You Create Money

A Producer Rewarded Economic System

3.5 Economics is a Group Activity

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Economics is a group activity.  Individuals by themselves can’t create an economic system.  An individual alone can work and labor while creating goods and services for his use and consumption.  An individual alone with no-one else around, would not have a Market in which to exchange goods and services.  No Economic System would exist.  Economic Systems require more than one producing Individual.  The producing individuals interact with each other, in Groups, when exchanging their produced commodities, trades, goods and services on an Open Market.  This interaction of Producers establishes Markets.  Groups of Producers interacting together while exchanging commodities, trades, goods and services establish Marketing Groups.  The function of Marketing is a Group activity.  The Function of Marketing demonstrates that Economics is a Group activity.

Individual Producers also interact with each other, in Groups, during the process of working and laboring while producing commodities, trades, goods and services.  This is another Group activity found in Economics. This also demonstrates that Economics is a Group activity.

Economic Systems are composed of Producer Groups and Market Groups. 

There are producing individuals interacting in Producer Groups while creating money, value, energy, wealth, capital and power.  They are directing and coordinating ideas and purposes while working and laboring together.  While directing and coordinating ideas and purposes they create commodities, trades, goods and services.  They exchange the commodities, trades, goods and services on the Market for money.  

There are Producers interacting together in Marketing Groups during the Marketing of their Commodities, trades, goods and services.

In an Economic System, Money units aren’t absolutely necessary in order to establish an Economic System.  Producers and Markets are absolutely necessary for the establishment of an Economic System.  A bartering system can be used, instead of Money, when exchanging commodities, trades, goods and services on the Market.  However, a bartering system is very inefficient.  It is much easier to transport Money Units on one’s person than to transport commodities, trades, goods and services wherever an individual needs to purchase something. 

Money Units, introduced into an Economic System, lend efficiency to the Economic System.  A money supply held constant standardizes the money unit as a unit of measure. Money is the unit of measure for the value, energy, wealth, capital and power created by the Producers.  A Constant Money Supply standardizes the whole Economic System.  Refer to “The Constant Money Supply” in http://personalist.wpengine.com for more information on the Constant Money Supply. 

Here is a side note to demonstrate the tremendous need for maintaining a Constant Money Supply.  In Chemistry the Periodic Chart standardizes the whole field of Chemistry.  Standardized systems of weights and measures have been developed world-wide to prevent people from cheating each other during economic transactions.  Maintaining a Constant Money Supply prevents people from stealing value, energy, wealth, capital and power from other people.  When a Money Supply is expanded value, energy, wealth, capital and power are stolen from the people who currently hold the current money.  It is transferred into the hands of the people who have the new money.

Again, Economics is a Group activity      

Economics is created through Group action.  Functioning economic systems require individuals to work and labor together in groups while creating money, value, energy, wealth, capital and power.  Economics requires individuals working and laboring together in Groups in order to have an economic system.  Today these Groups have grown to include all of mankind on planet earth.  Individuals (Selves) interfacing with other Individuals (Selves) bring about Groups.  All Groups interfacing with each other give us the largest group we call Mankind.

Capital Destroying Socialism 

Socialism (Capital Destroying Socialism) fails because it tends to say or want all people to share the money, value, energy, wealth, capital and power equally.  When all people are required to share equally in the money, value, energy, wealth, capital and power, this sharing results in non-producers and counter-producers being rewarded for non-production and counter-production.  Rewarding non-producers and counter-producers causes an incentive for individuals to not work and labor for money.  Producers are penalized because money they have created is given to those individuals who have not created the money.  The incentive in this form of Socialism is for individuals to not work and labor for the purpose of creating money.  Why should they work and labor if they can receive money without working and laboring?  

This is very destructive to an economic system, an organization, society, nation, mankind and environments.  In this form of Socialism, individuals (Producers) who create all the money, value, energy, wealth, capital and power are penalized.  The money, value, energy, wealth, capital and power, created by the Producers, are shared equally with non-producers and counter-producers.  This is a money, value, energy, wealth, capital and power destroying form of Socialism.  It is referred to as Capital Destroying Socialism.  The Capital Destroying Socialists are counter-producers as well as the Capital Destroying Capitalists.

Capital Destroying Capitalism

Capital Destroying Socialism is not the only form of Socialism.  It is the capital destroying form of Socialism.  Capital Destroying Socialism is the Socialism the Capital Destroying Capitalists like to use as an example of Socialism.  They like to criticize Socialism while using this form as an example of all forms of Socialism.  Capital Destroying Capitalism is also very destructive to all individuals, families, societies, nations, mankind and environments.  Capital Destroying Capitalists have been the primary rulers of Economic systems since the dawn of time.  The Capital Destroying Capitalists attack and criticize anything that appears to threaten their grip on Economic Systems.  The Capital Destroying Capitalists are and have been the principle counter-producers over a long span of time.  Counter-producers also can be found as employees (workers, laborers and managers) in many industries.  They are the secondary counter-producers.  The Capital Destroying Socialists are counter-producers as well.

Capitalism (Capital Destroying Capitalism) fails because it tends to say or want a very few individuals (Selves) to take and have the vast majority of the money, value, energy, wealth, capital and power.  This form of Capitalism attempts to operate at the Self level.  It is impossible to operate exclusively at the Self level since all Producers operate interacting with each other in Groups.  This system of economics rewards non-production and counter-production.  It allows the few rich and powerful individuals to take huge amounts of money, value, energy, wealth, capital and power without exchanging self created production for it on the Open Market. 

The action of concentrating the money, value, energy, wealth, capital and power into the hands of a few rich and powerful individuals is an act of counter-production.  This activity destroys prosperity by bringing about the destruction of money, value, energy, wealth, capital and power.  This destruction is done by redistributing vast amounts of money, value, energy, wealth, capital and power to a very few rich and powerful Selves.  These rich and powerful Selves slow the velocity of money, value, energy, wealth, capital and power.  When money velocity slows, economic systems recede toward depressions.  Everyone in these systems is harmed.  The production Groups and the Marketing Groups are destroyed as a result of concentrating the money, value, energy, wealth, capital and power into the hands of a few individuals.  When Production Groups and Marketing Groups are harmed and destroyed, Economic Systems are harmed and destroyed.  Refer to “Money Velocity and Prosperity” in http://personalist.wpengine.com.

Economics is a Group Activity

We must recognize the fact that there is interplay between individual Producers interacting with other individual Producers while creating commodities, trades, goods and services.  This interplay between Producers is a Group activity.  All organizations have individuals interacting together in Groups while creating money, value, energy, wealth, capital and power. 

The individual acting alone is a dead end.  The individual acting alone isolated in the back woods or on a desert island is a dead end.  The individual acting alone as “I am the only one!” is a dead end.  The individual trying to act alone while attempting to concentrate all the money, value, energy, wealth, capital and power into his hands is a dead end for himself, all other individuals, families, organizations, societies, nations, mankind and environments.  This is the Capital Destroying Capitalist, “I am the only one!”

For prosperity and survival of all individuals, families, organizations, societies, nations, mankind and environments, it is very important for the Producers of the commodities, trades, goods and services to be rewarded for their production.  The reward must be very close to exactly what the value of their production is measured at. 

There are forms of Socialism where prosperity is created and people survive very well.  There are forms of Socialism where money is taken from the Producers and transferred to the non-producers and counter-producers and prosperity is harmed extremely.  Prosperity is harmed most when money, value, energy, wealth, capital and power is allowed to be transferred to a few rich and powerful individuals without an exchange for it.

There is only one way to prevent money from being taken from the Producers and given to non-producers and counter-producers.  That way is for the Producers to stand up and take full responsibility for the money, value, energy, wealth, capital and power they have created through work and labor.  There is no other way.  Any other system set up to protect the Producers can be infiltrated by the counter-producers and perverted to operate for the benefit of the counter-producers.    

Man is very social.  Man prospers very well when working and laboring in Social Groups.  As long as Producers are rewarded correctly for their production while laboring and working in Social Groups there will be much prosperity. 

Producer Rewarded Open Market Economics
The Science of Economics
By Rp 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

3. Products and the Open Market

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Rev. March 5, 2019

 This is the second set of Axioms in the Axioms of Economics.  This is the Products and the Open Market set.  There are 24 Axioms in the Products and the Open Market set.

This set gives the definition of a Product.

This set of Axioms demonstrates how Producers create Markets.  Producers create value, energy, wealth, capital and power and flow them into the Market.

There is more information on Products and the Open Marker on the web site http:youcreatemoney.com. There are10 articles in the category titled Open MarketEconomics.  These articles go into much more detail on Products and the Open Market.

  1. A product is a commodity, trade, good or a service that is:

A.  Exchanged on the Open Market (open to all on equal terms.)

B.  Needed and wanted and

C.  Does not harm the individual, family, society, mankind and the environment.

  1. One does not decide to back money with production, production backs money.
  2. A created commodity, trade, good or service is not classified as a product unless that commodity, trade, good or service is marketed and sold on the Open Market.
  3. A commodity, trade, good or service is not a product if it harms the individual, family, society, mankind and the environment.
  4. A commodity, trade, good or service that harms the individual, family, society, mankind and the environment is a criminal product.
  5. A purposely directed action or activity that does not harm the individual, family, society, mankind and the environment is a product.
  6. Production is converted into money units and the money units are a measure of the value of the production.
  7. All money value is backed by production.
  8. Production creates the value inherent in money.
  9. Production has exchange value.
  10. Criminally produced commodities, trades, goods and services do not and cannot give money value.
  11. Criminally produced commodities, trades, goods and services decrease and destroy money value and are harmful to the individual, family, society, mankind and the environment.
  12. Money cannot and must not ever be treated as a product.
  13. Producers are the creators and constructors of Markets.
  14. Non-producers and counter-producers destroy and destruct Markets.
  15. An Open Market occurs “only among Producers” and in numbers greater than one Producer.  An Open Market occurs when Producers exchange commodities, trades, goods and services with each other.
  16. An Open Market is established anytime and anywhere commodities, trades, goods and services are exchanged between two or more Producers.
  17. The greatest difference between the Open Market and the Free Market is; the Open Market does not allow for non-producer or counter-producer participation. The Free Market allows for non-producer and counter-producer participation.
  18. Demand generates Market force.
  19. Producers generate value, energy, wealth, capital and power through production and flow them onto the Open Market.
  20. Producers give Markets their energy.
  21. Producers drive Markets and make them operate.
  22. Non-producers and counter-producers siphon (suck) value, energy, wealth, capital and power out of Markets. They deflate Markets.
  23. Any time you find an abnormally shrinking and collapsing Market, you can be sure you will find non-producers and counter-producers taking money, value, energy, wealth, capital and power out of the Market without a correct exchange for it in produced commodities, trades, goods and services.
Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
Revised March 5, 2019

 

 

 

2. Creating Money

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Steam lumber mill 002

Revised March 3, 2019

This is the first set of Axioms in Economics.  There are over 230 Axioms.  They will be posted in sections.  This first set of Axioms covers money and how it is created.  This set includes the basic Axioms of Economics.

I have been researching in the field of Economics for almost 60 years.  Over this time period, I have discovered that Economics covers a very broad area.  As individuals read the Axioms of Economics, they will experience the adventure of how broad an area the Field of Economics covers.

As individuals study the Axioms of Economics, they will be able to appreciate the power and the abilities of the Producers.  You as Producers will gain an ability to be proud of your accomplishments.  They are truly stellar in this universe!  Everything you see around you has been created by Producers!  It has been put here by the Producers.

Many times, and against terrific odds the Producers have not only brought Man to prosperity, they have advanced man into new and exhilarating technological advances!  It is only by the persistence and abilities of the Producers that we have what we have and are where we are today.

We could look back in hindsight and ask; where would we be today without the constant counter forces leveled at the Producers by the counter-producers?

It is by the work and labor of the Producers that man has advanced out of the caves.  It is by the work and labor of the Producers that man has advanced out of the Dark Age.  This Dark Age was pressed on the Producers by the counter-producers.  It is by the work and labor of the Producers that man advanced beyond the Dark Age and into the Age of Science.

Now it is the Producers who will advance man into an Age where Producers and only Producers should be rewarded for the fruits of their work and labor.  The Producers should take full responsibility for all the money, value, energy; wealth, capital and power they create.

The day will be seen when man will have prosperity for all who decide to produce it.  Where the thrusts of crime and war will be in the past.  Where the levels of prosperity are above and beyond our present abilities to conceive it!

Money and how it is created:

  1. All money value is created through and backed by the production of commodities, trades, goods and services.
  2. Reward production and only production.  Producers create the money value.  The individual who creates the money value owns it.
  3. Maintain the Market Open to all on equal terms.  This is the “The Open Market.”
  4. Maintain a constant money supply.
  5. A Constant Money Supply provides security.  It prevents the transfer of money, value, energy, wealth, capital and power away from the Producers through the expansion of the money supply.
  6. A Constant Money Supply prevents the non-producers/counter-producers from stealing money, value, energy, wealth, capital and power away from the economic system through the expansion of the money supply.
  7. Expanding the money supply transfers value, energy, wealth, capital and power from the existing money units into the newly created money units.
  8. Expanding a money supply causes existing money units to lose value.  This is the main cause of inflation.
  9. A Society, Nation or Economic System with a Constant Money Supply is like having a Bank with very secure doors, windows and walls along with absolute explosive-proof vaults.
  10. Money has two parts; symbol and production value.
  11. Money is the symbol that represents production value.
  12. Production creates the value which money symbolizes.  This is production value.
  13. No money is ever created but through the production of commodities, trades, goods and services.
  14. The money supply must be held constant forever.  This is the Constant Money Supply.
  15. The Constant Money Supply standardizes the economic system.
  16. The Constant Money Supply standardizes the Money Unit as a standardized unit of measure.
  17. The standardized money unit is the constant unit of measure that defines production value of commodities, trades, goods and services.
  18. All money, value, energy, wealth, capital and power are created through and backed by production.
  19. The act of creating all money, value, energy, wealth, capital and power is done by Producers who are also laborers and workers.  All money, value, energy, wealth, capital and power are created through and by some form of labor or work.

“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 higher consideration.”   Abraham Lincoln

  1. Producers include executives, upper level management, middle level management, supervisors and all other individuals in an organization.
  2. All executives, upper level management, middle level management, supervisors and all other individuals in an organization perform labor and work.

Labor and work are mental and physical.  Executives use more mental labor and work.  Each position in an organization varies as to the amount of mental and physical labor used.  All production is created through labor and or work, no exception.

  1. All production is created through labor and or work, no exception.
  2. All prosperity is created through labor and or work, no exception.
  3. All executives, upper level management, middle level management, supervisors and all other individuals in an organization must create production with their own labor and work in order to receive money.
  4. Money received by any and all members of a producing organization must be met with an equal amount of production exchanged for the money.
Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
Revised  March 3, 2019

 

 

 

 

 

 

 

 

7. Symbol for Value and Energy

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Revised November 14, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

6. Review

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Revised November 14, 2013

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

2. Production and Prosperity

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Revised November 13, 2013

Production is the basic thrust of all mankind toward prosperity.  Production and prosperity go hand in hand.  Production by the Producer creates or generates prosperity.  Production enhances the prosperity of the Producer.  Production increases the Producers ability to exist.  The prosperity thrust of the individual demands production take place to forward the individual in his quest to exist.  This production has exchange value.  This exchange value is determined or generated by the needs and wants (demand) of each producer in the societies.  This exchange value is found to be inherent in what the individuals of each society have agreed to be defined as “their” money unit.

We will examine how money is created through production.  If one person produces milk, another person produces eggs, another produces coats, another produces computers and another producers cars.  We then have these people producing in their specialties.  Each of these Producers needs and wants (demands) the production created by the other Producers.  Each Producer needs and wants (demands) the production of other Producers for his or her prosperity, consumption or esthetic admiration and/or pleasure.

Producers have developed a system of exchange among themselves to accommodate their demands for each others production.  At first a barter system was set up where producers traded commodities, trades, goods and services with each other based on the value they assigned to each commodity, trade, good and service.  The value was generated by the amount of commodities, trades, goods and services available in respect to the demands for the commodities, trades, goods and services.  If there was an abundant supply of a specific good and the need was low for it, the demand was low.  A low demand would give a lower value for that good.  If there was a low supply of a specific good or service and the need for it was high, the demand would be high.  A high demand would give a high value for that good or service.

From this working together of need, demand and supply, the Producers worked out an exchange ratio among all commodities, trades, goods and services on the Market.  This ratio is the exchange relationship among all commodities, trades, goods and services on the Market.   The exchange relationship shows the number of times the value of one commodity, trade, good or service is contained within the other commodities, tradies, goods and services on the Market.  This is called the exchange rate.

We may find one hundred dozen eggs being traded for one coat, two dozen eggs being traded for on gallon of milk, fifty gallons of milk being traded for one coat, five hundred dozen eggs being traded for one computer, two hundred gallons of milk being traded for one computer or ten computers being traded for one car, etc.  These are the trading ratios which are being used by the Producers to achieve equity in product value when trading their products directly.  These ratios have established exchange value in terms of one product to another.

From this information or data it can be deduced that products have exchange value, generated by demand from Producers, which can be defined in terms of all other products.  In fact, all products created by Producers, throughout mankind, have exchange value which can be defined in terms of each other.

For example; one dozen eggs is equal in value to one/one hundred (1/100) of a coat.  One coat is defined to equal one hundred (100) dozen eggs in value.  One car is defined to equal one hundred (100) coats or ten thousand (10,000) dozen eggs or five thousand (5,000) gallons of milk or ten (10) computers.  We could define the exchange value of all production based on each product and determine how to exchange commodities, trades, goods and services based on that specific product.  The selected product could be dozens of eggs.  We could determine the exchange rate of all products based on the value of dozens of eggs.  As we can see this would be very unworkable.  The egg production would go wild. Everyone would be growing eggs as a short cut to having money.  This would lead to a constantly expanding medium of exchange (eggs) and a collapsed economic system.

Do you see how the value of commodities, trades, goods and services are determined on the Open Market?  One could go on and complete tables and tables defining the exchange value of each product produced by all members of mankind in terms of all other products produced by all of Mankind.  This becomes a very, very bulky and unworkable system.  We need some sort of simplification and standardization here.

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

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