The Law of Conservation of Currency

Open Carry
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The reason the Democrats went bad economically is the lack of discipline and understanding.

In detail, you can avoid inflation, even if you print new money, so long as you also remove a comparable amount of currency from circulation. One way to do that is endless war; it basically burns money in an unrecoverable way. Another way is to fund programs that leave no value behind, especially foreign programs that leave no value behind. To avoid inflation, the rarity of the currency must be maintained, and so the total amount of dollars circulating in your economy must be conserved. It’s like the physical laws of conservation of mass-energy, conservation of momentum, and so on. This is the “law of conservation of currency”:

$injected = $destroyed → no inflation

But if the government has to print even more money, on top of what it already printed, to cover these money-burners as well, you get inflation. You’ve injected an excess of currency:

$injected++ > $destroyed → inflation

Also, if you confuse money-burning spending (e.g. war in the Middle East, affirmative action programs, foreign gay pride parades) with spending that actually leaves recoverable value (investing in productive science, nuclear power, battery tech), you fail to remove currency that you printed from circulation, and so in this case you also get inflation. You’ve failed to remove the excess currency that you printed:

$injected > $destroyed-- → inflation

So, if you are going to print money, you also need a clear understanding of what spending generates recoverable value and what spending does not. It’s tricky, especially if you are an elite who wants the temporary power and pleasure that this generates. Watch the movie Brewster’s Millions.

If the elites don’t keep these things straight, if they don’t keep this fiscal discipline, the value of our currency will go down the tubes.

But the elites are addicted to power. They are enchanted by the idea that they can reallocate money without inflation, as long as they follow the simple law of conservation of currency. Over time, this knowledge got distorted into “you can print money, as long as you spend it.” And that is the Democratic Party today.

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On a related note, why did the Great Depression end after the two World Wars?
It’s because war destroys money. First the dollars turn into fuel and bullets. Then the fuel is burned up, and bullets are shot and lost. So dollars are removed from circulation:

$injected < $destroyed++ → deflation

That let our economy recover, and made the American family of the 1950s the wealthiest in the world.

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These ideas may very well be wrong. I already know that what I’ve written is a simplification.

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Actually it was in between WWI and WWII.

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Yup.

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I did some reading into economic theory. The basic idea about controlling inflation with the money supply is called Monetarism, while in contrast Keynesian Economics proposes to control inflation via encouraging more purchasing.

Both Keynesian and Monetarist systems use this equation to model the economy:

MV = PQ

Where M is money supply, V is the spending rate (“velocity”), P is the average price of goods, and Q is the quantity of goods exchanged.

Keynesian Economics assumes that M, (money supply) is mostly constant and that the government should try to increase V (velocity) with stimulus payments (Obamaphones, COVID Economic Impact Payments) EDIT: to get businesses to respond by increasing production capacity and thus Q. With economies of scale, P goes down, and inflation is controlled. In contrast, Monetarists assume that V is mostly constant or predictable, and that the government should print less money to control inflation.

Monetarism in the past has successfully modeled the Great Depression after the fact, predicted the eventual disconnect between inflation and unemployment in the 70s stagflation, and inspired successful recoveries from the inflation of the late 1970s in America and Great Britain. However, their indirect method of reducing the money supply, via increasing interest rates, had the side effect of causing a recession in the 80s.

The only things I added are the theory of how Democrats got confused, and the theory that to control inflation one can remove currency from circulation with destructive spending. Of course the tradeoff is that with destructive spending, economic stability would depend on the fiscal discipline of whoever is in power, and the market instability that forced reallocation of funds causes.

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An economics professor discusses the recovery from the 70s stagflation: How we got there with Keynesian Economics, and how we recovered with Monetarism.

The solution was to reduce the money supply, and cut taxes on businesses and individuals.

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You can not print imaginary play money and not expect to devalue the dollar and that forces more money to be charged for everything.
Also when we dont have anything backing the dollar it is essentially worthless to begin with. ie… Gold Standard

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I was not going to venture in here, despite it being a subject I enjoy, but we don’t print imaginary play money, we print debt instruments, money is only evidence of debt, each dollar in your wallet or bank shows you put your time/energy out to someone else, they can never pay you back, your time and energy are finite, they can only satisfy you, satisfy the debt

The real money is the people

You have no idea how close you are to grasping it

https://www.yadvashem.org/holocaust/this-month/november/1945-2.html

Aktion T4 was a larger study than it appears on its face, each slice of bread was accounted for to take care of an undesirable, the real undesirable is one who does not contribute to the welfare of the State, that slice of bread times three meals times thirty days times one year, combined with all other necessary life sustaining costs was added up, then proposed as a cost saving measure, to liquidate the asset for the greater good, on paper it works, so it was put into larger practice, its bigger than I care to type, and it is real.

Why was there an explosion of growth after the second world war ended?

How about, where did all the tangible wealth go, the evidence of what the people who perished had, gold, art, stocks, bonds etc etc

History repeats guys, our national debt will be on the headlines soon, along with ideas to fix it, do you or a loved one get a monthly check, think you’ll still get it… or do you think that will need to be cut out to reduce the money supply, the debt.

We are a credit nation, credit ledgers are balanced by debt, you can not have a battery without both the plus and the negative, I once had a great pamphlet that explained how the economy parallels electricity, how each item, a resistor for example exists in our economy

Its heavy, and simple, anyone who wishes to have a “different” understanding of how things “might” work should study the UCC, starting here, this is old, many parts have changed, but, if you’re diligent, you’ll get there

memorandum
memorandum1920Ă—2512 615 KB

every contract for the payment of money, simply, is necessarily subject to the constitutional power of the government over the currency, whatever that power may be, and the obligation of the parties is, therefore, assumed with reference to that power

https://constitution.congress.gov/browse/essay/artI-S8-C5-1/ALDE_00001066/

When it borrows money on the credit of the United States, Congress creates a binding obligation to pay the debt as stipulated and cannot thereafter vary the terms of its agreement.

https://constitution.congress.gov/browse/essay/artI-S8-C2-1/ALDE_00001056/

Consider, Joe Citizen as the asset borrowed against, his energy, his value, for now even those who are negative, those who siphon off rather than supply energy have value, that can be changed with a good strong voice leading …directing people to do so, for their good, for the good of their nation, all people have to do is suffer a bit, then believe, buy the propaganda, here’s a great example, the addition of AI should NOT BE IGNORED

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I understand what your saying Robert …but the national GNP is about 14.2 Trillon and we sit at 30 trillion in debt and counting. To me that is fake money . If it is the people who are the valued product borrowed against then we aint worth spit.

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That means our GNP goes into 30 trillion 2,143 times … so 2,143 years from now if not one red cent was ever spent on another worthless program (like the longevity of bullfrogs) or anything else then it would take that many years to pay it off .

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There is a Germanic School of Economics known as the Austrian School. The following excerpts from an article here.

*The Austrian School believes any increase in the money supply not supported by an increase in the production of goods and services leads to an increase in prices, but the prices of all goods do not increase simultaneously…

… Business Cycles

The Austrian school holds that business cycles are caused by distortion in interest rates due to the government’s attempt to control money. Misallocation of capital takes place if the interest rates are kept artificially low or high by the intervention of the government. Ultimately, the economy goes through a recession.5*

Learn more about the Liberty Minded Austrians here

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