| View single post by Joe Kelley | |||||||||||||
| Posted: Wed Jun 27th, 2007 01:47 pm |
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Joe Kelley
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http://www.lewrockwell.com/blumen/blumen16.html
How to sell short? I can't argue with falsehood. I can offer a perspective that intends to answer some important questions. What is the actual, real, physical difference between saving and investing? The answer depends, of course, on what is meant by the terms being communicated. Savings, if I have this right, is an investment of current wealth into a form of wealth that is different from the form of wealth that wealth exists previous to the conversion from whatever wealth was before it was saved. Don't blame me for the confusion of words. Wealth exists in some form previous to saving it. Previous to wealth there is a lack of wealth. This bring me back to energy. Energy is a form of wealth like night is poor in wealth compared to day. During the day a person can gather up the wealth provided by the sun and turn that wealth into electricity during the day. When night time comes around there remains a need for energy wealth. Did the economist save any of the energy wealth produced during the day? Did the economist invest any of the energy wealth produced during the day? What happens when too much energy is produced during the day? Can too much energy be saved? What happens to the purchasing power of energy when too much energy is produced, saved, or invested? How much purchasing power is saved on one barrel of oil? What happens to the purchasing power of oil when everyone has free flowing energy coming out of the Sun like water? Answer: Oil wealth declines (less purchasing power) while all things produced with energy cost less. What is meant by the term "Cost-less". How much does it cost to produce anything while the price of oil increases? While the supply of oil decreases and the price of oil increases what happens to the purchasing power held by anyone other than the people who control the supply of oil? The purchasing power of the people who control oil increases while the people who require oil to produce everthing have a steadily declining power to purchase. Wealth goes from everyone to the people who control the supply of oil. As the supply of oil decreases the cost of everthing increases and the people who control oil gain more and more wealth while the people who need oil for production lose more and more wealth. What happens if everyone invests (saves) their wealth in a form that produces more 'cost-less' energy? A. The supply of energy increases. B. The supply of energy increases while the supply of oil decreases C. The price of oil decreases and the price of other energy decreases because the supply of energy increases. D. Everything produced with energy costs less (greater supply of energy lowers the cost of production). E. Purchasing power increaseas for everyone. F. The value of human labor increases. Two obvious problems exist for the people who control the flow of oil and the same people who control the flow of currency (dollars). A. More energy production reduces their monopoly power over the energy supply. B. More energy production increases the power of human labor. Those two problems spell the end of Despotism. If you can see this, then, you end the power of falsehood - at the source. Good Luck. The times they are a changin'
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