fiat money is like nitrogen in plant kingdom

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digging's picture
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Joined: Sep 13 2010
Posts: 20
fiat money is like nitrogen in plant kingdom


While I was working on the new greenhouse I am building I was thinking about the type of money we have created today and I was trying to think of something in nature that I could compair it to that might be simular in effect. First of all I realized it's not always good for things to flow fast in nature, often that leads to waste, lost, & pollution.

So now the pattern I see between money and nitrogen. Well in nature there is two basic forms of nitrogen, simular to complex and simple carbs. The more stable form of nitrogen is slow to leach, nonburning, and often is just the 'right' amount needed by the plants so there is no waste.

The second type of nitrogen is the kind we make and use on industrial farms. Now this kind flows way to fast for the natural system so there is alot of leaching and water pollution, it can cause unbalanced growth that is weak and  soft, the excess off gases back into the air and cause air pollution. Thus lots of waste.

Thus for money to be benefical I think local currency, slow to convert into other currency, so slow 'leaching' , supporting balanced local healthly growth is the only  'type' of money that will work in the end.

What we have right now is money that is acting like a type of pollution. Something way out of balance, causing sickness and uneven growth. Nature is always seeking balance, so how does she clean up nitrogen pollution? By producing 'blooms' that eat it all up.

Money is like nitrogen because it makes everything grow.

I bet if we think about it for a while and look for others patterns in nature we will be able to 'see' how and why this money system will and must flush out. We are part of nature and all living systems on this planet are governed by basic repeting patterns.



the infinite monkey's picture
the infinite monkey
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Joined: Sep 23 2010
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Re: fiat money is like nitrogen in plant kingdom

Hey digging...

Money throughout history has always been a physical representation of the same thing, whether fiat, hard currency or a buffalo skin.

Energy... Or to be more precise,  surplus or "net energy"...

Energy is something man can neither identify nor quantify with our physical sense's without a unit of account to make fair energy exchange possible when trading goods and services.

This surplus of energy is what allows us humans to attain and produce the goods and services we either need or desire... This energy surplus is what man utilizes from food resources to give him an energy surplus which is what he sells (labor) in return for an energy medium (money) that is accepted in trade for a wide range of goods and services. All goods and services of  value requiring an energy input to produce.

With this surplus energy we can do one of two things. Consume it now, or invest it into a means to produce greater energy efficiency per energy unit, thus creating a greater energy surplus. The technology and information that produces greater energy efficiency is called capital. Man has been a capitalist since he produced the first basic tools (such as a hammer, spear etc that produce a net energy gain) and he always will be (if we survive the next century ;-).

Now in reality, there is no difference between fiat currency, gold other than the fact that fiat currency is not limited by physical scarcity. All are given value by the energy claim they represent and trust that the currency medium will redeemed for this energy value is all that is required.

Gold was simply a trusted medium of exchange for the days of the tall ship and the horse and buggy. Before technology (aircraft,radio communication etc) broke down national borders and improved international relations. This gave fiat currency its "trust" factor making gold largely obsolete (and a waste of scarce energy to bother producing as a currency medium). Golds real value was its embodied energy required to produce it (just like today) more so than its scarcity. In the days of old it required huge resources to attain in comparison to extracting gold today with the aid of fossil fuels and capital technology.

In no way wish to imply that precious metals have no value today as a currency, as long as it is trusted as a medium it does. And because governments are caught in an energy supply trap and thus must create new monetary units in order to debase each unit to its energy equilibrium that would revalue debts, that trust in hard currency is growing...

I believe credit (debt) money to be the "polluting nitrogen" of the currency world of which you refer. Credit units being only a fraudulent claim on this surplus energy that debase the energy value of the pure money supply leading to the boom bust business cycle and the expropriation of real value by banking and governmental interests. The world does not need credit to operate, end of story. It is a disease of the worst kind and as it is a claim on future energy surplus for which we do not have (peak oil), its days are numbered.

Hope I have made some sense haha ;-)...

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