You Create Money

A Producer Rewarded Economic System

4.9 Producer Rewarded Open Market Economics

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Producer Rewarded Open Market Economics is the Economic System that rewards the Producers. The Producers are the individuals who create all the money, value, energy, wealth, capital, power and prosperity that exists on this Planet.

Producer Rewarded Open Market Economics is the Economic System where the Market is open to all Producers on equal terms. Only Producers are allowed to participate in the Open Market.

Non-producers and counter-producers are on the outside of all Markets. When they attempt to participate in any Market they destroy the Market and the Economic System. They are on the outside of all Markets by their choice. Only individuals who bring self-created commodities, trades, goods and services to a Market can really participate in that Market. They are the energy thrust in the Market. They are the propulsion that makes Markets operate. All Markets are driven by Producer Propulsion.

Producers bring energy into Markets. They bring life into Markets. They bring energy into Markets by exchanging the correct amount of commodities, trades, goods and service on the Market for the Money, value, energy, wealth, capital, power and prosperity they receive.

Non-producers and counter-producers drain or steal energy from Markets. They bring death to Markets. They destroy Producer Propulsion in Markets. When you find Markets collapsing you will find non-producers and counter-producers taking money, value, energy, wealth, capital and power away from the Market. They take it without exchanging the correct amount of commodities, trades, goods or services for it.

Producer Rewarded Open Market Economics is the Economic System where the Money Supply is held constant. A Constant Money Supply standardizes an Economic System. This gives stability and confidence to the Producers. Expanding a money supply is another way for non-producers and counter-producers to steal money, value, energy, wealth, capital, power and prosperity without exchanging commodities, trades, goods or services for it.

Distributing the money, value, energy, wealth, capital and power to producing individuals, based on production, in an organization and in a society leads to very prosperous individuals, organizations, societies and nations. This principle is found in the Capital Producing System of Capitalism. This principle is also found in the Capital Producing System of Socialism. Capital Producing Capitalism and Capital Producing Socialism are Producer Rewarded Open Market Economics systems.  In both systems: The Producers receive all the money, value, energy, wealth, capital and power they have created.

Distributing the money, value, energy, wealth, capital and power to the Producers gives incentive to Producers to create more pro-prosperity commodities, trades, goods and services. This system gives disincentive for non-producers to not produce.

This system gets the non-producers out of the static state of non-production and into the action state of production. It also gives disincentive for counter-producers to create counter-production creations. This system gets the counter-producers out of the counter-producer state of counter-production and into the action state of production. It gives counter-producers and non-producers incentive to become part of the Producing group of individuals.

The producing group of individuals is the individuals who create all the money, value, energy, wealth, capital, power and prosperity. Distributing money, value, energy, wealth, capital and power to the Producers gives the non-producers and the counter-producers an incentive to become Producers. This system of economics that rewards production is Producer Rewarded Open Market Economics.

3.4 Capital Destroying; Capitalism and Socialism

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In this article Capital Destroying; Capitalism and Socialism we are talking about the types of Capitalism and Socialism where money, value, energy, wealth, capital and power are destroyed.  This is as apposed to Capital Producing; Capitalism and Socialism.  In Capital Producing; Capitalism and Socialism money, value, energy, wealth, capital and power are created.

Socialism is more of a Group function. Capitalism is more of a Self function.  Socialism emphasizes the Group.  Capitalism emphasizes the individual, the Self. 

Neither one of these economic systems can survive without the other.  An economic system such as Capital Destroying Capitalism that emphasizes the individual independent of a group cannot function well on its own.  It cannot function and create prosperity without the individuals working together in social groups. Capital Destroying Capitalism cannot function well and create prosperity without rewarding the individual Producers in proportion to their production levels.  When the Producers work together in social groups and are rewarded correctly for their production the system becomes a Capital Producing Capitalist Economic system.  In Capital Producing Capitalism money, value, energy, wealth, capital, and power are created.  For all who produce, prosperity is attainable, in the Capital Producing Capitalist system.

An economic system such as Capital Destroying Socialism that emphasizes the group independent from the individual cannot function well on its own.  It cannot function and create prosperity by distributing the money, value, energy, wealth, capital and power equally among all members of the group.  This penalizes the Producers and rewards the non-producers and counter-producers.  Capital Destroying Socialism cannot function well and create prosperity without rewarding the individual Producers in proportion to their production levels.  When the Producers are rewarded for their production in a socialist system we have Capital Producing Socialism.  In Capital Producing Socialism money, value, energy, wealth, capital and power are created.  Prosperity is also attainable for those who produce in Capital Producing Socialist economic systems

We could say Socialism is a Group function and Capitalism is a Self function. Capitalism, the Self function, depends on the Group function in order to achieve prosperity.  Socialism, the Group function, depends on the Self function in order to achieve prosperity. 

The Capital Destroying Capitalist while functioning on the Self drive only is trying to gain prosperity by excluding the Group function.  This brings about a counter prosperous condition in the Self, Group, Society and Nation.

The Capital Destroying Socialist, while functioning on the Group drive only is trying to prosper by excluding the Self function.  This brings about a counter-prosperous condition in the Self, Group, Society and Nation.

Both the Capital Destroying Capitalist and the Capital Destroying Socialist are attempting to prosper through counter prosperous methods.  Both of these systems are taking the money, value, energy, wealth, capital and power produced by the working and laboring Producers and giving it to non-producers and counter-producers.  This is how the Capital Destroying Capitalist and the Capital Destroying Socialist are trying to prosper.  They are trying to prosper through counter-production rewarding or counter-prosperity methods.

Money, value, energy, wealth, capital and power are created in both the Capital Producing Capitalist and Capital Producing Socialist systems.  In both systems when the Producers of the money, value, energy, wealth, capital and power are rewarded for their production we have a prosperous system operating.  In both systems when the non-producers and counter-producers are rewarded we have a counter prosperous system operating.  Economic systems where non-production and counter-production is rewarded tend to recede into depressions.

Producer Rewarded Open Market Economics
The Science of Economics
By R P Obrigewitsch

2.6 True Wealth! Part 2

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Introduction

True Wealth Part 2 is a continuation of the concept of True Wealth, what it is.  True Wealth is bringing prosperity to family, organization, society, nation, Mankind and environments while achieving prosperity for self. 

 Prosperity is a state of doing well.  It is a state of doing well for self and the other six entities listed above. 

 To prosper is to succeed in material terms; be financially successful.  It also is to flourish physically; grow strong and healthy.  This applies to self while self is creating prosperity for family, organization, society, nation, Mankind and environments.  This is real True Wealth!  When an individual can create prosperity in all seven of his entities he has achieved True Wealth and prosperity.

Environments

We can apply the above technology on achieving true wealth to all individuals, groups, organizations, societies,Spring flowers 2013 012 nations, mankind and environments. 

We include environments in this Economics Technology because environments are very much like living entities.  Raw materials are created through the resources of environments.  Exchanges must be made back into environments to maintain them in a healthy prosperous state so they can supply raw materials for future production. 

All waste products must be cleaned up to maintain a prosperous environment.  Environments must be maintained in healthy productive states free from all pollutants, and toxic substances.  All life depends on a clean healthy environment.  Producers in a producing organization depend on a clean healthy environment to maintain their production levels.  Future production and prosperity depend on clean healthy environments. 

Spring flowers 2013 005 Clean healthy environments give future to all living organisms.  It is a counter-productive act for an individual to take resources from an environment without exchanging the clean-up of toxic substances and pollutants for the resources.  Leaving toxic substances, pollutants and general chaos in an environment during and after the production activity is harmful to the future prosperity of an individual, family, organization, society, nation, mankind and environments.  These entities work hand in hand so well that any harm brought to one of them harms the future of all of them.

Prospering Entities

Entity; a thing with distinct and independent existence: existence; being. (New Oxford American Dictionary)

True Wealth is producing yourself to material and monetary prosperity, while bringing all Producers around you, with you.  True wealth is making sure all your entities (Families, Organizations, Societies, Nations, Mankind and Environments) are prospering along with you.

When a Producer has all his entities prospering with him he has achieved true wealth.

When a non-producer or counter-producer appears to be wealthy but has his entities in a state of declining prosperity because he is stealing his wealth from his entities he has not achieved true wealth.  He is destroying his entities and since they are a part of him, he is in reality destroying him.  In this state where an individual is draining the money, value, energy, wealth, capital and power from his own entities we find upset, discontent and rebelling families, organizations, societies, nations, mankind and environments.

When achieving true wealth by having all entities prospering one is in a state of wholeness.  This is a state of an unbroken, undamaged condition.  It is a very healthy state for self, family, organization, society, nation, mankind and environments.

Definitions

True wealth; what is it?  Referring to the New Oxford American Dictionary, here’s a look at the contemporary definitions of wealth.

Wealth is an abundance of valuable possessions or money.  Wealth is also the state of being rich; material prosperity.  It is the plentiful supplies of a particular resource.  Wealth is also a plentiful supply of a particular desirable thing; as in, the tables and maps contain a wealth of information.  The archaic definition is; well being; prosperity.

Wealthy is having a great deal of money, resources or assets; rich.

The origin of the word wealth is Middle English welthe, from well’ or weal’, on the pattern of health.  Health comes from Old English, of Germanic origin; related to whole.

Whole is an unbroken or undamaged state; in one piece.  Whole is related to healthy: all people should be whole inIMG_0315 body, mind and spirit.  Whole is also a thing that is complete in itself.

In contemporary economics, wealth is a state where most wealthy individuals become wealthy by accumulating a super abundance of valuable possessions and money without the correct amount of self-created goods and service exchanged for the wealth.  These individuals create an empire by stockpiling huge amounts of money, material possessions, value, energy, wealth, capital, and power.  They attempt to become an island buried in money, material possessions value, energy, wealth, capital and power.  They use huge sums of money, material assets, value, energy, wealth, capital and power to defend and protect this empire of material and monetary wealth.  All around them lay the shattered lives of fellow citizens they have ruined by taking money, value, energy, wealth, capital and power from them without an equal exchange in goods and services for the money.

These wealthy individuals are counter producers.  They use the Free Market Construct of Marketing where counter-producers are allowed to participate. These wealthy counter-producers take huge sums of money, value, energy, wealth, capital and power from the Free Market without an exchange in goods and services for it. 

In contrast to the Free Market Construct, the Open Market Construct does not allow for counter-producer participation. In the Open Market Construct individuals can’t take any money, value, energy, wealth, capital and power without exchanging produced goods and services for it on the Open Market.  See the Open Market Construct and the Free MarketVacation Spring 3013 047 Construct in http://personalist.wpengine.com. 

I have included the technology of the Open Market Construct and the Free Market Construct in the following two sections.

The Open Market Construct

Revised April, 2013

The principle differences between the Open Market and the Free Market lie in that the Open Market application specifically specifies that the Market must be “open to all on equal terms,” and “is restricted exclusively to the activity of Producers.”

Non-producers and counter-producers have excluded themselves from the Open Market by exerting destructive forces against all Markets.  These two principles are not specified, implied or applied in the Free Market system.

 

  • In the Open Market Construct, Open to all on equal terms; means everyone must be evenly matched with no advantage for anyone.  This is not the case in the Free Market.
  •  The Open Market is open to all Producers with no restrictions for any and no advantages for any.  This is not the case in the Free Market.
  • The Open Market is not open to non-producers and counter-producers where the Free Market is open to non-producers and counter-producers.
  • Non-producers and counter-producers cannot enter into the Open Market and take money, value, energy, wealth, capital and power from it without a product exchanged for it.  This is very pro-prosperity for a family, organization, society, a nation, mankind, for all life and environments.
  • The Open Market restricts the action of marketing to Producers only.  It does not allow government regulation except maintaining the Market open to all on equal terms.  It does not allow non-producers and counter-producers access to the Market unless they produce and become Producers.
  • The Open Market does not allow monopolies or any other way non-producers and counter-producers can control supply and demand.  The control of supply and demand gives non-producers and counter-producers the advantage of receiving more money than what their products are worth.
  • Non-producers and counter-producers are exclusively restricted from participating in the Open Market!   Producers are King in the Open Market!  They create the money, value, energy, wealth capital and power through the production of needed and wanted pro-prosperity goods and services.
  • The Open Market prevents people from taking a non-productive or a counter-productive advantage in the Market.
  • The greatest difference between the Open Market and the Free Market is that the Open Market does not allow for non-producer and counter-producer participation where the Free Market allows for non-producer and counter-producer participation.  Non-producers and counter-producers have wrecked many a society and nation by being allowed to participate without exchange for the money, value, energy, wealth, capital and power they receive. 
  • 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; a non-producer or a counter-producer whether rich or poor is a non-producer or a counter-producer. They are a heavy liability for the Producers, Families, Organizations, Society, Nation, Mankind and Environments!
  • The Open Market establishes the value of goods and services naturally.  Producers are the driving force behind the mechanism that gives goods and services their value.  Producers place the demand on the market.  The market through competition among all goods and services establishes value.  Producers are the cause force in the Market that sets the value.  We assert our drive through the market to establish the value of the goods and services. 
  • Everyone must place self-created goods and services on the Market before they can take any money.  They must be real goods and services as defined in Producer Rewarded Open Market Economics in the article, “What is a Product.” http://personalist.wpengine.com

An Open Market must be open to all Producers on equal terms!  There are no exceptions!  The Open Market always establishes the value of all goods and services based on supply and demand.  This is a fact in nature.  Upon evaluation it is found to be a self evident truth.

 Free Market Construct

Revised April, 2013

The Free Market Construct will give you the contrast with the Open Market Construct.  The Open Market is governed by exact prosperity technology.  The Free Market has very little if any prosperity technology.  The little it has in prosperity technology is being violated to the extreme.  The Free Market has been taken over largely by rewarded non-producers and counter-producers. They take and take money, value, energy, wealth, capital and power without placing supply on the market for the money. The rewarded non-producers and counter-producers continually drain the society and mankind of the money, value, energy, wealth, capital and power. This money, value, energy, wealth, capital and power 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 and counter-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 and counter-producers make demand without balancing it 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 and counter-producers, by allowing monopolies and all other ways a non-producer and counter-producer can dream up and use to take money, value, energy, wealth, capital and power off the market without exchange for it with the supply of goods and services.
  • Technically speaking the Free Market should not be open to non-producers and counter-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 and counter-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 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 Producers, 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 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, restrict non-producers and counter-producers.  Non-producers and counter-producers can control the Market 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 or a 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 where the Free Market allows for non-producer and counter-producer participation.”  Non-producers and counter-producers have wrecked many a society and nation by being allowed to participate without exchange for the money, value, energy, wealth, capital and power they receive. 
  • Non-producers and counter-producers are found in all levels of a society.  They are located from the poorest among us to the wealthiest among us.  There are no exceptions; a non-producer or counter-producer whether rich or poor is a non-producer or a counter-producer.  They are a heavy liability for the Producers, families, societies, nations, mankind and environments!
Producer Rewarded Open Market Economics
The Science of  Economics
By: RP Obrigewitsch

2.5 True Wealth! Part 1

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Introduction

The purpose of this article on True Wealth is to show what True Wealth is.  True wealth is producing yourself to prosperity while bringing all other Producers with you.

True Wealth is achieved by Producers working and laboring in organized production groups.  All the Producers (Owners, Managers, and Workers/Laborers) in the Organization work and labor together in a well coordinated manner.  They all create sub-products of a whole product.  The ideal scene is that each Producer in turn receives all the money that their sub-product is worth. 

Great symbol for production in the past.

Great symbol for the means of production.

Each owner should receive only the money measured by the value of the sub-product they have created.  Each manager should receive only the money measured by the value of the sub-product they have created.  Each Worker/Laborer should receive only the money measured by the value of the sub-product they have created.  This is the process of rewarding production and only production.  This is also the process of True Wealth creation.

 Service Providers

Distributing wealth correctly to the individuals who created it is very important.  It is important because Producers in Service Organizations provide services for the individuals in Producing Organizations.  When money is concentrated into the hands of the Owners or Managers a very great number of Producers in that Organization are shorted their production’s worth.  This has a great negative impact on the rest of a society, nation and mankind.  Now these vast numbers of money shorted Producers cannot purchase services from the service provider providers such as Circles Life Australia. The service provider Producers will loose their production enterprises and income.  It can be seen here how recessions and depressions occur. 

Concentrating great amounts of money, value, energy, wealth, capital and power into the hands of a few owners and managers must be reversed.  Reversing this practice so money is distributed correctly into the hands of the Producers who created it will bring about prosperity and a condition of True Wealth.

Service Providers include medical services, dental, optometry, banking, legal, construction, the automobile industry, recreation, food, education, religion, insurance, clothing, aviation, electronics, film and recording, publishing etc.  There are a great many service industries that get harmed any time wealth is taken from the Producers who create it and concentrated it into the hands of a few rich and powerful counter-producers.  On the planet today we find these counter-producers in the ranks of the Capital Destroying Capitalist and the Capital Destroying Communist.

 Wealth Achievers

Concentrating wealth into the hands of a few is not true wealth for anyone.  It is destructive of families, organizations, societies, nations, mankind and environments.  An example of this is the current state of economics on the planet today.  A few Capital Destroying Capitalists and a few Capital Destroying Communists have and control vast, vast amounts of money, value, energy, wealth, capital and power.  The citizens of the world have disagreed with this state of economics.

Displaying production.

Displaying production.

  For a very long time throughout history they have demanded the correct pay for their production.  But there has never before been a Science of Economics that has the technology to back them up.

So far the Capital Destroying Capitalists and Capital Destroying Communists answer to these demands of the citizens is to use more police and military against them.  The funding to provide additional policing and military services is taken from the protesting citizens.  The money used to suppress the protesting citizens has been taken from them and used against their protest efforts.

The correct action is to pay each Producer (Owner, Manager and Worker/Laborer) all the money they have created during the production of their sub-product.  Non-producers and counter-producers, need not apply, they receive no pay at all.  Only Producers receive pay for what they have produced.      

Only Producers in an organization should achieve true wealth based on their levels of production.  Only producing owners, producing managers, and producing laborers/workers should achieve true wealth.  Individuals should not automatically receive wealth by being present.  They should receive wealth based on their levels of production.

I am including a quote from a speech made by President Teddy Roosevelt.  This is to show the awareness of the destructive effects of concentrating wealth into the hands of a few rich and powerful counter-producers.  This awareness of the destructive effects of concentrating wealth into the hands of a few counter-producers has been around for thousands of years.  

“The difference between Mr. Wilson and myself is fundamental. The other day in a speech at Sioux Falls, Mr. Wilson stated his position when he said that the history of government, the history of liberty, was the history of the limitation of governmental power. This is true as an academic statement of history in the past. It is not true as a statement affecting the present. It is true of the history of medieval Europe. It is not true of the history of 20th Century America. In the days when all governmental power existed exclusively in the King or in the baronage, and when the people had no shred of that power in their own hand, then it undoubtedly was true that the history of liberty was the history of the limitation of the governmental power of the outsiders who possessed that power. But today, the people have actually or potentially the entire governmental power. It is theirs to use and to exercise if they choose to use and to exercise it. It offers the only adequate instrument with which they can work for the betterment, for the uplifting, of the masses of our people. The liberty of which Mr. Wilson speaks today means merely the liberty of some great trust magnate to do that which he is not entitled to do. It means merely the liberty of some factory owner to work haggard women over hours for under pay and himself to pocket the proceeds. It means the liberty of the factory owner who crowds his operatives into some crazy deathtrap on a top floor, where if fire starts the slaughter is immense. It means the liberty of the big factory owner who is conscienceless and unscrupulous, to work his men and women under conditions which eat into their lives like an acid. It means the liberty of even less conscientious factory owners to make their money out of the toil, the labor, of little children. Men of this stamp are the men whose liberty would be preserved by Mr. Wilson. Men of this stamp are the men whose liberty would be preserved by the limitation of governmental power. We propose, on the contrary, to extend governmental power in order to secure the liberty of the wage- workers, of the men and women who toil in industry, to save the liberty of the oppressed from the oppressor. Mr. Wilson stands for the liberty of the oppressor to oppress; we stand for the limitation of his liberty thus to oppress those who are weaker than himself.” President Teddy Roosevelt.

Included is a quote from Abraham Lincoln on labor being superior to capital.  I would say labor is superior to money, value, energy, wealth, capital and power.  Labor creates all of these.  Here is Abe Lincoln.

Labor is prior to, and independent of, capital. Capital is only the fruit of labor, and could never have existed if labor had not first existed. Labor is the superior of capital, and deserves much the higher consideration.

Labor creating money, value, energy, wealth, capital and power.

Labor creating money, value, energy, wealth, capital and power.

Abraham Lincoln

In the terms of Producer Rewarded Open Market Economics this statement would read:  Labor is prior to and independent of, capital, money, value, energy, wealth and power.  Capital, money, value, energy, wealth and power are only the fruits of labor, and could never have existed if labor had not first existed.  Labor is the superior of capital, money, value, energy, wealth and power, and deserves much the higher consideration.

The following quote illustrates how long the knowledge of the harmful effects of distributing the wealth into the hands of a few rich and powerful counter-producers has been known.

 This quote is taken from the Bible, Matthew 19:24.  “Again I tell you, it is easier for a camel to go through the eye of a needle than for a rich man to enter the kingdom of God.”

Producer Rewarded Open Market Economic
The Science of  Economics
By: RP Obrigewitsch

7.0 Ownership

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Rev March 6, 2019

This is the sixth set of Axioms in the Axioms of Economics.  There are two sections of Axioms included in this set.  The first section includes the Axioms covering Ownership.  The second section includes the Axioms covering Producers; the Use of Their Money and Production.

We are going into the subject of Ownership.  The subject of Ownership will be expanded upon.  There is far more to the subject of ownership than what is commonly practiced today.

Ownership; is the act, state or right of possessing something. (New Oxford American Dictionary)

Background

The concept of mental spaces will be introduced here.

We have discussed Producers producing commodities, trades, goods and services.  Producers produce these commodities, trades, goods and services by using their mental spaces.  The mental space is used to create models of the commodities, trades, goods and services the Producers intend to create.

Models are a three-dimensional representation of a person or thing or of a proposed structure, typically on a smaller scale than the original.  (New Oxford American Dictionary)

The mental models are three-dimensional representations of commodities, trades, goods and services the Producers intend to create.  These models are converted or replicated into physical environment as commodities, trades, goods and services.

Spaces

Included in the subject of Ownership is found the subject of Spaces.  The first space individuals usually are aware of is the environment around them.  It appears to be the obvious and prominent space.  It is common to all of us.

The environment around us is the space we use when exchanging communications, ideas, perceptions and products among ourselves.

There are spaces in existence other than the environment around us.  Each individual has a mental space. This space is unique to each individual.  Individuals use this mental space to create models of the things they want to create in their physical environment.

Interfacing Spaces

Interfacing spaces; this is when Individuals overlap their mental space with the production space in the surrounding environment.  This overlapping takes place during production.

 Interfacing spaces; also, is an area of one’s Individual Space overlapped with other Individual’s Spaces while creating a product in the environment around them.  This overlapping takes place during group production.

 Individual spaces have been invalidated for most of us.  They have been pushed down and invalidated to the point of almost total unawareness of them.  Most people can find their individual space when they are reminded of its existence.  The awareness of the individual space has almost totally been relegated to the process we call, “daydreaming.”  Even the mental process of “daydreaming” in our individual space, has been frowned upon.  In many cases people aren’t aware they are daydreaming when they are.  Daydreaming is an example of individuals operating in their space.  Fantasizing is another method of operating in their spaces.  The individual owns his daydreams and fantasies.  The individual could, and in many cases, individuals do, replicate their daydreams and fantasies in the physical environment.  In most cases they own or should own what they create or transfer into the physical environment.

 Using Individual Spaces

Individuals use their space daily and almost continuously.  They use it when they think and dream.  They use it when they solve problems.  They use it when they communicate through the use of speech and when they communicate via writing.  They use it at work while performing their jobs.  Artists use it.  Musicians use it.  Everyone on this planet uses it.  They use it for the most minor detail to the most major detail during production and during living.  They use it to operate their bodies.  They operate their bodies, coordinating the body motions, while using a mental model as a reference.  This coordinating the body motions with the mental model is used while producing an intended commodity, trade, good or service.  This individual space process is done very rapidly by most individuals, instantaneously.  Most individuals aren’t aware they are doing this activity.

During the process of production, the individual’s space is first used to create a model of the commodity, trade, good or service.  Individuals replicate the models from their space into the physical environment.  The replication of the model into the physical environment is done by the individual interfacing his space with the physical environment.  When there is more than one Producer involved in the production process, each individual interfaces their space with each other’s individual space and with the physical environment.

Spaces and Ownership

Where does this space theory relate to the concept of Ownership?   Of course, it is self-evident that everything an individual creates in the individual’s space, while interfacing with the physical environment, the individual owns.  We could also say; everything the individual creates in the physical universe, while interfacing with the physical environment, the individual also owns.  When the individual creates with a group of other individuals the individual owns that part of what he creates in the final product.  This is how ownership works into all of what I have been writing here.

The subject of ownership can be fairly abstract.  By abstract we mean existing in thought or as an idea but not having a physical universe or concrete existence.  The reason Ownership can be abstract is that Ownership involves many spaces.  Ownership involves the interfacing of many spaces during the process of production.

Ownership Axioms:

  1. A Producer owns that which has been produced or created by that Producer.
  2. Producers have the full right to 100 percent of their production.
  3. The Producers who produce the organization own the organization.
  4. A Producer owns that percentage of an organization he has produced.
  5. All expansion in an organization belongs to those Producers who created the expansion.
  6. Ownership with production activity does receive reward.  The production of the owner is what is rewarded.
  7. Ownership with non-production activity does not receive reward, only production receives reward.
  8. Ownership with counter-production activity does not receive reward, only production receives reward.
  9. An owner who is producing should be rewarded for his production.  The owner should not be rewarded for his ownership under any circumstances.
  10. An individual should not be rewarded for having money or ownership.  The individual has received the reward for production and that was the money.  This rewarding an individual for having money or ownership is the action of rewarding someone for being rewarded.
  11. Ownership in itself is reward for production.
  12. A Producer owns the value, energy, wealth, capital and power he creates.
  13. Holding land or space out of production is counter to the prosperity of the individual, family, society and mankind.
  14. A Producer has the right to produce on land or space owned by another individual or individuals who are not using the space or land for production. There would have to be an agreed upon exchange between both parties.
  15. The Producers are the creators of the existence of the Organization.
  16. Each Producer has mental space and uses this space when creating the production of commodities, trades, goods and services.
  17. An Organization is composed of interacting interfacing individual spaces.
  18. An Organization exists exclusively from the existence of the spaces of the individuals interfacing in that Organization.
  19. All producing individuals hold Ownership in an Organization by holding ownership in their space where it interfaces with the space of the Organization.

Producers; the Use of Their Money and Production

  1. Producers have the full right to use their money however they choose in a prosperous thrust.
  2. Producers do not have the right to use their production or money in a counter prosperous thrust.  This action is destructive to the individual, family, society, mankind and the environment.
  3. Producers use money units to capture the value, energy, wealth, capital and power they create through the production of commodities, trades, goods and services.
  4. Producers transfer the value, energy, wealth, capital and power into money units when they market their commodities, trades, goods and services on the Open Market.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised March 6, 2019

6.0 Prosperity, Economics & Freedom

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Rev Mar 6, 2019

 This is the fifth set of Axioms in the Axioms of Economics.  There are two sections of Axioms included in this set titled Prosperity, Economics & Freedom.  The first section includes the Axioms covering Production and Prosperity.  The second section includes the Axioms covering Economics and Freedom.

 Freedom in Economics is the basic right of all individuals to produce.  It includes the right to own all they have produced.  This production would be in commodities, trades, goods and services.  Economic freedom also includes the right to own all the money, value, energy, wealth, capital and power they have created.

Freedom in Economics is the right of the Producers to work and labor free from the counter-production interferences put forth by the non-producers and counter-producers.

Production and Prosperity:

  1. Production is the basic thrust of all life toward the goal of prosperity.
  2. The thrust to prosper always, knowingly or unknowingly, involves applying economic principles; this applies to all life forms.
  3. Low production brings about low prosperity in an individual, family, society, nation, mankind, in all life forms and the environment.
  4. Production is not only basic to the nature of mankind but production is basic to the nature of sane groups and sane individuals.
  5. If you don’t produce you don’t prosper.  If you are prospering and you are not producing, you are living off the backs of Producers and you are lessening the prosperity of the Producers.
  6. Standards of living are directly related to increases or decreases in production rates and production efficiency.
  7. The basic thrust and purpose of all life is to produce, in order to thrive and achieve the goals of prosperity and expansion.
  8. Prosperity has always been achieved by rewarding the Producers and the Producers have always created the Prosperity.

Economics and Freedom

  1. Freedom in general is directly related to economic freedom.
  2. Economic freedom is the basic freedom.  Without economic freedom no other freedoms can exist.
  3. As economic freedom increases, freedom in general increases.
  4. As economic freedom decreases, freedom in general decreases.
  5. Economic freedom is achieved by applying the Axioms of Economics.

Economic freedom is achieved by following the razor thin road laid down by applying the Axioms of economics.  Producer Rewarded Open Market Economics follows the razor thin road laid down with the application of the Axioms of Economics. 

  1. With the absence of economic freedom an individual has “no freedom” in the physical universe.
  2. A Democracy, in order to thrive and prosper, must have guaranteed production rights for every individual in the society and country.
  3. Morale is directly related to the amount of economic freedom in the society.

Morale is confidence, enthusiasm and discipline of a person or group at a particular time.

  1. Increased economic freedom increases morale and decreased economic freedom decreases morale.
  2. Production is the most basic and the most important right in an individual’s thrust for freedom.
  3. The rate of technological advancement is directly related to the level of economic freedom and the level of production being rewarded.
  4. The Producers in a society are its life blood.
  5. Producers create all the prosperity one sees in a society.
  6. Producers create all the prosperity one sees in an individual, family, company, society; nation, mankind and the environment.
  7. Every individual has the basic right to produce.
  8. No one has the right to ever prevent another individual from producing, no matter how noble the reason may be.
  9. Not only must every individual have the right to produce but the Producers must be rewarded in full for their production.
  10. When a Producer is not rewarded with the money he created through production, this situation gives him the apparency of not having produced when he has in fact produced.
  11. An individual’s production thrust falls off when he is not rewarded with the money he created through production.
  12. Producers have all prosperity rights associated with a Democracy.
  13. Non-producers and counter-producers have no rights at all except the rights connected with the act of production.

Once they have achieved the class of a Producer, they have all of the prosperity rights associated with a Democracy.

  1. Non-production or counter-production must not be held against a non-producer or a counter-producer by any sort of artificial punishment.  Non-production and counter-production are heavy enough penalties, in themselves, when not rewarded.
  2. Death is the final penalty for non-production and/or counter-production.

This would be a non-producer/counter-producer self-inflicted death.  Non-production brings about a condition of no energy flow, this leads toward death.  Counter-production brings about a condition of a negative energy flow, this leads rapidly toward death.

  1. Production level is directly related to the amount of economic freedom in a Society.
  1. When an economy starts to fall into a steep recession or an Economic depression the non-producers/counter-producers have taken charge of a large part of the economy and put it into a free fall.

The Producers with their motivation and determination hold the razor thin line of Producer Rewarded Open Market Economics.  They remove the non-producer and counter-producers from power and create a thriving and prosperous economic system.

Producer Rewarded Open Market Economics
The Science of Economimics
By RP Obrigewitsch
Rev March 6, 2019

 

 

 

5.0 Production Rewarding

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Rev March 5, 2019

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 ProductionRewarding.  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 thrive very well.  In Societies and Nations, where non-producers and counter-producers are rewarded we find recessions, depressions, wars and hard economic times.  The level of prosperity for 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:

  1. 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.

  1. 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.

  1. As the rewarding of non- production and/or counter-production decreases, money value increases.
  2. As the rewarding of non-production and/or counter-production increases, money value decreases.
  3. Reward production and only production, never reward non-production or counter-production.
  4. Reward the Producers and they will reward you with abundant production.
  5. Reward non-producers and non-production will increase while production decreases.
  6. Reward counter-producers and counter-production will increase abundantly while production decreases.
  7. Rewarding Producers enhances the prosperity of the individual, family, society, mankind and the environment.
  8. Rewarding non-production or counter-production directs the individual, family, society, nation and mankind toward slavery.
  9. 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.
  10. A society that is rewarding non-production and/or counter-production is on the road to slavery.
  11. Any society that is on the road to slavery is rewarding non-producers and/or counter-producers.
  12. By rewarding non-producers and/or counter-producers you are helping yourself toward slavery along with the non-producers and/or counter-producers.
  13. Increased production rewarding decreases crime and war.
  14. Increased non-production and/or counter-production rewarding increases crime and war.
  15. 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.  War is a destructive activity.

Money Supply and Money Axioms:

The money supply provides money 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 physical universe money unit objects.  These money unit objects are where value, energy, wealth, capital and power are transferred and stored.  The value, energy wealth, capital and power are transferred into and stored in money units during the process of marketing commodities, trades, goods and services on the Open Market.

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

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

  1. When a constant money supply is maintained, we maintain a constant unit of measure in money units for monitoring the value of production.
  2. Money, in money units, is a means of measuring value of products on the Open Market.
  3. 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 societies and nations.

          This formula maintains a constant money supply.

  1. The value of money is inversely related to the size of the money supply.
  2. 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.”
  3. Creating money “out of thin air” to expand the money supply is a form of counterfeiting and rewards non-production and/or counter-production.
  4. An open or floating monetary system, where the money supply is not held constant, has few winners and many losers.
  5. Expanding the money supply is not an ethical act.
  6. 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, capital and power from the money currently in circulation.  This value, energy, wealth, capital and power are transferred into the newly created money.  They are taking money, value, energy, wealth, capital and power without placing commodities, trades, goods and services on the Open Market in exchange for it.   The other individuals in the society lose money value, energy, wealth, capital and power which are transferred to the individuals who first received the newly created money.

  1. 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, trade, goods and services.

  1. Shrinking or contracting the money supply increases the value of money units in the monetary system.
  2. Production doesn’t depend on the monetary system for prosperity.  The monetary system depends on production for the value that is inherent in money.
  3. Production is senior to money.  Production gives money its value, energy and power.
  4. Production is senior to capital.  Production gives capital its value, energy and power.
  5. Production is senior to wealth.  Production gives wealth its value, energy and power.
  6. Production creates the power an individual, family, society and Nation possesses.
  7. Money lends efficiency to production.

It is more efficient to transfer the value of one’s production into money units.  One can then 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. 

  1. Money is always junior to production and production is always senior to money.
  2. 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 March 5, 2019

 

 

 

 

 

 

5. Creating Money

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Revised November 14, 2013

It is important to note: The Producers who create the products create the exchange value and production value the money unit symbol represents.  The exchange value and production value is transferred into money units during the process of Marketing.  Since Producers have created the exchange value and production value they now own the money units.  They have created the value inherent in the money units received when marketing the commodity, trade, good or service.  You could say they “created the money.”  This money was created at the precise time the commodity, trade, good or service was created.  The Producer exchanges the commodity, trade, good or service on the Open Market, transferring product value to the symbol called money.  In essence the Producers are creating money when they are creating commodities, trades, goods and services and exchanging them on the Open Market

We can say; “The Producer producing one thousand (1000) dozen eggs per day is creating two thousand (2000) money units of exchange value per day.  The Producer producing ten (10) coats per day is creating two thousand (2000) money units of exchange value per day.  The Producer producing five hundred (500) gallons of milk per day is creating two thousand (2000) money units of exchange value per day.  The Producers producing five (5) computers per day are creating five thousand (5000) money units of exchange value per day.  The Producers producing one (1) car per day are creating thirty thousand (30,000) money units of exchange value per day.”  The exchange value of every commodity, trade, good or service produced by any of the Producers, in the realm of mankind, can be expressed in terms of money unit value when marketed on a Market. Only when commodities, trades, goods and services are marketed on the Open Market, open to all on equal terms, is the true and correct money unit value achieved.

It can be seen: All money is created by Producers (Workers and Laborers) who create commodities, trades, goods and services.  These products have exchange value.   The money symbol represents this exchange value.  Money with an absence of production does not exist.  It would have no exchange value.

Money is a material object.  In order for money to exist with value, energy and power it must have production taking place.  This value, energy and power is transferred to the money from the production.  The transfer takes place during the exchange of products for money on the Open Market.

As the Producers produce daily, they produce the exchange value and product value which backs money and gives money its energy and power.  Money is created through and backed by production.  With the absence of production, money has no power, energy or exchange value.  Money has no backing.  The production level of a society as a whole backs the value which is inherent in the money units and the money supply.  The production level of a society gives the money its value.  The money value in a society fluctuates with the production level of that society.

When production enterprises are moved from one Country to another Country, money power and value are lost to the Country moving the production enterprises out.  The country receiving the production enterprises gains money power and value.  This is what has been happening for the past 30 to 40 years in the United States.  Production enterprises have been moved to foreign countries.  These foreign counties have been gaining money power and value.  The United States has been loosing money value and power.

The power, energy and wealth of a Nation is directly tied to its production level, money value and money power.  The Nation moving production enterprises to foreign countries is literally transferring National and International Political Power to the foreign countries.  The United States has been transferring its’ Power to foreign counties.  The United States has been loosing Power and the countries where the production enterprises have been transferred have been gaining Power.

When the production level of a society is high, and the Producers are being rewarded for their production and the money supply is held constant, the money value of the society is high.  When the money supply is expanded money value is lowered.  When production level is high and non-producers and counter-producers are taking money with no exchange for it the money value declines.  When production levels are low the money value is low.  Any non-producer/counter-producer, out-exchange, activities lead to lower money value and lower production levels.

The act of creating money, value, energy, wealth, capital and power is done by the Producers who are also Workers and Laborers.  All money is created through and by some form of work and labor.  All wealth is created through and by some form of work and labor.  All capital is created through and by some form of work and labor.  There are no exceptions.  Labor gives a Nation its’ wealth.  Adam Smith discusses this in his Wealth of Nations book, published in the late 1700s.

There are three basic forms of Work and labor.  Work and Labor is achieved through; (1.) predominantly physical action, (2.) through a combination of physical action and mental action (3.) and/or through predominantly mental action.  These are all forms of work and labor.

Management also creates money, value, energy, wealth, capital and power.  Management uses a form of work and labor to create money, value, energy, wealth,  capital and power.  Management for the most part uses the mental action form of work and labor.  Management, despite its hate and attacks on producing workers and laborers, uses a form of work and labor to create money, value, energy, wealth, capital and power.  The money management receives in pay represents the value, energy, wealth, capital and power management created during production.  If management receives money, value, energy, wealth, capital and power without using any of the three activities of work and labor it is out-exchange.  Management is stealing money, value, energy, wealth, capital and power from the producing workers, laborers and the producing managers.

There should never be an antagonistic relationship between the producing laborers and the producing managers.  Both groups use some form of work and labor to produce commodities, trades, goods and services.  They exchange the commodities, trades, goods and services on the Open Market for money, value, energy, wealth, capital and power.  The solution is to pay all producing laborers, labor and management, the correct amount of money each one has created through the actions or activities of production.  All producing laborers are both management and labor working together in concert to fulfill their purposes of prosperity.

There are counter-producers who pass themselves off as managers and as laborers.  They need to be removed from producing enterprises.  Counter-producers cause much damage if allowed to exist in a producing organization.  They will destroy prosperity for themselves along with the prosperity for all producers, manager laborers and labor laborers, in a production Organization.  I have seen this in actual practice.  It is not an uncommon phenomenon.  Producing managers and producing laborers tend to have pity on these counter-producers or have fear of them and allow them to exist in the organization.  Then they can’t figure out why the organization continues to fail.

When an organization is failing look around and you will find counter-producers and non-producers sucking the energy out of the organization.  You will find counter-producers thrusting forth destructive actions that stop, impede or destroy the organization.  Don’t have pity on them. Simply remove them from the premises.  Don’t fear them for they are cowards and will turn tail and leave the area when they are exposed and when the  correct force and action is turned on them.

The counter-producer managers have for many years looked down on Labor.  They have made the word labor into a bad word.  They have kicked producing laborers around.  They have pushed producing laborers toward slavery and at times have enslaved the producing laborers.

Counter-producers in management have used this antagonistic attack on labor as an aid to take money, value, energy, wealth, capital and power from labor without production exchanged for it.  This attack is made in order to push the creators of the money, value, energy, wealth, capital and power down toward slavery and steal the money, value, energy, wealth, capital and power the producing labors have created.  There are those in management who would attack labor as a way to discredit laborers.  They are attacking and discrediting labor so labor won’t place a claim on the money, value, energy, wealth, capital and power the producing laborers have created.

Creating money, always, no exceptions, requires some form of prosperity directed action or activity.  The activity is either predominantly physical, predominantly mental or a combination of the two.  If one is receiving money without some form of prosperity directed action or activity that results in an exchangeable commodity, trade,  good or service that person is out-exchange.  That person is stealing money, value, energy, wealth,  capital and power.   It is being stolen from the producing laborers and producing managers who use prosperity directed actions and activities resulting in production.  All money, value, energy, wealth, capital and power is created through and by producing laborers and producing managers.  All production requires some form of work and  labor, be it work and labor from the conventional Laborer or work and labor from the conventional Manager.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
July 13, 2012

 

3. Medium of Exchange

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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 value.  It 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

1. The Constant Money Supply

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Revised November 13, 2013

The Constant Money Supply Construct is the fourth Axiom in Economics.  The first Axiom in Economics is; ALL MONEY IS CREATED THOUGH AND BACKED BY PRODUCTION.  The second Axiom in Economics is; THE PEOPLE WHO CREATE THE PRODUCTION OWN THE PRODUCTS AND THE MONEY RECEIVED FOR THE PRODUCTS WHEN THEY ARE EXCHANGED ON THE OPEN MARKET.  The third Axiom in Economics is; MAINTAIN AN “OPEN MARKET, OPEN TO ALL ON EQUAL TERMS,” NO EXCEPTION.

In this article and subsequent articles on the Constant Money supply, we will discuss the fourth Axiom in Economics.  MAINTAIN A CONSTANT MONEY SUPPLY.  A Constant Money Supply is a money supply that remains the same or unchanging.  The number of money units in circulation remain the same or unchanging.    

A Constant Money Supply standardizes and stabilizes economics systems.  It lends efficiency, stability and prosperity to production, producers, organizations, societies and nations.  A Constant Money Supply gives efficiency and stability to the Banking and Finance industries.  A Constant Money Supply places a rock solid foundation under economic systems, Producers, families, organizations, societies, nations and mankind.  Producers gain confidence and moral strength when the money supply is held constant.  A Constant Money Supply gives predictability and prosperity to Producers.  Incentives to produce and be a Producer are increased and enhanced.

Money is the symbol that represents exchange value.  This exchange value is generated through the production of commodities, trades, goods and services.  When these commodities, trades, goods and services are exchanged on the Open Market, the symbol called money is used to represent the exchange value of the marketed commodities, trades, goods and services.  A Constant Money Supply standardizes and stabilizes this phenomenon of money units representing the value of the produced and marketed commodities, trades, goods and services.

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