Posted To RWER Blog 05/20/2017 Regarding True DSGE

Ken,

“Curiously, complexity does include equilibrium. A moving equilibrium.”

Yes it does. A dynamic equilibrium in other words. A dynamic equilibrium assumes at least two interacting factors/forces that CONTINUALLY balance out….even within the process of each moment, i.e through Time. But a mere statistical/stochastic equilibrium is a momentary one, and in that sense is actually a full stop…which violates the temporal universe reality of the flow of both Time and everything within the temporal/time universe. Now DSGE assumes that it has done this, but it actually violates the nature of the temporal universe PROCESS…as well as didn’t see the GFC coming nor wisely corrected what caused it….which was the underlying disequilibrating ratio/reality that modern technologically advanced capital intensive economies CONTINUALLY create a greater rate of flow of total costs/prices to total Individual incomes.

So what IS the solution? The INVERSION/TRANSFORMATION of the problematic ratio above via an abundant universal dividend (after several centuries let the labor market adjust to abundance instead of scarcity) which indeed will create a dynamic moving equilibrium PROCESS, and then, just to maintain that process in an inevitably not fully rational or ethical world where powerful corporate and financial interests whose wealth and whose enforced monetary paradigms might try to disrupt and co-opt even an ethically beneficial system for all, you prevent such by strategically implementing a price discount policy of sufficient percentage at each of the full stopping points throughout the entire economic process which becomes “an offer such economic entities cannot refuse” and at the same time such policies break up the monopolistic financial paradigms of Debt and Loan ONLY.

wisdomicsblog.com

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