Wednesday, May 23, 2007

ECONOMICS EVEN AN IDIOT CAN UNDERSTAND.

ECONOMICS EVEN AN IDIOT CAN UNDERSTAND.
A big problem as I see it is far too few people in this country truly understand how "A free market place is suppose to work." In my view most of the people in this country do not understand the theory and foundation of a free market place. What we have today is a system that is feeding on itself and using inflation to keep the fire burning.

I hear people calling into talk shows complaining that they were doing good when this person was in office and doing bad a month later when another person took over. Just because an economy is booming today doesn't mean the right thing was done to make the boom last. You can throw gas on a fire but it is not the same as putting a log on the fire that will last much, much longer. Now, who appointed me an authority on the economy, me.

The fact is I'm not an authority on the economy, I'm just a writer with a lot of common sense. Socking it to the rich and spending heavily on construction and social programs is like throwing gas on the economy because it can't last and will bankrupt the country in the long run. Believe it or not the truth is an economy is just like life itself it must have a rebirth cycle sooner or later. Nothing can go on and on forever.

True wisdom dictates that the kind of nurturing a nation has in place to support a rebirth is really what matters because time is running out on us. That is why good morals and family values have been so important throughout history. That is why almost every society known to man has had some type of religion. Understanding a free market place actually is fairly simple if you go back to the beginning.

The beginning and foundation of an economy actually boils down to being able to produce or create something of value. The second stage is trade by bartering, which is a crude and inefficient means of doing business. The problem with bartering is one can only barter with those that need or want what one has to offer. That can causes one to end up with an over supply of something that one can't get rid of.

Therefore, some type of a currency was a must. The next stage was developing a currency. A currency can be anything that is rare, valued, and in demand. Some prisoners have been known to use cigarette as a form of currency. African tribesmen uses cattle as a form of currency. The civilized world first used gold, gold coins, or some other precious metal as a currency.

Throughout history until late in the twentieth century a currency was always something of physical value or backed up by something of physical value. Not so any more, most world currencies are backed up only by faith and the paper it is printed on. In terms of being real money there is no difference between our money and monopoly money, except the word "Faith." Civilization was built on physical reality, not trust and faith.

In the early stages someone figured out why carry around all of that heavy gold, just let a paper bill represent a set amount of gold locked away in a safe place. That is the way it stayed in this country until president Richard M. Nixon took us off the gold standard. When all currencies had to be backed up by a set amount of gold the biggest problem for a businessman was raising enough capital to expand because the government and banks could not print money without the gold backup.

About that time someone figured out if a business wanted to expand why not divide the business into many shares and sell the shares to the public. That idea was the beginning of the stock exchange and was one of the biggest breakthroughs to modern day economics. Another big breakthrough to modern day economics was the invention of compound interest. That said, this is about all one needs to know to under the basics of how a free market place should work.

One can get lost in all of the other technical stuff which is basically policy procedures. We have ignored two natural laws of economical long term survival. The two natural laws are rebirth and relativity. You see, morals, values, and the economy are relative to one another and rebirth is life itself. Nothing mentally or physical can exist without a rebirth process. Good morals and values are what sustains a society when a rebirth do take place, its not a matter of a rebirth taking place, its a matter of when.

A physical accountability currency was the counter balance that used small rebirths to purge out over powering threat to good morals and values. Now there is nothing to save our morals and values because as humans self interest controls us, there must be a physical barrier ultimately. Sure, I keep screaming about privatising social programs that I'm sure is our last hope to save our culture, but I know the liberals have created too many dependents and it's not going to happen.

Now, only divine intervention can save the greatest run of individual freedom to ever exist. The key words self interest struck a chord with me, these two words are awesome, they speaks volumes. These two words are behind almost every social problem we have today. They are why the nation is split straight down the middle.In my view they places us at a crossroad and which way we go determines weather we as a nation survive or parish.

As a rule people are going to vote for what they perceive to be in their self interest. Today reason and what is actually best for the long term survival of the country lags behind. Our welfare state is what has caused these two almost equal schools of thought concerning self interest. Our welfare state has conditioned masses of dependent minded people to view government as the great provider.

These people have closed their minds and decided who they think is going to do the most for them, subject closed. As far as they are concern any abstract reasoning is just pesky noise and they don't want to hear it. Almost nothing seems to matter to these people, not character, not the country, not the future or anything if someone panders to their self-centered self-interest.

They do understand that the government survives on taxes but their reasoning stops there. They can't seem to make the leap to the other side of the coin and understand that too big of a tax bite will kill the goose that lays the golden egg. They don't understand the human factor and view the rich as just another material cog in a giant machine. They can't see that the rich even more so as all of us only works harder to receive a bigger reward.

The rich as all of us feel why should they work their tails off and receive no greater reward than someone that haven't done anything. That is why communist and socialist government stays poor because there is no incentive to reward self interest. Sure, the poor should not be neglected but that is the job for the nuclear family, the church, or the community, not the government except as a last resort.

You can write me off as a kook, because I for one think it is insanity to believe that big government will always be able to provide for us from cradle to grave. Once we got off the gold standard at that point we entered a no mans land.At that point we threw away the economical compass with no way back home. Now we are caught up in an ever increasing inflationary spiral and who is in power only determines how fast we spin out of control.

We don't have to be sitting ducks there is always something we can do. Privatising social programs would give us a fighting chance to save our morals and values to nurture the rebirth that is going to happen. Because there may be divine intervention there is always hope. There is a reason why most of the world is poor and will always be poor. There never has been and never will be a rich and prosperous nation without a lot of rich people to make it happen.


Poor nations tend to rule with power and a very few super rich or privileged class. I, for one say thank god for American corporations and rich people. American corporations are the envy of the world and very well should be. Yes, I hear all of this jobs going overseas talk. But, the truth is high taxes, regulations, codes, and other mandates forces American businesses into a "Fail or sail" position.

To those that want the borders locked as tight as a drum! As a writer I grant you your wish. The borders are now locked as tight as a drum. Now, "let me ask you, have you thought the whole matter through and looked at the big picture." No, you haven't, but you will because we are going to get awful hungry. With our welfare state you can't get Americans to do the hard tough farm labor in blazing heat.

Even the poorest of the poor will not do farm work at decent wages. Now don't get me wrong, something need to be done to stop illegals from entering the country, but its not starving. Other than starving a lot of things can be done. But, anything less than downsizing big government and privatizing social programs is not going to stop this moral decay flesh eating swamp monster from chasing us down and feasting.

Poor nations all over the world would be jumping with joy to have even one powerful corporation. Without our powerful corporations, with the deteriorating conditions of our morals and values we would be worse off than most third world countries. I understand constructive criticism, but all of this nit-picking is self serving. Where the hell do all these socialist thinking dependent minded ingrates think jobs come from, jobs don't just drop out of heaven.

"Calm down, calm down, now." we are all good Americans. We don't have to be of the same mind-set to love one another. Let me, Freddie l. Sirmans, Sr. say this to all responsible Americans of sound mind and good moral judgement, sure, our freedom and great country is starting to be threaten from within. But, take comfort that "The lord works in mysterious ways" and what may seem to be a complete disaster may in fact be "A blessing in disguised."

We all can decide and should treat all people well because each side feels the other is wrong, ignorant, and uninformed. After all, life is about balance, not about extremes. I can wish all people goodwill no matter how they treat me, I can wish all people goodwill no matter how they treat me, I can wish all people goodwill no matter how they treat me... Divine intervention and mother nature is sending a message and warning us to get ready and be prepared.

In times of emergency we depend almost entirely on paid caretakers, which is good. But, long term survival as a nation demands much, much more. Every basic family unit must be conditioned and prepared to take initiative and survive as an individuals unit in case of a natural disaster, a nuclear disaster, a chemical disaster, a biological disaster or whatever. Plus, never forget there may come a time when there may be no pay forthcoming, still we must be prepared and conditioned to continue on.

All of the signs shows of our coming struggle to survive as a free nation. I, Freddie L. Sirmans, Sr. Must keep on shouting to deaf ears.I believe it is my destiny to get out the massage. Sure, many of my views are cold, hard, and extreme because genuine wisdom can be a divine gift that should be shared for the sake of future generations even if it causes one to be hated and scorned at the time.

Many has realized twenty, thirty or fifty years later with deep reverence and tears in their eyes that that hated disciplinarian was the one that really gave them the tools to survive.

3 comments:

  1. Just browsing the internet, very, very interesting blog.

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  2. Adam Smith wrote:
    Adam Smith wrote:
    "The necessaries of life occasion the great expense of the poor. They find it difficult to get food, and the greater part of their little revenue is spent in getting it. The luxuries and vanities of life occasion the principal expense of the rich, and a magnificent house embellishes and sets off to the best advantage all the other luxuries and vanities which they possess. A tax upon house-rents, therefore, would in general fall heaviest upon the rich; and in this sort of inequality there would not, perhaps, be anything very unreasonable. It is not very unreasonable that the rich should contribute to the public expense, not only in proportion to their revenue, but something more than in that proportion."

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  3. I was doing a search for "foundation of an economy" and came across your blog.

    So while I am not commenting on the main thrust of your comment, I want to contribute the following:

    "The beginning and foundation of an economy actually boils down to being able to produce or create something of value."

    Sounds good: now how about this:
    The foundation of an economy (human economy) is FOOD PRODUCTION.

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