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Saturday, September 17, 2011
In a Nutshell
In a Nutshell
Central Bankers must align with science
Published Wall Street Journal, NY Times, The Telegraph, The Globe and Mail, September 17, 2011
Can the dualism that exists between economics and principles of science and mathematics be resolved with approaches similar to “Quantum Realonomics” that work to realign the monetary and economic structures with the physical constraints that pertain to concrete realities?
In a Nutshell.
The economic equation is rather simple in its totality. It simply consists of inputs (resources) and outputs (goods and services). The functionality that exists between the two is called jobs. However, for reasons unknown “surreal abstractions” now rule the day.
Central Bankers are preoccupied with the abstractions related to printing money and propping up a terminally ill banking and monetary system with little regard to the primary equation. Chasing these illusions will fail at every turn to cure this sick patient. The same diagnostic devices and remedies that were used prior to the 2008 meltdown are being used today. Now with common sense prevailing, the patient would never return to such diagnostic quackery from the same doctor. Never. And, yet we do.
In short, all issues point to the growing imbalance between aggregate global supply and demand. As the supply inputs diminish then outputs may not be increased. This means the functionality that correlates with these inputs and outputs should also decline. So the number of jobs will be reducing and improbable to increase, considering the finite constraints imposed by the science of the planet. Often referred to as thermodynamics.
Central Bankers; therefore need to understand that the “surreal abstractions” currently used as diagnostic devices and remedies, belong back in the
with the Wizard and Invisible Hand. Economics must become conversant with sciences and other foreign languages such as exponential mathematics. Only then, does it have the opportunity to remedy the simple economic equation, create effective diagnostic tools, and can leave its “surreal abstractions” with the Wizard back in Emerald City . Emerald City
The Wealth of Planets…is such a simple equation.
First Financial Insights Inc.
September 17, 2011
That's Central Banking
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