Saturday, December 27, 2008

Gravity and Inflation - A Point Of View


Gravity is one of the most pervasive yet weakest forces in the cosmos.
We can predict gravity, yet its source within matter remains a complete and utter mystery.

We remain convinced that it is an "attractive" force because that is what we perceive. However, equally possible is the theory of "atomic expansion" which would create the identical effects that we now call gravity. See: http://www.thefinaltheory.com/


Caption: Artist depiction of gravity waves around merging black holes. Credit: NASA

The point is that we really don't know if gravity is a mysterious, uncontrollable yet observable attractive force OR an attractive "sensation" we perceive because the quantum effect of atomic structures cause electrons to pierce the atomic cloud by the width of 1/2 an electron thus causing matter expansion. The result and therefore the effect is identical under both theories.

What does all that have to do with money?

Well, the Federal Reserve Note (aka "the dollar") is the base currency of the world. And we are printing a lot of them and plan to continue to do so because of our current worldwide economic crisis. Too much money chasing too few goods is considered inflation. Like gravity, we "perceive" inflation as higher prices. But it is eqally true that the prices are actually the same, it simply takes more dollars to buy the same thing because the dollars are worth less.

Like atomic expansion theory, the latter point (dollar de-valuation) is very hard to understand because, like gravity, it is all around us. We don't see anything else. After all, a dollar is worth, well, a dollar. Isn't it?

How about the law of supply and demand. If there are lots of dollars floating around because we keep printing them, doesn't excess supply of money mean the value of a dollar decreases?

These are hard concepts for many people to grasp, yet they are fundamentally important to them and everything that is going on around them.

Back to gravity... The time will come when science (probably through quantum physics) will show us that gravity as a strange, uncontrollable yet observable attractive force does not exist they way we think it. After all, why doesn't NASA use Einstein mathmatics when calculating orbital equations but rather uses Newtownian geometrical concepts. Hint: Space-time warping is probably an intellectual cul-de-sac.

Another dead-end is thinking that the world base currency (the dollar) cannot be devalued.

It is already happening. Banks are not lending despite infusions of liquidity and near zero interest rates on interbank commerce. They do not want to lend money now and get paid back with dollars that are worth less (much less) in the future.

They know it and no one may speak of it. When it appears to us that prices are increasing, we will not discuss it as dollar devaluation. We will seek to blame someone else.

Do not underestimate the gravity of this situation.

5 comments:

  1. Check this out if you like particle expansion theory. It will take a century for this to be accepted because we are too invested in the present theories.

    http://www.avantgravity.com/3d_gravity.html

    Rich T.

    ReplyDelete
  2. The $2 Trillion Question
    The Fed has made nearly $2 trillion of emergency loans in response to the financial crisis. Under the Freedom of Information Act, Bloomberg News filed suit against the agency for details about the recipients of the money and the collateral they provided. But the news organization reports in a Dec. 12 piece that the Fed refused to disclose the info, noting that "it would be a dangerous step."

    To read the Bloomberg article, go to http://bx.businessweek.com/bailout/reference.

    ReplyDelete
  3. I think the problem is more with the banks themselves because their earnings engine is broken. They are taking losses and now do not want to extend new credit which may turn into increasing losses (i.e. can't make it up on volume). They are working their balance sheets.

    Banks have shifted their business model to be more depended on fee income. For example, my Citicard will allow me to transfer a balance to the card (Up to $20K!) at 0% interest for one year. The catch? An up front 3% transaction fee. Taking all your money (fees) up front manages down your risk.

    M.Tillwin

    ReplyDelete
  4. Another catch to the zero percent balance transfer scam - Payments will be applied first to the balance with the lowest interest. So, until you pay off the $20K zero interest balance, all the balances related to new purchases will accrue compounded interest at 18-20% or higher.

    ReplyDelete
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