Skip to content

Peter Joseph: Culture in Decline – Episode #2 Economics 101

…….Modest preemptive actions can obviate the need of more drastic actions at a later date……

…….Think that you have been taught things like confidence intervals in the elementary statical course that would let you do this, but if you really studied carefully you would know that that they don’t let you do this. A really principled frequentist can’t produce a probability distribution……

….the conclusion that we want to point out, when we think about evaluation is the fact that means are scarce, i alluded to this already, as finite being we can’t will our ends to be attained (Carl Sagen)……

…….statistical description of the government’s net of interest surplus…….

…….deflation, they think that yields could drop to say, less than 1%, on the the years, and less than 2% on the thirty years…..

…….that would effectively be a takeover of monitory policy by the congress…..

Peter Joseph

…..Oh Hello, daunting right, might even make you feel stupid. Perhaps it is no wonder then, while even with the ongoing economic failures across the world in equality, increasing poverty, debt collapse, bank failures, unemployment rising, very few today seem to be able to understand, let alone discuss modern economics, outside of course the delegation game, where tho only attempted solution people know is the mere shifting around of the deck chairs on the Titanic, assuming some new politician or central bank policy or corporate legislation is going to save the day.

Well some years back, after coming to the conclusion that our politicians, legislators, and established authorities just might be provably incompetent when it comes to the truly intelligent management of our society. I started to look for questions and answers on my own. Asking those questions about things that many today seem to take for granted, ignore or even worse, assume that they have no capacity or business investigation it at all. Since our crenelated authorities in control must be smarter and more informed. It is a sad state staple of modern culture, you know: “relax, turn on the TV keep going into debt, and pump out a bunch of kids, while you are at it, but most importantly keep showing up at those jobs, which you have likely already fooled yourself yourself into believing that serve some sort of legitimate social role.” Remember, the 1% of the world that owns 40% of the planet’s wealth didn’t get that way with you understanding how the world really works.

Nevertheless, with such cynicism aside, I decided that I needed to start again.

If you will

We will ask some fundament questions about stuff most simply have just written off and forgotten. If you were to take a poll today, of our species, asking what truly are the most fundamental questions that pertain to human survival and prosperity, such as (for example) what really supports human life, how food grows, what energy is, what creates and reinforces good public health, what defines a useful or detrimental belief system? You can rest assured, that the vast majority would have more concrete answers about baseball statistics, fashion trends, sitcom plots, religious scriptures. Not to demean the cultural pleasures of creativity and expression that creates enjoyment in this life, but we have a distortion of priority that has proven incredibly detrimental to the future of our sustainability on this planet, where the majority are facing clear mounting problems, not only doesn’t understand what the root of such problems really are, they don’t even know the question to ask. And today there is no greater destructive ignorance at hand than the vastly delusional concept, know as Modern Economics. And it is in this fundamental context that I found the most interest.

So what is an economy? Where does it’s foundational premise come from? What are we relating to exactly? How is society finding a benchmark for itself? Is there a benchmark? What are we doing and why does the discussion of this subject seem to be so elitist in its vocabulary orientation? Is it really that complicated?
Well I became so tired of being ignorant of the subject by self-proclaimed exerts that I challenged, that I decided to take it upon myself to read the entire macro economics curriculum of Harvard University from the undergraduate to the Phd level, along with all the staples of influence, F.A Hayek, John Maynard Keynes, Ludwick VonMisses, and I”ll tell you what, I am really glad I did, because I had some very poor judgements that needed some correction. Not so much about my views about economics, but that life is short, and I wasted an enormous unforgivable amount of time racing this outdated overly intellectual gibberish.

As the following episode will detail, modern economics is not true economics at all. It is a mere ideological philosophy built upon a series of presuppositions that have been given the illusion of permanence. There is absolutely no relation to the scientific integrity of our knowledge of the environment built into this model. The monitory model of religious belief is at the core of the vast majority of ecological and social imbalance in the world today. Sadly it is in the face of normality, so many look strait past it. We might begin to see that this principal notion in practice is truly a problem i society and to me it is at the heart of a Culture in Decline.

Earth: curious little ball of rock, gas and water, isn’t it? Hard to believe this title bubble of chemicals floating in space, basically powered by the sun could give rise to the is colourful yet, rather troubling super monkey species.A species often appearing pretty serious in it’s interest to destroy it’s habitat. Though I should say pretty serious in it’s interest to destroy itself.

Perhaps our immaturity is just a phase, a tragically comedic right of passage, or what the physics behind it may be. Nevertheless, the history and characteristics of this little orb can be scientifically described with a good dal of accuracy. A couple of billon years old now a compost of gas and dust that resulted mostly from a large chemical reaction long ago. More likely an exploding star or super nova, and over millions of years this dust clustered into reactively big chances of rock, a pronounced gravitational field emerged, our chemical elements were slowly reorganised and conditions emerged to enable water and an atmosphere, which is what bread the first single celled organism. So went the slow process of mutation into the very amusing circumstance we have today – US.

Of course you are fee to believe whatever creation story you like, a rib from Adam, aliens cross pollination, primordial ooze, at the end of the day the utility of such knowledge is quite small. Our little monk brains might never have complete picture of something so complex. Yet, what we do know is that the universe is governed by laws. Not moral or religious laws, the laws that were around long before we ever evolved a brain to understand them. Laws that very clearly point out, that we either adapt to them and respect them, or we suffer the consequences. Such is the true face of God, the laws of nature.

In many ways the history of our universe is the history of our understanding of it. And we have come a long way as a species with respect too how we organise our lives around these rules. And likely the best example of this adaptation or in many ways the lack thereof, is how we think about economy, the foundation of our social survival. Many thousands of years ago our super monkey brethren began to discover how to engage nature. We went to being completely at the mercy of the habitat, gathering our food with some hunting, living and migrating around the natural seasonal regeneration, to an agricultural revolution learning how to cultivate food, create ever sophisticated tools to ease labour, and in effect, learn how to mimic nature itself. In fact this new awareness and ever-increasing understanding to harness the processes of nature to our advantage is what has led to the vast technological innovation we see today. If nature is doing something odds are the we can understand how through these dynamic scientific principles. From artificial intelligence today, which works to emulate actual neurological processes to molecular engineering which uses the atomic logic to manually recreate material objects to those now ever important blood shifting erectile dysfunction drugs, which, if you have been watching on TV recently, must be the most epidemic health crisis in the western world today.

Since this revolution, human society became less nomadic, slowly merging into cities and systems of labour specialisation began to rise, along with means for exchange. Barter is a common example: you need some egs, maybe give some firewood that you chopped up in exchange for the dairy farmers work. Yet such practices became cumbersome and impractical after a while, so the idea of using some rare fancy rocks, like good and silver as a medium of exchange eased these transactions through a system of pricing goods in terms of their relative value. This gave birth to what we know today as the adjustable price system, which trough the public’s aggregate patterns of average of exchange and production, creates a crude but semi-workable logic where the prices of goods reflect the balance of supply and demand, otherwise known as the market, or market value.

Let me explain:

When you stumble into the mall, and buy the 85th generation iPoop 4G mp3 colostomy bag camera phone waffle maker, you are creating economic signal information that is used to calculate demand, local and regional preferences, and other resulting data in concert with the millions of other impulsive consumers, who, having also bought the 84th generation two months earlier at twice the price, creates an aggregate flow of input data and feedback that allows for a ostensibly rational regulation of resource allocation, production distribution, labour requirements and of course price consensus in the market based on perceived supply and demand. Not to mention the general data of how the marketing team can screw you over even more later on.

Ts mechanism is partly what the ultimate high priest of our current economic religion, Adam Smith, was eluding to with his “invisible hand” notion of causality in the free market. ANd in many ways he was onto something. It does work in a limited context and crude way, in fact in the 1920s an economist named Ludwig Von Mesis put forward the still high standing claim, that without the pricing mechanism, economic calculation and rational resource allocation and general organisation would be impossible. He called it the Economic Calculation Problem.

However things are much different today than they were 200 years ago when Adam Smith published his “Wealth of Nations”, or when Ludwig Von Mesis made his criticism of central planning. The fact is, the argument has changed. The economic debate now is what is actually sustainable and progressive for the human species, not the mere mechanics of the movements of money. While it is true that the price system might allow for the basic calculation of supply and demand data to help rationally allocate labour preference, distribution and the like, it ignores the real operational factors that relate to true efficiency earthly management.

Hence the true definition of economy, which is optimised efficiency on all levels. For instance, there is no consideration for optimum resource allocation based on the materials most efficient purpose. Rational allocation of resources is not rational if the most conducive use of those natural materials scientifically is not directly considered and brought into comparison. There is o consideration for the organisational efficiency of technical production itself, and all you have to do is analyse the waste machine of globalisation, to see this insanity at work. There is also no consideration for regeneration needs or recycling protocols. This is a true requirement for responsible, rational resource use on a finite planet. Nor is there any true production or distribution efficiency in any optimised scientific sense, as such a means is, as will be so descried mores in a moment, also counter to the inherent logic to the market system itself. These, coupled with serious other parameters needed for a truly efficient economy, are simply ignored, or even worse, assumed to be inherent to the price mechanism’s function, when they are clearly are not.

Actually the price mechanisms concept of efficiency translates the subjective mass interaction of consumers into the narrow assessments original demand, product and distribution. It has nothing to do with how or why the methods of industry are what they are. Such factors are left up tho the whim of the producers operating for profit alone, completely decoupling from the natural regulation of scientific principles of sustainability.

You see at the core of the economic calculation problem is really the argument that we are completely irrational, that we can’t possibly be organised in a way that is structurally efficient. We are too insane essentially. Therefore we have to have a general economic anarchy to organise our society to organise our society and know our way around it.

Again, today is very different that it was prior, and a quick review of modern computer and systems engineering will tell you that not only can the algorithmic and intelligence of our sensory and measurement technology today, coupled with synergistic computer calculation orient all the previously existing factors taken into account by the pric mechanism as we know it, the truly relevant yet missing factors for optimum efficiency and sustainability, could be brought into the equation. This would be the making of a true economic calculation for industry, not the crude truncated data put forward by price alone.

So coming back to our household, the earth, what is this thing really? It is a system of symbiotic laws. At the core of all principles of sustainability is recognition of the largest order system we can find for reference.

Is the free market a good basis for sustainability for the human species?
What about infinite wants and human needs?
How do we calculate such complexity?

However logic aside, opinions about our economic system range dramatically.
Have you noticed that the is more for sale int he world than ever before. I’m not referring to goods in your local store. Today the market rational is that everything is for sale and nothing is sacred. Need some cash? Why don’t you rent out your forehead for advertising. Or better yet, why don’t you buy the life insurance policy of your elderly neighbour, and when she dies, you can get a nice payout. Rather than buy a blow up cool so you can use the car pool lane, just buy it lil you can in Minneapolis. Or to slaughter the endangered black rhino in sudan, bit is will cost you about $150,000. Pay your kids to get good grades if they are not doing so well. Join the private military legion (slowly replacing the American military). Dates to the highest bidder for some women. There is nothing in the political or legal spectrum that is not clearly for sale, Offences can be cleared wight monitory fines. Pay $80 a night for a née clean jail cell in the best part of the prison. You name it, you can buy it, 143 years of the passage of the14th amendment of the US constitution, and 60 years after article 4 of the UN’s universal declaration for human rights banned slavery, and the slave trade world wide, there are today more slaves than at any time in human history, trafficking about 30 million for various profit schemes.

But what about ethics you might ask?

Ethics and morality continue to continually to be redefined by the economic ethos of the day. When a Wall St trader makes millions of dollars betting against the currency, and hence prosperity of another country. I can assure you, he is sleeping like a baby at night, and why shouldn’t he. He is simply doing what is rewarded and reinforced by the economic system at large. You see the markets inherent psychology, has nothing to do with anything except it’s own perpetuation. When you hear politicians tell you that thy are invading some poor country to bring freedom and democracy, you need to understand what those words really imply. The freedom they bring is market freedom. and the democracy they brings the democracy of purchasing power. The freedom of using money for influence. The freedom to, in fact, restrict the freedom of others.

However lets get back to this technical stuff. Putting aside the distortion of market rational that now puts everything up for sale, putting aside the false premise that the price mechanism actually properly calculates the true attributes of a sustainable and efficient economic practice, and putting aside the basic value system disorder radiating out of the overall basis of unfolding, lets now take a little close.

Welcome to Modern Economics 101.

Question 1
If you lived o a planet with finite resources, expanding population, would you create an economy based on the need for growth and consumption to keep everything going?
Correct Answer
No
The fact that our economy literally requires constant consumption and growth to keep GDP afloat, and people employed is the hallmark of not an economy but an anti economy.

Question 2
If you were a producer, would you make goods to be as durable and adaptable as possible, given the finite nature of resources, and an interest to maximise labour productivity?
Correct Answer
Yes
Today it is the opposite, and not only are all goods are inferior the moment they are made due to the cost efficiency needs for corporation to remain competitive, most companies also engage in what is called planned obsolescence, which deliberately reduces good quality to encourage repeat purchases for more profit.

Question 3
If you were a socio-economic planner, would you encourage everyone to buy one of everything, hoarding that personal property protectively, even though many goods are used infrequently?
Correct Answer
No
That would be inefficient. The reality that goods are only as relevant as their use would be realised. And since a system of shared access, not blind restrictive universal ownership, would be the most rational manner of unfolding.

Question 4
What about incentive? Would you push a cut throat competitive environment where everybody is out for themselves, or their little group?
Correct Answer
No
Knowing what we know today about the competitive mentality and how it creates abuse along with the reality tat col laboration and the sharing of information is truly the driver of progress on the social level, competition would be seen as the most limiting of arrangements.as a philosophical practice.
Question 5
What would be the basis for reward today? Would you require every human to submit to each other for labour as to achieve the means for survival?
No
That would be crude and counter productive, given the state of technology. Modern technical capacity to increase productivity beyond anything know in human history. Not to mention secure more safety and efficiency in general. To push human labour for income in the face of this tool for vast improvement is just absurd.

Final Thoughts

If you were to take a step back and reflect upon how our human family is behaving across the world today. From Western materialism to Islamic extremism, from Nuclear war to Necrophilia, we are faced with the dark yet extremely entertaining reality, the very real fact that we are monkeys in the wild, barely out of the jungle on this planet (In the words of the late great George Calin). Inching out of the dark ages, in fact, from a period of deep fear and confusion with respect to who we are, what we are doing, how we relate to each other, not to mention how we relate to the habitat that spawned us. On one side of the spectrum we have a vast special of human conceit, stubborn ignorance, so much so that if you are like me, sometimes you wonder why we should try at all. That maybe that this species desires everything it gets, and its fate in an evolutionary cul-de-sac, a failed genetic mutation might be an ideal hope for this universe. Cynicism aside however, it is easy to see that there is a growing change in the minority which will slowly become the majority if we let it. An awakening is happening. An awakening where people are stopped and imposing their traditional ideals, and various ideological baggage on the world, and instead are starting to listen. Listening to what the tools of our ingenuity has afforded us. Listening to the message of nature itself. If there is any context which needs a serious intervention with respect to the unnatural laws that govern us, if there is any context where we need to simply pay attention, prepared to drop all of our prior assumptions and change accordingly, it is in the economic context.

Economics is not just some arbitrary abstraction for processing and distributing resources, it is an underlying value mould, that programs us into modes of behaviour that extend into all areas of our psychology. It is the active global religion, wether people like it or not. and for those of us who wish to see reason triumph over dogma, we have a long, long road ahead. Advocates of the free market model all tell you that there is no other system possible to calculate society. That the competitive basis is the only way to incentivise our primative culture. They will tell you that reduced economic interference of government is the key to preserving the true integrity of the market economy, and also preserve our so called liberty, which they say would be quickly corrupted, as tyranny and corruption must occur if any type of collaborative designed economic practice was applied.

They talk of the true free market, a utopian ideal that claims the invisible hand, if allowed to run without interference would alleviate the poverty, deprivation, abuse, corruption, conflict and inefficiency so common in the world today. Well as with all religions, delusion is common, because today the market is more free than ever with the state being n oohing more than a parent corporation working to assist its commercial subsidiaries which support it. Everything is for sale, and no one is accountable. All natural laws and physical realities, that would comprise the basis for true technical earthly efficiency and awareness and reasoning that if allowed could literally transform the world into a place of vast abundance and prosperity never before seen, have been buried and dismissed, only to be overshadowed by a certain kind of efficiency, market efficiency, an efficiency that tracks money and money alone, an efficiency that is literally decoupled from everything that supports and secures life itself, an efficiency that is circular in its reasoning, as it has no recognition of the physical laws of nature. The laws of nature which are in fact the only real true government and regulatory system that has or will ever exist. But then again, who is to say it matters? Maybe we should all take it in it’s stride. Maybe this reality show of human kind, this satirical tragic parody of itself to be sure, doing all it knows, maybe this is the way it is and our brains and our genes are messed up, and we are just waiting for the final laugh track when space ship earth slams into that psychological brick wall.

I guess time will tell. and until then sit back grab some popcorn and keep watching the greatest reality show of all time. And till next time, I’m Peter Joseph, an agent and victim of a culture in decline.

Advertisements
No comments yet

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google+ photo

You are commenting using your Google+ account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

%d bloggers like this: