It Stands to Reason - Part I
Money is Production
On July 26, 2025, Forbes published a review written by John Tamny of my book, The Moneyball Method. It was also published on July 18, 2025, at RealClearMarkets.com. This brief essay will focus on a quote from their twentieth paragraph:
The very notion that central banks could “gun” so-called money supply, or equally ridiculous, that central banks could contract so-called “money supply,” insults common sense. Production is money, it’s an expression of a desire to get, so to pretend as the right and left do, that economic progress or contraction is an effect of how “easy” or “tight” a central bank is, really and truly vandalizes reason.
But what is common sense? The Preamble to America’s Declaration of Independence reads “We Hold These Truths to be Self-Evident.” And those “truths” were declared in the next two phrases, but are they self-evident? Did it not take more than twelve centuries – from the fall or Rome to the Age of Reason, for individual rights to be discovered?
For a concept to be self-evident, should it not be obvious and require little explanation? But self-ownership and equality under law are abstract concepts that required cognitive muscle that was first exercised with the Magna Carta.
More specifically, ethical independence became “self-evident” to Adams, Franklin & Co., but only after 15 years of their revolutionary moral achievements gaining critical mass in the Colonies beginning in 1760. Political independence didn’t become concrete on July 2, 1776, and ratified on the 4th of July.
In a similar way, is the fallacy of a central bank’s power over a nation’s economic vitality a matter of common sense? It is, but only if you have studied the fundamental principle of sound economics: Say’s Law of Markets. By that standard, production creates wealth which creates demand which creates economic growth which creates money.
That functions under the law of causality - every effect has a cause. And causes are subject to the law of identity – everything that exists has defining attributes. That is subject to the law of non-contradiction – existents must behave according to their nature and nothing else. Clearly, every entity and their derivative concepts need clear definition.
But when language and reason are vandalized, a society crumbles. In economic terms, money is production – and by definition, governments and their central banks produce nothing.
And how does this effect you? From Chapter One of my book, “Price inflation can be caused by many things, but never too much money chasing too few goods, as the pundits like to say. Money is not stupid – malfeasance is the sole domain of the money supply manipulators.” To learn more, please click the link below:
https://www.amazon.com/Moneyball-Method-Middle-Class-Manifesto-Objective/dp/1696009111/