Theme: Incentives

—‘ INSERT IGNORANT MARXIST / KEYNESIAN DRIVEL HERE ‘—-

(the relationship between time, money, interest, and limits)

Time is the commodity we all manage, savings of time produced by a division of labor, savings or loss tested only by voluntary exchange and mutual gain, and hard money in an agrarian economy, and soft money in a regulated money supply is a means of storing it in least possible volatile form, given that the only means of testing the existing voluntary organization of production in sustainable networks of specialization and trade, is exhausting them, and the resulting corrections.

The primary problem we face in modernity is the reduced transaction cost of large, regulated, money supplies, and the extension of risk because of the insurance such supplies provide, dampens information distribution, and allows us to overcommit to the existing anticipated demand, and its networks of sustainable specialization and trade, and then corrections are not small and frequent but less frequent and very large. At present major corrections (overcommitments of promises based upon erroneous estimations of demand) are cycling every five to eight years. But we are accumulating overextensions across the economy under marxist, socialist, Keyensian, and postmodern assumptions of ongoing innovation that will provide greater gains than any correction can erase. (this is demonstrably false not only in the present century but throughout all of history).

Well of course, the problem is that it’s necessary for us to charge interest on production for reasons that are well understood, and only simpletons don’t understand.

We dont’ need to pay interest on consumer CONSUMPTION since the need for interest is provided by the calculation of production.

Democratic is always use as a lie, since it means ‘majority rule’ or ‘mob rule’ and nothing else. I think you mean, instead, ‘capacity to repay’.

And no it is not as simple as double entry book keeping. It is as simple as calculating the losses from a failure to collect interest in the treasury, and treating it as redistribution instead (cost).

The reason you don’t grasp all of this, which is fairly obvious to me, and might be obvious to economists who practice full accounting (austrians), is that all forms of exhcange and their constituent products, including barter, money, cost, profit, credit, interest, exist to calculate the underlying commodity of TIME.

But if you fancy marxist pseudoscientific drivel, then it’s unlikely that you have the knowledge necessary to grasp such things.

We manage time. And it’s time that we use to coerce each other. Money is just a store of accumulated time savings. Credit is borrowing against future time.

The average idiot still does not grasp that naturall production, agrarian production, and cooperation from agrarian barter were able to sustain small numbers, and that the production of TIME was limited by the rates of production of consumable flora and fauna minus the cost of harvest, and that when we developed a division of labor and then money, we could still calculate our uses of time, such that we were staying ahead of the production of monther nature.

The central issue with the current era is that hydrocarbons have given us the illusion that we no longer need conduct a full accounting, but this is a ‘spendable inheritance’.

(.. I will not go deeper. Not worth my time…..)

MONEY = a store of TIME. Credit = Borrowing of time. we can run out of ‘time’ just as we run out of gold. Although that is probably a simplification that is too difficult for you.

Hence why I am an advocate of full accounting in economics and all of science.