Bernard Madoff has pulled probably the biggest Ponzi scheme ever.  A Ponzi scheme takes new cash invested by investors and gives a supposed return to previous investors who think they have invested their money in real assets.  There are no assets.  This is a perfect example of treating money like it is green air.  Everyone is breathing some in a scheme like this.  When enough people want to turn the green air into real assets, the scheme is exposed because there are no assets.  

As I discuss in “A God-Made Millionaire”, money is not green air.  Money must be backed my labor.  That is a fair wage for honest work.  Our government and financial institutions are playing games with money.  Eventually, guess what will happen?  Economies all over the world have become smoke and mirrors. What do you think the eventual outcome will be?            

I recently saw employees protesting layoff on the news.  This backs up one of the points I make in the book “A God-Made Millionaire”.  The point is, many people think money is green air.  Many people have no idea where money comes from or how it works.  Money is labor.  People’s labor produces a certain amount of value.  Labor is not worth need or want.  It has nothing to do with that.  Many people think they should get paid what they want or need. 

People protest layoffs because they don’t understand that their labor is not producing a profit.  When people get laid off it is because their labor is producing a deficit.  All these people know is that they are not getting what they want or need.  That has nothing to do with a job.  That is not how it works.  These people think money is green air so they should have their fair share. 

In the next few month, I have a feeling many more people are going to learn that money does not grow on trees.  Every person who owns a business and works for a business is in it together.  If a businesses pooled labor does not produce a profit, jobs will be lost.        

Sooner or later supply and demand will rule in the economy.  If the government buys dirt for $5,000 per pound, it will not stimulate the economy.  It will just be a band-aid hiding smoke and mirrors.  The supply of dirt does not warrant a demand that would equal the price of a pound of dirt at $5,000.

Compare this to what the little three American auto makers are asking for.  I am not saying the automobiles made by these companies are dirt.  I drive American made cars.  I am saying you can’t sell them for $500,000.  This is the comparison to my dirt example.  The auto industry has knocked supply and demand out of whack.  They have done this by paying employees 5 times what their labor is worth.  Remember, money equals labor.  Sooner or later supply and demand balance cannot be avoided.

If I make cars why wouldn’t I make them in a country where I can pay employees a fair wage instead of giving them charity?  You have heard me say it many times.  Need or want has absolutely nothing to do with the value of labor.  If we want to keep seeing jobs go bye-bye, all we have to do is buy dirt for $5,000 per pound.