Something from Nothing

Joseph's grandfather made him a beautiful blanket when he was a baby, but now it's frazzled and worn, and Joseph's mother says it is time to throw it out. Joseph doesn't want to part with his special blanket, and he's sure that his grandfather can fix it. Sure enough, Grandfather miraculously alters the blanket into useful items again and again. But when Joseph loses the final item, even Grandfather can't make something from nothing. But maybe Joseph can?