Saturday, June 16, 2012

Austerity

Thanks to "James" who made this comment in response to this excellent post at Naked Capitalism

Economics has always been a political theosophy masquerading as a science. An intellectual justification for what are in the end, patently transparent underlying motives. NO surprise that austerity and fundamentalist Christianity go hand in hand either. Fabulous wealth for the new capitalist winner priesthood, extreme penance and austerity for the common folk who are still finding their way back to grace.

Money Rules the World

There will be no solution to our economic problems (economics being what money does) until we define what money is.  Money is a thing.  Economics is what that thing does.  An economist is a social science charlatan practitioner of black magic that can conjure up economics to mean whatever they choose it to mean.  Get people to focus on what a thing does and they will never be able to comprehend what the essential thing is that does what they are focusing on.  It will never change because most people will always focus on what a thing does.  If what a thing does is destructive, wrong, counterproductive, attempting to change what it does when the damage is mild might work. 

When the damage resulting from what a thing does is a directly and fundamentally linked at its lowest level of decomposition by the design of what a thing is, intended or otherwise, the only way to resolve the damage is to change what a thing is in order to change what it does.  Control the design of the thing and you dictate what it does.

Money is a thing created by bankers.  It is a monetary unit with no defining attribute that distinguishes it from any other monetary unit object in its class except in the case of paper dollar bills that are uniquely serialized and denominated (3 per cent of out money supply) and that uniqueness is solely determined by numbers printed on a piece of paper.  Pathetic in this information age where every piece of information is becoming digitized.  What is more important than money? 

We only uniquely digitize and define by payment and spending transaction relationships what money does not what money is.  In order to break the back of the banks and their control of our money system we must take away their authority to create money that is not uniquely serialized on a monetary unit basis.  Until that is done they will always have essential control what money does in the debt money system.

Every single dollar in circulation must be created in an information system that where it is a uniquely serially identified monetary unit of exchange with a value of one.  That unique entity, a digital one dollar bill must always have an associated owner, a location of ownership, location of authority to use in transactions, date of ownership and a traceable transaction history.  This system provides exact information about how much money there is, who owns it and where it is at in real time as well as where it has ever been and who owned it in the past for a far back in time as we care to maintain that information.

It is as simple as if this was this was our money system today:

All of our money was One Dollar Bills in paper form.  Uniquely serialized.  All transactions involving money were conducted using One Dollar Bills (and change).  The owner of the dollar bill would define their ownership of the dollar bill by writing their name on it.  The spending of that dollar bill would be determined by giving it to someone and having them write their name on it. 

Such a system would be unrealistic in operation.  The only way to make it not only realistic but the only system of money in the USA and the world is to make it digital.