Alstrynomics Lesson #4...Money and Gold are simply derivitives of Production
Human Production is the only thing with true intrinsic value........money and gold are simply derivitives or production......they are what people believe control human production.....and as long as people "believe"...they do and are an exchange for production.
But if you were isolated on an uninhabited island with all the money and gold in the world....without any other human production, the money and gold would be worthless other than serve as a weight or kindling for fire.
Once people stop believing in money and gold....they become worth very little or essentially worthless.
MONEY MUST BE A DERIVITIVE OF PRODUCTION OR ELSE WHY WOULD ANYONE WORK FOR MONEY WHEN THEY COULD JUST BORROW OR GET IT FROM THE GOVENRMENT FOR FREE?
And if the government could print up as much as they wanted....why would any nation that produced something exchange that production for money......that nation could print as much money as they wanted AND keep all of their production.
THE BEST EXAMPLE OF PRODUCTION LEADING TO PROSPERITY WAS AMERICA POST WW2.
Many have the misconception that it was the debt that took us out of Great Depression....that is completely wrong. IT WAS OUR PRODUCTION AFTER WW2 THAT TOOK US OUT OF THE GREAT DEPRESSION....we became the primary producer to the world for a few decades following the war as much of the world was destroyed.
The cost of WW2 was tremendous....tens of millions of lives......massive destruction....and horrors few can imagine.....if you really want to know, ask one the remaining few survivors who actually faced battle....most don't like to talk about it....but under the right circumstances....the tears will start flowing.
As this blog is written...governments are now getting cut off of credit....governments were the last pool of money driving production......now production is coming to a grinding halt around the world through cut backs in government spending and through natural and man made disasters.
It will be interesting to see whether this generation is willing to fight and die to allow its government, retired, and welfare recipients to try to continue to maintain their current lifestyle.
WITHOUT PRODUCTION OR ACCESS TO PRODUCTION....YOU HAVE NO FREEDOM....AS YOU ESSENTIALLY HAVE NOTHING!
At this point, in order to maintain its current and growing footprint, government has only two options as its citizens no longer produce enough to support it....take the remaining production of citizens or go out and fight to take the production of others.....
Guess which one is more likely and guess who will have to fight so politicians can maintain their lifestyles and fulfill their promises to their constituents?
IT IS SIMPLY THE LAW OF MONEY.....money must be a derivitive of production....and if you don't produce yourself, you must get/take production from someone else.