Morality of Money and the Money Question

•       Morality of Money and the Money Question

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•        We know already many facts about monetary system. We've found proves of how money are created around the world. But do we have any scientific model based on these facts that predicts the fall on current monetary system? What is the value of probability of such possibility? What kinds of belief are there? How can critical thinking define your beliefs?

•      Those who understand science , understand also the importance of this questions. Many of us have changed theirs lives due to the facts about which we have learned. But there are many possibilities of world changes and we really should wonder how we can apply new models in science economycs . If we don't have such model, i wonder who is interested in building it?

    

•       In 1971, USA took the dollar off the gold standard. This was the last of a series of events where major currencies had done the same thing. Forty years earlier Britain had taken Sterling off the gold standard. It put the pound on the dollar standard which was on the gold standard. Then in the 1960s the politicians tried an official bank gold price and a separate free market gold price. This didn’t work. So when Nixon realized that the Federal Reserve had been printing too much money, he simply took it off the standard that reminded him he was doing something naughty . A standard is unwanted if you have a bad conscience. Whether gold is the best standard is one question. Not having any standard at all but the judgement of bank officials and politicians is quite another one. The USA had become the virtual world Central Bank without any control of most of the people on the planet who used it.

•       Nixon’s decision meant that USA could print as much money as it wanted. But as the USA had the world reserve currency and gold became just a metal, there was no real restraint. The Europeans complained. With good reason: international trade demanded proper standards.

•       In September 2008, the total number of dollars on the Fed’s books was just under 850 billion. But 70 per cent of this circulated abroad and only about 250 billion circulated inside the USA. President Obama will now increase the monetary mass by and enormous amount reaching 4500 billion dollars (4.5 trillion) by the autumn.

•       However, who wants these tourist dollars outside the USA? Major dollar reserve holders like Russia and India are already selling their dollar reserves, others are expected to have to do the same. Some Arab oil-producing countries like Saudi Arabia are going into current account deficit. That would make it unlikely that they will become big dollar buyers later on.

•       The capitalistic free market model underpins these assumptions as money is the chief motivator, incentive, and reward to capitalistic agents and the reason money works so well, is because it represents everything else that humans may want to desire,and till now , money can be exchanged for them.

•       Is there math involved ? Sure, but we don't know of any reliable source where we can pull all of the info needed to figure out worldwide stats for every worldwide and local industry in existence across all of the countries of the world. Even if such a repository of info was available to us 'little people', We seriously doubt that it would contain the true numbers (state secrets, national security, etc.). Personally, I'd rather remain satisfied with the above understanding that the concept of a monetary system is nearing it's evolutionary expiration.

      If we don't build up the support we need before it occurs, those who have been pulling all of the strings will surely figure out some way to perpetuate the sham and all of its misery (or worse) for an additional amount of time. Best guess would be everyone's complete and total reliance on some One World Government's welfare system. We humans deserve so much better than that.

•     There are mathematical models of cash flow and how an economy works in economic science.  However,  these are really poor models. They start with boundary conditions that have nothing to do with real life (for example a constant number of workers). There is a whole branch in math, financial math, which is pretty hard stuff, dealing with all this. Anyhow you can look at the predictions the big (university, government or private) financial institutes made over the years, on what is happening in the next year. They have not prediced one trend, havent forseen one crises. That tells alot about their economic models. It a miracle why the government is still listening to these people.

•        It’s unrealistic to have a precise model, since the system is so big, there are so many variables and the correlations of these variables to one another is highly non-linear. Im not even talking about the global economy here. And even if you would get it right, you still need the correct initial conditions, which is so much (mostly outdated) data to compile.

•       The only way to truly answer your question is to put aside and ignore any and all topics and subtopics that can be 'fixed' (even if those fixes are temporary). The one thing that cannot be fixed or covered up much longer (the elephant in the room, as the saying goes)  is that technical analisys works , is telling us many ’’secrets about the future’’  and is pointing now to a more real resource base system than ever , and can show some pure rational mathematical evolution , based on movement of Elliott counting method and Fibonacci measures.

•       The markets behavior is not rational. I think that is more based on expectations given by time and that the time cycle given by matter is the reason beneath that     .                                                                                                                                             Cosmin Bogdan Pavel