Economics & Banking: Serving the Nation (part 2)
Pirates bartered with South Sea Islanders using English trinkets for what they wanted. One lira in the Roman Empire meant so much more than the now aluminum minted coin of 50,000 lira -- you can see what inflation there has been in two millennium. Spanish doubloons meant something when the wooden ships sank -- now they are worth hundreds of millions. Cash represents one agreement in our money supply while interest rates are another way of controlling our 'supply of money.'
If I could fish on my island and you could pick pineapples on yours we would trade 2 of my fish for 3 of your pineapples. Thus an economy begins with bartering.
Enter Joe who complicates our trading by offering coconuts from his island. With this new complexity to our economic system it would behoove us all to gain agreement by using a medium of exchange -- cash or money of some sort -- where we could keep track of our purchases. If we became lucky perhaps some pirate would come and offer trinkets so that we could use the trinkets as agreed upon cash. We need to make agreements -- not only for cash -- but for economic and banking reasons as well.
To gain the current true value of fish, pineapples, and coconuts, all those in the economic community must come to a valued conclusion. Should we have an auction to find out what we really value these goods at? Our cash could actually be the very trinkets which the visiting pirates have left to us. We use them to barter -- they are our so-called 'dollars.' In this way these economic values begin our "early" stock market. With daily values for these goods prices tend to "settle" and relative values become more consistent.
Things change. Not only do our mediums of cash change -- but the value of Spanish doubloons increase as the years go by. This could be a nightmare or a profit for an "e-bayer". [Just a note -- where but in America do people feel that others want to buy 'their' "junk"? So much for garage sales & flea markets.] Practically everything is for sale at some time. Everybody at some time hopes to find opportune wealth in the commonplace !
Trading today is a collection of cash which becomes a computerized symbol or a mark on paper in an electronic account. Whatever happened to kidney pie, tripe, kippers, scrapple, or pork bellies? Who is being fed what?
The overwhelming key to America's economy is the ability to distribute food effectively and efficiently. Our economy is based on the distribution of food.
How is it that trucks and boxcars haul everything including vegetables, canned soup, boxed starches, and most meat to all corners of our nation? How is it that seafood from Maine, and fruit from Hawaii, as well as other delicacies, are flown and moved to every town in our country -- Fresh!!? All other goods are secondary to food. We need to use our cash for these benefits.
Let's look again at President Truman and the village treasurer, Clyde, as they stimulate the economy by 'magically' making 100 bucks serve as 108 bucks. Life need not heed the game of 'Monopoly'. Incremental addition to the money supply should increase so all may be fed in a continual way. Each individual, family, organization, and business is important in our scheme. Let's get back to healthy basics.
This 'supply of money' is based on the Federal Reserve Prime Rate as well as the amount of cash in the system. It shapes our policies. Slow increases in the Prime Rate need to match productivity. Even added counterfeit money -- when honored -- adds to the total amount of money in the system -- which in other words is the "money supply." All of the money together in the country's system is the "total money supply."
Think of the cash strewn in wallets & purses, the coins stashed in piggy banks, the money in banks, ATM's and businesses, and even bills stuffed in mattresses. Efficiency and effectiveness are keys in our economic system. We need to be accurate in making the total money supply grow to match an increasing productivity in goods and services. The growth of the amount of money we all have in total must match the growth of the economy. That is the agreement -- that is what is meant as the growth of productivity !!
Remember -- the stimulus only remains constant and strong when the slow growth of the money supply matches our productivity. We need to grow -- not too slowly -- not too quickly. For the harvest of the world, our money comes from usable cash and the Prime Rate as it includes all countries.
For our one country -- we must pay attention to what is going on here. Our "dollar" border from other countries is just that -- a boundary. Economic policy should always be different country to country unlike that which is occurring within our one country alone. We are a 'united states' -- we use the same currency throughout our nation. The workers of the U.S. of A. need to focus and concentrate on our own productivity as a nation before becoming immersed in all types of trade with other countries.
We need to be fruitful ! Eventually we will need to work with others on this planet. We need to get this right. Let's value people ! Let's do things to make productivity honestly grow in our nation ! Wealth will then grow as well !!
Thank you very much.
Sincerely written, and
Respectfully submitted,
Robert N. Franz
See: amzn.to/1R1Oayq
Or check linkage: amazon.com/author/rf3rd
Please also look up:
@The Stigma of the Mentally Ill: Bob Does Everything Backwards
If I could fish on my island and you could pick pineapples on yours we would trade 2 of my fish for 3 of your pineapples. Thus an economy begins with bartering.
Enter Joe who complicates our trading by offering coconuts from his island. With this new complexity to our economic system it would behoove us all to gain agreement by using a medium of exchange -- cash or money of some sort -- where we could keep track of our purchases. If we became lucky perhaps some pirate would come and offer trinkets so that we could use the trinkets as agreed upon cash. We need to make agreements -- not only for cash -- but for economic and banking reasons as well.
To gain the current true value of fish, pineapples, and coconuts, all those in the economic community must come to a valued conclusion. Should we have an auction to find out what we really value these goods at? Our cash could actually be the very trinkets which the visiting pirates have left to us. We use them to barter -- they are our so-called 'dollars.' In this way these economic values begin our "early" stock market. With daily values for these goods prices tend to "settle" and relative values become more consistent.
Things change. Not only do our mediums of cash change -- but the value of Spanish doubloons increase as the years go by. This could be a nightmare or a profit for an "e-bayer". [Just a note -- where but in America do people feel that others want to buy 'their' "junk"? So much for garage sales & flea markets.] Practically everything is for sale at some time. Everybody at some time hopes to find opportune wealth in the commonplace !
Trading today is a collection of cash which becomes a computerized symbol or a mark on paper in an electronic account. Whatever happened to kidney pie, tripe, kippers, scrapple, or pork bellies? Who is being fed what?
The overwhelming key to America's economy is the ability to distribute food effectively and efficiently. Our economy is based on the distribution of food.
How is it that trucks and boxcars haul everything including vegetables, canned soup, boxed starches, and most meat to all corners of our nation? How is it that seafood from Maine, and fruit from Hawaii, as well as other delicacies, are flown and moved to every town in our country -- Fresh!!? All other goods are secondary to food. We need to use our cash for these benefits.
Let's look again at President Truman and the village treasurer, Clyde, as they stimulate the economy by 'magically' making 100 bucks serve as 108 bucks. Life need not heed the game of 'Monopoly'. Incremental addition to the money supply should increase so all may be fed in a continual way. Each individual, family, organization, and business is important in our scheme. Let's get back to healthy basics.
This 'supply of money' is based on the Federal Reserve Prime Rate as well as the amount of cash in the system. It shapes our policies. Slow increases in the Prime Rate need to match productivity. Even added counterfeit money -- when honored -- adds to the total amount of money in the system -- which in other words is the "money supply." All of the money together in the country's system is the "total money supply."
Think of the cash strewn in wallets & purses, the coins stashed in piggy banks, the money in banks, ATM's and businesses, and even bills stuffed in mattresses. Efficiency and effectiveness are keys in our economic system. We need to be accurate in making the total money supply grow to match an increasing productivity in goods and services. The growth of the amount of money we all have in total must match the growth of the economy. That is the agreement -- that is what is meant as the growth of productivity !!
Remember -- the stimulus only remains constant and strong when the slow growth of the money supply matches our productivity. We need to grow -- not too slowly -- not too quickly. For the harvest of the world, our money comes from usable cash and the Prime Rate as it includes all countries.
For our one country -- we must pay attention to what is going on here. Our "dollar" border from other countries is just that -- a boundary. Economic policy should always be different country to country unlike that which is occurring within our one country alone. We are a 'united states' -- we use the same currency throughout our nation. The workers of the U.S. of A. need to focus and concentrate on our own productivity as a nation before becoming immersed in all types of trade with other countries.
We need to be fruitful ! Eventually we will need to work with others on this planet. We need to get this right. Let's value people ! Let's do things to make productivity honestly grow in our nation ! Wealth will then grow as well !!
Thank you very much.
Sincerely written, and
Respectfully submitted,
Robert N. Franz
See: amzn.to/1R1Oayq
Or check linkage: amazon.com/author/rf3rd
Please also look up:
@The Stigma of the Mentally Ill: Bob Does Everything Backwards
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