Live World Indices are powered by

Monday, July 18, 2011

MONEY: The Fraud of Nations on Populations?

Tell them...print more money

Make Millions Shorting Bonds...

To be short, the world's economic, population, social and political problems may be tied directly to a "failed theory of money, and the deriving consequential economic models".  Money is simply a medium that conveys to the holder that the issuer has stored value somewhere for the holder to access at will and demand.The value can only come in the form of either abstract or concrete constructs. Period. However the value of abstracts constructs derives its existence solely from concrete constructs.

Thus without food, water, OIL, shelter and such; the abstract constructs ability to survive and exist is highly impaired and ceases along with the exhaustion of concrete constructs. Period. The exhaustion of the world's oil reserves; for example, will therefore have a significant; if not, catastrophic impact on global economies as the value of money cannot be sustained only by abstract constructs - a.k.a...Hot Air

Here's the Catch 22 under present beliefs.To create an illusion of economic advance, declining nations will grow their money supply and populations,even when the nation's stores of per capita concrete constructs are declining.This acts then to fuel an "exponential decline".

" The known issuance of more and more money against a declining store of concrete constructs is thus an outright fraud by the issuer nation".They are representing that when the holder of the medium acts to demand the promised value of the medium that the issuer can deliver concrete constructs with everyday utility. If the issuer nation knows it will soon exhaust its resources (say like Nauru ,Greece and America)  it also knows that it can "never deliver" any form of concrete construct to the holder.

One solution, currently in favour, is to issue 30 year bonds (abstract constructs) and thereby push the holders' demands out to a future date. This is supposedly the date when all the laws of the universe will be known for application; so we may then create new planets at will. (sort of like a god).

Satirically, the value of 30 year bonds; issued today by any nation, is tied therefore directly to our acquiring all the knowledge and skill sets of God. So we can then create all the concrete constructs necessary to fulfill the promised value of the medium that the nation previously issued. Hmmm...highly remote.

Conclude then that all the governments on the planet are participating in this massive scheme that fools the vast unwashed by the issuance of more and more money and bonds. These instruments have little chance or worse; will  NEVER deliver the promised future value in the form of concrete constructs. Such a game:...musical chairs perhaps?

My friends, it would be welcoming to exchange ideas on this topic.As while the problems offer intense complexity, the paradoxical solution is intensely simple in the ways needed to end this scheme and possibly better sustain the utility of both money and economies.

The time for a new yellow brick road grows near!

Whose the Wizard of Oz?

T. A. McNeil
First Financial Insights Inc
Toronto, ON