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| Joined: | Mon Nov 21st, 2005 |
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Anyone,
Within that video are a few statements concerning Oil prices.
Please understand how things that are productive power supplies are different from things that are not productive power supplies.
Too many chairs, for example, is not the same thing as too many kilowatt/hours of electricity.
You can understand the significant difference in many ways, and I can start explaining the significant differences with those two examples above.
Producing too many chairs will cause the price of chairs to go down, as everyone has chairs, and there are now too many chairs, so making more chairs, when there are too many chairs, is an example of malinvestment, or spending productive power in such a way as to cause higher costs of living and lower standards of living on a net, overall, average, basis. One person making too many chairs is not the same thing as, say, The Federal Reserve Chairman increasing the money supply by double and then lending that money at less than the rate of inflation in interest, which is negative interest, or paying someone to use the money, and making sure that the borrower only makes chairs with double the supply of money, or for failing to do that with the money, as punishment: The Federal Reserve Chairman cuts off any more money to the chair maker.
Well the chair maker may complain, saying, ahhhh, dude, there are already way too many chairs, and you want me to use the entire sum of the current money supply, which you just doubled, and you hand me a check for that much money, and you want me to make nothing but chairs, ahhh, don't you now that that is stupid, not to mention how that is criminal, since so many people are in dire need of their personal earnings, and doing this will cut their personal earnings in half, by you ordering me to do this, this waste, this criminal waste of all that power to purchase, which amounts to a tax on all those people who are paid in dollars?
That is how things work when working with chairs, which is not as bad as working with destructive things like lies, threats of violence, and acts of violence upon the innocent, which is much more criminally wrong than abusing double the money supply power in the work of making too many chairs, so let's run that chair example through to see how that analogy works out before moving on to the net affect of abusing double the money supply on producing too many lies, too many threats of violence, and too many acts of violence upon the innocent, which is another analogy, on a scale of analogies, and then we can move onto an analogy of abusing double the money supply on producing productive power.
We did this:
1.
What happens if Ben orders too many chairs, when doubling the total supply of dollars.
We can do this next:
2.
What happens if Ben orders too many aggressive wars for profit, when doubling the total supply of dollars.
And then:
3.
What happens when Ben orders too many kilowatt/hours of electricity production, when doubling the total supply of dollars.
So, as you can see, if you understand the video at the top of the page, that Ben is taxing us, and you can also understand that Ron thinks that Ben is not doing good, and you can understand that if Ben had ordered the production of only chairs, by doubling the money supply, and paying a chair making to make only chairs with double the money supply of dollars, then things wouldn't be good in America as a result.
You can think the "too many chairs" scenario through, a little better, before moving into the next two examples on the scale we are constructing here and now. A lot of wood is needed, and there will be a lot of chairs produced with double the money supply that was in circulation in 2008. Ben doubles the money supply in 2008, orders chairs, nothing but chairs, and a whole lot of trees are cut down, to make chairs.
Soon everyone has enough chairs, and actually almost everyone already has enough chairs, so what happens to all the new chairs ordered by Ben?
Ben and the chair producer purchased by Ben could stack the chairs up and form one gigantic pyramid of chairs, and when someone wants one, the chair guy can sell one from the gigantic pyramid of chairs, while everyone else has to contend with higher prices, and everyone else is still paid the same wage, or less, since all that money was spent making a pyramid of chairs. Thanks Ben. Thanks for causing the prices on everything to double, while our pay stays the same, so that you can make a whole lot of Chairs. The net increase in the standard of living is measurable as chairs. The net cost of living increases measurable as the difference between the increase in prices and the lack of increase in earnings, or the disparity between rising prices and rising earnings (not just wages).
If the chair dude can't pay back the loan, the loan that Ben gave the chair guy, for less cost to the chair guy, less "interest rate" that is less than the rate of inflation, which amounts to someone paying someone to take out a loan, then Ben can bail him out too, after he defaults too, with more of what used to be your money, Ben can call up his buddies who help with the bail out paperwork.
Do you have it clear in your mind how chairs can be a bad investment when doubling the money supply of legal dollars and then spending that much money on making more chairs?
Now we can move to doubling the money supply so as to start a few, or many, more aggressive wars for profit in other countries where there are a lot of goodies to steal, such as oil, gold, diamonds, and another added feature to these aggressive wars for profit is the feature by which the competition can be eliminated, as those competitors sell their stuff to China, Russia, Brazil, Cuba (if they can get past the blockade), Iran (blockaded), Palestine (blockaded), Venezuela, and other places. And there is the additional feature of eliminating world competitors in money markets, so as to keep The Dollar Hegemony, on top. The down side for some, but an additional up side for a very few at the top, is, too bad for everyone else: World War III.
2.
What happens if Ben orders too many aggressive wars for profit, when doubling the total supply of dollars.
Ben pays people to borrow money to start wars. Not chairs. The interest rate charged for loaning out double the money supply is an effective negative interest rate, or it is the same thing as paying someone to loan money, so Ben makes an offer that can't be refused, if the borrowers have no working moral conscience, and they won't look the gift horse in the mouth. They take the money and they start the wars, they are rewarded handsomely. Ben pats them on the back, and they pat Ben on the back, a jolly good crew.
Too many aggressive wars for profit, and what happens? Well, it can be well understood that the pyramid of chairs won't be built. There will be a pyramid of dead bodies, and as well as the case with the pyramid of chairs there will be a whole lot of people whose standard of living decreases while their costs of living increase because their power was malinvested, from their viewpoint. From the viewpoint of Ben, and those who are rewarded for torture, and mass murder, the investment was very sound, and they laugh all the way to what used to be your bank. Reality is a bitch.
That is 2 divisions, now, on the scale being shown to you. I can offer pictures too. There are many high definition pictures that depict aggressive wars for profit, piles of bodies, and I can draw a picture of a mountain of chairs, but I am going to give the few readers here a measure of credit concerning their ability to use their own imagination.
1. What happens if Ben orders too many chairs, when doubling the total supply of dollars.
2. What happens if Ben orders too many aggressive wars for profit, when doubling the total supply of dollars.
3. What happens when Ben orders too many kilowatt/hours of electricity production, when doubling the total supply of dollars.
What happens in example 3 on the scale of what happens when malinvestment measures up on a scale of worst to best? Keep in mind that one person's evaluation of good isn't as good as the next person's, depending upon who is doing the evaluating. Note too that only Ben can double the money supply of legal collars. Ron can't. You can't. I can't. And get away with it. And do it again.
Suppose Ben doubles the supply of dollars and pays someone to borrow that much power to purchase, before that money can cause inflation, Ben spends it first, Ben buys a borrower, the next guy spends it second, and Ben only loans this money out to someone who will make more kilowatt/hours of electricity, or else, the same rule applies, you don't do what Ben says, you don't get paid to borrow money again. Ben has power, you don't. Ben has your power. You don't. You are intimately connected to Ben by way of the legal dollar, too bad for you.
So the money supply is what is was before Ben doubled the money supply, and then Ben wrote a check equal to the total supply of legal dollars currently in circulation, and Ben buys as many more kilowatt/hours of electricity that can be produced with double the supply of legal dollars, and Ben says hurry up.
Work that out some.
What happens if the borrower does as told in various ways, such as, creating nothing but Solar Panels, selling them to whoever will use them, so as to increase the number of kilowatt/hours produced? Will that do? Will Ben be happy? What happens to the price of electricity if Ben creates double the supply of legal dollars and then Ben orders nothing but more electricity produced with that increase in the total supply of dollars, and the order is filled, and in one year all that money makes that much more electricity: what happens?
There is so much electricity produced, that there is too much electricity, and what happens to the price of electricity? You pay the price of having your money spent on electricity but you get some of that money back because the price of electricity goes down, there is too much of it, and what does too much electricity look like?
1.
Too many chairs look like a pyramid of too may chairs, all the excess is stored in one pile.
2.
Too many aggressive wars for profit generate piles of dead bodies, and I can link the pictures if you have no clue about how that works.
3.
What does too many kilowatt/hours of electricity look like when that is what Ben orders when Ben doubles the money supply and gives that money to the people on his list, and Ben want's more electricity?
How do you store too much electricity? If aluminum cans are made, that is one way to store electricity. If salt water is pumped out of the ocean and pumped inland to higher elevations, that is a way to store electricity, because water can then be allowed to flow back down, and the water can be used to turn electric generating turbines.
How many chairs can be produced with double the money supply of legal dollars?
How many aggressive wars for profit can be produced with double the money supply of legal dollars?
How many kilowatt/hours of electricity can be produced with double the money supply of legal dollars?
Even if the electricity was produced so as to ground the power into the Earth, making electricity to waste it, the things that had to be made to make more electricity would be made, and once Ben and his crew were done with those things, they would be left laying around for someone else to use, and use productively.
That is not the case with too may chairs.
That is not the case with too many aggressive wars for profit (the supreme crime man has ever invented upon mankind, so far); but Ben can loan money to other borrowers who get no bid contracts to rebuild what they destroy.
That is not the case with any form of productive power, such as electricity.
Joe's Law:
Power produced into a state of oversupply decreases the price of power while purchasing power increases because power reduces the cost of production.