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alstry (< 20)

Prepare...Don't Fear



April 10, 2011 – Comments (0)

The Logic Of Alstrynomics:

Human existence and civilization is simply the exchange of production between humans.  Production comes in many forms with the most common being goods and services.  There are three primary ways one human can get the production from another:

1.  Love/Volunteer.....getting production for free with nothing expected in return (IE a mother's care for her child)

2.  Barter/ based on direct trade or a derivative such as gold or currency(this is competitive exchange between two willing participants)

3.  Force/War/Slavery/Theft......using immoral means to obtain the goods and services of another(only one party is willing to trade in this relationship and the other is unwilling or would be unwilling if the trade is by deception)

Money is simply represents a unit of production, and under present political/legal systems, created by the soverign by consent of the people.  By definiton, in order for money to be legal/moral, it must be CREATED directly from production or the reasonable expectation of production(a loan)....otherwise, the Soverign's simply printing money out of thin air is the functional equivalent of counterfeiting.

If a soverign could simply print money without consequence.....every one would print as much as it could and give it to its people to pursue prosperity.

However, the market would never accept such behavior and within a relatively short period of time render that currency worthless.

America was bestowed the honor of having its currency the reserve currency of the world because America was the primary producer of the world and its soverign and the Fed maintained the integrity of the dollar for many decades.

Until...............9.09..........when it became the accepted policy of the U.S. and the Fed to allow our currency to simply be printed out of thin air not backed by production or the reasonable expectation of production.

At that point, there was only one thing left backing the dollar, and that was the use of force and the connection of the dollar to oil.  As long as the American dollar could be converted into a bbl of oil, the dollar would still function in trade.

However, if the printing continued for a protracted period of time, it was only a matter of time before nations would eventually stop accepting the dollar for oil and trade....and when that happened, America would only have one choice left, force other nations to accept our currency for trade.......

and eventually WW3 would begin......a war to be the mother of all wars.........and when its done, the Digital Age begins as we learn we are Collectively Interdependent with each other.

War has an amazing power to teach those that live how dependent they are on others to survive....and when its over, the memory is so horrible people will voluteer their production to insure it never happens again.

In our/America's case, the perception of prosperity was simply too alluring to face the consequences that one generation bankrupted our nation....and now time has about run out.....

It is not the end of the world.....just the end of a world as we know it.

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