Money corresponds to ephemeral code inside electronic databases. In a market driven economy, money is the measure that sets values to goods and services. It functions as a convenient proxy for social exchanges. Let us suppose a person trades eight hours of labor for a five-star dinner. At another time and circumstance, the same 5-star dinner may cost the same person four hours of labor. For another person on the same day, the 5-star dinner may cost 21 hours of labor. Money itself changes its intrinsic value over a span of time.
Money exists without strict limits, and it floats free of gravity. Hence, money is subject to irrational flights of perception. It is the root cause for the extravagant bubbles of prosperity and the gloom of misfortune. Money is the perfect candidate for Einstein's Theory of Relativity. It has never been managed successfully for more than a handful of years. Although seemingly fluid, money does not flow freely throughout a society. The greater percentage of it is sequestered by governments and financial institutions.
For nominal fees, bankers keep tabs on commercial transactions. Investors set monetary values in lieu of future expectations. Government watchdogs validate financial records to maintain public trust.
Money is not free. It carries hidden charges beyond normal accounting fees for commercial transactions. First, central banks retain service fees before they pass money onto investment banks which retain more service fees before they pass money onto local branch outlets which, in turn, skim off accounting fees or charge interest for loans. Second, postmodern markets cannot function without public exchanges that hedge the values of currencies, treasury bonds, stocks and commodities. Market players are rewarded for making selective bets to determine not only current prices but also prices at various dates in the future. This rating system amounts to "consensus guesswork" since no one knows what the future may hold. By the time spendable cash falls into the hands Joe Public, its value has already diminished by multiple handling charges and the inherent pressures of inflation.
In other words, financial players increase the cost of products insofar as the producers of goods & services depend on market makers for loans, investments or trademark exposure. Such capital costs are eventually passed onto consumers. Financial markets consist of institutional traders, brokers, arbitrators, bankers, lawyers as well as investment firms. These players expect a decent return, so they inflate prices without adding any real value. Advert costs add more tinsel to retail prices. If markup prices are set twice as high as the production and retailing costs, consumers get only half-value for their cash, which is in itself vanishing down the inflationary sewer.
The system of high finance brings order and efficiency to international trade, and for this several layers of middlemen exact heavy tolls. Well-established corporations reap full benefits from a cadre of market makers, but small startup firms cannot afford to grease the palms of so many intermediaries, even though middlemen are needed to bring prototypes into mass production. Small firms must seek sponsorships vis-à-vis friendly backers or unfriendly buyouts from larger corporations. In practice, small firms tend to be cannibalized by the behemoths. Transnational corporations do little but manage hundreds of affiliates that provide the actual goods & services. Even so, the transnats employ thousands of workers whose salaries are ultimately paid for by consumers.
Financiers accelerate the flow of money as they draw on private pools or national reservoirs. Retail prices depend on the liquidity of exchange as well as the amount of money in circulation. If the money supply rises faster than economic output, prices will skyrocket. If the money supply falls below economic output, prices will drop while bankruptcies and unemployment rise. Fast money stimulates consumer demand and begets Ponzi schemes, while scarce money brings on the scavengers that gobble companies unable to generate sufficient cashflow.
Despite "hidden" costs, market capitalism has proven it can gratify consumers and reward skillful employees. Money signifies success in the urban game of euthenics. In developed nations, more than 90% of the workforce has moved from primary industries to service-oriented jobs. Automated assembly lines and laborsaving devices aid shopworkers and repairpersons. Hard physical labor is relegated to fitness clubs or prison work gangs. White-collar workers have more consumer choices than ever before. They may select from multiple brands, each providing similar or identical functions. There is a media-driven impetus to buy the newest, cheapest or "hottest" products on the market, which leaves domestic abodes cluttered with stuff that has been used once or twice and then set aside to gather dust.
Corporate venders don’t really care what happens after the sales have been made. End-users are responsible for usage, maintenance and disposal. End-users must pay fees or taxes to have garbage removed and waste water sanitized. Business leaders tend to downplay the environmental side effects caused by postmodern industry. They ignore the infrastructural costs that go with "bargain basement" consumables.
National currencies are forever changing values. They rise and fall with respect to other currencies. History has shown that all major currencies depreciate over the long haul. This phenomenon applies to corporate and ethnic cultures as well as imperial cultures. Cultures rise to the forefront on the strength of innovative technologies that manifest competitive advantages. The paradigm works well for the honeymoon period. As time passes, competitors will jump on the bandwagon, multiply the userbase and dilute the economic advantage. Likewise, crucial resources that bolster the advantage become more difficult to obtain. Unless new technical innovations are developed, the lead culture loses its competitive edge and must devalue its worth.
Cultures have risen and fallen in the past. Today’s interlocking global economy is no exception. Folks of many cultures have bought into the notion of evermore prosperity. Each wants his or her fair share of the consumer pie. The trouble is capitalism is skewed and inefficient; it churns out more losers than winners. To complicate matters, 20th-century producers have squandered the cheapest and most available resources. Capital markets downplay the per capita downtrends by letting retailers flood their shelves with disposables, which flaunt attractive tho smaller slices of pie for greater numbers of consumers. Economists discount the present costs of future goods & services. In effect, they guarantee future yields that are not feasible. Politicos worry about short-term results while they avoid all mention of longterm consequences. They keep homeland shops are well-stocked with plenty of goods with little regard for quality. Politicos never say who will pay the ultimate cost. They avoid looking under the veil that hides deep pits of entropy.
Dominance and profit grabs go hand-in-hand with free-market economics. Central banks aim to manage sustainable economic growth. But in practice, their motives and decrees seldom aid individuals or small businesses. Nor do the financial players seek to preserve ecosystems or improve environmental quality for folks at large. Their bottom line is skimming profits from the real economy. Financiers act as if they’re contesting a Monopoly Game with an endless supply of money.
A better approach would be to link the money supply to environmental capacity. Parasitical middlemen would be eliminated in favor of scientific tribunals that would determine which businesses are best able to deliver the maximum benefits from the available resources. The value of money would become far less volatile, neither appreciating nor depreciating. If the scientific tribunals could be made transparent and free of bias, all nations of the world would enjoy sustainable livelihoods and ecological certainty over the long run.
Money exists without strict limits, and it floats free of gravity. Hence, money is subject to irrational flights of perception. It is the root cause for the extravagant bubbles of prosperity and the gloom of misfortune. Money is the perfect candidate for Einstein's Theory of Relativity. It has never been managed successfully for more than a handful of years. Although seemingly fluid, money does not flow freely throughout a society. The greater percentage of it is sequestered by governments and financial institutions.
For nominal fees, bankers keep tabs on commercial transactions. Investors set monetary values in lieu of future expectations. Government watchdogs validate financial records to maintain public trust.
Money is not free. It carries hidden charges beyond normal accounting fees for commercial transactions. First, central banks retain service fees before they pass money onto investment banks which retain more service fees before they pass money onto local branch outlets which, in turn, skim off accounting fees or charge interest for loans. Second, postmodern markets cannot function without public exchanges that hedge the values of currencies, treasury bonds, stocks and commodities. Market players are rewarded for making selective bets to determine not only current prices but also prices at various dates in the future. This rating system amounts to "consensus guesswork" since no one knows what the future may hold. By the time spendable cash falls into the hands Joe Public, its value has already diminished by multiple handling charges and the inherent pressures of inflation.
In other words, financial players increase the cost of products insofar as the producers of goods & services depend on market makers for loans, investments or trademark exposure. Such capital costs are eventually passed onto consumers. Financial markets consist of institutional traders, brokers, arbitrators, bankers, lawyers as well as investment firms. These players expect a decent return, so they inflate prices without adding any real value. Advert costs add more tinsel to retail prices. If markup prices are set twice as high as the production and retailing costs, consumers get only half-value for their cash, which is in itself vanishing down the inflationary sewer.
The system of high finance brings order and efficiency to international trade, and for this several layers of middlemen exact heavy tolls. Well-established corporations reap full benefits from a cadre of market makers, but small startup firms cannot afford to grease the palms of so many intermediaries, even though middlemen are needed to bring prototypes into mass production. Small firms must seek sponsorships vis-à-vis friendly backers or unfriendly buyouts from larger corporations. In practice, small firms tend to be cannibalized by the behemoths. Transnational corporations do little but manage hundreds of affiliates that provide the actual goods & services. Even so, the transnats employ thousands of workers whose salaries are ultimately paid for by consumers.
Financiers accelerate the flow of money as they draw on private pools or national reservoirs. Retail prices depend on the liquidity of exchange as well as the amount of money in circulation. If the money supply rises faster than economic output, prices will skyrocket. If the money supply falls below economic output, prices will drop while bankruptcies and unemployment rise. Fast money stimulates consumer demand and begets Ponzi schemes, while scarce money brings on the scavengers that gobble companies unable to generate sufficient cashflow.
Despite "hidden" costs, market capitalism has proven it can gratify consumers and reward skillful employees. Money signifies success in the urban game of euthenics. In developed nations, more than 90% of the workforce has moved from primary industries to service-oriented jobs. Automated assembly lines and laborsaving devices aid shopworkers and repairpersons. Hard physical labor is relegated to fitness clubs or prison work gangs. White-collar workers have more consumer choices than ever before. They may select from multiple brands, each providing similar or identical functions. There is a media-driven impetus to buy the newest, cheapest or "hottest" products on the market, which leaves domestic abodes cluttered with stuff that has been used once or twice and then set aside to gather dust.
Corporate venders don’t really care what happens after the sales have been made. End-users are responsible for usage, maintenance and disposal. End-users must pay fees or taxes to have garbage removed and waste water sanitized. Business leaders tend to downplay the environmental side effects caused by postmodern industry. They ignore the infrastructural costs that go with "bargain basement" consumables.
National currencies are forever changing values. They rise and fall with respect to other currencies. History has shown that all major currencies depreciate over the long haul. This phenomenon applies to corporate and ethnic cultures as well as imperial cultures. Cultures rise to the forefront on the strength of innovative technologies that manifest competitive advantages. The paradigm works well for the honeymoon period. As time passes, competitors will jump on the bandwagon, multiply the userbase and dilute the economic advantage. Likewise, crucial resources that bolster the advantage become more difficult to obtain. Unless new technical innovations are developed, the lead culture loses its competitive edge and must devalue its worth.
Cultures have risen and fallen in the past. Today’s interlocking global economy is no exception. Folks of many cultures have bought into the notion of evermore prosperity. Each wants his or her fair share of the consumer pie. The trouble is capitalism is skewed and inefficient; it churns out more losers than winners. To complicate matters, 20th-century producers have squandered the cheapest and most available resources. Capital markets downplay the per capita downtrends by letting retailers flood their shelves with disposables, which flaunt attractive tho smaller slices of pie for greater numbers of consumers. Economists discount the present costs of future goods & services. In effect, they guarantee future yields that are not feasible. Politicos worry about short-term results while they avoid all mention of longterm consequences. They keep homeland shops are well-stocked with plenty of goods with little regard for quality. Politicos never say who will pay the ultimate cost. They avoid looking under the veil that hides deep pits of entropy.
Dominance and profit grabs go hand-in-hand with free-market economics. Central banks aim to manage sustainable economic growth. But in practice, their motives and decrees seldom aid individuals or small businesses. Nor do the financial players seek to preserve ecosystems or improve environmental quality for folks at large. Their bottom line is skimming profits from the real economy. Financiers act as if they’re contesting a Monopoly Game with an endless supply of money.
A better approach would be to link the money supply to environmental capacity. Parasitical middlemen would be eliminated in favor of scientific tribunals that would determine which businesses are best able to deliver the maximum benefits from the available resources. The value of money would become far less volatile, neither appreciating nor depreciating. If the scientific tribunals could be made transparent and free of bias, all nations of the world would enjoy sustainable livelihoods and ecological certainty over the long run.
RSS Feed