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Gravitational Economics

(Note: I do not posess a formal education, please refrain from pedagogical attacks as I am "unarmed.") It begins with a friend in college 20 years ago, he speculated on the idea of the "Black Hole Theory" of money. Simply put it deals with entrenched capital or "Mattress Money" and its effect on the economy. The reference was to the black hole that money seems to fall into in society when, for example, individuals with capital hoard it and prevent its circulation, hence "Mattress Money." His general idea was that an individual with hoarded money still effects the flow of capital around them. Money must flow in order to have value. My thought turned to physics. Black holes affect space around them but are invisable. Gravity makes this possible.
"The wealthy get wealthier, the poor get poorer" This expresses the general view of the flow of capital. I believe that some of the equations found in the field of physics could be adapted to analyze this and understand the dynamics. Money is governed by the principle of gravity. This is not just capital gains, investment or interest or any other mechanism for static capital growth. This would be an analysis of the movement of money through society and its effect. For example: the wealthy are constantly being courted. This may involve gifts or significant discounts (or free) products and services. This would constitute the "pull" of capital gravity on people, activities and money. This could be viewed as an extension of the "Canadian Disease" (an economic term). While I understand it, I have not the skills to realize it.


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  • Jul 7 2012: Hello Jan-Bernd, the intellectual property issue is a very large and problematic one. Interestingly enough this is, i believe, a method for establishing command control structures for the virtual future. As the human race is in a constant struggle for a stable system there will be counter-forces such a "Copy Left" and "Creative Commons" efforts. That they win or no is not as important as the balance of forces in the conflict. The Intellectual Property laws are regressive and western-centric. Any modernization of the laws (like the modernization of banking law) would naturally result in a move toward a more balanced and sustainable model. Indeed this is a challange, very critical and a very long topic indeed....
    Regarding scarcity and resource availablity. Physical resources like food and energy are certainly limited. But, with technology both can be extended vastly, and I believe they will. The challenge is to prevent the "Intellectual Property" and "Gene Trolls" from crippling distribution. This was how Rockefeller took control of the oil industry. Very erudite and insightful comments, thank you!
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      Jul 7 2012: sigh.

      rockefeller did not take over the oil industry, not for a single moment in time. this is so disappointing to see that we base our reasoning on statements that are simply factually not true.
      • Jul 7 2012: At a critical stage in the development of Standard Oil John D Rockefeller focused on oil transportation from the oil fields to the refineries. At the time much of this was via horse and wagon. The short version of the story is that Standard Oil used what we would consider today, illegal business practices to gain control of that specific segment of the industry. As a result his domination of the nascent oil industry was set. The rest is history.
        This is my understanding of that phase of Standard Oil's history, If you have correct information please share it with me. I hope that our dialog will continue, its our future, not mine.

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