Capitalism & the Illusion of Money – David Korten
Yanis Varoufakis On Ancient Greece And The Nature of Money
Value can not have a quantity it is a perception or notion even a convention.
“What’s the good of Mercator’s North Poles and Equators,
Tropics, Zones, and Meridian Lines?”
So the Bellman would cry: and the crew would reply
“They are merely conventional signs!
(10) A medium of exchange–say, coin of the.realm–has its special
status by a convention among tradesmen to take it without question
in return for goods and services. Some conventional media are better
than others: bulky or perishable ones are bad; ones that would retain
some use if the convention collapsed are good–but the inconvenience
of accepting a bad medium of exchange is less than the inconvenience
of refusing it when others take it, or of taking What one can neither
use nor spend. Again, as in (4), there is the complication of legal
sanctions, Refusal to accept legal tender makes a debt legally unenforceable. But again, such sanctions are superflous if they agree with
convention, are outweighed if they go against it, are not decisive either
way, and therefore do not make our regularity any the less conventional.
I suppose we may safely define a medium of exchange as any good
SAMPLE CONVENTIONS I 49
that is conventionally accepted in some population in return for goods
and services. This definition raises an annoying question: is it right
to say that we have a convention to accept our media of exchange
in return for goods and services? It is false to say that our convention
is that we accept our media of exchange in return for goods and
services. For what follows “that” does not state any convention
because it is true, by definition, of any population. On the other hand,
it is true to say of our media of exchange that our convention is that
we accept them in return for goods and services. My question was
ambiguous. It can be read opaquely or transparently.6 It is like the
question whether Hegel knew that the number of planets is greater
than seven. He did not know that the number of planets is greater
than seven. But he did know, of the number of planets–namely
nine–that it is greater than seven
Pricing of Opportunity Cost?
If Value is not a thing then a quantity of a not thing is still not a thing
“a quantity of value, must ITSELF be an abstraction”
rogerglewis on said:
“That means that, whilst as purists we might prefer to set out our findings in calories, BTUs and joules, we have to talk in dollars, euros and yen if we’re to secure a hearing. It also means that we need models of the economy based firmly on energy principles.”
This conflates Apples and Oranges particularly when one talks of Borrowing Value from the future.
Debt is a claim on future Wealth but not future wealth. If wealth is Surplus energy then Borrowing can only sensibly be expressed as Borrowing Future Energy Streams. Energy Budget have to be expressed qua Energy budgets a subjective value-based currency unit is simply not up to the job.
The Gulf in understanding and Speaking at crossed purposes inherent in maintaining the Old Financial artifices, and artifices are what they are, will maintain the ignorance of the majority of people. This is I think perfectly acceptable to those of an Elitist worldview and Mindset.
Embodied Energy pricing and circular economy concepts along with DIstributive concepts of political economy and not re-distributive taxation and state-based centralised top-down control mechanisms are what is required. Vested interests are not going to listen anyway Tim, Afterall Turkeys do not vote for Christmas.
Finally, Interest charged on a dead medium is unsupportable by definition, this is the driver of the Growth requirement it’s the debt-based Financial system, and debt and taxation as a political control mechanism of the masses is something which again Elitist world views are more than comfortable with and simply do not wish to let go of.
Hang on a minute – debt IS future wealth, if you’re the person to whom it is owed.
If you owned £1m of gilts, and the government then said it was never going to pay up, crashing the price to zero, would you not feel just a bit poorer?
Tim a Claim on wealth does not necessarily represent Skin in the Game. How people feel about wealth or value is purely subjective. For Objective energy-based economics what is important is actually the Pigou Dalton principle, which is related to Status and taxation/re-distribution tolerance.
At its root, “status” is related to mating prospects, these are visceral matters of instinct, the Subjective issues around monetary value are far less problematical than Social re-ordering through perceived discriminatory re-distribution of relative status within civil society.
Energy is a falsifiable measure the Variability and subjectivity of monetary “Values” are pseudoscientific, thats why the conflation is a contradiction of the claimed first principles of energy Economics, That’s just the way it is.
Under a distributive monetary system based on Energy Credits and not Debt, the redistributive aspects of subjective earned monetary income are less acute and the process of a leveling out as posited by Proudhon in his theory and proposal for a State credit bank as argued with Bastiat is well worth reading both are available on my Blog and Conquest of Dough web site.
Status is one of the many issues that I think we need to address as we go further into this. At various times, different metrics have determined status. Levi Strauss and others did interesting work on the status-signalling of foods, for example. At various times, too, ancestral lineage has had more status than wealth.
These various indications of status have applied either in economically-static societies or in those where material prosperity has been growing. We have few (though there are some) examples of status markers in deteriorating economies.
On the original point, though, cancelling debts does mean depriving those to whom the debts were owed. This is why, when debt burdens have become excessive in the past, the usual resort has been to inflation – creditors have been ‘repaid’, albeit in money of lesser or even of minimal worth.
For the greater part of Human History in sedentary societies, the solution has been Jubilee, not Inflation. Inflations are a fairly modern innovation as is, of course, the secular State and Supra-National Government and Corporate monopoly Capital. Since John Law got his innovations adopted by the French court, there has been a considerable memory holing of the Science of Money ( Del-Mar and Zarlenga require mention).
From the perspectives of Monetary History, the timeline goes back a long-Long way and feudalism and outright Slavery also enters the equation even in the relatively modern era. There is certainly a conversation to be had. Of Course, even the Work of Henry George, well known at the Fin De Cicle is all but forgotten after over Half a century of Hayekian and Chicago School Neo-Liberal monetarism and financialization.
Regarding Usury, I consider Benthams in defence of Usury to be the point at which the Liberal lobby for Usury to have bamboozled the better judgment of more Conservative heads, overturning a couple of Millenia of religious and ethical thought. Bentham’s Treatise is well worth reading it is an un-requited invitation to Dialogue with Adam Smith who opposed usury.
Money and Goods Are Different
Thus, clearly, money and goods are not the same thing but are, on the contrary, exactly opposite things. Most confusion in economic thinking arises from failure to recognize this fact. Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt. If goods are wealth; money is not wealth, or negative wealth, or even anti-wealth. They always behave in opposite ways, just as they usually move in opposite directions. If the value of one goes up, the value of the other goes down, and in the same proportion. The value of goods, expressed in money, is called “prices,” while the value of money, expressed in goods, is called “value.”
June 15, 2018
MONOPOLY. FILM ABOUT NOW FROM #WHO TO #THEY
The Control of Oil
Everything you always suspected about the oil industry but weren’t certain was true–and Blair has proven it for you in the best book to be written about the oil industry. A documented chronicle of the conniveries of the world’s oil barons–most of whom always have resided and continue to reside in America.
This book is buried buried buried.
This book is a sensational deconstruction of the myths of scarcity and the creation of artificial scarcity to maintain a cartel that spans energy and Exchange.
” in the long run the antitrust approach offers greater protection to the public
interest than any conceivable form of regulation. In mutual dislike
rather than in mutual understanding there is strength. Moreover, by
making an industry’s behavior depend on the judgment and actions of
many buyers and sellers, the competitive approach minimizes the harm
that can be done by any small group of individuals, thereby making
influence and corruption more cumbersome, expensive, and of most
importance, ineffective. “
Would that we had listened and learned from the book published in 1976. (less)
Carbon Currency End Game.
Keep Going Almost there.
If one observes the long game the dominant Narrative of the past 30 years is Climate Change and CO2 emission being the only thing anyone needs to focus upon. The Carbon footprint narrative is by a long chalk well ahead of the curve even with the relatively short but seemingly endless Pandemic and Vaccine Narratives of the Past two years.
Naming names, Larry Fink of Blackstone and Blackstones Going Direct is considerably more powerful a control lever on what happens next than the efforts of Bill Gates and Dr. Fauci to enrich Big Pharma and themselves, Gates also has a bigger card in the game and that is Digital ID and its relationship to both Near earth Satellite networks and the 5G networks, which coincidentally really were rolling out at the Same Time as the Wuhan Event, also in coincidentally Wuhan.
The Vaccines and Vaccine Injury is very much closely related to the Adjuvants and not necessarily the Pathogen dose delivered in the solution of the Adjuvant. It is the Adjuvant rather than the disease which is of interest to the 5G / ID aspects of what the past two years have really been all about.
The Repo Spike in Newyork on September the 19th was the starting pistol, of course, the dress rehearsal was Event 201, The Objective was almost certainly to gain widespread acceptance of Digital IDs on SmartPhone devices and possibly by stealth through Nanotechnology, within the Adjuvant solutions in the mRNA vaccines( Experimental Gene Therapies?).
the underside of the Western tradition
“Western philosophy, after all, really begins with the quarrel between Heraclitus and Parmenides; a quarrel that Parmenides won. As a result, from almost the very start, the Western tradition marked itself by imagining objects that exist, as it were, outside
of time and transformation. So much so that the obvious reality of change has always been something of a problem.”
https://longhairedmusings.wordpress.com/2017/06/06/jeremy-free-will-corbyn-vs-theresa-the-determinator-may-the-quarrel-between-heraclitus-and-parmenides/Trussv Sunack, Davies v Cameron, Smith v Corbyn
WHY are we here?
https://longhairedmusings.wordpress.com/2017/01/08/why-are-we-here-an-essay-provoked-by-golem-xivs-david-malones-latest-documentary-series/How many choices at the end of the day are actually either or, Science or God, Evolution or Creation/Intelligent design?
Perhaps there is a useful distinction to be made between Science and Technology and between God and mental well- being. If it works don´t fix it and if it feels good or does some apparent good then keep doing it. In this area Rupert Sheldrakes´ notions of habits in nature along with C S Pierces´ Agapism, take me down a path I am always happy to re-visit with either doubt or scepticism depending whether I am blowing in a Materialistic or Idealistic breeze that particular day. Perhaps the best thing to do with mind if we accept such a thing exists is to keep it (mind)open to the possibility for changing once we think we have made it up, or to accept the possibility of contradictions and being in two or multiple minds at once. What are our choices and how do we prioritise or rank them. All of this with the knowledge that we will never have all of the information we would like to overcome our doubt or scepticism. ( Back to Ceteris Paribus? )
There are then notions of received, accepted and popular wisdom, the things we take for granted, the ´Settled Science
´´or ´´Consensus ´´Viewpoint. Beware the thought Police neither the God Squad or the Science Mob have a monopoly on policing thought crime against their Dogmas and they all have plenty of Dogma to go around. Michel Foucault got at this notion of the In Group bias of what Polyani called the Science republic. It applies equally well to any formalised structure of allowed realities I find; secular, scientific, political or religious.
”I would define the episteme retrospectively as the strategic apparatus which permits of separating out from among all the statements which are possible those that will be acceptable within, I won’t say a scientific theory, but a field of scientificity, and which it is possible to say are true or false. The episteme is the ‘apparatus’ which makes possible the separation, not of the true from the false, but of what may from what may not be characterised as scientific.” Michel Foucault.
´´Let those that deny the educational significance of the Bible, that declare it has outlived its usefulness, invent such a book, such stories, such explanations of the phenomena of nature, either from general history or from imagination, which should have such a recap- ion as the Bible ones have, and then we will agree that the Bible is superannuated .
Pedagogy serves as a verification of many, many vital phenomena, of social and abstract questions.Materialism will have the right to proclaim itself as victorious only when the bible of materialism shall have been written, and childhood shall have been educated according to this bible. Owen’s experiment cannot be regarded as a proof of such a possibility, any more than the growth of a lemon tree in a Moscow greenhouse is proof that it could grow without the open sky and the sun.I repeat it, my conviction, drawn perhaps from a one- sided experiment, is that the development of a child and a man is as unthinkable without the Bible as it would have been in Greek society without
Homer. The Bible is the only book for the elementary education of the young. The Bible, both in its form and in its con- tent, ought to serve as the model for all children’s manuals and reading books. A simple popular translation of the Bible would be the most popular of all books. The appearance of such a translation in our day would make an epoch in the history of the Russian people ´´ (YASNAYA POLYANA SCHOOL 253, Tolstoy, https://en.wikisource.org/wiki/Yasnaya_Polyana_School)
There is one object to the Game – To get Rent!
Then become a Master at it, find The Key and get to NextLevel, where life is more valuable than wealth, finally.
- GameWorld – a dystopian setting in which The Game is played
- BoilerRoom – a trading floor where foolish players play and then complain when their gamble loses
- FakeWorld – a utopian world that makes no sense in The Game
- GamePlay – how you choose to play the game, for better or worse
- The Field – where all trade and exchange takes place, markets
- Rent – your score in the game, aka wealth or money in FakeWorld
- RentSeeking – the skilful art of getting a higher score
- Tokens – what players buy things with, a useful proxy for Rent
Value in modern monetary Accounting.
“well that stuff’s worth something only
on the point passes from me to you”
Understanding Affordability issues for the Property Market
Welsh : arian
English : cash; money; silver; wherewithal
YOU SAY #ARYANS I SAY #ARIANS
June 6, 2019
IN QUEST OF NATIONAL IDEA: “ENERGY RUBLE” BOUND TO BE THE HARDEST CURRENCY. VICTOR EFIMOV NEWSPAPER “CHAS PIK”, MAY 6, 2004
August 29, 2017
Why Money is such a bad metric for Energy investment decisions? EROI, Towards an Energy-Based Economics. More Notes from the Digital Coalface.
How so? The worlds money supply has doubled in the 9 years since the 2008 financial crisis, Incomes have not doubled and neither have most peoples savings. The transfer function of wealth through Interest Charges and also priority and first mover advantage with those with first use of newly created debt based bank credit make Money as biased a unit as well as a highly variable unit of measurement you could hope to invent, of course you do not need to invent it because it already exists.
“”Who hasn’t experienced the following? Just the other day
it happened to me! Just like any other weekend, I went
to the supermarket to replenish my empty pantry and as
always, I made the mandatory stop at the fresh produce
section, where I placed some tomatoes in one of those
little plastic bags that you tear from a dispenser. As
always, I went to one of those electronic scales full of
those colourful figures that represent the different
produce: I put the bag on the scale and pushed the key
with the little tomato on it. And oh my God, the
following message appeared on the screen! “Error: This
scale has run out of grams. Please excuse the
inconvenience”. What a pain and just at the worst
moment! But then again, we all know that given the
times, grams are scarce…””
Introduction to Technocracy – 1933
discussions — of ‘value,’ of fluctuating prices, of the gold standard, of changing interest rates, of items of pecuniary wealth which are at the same time items of debt — are
merely discussions looking toward a readjustment of the factors which prevent them
The problem of analysing political choices against the metric of a Monetary measure is the Money as a Thing is most certainly a Variable and as any good technologist, scientist or metrologist will tell you a unit of measurement has to be clearly defined and fixed.
The dollar. He notes that it is a variable. Why anyone should attempt, on this earth, to use a
variable as a measuring rod is so utterly absurd that he dismisses any serious
consideration of its use in his study of what should be done.
He also considers ‘price’ and ‘value’ and the fine- spun theories of philosophers and
economists who have attempted to surround these terms with the semblance of meaning.
These terms, like the monetary unit, may have had meaning to men in the past but they
mean nothing whatsoever to the modern technologist. The standard of measurement is
not relevant to the things measured; and the measuring rod and the things, measured as if
they were stable, are all variables.
This is from 2013 and storage solutions to utilise peak generation of both wind and solar and to provide supply when generation is not possible to have improved since 2013 and will continue to improve. This is another interesting thing about the Time value of money basis of comparison it leads to short term solutions being preferred over long term ones explained by Berard Lietaer here.
I Made these interactive Quizzes based upon the Positive Money Quiz By David Faraday
and the money creation Survey of MP´s
For people who are surprised with the claims I make above please take the quiz see how much you know about money? many people are surprised about how little they really know.
Fig. 8. Imbalance in the intermediate trade and ﬁnal
trade (The size of the sphere represents the corre-
sponding economy’s gross trade volume of embodied
Global primary energy use associated with production, consumption and international trade (PDF Download Available). Available from: https://www.researchgate.net/publication/320445428_Global_primary_energy_use_associated_with_production_consumption_and_international_trade [accessed Mar 10 2018].
Click the Link Below and please read this book, written by a Physicist, Engineer and sadly now departed all round good egg Prof. Sir David MacKay. https://en.wikipedia.org/wiki/David_J._C._MacKay
|Sustainable Energy – without the hot air|
by David MacKay
February 25, 2016