Simultaneity: The Missing/Mis-Perceived Concept in Free Market Economic and Monetary Theory
The thought of creating this post came as a Social Credit advocate Joe Thompson responded to a post of mine on a thread on the Social Credit Google group and resulted in the my input below becoming that priorly considered blog entry. Such synchronicity is curious to me.
Joe:
Steve, in the sense you use the word ‘profit’ below, the Russian economy was surely converted into a profit making one during the time of Yeltsin. The infamous ‘oligarchs’ profited enormously as they milked it for everything they could, no doubt in the process confirming in the minds of many, if not most Russians, the very worst long held perceptions about profit as preached by the Communists.
There is, however, another sense in which that word ‘profit’ is employed. A purely accounting one, as in a Profit and Loss Statement, found as part of the books of every business. And in which ‘profit’ acts as a vital feedback mechanism in enabling consumers to direct producers as to what is needed or desired for their personal consumption.
It would seem there is great confusion in the minds of the general public about this, and unfortunately Social Crediters themselves have not been exempt from this confusion.
Much favourable mention has been made of late about Oliver Heydorn’ s excellent book, “Social Credit Economics”. I think anyone reading it who has previously studied Douglas Social Credit will quickly recognise what a masterful job Oliver has done in pulling the writings of Douglas altogether in a highly cohesive manner, and illuminating the timelessness of his analysis and necessity for the corrective prescriptions he advocated. It is a first class piece of work.
There is, however, at least in my opinion, a vital need for a companion volume. It might tentatively be called, “Social Credit Accounting”. And I’ve long hoped that someone as equally well qualified in the field of double-entry cost accounting itself as Oliver obviously is in the field of philosophy would produce such a work.
I am aware there have been pieces by various authors dealing with parts of this subject, some of the writings of the late Vic Bridger probably being amongst the most current.
Vic was an accountant, and he had a great knowledge of the subject and its relationship to Social Credit. But to date there has been nothing of which I’m aware that fully compares in that particular area to what Oliver has done, though the need is definitely there.
As I’ve mentioned in times past, much of what should be in such a work, a Primer of sorts, was written in various posts scattered all over several Social Credit internet Lists that pre-ceded this one. Those Lists were moderated by William B Ryan, and his explanations of accounting, its history and the ways its rules and conventions apply to Social Credit contained some very valuable information that if published would certainly be of great assistance in furthering our common cause. Perhaps someday such a work may be forthcoming. It is sorely needed.
Regards,
Joe
Me: Joe,
Yes I’m sure such a book would be helpful in pointing at the ways that cost accounting can confirm the Gap and also how accrual accounting can actually obscure its reality for economic theorists. I’m certainly no authority on accounting, but I’ve just posted the titles of my next two posts on my blog that point at what I think are the concepts that are missing/misperceived and that consequently prevent economies from being self sufficient, autonomous and so able to manifest a cardinal aspect of both Distributive economic theory and Catholic social thinking, subsidiarity.
The missing/misperceived concept in economic and monetary theory is simultaneity. That is a continuous simultaneity of an equity of available individual incomes in ratio to prices needing to be liquidated for an equilibrium to be even possible. Policy solutions for such simultaneity is either presently missing in such theory (Disequilibrium theorists like Steve Keen), or misperceived as already being a reality as a result of belief that indirect and inadequate means of filling the gap like government stimulus and continuous borrowing are capable of creating it (DSGE/Neo-Classical/New Keynesian theorists). The realities enforced by Cost accounting’s dynamic and ever present reality in commerce/the economy, properly perceived, show that such simultaneity is not present uncompensated for and that despite false notions that measures which still exact a cost…can achieve it. I would add that personally it’s curious to me that the necessity of simultaneity for a free flowing economy and simultaneity as one of the aspects of mysticism are mutually reflective of each other. That is either can be used to enlighten, and both together are a more complete analysis and potentially a more powerful synthesis. So let simultaneity be the concept enlightened in such a book of Social Credit Accounting.
And of course national self sufficiency, autonomy and subsidiarity are largely enabled by Social Credit’s policies and also go a long way toward enabling international trade to be a cooperative process instead of the dangerously competitive one the current financial system enforces.
Social Credit/Wisdomics/Gracenomics For Profit Making Systems and Freedom For the Individual
If Obama and his come afters want to be both modern Lincoln’s to their people and begin to defuse the march toward war they must be ultimate chess players….and counter international power….with domestic monetary grace. There are no peaceful solutions when power is the only consideration. Think Lord of the Rings. There is no defeating power except transforming the “game” into one exalting freedom for both the individual and the system. Think the 1st century evolutionary power of the concept of Grace versus the Roman Empire. Obama could lead the US and the American people to an evolution of profit making systems and a greater freedom for the individual that recognizes that abundance makes Life more free and convivial for everyone…and yet does not solve the inevitable suffering that is Life. Let the unnecessary and avoidable general suffering of war that results from consideration of power only be transformed into a joy of Living with abundance and the more likely constructive integration of the inevitable sufferings of Life into an ethic of true strength.
Monetary grace the free gift for the economy is the reflective missing link to such salvation from Power consideration and the equal power to help the individual endure the sufferings that incarnate Man will inevitably have…with a greater graciousness of soul.
Social Credit/Wisdomics/Gracenomics and The Great Soul of Russia
If Putin wants to be both a modern Peter the Great to his people and begin to defuse the march toward war he must be an ultimate chess player….and counter international power….with domestic monetary grace. There are no peaceful solutions when power is the only consideration. Think Lord of the Rings. There is no defeating power except transforming the “game” into one exalting freedom for both the individual and the system. Think the 1st century evolutionary power of the concept of Grace versus the Roman Empire. Putin could lead Russia and Russians to an evolution of “the Great Russian Soul” that recognizes that abundance makes Life more free and convivial for everyone…and yet does not solve the inevitable suffering that is Life. Let the unnecessary and avoidable general suffering of war that results from consideration of power only be transformed into a joy of Living with abundance and the more likely constructive integration of the inevitable sufferings of Life into an ethic of true strength.
Monetary grace the free gift for the economy is the reflective missing link to such salvation from Power consideration and the equal power to help the individual endure the sufferings that incarnate Man will inevitably have…with a greater graciousness of soul.
Ironies and economic non-solutions abound…when the consideration is power instead of Grace and graciousness.
For Cryin Out Loud Get Vladimir Putin Oliver’s Book
I see that Russia is using all of the orthodox idiocies of throwing money at their Banks etc. that won’t solve its problems in response to prior sanctions and this obvious play to bankrupt them via our alliance with the Saudis. Why not just distribute a separate internal national currency and ensure that everyone has enough demand to live comfortably and keep the domestic economy prosperous and expanding? Russia having its own history of top down control need not even worry about much of a negative reaction to central planning they could even issue it and say that it was your patriotic responsibility to spend it on consumption and/or debt payment. Central planning that has the freeing effects of Grace/monetary grace….is my kind of central planning anyway. And Putin already actually has a history of arm wrestling Banks and winning so why not yield the patriotism hammer on them to finish the job? Yes, there are other regulations that might need to be implemented (as there would undoubtedly need to be in implementing and protecting any Social Credit economy anywhere) for instance not allowing or legally rendering unenforceable any Forex speculative shorting of the currency….certain financial and monetary “markets” are really just economic vices and loosely/unregulated opportunities for not altogether ethical individuals and institutions to profit from human and economic suffering anyway. And once you “cross the Rubicon” of the economic transformation that a direct supplement to the individual would effect…..such moves would be seen as rational and ethical responses to protecting a much better, much more humane system. That plus with a growing economy that adequate demand would insure….what importer wouldn’t seriously consider selling their goods in Russia and even accepting their currency as well?
Ship that book tomorrow and maybe even include an expensive French Cognac along with it! It’s at least an attempt to stop the world’s trend toward going nuckin’ futs.
Wisdom: Its Definition, Its Ultimate Realism, The General Lack of Awareness of It and A Few of Its Gifts
Wisdom is all relevant data and every possible relevant situation integrated in the most optimally ethical fashion. Therefore, by definition, it cannot NOT include….all relevant realities…often including those realities that others will not consider…because the consideration of them being “unrealistic” actually blocks their entry into their minds. Couple that reality with the sociological fact that research has shown that when only about 10% of the general populace begins to believe something new is true its nearly impossible to stop it from becoming generally perceived as such and a few million man marches plus a focused and determined insistence upon very concrete and imminently doable policy mandates and you’ve got a mass social movement that herds the entirety of the political apparatus toward an actual solution.
Wisdom does not lack data. Wisdom does not lack study or awareness of the various fragmented bodies of thought humanity calls its “sciences” both hard and soft. What economists and the world lacks is a sufficient awareness of the power of Wisdom which by the definition above must also include the integration of human consciousness of itself and of ethics. And when you also begin to see how the highest concepts and experiences of the world’s major Wisdom traditions perfectly align with the stated goals of economics (amongst other studies), and can also align its policies with such philosophy/Wisdom so that they effect precisely what is intended…that is when economic fear or despair or cynicism becomes confidence.
Economics: The Non-Wisdom Discipline
Economics is the non-Wisdom discipline. Wisdom being the ability to integrate relevant data and then act/create policy fully aligned with it in the most direct and ethical way possible. Neither DSGE nor Disequilibrium theorists, being fragmented/thoroughly stuck in one kind of orthodoxy or another, are up to Wisdom/actual and confident policy pronouncement. The concept of Grace (not its oft attending religious missings of the mark like Puritanism, Judgementalism and simply a failure to apply a mature knowledge of Love) being the pinnacle of Wisdom is not only the only human concept above orthodoxies of any kind, three of its many aspects are balance, equilibrium and flow…which coincidentally are the three holy grails of economic theory. So why not investigate all the aspects of Grace including its associations with freedom like individual freedom, free flowingness and the free gift? Or like inclusiveness as in inclusiveness of all valid economic insights. That way Interest (an obvious additional financial cost) Rent (Georgism) Profit (Socialism) Monetary Inflation (Neo-Classical Economics) can all be seen as correct and yet incomplete aspects and/or effects of the economy’s first, most basic and dynamic cause of instability…the tendency for the rate of flow of total prices to always exceed the rate of flow of available individual incomes. The concept and experience of Grace….the more you look at and investigate it the more you realize how completely realistic it is and thus is the best guide for both individual self development and systemic economic policy.
Post to Real World Economic Review Blog: Policy as a Deity Would Implement It
Donald and all,
Why not conduct economic and monetary policy….directly to the individual…for his ability to survive and so that the system flows freely as well…by doing as a Deity who is loving actually would do? We could of course still have loans for commercial start ups and expansions, but so far as the consumer/individual financial paradigm was concerned we could additionally provide a free supplemental income to everyone 18 and over. Man’s integration of an alleged loving Deity’s Grace into temporal universe policy…only makes good economic and human sense. God’s Grace reflected in monetary grace the free gift…align with each other completely. And because the economic system itself would continue to tend toward an inequality/scarcity of actually available individual incomes in ratio to consumer prices if you implemented a discount on retail prices that was derived by the simple mathematical ratio of total cost of consumption over the total cost of production for a given period of time you could mathematically eliminate inflation as well. Plenty of room for rational and ethical regulation of other more peripheral aspects of the economy, but with the major and most underlying problem of the economy handled…how much more individually free and systemically free flowing would the economy then become?
Social Credit/Wisdomics/Gracenomics/ Gracientialism 