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PS you also failed to say where the $100 and other currency came from? For example if the firms took out $100 in loans, then their profit cancels that and they can now pay their loans back. Or if not the firms, then someone in your system took out that $100 and owes that credit back out of the system and back out of existence. I'm really not sure that you're seeing all the balls that are in the air here...?
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I see a couple of unexplained omissions... In para 4, you state that the firms have $100 more 'profit' than households, but you have omitted that the household's therefore hold the REAL surplus of the $100 of food that they bought. Yes the firms are up $100 in currency but they are down $100 in food. The households have the food and the firms don't. The $100 isn't a 'thing' that the firms hold instead, rather it's a future claim on things which don't exist yet. (consider that if the firms bought back some of the food with the Dollars, now the households hold that future claim on things which don't exist yet). In para 8, the firms suddenly blow 6 years of profits on buying food and destroying it. But where did that food come from??? If this is a closed system then that MUST be the food the firms themselves produced. Which means the firms have simply bought back their own food from their customers and now the customers have their Dollars back. So we're just back in the same position as 6 years ago – the point before the firms paid their workers to produce the food. On the other hand, if it's not a closed system all of a sudden and the food came from outside this system, then someone outside this system now holds the currency that the firms bought all that food with. The firms destroyed the food, but the currency still sits in someone's account or belongs to someone. The currency is just an accounting loop which manages the linear throughput of real production, and you have taken a tiny time slice in that ongoing infinite process, left some things out but then claim to have identified something? If you put those omitted missing pieces back into your examples, then I'm not seeing any huge proof of anything. What have I missed..?
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