Individuals, families, organization, societies, nations and mankind have suffered much damage as a result of Banks not having enough internal security in place.  This was why Government took over carrying Insurance to protect the depositors from the Bankers.  It has become apparent that the Banking Industry should be Publicly Government owned.  If the Government covers the costs of Banks failing because of insider criminal activities than the Government should take over the Banks. 

There is another reason the Government should operate the Banking System.  The reason is to maintain control of the Money Supply.  The Money Supply should be held constant. 

Currently Banks expand the money supply daily.  When they expand the money supply they are literally taking value, energy, wealth, capital and power from all the existing money in circulation.  Banks are allowed to steal daily from the Producers who toil daily creating the money, value, energy, wealth, capital and power.

The Government borrows money from the Federal Reserve (a private company.)   Technically the Federal Reserve has no money on hand.  How do they get the money they loan our?  They expand the money supply.  They literally have access to all value, energy, wealth, capital and power that exists on the Planet.  They take it from the existing money by expanding the money supply.  They transfer it to the Government.  They also transfer it to Banks who borrow from the Federal Reserve.  The Government pays the Federal Reserve an interest on the money.   The Federal Reserve expands the supply of the money symbol for the money the Government borrows.  The Producers create the value, energy, wealth, capital and power the money symbol represents.  The value, energy, wealth, capital and power are transferred from all existing money units in circulation.  The Federal Reserve basically expands the supply of symbols and steals the value, energy, wealth, capital and power from all the people who own existing money units.  The Government pays an interest for, in essence, stolen money. 

In the definition of money, money has two parts.  In the first part, money is a symbol.  In the second part, the money symbol represents value, energy, wealth, capital and power.  The money symbol without value, energy, wealth, capital and power is not money.  The only way money value, energy, wealth, capital and power can come into existence is through the production of commodities, trades, goods and services.  Any form of increasing the amount of money supply symbols without exchanging self produced commodities, trades, goods and service on the market for it is stealing.  This is an act of stealing value, energy, wealth, capital and power from the Producers.

The Federal Government has the power to take over the control of the Money Supply.  In the United States it is given this power in the Constitution.

All of the counter-producer Government programs that remove money from the Markets without exchange for the money should be removed from Government. 

All Government programs should be programs that enhance production and prosperity.  The only source of the Government’s money, value, energy, wealth, capital and power comes from the Producers.  Governments should be doing all in their power to enhance production.  They should be doing all in their power to reward the Producers.

Instead Government is assisting in the redistribution of money, value, energy, wealth, capital and power.  Government is assisting the rich and powerful in their thrusts of taking money, value, energy, wealth, capital and power.  Government is allowing individuals to take money without exchanging commodities, trades, goods or services for it on the Market.  Government is allowing non-producers and counter-producers to enter into the Markets. 

While all counter-producer Government programs are being removed from Government we can move forward in handling monopolies.  All Government created monopolies should be removed.  Governments should not create any monopolies.  Removing counter-producer government programs and monopolies is an action of creating toward prosperity.  All Government programs should be Producer rewarding and enhancing prosperity. 

In cases where Governments feel it necessary to create a monopoly, the monopoly should then be Government owned and operated.  I placed this in here because counter-producers will attempt to have a Government create a Legislated monopoly.  The counter-producers want ownership of Government Legislated monopolies. 

With such monopolies in existence the counter-producers redistribute money, value, energy, wealth, capital and power, from the Market, into their hands.  This causes recessions and hardships for the Producers.

We can use Government to harness and convert monopolies into Producer operated entities.  We can use Government to enhance the Markets and the Economic System. 

Government products and services should include all natural occurring monopolies.  This to a large degree is pretty much all Government should be doing.  If Governments do much more than this they are outside of the Government’s bounds.  Ownership of monopolies should be by Government or by other types of Public Ownership.

Public ownership could be as broad as all the people in a Nation owning the exclusive commodities, trades, goods or services of the Nation.  An example would be the National Park System.  Or, all the people of a Nation should own the National Defense System, the National Government, the National Policing Systems, the National Forests, National Highway System, National Hydroelectric system, Education Systems, Government Legislated Monopolies such as Health Care, Correction Facilities, etc. 

Public ownership could be less broad.  It could include ownership by people in subdivisions of the Nation.  This would be ownership of local Governments, exclusive commodities, trades, goods or services exclusive to a specific area.  These areas could be a State, Country, Township, District, Ward, Parish, City or any other defined area.  Examples of these monopolies would be Education Systems, any legislated monopoly Health Care Systems, Roads, Bridges, Correction Facilities, Parks, Water Supply Systems, Water and Sewage Treatment, Libraries, Mass Transit, Policing, Fire Control Emergency Services, etc.

 Co-operatives

There are private types of Public Ownership.  Co-operatives are an example.

Co-operatives would include monopolies owned and run jointly by its members.  The profits and benefits would be shared among the members.  Co-operatives aren’t exclusive to operating monopolies.  Many other types of business could be run through co-operatives.  This system of ownership has worked very well in the past.

The main point here is that private ownership in the form of Co-operatives could be used in an exclusive area where there is an exclusive commodity, trade, good or service.  Operating the exclusive monopoly by a Co-operative will harness and convert the monopoly into a Producer operated entity.  In this way an exclusive commodity, trade, good or service can be harnessed into an enhancement of the Market and Economic System.  The exclusive commodity, trade, good or service produced through a Co-operative will flow energy to the Market.  The prosperity of the Producers will be enhanced.

There are examples of monopolies the Co-operative type of Public ownership could cover.  They would be electrical energy production and transport (the REA, Rural Electrification Association), commodity transportation systems, bridges, health care, education, commodity storage systems, etc.

Government or Co-operative control of monopolies can convert monopolies from being potentially destructive to Markets and Economic Systems into enhancing prosperity in Societies and Nations.

This system would have all naturally occurring monopolies set up so they enhance the Markets.  Government Products and Services would include the production of commodities, trades, goods and services produced in monopolies. The Government and Co-operative owned monopolies would flow energy to the Markets.  Today monopolies tend to drain energy from Markets.  Monopolies would be set up to enhance the prosperity of the Producers, Families, Organizations, Societies, Nations, Mankind and Environments.  

Producer Rewarded Open Market Economics
The Science of Economics
RP Obrigewitsch
July 17, 2011

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Tuesday, June 11th, 2013 Producer Rewarded Economics No Comments

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

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

6. Review

Revised November 14, 2013

An Economic System is really and exclusively made up of Producers.  The Producers create the Economic System and operate it.  They create prosperity for the societies.   Any non-producer or counter-producer activity is destructive to Economic Systems and prosperity.  The non-producers and counter-producers destroy prosperity for themselves, Producers and societies.

Producers are in or inside the workings of a prosperous economic system.  They create and generate the energy for the economic system.  They give it life and prosperity.  They apply the rules or Axioms of Economics to the economic system.  The non-producers/counter-producers are outside of the economic system, they take the energy out of the system and destroy the system.  They refuse to apply or use rules or the Axioms of Economics in economics.  Economic systems with the presence of non-producers and counter-produces are receding systems.  These economic systems sink into recessions and depressions.  The non-producers and counter-producers take the life and prosperity out of an economic system.

We will look at economic systems and review how they came into existence through the directed energy thrusts of the Producers.

We have seen the evolution of how money value is created and backed.  We have also seen the importance of maintaining a Constant Money Supply.  Let’s review the evolution of the economic model.  The economic model is a step by step evolution on how money is created and why it is important to maintain a Constant Money Supply.

First:  There are individuals in a group of people producing commodities, trades, goods and services.

Second:  The people in the group need and want each others commodities, trades, goods and services.

Third:  At first these commodities, trades, goods and services were exchanged in ratios to each other among the members of the group.  This is called bartering.

Fourth:  These ratios define the exchange rates or exchange values of the commodities, trades, goods and services.

Fifth:  It became apparent that a symbol was needed to represent the exchange value of the commodities, trades, goods and services.  A medium of exchange was developed.

Sixth:  A symbol was created to represent the exchange value and it was called money.  This symbol became the medium of exchange and it is used in trading commodities, trades, goods and services on the Open Market.

Seventh:  This symbol represents the exchange value of commodities, trades, goods and services, in defined terms, called money units.

Eight:  Continued production creates more exchange value and this exchange value backs the symbol called money.  The exchange value gives money its value, energy, wealth, capital and power.

Ninth:  Increasing production increases the exchange value inherent in each money unit and in the money supply.

Tenth:  It became obvious that when the money supply is held constant the Constant Money Supply standardizes the money unit as a unit of measure.  This standardized unit of measure is used to estimate, assess or ascertain the exchange value of commodities, trades, goods and services.  It is also discovered that the economic system becomes secured and standardized when the money supply is held constant.  A Constant Money Supply provides security preventing the transfer of exchange value, money value, energy, wealth, capital and power away from the Producers without an exchange returned for it.  A Constant Money Supply prevents the non-producer and counter-producer from stealing the value, energy, wealth, capital and power away from the economic system and from the Producers of the value, energy, wealth, capital and power.

There are standardized units of measure for length, weight, volume etc.  These standardized measures allow the Producers to function efficiently.  These standardized measures lend efficiency to the Open Market and the economic system.  They protect the Producers of the commodities, trades, goods and services against the non-producers and counter-producers.  It is unimaginable to conceive a society or an economic system without standardized units of measures for length, weight or volume.  It is also hard to conceive an economic system without a standardized unit of measure for exchange value, the money unit.  The money unit must be standardized in order for Producers, families, organizations, societies, nations, mankind and the environment to prosper.

There are very few if any Constant Money Supply nations or economic systems remaining on the planet today.  The lack of Constant Money Supply nations and Economic systems is the source of much of the economic turmoil experienced on the planet today.  In an economic system lacking a Constant Money Supply, the non-producers and counter-producers have a field day expanding money supplies.  As they expand the money supply they steal the exchange value straight out of the money units, already in existence, and out of the economic system.  They steal the value, energy, wealth, capital and power out of the economic systems.  A lack of a Constant Money Supply gives non-producers and counter-producers a huge opening into the economic system and into the wallets and purses of the Producers.

A nation or economic system lacking a Constant Money Supply is like having a bank without doors, windows or walls.  The non-producers and counter-producers have almost total free rein in stealing the exchange value, energy, wealth, capital and power out of the money units and out of the economic systems as they expand the money supply.

A nation or an economic system with a Constant Money Supply is like having a bank with very secure doors, windows and walls along with absolute explosive proof vaults.  The non-producers and counter-producers have no access to money by expanding the money supply.  They are sealed out of the economic system and out of the wallets and purses of the Producers.  The only way they can have access to money is when they become Producers.  They become Producers by creating commodities, trades, goods and services and marketing these commodities, trades, goods and services on the Open Market in exchange for money units.  This is the only way anyone can be in an economic system.

Eleventh:  Gold was settled on as the most stable material to use when creating a Constant Money Supply.  It is fairly rare.  It is difficult to bring more gold into existence, making it difficult to expand the money supply.

After the money unit concept came into practice another problem developed.  That problem was, “How are we going to find a money unit symbol that is set at a specific number of money units in circulation at one time?”  Gold was eventually settled upon.  Gold wasn’t 100% set at a specific number of money units but it was as close as they could get at the time.  There are no absolutes in this universe.  Gold was used because it was as close as they could get as an absolute for maintaining a Constant Money Supply.  Establishing a Constant Money Supply with gold created a high level of stability and consistency in the money unit and the economic system.

There are times when the supply of gold was not held constant.  This caused economic collapses to occur. There are examples of where the gold money supply was expanded causing failed economic systems.

After Spain’s discovery of South and Central America, they brought huge sums of gold over to Spain from the Americas.  Their gold money supply was greatly expanded.  The expansion, of the gold money supply, lead to a great inflation.   Spain invested this new gold into building a great Navy and military power, leading to an economic collapse in Spain.  (This is taken from the History of Economics publication.)

It is noted here that over-spending on military is counter-production.  It is destructive to the society that has to carry such a heavy burden.

Gold had been used to maintain a Constant Money Supply.  In Spain the Constant Money Supply construct was violated.  This became an instance of non-producers and counter-producers stealing the value out of the money units in circulation, transferring the value to the new introduced gold.  This led to a great devaluation of the gold in Spain and a failed economic system.  Non-producers and counter-producers took much value out of the gold by expanding the amount of gold in circulation without exchanging production for it.

The Producers over time developed economic systems.  Step by step, they brought economics systems to more efficient, secure, standardized and prosperous levels.  Unfortunately the non-producer and counter-producers continued to follow along, covertly and overtly, developing destructive methods used to steal the money value, energy, wealth, capital and power out of the economic systems and from the Producers.

The technology developed here in Producer Rewarded Open Market Economics has given us tools we can use to create a prosperous economic system.  We can also use this technology to protect and secure the Producers and their production.  This technology can be used to standardize economics systems and money units.  Applying the technology of Producer Rewarded Open Market economics will bring about efficient and secure prosperous economic systems where the Producers can prosper; where families can have a bright and secure future; where societies can grow and expand in prosperity; where Nations can live and exist side by side without the presence of war or the threat of war.  Mankind can have a future filled with hope and prosperity.  We will find environments free of the poisons and destruction laid down by the non-producers and the counter-producers.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
July 22, 2012

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Sunday, July 22nd, 2012 Constant Money Supply No Comments

4. Money Symbol

Revised November 14, 2013

The symbol called money was invented and put into use in order to simplify and standardize exchange value.  The money symbol also led to the simplification and standardization of the economic system.  It became apparent that when the supply of money units was held constant the economic system became very stable and prosperity increased.

This money symbol is usually printed and coined by governments.  Paper is the most common form of material used for the printed money.  Metal is the most common form of material used for coining money coins.  Money is a symbol that can be carried and counted conveniently.  The money symbol not only simplifies the complex problem of defining exchange value of products and services in terms of each other, it standardizes economic systems.

The money symbol is nothing more than paper and metal until a universal agreement is made by the Producers to have this paper and metal represent the exchange value that production by mankind has created.  This agreement is made and maintained every time each one of us uses this symbol when exchanging it for commodities, trades, goods or services.  The Producers have created this agreement.  They create the commodities, trades. goods and services and thus agree to use the money symbol to represent the value present in the commodities, trades, goods and services they have created.  When this agreement is made, we can say the person who created the commodities, trades, goods and services also creates the exchange value and production value which money represents.  Without a product, exchange value and production value do not exist.

The person who created the product which has the exchange value has in effect created the money that represents the exchange value.  The person who created the production has also created the agreed upon reality of: The money symbol represents the value of the commodities, trades, goods and services he has created.  Money without exchange value is not money at all but a piece of paper or a piece of metal.

The Producer is the initial creator, of the reality, of a money symbol representing exchange value for commodities, trades, goods and services marketed on the Open Market.  The non-producer and counter-producer came along later with their out-exchange ways to take money without an exchange for it.

Let’s look at exchange value expressed in money units.  We will start by having one dozen eggs equal to two (2) money units in exchange value.  We will have one gallon of milk equal to four (4) money units in exchange value.  One coat could have an exchange value of two hundred (200) money units in exchange value.  One computer could have an exchange value of one thousand (1000) money units and one car has the exchange value of thirty thousand (30,000) money units.  As can be seen, this is a system where all products created by mankind are now having their exchange values defined in terms of money units, a medium of exchange, instead of in terms of each other.  This has made a much more refined and efficient system in dealing with exchanging products that one produces for products that others have produced.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
July 7, 2012

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Saturday, July 7th, 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

1.7 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

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

1.0 Money Velocity and Prosperity

Revised November 15, 2013

Introduction

The Money Velocity and Prosperity article addresses how rapidly money changes hands in a society and how rapidly it passes through the hands of all mankind.

On this planet we are in a closed economic system.  The energy of economics flows through all people on the planet.  For some people it is almost non-existent and for others there is a very high volume of money energy flowing through them. The problem we face here on this planet is when too few people have gained far more money than they have created.  As a result, we find many, many people who are shorted the money they have created and this causes discord and suffering among the people on planet earth.  This discord leads to recessions, depressions, starvation, diseases, joblessness, lack or slowing of technological advances, crime, lack of self-respect and ultimately the insanity of war which destroys and wastes away individuals, families, organizations, societies, nations, mankind and environments.

Some people don’t like to deal with money.  Some believe money is evil.  Some people work creating destructive activities to take (steal) money with no exchange for it.  Some create money and don’t take full responsibility for it. Taking full responsibility for money is making sure no one takes any money you have created without your consent.

Taxation by a nation should be for the purpose of increasing money velocity and prosperity.  The tax money should be invested in programs that increase money velocity.  This would increase prosperity as well.  Taxation should be an agreed upon amount of money each person would exchange for government commodities, trades, goods and services.  This exchange for government commodities, trades, goods and  services is for the prosperity of the individual, family, organization, society and nation.

In an operating society and nation there should be a percentage of money set aside in taxes to exchange for operating a government.  A certain percentage of each person’s produced money would be exchanged for government commodities, trades, services and goods.  In a Producer Rewarded Open Market Economic System government would be minimized to keeping ethics in on the Producer Rewarded Open Market Economic System and to producing the products that are naturally monopoly products.  For more information on Government Production go to the article “Government Products and Services,” on http://youcreatemoney.com

The subtitles in this article are:

  • Introduction
  • The Money Velocity Cycle
  • Capital Producing Economics
  • Vampire Economics
  • The Goal of a Society
  • Open Market Economics
  •  Production Efficiency
  • Explosive Prosperity
  • Why Money Velocity Slows
  • Capital Consuming Economics
  • Producer or Non-producer?
  • Open Market
  • Pure Pro-survival Economics
  • A Greed Economic System
  • A Razor Thin Path
  • Prosperity for all.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
April 4, 1993
Rev: August 22, 2011

 

 

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

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