services
4. Production, Exchange Value and Money
This is the third set of Axioms in the Axioms of Economics. This is the Production, Exchange Value and Money set. This set includes 5 sections of Axioms. The five sections include Axioms in the Economics Equation section; the Definition of a Producer section; the Exchange Value section; The Relationship of Production and Money section; and The Relationship of Production to Goods and Services section.
There are 22 Axioms in the Production, Exchange Value and Money set.
The Axioms in this set give the Economic Equation on how production comes about. The Producer is defined. There are Axioms related to the relationship of production to goods and services and how production and money are related.
Economic Equation:
50. Economics reduces down to one basic, that basic is production.
Postulate + Space + Energy + Matter + Directed Doing = Production. This is the Economic Equation.
Postulate: A thing or idea suggested or assumed to be true as the basis for reasoning, discussion, belief or for furthering production activities. Reference: New Oxford American Dictionary.
51. Economics is the Science of energy.
52. Energy is generated or created during the process of production.
Definition of a Producer:
53. A Producer is an individual who:
A. Creates a good or a service.
B. The good or service must be needed and wanted.
C. The good or service must be marketed on the Open Market, open to all on equal terms.
D. The good or service must not harm the survival of the individual, family, society, mankind and/or the environment.
54. Producers are the main beams, support structures and backbone of a family, society, nation, mankind and the environment. The survival of the individuals, families, societies, nations, mankind and the environment rests on the backs of the Producers.
55. Producers postulate and project into the future. They estimate the future needs and wants of individuals, families, societies, nations, mankind and the environment. They postulate, estimate and evaluate future pro-survival goods and services.
Postulate: A thing or idea suggested or assumed to be true as the basis for reasoning, discussion, belief or for furthering production activities. Reference: New Oxford American Dictionary.
A postulate is the first step leading to all the doing that is put forth by the Producer during the creation of goods and services. The first step is to establish a postulate; then space is created where energy is generated and where mental mass is created. In this space is where doing is performed using self generated energy to create a mock-up of a model of the postulated product or service. The next step is to use self generated energy to transfer this model into the physical universe as the postulated good or service.
56. Producers mock up models of their future production. They mock up these models in their personal mental space. They then transfer these mockups into the physical universe during the process of production. The result is a final produced product.
57. Producers generate energy. They convert this energy into money, value, wealth, capital and power through the action of production.
Exchange Value:
58. Exchange value is created through the production of goods and services.
59. Exchange value is represented by a money symbol. The money symbol is in the form of coin, gold, paper, shells, beads, etc.
60. Exchange value is the part of money that gives money power.
Production and Money, The Relationship of:
61. The act of creating money is a group function.
62. It takes Producers, working together in creating goods and services and trading these goods and services on an Open Market, to create money.
63. Production rate and production quality determines the value of each money unit and the value of the money supply as a whole.
Corollary 1: Value, that money represents, is being continually created, day after day, by the Producers through production rate and production quality.
Corollary 2: When production increases the supply of quality goods and services on the Open Market, the value of these goods and services decreases due to decreased demand.
This increases the value of money. With the value of goods and services decreasing, each money unit can purchase more products.
Corollary 3: A low supply of quality goods and services on the Open Market will increase the value of these goods and services due to increased demand.
This decreases the value of money. It takes more money units to purchase these goods and services.
Corollary 4: The value of goods and services relates inversely to the value of money.
As the value of goods and services increases it takes more money units needed to purchase these goods and services. Each money unit has less value.
As the value of goods and services decreases it takes less money units to purchase these goods and services. Each money unit now has more value.
Corollary 5: As production rates increase, money increases in value.
When the Market is flooded with goods and services their value drops because of lower demand. Now a money unit purchases more goods and services so it has more value and also more power.
Corollary 6: As production rates decrease, money decreases in value.
When there is a shortage of goods and services on the Market their value increases because of higher demand. Here money units purchase fewer goods and services per money unit. Money now has less value and less power.
Corollary 7: The value of money is directly related to production rate.
Corollary 8: The value of money fluctuates with the level of production backing it.
64. A Nation with a high money value is a Nation with a high production rate. Conversely; a Nation with a low money value is a Nation with a low production rate.
65. A Nation with a high production rate is a Nation with a high money value and great wealth, energy, capital and power.
The Relationship of Production to Goods and Services:
66. Production is always being exchanged for production with or without money as a medium of exchange.
67. Production rate determines the value of goods and services.
68. The value of goods and services is inversely related to the level of production where demand is present.
As the level of production decreases, the value of goods and services tends to increase in a demand Market. Conversely, as the level of production increases, the value of goods and services tend to decrease in a demand Market.
69. Production level is always directly related to the value and demand for this production.
70. Demand generates the value for each good and service.
71. As demand increases for goods and services the value of the demanded goods and services increases.
This, increased product value, attracts the attention of Producers. Effort forces and postulates are generated by Producers. The Producers use postulates to direct these effort forces, increasing production rates for these demanded goods and services.
6. Review
An Economic System is really and exclusively made up of Producers. The Producers create the Economic System and operate it. They create the survival and prosperity for the societies. Any non-producer or counter-producer activity is destructive to Economic Systems. The non-producers and counter-producers destroy survival and prosperity for themselves, Producers and societies.
Producers are in or inside the workings of a pro-survival economic system. They create and generate the energy for the economic system. They give it life and survival. They apply the rules of a pro-survival 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 follow or use pro-survival rules or laws in economics. Economic systems with the presence of non-producers and counter-produces are Deflating Systems. These economic systems sink into recessions and depressions. The non-producers and counter-producers take the life and survival 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 goods and services.
Second: The people in the group need and want each others goods and services.
Third: At first these 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 goods and services.
Fifth: It became apparent that a symbol was needed to represent the exchange value of the 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 goods and services on the Open Market.
Seventh: This symbol represents the exchange value of 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 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 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 or money energy away from the Producers without an exchange returned for it. A Constant Money Supply prevents the non-producer/counter-producer from stealing the value and energy away from the economic system and from the Producers of the value and energy.
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 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, societies, nations, mankind and the environment to prosper and survive.
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 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 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 goods and services and marketing these 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/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 pro-survival levels. Unfortunately the non-producer/counter-producers continued to follow along, covertly and overtly, developing counter-survival methods used to steal the money value and money energy 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 pro-survival 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 pro-survival 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 survival. 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
3. Medium of Exchange
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 from 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 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 good or a service. Competition among goods and services on the Open Market, propelled by the forces of demand, establishes the importance, worth or usefulness of each good and service. The needs and wants, placed in terms of demand, thrust forth by the Producers, establish the importance, worth or usefulness of goods and services. Competition on the Open Market along with the demands of the Producers gives 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 a pro-survival energy force. This force gives the Open Market its life. The Open Market is like a living entity driven by the demand energy created by the Producers.
You could say the Open Market is like a living entity. The Open Market gets its survival energy from the Producers. This survival energy comes from 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 goods and services on the Open Market and then generating demand energy which they use to direct the competition among goods and services. Producers put life into the Open Market.
Counter-producers and non-producers produce a counter-survival type of energy. Their energy flow is reversed. It flows from survival energy toward counter-survival energy. One could say Producer energy is pro-survival or positive energy. You could say non-producer/counter-producer energy is counter-survival, succumb or negative energy. When non-producer/counter-producers enter into an Open Market they cause energy to flow from pro-survival (positive) energy to counter-survival (succumb or negative) energy. They pull survival energy out of the Open Market. They pull the market into recessions and depressions. They pull the life out of the Open Market. They suck the energy out of the 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/counter-producer enters into an Open Market they place their negative demand force on the Market. They take goods and services out of the Market without exchanging their produced 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, societies, nations, mankind and the environment of energy. It brings about a state of economic decline and puts Producers, families, societies, nations, mankind and environments on a path toward succumb.
There is only one true Market. That true Market is the Open Market, open to all on equal terms. Whenever non-producer/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 from survival to succumb. When we have a true or very close to true Open Market the energy is converted from succumb to survive. We are in a constant battle between succumbing and surviving. It is very important to maintain a Market where energy is flowing into the Market.
The Standardized money unit is the constant unit of measure that represents the production value and Producer generated energy. The Producer generated energy is used in production creations.
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 on the Open Market. Money received by expanding the money supply without placing production on the Market causes a negative energy flow across the Market. In this case the energy flow in the Market is from survive to succumb. The individuals, families, societies, mankind and environment are on the path toward succumbing. Expanding money supplies destroy Open Markets.
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 de-standardized; 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 survival from the Producers by expanding the money supply. There is a belief that money supplies must be expanded to maintain economic survival. When Producers and only Producers of the money are rewarded, money supplies can be held constant and the economic systems move toward more survival. 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 goods and services on the Market.
When money came into existence, money added a step in the exchanging of goods and services on the Open Market. Instead of exchanging goods and services directly for other goods and services, the goods and services were first exchanged for money. The value of the goods and services was transferred to the money unit. The money unit was then used to exchange for other goods and services. Value contained in the money unit was then transferred to another Producer for his/her goods and services. This is when the money unit became the standardized measure for the value of 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 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 goods and services. The concept of a money unit came into existence to act as an intermediate step during the exchange of goods and services.
Goods and services must be exchanged on the Open Market in order to determine the correct production value of each good and service. When 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 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 goods and services exchanged on the Open Market be correct.
Rewarding non-production and counter-production places more money in circulation in relation to goods and services on the Market. This leads to fewer 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 goods and services on the Market. When money is given to non-producers and counter-producers they are taking money without placing goods and services or without placing pro-survival 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 goods and services on the market, thus de-valueing the money units. Inflation is the result of having fewer goods and services on the Open Market in relation to money units in circulation.
In conclusion; during Marketing, value is transferred from 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 Producer’s 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
2. Production and Prosperity
Producer Rewarded Open Market Economics
The Science of Economics
Production and Prosperity
By R P Obrigewitsch
June 14, 2012
Production is the basic thrust of all mankind toward prosperity. Production and prosperity go hand in hand. Production by the Producer creates or generates prosperity. Production enhances the prosperity of the Producer. Production increases the Producers ability to exist. The prosperity thrust of the individual demands production take place to forward the individual in his quest to exist. This production has exchange value. This exchange value is determined or generated by the needs and wants (demand) of each producer in the societies. This exchange value is found to be inherent in what the individuals of each society have agreed to be defined as “their” money unit.
We will examine how money is created through production. If one person produces milk, another person produces eggs, another produces coats, another produces computers and another producers cars. We then have these people producing in their specialties. Each of these Producers needs and wants (demands) the production created by the other Producers. Each Producer needs and wants (demands) the production of other Producers for his or her prosperity, consumption or esthetic admiration and/or pleasure.
Producers have developed a system of exchange among themselves to accommodate their demands for each others production. At first a barter system was set up where producers traded goods and services with each other based on the value they assigned to each good and/or service. The value was generated by the amount of goods and services available in respect to the demands for the goods or services. If there was an abundant supply of a specific good and the need was low for it, the demand was low. A low demand would give a lower value for that good. If there was a low supply of a specific good or service and the need for it was high, the demand would be high. A high demand would give a high value for that good.
From this working together of need, demand and supply, the Producers worked out an exchange ratio among all goods and services on the Market. This ratio is the exchange quantity relationship among all goods and services on the Market showing the number of times the value of one good or service is contained within the other goods and services on the Market. This is called the exchange rate.
We may find one hundred dozen eggs being traded for one coat, two dozen eggs being traded for on gallon of milk, fifty gallons of milk being traded for one coat, five hundred dozen eggs being traded for one computer, two hundred gallons of milk being traded for one computer or ten computers being traded for one car, etc. These are the trading ratios which are being used by the Producers to achieve equity in product value when trading their products directly. These ratios have established exchange value in terms of one product to another.
From this information or data it can be deduced that products have exchange value, generated by demand from Producers, which can be defined in terms of all other products. In fact, all products created by Producers, throughout mankind, have exchange value which can be defined in terms of each other.
For example; one dozen eggs is equal in value to one/one hundred (1/100) of a coat. One coat is defined to equal one hundred (100) dozen eggs in value. One car is defined to equal one hundred (100) coats or ten thousand (10,000) dozen eggs or five thousand (5,000) gallons of milk or ten (10) computers. We could define the exchange value of all production based on each product and determine how to exchange goods and services based on that specific product. The selected product could be dozens of eggs. We could determine the exchange rate of all products based on the value of dozens of eggs. As we can see this would be very unworkable. The egg production would go wild. Everyone would be growing eggs as a short cut to having money. This would lead to a constantly expanding medium of exchange (eggs) and a collapsed economic system.
Do you see how the value of goods and services is determined on the Open Market? One could go on and complete tables and tables defining the exchange value of each product produced by all members of mankind in terms of all other products produced by all of Mankind. This becomes a very, very bulky and unworkable system. We need some sort of simplification and standardization here.
1.6 Why Money Velocity Slows Down?
We are talking about money velocity here. Money velocity is the flow of survival energy that flows throughout a society. Money is a symbol that represents production value and production energy. In this article we will look at money as a “symbol of production energy.” Production energy is the survival energy for an individual, family, a society and mankind. In a society, money velocity increases and decreases depending on the production level and on the Producers pay or reward for their production. When rewarded production increases, money velocity increases. When production decreases, money velocity decreases. When production increases and the Producer is not rewarded for creating the production, money velocity decreases. When rewarding non-producers increases, money velocity decreases. Money velocity is the rate at which money changes hands in a society. Money velocity is the rate at which money energy flows through a society. The faster the rate of money energy flow, the more prosperity there is in a society.
- AXIOM 151: Money velocity is the rate at which money changes hands while being exchanged on the Open Market for products (goods and services.)
- AXIOM 151.1: As the flow of money energy increases through the hands of the people in the society when buying and selling products (goods and services), their affluence level increases.
- AXIOM 152: Increased production efficiency increases money velocity.
Early in the research and writing of Producer Rewarded Open Market Economics there has been much attention placed on the rewarded non-producers and the catastrophes caused by rewarding non-producers. As we move into the future and a great enough awareness has been made to the point of not allowing non-producers to have money without an exchange for it in production, we will work on perfecting the Producer Rewarded Open Market Economic System. We will work at perfecting the Producer Rewarded Open Market Economic System with, the purpose of having, a tremendous survival potential for all individuals, societies, mankind and the environment.
Other than natural and/or “God” given causes, the only reason why money velocity slows down and societies find themselves in recessions, depressions and chronic depression stems from and only from rewarding non-producers. This is the action of giving money to non-producers who place no production or not enough production on the Open Market in exchange for the money. The action of rewarding non-producers is giving production or survival energy to non-producers who place no or not enough production on the Open Market in exchange for this energy. The action of placing money (production or survival) energy into the hands of non-producers brings about the destruction of money and energy. This destruction of money and energy slows money and energy velocity rates in a society. Recessions and depressions expand and grow deeper as rates of money and energy velocity slow down.
This type of economic practice is classified as Capital Destroying Economics. Capital Destroying Economics is the contra-survival part of Capitalism. Remember there are two classifications of Capitalism. There is the pro-survival classification and that is Producer Rewarded Open Market Economics, The Science of Economics. There is also the contra-survival or succumb classification of Capitalism and that is Capital Destroying Economics. In the past, Capital Destroying Economics had another name. Capital Destroying Economics was formerly called Capital Consuming Economics. The Capital Destroying Economics sub-classification of Capitalism has been changed from Capital Consuming Economics to Capital Destroying Economics. The reason, I changed the name from Capital Consuming Economics to Capital Destroying Economics, was because rewarding non-production literally destroys money, wealth and money energy. This destruction brings about the destruction of Producing individuals, families, societies, nations, mankind and the environment.
On inspection we find Communism, Fascism as well as the contra-survival classification of Capitalism falling into the Capital Destroying Economics classification.
This contra-survival classification of Capitalism, where wealth is concentrated with its power and influence in the hands of a few non-producers, causes undue hardship and suffering.
Communism and Fascism are also contra-survival systems of economics. These two systems also concentrate wealth with its power and influence into the hands of a few non-producers. This activity leads to undue hardships and suffering.
What do these three contra-survival economic systems have in common? The have a money velocity that is flowing very slowly. Their citizens are living under undue hardship and suffering. They are mired in prolonged economic depressions.
We find, in the above three systems, the few powerful non-producers (where the money, power and influence is concentrated) tend to be in hiding. We find these rewarded non-producers in hiding. They hide, grab and hold onto the money, wealth and money energy. They grab and hold onto material objects (Materialism.) They become the money and objects they worship. They become their expensive cars, boats, airplanes, houses and other material objects. It could be said, “These rewarded non-producers are hiding in or as their objects!” Being objects is a very low tone to be in. Hiding is a very low tone, but being objects is lower. They hide grab and hold. Their purpose is to stop the flow of money energy. They have a tremendous negative effect on money velocity and survival in their societies.
These rewarded non-producers are hard to spot. They hide, grab and hold onto money energy, production energy and survival energy. They will never stand up and admit their true purpose. Instead they will hide behind other issues such as abortion, gay rights and “create” enemies of the state to take attention off their real purpose. They will argue issues such as abortion and gay rights but, when they get to power they will not handle these issues, when they have the power to do so. When in political power they will concentrate their attention on grabbing and holding more money energy. They will use the enemies they “create” to promote war. War is another means for the non-producers to transfer more money energy, survival energy and production energy from the Producers, of the energy, to the non-producers.
We find long recessions, depressions and a slowed money energy velocity caused by moving wealth from Producers who create it into the hands of a few powerful non-producers who have not created it.
There are tools to determine: What is production and what is non-production? Who are the Producers? Who are the non-producers? There are tools to determine whether we are Capital Producers or Capital Destroyers.
What is a Product?
A good or a service is classified as a Product when it:
A. is marketed on The Open Market (open to all on equal terms,)
B. is needed and wanted and
C. does not harm the individual, family, society, mankind and/or environment.
Or it can be more fully explained by saying, “it causes the greatest good to the greatest number of people or dynamics.” Another way of saying it is, “it causes the least harm to the greatest number of people or dynamics.”
Definition of dynamics: Dynamics are, of or having to do with, energy or forces in motion. Here we are applying the term dynamics to all the energy and forces involved during the activity of survival by the individual, the family, the society, mankind and the environment.
DEFINITION OF A PRODUCER:
AXIOM 23: A Producer is a person who:
- A. Creates a good or a service, classified as a Product,
- B. The good or service must be needed and wanted,
- C. The good or service must be marketed on the Open
Market (open to all upon equal terms) and
- D. It must enhance or should not destroy the survival
of the individual, family, society, mankind and/or
the environment.
AXIOM 24: Producers are the main beams, support structure and
back bone of a society and a Nation. The survival of a
Nation rests upon the backs of the Producers.
There is only one way to achieve optimum money velocity and be a Capital Producer and that is to reward the Producers of production. There are many, many ways to place a drag on money velocity and, other than natural causes; they all come down to rewarding non-production. These non-producers are the destroyers of capital.
We can use the Technology in Producer Rewarded Open Market Economics to create and expand our pro-survival economic system on this planet. In the past we have been subject to the grab and hold (hoarders) running our economic systems. This has always slowed money velocity bringing about recessions, depressions and wars. The Producers have always sought to produce energy, money and wealth. The Producers have always sought to increase the money energy velocity. They have sought ways to make sure everyone who produced received their production value and production energy in return or in exchange, in money units, for what they have created.
As Producers, we can move forward with confidence, knowing what we are doing is correct and very right! We can confidently move forward producing survival and energy for ourselves, our families, our societies, our nations, for mankind and for our environments.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 4, 2012
1.7 Free Market Construct
The Free Market Construct will give you the contrast with the Open Market Construct. The Open Market is governed by exact pro-survival technology. The Free Market has very little if any pro-survival technology. The little it has in pro-survival technology is being violated to the extreme. The Free Market has been taken over largely by rewarded non-producers. They sit on the demand side of the definition of the Free Market and take and take money, wealth and energy without placing supply on the market for the money. The rewarded non-producers continually drain the society and mankind of the money, wealth and energy. This money, wealth and energy is created and produced by the Producers.
It is very important to remember that the Free Market is a Market. It works like any Market. It is always working 24/7 in establishing the value for all goods and services placed on it. Even when non-producers take money without placing supply, goods and services, on the Market the Market sets value. However the value of these goods and services gets raised to higher levels than they would be. This is because non-producers make demands without balancing them with supply. Now 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, by allowing monopolies and all other ways a non-producer can dream up and use to take money, wealth and energy off the market without exchange for it with supply, goods and services.
- Technically speaking the Free Market should not be open to non-producers. The definition of Free Market “strictly” implies that goods and services must be supplied in order to demand or take money from the Market. Supply, “in supply and demand,” implies goods and services. Goods and services must be placed on the Market in exchange for any money received. Then the money can be used to place a demand on the Market for other items.
- Non-producers use half of the Free Market definition. They use the demand side of the Free Market definition. They leave out the supply side, or fix and, or control the supply side to their advantage.
- The non-producers enter into the Free Market and take money, wealth and energy from it without a product exchanged for it. This is catastrophic for a society, a nation and mankind and for that matter all life and the environment! Today in 2011 we are experiencing the result of this activity, on the Free Market, by non-producers. We are mired in a world wide deep 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 can control the supply and demand so that they have the advantage of receiving more money than what their products are worth.
- The Free Market doesn’t prevent people from taking a non-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 participation where the FreeMarket allows for non-producer participation.” Non-producers have wrecked many a society and nation by being allowed to participate without exchange for the money, wealth and energy they receive.
- Non-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; a non-producer whether rich or poor is a non-producer and a heavy liability for the society, the nation and mankind!
Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch
December 19, 2011
1.5 Free Market, Non-existent!
The Free Market today is almost non-existent. It is buried beneath all the destructive schemes, dreamed up by non-producers in their effort to take money without an exchange for it. The Market is there working like it should be working, establishing value for goods and services that get placed on the market. However, the market is covered in a shroud of unethical, immoral, and lawless schemes.
This shroud is composed of monopolies, government sanctioned monopolies, schemes of speculation that involve no production, government subsidies, welfare for the rich and the poor, massively over allocated military spending, people who hold positions and do not produce at all or produce less than the money value received in pay, other massively wasteful government programs, people in power receiving huge amounts of money with no or not enough production in exchange for it, illegal drug trade and excessive unneeded legal drug trade.
The shroud includes most governments, if not all governments on earth, sitting in a position of power, redistributing the money, wealth and energy away from the Producers and placing it into the hands of non-producers. Communism, Fascism, Right Wingism and Left Wingism have as their central thrust to redistribute the money, wealth and energy of a nation into the hands of non-producers. When you study the Market you will see through this shroud and see the Free Market working. It is a Market, after all, and “all Markets have supply and demand forces at work establishing the value for all goods and services on the Market!”
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
December 4, 2011
1.3 Market Action
The action of establishing the value for goods and services on the Market is happening continuously twenty four hours a day. This action takes place on all Markets whether Open Markets or not. It is an inherent action; as long as there are producers, producing goods and services and exchanging them with each other, this Market force is at work. It is a force working to establish the prices even with all the destructive out exchange taking place on the Market by the rewarded non-producers. This force is always at work in the Market. This is a natural force found in nature.
Even with all the muddle and confusion created by the non-producers, in their destructive efforts to steal money, wealth and energy from the Market with no or not enough production exchanged for it, this phenomenon is taking place. Of course the value of goods and services gets placed incorrectly, usually higher than it would be.
When non-producers, as they become producers, place their created goods and services on the Market in exchange for the money they take, prices will drop in relation to the increased volume of goods and services present. As production volume increases, demand tends to drop off and prices drop as a result. Rewarding non-production causes prices to rise because the volume of goods and services is lower from non-producers exchanging little or no goods and services for the money they receive. This causes demand to rise and prices follow along.
The Market has a directed effort to set the value for goods and services that are competing with each other. The Market forces take place “anywhere at anytime” producers create a Market by exchanging goods and services with each other or for money.
Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
December 4, 2011
1.1 The Money Velocity Cycle
We are going to start with the definition of Velocity (Thorndike Barnhart, World Book Dictionary.)
Velocity: N. 1. Quickness of motion; speed; swiftness; rapidity. 2. rate of motion in a particular direction. 3. the absolute or relative rate of operation of action. Adj. of or having to do with the rapidity of rate of motion or action: velocity ratio.
Derivation [< Latin Velocitas < Velox, Ocis Swift]
The following three Axioms will cover money relating to how money has velocity. I have discussed earlier that money is a symbol. It is a symbol that represents value which is created by you the producer of goods and services. It is also a symbol that represents energy. This is the energy you create or generate and convert into goods and services as you create them. Therefore, money is a symbol, it represents the value of goods and services you have created and marketed on the Open Market. Money, you receive in exchange for the created goods and services you place on the Open Market, also represents the energy you create and convert into goods and services.
I am going to be talking about this energy as it flows throughout the society and mankind. All people are connected together through this energy. If a person is alive, no matter how much or how little, they have money energy flowing through them. Only when they are dead does money energy cease to flow through them.
- Axiom 151: Money velocity is the rate at which money changes hands while being exchanged on the Open Market for goods and services.
- Axiom 151.1: As money velocity increases while flowing through the hands of the people in the society, when buying and selling goods and services on the Open Market, their affluence level increases.
- There is a corollary (corollary 1) to this Axiom: As money velocity decreases while flowing through the hands of the people in the society, when buying and selling goods and services on the Open Market, their affluence level decreases.
- Axiom 152: Increased production efficiency increases money velocity.
- When people get more efficient in production, they produce and place more goods and services on the Open Market in a given period of time. With more goods and services entering the Open Market in a given period of time, more money changes hands over that period of time. Here we see money velocity increase, which in turn increases prosperity.
The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society. In a non-producer rewarded society this cycle dies as does the society. The American Indian societies, as they were known, died out because their ability to produce was shut down due to the intrusion of Immigrants across the Indians production territory. Their money velocity decreased as their production levels dropped. The Indians used money in the form of shells, beads etc. They also used a barter system. The use of a barter system also has velocity, it is called barter velocity.
We find the frequency of the money velocity cycle increase and decrease depending on the production level and producer pay or reward in the society. If the money velocity cycle speeds up, the society becomes more affluent. If the money velocity cycle slows down, the society becomes less affluent.
Money velocity gets its rates of motion from the level of production occurring in the society and the producers receiving all the money they have created in producing goods and services. When producers receive more money than they have created in their production they are receiving money that has been created by other producers. This causes a decrease in money velocity and prosperity in their society. When producers are paid less than their production is worth money velocity and prosperity in that society will decrease. When producers are paid their
productions worth, in money units, money velocity and prosperity are optimum.
During the first part of the money velocity cycle, goods and services flow to the Open Market in exchange for money taken off the Open Market by producers. During the second part of the money velocity cycle, money flows to the Open Market in exchange for goods and services taken off the Open Market by producers. There is a continuous and varying velocity flow of money and goods and services to and from the Open Market.
The best way to get the optimum (best or most favorable) rate of motion in money velocity is to pay, reward, only those people who have produced and placed goods or services on the Open Market.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev. August 22, 2011
1.0 Money Velocity and Prosperity
Introduction
This article addresses how rapidly money changes hands in a society and how rapidly it passes through the hands of all mankind. This article is long with many subheadings.
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 volume than they have created. As a result, we find many, many people who are shorted the volume of money-energy 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 societies and mankind.
Some people don’t like to deal with money. Some believe money is evil. Some people work creating contra-survival energy to use 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. There is an agreed amount of money each person would exchange for government products and services. This exchange for government products and services is for the survival of the individual, the family and the society.
There would be a percentage of money used to exchange for operating a government. Maybe 10 or at most 15 percent of each persons produced money-energy would be exchanged for government 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
Axioms of Economics
Constant Money Supply
Money Velocity and Prosperity
- 1.0 Money Velocity and Prosperity
- 1.1 The Money Velocity Cycle
- 1.2 Capital Producing Economics
- 1.3 Vampire Economics
- 1.4 The Goal of a Society
- 1.5 Production Efficiency
- 1.6 Why Money Velocity Slows Down?
- 1.7 Capital Destroying Economics
- 1.8 Producer, Non-producer or Counter-producer?
- 1.9 Razor Thin Path
