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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: Ah! I was unaware that you are familiar with the work of Mises. I understand a little better your "angle of view." I have great respect for the work of great minds, like Ludwig Von Mises. There were recorded incidents of actual violence against teamsters (the horse "team" drivers, the origin of the modern use of the term in America) as well as competitors that refused to give in. Much of the tactics used would be recognized today as corporate espionage, price fixing and other business practices currently frowned upon.
    As I mentioned in my two part post, I am hopeful of "staying on point" with regard to the subject of potential new economic theories and mechanisms. Positive or Negative assertions regarding the ethical character of past events is illustrative but not actionable. We are, like it or not facing the formation of a global society. This requires letting go of the past and "he said, she said" and begin a dialog on a potentially better idea. Your knowledge on the subject is well developed and your input very probative as to the nature of what has and hasn't worked and how to view future industry, capital and society.
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      Jul 7 2012: any sources on violence?

      price fixing is a meaningless term. my prices are always fix, until i change them. and i can do nothing to competitor prices.

      in my book, corporate espionage is not a crime, as long as no property violations or coercion is involved.

      before we attempt to change things, it is imperative to understand what do we have now. so maybe these sidetrackings are not so much waste of time. i didn't want to just pass by the fact that you called one of the biggest modern day heroes a culprit.

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