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.
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..
Supply of currency:
Ideally, it will optimally match and nurture economic growth and stability
with no high or low currency blood pressure.
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.
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.)
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).
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.
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.
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.
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.
Living Beyond Means:
The US National Debt indexes how people have been encouraged to live beyond
their means.
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.
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."
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.
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?
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."
Bad money
habits: Gambling, Play, Lotteries, Eating out, New Cars, etc.
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.)
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.