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Money Multiplier Effect vs Trickle Down Economics

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I have always known my actions have a direct effect on the world around me.

I take a hammer and a nail and place the nail on the wall, apply momentum to the hammer and the nail invariably pierces the wall.

These interactions have always been obvious to me.

About seven years ago, I began to pick up on evidence that my actions were also causing indirect influences in the world around me.

At first I dismissed it as narcissism.

We as humans have a tendency to believe the world revolves around us anyways.

But what if. This belief is not entirely inaccurate?

At first the evidence I picked up on was funny, and I had actually began noticing it as much as 30 years ago when I bought a Jeep CJ7 back in high school.

I made this purchase, and while I greatly enjoyed the 4x4ing in it, it broke down religiously every three months. I became convinced that Jeeps weren’t meant for on road driving, and I began seeing Jeep after jeep after Jeep broken down off to the side of the road which completely validated my beliefs.

Years later, this same phenomena happened with a Corvette I purchased. In 1996, I bought a Triple Burgundy 20th anniversary convertible corvette. While yes, the car is pretty, Arizona and the Arizona heat is NOT the place to own a Corvette, which like my jeep but for different reasons – broke down every three months with VERY costly bills.

Again, I came to the belief that the Corvette was a hunk of junk and not meant for the warmer climates. This time I did something I hadn’t done before though – I paid attention to all cars broken down and actually witnessed a dramatically higher number of Corvettes broken down than any other cars. But like the Jeep I owned before, I started to see Corvette after Corvette after Corvette broken down on the side of the road.

I believed the Corvette was a hunk of junk. I found evidence that the Corvette I owned was not the only Corvette breaking down. So my belief asserted itself.

I had never once – when I was younger mind you – stopped to ask. Is my belief actually creating what I am observing?

So about seven years ago, I moved apartments to an area of Scottsdale which was close to the freeway and had multiple routes. I had begun developing a belief that no matter where I move, construction would begin, no matter where I moved to, no matter how long a place I had arrived in had been established, construction would begin.

It was a funny observation I had made. And while construction would seemingly not be occurring anywhere else or in very isolated areas.

Annoyingly, it seemed to follow me.

So when I moved to the apartments on Tatum and Bell Rd, as predicted, within months road construction began on Bell Rd.

Renovations and repainting occurred at the apartment not long after that.

And not long after taking a trip to Beijing, the Karate Kid was released, in Beijing, and not long after going to Cartagena, Columbia, the very museum I toured was featured in Drake’s Uncharted game on the Playstation 3.

There was much more evidence than this that my actions were effecting the real world around me.

But I was also finding evidence that my thoughts were effecting it as well.

I guess you could say this is what led me to want to get over my addiction to Cocaine.

I had realized I was sedating myself to learning something about myself I was subconsciously overwhelmed with.

What If my mind and actions directly and indirectly affected reality as I knew it?

What if, like a driver is to a car, I was merely getting to understand the controls of this vehicle known as the human body I was residing in, and there were no real limitations to what was possible?

I rejected that thought at first.

But as I pursued my MBA from Thunderbird, we came across a few economic topics called the ‘Money Multiplier Effect’ which related to “Trickle Down Economics”.

The concept of trickle-down economics is simple. For every dollar I spend, the person I give it to will save a portion of it and spend a portion of it.

I myself at the time was living paycheck to paycheck, so I was spending 100% of my income. I couldn’t reliably or reasonably expect others to do the same. But most economies are predicated on the belief that there’s an average expenditure of 90% of every dollar of income. Which implies that 10% of every dollar spent will be saved.

Now the money multiplier effect takes the same concept discussed in trickle-down economics, only it spins it around on its head.

The concept is pretty much the same – that for every dollar given (created) for an economy, that dollar will have a multiplying effect in the economy based on the savings rate. The Money Multiplier Effect, or MME as it was known – says that for a 10% savings rate, that one dollar becomes 1 * (1*0.9) *(1*0.9*0.9)* (1*0.9*0.9*0.9) – and so on, which …

Wait a second.

I did the logic on this.

When any population does not save at least 50% of their income. They get an ever increasing amount to the point of infinity.

Ok. I know…. What’s trickle down economics have to do with thoughts and actions altering reality.

Pretty simple, really.

Many think of money as potential energy.

A dollar is a placeholder which says ‘this is worth ‘x’ amount of potential energy’.

And our economy is based on exchange and valuation of items based on it’s potential energy equivalence.

So when I purchase that hand made couch with $500 USD, I am purchasing the labor in hours that went into the making of that couch, the parts and material, and the craftsmanship and skill of the designer/laborer I chose to do business with.

So when YOU purchase that programmer or developer’s handiwork. YOU are purchasing the labor in hours that went into the development, in addition to the skills, education and training that got them to the point of being able to provide you the services to begin with. We all pay a premium for educated services. Whether that education is received in a formal education or institution or it’s received in the school of hard knocks and self instruction.

But this potential energy isn’t limited to just the physical world.

And we – as humans – cannot help but expend energy when we walk, talk, smile, breathe, fart, and you name it.

And I was learning that this energy and the way I presented myself – if properly managed – can move mountains.

Or SO much more.

I’ll get to that in a moment….

But I was beginning to see that the world around me.

Was being influenced through butterfly effects of the choices and decisions and beliefs i held.

My physical presence in this world was shaping energy. Like a boat going across a lake – I was creating a wake in the energy which was actually shaping the material world around me.

And I was just starting to see the implications.

Now if I could only come to predict the flow of energy of my actions and thoughts to matter better….

Then the very real and profound physical interconnections where I was creating a wake in this ‘reality’ when my beliefs and actions were creating in the world around me.

I could then leverage this to… Shape reality to be anything.

I imagined. Or dreamed.

I’d begun to learn.

That yes.

I’d just created a world where for a brief moment there were more Corvettes broken down than there were other cars.

And over time.

As I overcame my own fears or persecution.

I could move an entire planet.

So one night.

In 2011.

While experimenting with Bath Salts in Spencer’s back yard.

I danced to Avicii’s podcast while he and Gina had left town for a long weekend.

I can be a goofball and yes, dance in the dark at times.

Something told me to lift my hands up to the starry sky….

So I did.

My inner voice told me to then touch the sky.

I felt energy extend from my hands and arms that I couldn’t see. I could feel like I had grabbed on to the sky itself.

And then the inner voice told me to rotate the planet.

And I did.

The entire sky turned nearly 60 degrees that evening before I became…. frightened….

And then another voice came to me and said:

“Nothing should have this kind of power”

I never responded to that voice or fear.

But here’s my response:

“I’m not asking for what’s already mine to take.”

I was beginning to learn that when I believe more than i didn’t.

That I am the single most powerful being in existence and can do and be anything I please.

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