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alstry (36.17)

Alstrynomics Lesson #4...Money and Gold are simply derivitives of Production

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June 06, 2010 – Comments (6)

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.

6 Comments – Post Your Own

#1) On June 06, 2010 at 4:54 PM, alstry (36.17) wrote:

Any guesses when Donner will step in and correct my spelling of derivatives in the title.....?

it is sorta strange to focus on spelling when everyone's wealth and perceived wealth is simply a deritivative of their ability to enforce contracts calling for the production of another or anothers willingness to accept deriviatives for their production.....

once stones were a derivative of production....

then it was gold and silver......

sex has always been a strong value of exchange.....

gold and silver certificates worked for a while.....

than fiat money was very acceptable in high social circles...

what could be next....knowledge and the capacity to productively implement it?....maybe digital currency?

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#2) On June 06, 2010 at 6:02 PM, Starfirenv (< 20) wrote:

Maybe he's shopping "market to market"

Maybe he's been "Mamed"
http://www.youtube.com/watch?v=Tzg_1XwzG08

Maybe he already did.
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=402030&t=01002130057764754273

Al- did you know that Dim Sum is a derivative?

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#3) On June 06, 2010 at 6:22 PM, alstry (36.17) wrote:

Actually, it is the end product of man's production....

often exchanged for money...

where things get interesting is if the producer of dim sum does not accept money for the product of his or her work.

Then force may be the only alternative....some call that slavery.

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#4) On June 06, 2010 at 6:37 PM, Starfirenv (< 20) wrote:

"Actually, it is the end product of man's production...."
So is a "Turd in a punch bowl"- hey, another derivative. Don't be that turd. Spend more time with your kids and never lose your sense of humor. "Thus  Spoke Starstrydomous".

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#5) On June 06, 2010 at 9:22 PM, alstry (36.17) wrote:

The turd is not production.....it is simply an act of nature as found with animals in the woods.....however the food that triggered the turd would be production

The punch bowl is also production......the money or gold used to buy the bowl would be the derivitive

As for playing with my kids....they are getting sick of me....that is why I am starting up a new dot.com.

I just watched my daughter win the Presidential Physical Fitness award despite her paternal genetic handicap.....and my son bats fourth on his baseball team, and except for the Greek kid in his class who is a man child with similar physical attributes as my buddies that played pro sports for over 15 years each....my kid runs the 50 faster than anyone else even with his dad cheering on at the finish line every race....

Crazy, Alstry's buddies are ex pro athletes, Alstry's kids hold their own, Alstry's business partner competed in triathalons, Alstry's law partner shoots scratch golf.....and Alstry...he finds it taxing picking up a good cigar and enjoying every puff.

As production gets lower and lower....the liklihood of war gets higher and higher....man must produce....whether he likes it or not......

MAN CANNOT LIVE BY DEBT ALONE

DEBT POISED TO OVERTAKE GDP

Credit Rating Cut on Wealthiest U.S. State...

AT SOME POINT, HE WILL BE FORCED TO FIGHT

IRAN OFFERS ESCORT FOR NEXT GAZA CONVOY...

 

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#6) On June 17, 2010 at 2:33 PM, elfman2 (< 20) wrote:

"AT SOME POINT, HE WILL BE FORCED TO FIGHT"

I suspect it'll happen somewhere around September 2001 ;^)

I don't expect a majority to commit to anything more when our future ability to supply them is so in doubt. So Israel's more or less on their own.... kind of...

I came across your post while investigating the serviceability of the national dept (trying to figure out how inflation affects 15 vs 30 year home refinancing)

But in line with your concern, if this blog's spreadsheet is representative our future, the only thing that's predictable is that there's going to be some kind of massive change in response.

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