You Create Money

A Producer Rewarded Economic System

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

 

1.8 Producer, Non-producer or Counter-producer

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Revised November 17, 2013

This article is about establishing who is, a Producer, Non-producer or Counter-producer.  In this article we will look at the Axioms or tools we can use to determine if one is a Producer, non-producer or counter-producer.  These Axioms can also be used to determine if one is in the Capital Producing Economic System or in the Capital Destroying Economic System.

Axiom 9: A commodity, trade, good or a service is classified as a Product when it is:

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

B.     Needed and wanted and

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

When all of the above criteria are met the commodity, trade, good or service is a Product and the person creating the commodity, trade, good or service is a Producer.

When all of the above criteria are not met, the created commodity, trade, good or service is not classified as a product.  At best the individual creating the commodity, trade, good or service is a rewarded non-producer or a rewarded counter-producer.  The individual is a rewarded non-producer or counter-producer when he receives money without exchanging a commodity, trade, good or service on the Open Market for the money.  It is very important that all commodities, trade, goods and services be exchanged on the Open Market.  Demand for the commodity, trade, good and service on the Open Market establishes the correct value for the marketed commodity, trade, good or service.  This is the only way one can get the correct value established for the commodity, trade, good or service.  The correct value is translated into and expressed in terms of money units when the commodity, trade, good or service passes through the Open Market.

The individual is also a rewarded non-producer or counter-producer when he receives money for commodities, trades, goods and services that are not needed and wanted.  When there is no demand for a commodity, trade, good or service, the commodity, trade, good or service has no value placed on it.  It is the demand thrust or force, in the Open Market, which places monetary value on each commodity, trade, good or service.  When something is not needed and wanted there is no demand thrust or force placed on this something and this something has no value that can be translated into money units.  When one takes money for something that is not needed and wanted he is out exchange.  Individuals, rich to poor, who receive money for no production, are on welfare.  They are non-producers or counter-producers.

An individual is a counter-producer when money is taken in exchange for something that is harmful to the individual, the family, organization, society, nation, mankind and environments.  Counter-producers take money in exchange for destroying prosperity.

When all the criteria that classify a commodity, trade, good or service as a product are valid, the commodity, trade, good, or service is classified as a product.  The individual receiving money for them is a Producer operating in the Capital Producing Economic System.  When any of the criterion that classify a commodity, trade, good or service is violated, the commodity, trade, good or service is not a product.   The individual receiving money for them is a non-producer or a counter-producer operating in the Capital Destroying Economic System.

Axiom 10:      One does not decide to back money with production, production backs money.  Production gives money its value, energy, and power.

This Axiom is very, very basic to Economics.  It is a wonder this basic Axiom has not been emphasized ad nauseam in the education of Economics students and in the education of people in all societies.  This information should be known cold.  The citizens should know this like counting from 1 to 10 or like they know their names or the alphabet.  This truth is so simple and basic to the prosperity of the whole economic system.  Without it known, it is a wonder there is any economic existence on the planet at all.  This Axiom is as true and basic to economics as the Law of Gravity is to Physics.

I am severely, severely emphasizing this Axiom.  If everyone on the planet knew and could apply this Axiom. Production gives money its value, energy, and power it is unimaginable how much prosperity we would have on this planet.  Everyone would know how to create money, value, energy, wealth, capital and power.  Honest individuals would not take money without production exchanged for it.  The only individuals who would take money without production being exchanged for it would be criminals or the extremely handicapped.  Individuals would know how money symbols, pieces of paper and metal objects, get their value, power and energy.  A tremendous amount of confusion would be eliminated.

The counter-producers could be very easily detected.  Today they hide, because of the ignorance of the technology in economics.  The counter-producers hide and hold onto the money, slowing the money velocity flow.   They take money in exchange for destruction; they destroy the value, power and energy inherent in the money units.  The Producers create the value, power and energy residing in the money units.  The counter-producers destroy the value, power and energy residing in the money units; they suck the energy out of the money units and the society.  Whenever the money velocity is slowed; money value, power and energy is destroyed.  Wealth and capital are also destroyed.

Axiom 11:       A created commodity, trade, good or service is not classified as a product until that commodity, trade, good or service is marketed and sold on the Open Market.

 Axiom 12:       A commodity, trade, good or service is not a product if it harms the prosperity of the individual, family, organization, society, nation, mankind or environments.

 Axiom 13:       A commodity, trade, good or service that harms the prosperity of the individual, family, society, nation, mankind or environment is a criminal product.

 Axiom 24:       Producers are the main beams, support structures and back bone of a family, organization, society, nation, mankind and environments.  The prosperity of a family, organization, society, nation, mankind and environments rests on the backs of the Producers.

 Axiom 66:       If an individual is prospering and the individual is not producing, the individual is living off the backs of Producers.   This individual is lessening those producers prosperity as well as his own prosperity.  This is a rewarded non-producer or counter-producer on welfare.

Also, if an individual is receiving more money than he is producing in production value exchanged for it, he is partially living off the backs of Producers and is a rewarded non-producer or counter-producer on welfare.

 These Axioms cover individuals as Producers, non-producers and counter-producers from the poorest class to the wealthiest class.

The Producers create energy.  They use the energy they have created to create production.  The products are placed on the Market where an energy flow is generated.  The exchanging of commodities, trades, goods and services on the Market is, in its simplest terms, an exchange of energy for energy.

Energy flows are generated among all Producers participating in a Market. The Market becomes much like a living entity.  The energy flows of this Open Market entity are converted into Market forces directed by the ideas and agreements of the Producers.  The Open Market occupies space created by Producers for the purpose of exchanging commodities, trades, goods and services.  This space can be created anywhere, anytime producers meet and exchange commodities, trades, goods and services.

Each individual has his or her own space.  You probably have experienced, on limited bases, another individual’s space.  Recall interacting with another individual and how well you got along.  You actually made contact with their space and it meshed well with your space.  Your two spaces had a lot of agreement.  Also, recall interacting with another individual and how you didn’t feel good around that individual.  You contacted an individual with a space that did not agree with your space.  On Facebook and in life people tend to invite individuals with similar spaces to be their friends.

When we create a Market or an Open Market we are interacting with at least one other individual’s space.  A Market is the interplay of individual space.  You and your pace are interacting with from one to many other individual’s spaces by way of or through the physical universe.  The physical universe is the space that is common to all individuals.  We have it in common.  We see, feel and hear the physical universe.  Each individual’s space is pretty much off limits to the senses of others.  The physical universe is the medium we use, when we interplay our space with the spaces of other individuals.

Producers control their space and the physical universe.  Producers use their space to create models of the commodity, trade, good or service they want to create in the physical universe.  They interplay their space with the physical universe.  From this interplay the model is transferred to and created in the physical universe.  This is production.

Non-producers don’t create in their physical universe environment.   Producers compensate for this by allowing non-producers to have money for no production exchanged.

Counter-producers create destructive activities in the physical universe environment.   They create destructive activities against prosperity.   Counter-producers will create activities that cannot be classified as products.  Their activities will be based on false information, incorrect perceptions, desires to destroy, misunderstandings and not doing a thorough evaluation of the consequences of their creation.  Their personal space models used in creating destructive activities are also based on false information, incorrect perceptions, desire to destroy, misunderstandings and not doing a thorough evaluation of the consequences of their creations.

An example of not doing a thorough evaluation of the consequence of their creation is in the field of Nuclear Energy.  When a thorough evaluation of the field of Nuclear Energy is made it is shown that the radioactive waste material will be a menace to the survival and prosperity of the individual, family, organization, society, mankind nations and environments for thousands if not millions of years.  It will be impossible to seal and make safe all the radioactive waste materials for that long a period of time.  It is almost certain that survival and prosperity will be harmed many times by these radioactive materials until the radiating life of the waste material has expired. People can also Visit Website here if people are looking for waste management services.

The counter-producer will, in many cases, rabidly create models of destructive commodities, trades, goods and services.  He will rabidly stand by his destructive creations with great conviction and justification.  He will demand money and in many cases demand huge sums of money for his destructive creations.  Counter-producers usually know they are creating destructive commodities, trades, goods and services.

When Producers Market their production on the Open Market, they create more interplay between spaces.  They take their space and interplay it with one or several other Producer’s spaces through the medium of the physical universe.  Of course their products are located in the physical universe.  They are inter-playing, their spaces, with each other in order to exchange the commodity, trade, good or service on the Open Market.

This interaction by Producers, on the Open Market, when trading their production generates the energy in the Market.  This energy is symbolized by the use of money units.  This is where the individual, family, organization, society, nation, mankind and environments get their prosperity energy.

Counter-producers are creating a negative energy flow when they market destructive commodities, trades, goods and services.  They are taking money (energy) out of the Market with no energy in the form of true commodities, trades, goods and services placed on the Market.  Their commodities, trades, goods and services harm the prosperity of the individuals, families, organizations, societies, nations, mankind and environments.  This harm cuts down on the production level of the producers.  This reduces the energy generated in the Market.  The whole society, organizations, mankind, nations, families and individuals see their prosperity potential lowered.

Counter-producers also grab and hold onto energy and power in the form of money.  They slow the velocity of money energy.  Money is an energy flow.  When money flows increase though a society we see prosperity increasing.  When money flows are decreased or stopped we see prosperity decreasing.  The counter-producers grab and hold money, their game is to stop the flow of money.  They take money from the Producers working for them, in many cases, and place it into their pockets without a correct exchange for it.  They accumulate massive amounts of money, value, energy, wealth, capital and power without exchange for it.  They literally stop the flow of money, destroying value, energy, wealth, capital and power.  They take money in exchange for destruction.

We can see the importance of the existence of the Producer.  The Producer creates all of the prosperity one sees in the society.  He truly is the King of the planet.  He puts his attention on production.  He creates production in his mind (space) and translates it into the physical universe.

Throughout time the Producer has seldom received the correct exchange for his production.  The counter-producers have played a huge role throughout history in squashing the Producers.

With this information from Producer Rewarded Open Market Economics we can move forward in applying a workable economic technology.  This is a technology that will reward Producers.  When applying the technology of rewarding production we will create an incentive for everyone to BE a Producer.  Today we reside in an economic system that concentrates attention on rewarding non-production or counter-production.  The incentive today is to take money and wealth without production in exchange for it.  We can and must turn this attitude around so all who choose to produce will be rewarded for producing.  Rewarding production will give incentive for all to produce, moving all Producers toward great prosperity.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
April 22, 2012

1.7 Capital Destroying Economics

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Revised November 17, 2013

In the previous article we started to deal with the Capital Destroying Class of Capitalism.  We discussed the fact, earlier, that there are two classifications of Capitalism.  There is the prosperity creating classification and there is the prosperity destroying classification.  The prosperity creating classification is Capital Producing Economics.  Producer Rewarded Open Market Economics is a Capital Producing Economics System.   Capital Producing Capitalism is a Capital Producing Economics System.

The prosperity destroying classification is Capital Destroying Economics.  Capital Destroying Capitalism is in the Capital Destroying Economic System.  Communism and Fascism are also in the Capital Destroying Economic System.

Capital as used in economics means; the amount of money or property that a company or a person uses in carrying on a business.  Capital also means; national or individual wealth as produced by industry and available for reinvestment in the production of goods.

Destroy or destroying means:   1. to break to pieces; make useless; spoil; ruin:  2. to put and end to; do away with.  Destroy means: to make useless by breaking to pieces, taking apart, killing, or in any other of many ways. 

When non-producers and counter-producers take money without an exchange for it they cause the value, energy, wealth and power in money to be less.  Money loses purchasing power when non-producers and counter-producers take it without an exchange, of an equal production value, for the money.  Rewarding non-producers and counter-producers causes money to have less value and energy per money unit; they spoil and ruin the value and energy in money.  When Banks expand the money supply, they cause money to have less value and energy per money unit.  They spoil and ruin the value and energy money possesses.

The Capital Destroying Economic system is predominantly being used, today, on planet earth.  This system of Economics causes wild fluctuations between prosperity, recessions and depressions in the field of Economics.  Much confusion is caused when attempting to produce prosperity using Capital Destroying Economics.  It is a covertly destructive and chaotic system of economics.  Anytime prosperity is achieved, the Capital Destroying Economic system eventually goes into a self-destruct mode and collapses the economic prosperity.

This economic collapse is brought about by allowing non-producers and counter-producers into the Marketing system.  It is caused by allowing non-producers and counter-producers into the Money Supply.   This economic collapse is caused by believing we should allow rich and powerful people to take money without an exchange or not enough exchange for it.  An economic collapse is also brought about by believing we need people in the emotional states of chronic anger, hostility and covert hostility running our Companies, Corporations and Political Systems.  On the Planet today, people of the emotional states of chronic anger, hostility and covert hostility are mistaken for sane and able people.  After all, they appear to “know,” with such “force and/or smoothness!”   They appear to know what they are doing and they appear to be “right!”

People in the emotional states of chronic anger, hostility and covert hostility are destructive.  They, because of their negative emotional state, are non-producers and counter-producers.  Their product is the destruction of the companies they work for and the countries they run politically.  They are destroyers of Capital!  They hire and promote people of their own emotional state; chronic anger, hostility and covert hostility.  The companies, corporations and nations that do prosper, prosper despite the counter-efforts of the leaders in the emotional states of chronic anger, hostility and covert hostility.

They prosper because they have a few Super Producers working in key positions in the Organizations.  These Super Producers make production happen despite anything.  They are very able individuals; they don’t let the destructive leaders destroy the Organization.  They produce and produce and find ways to get around the counter-efforts of the destructive non-producing and counter-producing leaders.  Usually they get promoted to a certain level and don’t get promoted any farther even though they carry the Organization on their backs.  The destructive non-producers and counter-producers leading the Organizations; believe it is leading by anger and hostility that is causing the success of the Organization.  When the Super Producers leave the Organization, the Organization collapses. The destructive non-producing and counter-producing leaders can’t understand what caused the collapse.  They are usually clueless because they live off the back of the Super Producer.  They are unaware the Super Producer was the key to the organizations success.  The destructive non-producers and counter-producers have their attention on destructive activities.  They don’t notice constructive activities in progress.

You can spot the chronically angry, hostile and covertly hostile person (leader or worker) by observing how they communicate and by what they do in their activities.  They communicate in general terms.  They are very often out sequence and non-sequitur in their discussions.  They can be very literal in their interpretation of a piece of communication.  They can be found involved in excessive alcohol and drug use.  They can be found to be involved in unusual sex practices, such as with prostitutes and with many partners.  The Producer and Super Producer will overlook and compensate for the faults of the chronically destructive leader and worker.  Meanwhile the company, corporation or nation suffers and follows an economic decline as money, value, energy, wealth, capital and power is destroyed.  The destructive leaders destroy prosperity.

In many Organizations on Planet Earth; when you find the Organization prosperous, you will find a few Super Producers holding it up despite all the counter-efforts of the destructive leaders and workers in the Organization.  In many Organizations on Planet Earth you will find a Super Producing Leader maintaining a high prosperity level despite the counter-efforts of some destructive non-producing and counter-producing workers inside the Organization.

Steve Jobs is an example of a Super Producing Leader.  The Board of Directors of Apple fired him.  The company almost died.  He came back and brought it back to prosperity.  When you find an Organization being led by Super Producers, the Organization is usually doing very well.  The trick is to get all positions in an Organization filled with Producers or Super Producers.

Over many, many years, Capital Destroying Economics has brought about much suffering and hardship for many people, organizations, families, societies and Nations.  Capital Destroying Economics in its basic form rewards non-production and counter-produces.  It provides for the concentration of wealth along with the power derived from wealth to be placed into the hands of a small group of non-producers and counter-producers.  These non-producers and counter-producers have not created products that can be exchanged on the Open Market for the wealth.

Capital Destroying Economics provides for the transference of wealth, created by the Producers and Super Producers in an Organization.  The wealth is transferred from the Producers and Super Producers into the hands of the chronically destructive leaders of an Organization.  Wealth is also transferred from the Producers and Super Producers into the hands of all other non-producers and counter-producers existing in an Organization.

The concentration of Capital into the hands of a few non-producers and counter-producers has given them tremendous power.  They have used this power to take over the political system. With these political systems, Communism, Fascism, Right Wingism and even Left Wingism, they establish laws that create a legal structure they use to funnel much of the Capital created by Producers into their hands.

Production is the action of doing and converting energy into a product.  Marketing is the action of exchanging products for products among Producers. This is basic Marketing; exchanging products for products.  Barter is exchanging products for products.  In more advanced Marketing, Products are exchanged for money units. When products are exchanged for money units, money units are being used as a medium to transport value from the product.  We take this one step further; we say money is also a symbol in which the energy generated to create products is transported to the money unit during Marketing.

The energy used to create the products continues to flow in a society as long as products are “always” exchanged for money units.  More and more energy is being created and added to the Open Market.  As this energy level grows we see money velocity increase.  This increase in money velocity means money is changing hands more rapidly in the society.  This energy can be felt when a society achieves prosperity.  The individuals and the society are much more alive and vibrant.  Non-producing and counter-producing Capital destroyers don’t like this high energy level.  Producers love this high energy level, they revel in it!

When money is taken from the Market with no exchange in production, energy is being removed from the Market.  When this energy is removed from the Market it gets destroyed disappears or vanishes.  The money units, that are the symbols for this energy, lose value.  This is where money (Capital) gets destroyed.  Money velocity slows.  Money value and the amount of energy in each money unit decreases.  A recession starts, if ever so slightly.  With the out-exchange increasing, more and more money value or money energy (Capital) gets destroyed.  Money loses value and energy causing money velocity to slow.  Money value and energy, as Capital, is being destroyed.  All other forms of Capital start to lose value.  What we are describing here is a state of Capital Destruction.

Banks expanding the money supply, speculators who exchange nothing for the huge sums of money they take are huge destroyers of Capital.  Excessive military spending and wars are huge destroyers of Capital.  Any out-exchange activity is a destroyer of Capital.  Monopolies are destroyers of Capital.  Many of the most ardent advocators of Capitalism practice Capital Destroying Economics.  They are engaged, in a big way, in the destruction of Capital.

You ask, “Why is Capital Destroying Economics so destructive?”   Capital Destroying Economics destroys prosperity, it eats up wealth and Capital, it consumes prosperity until a society literally dies and if it doesn’t totally die out it causes tremendous hardship and suffering.

Examples of Capital Destroying Economics at work can be found around the world and throughout history.  Almost all wars are the result of Capital Destroying Economics at work.  The depressed conditions of Third World Nations are traced to practices of Capital Destroying Economics.  The current Great Recession of 2008 is the result of Capital Destroying Economics being practiced.  Communism is a Capital Destroying Economic System developed as a solution to past practices of Capital Destroying Economics.  Communism came into existence as an answer to Capital Destroying Capitalism.  Desperate people under the rule of the Capital Destroying class of Capitalism agreed to accept Communism.  They had two choices, death or Communism.  They chose Communism which wasn’t any better than Capital Destroying Capitalism.  They are still mired in a Capital Destroying Economic system.  Communism is a Capital Destroying Economic System.  They went from one Capital Destroying Economic System into another Capital Destroying Economic System.

Now that we have seen the consequences of Capital Destroying Economics we can see why we need to insist on working toward a pure Capital Producing Economic System.  It is self evident that Capital Destroying Economics slows money velocity and destroys Capital.  It also is self evident that Capital Producing Economics, Producer Rewarded Open Market Economics, increases money velocity, increases the value and energy in Capital and money and leads to abundant prosperity.

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

1.6 Why Money Velocity Slows

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Revised November 17, 2113

We are talking about money velocity here.  We are talking about why money velocity slows and why it speeds up.  Money velocity is the flow of energy.  It flows throughout a society.  Money is a symbol that represents production value, production energy and production power.  It also represents wealth and capital.  In this article we will look at money as a “symbol of production energy.”  Production energy is the prosperity energy for an individual, family, organization, society, nation and mankind.  In a society, money velocity increases and decreases depending on the production level of the society.  Money velocity also depends on the Producers pay or reward for their production. When rewarded production increases, money velocity increases.  When production decreases, money velocity decreases.  When production increases and the Producer is not rewarded for creating the production, money velocity decreases. When rewarding non-producers increases, money velocity decreases.   Money velocity is the rate at which money changes hands in a society.   Money velocity is the rate at which money energy flows through a society.  The faster the rate of money energy flow, the more prosperity there is in a society.

  •  AXIOM 151:  Money velocity is the rate at which money changes hands while being exchanged on the Open Market for products (commodities, trades, goods and services.)
  •  AXIOM 151.1:  As the flow of money energy increases through the hands of the people in the society when buying and selling products (commodities, trades, goods and services), their affluence level increases.
  •  AXIOM 152:  Increased production efficiency increases money velocity.

 Early in the research and writing of Producer Rewarded Open Market Economics there has been much attention placed on the rewarded wealthy non-producers and counter-producers.  There has been much attention placed on the catastrophes caused by rewarding wealthy and powerful non-producers and counter-producers.   The wealthy and powerful non-producers and counter-produces cause great destruction.  However, all forms of rewarding non-production and counter-production harm individuals, families, organizations, societies, nations, mankind and environments.  As we move into the future we will work on perfecting the Producer Rewarded Open Market Economic System.   Producers will become more aware of the consequences of rewarding all non-producers and counter-producers.  This awareness will allow us to prevent non-producers and counter-producers from taking money without an exchange for it.  The exchange must be in self-created products.  We will work at perfecting the Producer Rewarded Open Market Economic System.  We will work with the purpose of having a tremendous prosperity potential for all individuals, families, organizations, societies, nations, mankind and environments.

Other than natural and “God” given causes, the only reason why money velocity slows down and societies find themselves in recessions, depressions and chronic depressions stems from and only from rewarding non-producers and counter-producers.  This is the action of giving money to non-producers and counter-producers who place no production or not enough production on the Open Market in exchange for the money.  The action of rewarding non-producers and counter-producers is giving them money energy with no exchange for it.  This is allowing them to take money with no or not enough production on the Open Market in exchange for this money energy.  The action of placing money energy into the hands of non-producers and counter-producers brings about the destruction of money, value, energy, wealth, capital and power.  This destruction of money, value, energy, wealth, capital and power slows money and energy velocity rates in a society.  Recessions and depressions expand and grow deeper as rates of money and energy velocity slow down.

This type of economic practice is classified as Capital Destroying Economics.  Capital Destroying Capitalism is in this classification.  Capital Destroying Capitalism is the destructive part of Capitalism.  Capital Destroying Capitalism is in the classification of Capital Destroying Economics.    

Remember there are two classifications of Capitalism.  They are the prosperity creating types and the prosperity destroying types.   They are  Capital Producing Capitalism and Capital Destroying Capitalism.  The Prosperity creating types are classified as Capital Producing Economics.  They are Producer Rewarded Open Market Economics and Capital Producing Capitalism.

The prosperity destroying types are classified under Capital Destroying Economics.  They are Capital Destroying Capitalism, Communism and Fascism.  The reason the name Capital Destroying Economics was given was because rewarding non-production and counter-production literally destroys money, value, energy, wealth, capital and power.  This destruction brings about the destruction of Producing individuals, families, societies, nations, mankind and environments.

On inspection we find Communism, Fascism as well in the destructive classification of  Capital Destroying Economics.

This destructive classification of Capitalism, where wealth is concentrated with its power and influence into the hands of a few non-producers and counter-producers, causes great hardship and suffering.

Communism and Fascism are also destructive systems of economics.  These two systems also concentrate wealth with its power and influence into the hands of a few non-producers and counter-producers.  This activity also leads to great hardships and suffering.

What do these three destructive economic systems; Capital Destroying Capitalism, Communism and Fascism;  have in common?  The have a money velocity that is flowing very slowly.  Their citizens are living under great hardship and suffering.  They are mired in prolonged economic depressions.

We find, in the above three systems, the few powerful non-producers and counter-producers tend to be hiding.  The money, energy and power are concentrated into their hands.  They use it to have a tremendous influence on their societies and nations.  They use it to set up systems where they can take more money, value, energy, wealth, capital and power without exchanging production for it.  We find these rewarded non-producers and counter-producers hiding. They hide, grab and hold onto the money, value, energy, wealth, capital and power.  They horde and stop the flow of money energy.  They grab and hold onto material objects (Materialism.)  They become the money and objects they worship.  They become their expensive cars, boats, airplanes, houses and other material objects.  It could be said, “These rewarded non-producers and counter-producers are hiding in or as their objects!”   They hide grab and hold.  Their purpose is to stop the flow of money energy.  They have a tremendous negative effect on money velocity and prosperity in their societies.

These rewarded non-producers and counter-producers are hard to spot.  They hide, grab and hold onto money energy, production energy and prosperity energy.  They seldom stand up and admit their true purpose.  Instead they will hide behind other issues such as a balanced budget, abortion, gay rights and “create” enemies of the state to take attention off their real purpose.  They will argue issues such as abortion and gay rights.  When they get to power they will not handle these issues when they have the power to do so.  When in political power they will assert their hidden purpose.  Their hidden purpose is to concentrate more money, value, energy, wealth, capital and power into their hands.  They grab and hold more money, value, energy, wealth, capital and power.  They will use the enemies they “create” to promote war.  War is another means for the non-producers and counter-producers to transfer more money, value, energy, wealth, capital and power into their hands.  They steal the prosperity energy and production energy from the Producers.  They steal the value, energy, wealth, capital and power from the Producers.

We find long recessions and depressions.  We find a slowed money velocity.  This is caused by moving wealth from Producers.  The wealth is placed into the hands of a few powerful non-producers and counter-producers who have not created it.

There are tools to determine: What is production and what is non-production?  What is counter-production?  Who are the Producers? Who are the non-producers?  Who are the counter-producers?  There are tools to determine whether we are Capital Producers or Capital Destroyers.

What is a Product?

 A commodity, trade, good or a service is classified as a Product when it:

A.     is marketed on The Open Market (open to all on equal terms,)

B.     is needed and wanted and

C.     does not harm the prosperity to the  individual, family, organization, society, mankind, nation and/or environment.

Or it can be more fully explained by saying, “it causes the greatest prosperity to the greatest number of people.”   Another way of saying it is, “it causes the least harm to the greatest number of people.”

DEFINITION OF A PRODUCER:

AXIOM 23:  A Producer is a person who:

A.  Creates a commodity, trade, good or service,

B.  The commodity, trade, good or service must be needed and wanted,

C.  The commodity, trade, good or service must be marketed on the Open Market (open to all upon equal terms) and

D.  It must enhance or should not destroy the prosperity of the individual, family, organization, society, nation, mankind and environments.

AXIOM 24:  Producers are the main beams, support structure and back bone of a society and a Nation.  The prosperity of a Nation rests upon the backs of the Producers.

There is only one way to achieve optimum money velocity and be a Capital Producer and that is to reward the Producers of production.  There are many, many ways to place a drag on money velocity other than natural causes.  They all come down to rewarding non-production and counter-production.  Non-producers and counter-producers are the destroyers of capital, money, value, energy, wealth and power.

We can use the Technology in Producer Rewarded Open Market Economics to create and expand our prosperity creating economic system on this planet.  In the past we have been subject to the grab and hold (hoarders) running our economic systems.  This has always slowed money velocity bringing about recessions, depressions and wars.  The Producers have always sought to create money, value, energy, wealth, capital and power.  The Producers have always sought to increase the money velocity.  They have sought ways to make sure everyone who produced received their production value and production energy in exchange for what they have created.

As Producers, we can move forward with confidence, knowing what we are doing is correct and very right!  We can confidently move forward producing prosperity,  energy, wealth, capital and power for ourselves, families, organizations, societies, nations, mankind and environments.

Producer Rewarded Open Market Economics
The Science of Economics
By: RP Obrigewitsch
March 4, 2012

2.02 Attention Vacuum and Producers

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Revised November 2, 2013

Part II

Getting back to the attention vacuum left behind, the Producers generate energy to be used in their production.  It is important to secure their attention vacuum.  This attention vacuum leaves an opening for the non-producer and counter-producer to move in and steal the money, value, energy; wealth, capital and power the Producers create.  Non-producers and counter-producers have lost their ability to produce energy that can be used in the production of commodities, trades, goods and services.  When they get into this vacuum they can piggyback off the Producer and steal the produced energy, money, value, wealth, capital and power the Producers have created.  They invest this stolen money-energy to take over control of political systems. 

The Producers have their attention focused on the action of production.  Their attention is placed into the future.  They have left their attention vacuum unsecured.  Producers are honest and trusting individuals.  They believe everyone is honest and trusting.  This is where they get into trouble with the non-producers and counter-producers.  They have left in their attention-vacuum an opening for the non-producer and counter-producer.  These non-producers and counter-producers occupy the vacuum left behind by the Producer.  The non-producer and counter-producers will tell any type of lie or create deception (smoke and mirrors) to convince the Producer the non-producer and counter-producer is honest and trusting.  Usually the Producer discovers the non-producer and counter-producer very late.  This is when the economic system starts to recede.  Even then the non-producers and counter-producers flash their deceptive smoke and mirrors.   They select the Producers as the reason why the system failed.  The non-producers and counter-producers will attempt to pin the economic failure on the Producers. 

A major part of what has filled the vacuum is the rewarded non-producer/counter-producer political system.  They use this political system to control the Producer Society.  The Producers have made a major omission.  They have failed to secure their attention-vacuum.  The Producers can secure their attention-vacuum by taking full responsibility for ALL the money, value, energy, wealth, capital and power they have created.  They can secure themselves by knowing and applying the Producer Rewarded Open Market Economics technology along with the Technology of Democracy.   With their attention-vacuum left unsecured, Producers have, many times in the past, been made into SLAVES.

Many people today have a very high dislike for government and politics.  This is because the political system to a large part is a system owned and operated by the non-producer/counter-producer for the gain of the non-produce/counter-producer on the backs of the Producer.  It should be stated more correctly; the political system, today, is a system owned and operated to a large part by the non-producer/counter-producer, for the destruction of the non-producer/counter-producer and the Producer.  This is why people dislike the government and politics today.  They don’t like to be lead down the non-producer/counter-producer path of destruction.

The following Axiom has been noted in the past: any time non-production is rewarded a society tends toward recessions and depressions.  The corollary would be: any time production is rewarded a society tends toward prosperity.

It is very important to remember that the prosperity of every person on the planet is tied to all other individuals on the planet.  We are all tied together economically.  The Market and the trading of commodities, trades, goods and services on the Market is what tie us together.  Anytime anyone on the planet places a demand for commodities, trades, goods and services on the Market it affects the value of all other commodities, trades, goods and services.  It also affects the value of all money throughout the world.  Anytime anyone on the planet places newly created commodities, trades, goods and services on the Market it affects the value of all other commodities, trades, goods and service and the value of money.  Anytime money is taken without an exchange of production for it, this out-exchange action decreases money value and increases product value.  The Producer loses purchasing power.  The non-producer/counter-producer has stolen the Producers’ purchasing power.  We are all connected economically whether we want to be connected or we don’t want to be connected.

If we, all on our own accord, follow the natural laws of economics and politics we will all prosper abundantly.  When we allow non-producers and counter-producers into the economics system and into the political system, we will all tend downward toward economic collapses.

Anytime an Economic system is tending downward you can bet there are non-producers and counter-producers in the political power mix.  Anytime a political system is frustrated and upset you can bet there are non-producers and counter-producers in power stealing money, value, energy, wealth, capital and power from the Producers.

Producers are good and trusting individuals.  It is unreal to the Producer that anyone would carryout the destructive activities non-producers and counter-producers are capable of carrying out.  During a recession or a depression, when the Producer finally discovers the destructive activities of the non-producer and counter-producer he/she has a deep economic hole out of which to crawl.  First, the Producers have to find the correct cause of the economic recession.  This is tough because the non-producers and counter-producers works 24/7 discrediting everything the Producers find as the cause of the economic problem.  When the correct reason for the economic recession is found and enough Producers are convinced of it, they have a whole non-producer/counter-producer operated political system to overcome and correct.  When they have overcome and corrected this non-producer/counter-producer political system, the Producers can expand the economic system towards prosperity again.  They can expand the economic system by applying the Technology of Democracy and Producer Rewarded Open Market Economics a Capital Producing System.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
February 22, 2012

 

1.5 Production Efficiency

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Revised 11-16-13

Efficiency is the ability to create production without the waste of time and energy.  Production efficiency is a much sought after goal.  This means the Producer’s, the Laborer’s or the Worker’s goal is to produce the same commodities, trades, goods and services in less time and with less energy than was done before.  Producers have an innate drive to increase production efficiency.  Non-producers do not have an innate drive to increase production efficiency.  Non-producers waste time and energy.  Counter-producers thrust against increasing production efficiency.   They try to operate with less efficient methods.

Production efficiency plays a large part in money velocity and in prosperity.  Anytime Producers can increase their production output their income will rise.  Their income will rise provided the producers of the increased commodities, trades, goods and services receive all of the increase in money, value, energy, wealth, capital and power they have created with this increase in production.

When non-producers and counter-producers are allowed to take this increased money and wealth, an increase in prosperity for the Producing individuals and the society will not be realized.  We are currently witnessing the result of this rewarding the non-producers and counter-producers phenomena in the United States and all around the world today in 2012.  I am talking about the phenomena of allowing the non-producers and counter-producers to take the wealth and money which was created by the Producers.

Allowing non-producers to steal the wealth created by Producers, Workers or Laborers has a very destructive effect on the Producers and the society.  It tends to squash the incentive of the Producers.  It is not good for the prosperity of the individuals, family, organization,  society,  Nation and Mankind.  Allowing the non-producers and counter-producers to take the wealth created by the hard work of the Producers drives the Producers into apathy.  When rewarding the non-producers and counter-producers continues too long, or in a more extreme pattern, desperation sets in among the Producers.  This results in demonstrations, riots and the overthrow of governments.  History has examples of these results of rewarding non-producers and counter-producers.

During the past 30 years the production efficiency for the Producers in the United States has greatly increased.  However, income has risen very little, if at all, over that same time period.  This country is in a great recession.  This recession is a manifestation of allowing wealthy non-producers and counter-producers to take the money and wealth created by the Producer’s increased production efficiency.

It is important to remember that Labor and work create money, value, energy, wealth, capital and power.  Labor and work are senior to money, value, wealth, capital and power.  All Producers are Workers and Laborers.  If a person is taking money and is not a Producer, Worker or a Laborer he/she is a non-producer or a counter-producer.  Non-producers and counter-producers have this concept of “Labor and work creates capital” reversed.  They believe capital is senior to Producers, Workers and Laborers.  It is self-evident that capital does not create Production, Work or Labor.  Capital by itself has no productive action and no life.  Labor is alive and Labor puts the action into production, labor is life.  Capital is used by Producers, Workers or Laborers to produce and prosper with.  Labor puts the value, energy, and power into capital.  Producers, Laborers or Workers prosper by using capital to create new production.

“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.”  Abraham Lincoln

In Producer Rewarded Open Market Economics, production efficiency increases money velocity.  This is when the Producers receive the newly created money.  If non-producers and counter-producers receive the newly created money, money velocity tends to decrease.  Anytime non-production and counter-production is rewarded money velocity decreases along with morale and production.  Producer Rewarded Open Market Economics Technology, when applied, brings about a prosperity thrust (incentive) within the producing individuals.  This prosperity thrust (incentive) tends to create technological advances in production, production efficiency and in new more advanced types of prosperity creating commodities, trades,  goods and services.   This prosperity thrust (incentive) creates new more efficient methods of production.  It also increases money velocity.  The increased money velocity increases the prosperity levels in the societies applying Producer Rewarded Open Market Economics Technology.

As production efficiency increases it leads to increased money velocity.  Rewarding the Producers of the commodities, trades, goods and services increases money velocity and production efficiency.  Rewarding non-producers decreases money velocity, production efficiency and prosperity.

Increases in production efficiency bring about increases in per capita production.  Increases in per capita production places more commodities, trades, goods and services on the Open Market.  This action speeds up the money velocity, leading to increases in prosperity.  The faster or swifter this flow becomes the more prosperity we see in a society.

The money velocity cycle, if increased, will bring about greater affluence and prosperity.  If the money velocity cycle is decreased, recessions and depressions will be the result.  Slight decreases in money velocity bring about recessions.  Greater and greater decreases in money velocity bring about deeper and deeper recessions and eventually will lead to depressions.

Producer Rewarded Open Market Economics
The Science of Economics
By: R P Obrigewitsch
January 29, 2012

6. Free Market, Non-existent!

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Revised November 18, 2013

The Free Market today is almost non-existent.  It is buried beneath all the destructive schemes, dreamed up by non-producers and counter-producers.  They use their destructive schemes to take money without an exchange for it. The Market is there working like it should be working.  It is establishing value for commodities, trades, goods and services that get placed on the market.  However, the market is covered in a shroud of unethical, immoral, and lawless schemes.

This shroud is composed of monopolies and  government sanctioned monopolies.  It is also composed of schemes of speculation that involve no production.  Government subsidies, welfare for the rich and welfare for the poor are also part of this shroud.  This shroud also includes massively over allocated military spending.   People who hold positions and do not produce at all or produce less than the money received in pay are a part of this shroud.  Other areas covered in this shroud are other massively wasteful government programs, people in power receiving huge amounts of money with no or not enough production in exchange for it; illegal drug trade and excessive unneeded legal drug trade.

The shroud includes individuals in governments.  They sit in a position of power, redistributing the money, value, energy, wealth, capital and power away from the Producers.  They placing it into the hands of non-producers and counter-producers.  Capital Destroying Capitalists, Communism, Fascism, Right Wingism and Left Wingism have as their central thrust to redistribute the money, value, energy, wealth, capital and power of a nation.  They place it  into the hands of non-producers and counter-producers.

When you study the Market you will see through this shroud and see the Free Market working.  It is a Market, after all.   “All Markets have supply and demand forces at work establishing the value for all commodities, trades, goods and services on the Market!”

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
December 4, 2011

1.1 The Money Velocity Cycle

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revised November 16, 2013

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  Money velocity is the rate at which money changes hands in a society, nation and all mankind.  Money velocity is the speed of flow of money.  It is about how rapidly money passes through the hands of individuals in organizations, societies, nations and mankind.  Prosperity results with increased money velocity.  Recessions and depressions result when money velocity decreases.  In societies and nations were there is much non-producer and counter-producer rewarding the money velocity in the money velocity cycle slows.  These societies’ and nations’ economic systems recede into depressions.

In order to develop a better understanding of money velocity and the money velocity cycle we will define velocity.  We will also look at Axioms related to money velocity and the money velocity cycle.

The definition of Velocity (Thorndike Barnhart, World Book Dictionary.)

Velocity:  N. 1. Quickness of motion; speed; swiftness; rapidity.  2.  rate of motion in a particular direction.  3.  the absolute or relative rate of operation of action.   Adj.  of or having to do with the rapidity of rate of motion or action: velocity ratio.

Derivation [< Latin Velocitas < Velox, Ocis  Swift]

 The following three Axioms will cover money relating to how money has velocity.  I have discussed earlier that money is a symbol.  It is a symbol that represents value which is created by you the producer of commodities, trades, goods and services.  It is also a symbol that represents energy.  This is the energy you create or generate and convert into commodities, trades, goods and services as you create them.  Therefore, money is a symbol, it represents the value of commodities, trades, goods and services you have created.  The value of the commodities, trades, goods and services is established when they are exchanged on the market.  The market must be an Open Market.  The Open Market must be open to all on equal terms.  Money, you receive in exchange for the created commodities, trades, goods and services you place on the Open Market, also represents the energy you create and convert into commodities, trades, goods and services.

I am going to be talking about this energy as it flows throughout the society, nation and mankind.  All people on the planet are connected together through this energy that money represents.  If a person is alive, no matter how much or how little, they have money energy flowing through them.  Only when they are dead does money energy cease to flow through them.

  • Axiom 151:  Money velocity is the rate at which money changes hands while being exchanged on the Open Market for commodities, trades, goods and services.
  • Axiom 151.1:  As money velocity increases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level increases. 
    • There is a corollary (corollary 1) to this Axiom: As money velocity decreases while flowing through the hands of the people in the society, when buying and selling commodities, trades, goods and services on the Open Market, their affluence level decreases.
  • Axiom 152:  Increased production efficiency increases money velocity.
  • When people get more efficient in production, they produce and place more commodities, trades, goods and services on the Open Market in a given period of time.  With more commodities, trades, goods and services entering the Open Market in a given period of time, more money changes hands over that period of time.  Here we see money velocity increase, which in turn increases prosperity.

The money velocity cycle is an action that occurs over and over again daily, weekly and yearly in a producer rewarded Open Market society.  In a non-producer and counter-producer rewarded society this cycle dies as does the society.  The American Indian societies, as they were known, died out because their ability to produce was shut down due to the intrusion of Immigrants across the Indians production territory.  Their money velocity decreased as their production levels dropped.  The Indians used money in the form of shells, beads etc.  They also used a barter system.  The use of a barter system also has velocity, it is called barter velocity.

We find the frequency of the money velocity cycle increase and decrease depending on the production level and producer pay or reward in the society.  When the money velocity cycle speeds up, the society becomes more affluent and prosperous.  When the money velocity cycle slows down, the society becomes less affluent and prosperous.

Money velocity gets its rates of motion from the level of production occurring in the society and the producers receiving all the money they have created in producing commodities, trades, goods and services.  When producers receive more money than they have created in their production they are receiving money that has been created by other producers.  This causes a decrease in money velocity and prosperity in their society.  When producers are paid less than their production is worth money velocity and prosperity in that society will decrease.  When producers are paid their productions worth, in money units, money velocity and prosperity are optimum.

During the first part of the money velocity cycle, commodities, trades, goods and services flow to the Open Market in exchange for money.  During the second part of the money velocity cycle, money flows to the Open Market for the purchase of commodities, trades, goods and services.  There is a continuous and varying velocity flow of money and commodities, trades, goods and services to and from the Open Market.

 The best way to get the optimum (best or most favorable) rate of motion in money velocity is to pay only those people who have produced and placed commodities, trades, goods or services on the Open Market.

Producer Rewarded Open Market Economics
The Science of Economics
By RP Obrigewitsch
April 4, 1993
Rev. August 22, 2011