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.
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
Getting back to the attention wake or vacuum left behind us as we generate energy to be used in our production, it is important to secure our attention vacuum. This attention vacuum or wake leaves an opening for the non-producer to move in and steal the money, wealth and energy we the Producers create. Non-producers have lost their ability to produce energy that can be used in the production of goods and services. When they get into this wake or vacuum they can piggyback off us and steal the produced energy, money and wealth the Producers have created. They invest this stolen money energy to take over control of the political system.
The Producers have their attention and intention fixed on the action of production. Their attention and intention is placed into the future. They have left their attention vacuum unsecured. Producers are honest and trusting individuals. They believe everyone is honest and trusting. This is where they get into trouble with the non-producers. They have left in their attention wake or vacuum an opening for the non-producer. This non-producer occupies this wake or vacuum left behind by the Producer. The non-producer will tell any type of lie or smoke and mirrors to convince the Producer he (the non-producer) is honest and trusting. Usually the Producer discovers the non-producer very late. This is when the economic system starts to recede. Even then the non-producers flash their smoke and mirrors selecting the wrong target as the culprit. The non-producer will attempt to pin the economic failure on the Producers.
A major part of what has filled the vacuum is the rewarded non-producer political system which is operating and controlling the Producer Society. The Producers have made a major omission. They have failed to secure their attention vacuum, the vacuum side of their production thrust. Their wake or vacuum side can be secured by the Producers taking full responsibility for ALL the money, wealth and energy they have created. They can secure themselves by knowing and applying the pro-survival Producer Rewarded Open Market Economics technology along with the pro-survival Technology of Democracy. With their attention vacuum left unsecured, Producers have, many times in the past, been made into SLAVES.
Many people today have a very high dislike for government and politics. This is because the political system is a system owned and operated by the non-producer for the survival of the non-producer on the backs of the Producer. It should be stated more correctly; the political system, today, is a system owned and operated by the non-producer, for the destruction of the non-producer and the Producer. This is why people dislike the government and politics today. They don’t like to be lead down the non-producers’ path of destruction.
The following Axiom has been noted in the past: any time non-production is rewarded a society tends toward succumb. The corollary would be: any time production is rewarded a society tends toward survival.
It is very important to remember that the survival of every person on the planet is tied to all other individuals on the planet. We are all tied together economically. The Market and the trading of goods and services on the Market is what tie us together. Anytime anyone on planet earth places a demand for goods and services on the market it affects the value of all other goods and services. It also affects the value of all money throughout the world. Anytime anyone on the planet places newly created goods and services on the Market it affects the value of all other goods and service and the value of money. Anytime money is taken without an exchange of production for it, this out exchange action decreases money value and increases product value. The Producer loses purchasing power. The non-producer has stolen the Producers’ purchasing power. We are all connected economically whether we want to be connected or we don’t want to be connected.
If we all self-determinedly follow the natural laws of economics and politics we will all survive abundantly. When we allow non-producers in the economics system and the political system we will all tend downward toward succumb.
Anytime an Economic system is tending downward you can bet there are non-producers in the political power mix. Anytime a political system is frustrated and upset you can bet there are non-producers in power stealing wealth and energy from the Producers.
Man is basically a good and trusting being. Producers are basically good and trusting beings. It is unreal to the Producer that anyone would carryout the evil activities that non-producers are capable of carrying out. During a recession or a depression, when the Producer finally discovers the evil activities of the non-producer he/she has a deep economic hole out of which to crawl. First, the Producers have to find the correct cause of the economic recession. This is tough because the non-producers works 24/7 discrediting everything the Producers find as the cause of the economic problem. By the time the correct reason for the economic recession is found and enough Producers are convinced of it, they have a whole contra-survival political system to overcome and turn around to get back to the Technology of Democracy and Producer Rewarded Open Market Economics a Capital Producing System.
Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
February 22, 2012
I will start with the definition of Free Market; a Market in which prices are determined by the forces of supply and demand, without government regulations or restrictions. (Thorndike/Barnhart Dictionary)
The definition of Supply is; the quantity of any commodity in the market ready for purchase, especially at a given price. (Thorndike/Barnhart Dictionary)
Supply is the most important part of the definition of Free Market. Supply and Demand is; the interplay of the quantity of goods offered for sale at specified prices and the quantity of goods purchased at those prices in the Free Market. (Thorndike/Barnhart Dictionary)
There must be this interplay of goods offered for sale and goods purchased in order to have a Market of any kind. When Non-producers take money out of the Market without offering any supply in return for it they are really simply stealing the money and wealth from the Market and the Producers.
Examples of Non-production are, speculation on commodities, excess military spending, wars, farm subsidies, monopolies, corporate welfare, expanding the money supply by banks, any receiving of money without an exchange for it, or insufficient exchange for the money and any other form of welfare.
We will use speculation as an example of rewarding non-production. There are two types of speculators. There are speculators who buy commodities with the intent to take delivery and then take delivery of the commodities. They either consume the commodities or convert them into new products that they place on the Open Market and receive money in return.
Then there are speculators who buy shares in commodities with no intent to take any delivery of the items at all. They buy low and sell high. They are there to make money with no exchange in production for it. They simply offer no production in return for the money they take from the Market! They offer no supply in return for the money they take out of the Market. There was no intention to take possession of the commodities for their personal use or for use in future production. This violates Free Market principles to the extreme! There must always be Supply placed into the Market and it must be worthy of exchange for any money anyone takes out. These speculators who buy shares in commodities without taking possession of the commodities are rewarded Non-producers. They are stealing money by simply shuffling paper. This is not production. When they bid up the price of oil and sell it at a higher price, without taking possession of it or using it in future production, we the Producers pay a higher price for gas at the pump. The Non-producing speculators are taking the money from you with no exchange to you for the money.
The Producing speculators buy shares in commodities, take delivery of the commodity, convert it to new production and exchange the new product “supply” on the market for money. The non-producing speculators buy shares in commodities, do nothing with it and turn around and sell it at a higher price. This action of purchasing commodities with the purpose of buying low and selling high places a demand on the commodity and this demand causes the price to go up. When, for example this is done with oil, the price of oil rises causing the price of gas at the pump to go up. These rewarded non-producing speculators are taking your money with no exchange for it, to you or to the Market.
Supply, in the definition of Free Market, states explicitly that there must be goods and services placed on the Free Market in order to have a Market and in order to have a working Market. Since Non-producers don’t bring a “supply” to the Free Market they must not ever take any money, wealth and/or energy from it. This is a very important factor in the definition of Free Market. This Free Market they use today, and call a Free Market, is not the Free Market. The one thing, “supply,” that is expressly needed to have a Market is not strictly enforced. In fact in today’s world there is no “true Free Market” in existence. If people don’t bring a true supply, a good or a service, to the Market when receiving money, there is no Market. Exchanging supplies is what a Market is all about. If one comes to the Market with no supplies and demands money, he is not creating a Market. Without supplies, no exchange could possibly take place and therefore no Market could exist.
The Open Market is a Market in which prices are determined by the forces of supply and demand, without government regulations or restrictions. It is “open to all on equal terms” and restricted to the participation of producers only. Only producers can create and construct a Market. Non-producers cannot create and construct a Market; they can only destroy and destruct a Market.
The Open Market, “open to all on equal terms,” is similar to the Free Market which we see being “attempted” to be used today. The Free Market is based upon the dynamics (forces) of supply and demand as is the Open Market. They both are based on being free from government regulation and restriction.
The reason I say, the Free Market is being “attempted to be used today,” is because the non-producers continue to destroy the Market while the Producers work to create it. It is not a Free Market in the sense that everyone must place a “supply” on it in order to receive money. The definition of freedom used in the Free Market is, “anything goes in this Market,” which includes the destructive forces of the Non-producer.
The Free Market is attempted to be used today because the Producers are attempting to create a Market while the Non-producers work in destroying it. The most the Producers can do is attempt to create the Free Market. As the Producers build the Market up, the non-producers tear it down.
The Free Market does not give equal access! It is the opposite of equal access. The Non-producers have access to steal the money and wealth with no supply (goods and services) required in exchange for the money. The Producers are required to provide supply (goods and services) in exchange for their money. Equal access means; in order to receive money, you must always exchange supply, “a good or service,” for the money without any special advantages. Non-producers don’t do that. They work, 24/7, developing schemes to take money, wealth and energy from the Market without exchanging “supplied” goods and services for it. The Non-producer out-exchange actions destroy the Market, the Society, the Nation, themselves and their families. The Non-producers, like vampires and parasites suck the energy out of the Society and the Nation. On the other hand the Producers, create the energy for a Society and a Nation to survive with. This created energy, by the Producers, is what gives a Nation its power and strength.
Non-producers can only do one thing when participating in a Market and that is destroy it. The “Free Market” is in a constant struggle to survive when the Non-producers continue to steal the money and wealth from it with little or no “supplies” exchanged for it. The Free Market is constantly attempting to be used by the Producers in the society and these attempts continue to be beaten back by out-exchange Non-producers.
With these constant destructive thrusts, by the Non-producers, to destroy the Free Market, one could only conclude, their purpose is to destroy the Free Market. This continued destruction of the Free Market leads to the destruction of the Society, the Nation, themselves and their families. This destruction of the Market is an observed phenomenon in societies where non-producers are allowed to participate in the Market.
Producer Rewarded Open Market Economics
By RP Obrigewitsch
October 12, 2011
Revised October 14, 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