Friday, December 08, 2006

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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