THE BIRTH OF A NEW ECONOMY

Stage One in the Life Cycle of Money

Wednesday May 30th, AD2007

From the ashes and ruins of past collapse, men and women once again take up tools and begin to work. It may not be from the ruins of a past cycle, but rather that a new people have migrated to a new land, but the principle remains the same. Man, by applying his labour to natural resources, brings forth the production of tangible assets, those things essential to the sustaining and improvement of human life. 

This is the birthing of a new economy. Quickly a division of labour will appear, where different people will specialize their labour in different areas. For example, one man may enjoy raising cattle while others prefer to till the earth. One tiller of the earth prefers gardening fruits and vegetables, while another understands better how to grow grains such as barley and wheat. Yet another man becomes a proficient lumberman, felling and dressing trees for timber, fast becoming a popular building material in the now emerging economy. Another man mines for metals and minerals. 

Each of these men and women by applying their labour to their natural resources are creating wealth, not only for themselves, but also for the entire community. Naturally a market place exists, where the people can trade the product of their labour (their production) for other needs 
and wants. The gardener can sell his fruits and vegetables for beef and timber, while our lumberman can trade timber for food. 

Our newly birthed economy has developed naturally into a barter of exchange economy; a 'Free Market has Emerged' which is Stage One in the Seven Stages of the Life Cycle of Money' (1)

If it is well managed, where people continue to apply their labour, if they produce more than they consume and the surrounding natural resources are plentiful and accessible, this emerging economy will quickly grow and prosper. It will become an ordered community (a 'society') and eventually become a wealthy and great economy. Very soon our economy will move into the Stage Two of the Life Cycle of Money. 

Sincerely - Philip Judge pjudge@anglofareast.com 

(1) http://www.anglofareast.com/images/LCM1.jpg