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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