HOW TO CLIMAX IN BUYING POWER
If a person owns a farm, he is dependent on profits from the farm in order for him to buy energy for his home, buy lime for his yard and for other essential supplies that he does not make himself. The farmer is forced to go to the store and shop for necessary products he can't make himself. The farm is now under duress to profit margins because the farm needs other supplies. He must buy them because he doesn't produce all of his needs. How does the farm survive? The farm can grow food and sell them to other people so that it can make enough money to buy energy, limestone and other essentials for his home. But, because of this dependency on profit, the farm is at risk of devaluation of commodities and increased prices, resulting in lower profits. This is how many industries lose profit because they are subject to the rising and falling of prices and values.
The solution is to have the farm join a network of other producers who SHARE products and services in exchange for their essentials. The farm produces collard greens. The farmer needs other crops in order to sustain his household. Instead of going to the market, the farmer joins a producer network and agrees to give his collard greens in exchange for 50 other commodities, including limestone, energy and other crops that he usually buys at store. Now that the farmer does this, all of his needs are met. He receives energy, cotton, paper, lumber, bricks, etc. all in exchange for his one product, collard greens. The farmer doesn't have to go to the store and spend money on these essentials that he receives. He receives MORE in value just by sharing his commodities, than he would have trying to sell them in order to make a living. The farmer does not have to depend on profit in order to make a living and cover all of his needs. All he has to do is share his one product in exchange for 50 products in return. His crops increase in value and have climaxed in buying power because his greens supplies ALL other 50 suppliers of different crops and commodities. In exchange for his greens, he receives ALL other 50 crops in return for GIVING just one crop.
As you can see, the system of GIVING and SHARING can increase commodity value and climaxes buying power because the farmer can receive ALL products in the network for producing ONE product alone. This goes for every other producer. Whether it be energy, limestone, onions, tomatoes, etc. As long as these producers supply ONE product for the entire network, whose number is 50, then the entire network will supply him 50 products in exchange for ONE product. This goes for every single producer in the network.
Addendum: Buying power is simply saying how valuable your industry is in relation to how much you can buy. Out of a total supply, an industry's buying power is measured on how much of the total supply the industry is able to buy. If an industry can only buy some of the total supply, then it's buying power is measured accordingly. But, the more of the total supply that the industry can buy, it's buying power increases. If the industry can completely buy the total supply, then the buying power is said to have 'climaxed'. This climaxing is what we want. And we can only climax in buying power if we are able to buy an entire supply. But, we have to first CREATE a supply.
In the example above, the supply is created by having 50 suppliers produce 50 different supplies. This only works if the supply covers all essential needs. There is no one of the 50 suppliers who can produce the same supplies. Because of this, they must get their supplies from each other. Each supplier is given 50 supplies in exchange for giving ONE product.
Thus, the ratio of buying power is 1:50.
If a person owns a farm, he is dependent on profits from the farm in order for him to buy energy for his home, buy lime for his yard and for other essential supplies that he does not make himself. The farmer is forced to go to the store and shop for necessary products he can't make himself. The farm is now under duress to profit margins because the farm needs other supplies. He must buy them because he doesn't produce all of his needs. How does the farm survive? The farm can grow food and sell them to other people so that it can make enough money to buy energy, limestone and other essentials for his home. But, because of this dependency on profit, the farm is at risk of devaluation of commodities and increased prices, resulting in lower profits. This is how many industries lose profit because they are subject to the rising and falling of prices and values.
The solution is to have the farm join a network of other producers who SHARE products and services in exchange for their essentials. The farm produces collard greens. The farmer needs other crops in order to sustain his household. Instead of going to the market, the farmer joins a producer network and agrees to give his collard greens in exchange for 50 other commodities, including limestone, energy and other crops that he usually buys at store. Now that the farmer does this, all of his needs are met. He receives energy, cotton, paper, lumber, bricks, etc. all in exchange for his one product, collard greens. The farmer doesn't have to go to the store and spend money on these essentials that he receives. He receives MORE in value just by sharing his commodities, than he would have trying to sell them in order to make a living. The farmer does not have to depend on profit in order to make a living and cover all of his needs. All he has to do is share his one product in exchange for 50 products in return. His crops increase in value and have climaxed in buying power because his greens supplies ALL other 50 suppliers of different crops and commodities. In exchange for his greens, he receives ALL other 50 crops in return for GIVING just one crop.
As you can see, the system of GIVING and SHARING can increase commodity value and climaxes buying power because the farmer can receive ALL products in the network for producing ONE product alone. This goes for every other producer. Whether it be energy, limestone, onions, tomatoes, etc. As long as these producers supply ONE product for the entire network, whose number is 50, then the entire network will supply him 50 products in exchange for ONE product. This goes for every single producer in the network.
Addendum: Buying power is simply saying how valuable your industry is in relation to how much you can buy. Out of a total supply, an industry's buying power is measured on how much of the total supply the industry is able to buy. If an industry can only buy some of the total supply, then it's buying power is measured accordingly. But, the more of the total supply that the industry can buy, it's buying power increases. If the industry can completely buy the total supply, then the buying power is said to have 'climaxed'. This climaxing is what we want. And we can only climax in buying power if we are able to buy an entire supply. But, we have to first CREATE a supply.
In the example above, the supply is created by having 50 suppliers produce 50 different supplies. This only works if the supply covers all essential needs. There is no one of the 50 suppliers who can produce the same supplies. Because of this, they must get their supplies from each other. Each supplier is given 50 supplies in exchange for giving ONE product.
Thus, the ratio of buying power is 1:50.