(Here is the POINT: The world economy requires INCOME from a source that is either outside of itself or UNLIMITED in order to thrive….Again….The world economy requires INCOME from a source that is either outside of itself or UNLIMITED in order to thrive.)
Here's a short explanation of the world economy from someone (me) with access to the most basic of minds. (Please respond if you have a moment.)
In any moment in time, we can look at our private (separate) financial $$ picture and paint it this way.
We own some $$.
We owe some $$.
What we own minus what we owe equals our “net worth.”
In accounting this sums up the Balance Sheet.
The only way to change the net worth of our nice and tidy closed little system (from moment to moment) -- is to own more or owe more -- to bring $$ in (INCOME) or send $$ out (EXPENSES).
In accounting this sums up the Profit or Loss Statement.
In truth, our little financial ecosystems, are not closed….They rely on money coming in and money going out. If there was nothing going in or out, our “worth” would have no value or meaning… no purpose at all.
Think of an extended family, say 10 members. Each person owning some $$ and owing some $$....You could put it all together and make it into one giant snapshot of Net Worth for that group. Together we own a million dollars, and together we owe a thousand dollars. Nice.
Yet again, for that to have any value (or any inherent meaning at all), there must be $$ coming in and/or going out. Why would those 10 people want that million dollars without something around to spend it on?
Extrapolate in your mind again…..this time for a city, a state, a country….
Eventually $$ has to be added into the system from somewhere outside of the system. Right?
It’s true for the individual….it’s got to be true for a group of individuals as well, even a really big group (like everyone alive right now.)
There has to be money coming in or going out from that system in order for it to work.
So eventually $$ has to be added from somewhere OUTSIDE of the system.
Whether it is printed or discovered deep inside the earth or somewhere on the moon, there has to be a source that is unlimited in order for the economy of exchange (which is what our economy is - in the most basic of senses) to continue working.
So who decides what has value? A dollar bill or a gold coin? “We” do, of course, by our agreement. (More specifically the people with some force and power who the rest of us are likely to fear decide for “us”…It used to be a king, or a chief, or a demi-god....today it may be someone we elect....but they still have POWER....cause we agree to give it to them.)
Once the dollar bill is less and less accepted (eventually that may happen, I hear) …what will there be then? It has to be something unlimited (or close) for the system to work indefinitely.
Amazingly, fortunately, incredibly, awesomely: There stills exists AIR, WIND, SOIL, FIRE, WATER….and GRAVITY. (These "things" are as close to unlimited as we can experience in these bodies.)
AND we get to continue to live here on Earth with those unlimited resources as long as our bodies can adapt to whatever Mother Earth metes out.
The POINT is: The world economy requires INCOME from a source that is either outside of itself or UNLIMITED in order to thrive….Again….The world economy requires INCOME from a source that is either outside of itself or UNLIMITED in order to thrive.