Wednesday, July 16, 2014

The Silly Pseudoscience That Is 'Modern Economics'

Source: Real Currencies

by Anthony Migchels on July 4, 2014

Now languishing in a memory hole, Arthur Kitson's thinking was perhaps the most advanced in an era when awareness of monetary matters was at its summit: the twenties/thirties of last century.

All modern science has been utterly corrupted to the core through orthodoxy and political correctness, under the pressures of power and commerce. So why are people so surprised it’s the same with ‘economics’?

It’s all just complete baloney. And of the worst, most moronic kind. Their most fundamental propositions don’t add up at all and simply wither away under the gaze of critical thought.

The fact that critical thought is strictly off-limits in today’s universities, where groupthink and the lowest common denominator rule as ‘eminence’, is the only reason book after book is written exalting these absolutely specious beliefs.

Compare it to allopathy, the trade of the men and women in white. They explain to you that newborns need mercury, formaldehyde, lethal viral matter, and genetically modified remnants of human foetuses to ‘enhance immunity’. You’re ‘irresponsible’ and ‘irrational’ if you happen to disagree.

Next, when these vaccinations have done their job and have destroyed your immunity and you get cancer a few decades later, they explain to you that you need mustard gas (‘chemotherapy’ is derived from that stuff) and lethal doses (according to the WHO) of radiation to ‘survive’. As a result, far more people die of treatment than of cancer itself.

It’s all ‘science’, you know. Proven! Honest! With double-blind peer-reviewed studies! Cross my heart, hope to die!

Totally corrupted, by commercial interest and thought/herd control. Promoting those who uncritically work hard to pass their exams, keeping back those going their own way.

And this is just medicine. It’s money and the economy through which they rule! If they do this to medicine, what does one really expect from the ‘science’ behind Capitalism?

Their laughable nonsense

We have already extensively dissected their ‘time value of money’. The idea that money is worth more today than it is tomorrow. And that the creditor thus loses when lending. For which Usury is then the ‘compensation’.

Is it any wonder that this is considered the absolute foundation of ‘modern economics’? Of course their witty rationales serve only to hide the heinous plundering of Usury. Of course ‘modern economics'’ most cherished belief explains why we need banks!

And of course it’s just rubbish. Totally irrelevant. The bank creates the money when it is lent out and retires it when it is repaid. It didn’t exist before the loan and doesn’t exist after it. It’s a sterile operation, completely neutral. No ‘value’ is created for the lender, none is lost to him. He only does it because he can plunder his unwitting victim with Usury on the ‘debt’.

There is no risk, because there is collateral. ‘Losses’ to ‘inflation’ (which don’t exist with credit-based money) are simply because they cause inflation willfully. It’s all a total mirage.

Even with already existing money (the situation most people mistakenly thinks exists and must exist), the ‘time value’ can easily be undone by having savers pool money together, in exchange for giving them interest-free credit from the collected savings.

Or one slaps a demurrage on the money, when those holding money, instead of those borrowing it, pay a percentage per year. This proactively destroys the value of money and ends hoarding: people will sink money in assets, which is the way it should be anyway. Saving money is antithetical to its purpose as a means of exchange. The ancients worked with this money, when their money was based on receipts of warehouses for perishable produce. Because the goods backing the note perish, so does the money.

They built all the wonders of Antiquity with it, all the way up to the Cathedrals.

Frederick Soddy, another forgotten hero who most assuredly deserves more attention.

Price discovery

Here’s another example: price discovery. According to ‘modern economics’, price is a function of demand and supply. I think we can agree that this basic proposition rivals ‘time value’ in importance for our crummy little pseudoscience/mind job.

But, our banker friends have conveniently forgotten all about the third variable: money supply.

Without a money supply, there cannot even be a price to begin with! Money’s secondary function is unit of account! Price is expressed in its monetary value!

Not only that, without the means of exchange, there is hardly any trade at all: demand and supply never meet, except the few trades that can be settled with direct barter!

So: price is a function of demand, supply, and money supply. And this is really foundational in obscuring the second main issue with money: managing its volume properly.

Now, how relevant is this? Hugely. Because they ignore money in price discovery, they can have their maniacal Austrians/Neo-Liberals claim money is irrelevant, deflation fantastic, and markets just don’t clear because they are not ‘free’. This is known as Say’s Law and is used to hide that the only reason we are in a depression is because of a deflating money supply.

Because price is supposed to be a function of demand and supply, only ‘structural adjustments’ (raping labor rights) to ‘correct’ ‘market inefficiencies’ blah, blah, blah.

This is how they sell austerity. Should we know about the simple truth of price discovery, we would always have the money supply in mind, and this is not convenient for those who rule through money and manipulating its volume.

This is just how they sucker us with their word magic and Orwellian crap. Laughing all the way to the bank about the silly masses and their love of ‘the power of ideas’.


We are ruled by a Banking Cartel. About 40% of the disposable income of the common man is taken by Usury and related rents, another 20% by their Transnationals and their artificial scarcity through Monopoly. Yet another quarter by the State, which is another Monopoly they control. What remains is for the wife.

Who are we kidding? We are total slaves.

First we are interest-slaves through the artificial debt. Next we are relegated to wage slavery by scarce money, paying off the Usury by doing the jobs they want to have done. In effect, digging our own graves in their Banks, Transnationals, and Governments, for sustenance.

Of course they own the ‘science’ behind it all. Of course they explain the rich must get richer through Usury for the benefit of all. Hell, even just studying ‘modern economics’ makes you a greedy bastard, it was recently shown!

Forget about their silly crap and read up on Margrit Kennedy, Bernard Lietaer, Arthur Kitson, David Astle, and all the others in the know out there. I’ll even throw in my own interest-free economics page: it’s not a bad place to start.

We can do so much better.

Banking Is Institutionalized Murder!
Rationalizing Usury: the Time Value Hoax
Capitalism Is Jewish Usury

Interest-Free Economics
The Difference Between Debt-Free Money and Interest-Free Credit
More on Mutual Credit


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