lunes, 14 de diciembre de 2009

What the true wealth is? The monetary illusion

Most people think that money is the true wealth. The reason is very simple: because so far you can buy the majority of goods with money.
Too few things you can not acquire with money: the live, health neither true love. The problem is that those are the most important values of the life. You can not avoid the death. The billionaires die the same than the poor’s. There are illnesses that can not be treated with success. The true love is the other vital situation that the money can not buy.
Until now, in the developed nations, you can buy water, food, energy and other material elements if you have money. In the underdeveloped countries is different. There are regions where you can have money but that is not enough for getting the basic goods for live.
The first warning about the natural resources vulnerability was given by the Arab nations in the year 1974, when they decided to impose a petroleum seizure against the United States and Europe, because of the support of those countries to Israel during the Six Days War.
With the exception of that period of time, the developed nations, United States, Japan and the Western nations of Europe has enjoyed of the most natural resources in abundance. Some underdeveloped nations has not had the same luck. The African continent, some regions of Asia, Latin America and Oceania has been affected by the lack of resources, and this provoked the hunger of millions of people in those areas.

An important change in the economics concepts

The traditional economy has assured that oxygen and water are abundant goods; for that reason the first has not had a specific price and the price of the second has been reduced. But that trend started to change and already the oxygen is being appreciated in other dimension and the water price has reached an important increase in many countries.
In the 21st century the perception of the natural resources abundance is changing. Today are scarce the abundant goods of the recent past. Scarce goods are now oxygen, water, food and petroleum; all they are forms of energy. Without those goods the live is not possible. We can say that the modern evolution has affected the quantity and the quality of the energy sources.
The pattern of production and consumption followed until now and the pollution has become abundant resources in scarce resources. Vital goods are running out and this represents a deep change in the economic paradigm.

Wealth and happiness

There is a difference between wealth and happiness. Wealth is material abundance. In change, happiness is knowledge, health, love, employment and material satisfaction. You can be rich but unhappy.
A people or a country may be rich because possesses a great amount of material resources, but unhappy and underdeveloped, because do not have the most important things of the life: knowledge, health nor true love. The development is a combination of these values.
The knowledge is not only privilege of the scientists, the techniques nor the humanists. The modest people have a great knowledge. The farmers, the fishermen, the highlanders have a deep knowledge; they are in touch with nature and that contact give to them a special sensibility and vision of the life. It is the wisdom of the simple things. They know when the time of to sow, to sever and to harvest is. They know the essence of the trees, the behavior of the tides, the weather changes.

The first causes

The most advanced stage of the knowledge is tied to the comprehension of the first causes. Man only discovers the reality of nature. For example, the atomic energy has existed ever; but man discovered and employed it in the 20th century; not before. It is sure that other knowledge’s exists in nature that man still has not discovered but it is very likely that realize it in the future. The comprehension of a part of the true reality of the space and the time, the domain of the illnesses, for example, might be possible in the coming years.

The energy sources use

The Industrial Revolution may be considered as the Revolution of the Energy. Since the beginning of the civilization until the First Industrial Revolution (1769) ---when James Watt created the machine of vapor--- the world used the wood as the principal source of energy. But with the creation of the machine of vapor ---fed by coal--- the situation changed and a new scale of production was developed; this helped to the transformation of the handcraft scale into industrial production, one of the most important advances of the humankind.
The discovery of petroleum in the year 1869 and their later use as new source of energy for the most activities generated a modern scientist and technological development.
Man has overexploited the sources of energy; first he razed the forests for obtaining wood; the whales for getting oil; after it overexploited the coal and the petroleum and in the last decades of the 20th and 21st centuries began again to raze de forests that still survive in the planet.
But the most danger for humanity is the growing employment of atomic energy. In the last decades some nations has appealed to this form of energy because of the restrictions in the availability of other sources as the petroleum and the hydroelectricity. The construction of new atomics plants represents a peril for mankind. The effects of Chernobyl are still present and it constitutes a clear example of the things that human beings must avoid.
Still the science has not been able of creating a massive substitute for the fossil energy; this is one of the major challenges in the world future.
The issue is that none other element has the energetic intensity of the petroleum; for example, the energetic power of a liter of gasoline can not be compared with none other source.
The coal is the other form used in many countries. China has important reserves. The great problem is that coal is the most contaminant element.
Meanwhile, the climatic change, the global warming, is everyday more intense. The glaciers lose the snow worldwide, the oceans level grow and the forests disappear in many regions, specially in the Amazonia, the last natural reserve that still survive in the planet.
That is the reality, a fact linked to a basic conception: that the true wealth is money and other things do not matter. For that reason the countries has not made a real effort for preserving the environment.
The production is oriented to producing money and not to the satisfaction of the human beings necessities. The financial economy is in the first place and the real economy after.
In the year 2008 the bailout was for the financial economy and only a little part for the industry and the citizens that would loose its homes.
If the world does not change this manner of to see the life, the collapse will be unavoidable. In too few time the financial system will fall again; that is a cyclical process derivate of the system nature. The system receives money and spend money for to increase everyday the richness of their owners; very simple.

Monetary illusion

The monetary economy born as consequence of a necessity; the bartering was not able of responding to the increase of the volume of commercial transactions. For that reason, essentially, appeared the monetary economy.
In the money man found a manner of representing the value of the things, in the same form that in the writing he found a way for expressing its thoughts.
But money created a distortion: man think that the accumulation of money constitutes the real wealth of people and nations; and that is a mistake, a great lie.
In the current reality money is only paper and coins without a true value. In the past, when money was developed of gold and silver, the situation was different because the money had a proper value: the value of the gold and silver.
But now money is a simple instrument that let to change that paper or coin by goods or, sometimes, by other currencies more accepted in the market.
The unique base or support of money is the credibility that people have in the money as instrument of change.
So far, the currency for international commerce has been the dollar of the United Sates of America. The majority of the international transactions are realized in this currency. With the born of the Euro a part of those transactions began to be made in the new currency.
Some countries have begun to criticize the use of dollar as instrument of international exchange. In that sense, the news agencies has informed that Iran, Russia and China has considered the use of their national currencies for the petroleum transactions.
This reveals that nothing is definitive. The change is permanent. What will happen in the future? What do you think?

The new economic paradigm

The traditional economy has been supported in the idea of the abundance of natural resources and the scarcity of the resources of capital. But now, in the 21st century the situation is different. Now the scarce factor of production is the natural resources. The signs of water and petroleum shortage already are evident. The impact of these facts on the global production, consumption and the inflation will be more intense.
The value of money will be each day minor as consequence of inflation and the reduction of the natural resources availability. This process will put in evidence that money is really an illusion and that the most important is the knowledge, the environment, the natural resources and the material production.
God bless the world.

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