Divine Economy Theory Serves Rich And Poor Nations.

It is the remedy of economic woes towards which both rich and poor nations aspire. The divine economy theory identifies the malady as interventionism.

The remedy is simply and clearly implied in the divine economy theory - which recognizes that the equilibrating tendency and power of the economy is part of a divine institution that exists because human beings exist. The economy is that divine institution, and it emanates from purposeful human action by human beings who are created in God's Image and who are all a part of the same human family.

Poor nations can best progress in a milieu of private enterprise and investment that is free from the corruption of human intervention. Domestic and foreign investment provide the transformative element necessary for advancement.

Rich nations have all of the vital economic elements present but suffer in direct proportion to the corrupt extractions and manipulations of the interventionists. The only necessary condition for these countries that are already blessed with ample resources or with the presence of all of the economic elements is the exercise of a free economy. This is an economy that handles all the complex adjustments and interrelations by means of the market process. The market process, which is actually the means of communication in the economy, is driven by the equilibrium forces.

The equilibrium forces are what allows the grace of God to reach every human. Intervention into the economy disrupts the flow of the grace of God. The lack of understanding about the divine economy theory and the lack of trust in God is the reason the interventionists take action. But, according to the divine economy theory, every act of intervention is an act of injustice!

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Divine Economy Theory Uses Gold As A Tool.

Empirical economists use 'ceteris paribus' as a tool, in an attempt to examine the economy in a specific way and to ponder cause and effect. Apart from the issue of the appropriateness of the empirical method to economics, it is clear that part of scientific exploration is having tools that improve discernment.

In the divine economy theory gold is used as a tool. Gold is very valuable as a tool for economic analysis. It makes the examination of the flows taking place in the economy much clearer. Monumentally, it neutralizes all of the effects of currency exchange rates. It makes the movement of resources in international trade easier to follow and it preserves both the identity of the medium of exchange and its value as a resource.

Gold, as a tool, illuminates the understanding of those striving for a better understanding of economic science in all of these vital areas: trade, exchange rates, economic value, and capital flow. Economists who ignore this tool and rather employ ceteris parabis are choosing fantasy over reality. If you look at the bulk of contemporary economic literature you will see that gold is cast aside. This is a good indication that economic science needs a rebirth.

The use of gold as a tool is actually a rebirth because it was used in the classical liberalism tradition, since at least the sixteenth century. The divine economy theory clears away the old, decrepit practices of contemporary economists and allows the rebirth to occur.

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War/Interventionism vs. Peace/Divine Economy Theory

The stakes are higher than most people care to consider. Since interventionism is a source of corruption it causes conflict. Somewhere, as a result of intervention, there is an outcome that takes on the form of an injustice. As the intervention extends deeper (often in an attempt to correct the injustices generated by earlier intervention) the sense of injustice grows and expands. Directly proportional to the degree of power yielded by the seat of the interventionist is the degree of injustice heaped upon the recipients. This is possibly felt worldwide if the seat of power has worldwide influence. Even if more confined, say to a region or between just two countries, interventionism is guaranteed to cause disunity.

The short of it is that interventionism breeds conflict and is very often, directly or indirectly, the cause of war. These are high stakes to pay for archaic economics. It is not worth the death and suffering. It is not worth the corruption and injustice that continually grows under the deliberate watch of the interventionists.

The divine economy theory clearly demonstrates why interventionism causes conflict and it also addresses the issue of economic methodology. Once the subjectivist methodology of classical liberalism is used, the science of economics can be used to examine all of the various means to see which ones serve mankind with justice and which ones don't.

Peace is the outcome of an economy that follows the principles discovered in the classical liberalism tradition and which now is further advanced by the divine economy theory. Once people feel that they are surrounded by liberty and justice they will not be in conflict.

Emasculating interventionism is a vital step in advancing justice, bringing about peace, eliminating economic ignorance, and laying the foundation for prosperity.

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Divine Economy Theory And World Currencies.

The world is in a shambles. To say it is in a shambles because there is a plethora of currencies is correct; and it is incorrect! There is nothing inherently wrong with a wide diversity of currencies as long as they have real value. That is the crux of the issue.

Yet all these currencies of questionable value do represent a troubled world. Currently the issuing of currency is done for political reasons. What could be more obvious, and more easily understood as a corruption? The issuing of currency is no longer tied to real value. It is part of the posturing done in the name of economic policy, which at best is a corruption known as nationalism. This is a disease, a dis - ease.

Divine economy theory recognizes such intervention as a source of symptoms, symptoms which weaken the ability of the equilibrating power inherent in the economy to align itself. Without knowledge of the divine economy theory the interventionists even react to the symptoms that they created with more intervention which serves to makes things progressively worse.

When the medium of exchange is voluntarily chosen worldwide due to its merits, and then protected from the interventionists, trustworthiness will return to world affairs.

The rich diversity of cultures will begin to recover from monetary hegemony. The historical connection of the culture to its medium of exchange from its earliest days will also enhance the flourishing of culture. If a currency that depicts these traditions emerges this is exciting and interesting and perfectly fine. Since all currencies are defined in terms of the universal medium of exchange which is a commodity that has real value, such as gold, they are universal. Each unit of each of these diverse currencies is simply defined in terms of an amount of gold, as an example. The terms will probably be defined as a unit of weight, like one-tenth of an ounce.

All these currencies are easily interchangeable since they truly represent relative units of the medium of exchange. They are easily interchangeable because trustworthiness will be the hallmark of the world monetary system. The interventionists will be seen as thieves and immediately shunned if they attempt to promulgate their economic ignorance and injustice.

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Divine Economy Theory And Balance of Payments.

It is rather simple to understand balance of payments as long as good economics is used. Bad economics sees effects over only a short period of time and bad economics sees only the effects on some, not all.

To explain balance of payments, think of an individual. In the long run an individual can only exchange with others as it accords with the value of his or her resources. No one will exchange willingly with someone if the exchange has no hope of meeting the mutually agreed upon terms.

At the same time not everything exchanged for comes from one source. Not everyone has a perfect balance of payments with each person since rarely is a person's needs the perfect mirror image of anothers'. The sum total across all trade partners in the long run is balanced, that is, all obligations are met and there is harmony between everyone involved.

Compare this understanding with the economic ignorance in the rhetoric out there. Concern about a trade imbalance with another country is bad economics. All trade with all partners is the only relevant and useful information. Now if there is a widespread and systematic problem which cannot be overcome in the long run then there is a balance of payments problem. And this is only possible if there is intervention.

Just like with the individual the only way there can be a long run imbalance is if there is theft. Someone is extracting resources from someone else without the ability to pay in the long run. This can only happen in a world that uses currencies if the currency used for exchange is overvalued. If by the deliberate act of intervention the currency loses its purchasing power it is known as inflation. Inflation is caused by increasing the money supply without an increase in its base value.

There is a systematic disorder and corruption in the world economy and there are some of these signs that show up in the examination of balance of payments. The cause is intervention. Intervention corrupts the divine economy and hampers human prosperity.

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Divine Economy Theory Is No Longer Fragmented.

As I examine the history of economic thought I am intrigued by the insights of contributors to economic science from the earliest days. Bits and pieces of economic truth come to the surface throughout the timeline of the history of economic thought.

Just as the discoveries made in the classical liberalism tradition appear as statements recorded here and there or as partial statements of economic understanding woven into treatises, so too the divine economy theory has had its fragments scattered throughout the writings of those sagacious individuals who were less than mantic persons.

No longer is the divine economy theory fragmented. That is what I mean when I say that we have entered a new era in economic science. The divine economy theory is now whole. It encompasses the macro and the micro realms of the economy and it - fully - provides an alternative means for economic analysis. The interconnectedness of the divine economy theory is holistically compatible with the spiritual reality of all human beings.

The two most powerful examples of the relevance and completeness of the divine economy theory is the Divine Economy Model © and the Divine Microeconomy Model © which serve as the basis for my first and second books, respectively.

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Divine Economy Theory Q&A #4: Isn't Intervention Natural?

Here is the full question: "How do we avoid what I see as the natural and continuous intervention of humans in the world economy? After all, without humans there wouldn't be an economy as we know it."

I have to say that we have entered into a new day for economics. Up until now there may have been no convincingly logical alternative to "Are we going to sit here and do nothing, watching time pass us by?" It is too bad that it has taken us this long to discover the alternative.

The alternative has always been with us but it never was truly exercised beyond the actions of the individual. From the beginning of time people have resolved to put their trust in God, most of the time with conviction and certitude. It wasn't until now that science could confirm that trust in God is the best means to the desired ends of peace and prosperity.

Although trust in God is the alternative it is scientifically and more specifically called the divine economy theory. The divine economy theory has emerged from the classical liberalism tradition. It has elements of both science and religion because human beings act purposefully along the lines of their reality which can be succinctly described as being created in the image of God.

Without this connection and merging of science and religion, equilibrium forces are impersonal and existentialist. The divine economy theory proves that the economy is always in disequilibrium and is always moving towards equilbrium like a moth is irresitably drawn towards the light. The reason is the same in both science and religion - the search for truth.

The system, human creation, is divine and beyond human comprehension. Without trust in God humans attempt to alter a system that is beyond their comprehension. The result is a corruption like the tainting of a healing process by contact with unclean hands.

We avoid intervention from this point forward because it is now a proven scientific fact that all economic intervention corrupts the prosperity potential of humanity.

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Divine Economy Theory Protects The Environment!

The divine economy theory is based on the foundation of the human reality which is a noble one. Illumined human beings care. It is not something that has to be mandated and enforced by some man-made system.

The fact of the matter is that humans value the present and they are intellectually and spiritually capable of recognizing that there is a future and so they value the future too. Given their basic human rights, with property rights being the tangible expression of a human right in a world that operates as an economy, all persons are then in the process of learning how to respect each other.

Let me ask you a question. If ownership of a piece of property was not penalized by mandatory fees (taxes) levied annually (at least), would there be as many reasons to 'develop' an 'undeveloped' property? This intervention into the economy, which is accepted as normal in these dark and ignorant economic times, is forcing development. As you can see interventionists are no friend of the environment.

In a divine economy all intervention is seen as a cause of corruption. Property rights ensure that people respect each other and ensure that the value of the past, the present, and the future are protected. Those who object to property rights are violating a basic human right and are trying to weaken the divine economy - they are interventionists.

Contemporarily, when enviromental issues are discussed the cause of the problem is never taken back all of the way to its origin. If properly tracked backwards to its source it will be seen that some intervention has occurred that destroyed the property right (which means it violated a human right). Sure it may appear that intervention is now necessary but never will that intervention be to remove the original intervention! This is why the cumulative corruption of interventionism continually worsens the economic condition and this is why the divine economy theory is so powerful and is so needed. It educates people about economics, it purges the corruption of interventionism, and it protects the environment!

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Divine Economy Theory Will Continue To Unfold In Third And Fourth Books.

With all of the daily responsibilities, plus trying to manage the promotion of my first two books, I sometimes do not have the time and energy to write a blog entry (or two - Divine Microeconomy Consulting). Now the time is approaching when I also will begin to write my third book. I plan to have it published in 2007.

The exciting news that I have to share pertains to the content of the third book and the fourth book in the divine economy theory series. If you have read either of my books you will be familiar with the Divine Economy Model ©. Or you can see the model by looking at the September 1st entry in this blog. My next book will explore in detail the divine economy theory as it relates to the 'vertical axis' which is the axis defined by the human spirit and transformation. The fourth book, due to be published in 2008, will explore in detail the divine economy theory as it relates to the 'horizontal axis' which is the axis defined by law and order.

I am continually amazed at how powerful and penetrating the Divine Economy Model © is and I am humbly honored to present it to the world, by whatever means!

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Divine Economy Theory Q&A #2: Isn't Competition A Form Of Intervention?

What a very powerful question! This is difficult to answer in a brief blog entry.

First of all we have to understand competitive entrepreneurship. This is not well understood since it is different from what is presented by contemporary economics (which is afflicted with empiricism).

Competition in the animal world is survival of the fittest, one side loses and the other wins. In the social world of human beings who function by searching for and discovering information competition plays a different role. There is always a striving for improvement but once that occurs information flows in many different forms and in many ways. These improvements eventually reach everyone. An unimpeded, unhampered economy conveys the information most quickly, and importantly, with justice. An economy shackled with interventionism tries to direct information to those favored almost exclusively, which is clearly an injustice.

And now I will address the word "entrepreneurship." It is not some managerial skill acquired after going on to get an MBA! It is the state of being alert. All humans have this potential. In most it is latent and in others it is active. Those who are striving for improvement are on the lookout and if they discover the opportunity to bring about improvement they will act. Often capital is required since capital is the most limiting factor in the economy.

Now to answer the question: Competitive entrepreneurship is a part of the human operating system. Discoveries are sought and information about these discoveries flows because discoveries are fervently being sought in an unhampered economy!

Intervention is when someone assumes that they can comprehend the consequences of their action (across the board) on every person on the planet and over time. Intervention necessarily interferes with the flow of information which means that it also interferes with the competitive search for discoveries that occur naturally in an unhampered economy (since it is a divine institution).

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"Divine Economy Theory Can Answer Your Questions" #1 - What Do You Mean By A Free Banking System?

A free banking system described in the economic literature sets out clearly a viable alternative. After all, economics is the study of the means to attain the ends. If the ends is to advance the civilization, then capital is necessary to move us into the future.

Free banking functions in a manner similar to the selection of a medium of exchange. To understand this we have to look at the history of how indirect exchange (medium of exchange) came into being, that is, how mediums of exchange were selected in the various cultures in the past.

Those commodities that were universally valued and verifiable were chosen. In like manner free banking works by checks and balances. If an entity, a bank, is trustworthy and therefore reputable people will feel confident that their savings are safe in their care. This contractual relationship necessarily defines clearly the uses of the funds. Only those agreed upon to be used as capital can be used in that manner and interest is paid as compensation.

In a free banking system only trustworthy entities will prosper because property rights (the funds are the property of the depositor) are protected under a system of justice.

This free banking system is much more detailed and beautiful than this simple explanation but the point here is that it is a means to an ends. Under the current system of intervention it is simply not permitted. Property in the form of money (the medium of exchange defined as legal tender) is not currently protected by the justice system since the government can change its purchasing power by actions of the central bank without any recourse. If a free banking system was allowed to operate it would quickly be the preferred choice which is why the interventionists outlaw this 'means to an ends.'

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The Divine Economy Model © Is Original And Significant.

Never before has a model been built that combines both the subjectivist methodology and a recognition that the economy is a divine institution. This is what makes the Divine Economy Model © original.

Its significance is due to its content and its timing. No longer is free market economics, often referred to as laissez-faire, merely a preference or an option. It is not simply a rational choice, given the alternatives. The economy is a divine institution which cannot be comprehended by the human mind and which is always corrupted by intervention.

We are at the brink of a new era which is an era of justice and prosperity. What is necessary is the discarding of economic ignorance. Now is the time for humankind to free itself from the shackles of the ego-driven interventionists. Both science and religion validate the same thing - the economy brings about justice and prosperity when it is allowed to function as a divine institution.

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The "Divine Economy Theory Can Answer Your Questions" Series!

I am adding another instructive tool to this blog. I will continue to describe the divine economy theory and I will continue to address contemporary economic issues. Additionally I will answer your specific questions, sort of a compendium of frequently asked questions (FAQ).

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Political Corruption Comes From Interventionism!

Regardless of the type of government, whether it is a monarchy or a democracy, the consequence of interventionism is always political corruption. This is an undeniable and unavoidable consequence of interventionism.

What possibly can be done about it then? Communism and socialism are not even mentioned here since they are, by definition, interventionist. But how can it be that even the forms that uphold property rights in rhetoric are doomed to failure, to corruption?

The answer lies in the definition of the economy that has now entered the economic literature. The new definition of the economy comes from the divine economy theory which uses subjectivism to construct the Divine Economy Model ©. At its center the divine economy theory redefines the equilibrating force of the economy as a power, divine in origin, just as human beings are divine in origin. Being divine it is beyond total comprehension for humans so it can only be corrupted by any inept (human) attempts to direct or control it.

The finite knowledge of humans cannot contain or understand the infinite workings of a divine institution - the institution referred to as the economy. Each and every act of intervention is therefore a corruption and the results show up in the world as an injustice or a series of injustices.

A precursory idea, laissez-faire, suggests that the economy operates better when it is unhampered. However, the fact of the matter is that any and all acts of intervention hamper the economy from fulfilling its purpose of bringing prosperity to all. The divine economy theory trumps laissez-faire. It is now no longer merely a preference but rather it is understood that science and religion are in harmony and that God created the divine institution of the economy as a natural expression of the human reality and as a tool for prosperity and justice.

Statesmanship will replace political corruption when the economy is allowed to operate according to the divine economy theory.

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Microcredit Demonstrates the Beauty of a Free Banking System.

When you examine the concept of microcredit what you find is access to capital on a small scale. What most people identify as a major function of a bank is that banks provide capital. Microcredit is a beautiful example of the potential of a free banking system. Thus it is obvious that a free banking system is most helpful, and a free banking system is easily put into place. The question that will now need to be answered is: How will the interventionists try to prevent this from becoming common knowledge?

An additional merit attributable to a free banking system that provides microcredit is the trustworthiness of the recipients, enhanced by designing in accountability using social contracts. In the economic literature on free banking, a free banking system is self-regulating because in the unhampered market only the banks that are trustworthy in the eyes of the depositors would remain viable. The instant there is any indication of poor ethics the depositors will transfer their funds to a trustworthy competitor.

The microcredit concept adds a second tier of stability to the free banking system. The social contracts protect the assets of the bank by serving to guarantee a trustworthy relationship between the debtor and the creditor.

It is clear then that free banking is a strong and productive means of bringing about prosperity.

Stepping back though we can also see where the problem is. The currency which is used as the medium of exchange has to be worthy of trust. This is where the interventionists fail. They are using their powers of intervention to extract wealth and direct it to the favored ones. Afterwards the debased currency flows to others, but through heavily controlled channels.

Now the challenge becomes clear. Can the interventionists use the influence of the media and of their education system to portray the worldwide system of interventionist banking as better and more viable than a free banking alternative? They do have the resources to influence us.

Those who think clearly and independently will know that the corrupt system will continually intensify its intervention and impede human prosperity while those places where the elements of a divine economy appear will show signs of true prosperity.

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Nobel Laureate Edmund Phelps, Examine the Divine Economy Model ©.

There are several parallel objectives between Edmund Phelps' contributions to macroeconomics and the discoveries uncovered by the Divine Economy Model ©. I am writing this blog commentary to demonstrate the common threads between his work and the newly emerging divine economy theory.

Both use macroeconomic models and both find that there are problems of information flow that exist in the economy. Both of these approaches find that "individual agents have incomplete knowledge about the actions of others."

The first point of contrast that I will mention is the emphasis that Edmund Phelps gives to expectations. To bridge the information gap created by incomplete knowledge he uses a tool of assumption common in empirical analysis, one that assumes that individuals must base their decisions on expectations. This is quite artificial since it tries to replicate the actions that take place in the market without letting the market itself be the testing ground. Empiricism cannot contain nor grasp the market. This limitation is glossed over in this artificial manner.

In the Divine Economy Model © the lessening of the degree of incomplete knowledge is part of the natural process of the market. This market process can be readily examined using deduction and the subjectivist methodology, revealing in clear terms the causes of the impediments to the flow of information. The greatest impediment at this period in history is interventionism.

Another parallel objective between Edmund Phelps' contribution to macroeconomics and the Divine Economy Model © is the understanding that "by foregoing consumption for investment in physical as well as human capital (education and research), today's generation can raise the welfare of future generations."

In the Divine Economy Model © the "physical as well as human capital" is referred to as capital structure, it is a foundational element, and it is identified as the transformation component of the model. Yes, Mr. Phelps it is true that today's generation can raise the welfare of future generations. It is the natural consequence of the transformation that comes from savings and investment.

My problem with the piecemeal construction and analysis of Edmund Phelps' macroeconomic contributions are the incongruencies in one half of his work due to him focusing his attention on inflation and unemployment in the other half of his work. Intervention for the purpose of 'stabilization' aggravates the problem of the flow of information which he himself says is a negative. And this same 'stabilization' intervention causes overconsumption and malinvestment, certainly not raising the welfare of future generations.

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Divine Economy Theory Exposes And Erases Marx and Keynes.

One of the distinguishing features of the divine economy is the absence of the ego-driven interventionists. The divine economy theory proves that intervention into the economy is a corruption. Therefore to transform the economy from its current stricken state to its preordained state, the interventionists need to be rendered impotent.

Divine economy theory proves that there is no authority given to any human to intervene for the simple reason that no mind could foresee all of the consequences. All acts of intervention ultimately create injustices in the world.

The two most well known interventionists are Karl Marx and Lord Keynes. It is no coincidence that each of these individuals were tremendous egotists. Their designs for the world were merely delusions of grandeur that were spurred on by their ego. This spiritual illness of their being consumed by their egos is reflected in their economic views. Theirs is the dishonor of being unquestionably known as interventionists extraordinaire.

We are now entering a new era in economic theory, one which is freed from the shackles of intervention. There is no longer any reason to pay any attention to the fallacious theories of ego-driven interventionists. A great deal of the current economic plight and blight stems directly from adherence to their doctrines.

It is time to erase the names and doctrines of Marx and Keynes from modern economic thought since the expression of their dark natures in 'economic and political literature' caused mankind to trudge through a very dark period in history - one that is full of injustices and corruption.

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Interventionism Often Is "Forced Development."

As I mention in my book, DIVINE ECONOMY And Its Real World Economic Principles, interventionism is an ego-driven corruption of the economy. Most often interventionism is due to ignorance of the divine nature of the economy. This ignorance emboldens the interventionist to try to 'fix' the economy.

With regard to fixing the economy: At best it is naive to think that all of the consequences over time can be foreseen. At worst it is a blatent disregard for any consequences other than the ones faced by a favored group for the immediate future.

"Forced development" is a descriptive term that exposes this sleight-of-hand. Resources are coercively extracted from the whole and channeled towards a particular project which is then held up as 'progress.' It may even appear as progress but almost any project that has forced funding and use of coercively extracted resources will appear to be successful. It is not difficult to see that this 'progress' is ego-driven and it is not difficult to see that this is the first appearance in a whole series of corruptions.

Eminent domain is an example of 'forced development' as is the current hotly debated coal-based power plants issue in Texas.

It should come as no surprise that politicians and their cohorts are the primary advocates of 'forced development.' Concurrently, these are the same ones who operate as interventionists, and who corrupt the economy by their ego-driven ignorance of the divine economy.

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The Divine Economy Theory Will Greatly Serve Mankind.

The divine economy theory does not affiliate itself with any particular religion, it is the ultimate outcome of each divine revelation. The dispensation ushered in by each revelation from God bears fruit, culminating in a divine civilization. The workings within that divine civilization rest upon the divine teachings about the spiritual essence of fellow human beings, and the trust in God.

Since human action has the potential to be guided to be in line with the Will of God, a divine civilization can emerge that operates by using means to attain ends. If the means are evaluated and chosen according to the guidance given for that Dispensation then the economy is a divine economy. Of course the ends chosen are also influenced by the Word of God for that Day of God.

This is where economic science can contribute a great deal. It is independent of any religion yet it can identify the source of value and it can examine the different means to determine which ones serve everyone with justice. This is how the divine economy theory will greatly serve mankind.

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Divine Economy Heals The Addiction To Interventionism.

The following analogy sheds some light on the subject of the contemporary economy.

The objection to stopping intervention is the fear of the consequences. Consider the life of an addict. It is the pain and suffering and the fear of separation that makes an addict lose the self-discipline needed to begin the healing process. If pursued though, not only does the healing process take place within the individual but across all of the social interactions.

This is the same with the divine economy. In its sick and addicted state the immediate horizon of abstention looks painful, with suffering and plenty of negative consequences. Just like with an addict the current level of intervention is no longer sufficient so with each increased dose there is more and more separating and corrupting of the economy further from its natural state. The economy is corrupted and distorted and so are all of the social interactions. Look around and it is easy to see corrupted, distorted social interactions!

Until the addict decides that the loss of one's true self is no longer acceptable the addiction continues. The strength to recover comes from the desire to honor and cherish one's own reality. This realization and discovery is often connected to a spiritual awakening.

At this time in history when the divine economy theory is just emerging there is a general ignorance. My task is to raise the awareness about the divine economy so that it can become a source of strength to counteract all the concerns about the negative consequences of withdrawal from interventionism. The healing process is very exhilarating. And the state of freedom from addiction is natural and optimal. In the case of the economy it is divine!

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Recession Viewed In The Divine Economy Model ©.

The slowly creeping news is that we are approaching a recession. Numbers and talk accompany this worrisome phenomenon.

Since those who deserve the blame portray themselves as the physicians combatting economic woes there is little truth to what they say.

The simple fact is that the economy is a divine institution subject to corruption by the meddling of ego-driven interventionists.

It is now time for this alternative viewpoint to become known. This alternative viewpoint has a name and that name is the 'divine economy theory.' Although it is still in its infancy it can expose and dispose of the fallacious economics currently relied upon.

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The Divine Economy Model ©.

Here is the Divine Economy Model ©. What I want to impress upon you is the 'justice/unity' axis and its identity which is labeled 'Nature and Role of Knowledge."



As knowledge is acquired it stimulates the desire for more knowledge and this process then moves the axis to the right.


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Divine Economy And An Ever-Advancing Civilization.

Soon I will begin using graphics to facilitate the understanding of some of the economic concepts but the use of words to present logic is still very, very powerful and it will remain the main vehicle for the conveyance of meaning.

In DIVINE ECONOMY And Its Real World Economic Principles the idea that the uncorrupted economy would be self-sustaining and in motion in a positive direction, that idea, is presented as an "ever-advancing civilization."

There are many ways to substantiate this. The way I choose now is the use of the 'justice/unity' axis of the Divine Economy Model ©. The axis identity is 'the nature and role of knowledge.' It follows that as long as human beings act like human beings, knowledge necessarily increases and knowledge serves to lead to further increases in knowledge.

If we assume movement to the right is positive (an accretion) then the 'justice/unity' axis continually moves to the right. This represents an ever-advancing civilization.

Intervention sends the 'justice/unity' axis backwards!

The truth of the matter is that it is God's Will that human civilization is ever-advancing! If we stop limiting the divine economy by our feeble-minded human intervention into the economy all of humanity will prosper.

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How Representative Is The Divine Economy Model © ?

Hopefully everyone realizes that models have limits. But so do words! The Divine Economy Model © offers another perspective which enhances the understanding of how the economy works and it enables us to grasp concepts that are somewhat difficult to describe using words alone.

Consider the painter and the painting. Although the painting is likely to stir the emotions and thoughts of its admirer it still represents only a fragment of the vision of the painter. The painter attempts to capture the vision but cannot contain it on a canvas.

Likewise, the Divine Economy Model © exists in a physical, graphical form and it has parts that are defined as dynamic for the sake of expanding its realism but, in no wise, does it come close to the infinite grace of the divine economy.

That said, the Divine Economy Model © is a vast improvement over what else is out there. It is founded upon classical liberalism principles which means that humans are recognized as subjective creatures so it is far superior to the plethora of empirical models. It is also based on the divine nature of the human reality which then launches economics into the future. Who knows what knowledge will unfold as the theory of the divine economy moves us forward?

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Divine Economy Theory Has Classical Liberalism Roots.

Science is always moving forward. Most often this is a subtle process yet sometimes the forward movement is accelerated. It remains to be seen if economic science progresses slowly or rapidly now; now that there is this new avenue for advancement, which I call the 'divine economy theory.'

Regardless of the future, the 'divine economy theory' emerged from and is compatible with classical liberalism. What this means is that the 'divine economy theory' rests upon their common pillars of property, freedom and peace!

From the viewpoint of the 'divine economy theory' as represented by the Divine Economy Model © it is clearly stated that property rights are the mirror images of human rights. As such there is no excuse for any violation of property rights.

Likewise the 'divine economy theory' clearly demonstrates that human intervention into the economy is a corruption. This is a sure guarantee of freedom since it is only under the condition of freedom that the economy can reach its potential.

It follows then that when human rights are protected and when there is freedom that the outcome is peace. The Divine Economy Model © demonstrates this by its axis of justice and unity supporting the nature and role of knowledge.

To continue the metaphor, the roots of the 'divine economy theory ' are classical liberalism. The buds are just beginning to open and soon there will be leaves and flowers. The fruits that will be produced in the future will be sweet and can be described as an ever-advancing civilization.

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Eminent Domain Has No Place In The Divine Economy!

If you or someone you know has felt the oppression of the application of eminent domain it is not just a physical setback. It is much more significant! Floating around are terms like tangible and intangible. These do not address the very essence of property rights which is that property rights are human rights.

Can anyone at any place on earth or can any spokesperson speak frankly the words - without serious reproach from a civilized world - the words that say that violating the human rights of someone is perfectly OK if it helps others to acquire wealth?

Eminent domain laws that enable the violation of property rights are laws that violate human rights. When the lawsuit proceeds through the legal system and the rationale for compensation is ultimately set forth the question that needs to be up front and in the open is this: "Is there a price that can be placed on your human rights?" Followed by: Is the violator of your human rights willing to face "crimes against humanity" charges?

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A Short And Sweet Entry About the Divine Economy!

What is true is that the economy is one whole and that what I have contributed to economic science is the beginning of the scientific literature exploring what I refer to as the 'divine economy theory." This is an embryonic science at this point in the history of mankind but it is organic and connected intimately to the human reality. That is the reason it is viable and that is the reason why it will be fruitful.

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The Divine Economy Model © And The Divine Microeconomy Model ©.

Even though the economy is seamless it still is useful to look from different perspectives in an attempt to understand the economy better. That is the reason there is a tremendous wealth of understanding that has come already and will continue to come from the examination of the Divine Economy Model © and the Divine Microeconomy Model ©.

The natural evolution of these models followed the process of deduction, from general to specific. The Divine Economy Model © was developed first and was published in 2005. The Divine Microeconomy Model © followed shortly afterwards and was published in 2006.

They are linked yet distinct. They are independent in their applications yet they are based on the same foundation of property, freedom and peace.

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Entrepreneurship and the Divine Economy Model ©.

How does latent entrepreneurship match reality and how is it modeled in the Divine Economy Model ©?

Although human beings are seekers they still have lull periods. They may be fatigued, hungry, thirsty, oppressed, burdened, ignorant, self-absorbed, sick, pre-occupied, overwhelmed, unencouraged, as well as other possible afflictive conditions. Keen-sightedness is the precursor of being active and entrepreneurship is the step taken to bring about improvement.

Each person exhibits latent and active entrepreneurship throughout the day and throughout life. This is represented in the Divine Economy Model © by making the model three dimensional. The economic elements of the model are seen as being submerged in the milieu of latent and active entrepreneurship.

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Use the Divine Economy Model © To Prescribe Remedies.

The Divine Economy Model © is not without the power to prescribe remedies for the economic ills and woes confronting mankind. Its foundational elements of property rights, the market, capital structure, and the freedom to act are what bring about prosperity.

The remedy administered removes the acts of intervention which prevent the flow of information and knowledge. It is also essential that property rights are seen as human rights and are protected by the justice system.

The power of equilibrium is far greater than all the intervention combined and so, when intervention is seen properly as an affliction, equilibrium forces will quickly purge the economy and return it to its natural state - that of the divine economy. What is meant by 'divine economy' is a cooperative and advancing civilization that reflects and supports the needs and desires of the people of the world.

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The Heart Will Be Labeled As The "Divine Economy."

Imagine the economy as an organism. The heart will be labeled as the 'divine economy' and the blood which circulates is the 'nature and role of knowledge.' Capital structure is the skeleton. Capital itself is the foodstuff that nourishes.

To continue the analogy: the feet supporting our organism in its movement represents its property rights. Its ability to stay balanced (its own equilibrium) comes from the market. Its awareness of its surroundings comes from its entrepreneurship.

This is not just any organism, it is a human being and so it has spiritual capacity. The will to act and to transform itself and its surroundings in its endless search for its Creator represents and defines the human spirit.

The divine economy is a composite and sum of its parts. In fact it is greater than its parts and it has qualities that are multi-dimensional, unquantifiable. Nevertheless, its nature is like that of its parts, meaning that the inherent divine capacities of each human being contributes to the whole, expressed as the divine economy.

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My book publishing hiatus is over, partially.

I now have my second book, DIVINE MICROECONOMY - A Tapestry of Human Virtues, published as an eBook. I am still trying to get the website going to sell my second book online automatically. Therefore I am still occupied and unable to write daily or even as frequently as I would like.

Also I have started a second blog, Divine Microeconomy Consulting (http://divinemicroeconomy.blogspot.com), to parallel the concepts set forth in my second book.

Capital is a Part of Every Thing in the Economy!

When a tool is used or when a fork is used it is true that we forget that these are capital goods. They represent intermediary goods, goods that facilitate. They are now so well integrated into our lives that they are assumed to be final goods themselves, appearing side-by-side with our other final goods.

The important point that I am making here is that capital is infused into every good that we use or consume. The distinction of being a capital good becomes one of relativity. Some intermediary goods are obviously capital goods since they are early in the production cycle.

Capital is so vital an element in the economy that it is simply inseparable. It is like trying to separate you from your intellect or from your personality or from your soul! This is the premise of the Divine Economy Model ©.

Those who deride capitalism may have a good reason since they do not make the distinction between capital and the corruption that comes from intervention. Corruptions such as corporate and political cronyism exist in a system of intervention. These are the parasites on the capital in the economy. As parasites they are seen closely associated with capital but they are an affliction not an outcome.

Capital exists because people have a vision for the future. Capital is what fulfills that vision. Capital goods are the steps taken in that direction. It is not critical that we recognize a fork as a capital good. What is critical is that we stand tall and boldly counter the biases about capital that are being promulgated in this age of economic ignorance.

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