Monday, April 7, 2008

The Post-Paradox JOULE STANDARD

"Energy is also measured in joules. In many ways it resembles money: it is a currency in which all processes in nature must be paid for. Just as money can come in dollars, pesos, yen, rubles or liras, so energy can come in many forms--electricity, heat, light, sound, chemical, nuclear. The expression for the total energy of a system of objects can be written

E = (potential) + (kinetic) + (electric) + (heat) + . . .

where "kinetic" for instance stands for the sum of mv2/2 for all the component parts. And it is still true that if the system does not interact with the outside, the total value of E is conserved."

Blueprint for a National Consumer Organism:

1) THE GOVERNMENT DECLARES ITS INTENTION TO BECOME A NET ENERGY SUPPLIER (AS OPPOSED TO A NET ENERGY CONSUMER.

2) The government then first declares that it intends to support the value of its currency in terms of energy, such as a given quantity of joules/kilowatts (in lieu of gold or a basket of commodities, etc.)

3) Concurrently –recognizing that both taxes and the cost of energy are sequentially accumulated to produce the final cost of EVERY product and service, the government then announces that it will begin to implement this policy by first establishing what begins, at first, as a closely regulated National Energy Preserve (NEP). The NEP is initially comprised of every entire direct supply chain that eventually results in the final production of some form of renewable energy technology or energy production (i.e. from mining to transportation to final assembly and to the point of purchase)

4) Within every direct supply chain, every form of tax, inclusive of all Local, State and Federal taxes, is then selectively and retroactively eliminated (i.e. from the mining of ores to final product output, etc.) –and specifically, all income taxes—while simultaneously limiting the profit margins (calculable in terms of the Joule Standard) of every entity within the NEP to some predetermined maximum. The total effect of this step is thus an immediate reduction in the final cost of each and every technology involved, and therefore ultimately also the cost of energy production as well.

5) The government then immediately begins to purchase these technologies in terms of its new currency, while simultaneously obtaining the means to support its stated value (the number of joules per krona, dollar, ruble etc.)

6) As the final cost of technologies within the NEP consequently decline --and thus the cost of energy itself-- the potential cost of energy for the industries themselves is also reduced. This of course, compounds the reduction in cost obtained through the elimination of taxes, so the government now has an increasingly cheaper source for energy producing technologies.

7) Since the government is highly motivated to remain a permanent customer, as the cost of energy declines (now measured in terms of energy) declines, the effective value of the currency increases at the same time as the level of employment.

8) A powerful feedback loop (economic continuum) is now begins to be established, within which, the production cost of energy and renewable energy technologies is dramatically reduced (relative to the extreme inefficiency of the traditional capitalism). Moreover, as the energy supply expands, the cost efficiency of production increases, this is synonymous to an expansion in the “money supply,” as well as a continuously declining need for taxes.

9) As an expanding source of energy in its own right, the government thus has two ways to increase its effective revenues: First, by paying the salaries of its own employees in terms of energy (either directly in terms of energy via the power grid, or in term of currency backed by this self-same energy) --but also by selling energy to the private sector. The potential to do either is therefore expanded merely by increasing its potential as a net energy source.

10) Now, in order to further reduce its expenses while simultaneously expanding its ‘monetary’ base, it then selectively begins to expand the elimination of taxes it began within the Energy Preserve, as it simultaneously begins to serve as an inexpensive energy source for industries that provide more traditional goods and services –specifically, all those goods and services that the government also need in order to function.

11) At some point, the amount of energy the government consumes is exceeded by its potential production. From this point on, the same process begins to accelerate throughout the remainder of the economic continuum –a continuum that is now completely premised on the production of renewable energy.

12) In other words, every individual consumer becomes a potential source of “money” (excess energy production.) The cost of production continues to decline at every level –and yet the “value” of the money remains utterly constant. Why? Because it represents the very essence of the “economic” process.

A summary of consequences…
Finally, in stark contrast to the fundamentally parasitic system of fiat currencies, as the Post Paradox Joule Standard economy approaches saturation:

A) The conventional practice of ubiquitous taxation is ultimately eliminated.

B) The concept of a Central Bank is rendered obsolete –being replaced by a widespread, decentralized process of energy production that “funds” itself.

C) The fundamental problem of economic decline is permanently resolved. For instance, the primary source for ‘stagflation’ (high levels of inflation and unemployment as the twin consequences of reduced energy flow) is simply contradicted by the Joule Standard itself. Employment and currency values increase simultaneously for the same reason: i.e. Energy costs decline as the energy supply rises, which amplifies the potentials for human endeavor.

D) In short, while the present system is maintained by an elite corporatocracy dependent on a system of “cheap” labor (encoded as “free” trade), controlled shortages (OPEC, Big Pharma, etc.) and maximized profits in the context of continuously inflated currencies --the Post Paradox Joule Standard automatically re-structures the very logic of the system itself to produce the opposite result: the elimination of poverty.


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In the Beginning, there were Consumers and Food...

START THINKING HERE:

WAKE UP! It's an ENERGY System --Not a Money System!

"Energy is also measured in joules. In many ways it resembles money: it is a currency in which all processes in nature must be paid for. Just as money can come in dollars, pesos, yen, rubles or liras, so energy can come in many forms--electricity, heat, light, sound, [kinetic], [mechanical], chemical, nuclear."

Mankind as a whole is profoundly muddled concerning the nature of economics. The most prominent symptom of this is represented by the common euphemistic assertion that economics is an extremely ‘complex’ phenomena, first of all because it appears ‘inarguably’ comprised of a vast host of distinctly different physical “factors,” but whose ultimate impact is also determined by the vagaries of human psychology.

This would be laughable if it did not also reflect an essentially universal consensus. There is scarcely a soul on the planet that does not accept this state of affairs as an inevitable fact of nature. So instead of laughing, I –who may be the ultimate contrarian— am forced to feeling far more appalled and saddened than entertained by mankind’s general incapacity for critical thinking.

Even our scientists don’t question the most basic premises of modern economics. Why? Apparently, the reason is because it’s not a field of science –an observation that of course, merely points to the reason behind the reason: that they are themselves generally incapable of recognizing their own immersion in a cultural cul-de-sac of circular reasoning.

Here is what I mean. I have yet to meet anyone who doesn’t automatically accept it as a fact that economics is something that originated with barter and trade. The moment once accepts this premise as a fundamental principle of economics however, is precisely the very same moment in which one stumbles blindly into a labyrinth of unintegrated ideas and circular logic, because the act of trade presupposes a far more fundamental and energetic set of principles.

For the sake of what brevity is possible at this point, I will state the reality more succinctly. Life is subject to the phenomenon of economics for the simple reason that it gets hungry. This is why food is ultimately the most basic of economic necessities, but even this is merely a foreground expression for the reality –entirely provable—that “economics” is grounded in pure physics, because life itself is nothing more or less than the biological manifestation of a circular, feedback energy process.

Make no mistake. There are no other principles, and the only reason you believe otherwise is because you have been deeply immersed in the concepts and trade language of money since you were in diapers. But “economics” is pure physics, and I can say this without equivocation, exemption or caveats of any kind, because I have developed a completely integrated and internally consistent explanation, made possible only because I began by identifying the actual origin of the economic process. From that point on, a process of enlightenment unfolds, being hinged simply on an observation with respect to how the principles of energy in various states of feedback have manifested through the agency of various representative forms, such as food, tools and money. The result is a seamless overview that is particularly applicable towards a complete understanding of the phenomenon of economic decline.

Do you remember any of your high school science classes? You were clearly told that every thing and every event could be described in terms of energy. Everything! This, of course, is what E= MC2 means. And yet, as you grew into adulthood, you quickly adopted the prevailing notion that the ‘value’ of money was really just an ‘abstract concept’ and therefore something best left in the hands of people who really understood money ... bankers. Don’t even bother wondering how they managed to take over the world. And don’t scratch your head over why the monetary systems are now collapsing. Nature hates a vacuum; so it hates the financial sector most of all.

So in order to avoid the implosion of our own skulls, let’s all take a fresh look at reality. In seventh grade, you were also told that every form of energy could be converted into every other form. Therefore, take a moment to consider all of the various forms of energy that comprise the phenomenon of economics today: Food (energy source); human and animal labor (energy sources); the entire spectrum of technologies, all based on --take a note!-- the physics of fundamental forces, forces that serve to provide either a direct source of energy, or as a means to effectively amplify the effective energy of every consumer organism (can-openers; telephones; cars, etc.); and fuels (food for technology) of a chemical or atomic nature.

Think now. Many times a thing is more obviously recognized by its absence than its presence. Therefore, if we conceptually remove all of the above categories from the economic process, what remains? Money –which all of our banker friends would have you believe comprises the very essence of the economic process.

But what does money represent? It represents “value,” but this really just begs the question. We have to go just a tad deeper. For example, one can buy food with given quantity of money, because money is supposed to accurately reflect the relative ”value” of food? And what comprises the essence of this ”value.” In the most fundamental sense, the value of food essentially lies in some given quantity of energy. In this case, as in all others, we can clearly see that, at the most basic levels, the term “value” is really just an unrecognized synonym for “energy.” In other words, if one removes all of the energy from food (fuels) –or tools, then one also automatically removes their very purpose and meaning as well.

Everything about economics can therefore be transcribed in terms of energy and understood in terms of pure physics. After all, while physics can most assuredly be described in the symbolic terms of numbers, this obviously does not mean that the dynamics of physical systems are based on abstract concepts.

In other words, money is far from fundamental to the phenomenon of economics and can, in fact, be completely replaced in terms of energy.

Gold is an implicit energy standard

And this finally brings me to a final and brief discussion of the gold standard. At this moment in time, I am, myself admittedly a gold bug. But this is merely as a practical matter, because I know that the true attraction of gold as money stems from its virtue as an implicit energy standard.

You see, while the ”value” of gold is often alleged to reside in its relative rarity –and therefore uncommon and “precious” by definition— the term “rarity” is really just shorthand for “requiring a great deal of energy to obtain.”

For example, Earth probably has a blob of gold the size of Texas floating at its core. Go ahead, pick a number; but the point is, what would be its “value” as a currency if every particle of gold in the planet were to somehow vibrate its way to the surface one fine day? Under these remarkably horrifying circumstances, it is likely that the entire surface of the globe would become covered with gold to the depth of several inches at the very least.

What would be its “value”? It would not be absolutely zero, because gold does indeed provide significant technological advantages in terms of current flow over many other elements. However, this value would essentially be determined by how much energy it would take to bend over …and pick it up…

As fate and nature would have it though, gold remains the ultimate fallback currency --to this point anyway-- because the cost in energy to obtain it has remained largely consistent over the centuries. There are more industrial methods of extraction since the days of the Roman Empire, but the quantitative demand and the “cost” of energy itself is greater (“cost”: i.e. takes more energy to produce energy).

Gold is therefore necessarily the default currency towards which the world is inevitably gravitating in its spontaneous search for stability. Gold secretly represents a relatively consistent quantity of energy, and thus provides a relatively stable benchmark for the underlying value of everything else.

Parallel reality: a Post Paradox world

Beyond gold and fiat currencies and currencies based on multiple-commodity standards lies a whole new set of potentials. This is a stage at which the underlying reality and the true principles of principles emerge into the light of day. “Economics” is transforms into a field of science, and the implications are such that economic systems can then be literally engineered to produce states of permanent and universal prosperity, and all the paradoxes and economic conundrums and shortages characteristic of the current regime are automatically nullified.


NESTED LOOPS: The Economic Process As Experienced By Every Consumer Organism at Any Given Level:

NESTED LOOPS: The Economic Process As Experienced By Every Consumer Organism at Any Given Level:
The "Single-Celled" Economic Template: Every single-celled creature represents a complete economic system comprised of electrical, mechanical and chemical forces whose fundamental natures are not separate, but merely represent translational stages, stages in which energy is merely transferred from one state or level into another. Ultimately therefore, they cannot be parsed, so from the position of a comprehensive overview, as in the case of a fully integrated theory, complete understanding depends on perceiving the state of the whole as a reflection of a single entity: "energy." Itemization in this instance is entirely counter productive. (It is, in fact, the very approach that has prevented the world from achieving any true understanding of the nature of economics.)

For example, the flow of electrochemical or electromagnetic energies throughout a nervous system is projected into the "economic" environment by means of the mechanical force of contracting muscle tissue. For eons, the job of obtaining food --which, like currencies today represented an acquisition of greatest "value." That is, food has always been valuable because food represents energy. Therefore, the feedback loop of the internal economic system of each consumer organism--that is, the neural and metabolic continuum of energy that comprises Life-- cannot be distinguished as separate from the economics of its life as an externalized system.

Precisely this same pattern is observed at every level of scale. Beginning with single consumers (regardless of their evolutionary standing), the pattern repeats in the form of collectives of consumers (sponges to corporations, etc.); and manifests simultaneously at the level of collectives of collectives of consumers (i.e. nations, etc.). In brief, as seen from the most fundamental perspective, the internal and "external" economics of any given nation is absolutely identical in essence to that of a microscopic protozoa.

And if you think that the economic forces of a nation are 'more complex' than those of a single cell, then you haven't looked closely enough...

If Economics is Physics, then why does consumer psychology play such a large role; or rather, why is "value" also appear to be a merely subjective phenomenon? Rethink everything. There is really no contradiction. Remember, the economic process is ultimately just an extension of the feedback dynamics of life itself. The core loop entails the aquisition of the energy represented by food, which after ingestion, then in turn becomes incorporated into the nervous system as the energy of sensation. This itself is an example of pure physics, but when couched in terms of sensation, we must say that the search for, and digestion of food is itself merely an expression of sensory feedback and motor control. This is why economics appears so "subjective," and yet at the same time, we can also describe it entirely in the "objective" terms of physics.

In short, the internal economic process is ultimately projected into the environment and "objectified" in terms of tools and money, to produce the economic process that we conventionally observe. And yet the underlying principles and process remain utterly one and the same.

As always, all confusion is eliminated through the total unification of concept and sense, and the destabilizing and volatile effects of "subjective" phenomenon cease to be an issue.

In fact, the engineering principles for a truly integrated economic system could well be said to reflect the fundamental physics of sensation.

Think about that for awhile...

Why is this theory referred to as "Post Paradox"?
Nature is constructed in such a way that any dynamic continuum without perceivable roots becomes a chicken-and-egg problem. Today, the worlds' monetary systems have been cut loose from physical reality primarily because modern economists have never realized that the term "value" is always and everywhere merely an unrecognized code word for "energy."

(For example: What is the "value" (meaning) of food?) Consequently, because the meaning of meaning, of value has never been fully digested, modern logic --which starts somewhere in the middle with "barter" and "trade"-- automatically defaulted to the notion that "value" must therefore be just an abstract concept. However, this is precisely why economics is still plagued today with an aura of metaphysics, rather than imbued with the simple clarity of physics.

The world community of economists doesn't realize that it is dealing with a pure energy system, so it is essentially characterized and trapped within this following vicious circle of reason: To "control" inflation, the authorities raise interest rates in order to reduce the flow of money. Unfortunately, this increases the rate of unemployment; however, they only way they know to decrease the rate of unemployment is to increase the flow of money. Now "obviously," the only way to do this is to decrease the prime interest rate, so they naturally feel compelled to lower interest rates... And around and around we go...

So, what if both inflation and unemployment are already high and on the increase? What if an economy is in a state of "stagflation"? What can anyone do? Well, if one is in charge of the money system, nothing at all --because you are trapped, by definition, in a paradox created by a faith in the sequential logic of cause-and-effect.

When faced with a continuum however, linear logic produces only vicious circles; so the primary strategies of the money-centric mind really merely define a balloon-squeezers' strategy to make the balloon bigger --but if a balloon is shrinking, it will continue to shrink no matter which end is manipulated.

In short, the only way to reverse the progressive decay of an economy in decline is to fully integrate the Money System with the far more fundamental principles of the underlying Energy System.

The term 'Post Paradox' thus signifies a point of view that transcends the vicious circles of reason that are inadvertently generated by modern thought processes, because from our new perspective, economies can be engineered to render permanent and stable states of prosperity.