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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