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alstry (35.92)

Which Is More Valuble....Money or Production?

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June 12, 2010 – Comments (13)

There are the Keynesian Fools that think money is more valuble than production and money drives production...which lead them to silly conclusions like Keynes made in 1927:

“We will not have any more crashes in our time.” – John Maynard Keynes

But in Alstrynomics, it is production that drives the value of money and gold.....and without production money/gold is worthless.  You can have all the money and gold in the world on an isolated island, without any human production the money and gold is worthless.  HUMAN PRODUCTION IS THE ONLY REASON WHY GOLD AND MONEY HAVE VALUE....THEY ARE A DERIVITIVE OF HUMAN PRODUCTION.

Once the producers realize the bankers and politicians can produce as much money as they want to control the producers lives and production WITHOUT THE BANKERS/POLITICIANS PRODUCING THEMSELVES....inevitably the producers will stop producing for the "free" banker, politician and welfare money UNLESS forced to produce by threat....war is a wonderful mechanism which allows  the moochers to force the producers to work for the benefit of the moochers.

As an aside, this essentially is the basis for many revolutions as the moochers become too indifferent to the struggles of the producers.....and the producers revolt.  THE MOOCHERS EVENTUALLY REALIZE THEY HAVE NO LIFE IF PRODUCERS ARE NOT PRODUCING.

There are many way to confiscate the producers production in modern times including taxation, regulation, inflation in prices, deflation of wages, and outright taking of production.

Of course there is a balance....but the balance will inevitably tilt to the favor of the moochers eventually as the allure of making unlimited free money without any basis of production is too enticing to resist in the short term.

So here we are......many producers are not making a sufficient income to sustain a satisfactory lifestyle as wages are collapsing and the prices of almost everything they pay for is skyrocketing......while the moochers keep creating more and more free money for the politicans, bankers and welfare recipients.......EVEN THOUGH THE UNDERLYING PRODUCTION IS CRASHING.

The producers are getting angry....really really angry.....Atlas is starting to shrug around the world....

12,000 nurses in Minnesota....

Millions of workers around the world.....and more and more each day as factories shut down and producers figure out what is going on......

Spirit Airlines pilot strike could delay thousands

Spirit Airlines pilots went on strike Saturday in a dispute over pay, and the discount carrier immediately canceled all of its flights for the day.

And for those of you that say Keynes's policies drove America's prosperity for the past thirty years....I say Amen...yes my fellow sheep.....

But it is also true that Madoff's actions drove the perceived prosperity of his clients for a similar period of time.....until the fraud was exposed by the access to money running out.....

Instead of losing access to money.....we are losing access to production as more and more shuts down.........more and more hospitals....more and more schools.....more and more businesses.....more and more cities......more and more counties......more and more states..........

Hurry keep making pancakes, you may not have any fuel to fire up the stove in the near future as there will be no one to deliver it........

At that point, money and gold will have no value and we will be well on our way into the Digital Age.....it is getting very exciting.

13 Comments – Post Your Own

#1) On June 12, 2010 at 10:43 AM, alstry (35.92) wrote:

Some interesting examples comparing production and money......

What is it worth to you when confronted with a person holding a loaded gun to your head with the means and motivation to pull the trigger....to not shoot?

ANSWER:  All the money and gold you have.

What is it worth to a city populated with thousands, perhaps millions of residents, to not have another drop a weapon of mass destruction upon their city?

ANSWER: All the money and gold available to the residents of the city.

What is it worth to a nation's politicians that made massive promises to its citizens that it can't afford to pay due to production evaporating?

ANSWER:  Anything that won't make the people revolt.........ANYTHING!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!! 

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#2) On June 12, 2010 at 11:58 AM, alstry (35.92) wrote:

WHEN THE BANKERS CUT OFF CREDIT IN A SYSTEM THEY MADE DEPDENDENT ON CREDIT TO PRODUCE....THE MONEY RUNS OUT AND THE PRODUCERS STOP PRODUCING......

What is it worth to have a doctor treat you to save your life?

ANSWER:  All the money and gold you have........

President Barack Obama is asking Republican lawmakers to approve billions of dollars in new spending to avert a scheduled 21 percent cut in payments to doctors who treat Medicare patients.

If GOP senators don't allow the stalled proposal to pass, some doctors will stop treating Medicare recipients, Obama said in his weekly radio and Internet address Saturday.

 

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#3) On June 12, 2010 at 12:14 PM, alstry (35.92) wrote:

From Bankers cutting off credit,  to natural distasters, to man made disasters, to workers getting frustrated, to social unrest.....PRODUCTION IS SHUTTING DOWN AROUND THE WORLD.......................................

WESTERN BUREAU: OCCUPANCY LEVELS in the tourist resorts are down, forward bookings are dismal, and Kingston hotels are reporting declines in business of up to 70 per cent in some cases.

The fallout, blamed on the recent unrest, threatens to cripple the island's lifeblood industry: tourism.

"This is an economic recession all over again due to the bad press," laments President of the Jamaica Hotel and Tourist Association (JHTA), Wayne Cummings.

IT IS NOT JUST JAMAICA...OR THE SOUTHEAST COST OF THE UNITED STATES....OR GREECE.....OR SPAIN......DUBAI......OR DETROIT.....OR THE RUST BELT...........OR MEXICO.........

IT IS THE INDUSTRIAL AGE SHUTTING DOWN AS ATLAS SHRUGS............

Soros Says "We Have Just Entered Act II' of Crisis 

University of Minnesota - 370 

Davis Health System in Elkins - 37

Abbott Vascular in Temecula FL - 120

Westin Providence Hotel - 50

Vertafore - 30

Hillsborough County FL - 200

Brown University Bookstore RI - 8 

Lucas County Sheriff’s Office OH - 16

La. Department of Education - 31

Exempla Healthcare - 100 Position from Hospitals in Denver 

Boeing - Lost of Constellation Funding Could = 180 Layoffs

City of Romulus - 32 Layoff Notices

Burke County Public Schools NC -  70

Middleboro School District - 30

Marian Community Hospital - 26

Cinram - 482

The Siena Hotel Spa Casino in Reno - Eliminating Table Games = 35 Layoffs

Johnnie Walker's Men Store in Milwaukee Wisconsin 

Pipkin Cameras and Imaging Store in Oklahoma City 

Allain Gallery in Richmond Virginia 

Stone's Throw Golf Course in Newton Ill

Glacier Ice Arena in Grand Junction Colo.

Maumee 18 Theater in Maumee Ohio 

Eccentrix in Joplin MO

The White Pine Copper Refinery

3M to Close Ardmore Plant - 125 Jobs Lost

Provincetown High School in Mass.

B&G Golf in Brookfield

Update: Taylor Sawmill in Enfield ill

Pages New and Rare Bookstore Arizona 

Select Medical Corp Manchester MO Facility - 66 layoffs 

Caye Upholstery, Closing 2 NC Facilities - 160 Jobs Lost

Ripley County Fair NY

Blockbuster in Oak Ridge Tenn. 

The Hubbard BMV in Ohio

The Golden Corral Buffet & Grill restaurant on Seminole Trail VA?

Update: Ken Lee’s Gallery 11 in Steamboat Springs

 

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#4) On June 12, 2010 at 12:47 PM, bcchamp (33.44) wrote:

Gov. David A. Paterson and legislative leaders have tentatively agreed to allow the state and municipalities to borrow nearly $6 billion to help them make their required annual payments to the state pension fund.

And, in classic budgetary sleight-of-hand, they will borrow the money to make the payments to the pension fund — from the same pension fund.

Your final prediction starting to unfold--from dwot in case you missed it

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#5) On June 12, 2010 at 1:51 PM, ralphmachio (26.31) wrote:

I like this one, Alstry, but what the hell does have value in the digital age? So far I have : Don't be in a city. Get a job with the government? Food. Fuel. Means to protect it. Means to create more food. Anything else?

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#6) On June 12, 2010 at 1:56 PM, alstry (35.92) wrote:

ralph.....

Knowledge and the ability to apply that knowledge in a productive way will hold the greatest value.

Labor is always productive...but generally not held in as high a value.

Think Digital and you will be heading down the right path.

Think nooookular instead of carbon fuels......

Once the clock starts ticking...it will work 24 hours per day.

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#7) On June 12, 2010 at 2:11 PM, 1315623493 wrote:

The value a currency is dependent on the productive capacity of its underlying economy. It is wrong to assume they are disconnected from each other. If America was not productive, then our dollar would not be the most sought after, the most pegged, the most followed currency in the world. 

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#8) On June 12, 2010 at 5:09 PM, alstry (35.92) wrote:

Much of America's productivity advantage comes from its military superiority.

Remember the earlier example I gave you, if I put a gun to your head, what will you give me in exchange for me not pulling the trigger?

If I stick my military on your soil, what will you give me for my dollar if I let you stay in power?  If you want to learn more about this read John Perkins book, Confessions of an Economic Hitman.

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#9) On June 12, 2010 at 6:06 PM, 1315623493 wrote:

Yes, I have heard of, Military Keynesianism. But you do realize that we are in an era where large-scale military conflict is impossible due to nuclear weapons? Do you also realize that nation-building exercises in far away lands actually increase debt and deficits, and don't help the fiscal situation? Do you also know the we will begin pulling out of Iraq and Afghanistan within the next 2 years? Honestly, I think your "the government is going to war to distract from fiscal responsibility" doesn't hold any water.

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#10) On June 12, 2010 at 6:13 PM, 1315623493 wrote:

But I will check out that book. Thanks.

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#11) On June 12, 2010 at 7:59 PM, alstry (35.92) wrote:

Yes...I realize everything you stated.

Do you realize how many miltary bases we have AROUND the world......and most of them are expanding right now....especially in Eastern Europe and South America.

I can either use money to reward you to work...or I can force you......

Have you ever heard of the draft?  or forced civil service.....in a military environment laws can be circumvented or changed and how we produce and how it is compensated changes dramatically.

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#12) On June 12, 2010 at 8:16 PM, 1315623493 wrote:

Who are we going to go to war with? China? They have nukes. Iran? The international community would never go along with that. Yes, our military is in too many places, and need to be brought home. But the government isn't going to start a war to balance the budget because that flies in the face of logic. 

How about this. What is your time frame, at the end, we can verify your prediction. It seems like you're pretty hit and miss. 

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#13) On June 12, 2010 at 11:09 PM, tomatoflu (< 20) wrote:

Trust me, it is difficult to get a grip on the big picture unless how money is created and, in particular, how it is destroyed is constantly remembered. This is the part of the cycle many non-fools, do not fully comprehend....

The essence of what Alstry is saying is true.

If the TF (Tomato Flu.) has it right, or has understood Alstry correctly, or if i may ......

"Production is more valuable than money, and indeed is a precursor to the 'need for money' or a form of exchange to begin with".

By now most people know the simple math that if only the principal of a loan is created into existence by banks, then there will never be enough money in the world to service the interest unless more loans are created because the money to pay for the interest was not created....

That's bad enough.

However, even "the" TomatoFlu (TF) finds the way in which fiat currency is 'destroyed' by the banking system, scary.

Arghhh....

As the existing debt is serviced, all payment that goes towards servicing the principal actually destroys or un-creates the fiat currency used to do so.....wow!!

Banks are not creating new principal (Debt.) for loans so that......

"Commercial bank money (money created in the banking system through borrowing and lending) - sometimes referred to as checkbook money.

When a commercial bank loan is extended, new commercial bank money is created. As a loan is paid back, the commercial bank money disappears from existence".

In a fractional reserve banking world.

from http://en.wikipedia.org/wiki/Money_creation

Very scary markets indeed!!

Does any felow fool or 'idiot' in the ancient Greek sense of that word, know why this might frighten the TF (Tomato Flu.)??

 

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