Currency: Symbols or Substance ... Ecos Nomos ... Index

Currencies: Blood of An Economic Body

  1. Economic Body: If a human body's blood bleeds out, the person dies. Likewise with an economic body: If people hoard money, commerce stops and the economy dies. If a country is on a precious metal standard (gold or silver) and the production of precious metals does not keep up with industrial production then the economy becomes lethargic like a human suffering anemia.
  2. Inflation versus Deflation: If one's body suffers high blood pressure it is akin to an economy suffering monetary inflation--too much money chasing the same goods and services. Likewise, traditional deflation is lost liquidity in the economic body causing economic depression, e.g., 1930..
  3. Supply of currency: Ideally, it will optimally match and nurture economic growth and stability with no high or low currency blood pressure.
  4. Too Simple? Many economists will object to this analogy not reflecting the complexity of the real world to which this thinker responds: Why did you make it so complex? The answer is simple: Greed and Corruption fertilized by incompetence.
  5. Federal Reserve (a private bank owned by other banks, not the U.S. government) was implemented to manage the economy using a new currency created out of thin air--the Federal Reserve Note. Unfortunately, the unqualified nature of "fractional lending" incentivizes bankers to build infrastructure inflation into economic body. (This is why this writer in his youth can recall a loaf of bread for 10 cents (now $3-$4) and a gallon of gasoline for 17 cents.)
  6. Monetarism: The dominant school of thought in managing the money supply is monetarism in which the Federal Reserve adjusts interest rates to nurture or slow the economy and in which it injects money into the economy via purchase of bonds (government or corporate).
  7. Good versus Bad Money: Monetarism makes little or no guidelines on how the thin-air money is used in the economy. Thus, like yelling "fire" in a crowded theatre, the money can stimulate good or bad results.
  8. Velocity of Circulation: Monetarist measure how often money changes hands regardless of whether hands are good or bad, clean ordirty. More often than not, the "hidden hand of the marketplace" is very bad and dirty.
  9. Essential versus non-essential: The necessities of life are essential to whether a person or nation lives or dies. Dirty money from dirty politicians fuels non-essential activities.
  10. Needs vs. Wants: Needs are essential while wants should be secondary in one's spending of money or time. When habitual politicians legislate more ames and gambling, the funding of needs becomes less.
  11. Living Beyond Means: The US National Debt indexes how people have been encouraged to live beyond their means.
  12. Cost of Humanity to Mother Nature: The true, real cost of humanity is our generation of carbon dioxide which is creating a Climate Hell on earth. Some CO2 is necessary from producing the goods and services to live. Unfortunately, a greater amount of CO2 is metastasized for our wants, that is, how we are lying to ourselves about what is important. This echos the good/bad money dichotomy.
  13. Economist know price of everything but the value of nothing: In other words, monetarists' velocity of circulation means more than the quality of money in what economic activity it stimulates. (Favorite economist story: A shepard sees a man approaching along the public path who offers, "I bet you a hundred dollars and one of your sheep if I can tell you how many sheep you have." "Your on," responded the shepard. "942" was the walker's quick answer. The shepard handed over the cash, telling the walker to pick a sheep of his choice. As the walker was trudging away, the shepard said, "I bet you two hundred dollars and my animal that I know your profession." "Ok." "You are an economist." "Wow. How did you know?" "You picked up my sheepdog."
  14. Currency Etymology: What is your time currently worth? Depends on what you did previously with your time and money. If you pissed it away on the wants and lies of your life, you will find your future days full of deprivation and suffering from lack of essential goods and service. The summation of individuals' worth is the current value of a family, community and nation.
  15. Cost of Living: Daily work time needed to acquire the necessities of life. The cost of living is not funny numbers on funny paper which politicians and economists manipulate. One cannot manipulate 24 hours in the day. Would you rather earn a million dollars an hour in which you have to work 16 hours a day to just get by? Or, earn one dollar an hour in which you only need to work one hour to buy your necessities of life: Food, Clothing and Shelter?
  16. Food Lines: The majority of the people suffering from the Trump Virus economic hardships are people who chose wants over needs in their past spending habits. As grandpa said, "Fools and their money soon part." A Timist says, "Fools and their time soon disappear."
  17. Bad money habits: Gambling, Play, Lotteries, Eating out, New Cars, etc.
  18. Covid Stimulus "Bad" Money: Retail outlets had empty shelves of TVs, computers, cellphones made in China. Another habitual politician's gambit that was a salt-water solution, that is, seemed like a quick fix only to have the problem come roaring back worse than ever. (The second "bad money" stimulus program, December, 2020, will only make matters worse.)
  19. Thin-Air Buying Power--Federal Reserve Note vs. Timism Lifehours. While the "anything goes" money policy of the Fed fuels non-essential activities and stokes essential inflation, the lifehour is designed to lower the cost of living not stimulate cost of lying, that is, save time rather than waste time.

Sadly and tragically, the Federal Reserve Chairman and the incoming Secretary of Treasury, a former Federal Reserve Chairman, are poster kids for how economists and politicians don't understand the nature of currencies. Compounding the problem is how corporate and tenured economists are intellectual streetwalkers negatively skewing their information for habitual politicians. Purveyors of ninformation (negative information) are ninformaniacs screwing the general public.

Currencies: Economic Blood
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