The Alchemy of False Economics

By Marc Gauvin (c) 6/3/2014

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The only logical thing money represents is a unit of relative  "value".  Also and strictly speaking,  systems do not tend towards or away from stability.   Systems are or are not stable,  however unstable physical systems can be attenuated temporarily this is referred to in imprecise colloquial language as "stabilising the system".  This requires the juxtaposition of forces, never absolutely but sometimes practically permanently, the perfect masonry of the Escorial is an example of almost perfect and therefore almost permanent physical system stability.   However, such stabilisation only makes sense in physical systems, in purely logical systems it makes no sense whatsoever,  because there are no independent axiomatic phenomenon or "natural" behaviour to "adjust" to, but rather all is a question of logical decision.   This is where economics is exposed because to represent purely logical systems in terms of pseudo or allegoric "physical" phenomenon is logically absurd.

The more we analyse the current money paradigm the more it becomes apparent that it has been poorly conceived and is based on gratuitous allegory to create an illusion of obeying greater than human laws yet to be understood.  But in reality,  it is a false paradigm that is intrinsically logically inconsistent and thus fabricates the requirement for arbitration that can only be subjective because the system is inherently illogical.  Of course such arbitration is presented to its unwitting victims as the skilful and higher knowledge alchemy, however it is as dependable as any other inconclusive belief system where decisions are imposed by equally inconclusive authority,  constituting a massive chain of appeal to groundless authority that ends nowhere and where all below obey all above, the quintessential pyramid scheme.

Some of the fundamental logical inconsistencies that constitute the many common misconceptions that make-up our current and very troubled economic/financial paradigm:

1)  The confusion of the properties of the measured with the measure.  Just as it makes no sense to owe 5 meters when you borrowed 5 meters of wood, i.e. you really owe wood not meters,  so too it makes no sense to say that you owe dollars when in effect you owe goods and services only the abstract value of which is measured in dollars.

2)  Money is a measure of relative value of goods and services not a measure of goods and services.   We don't need money to measure resources we need money to measure the value or relative demand/need/desire for different goods and services over time.   

3)  Stable money does not mean constant prices of commodities,  it means that measurements of value (price instances) of consummated transactions are constant over time.

4)  As a measure,  money does not circulate each transaction creates its own units that resolve against existing balances.  Also money cannot arise a priori to transaction but rather it is a posteriori result of transactions.

5)   Money as a measure,  cannot "store" value independently of the goods and services the value of which it represents. Therefore it cannot be a "medium" of exchange for goods of goods and services.  Similarly, it cannot be "supplied" as a resource nor stored in any compartment.  All these are gratuitous allegories predicated on the behaviour of certain mobile supports used to record measures (money) and attributing to these the "store" and "medium" pseudo physical properties. 

6)  Money as a measure is neither positive nor negative although debt can be measured as a negative measure. 

7)   Money cannot be both a measure of value and a value subject to its own measure. 

All these observations are imposed by logic not caprice and their conflation is what creates the mirage of a pseudo rational paradigm that begs arbitration none of which can be objectively determined as just,  for the simple reason that an argument that assumes a false premise can never be true.   The most critical misconceptions are those that falsely allude to physical properties, that logical objects simply cannot possess.  Only with these allusions can a record of value  be misrepresented as a resource,  leading to the cascade of misconceptions that constitute "The Money PSYOP".

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