Muso Musings: Fatherhood, Theory & Stuff
"T'is hard the kinds of Knowledge are but two,
The One erroneous, the Other true.
The former profits nothing when 'tis gain'd,
The other's difficult to be attain'd."
Abu Jaaphar Ebn Tophail's
To the LIFE of
Hai Ebn Yokdhan.
Saturday, 20 May 2017
Finacial Illiteracy, The Blind Leading the Blind. National Debts, Defecits, Productivity or, Austerity and other shibboleth´s
In 1729 Benjamin Franklin wrote a pamphlet ´´A modest Enquiry into the nature and the necessity of a paper Currency.''
a modest enquiry,
''There is no Science, the Study of which is more useful and commendable than the Knowledge of the true Interest of one’s Country; and perhaps there is no Kind of Learning more abstruse and intricate, more difficult to acquire in any Degree of Perfection than This, and therefore none more generally neglected. Hence it is, that we every Day find Men in Conversation contending warmly on some Point in Politicks, which, altho’ it may nearly concern them both, neither of them understand any more than they do each other.
Thus much by way of Apology for this present Enquiry into the Nature and Necessity of a Paper Currency. And if any Thing I shall say, may be a Means of fixing a Subject that is now the chief Concern of my Countrymen, in a clearer Light, I shall have the Satisfaction of thinking my Time and Pains well employed.
To proceed, then,
There is a certain proportionate Quantity of Money requisite to carry on the Trade of a Country freely and currently; More than which would be of no Advantage in Trade, and Less, if much less, exceedingly detrimental to it.
This leads us to the following general Considerations.''
It is remarkable that the discourse in the 2017 Election is still essentially illiterate on Financial matters and the axiomatic relationship of debt to money, two sides to an Accounting identity.
Debt is an Asset to the bank, the more the Government or the Citizens are in debt the Richer is the bank and the less debt then the lower the assets of the Bank and the poorer or more properly less liquid, they are, that is there is less money available for bank customers to exchange their goods or to pay interest on loans or taxes, in any event.
Carol Quiggle stated it thus in Tragedy and Hope,
Money and Goods Are Different
”Thus, clearly, money and goods are not the same thing but are, on the contrary,
exactly opposite things. Most confusion in economic thinking arises from failure to
recognize this fact. Goods are wealth which you have, while money is a claim on wealth which you do not have. Thus goods are an asset; money is a debt. If goods are wealth; money is not wealth, or negative wealth, or even anti-wealth. They always behave in opposite ways, just as they usually move in opposite directions. If the value of one goes up, the value of the other goes down, and in the same proportion.”
If Debt is not being created then the money supply goes down and when there is less money it is harder for people to settle accounts with each other for trade.´´
The Answer is to make sure that sufficient money is circulating and available in the economy for productive exchanges to take place and so that the necessaries of life and some of the luxuries can be circulated amongst communities.
There are no shortages of excellent websites now that have set out clearly how the current system works and its inherent weaknesses and vulnerabilities. The number of solutions relates to political choices and there is less agreement about those ideas.
The diagnosis of the present problems with the Banking system is what is important in this Election as where the problem is not properly diagnosed then the suggested remedies will be a shot in the dark.
The problem of analysing political choices against the metric of a Monetary measure is the Money as a Thing is most certainly a Variable and as any good technologist, scientist and metrologist will tell you a unit of measurement has to be clearly defined and fixed.
discussions — of 'value,' of fluctuating prices, of the gold standard, of changing interest rates, of items of pecuniary wealth which are at the same time items of debt — are
merely discussions looking toward a readjustment of the factors which prevent them
The problem of analysing political choices against the metric of a Monetary measure is the Money as a Thing is most certainly a Variable and as any good technologist, scientist or metrologist will tell you a unit of measurement has to be clearly defined and fixed. The dollar. He notes that it is a variable. Why anyone should attempt, on this earth, to use a
variable as a measuring rod is so utterly absurd that he dismisses any serious
consideration of its use in his study of what should be done. He also considers 'price' and 'value' and the fine- spun theories of philosophers and economists who have attempted to surround these terms with the semblance of meaning. These terms, like the monetary unit, may have had meaning to men in the past but they
mean nothing whatsoever to the modern technologist. The standard of measurement is
not relevant to the things measured; and the measuring rod and the things, measured as if
they were stable, are all variables.
Theresa May has said she wants the Conservative party to be the "voice of ordinary working people once again". That has prompted some to say she's a "Red Tory". But what does that tag mean and is it true?
Imagine the Tory party as an archaeological site. Dig down the layers and you'll find the free trade crusade of Pitt the Younger and the social reform of Sir Robert Peel; the "One Nation" conservatism of Benjamin Disraeli and Margaret Thatcher's embrace of the market.
More recently David Cameron's nebulous notion of a "Big Society" has added another layer of political silt.
So what will Theresa May's contribution to the Conservative Party story be?
Her new manifesto will give us clues, and striking interventions into corporate Britain have already been trailed - putting worker representatives on company boards, creating new rights for employees to request training and a cap on energy prices.
The phrase "Red Tory" comes from the work of an academic called Phillip Blond, who published a book in 2010 called "Red Tory: How left and right have broken Britain and how we can fix it".12345