Second Edition Slightly Delayed Due To The Ron Paul Candidacy.

I am making good headway on the Second Edition of DIVINE ECONOMY And Its Real World Economic Principles but I will not meet my personal goal of this year's end. I like how everything is falling into place but I am probably a month away from completion.

One unforeseen 'change in the landscape' has been the exciting emergence of Ron Paul as a viable Presidential candidate. I have been a supporter of the statesmanship of Ron Paul ever since I became an Austrian economist in 1985. So I have been paying quite a bit of attention to his campaign and all the creative efforts of his supporters.

In other words, instead of working on my book I have spend considerable time watching Youtube features and writing blog entries in defense of Ron Paul.

Since I will be publishing the Second Edition as an eBook my deadline is flexible. The sooner I publish the sooner I can put together a marketing strategy for my trilogy on the divine economy theory.

Classical Liberalism Reforms During This Transition Period.

We are living in an age that is at the boundary of a new era. There are inadequecies that are becoming more and more problematic and more and more obvious. How can we overcome this crisis? There is one standard that has always lead to an advancement of civilization and that is classical liberalism. As the concepts and principles of classical liberalism are applied to the contemporary inadequacies the problems will be resolved.

Nowhere is this more obvious than in the current political arena in the United States. Ron Paul is a classical liberal and a distinguished statesman for 20 years. When he speaks about the issues he is seen as far distant from the other voices. Before the logic of his advice sinks in, the diametric nature of his solutions causes some to say he is a 'kook.' But once the initial shock abates the logic and truth of his classical liberal solutions resonates. What becomes clear is that all of the problems have come from deviations from the principles of classical liberalism, which in America were embedded in the Constitution.

Another transitional phase of this period for classical liberalism is in economic science. By definition classical liberalism has rejected empiricism and instead it recognizes the subjectivist methodology for the human sciences. However there is one deficiency during this transitionary period that will have to be remedied. The remedy for economic science is the abolition of atheism.

The divine economy theory is an example of classical liberalism in its new form, ready for the new era, a golden era of liberty, peace, and justice. That is where classical liberalism leads!

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Divine Economy Theory Policies.

As you may or may not know I am currently writing the second edition of my first book, Divine Economy And Its Real World Economic Principles. And now is the time to make known to the broad internet readership the policies set forth in the last chapter of the book.

The divine economy theory developed as a deductive process which means that it began at the general level and moved towards the specific. Since Divine Economy And Its Real World Principles was the first book in the series and also the first stage of the divine economy theory it was broad, which in economic jargon means it is representative of a macroeconomic view.

There are eleven macroeconomic policies that are espoused in the divine economy theory. In blog entries to come I will identify each of the eleven policies and describe them in some detail.

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Austrian Economics And The Divine Economy Theory.

Austrian economics is a continuation of the classical liberalism tradition. Within the classical liberalism tradition there was a strong foundation that was built upon natural law. As part of natural law, the characteristics that were unique to humans served as the basis for understanding the human sciences.

The subjective nature of human action requires that the scientific methodology for praxeology be subjectivism. Austrian economics uses the subjectivist methodology and it identifies the condition where the subjective nature of humans thrives, that is, it identifies where prosperity comes from.

The divine economy theory has its roots in classical liberalism also. For instance, Thomas Aquinas was a classical liberal and he also can be considered as a divine economy theorist. The fully constituted divine economy theory, though, is a recent phenomenon. I know since I am a divine economy theorist and the founder of the divine economy theory as set forth in my books.

Likewise the divine economy theory has its roots in Austrian economics since that is where I first discovered the economics of liberty. I never shied away from considering myself an 'Austrian' even though I do not have an Austrian ethnic heritage. I settled into the Austrian economics literature and processed the information in the context of other knowledge that I had. In a very real way I have rekindled the divine economy theory of classical liberalism but this time it is happening within the tradition of Austrian economics.

I discovered Austrian economics in 1985, pondering it deeply for many years and then in 2003 I began to formulate my thoughts; this was part of the maturation process. In 2004 I envisioned the divine economy model which launched my career as an economic author. In 2005 I realized that the whole concept actually constituted a theory and I chose to designate it as the 'divine economy theory.' This organic process that I went through resembles the fruiting of a tree. Germination followed by growth and then maturity and the bearing of fruit.

Interestingly, I listened to Ron Paul speak the other night on the Tonight Show with Jay Leno and Dr. Paul mentioned that he began reading Austrian economics 30 years ago and now he is educating a nation and the world about classical liberalism to an extent never done before, ever! These are the magnificent fruits of his maturation in classical liberalism.

Back to the divine economy theory. It is an equilibrium theory anchored by the human spirit and transformation, and by order and law. It is through entrepreneurial alertness of the role and nature of knowledge that higher forms of justice and unity unfold, engendering an ever-advancing civilization. As far as I can tell it is the basis of the economics of the future.

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Laissez-faire Has A Pure Form And Origin.

If you ponder things one of your discoveries will be that most everything has a pure form and then there are all of the various tainted forms or derivations. For example, consider water. Even drinkable water may not be technically pure but it is pure enough and it is purer than parking lot runoff.

The use of the term laissez-faire sometimes - 'very often' is more precise - is tainted by politics and the meaning becomes murky. This misuse and deliberate power-snatching associated with the term laissez-faire is very evident in the book by Murray Rothbard, The Betrayal of the American Right.

Honoring our ability to independently investigate the truth necessitates a more thorough exploration of the history of economic thought to see the context of laissez-faire during the periods of history when it was discovered. These were different times. Its discovery was a classic cause and effect observation. When the State intervened, the flow (the naturally occurring flow that can best be described as an ever-advancing civilization) was disrupted. Therefore a 'hands off' and a 'do not meddle' concept of economic science referred to as laissez-faire came into being.

There is a pure form of laissez-faire that also can be found in the history of economic thought but it really did not become crystallized until the emergence of the divine economy theory. In fact the divine economy theory is a synonym for the 'pure form of laissez-faire.' According to the divine economy theory all human intervention into the economy is a corruption since the economy is a reflection of the summation of all human action, and all humans are created in the Image of God. Only One Being is Omnipotent enough to know all the actions and all the reactions and that One being is Infinitely Loving, Merciful, and Just.

The pure form of laissez-faire is the divine economy theory and its origin is the creation of humans in the Image of God. The economy is the ways and means for the manifestation and expression of all of the beauty and potentials of humans to become known in this world. Laissez-faire was the term given to the discovery of the inherent power and potency of the economy. Divine economy theory clarifies both the purity and the origin of laissez-faire.

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A New Textbook As An Introduction To Divine Economy Theory.

During the process of preparing the Second Edition of DIVINE ECONOMY And Its Real World Economic Principles I have decided to change the format slightly so that it can be also be used as an introductory textbook. The slight changes in format include: a glossary, a concise index, and suggested exercises.

The book can serve well as an introduction to economics since it puts into context the following economic principles: price theory, marginal utility, imperfect knowledge, profit and loss, economic calculation. prices of higher order goods, disutility of labor, competitive theory, division of labor, medium of exchange, time preference, pure rate of interest, savings, monetary theory, entrepreneurship, risk, disequilibrium, willingness to work, leisure, productivity, comparative advantage, capital goods and capital, capital theory, capital structure spectrum, capital in conceptual time and historical time, subjective valuation, consumer sovereignty, purchasing power of money, contracts, and standard of living.

The book also (and uniquely) serves well as an introduction to divine economy theory since it lays out the Divine Economy Model ©. The Second Edition also incorporates into the divine economy theory the concept of production possibilities frontiers in ways never before done. These not only offer plenty of opportunities for 'suggested exercises' but also shed additional light on the consequences of economic policy.

These format changes that make the Second Edition a useful introductory textbook are subtle and will not distract the reader who is reading it for the content rather than as a student. The versatility and groundbreaking nature of this book should make the Second Edition the go to reference for students and seekers after economic knowledge alike.

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The Difference Between A Politician And A Statesman.

Universally (that is, it is a common characteristic worldwide) there are many differences between what a politician is and does and what a statesman is and does. Not only are there many differences but the differences are very significant.

Why then are most people not disturbed by these differences? The answer: there are no statesmen (actually there is one in the United States - Congressman Ron Paul). It is difficult to perceive differences when there is nothing to contrast against.

The system that creates politicians and which looks a little different in each and every country is interventionism. Interventionism is within the spectrum of socialism and it includes democracies. There is no high ground for democracies over socialism since they are just different types of interventionism and interventionism is the corrupt system that creates and favors politicians.

Politicians are more accurately described as ego-driven interventionists. They have a time horizon (it varies worldwide depending on term limits) to make their mark, whether that mark is to enrich themselves and their constituents or whether that mark is to adorn the world with their grandiose ego-driven schemes. Regardless, this is the corrupt fruit of interventionism.

The difference between the politician and the statesman has to do with the time horizon and who is being served. The statesman views himself or herself as a steward of that region of the world with a view towards perpetuity. The politician intervenes to direct resources in the direction of particular favored ones as quickly as possible.

The fact that interventionism has become so pervasive that there is no noticeable alternative is alarming but not surprising. Interventionism as a system is a one-way road to serfdom. It becomes more pervasive and oppressive the further you go down the road.

The exciting part of this story is that there is still alive the seeds of statesmanship, of good stewardship. Equally exciting is the fact that these seeds are accessible to everyone because of the internet. If the seeds germinate in enough minds and hearts then David can slay Goliath!

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Environmentalism And The Divine Economy Theory - #2.

Let us assume one of two things:

1. We are in a natural warming cycle of the planet Earth, similar to ones that have occurred many times before in the ancient history of our planet, or
2. We are in a warming cycle of the planet primarily caused by excessive human exploitation of the Earth's resources.

Who is the principal beneficiary of the second viewpoint: 'a warming cycle of the planet primarily caused by excessive human exploitation of the Earth's resources?' Look at how the 'problem' is solved to see where the vested interests lie. Unquestionably mandates and regulations are under the control of the interventionists! How convenient!

This intervention at the global scale and at the national scale does not allow for solutions at the local level. First of all if this 'viewpoint' (#2) is not correct then the negative consequences on humans around the globe are imposed in a centralized and bureaucratic manner and intolerate of opposing viewpoints. A more decentralized and localized approach permits the testing of all viewpoints without the large scale consequences.

The interventionists are diametrically opposed to the laws and order of the divine economy theory because all intervention is identified as small-minded and unjust. They cannot imagine a world without their controlling designs.

Even if we ignore the skepticism of over 50% of meteorological scientists (well over 50% are skeptical of man-made global warming) the appropriate solution would be to allow communities to choose their solutions. The communities that choose liberty and well defined property rights will be in harmony with the planet as described by the following appellation: good steward. And these communities will become magnets, attracting attention and leading to emulation.

Of course the challenge of allowing communities to choose liberty and well defined property rights does not only apply to environmental issues but all issues. All of a sudden the house of cards built by the interventionists begins to shake and crumble. Their grip slips and they become exposed as exploiters.

Surely environmentalists love humanity too! Why can you clearly see exploiters of the Earth yet you are blind to the exploiters of humankind? Why are you intolerant of the corruption of pollution while at the same time you nestle up next to the corruption of the ego-driven interventionists?

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Production Possibilities Frontier and the Divine Economy Theory!

Currently I am writing the 'Second Edition' of my first book, 'DIVINE ECONOMY And Its Real World Economic Principles.' In addition to improving the writing style and in addition to more thoroughly describing the real world economic principles as they relate to the Divine Economy Model © I also am adding a new chapter.

The new chapter uses production possibilities frontiers to further demonstrate the power of the divine economy theory and of the Divine Economy Model ©, and it also connects even more tightly the divine economy theory to contemporary economic theory.

One of the reasons this is significant is because, in many respects, there is not much difference between the two. The transition from contemporary economic theory to the divine economy theory is fairly easy once the basis of the divine economy theory is accepted, that is, once the economy is seen as infinitely complex and only comprehensible to the Omnipotent and Omniscient God. Trusting in the grace and mercy and justice of God is the natural next step and then the two theories, contemporary economic theory and divine economy theory, are more similar than different.

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Economic Equations In The Divine Economy Theory! (Part Two)

On June 24, 2007, I presented the first set of equations - to explain the divine economy theory in an encrypted manner.

This time I will show how the divine economy theory differs from the classical liberalism that is often portrayed by contemporary economists and philosophers of the classical liberalism persuasion:

• DE = CL - Ath + TnG

Here is the descriptive counterpart:

• The divine economy is the same as classical liberalism (= CL) except minus atheism (- Ath) and plus it firmly rests upon the trust in God (+ TnG).

I argue that the development of classical liberalism from the the very beginning is also part of the parallel development of the divine economy theory. At some points in history the discovery of a concept or principle was perfectly compatible to both classical liberalism and the divine economy theory and so the history of thought of both simply shared that discovery.

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Environmentalism And The Divine Economy Theory - #1.

Let us assume one of two things:

1. We are in a natural warming cycle of the planet Earth, similar to ones that have occurred many times before in the ancient history of our planet, or
2. We are in a warming cycle of the planet primarily caused by excessive human exploitation of the Earth's resources.

The stance of the 'environmental movement' is the second of these two. Although I am not 100% sure this is correct I do know that the blame is pointed in the wrong direction.

First of all it is naive to think that there are not demagogues who will find ways to benefit by promoting themselves as friends of the environment.

Second, why have the 'environmentalists' swallowed 'hook-line-and-sinker' the propaganda that the government is the friend of the environment? Despite all of the fictitious portrayals of 'champions' (referred to as public servants) and fictitious renderings of historical events it is not difficult to see how ownership is far, far greater an incentive to take care of something than the incentives of 'communism.'

Third, who is responsible for the 'forced development' that is happening all over the world? What happens when governments choose fiat currencies so they can artificially stimulate 'growth' to achieve political goals?

Why are the ego-driven interventionists not identified as the cause of the distortions that lead to excessive human exploitation of the Earth's resources?

Is the environmental movement either:

1. Ignorant of cause and effect - meaning - ignorant of how the economy is being manipulated by the interventionists in such a manner so as to create ecologically unsound consequences?, or
2. A tool of the ego-driven demagogues, or
3. Financed directly or indirectly by the interventionists (ie, government funded research) and thereby beholden to the interventionists. Will the dog bite the hand that feeds it? Shame on you if you call your conclusions scientific!

If there is an ecological and environmental crisis looming it is because of the interventionists and all of the distortions caused by their intervention in the economy. That is the true cause.

If the energy of those involved in the environmental movement is directed towards stopping intervention then results will come quickly and the ethics of their efforts will ring true.

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Divine Economy Theory Is The Start Of An Ideological Shift.

There are times when small incremental changes contribute to the advancement of science. In fact, most of the time that is how it happens. Every once in a while the change is more weighty.

One analogy to ponder is the gradual advancement of each day, with the Sun changing positions as the day progresses. This gradual change during the day is not comparable to the dawn of the day, where darkness is changed to light!

The small cumulative advancements in science are noble and important but the magnitude of the change is not so great as to cause an ideological shift. Just like the dawn marks the beginning of a whole new sequence of changes, an epoch making discovery brings about an ideological shift.

The divine economy theory is that revolutionary! It is built on the solid foundation of classical liberalism but it takes economic science into the hitherto uncharted realms of the discipline.

I realize that these assertions are bold but the body of work is substantial and readily available for your investigation. Please feel welcome to correspond with me about any questions or comments that you might have.

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Prosperity In The Divine Economy Theory - First Perspective!

For those of you not familiar with the Model of the Divine Economy © I refer you to this specific blog entry. Notice the center and its designation and notice the circle of text around the center.

The text encircling the center is 'Latent and Active Entrepreneurship.' What is important is to know what I mean by entrepreneurship in the divine economy theory. It is alertness. Sure - entrepreneurship is an economic concept but it is a concept that describes the human reality. Humans are seekers by nature!

As such the concept of entrepreneurship is greater than a narrow definition given in contemporary economics. It is the human potential of alertness. Sometimes it is obviously economic like when it is applied to goods and services. Yet it is always a part of the human operating system. If it is not being exercised it is simply latent rather than absent.

Now, return to the vicinity of the circle of latent and active entrepreneurship in the model. It is in intimate proximity with the center - the force of equilibrium in the economy - that is, the divine economy.

The thoughts of inspiration, of invention, and of discovery come in moments of contemplation or meditation and these are basically the act of capturing 'things' from the invisible world and bringing them into the visible world.

Manifesting these 'gifts' in the material world as new ideas or new techniques is the source of prosperity from that moment forward.

It does not come from any other source. That is why intervention is harmful to the economy. Intervention is like adding layers and layers of veils between the alert entrepreneurs and the source of prosperity.

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Trustworthiness And Divine Economy Theory!

It is easy to see how far the economy has been diverted from its course when we look at trustworthiness as an indicator. Most people reading up to this point have in their minds the culprit. Most people have swallowed hook, line and sinker the 'propaganda' of government-funded education. Contrary to what most think the source of the problem is not the market forces nor is it the entrepreneurs or the capitalists!

All of these agents of the economy depend on the operation of trustworthiness in the business that they bring to all of us. If there is a hint of untrustworthiness a new loop will form that excludes the untrustworthy entity. So it is and so it must be. Caution is the watchword since as the saying goes: one bad apple can spoil the bushel! This is how the world of commerce works, that is, if it is not perverted by interventionism.

And so we come to the issue of perversion and its source. There is no moral authority for intervention in the economy. The government, when it intervenes, creates two classes of people: 1). the political class and its agents, and 2). those who are its victims. I use the word victim because wealth acquired by political means (confiscatory) is either by parasitism or predation.

The politicians act in a untrustworthy manner because they make promises that they cannot fulfill without coercion or theft. Never do they speak about how they will use their own personal resources to accomplish their proclamations. Instead they make promises that confiscate the wealth of the victim class.

And since intervention creates two classes, the powerful political class then creates an education system that falsely accuses the victim class. This is another untrustworthy act by the interventionists.

The interventionists portray our friend as our enemy and our enemy as our friend!

The divine economy theory explodes this fallacy. It raises trustworthiness to its rightful place and makes outcasts out of those who act dishonorably and immorally. It annihilates the class system created by the politicians (interventionists) and sets the stage for the decency of the righteousness of commerce to emerge; away from the perverse incentives created by the interventionists.

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Economics And Ethics: A Divine Economy Theory Perspective.

Can it be that they are twins? If so they must come from the same origin.

Indeed, both economics and ethics can be traced back to the origin of value. And the origin of value is one of the great discoveries of the divine economy theory.

All things, tangible and intangible, have value because they inherently possess an attribute that attracts the hearts and minds of human beings. Human beings are attracted to those qualities that are manifestations of its own source - the Creator, God.

So it is that the virtues basis of ethics and the names and the attributes of God inherent in economic goods (which are subjectively recognized and valued) are the same, like identical twins!

For a parallel perspective go to Divine Economy Ethics.

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Economic Equations In The Divine Economy Theory! (Part One)

What is the first and most basic equation? PR=HR, where PR represents property rights and HR represents human rights. This equation is equally as potent a tool when its mirror image is viewed: HR=PR. What can be stated with certainty from these equations is that the economy exists only because human beings exist!

Another equation that lays the foundation for the divine economy theory is DE=HS+T+L+O, where DE represents the divine economy; HS represents the human spirit; T represents transformation; L represents law; and O represents order.

Blog entries in the future will continue to expound upon the equations and formula that describe the concepts in the divine economy theory.

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Divine Economy Theory Is A Necessary Ideological Shift!

Metaphorically speaking, if you are stuck in the mud you need to shift into a gear that can take you out of the quagmire! Who among you can look at the economic conditions in the world today and not see the appropriateness of this analogy of being stuck in the mud or being in a quagmire?

The shift that is necessary is an ideological one. The shift that is necessary is one that recognizes the full potential of human beings. Ideologically the shift is away from atheism and away from the errors of interpretation that have been thrust upon humanity in the past.

No one is saying that this is an easy task. It cannot and will not be done without there being a reason.

And so we come to the first hurdle - reason. If you are unaware of the basis of the divine economy theory then you cannot exercise your reasoning powers to examine the divine economy theory.

What are the reasons for not investigating? Scientific and academic orthodoxy! Partisan politics! Prejudice and fear! Other reasons!

One of the characteristics of an ideological shift is the courage of those involved. If it takes courage to overcome the above given reasons for not investigating, and if you can muster enough courage to investigate, then you may decide to courageously work towards bringing about the ideological shift needed for justice and human prosperity.

The challenging question is: Is there a need for an ideological shift and does the divine economy theory fulfill that need?

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Access to the Divine Economy Theory.

This blog entry will be useful in facilitating access to the divine economy theory. Each of the specific sites is listed, so a simple click will get you to where you want to go!

Divine Economy Theory

• Book - http://www.divineeconomyconsulting.com/page2.html
• Blog - http://divineeconomyconsulting.blogspot.com/

Divine Economy Model ©

• http://divineeconomyconsulting.blogspot.com/2006/09/divine-economy-model.html#links

Divine Microeconomy Theory

• Book - http://www.divineeconomyconsulting.com/page4.html
• Blog - http://divinemicroeconomyconsulting.blogspot.com/

Divine Microeconomy Model ©

• http://www.smartdraw.com/net/folders/B83D3A86C26D76DF/119115.gif

Ethics of the Divine Economy

• Book - http://www.divineeconomyconsulting.com/page6.html
• Blog - http://divineeconomyethics.blogspot.com/

Model of the Ethics of the Divine Economy ©

• http://www.smartdraw.com/net/folders/B83D3A86C26D76DF/119116.gif

Divine Economy Ethics And Intervention.

When I introduced the Divine Economy Model © in 2005 in my first book, DIVINE ECONOMY And Its Real World Economic Principles, I knew there was great depth in the model and great depth in the theory behind the model. Very evident in the model was the absence of an economic role for government.

Another way of saying the same thing is: in the divine economy theory all intervention is external and a source of corruption!

Now the divine economy theory has developed even further - it now encompasses ethics - since both economics and ethics are products of human action and human thought. This development is quite insightful and it adds even more power to the argument that there is no moral authority justifying intervention into the economy.

Increasingly it will become more and more difficult for the interventionists to make their claims that they can touch the economy and not do harm! Increasingly those who have aspirations to be interventionists will be faced with the choice of either being seen as untrustworthy or as economic ignoramuses.

In a very real way there are equilibrium forces always at play in the dynamic economy. Once knowledge and truth become evident (and it has in the divine economy theory) the invisible force of equilibrium will swing the pendulum back with increasing resistence to the errors of those with corrupt intentions, negating the falsity and perversity of these dark days of economic ignorance (intervention).

As the momentum changes the interventionists will be easily identified and increasingly shunned. And the diseased conditions brought about by intervention will be ameliorated by the equilibrium forces. This is all a part of the process.

The process I am speaking of is the blending of the means and the ends. As implied in the divine economy theory the means is the divine economy and the ends is the divine economy!

The scientific merging of economics and ethics as delineated in ETHICS of the Divine Economy enables and proves this new realization.

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Divine Economy Theory Advances!

As the theory of the divine economy unfolded it became increasingly evident that the constructs of contemporary economics were rigid, and frankly, obsolete! As such they were more like barriers than constructs.

The power of science (not 'science' that merely upholds tradition) is to break through barriers and to extend into the unknown - armed with the tool of scientific methodology - unlocking secrets, opening doors, and discovering new aspects of reality.

That is why economic science has advanced in recent years. First the concept of the divine economy theory crystalized in the Divine Economy Model ©. Next the theory of the divine economy advanced into the realm of individual action and was graphically delineated by the Divine Microeconomy Model ©.

Now the limits of economic science that are boxed in by tradition and corrupted by ego-driven interventionists are shattered! That is what is done in the new book, ETHICS of the Divine Economy. The Model of the Ethics of the Divine Economy © serves as a foundation and it brings together the history of human advancement and the ability to recognize cause and effect.

So it is true that the theory of the divine economy has advanced but this is just the beginning. It is embryonic. Advancement will know no bounds for a very long time.

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Divine Economy Theory Implies Ethics.

The difference between divine economy theory and contemporary economic theory is clear in a number of critical ways. These differences are not reconcilable and so contemporary economic theory needs to be discarded since its irrelevance and corruptability has been exposed.

Contemporary economics applies moral relativism, at best, when confronted with the issue of ethics. Whereas divine economy theory traces its ethical basis all the way back to Supreme Ethicists and unequivocally declares that economics and ethics are inseparable.

Because contemporary economics separates ethics from economics and because moral relativism is its firmest foundation there is nothing in place to protect it from corruption. To give one example, there is no moral outcry among economists when money is taken from people and given to others. It is done as a distribution and those who make those decisions are protected by the cloak of moral relativism.

The divine economy theory makes no exception for any act of theft. Taking the property (including income) of someone else is theft and if it is done by the State it is still an act of crime. In fact in the divine economy theory it is the State that is identified as the chief instigator of theft.

Since our desire is to live peacefully without the baneful effects of corruption we have to rely on ethical teachings that are universal and attributed to the Supreme Ethicists Who were sent to guide humanity. Thank God, divine economy theory includes and is derived from such an ethical foundation.

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Late Scholastics Provided The Divine Economy Theory Radicle.

Think of the difference between a seed and its radicle, its newly emerging root. If the seed is viable and its germination process is activated the radicle becomes critical to its survival.

So it was with classical liberalism and the divine economy theory and, as it turns out, the ethics of the divine economy theory.

In our metaphor of the seed radicle, the seed can be considered Aristotelean and the germination process can be considered Thomist. It was then the late Scholastics who were like the radicle which anchored the theory to the real world and made it able to withstand the storms. The storms were and are all the forces associated with incorrect economic methodologies and the corrupted motives of the ego-driven interventionists.

Now is the time of the beginning of maturation and the resulting fruit will be the divine economy theory. The early stages of fruit development are now in process. You are reading about these early stages when you read my blogs or my books.

As a horticulturist, and an economist in the classical liberalism tradition I will cultivate the fruit - the divine economy theory - and strive to make it as sweet and nutritious and pest-free as possible. In the future other divine economy theorists will continue this service and the result will be prosperity and wealth for everyone.

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Divine Economy Theory Eradicates Price Setting.

In a dynamic world it is obviously absurd to impose something that is static. This is what the ego-driven interventionists do and they use whatever credentials they have to justify their acts.

Imagine someone declaring that a certain price is the one that is to be accepted by everyone. Immediately they would face the query: 'Who do you think you are?' Those totalitarian systems that tried to operate in such an arbitrary manner were oppressive and corrupt and crumbled immediately, once the power to oppress weakened.

No one has the right or the authority or the knowledge to set a price. Prices emerge from the market process.

Now consider the institutionalized monstrosity of the central bank. It is focused on setting the price for loanable funds. To achieve this goal - price setting the interest rate - it uses whatever means it can. It doesn't matter if the 'ivory tower' price is merely a guess or that it represents imposing something static on a dynamic world. Despite this error and this injustice the institutionalized monstrosity proceeds.

To summarize the consequences: manipulating the interest rate - by intervention - as a static and known price in a dynamic world; leads to theft of private property, and to overconsumption, and to malinvestment.

It is wholly driven by the egos of the economic elite and the political elite. Elite is the word chosen to describe those with connections to the corrupt system. Economically ignorant is another and more descriptive way to classify the ego-driven interventionists.

Divine economy theory proves that all intervention into the economy is ego-driven and is to be shunned. In a divine economy all prices are dynamic and clearly and efficiently conveyed through the market process. Since the market process includes everyone on the planet it is relatively just and always becoming more just, in sharp contrast to the corruption of interventionism.

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Divine Economy Theory Labels Inflation As Embezzlement.

First let's look at the definition of embezzlement: 1. misuse of entrusted money or property; 2. to take for personal use money or property that has been given on trust by others, without their knowledge or permission. If you know what truly causes inflation you will see immediately how well this definition applies.

When money is used the assumption is that it has the value of its denomination. All over the world governments have taken over their respective currencies and redefined them . Initially all money was defined in terms of a certain weight of gold or silver. Eventually each of the various governments declared some fiat currency as their legal tender.

At that point it is the government that is wholly responsible for the maintenance of the value. By law no one else is responsible. If there is a misuse of the monetary unit that takes away its value we know exactly who is to blame - the entity that is supposed to safeguard the legal tender.

In a divine economy it is the market process that safeguards the medium of exchange and so there is no need for legal tender declarations. In a hampered economy the intervening entity is wholly responsible for protecting its declared currency unit.

We all know that to simply print money and release it to others is called counterfeiting. This is unlawful because it is just like stealing. Instead of paying for a good with money received from a productive activity, counterfeiting is printing money and taking goods and services in exchange for something that is worthless.

By definition inflation is embezzlement. Property - goods and services produced - are taken in exchange for counterfeited money that has been given to others, without their knowledge or permission.

What we see happening in the corrupted economy is counterfeiting and embezzlement. Can an economy that runs like this be considered as anything other than corrupt?

In a divine economy there is no justification for any interference from the ego-driven interventionists. In the time of transition to the divine economy the interventionists will be sought after and punished for their criminal acts of counterfeiting and embezzlement. Then, through education, the divine economy theory will become common knowledge. Then at last, the economy will be freed from the ego-driven interventions.

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Divine Economy Theory Examines Validity.

The criteria used in religion to recognize truth from falsehood is to examine the fruits. 'Know them by their fruits' is a metaphorical way of stating that reason will be useful in determining what is valid and what is invalid.

I do not see anyone objecting to this approach. It is a valid approach whether it is used to examine religion or anything else. I will use it to examine the use of empiricism in the social sciences. I will only do a cursory examination here since I am in the middle of writing my third book. My time for blogging is minimal.

Empiricism cannot allow humans to make decisions subjectively nor can it allow values to be ordinal. Neither of these fit into the empirical models.

Can it be considered a good fruit if the methodology changes real things into imaginary things? No.

Therefore I declare that trying to apply empiricism to the human sciences fits in the category of falsehood.

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The Fruits of the Divine Economy Theory - #1

This is a new series that I will occasionally return to with examples of solid contributions to the advancement of human understanding.

The first fruit has to do with the soundness of its roots. The same concepts that are now in a refined form - as the divine economy theory - existed more than a thousand years ago. The form that existed in the past had a tightly interwoven fabric of natural law, ethics, religion, logic and philosophy. These were all a part of science.

Divine economy theory brings all of these back together since it is impossible to separate them and still be - realistically - trying to understand the human reality. This harmony of science and religion is one of the fruits of the divine economy theory.

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An Economics Definition Challenge! Try your definition.

Who can give the simplest definition of the economy (and then also give a few explanatory lines)? Can anyone define the economy in fewer than three words? Can anyone define the economy in three words other than these:

People desire things!

How complete is this definition? At the basic level it identifies that the economy is a human institution (people) which serves to bring together demand (desire) and supply (things). In other words this definition encompasses human action, demand, and supply.

How does it fit with the definition of the divine economy? People are human beings created 'in His Image' and they have both material and ideal needs. The things that supply that need can be material or ideal.

According to the divine economy theory the economy is both a human institution and a divine institution. Human advancement at this point in human history depends on the degree of the transition of thought (to the divine economy theory) and of practice to this newly expounded upon reality - the divine economy.

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Divine Economy Theory Is Aristotelian, Thomist, Yet New!

What this blog title indicates is that there is a long history associated with the divine economy theory. It appeared early in the thoughts of the 'modern' human being, although in bits and pieces, and it endured the test of time.

There have been periods of revision and also of waning but always it makes its way back to the top. The growing interest in subjectivism, classical liberalism, and praxeology is bringing the divine economy theory back to the surface.

This time, however, it is not fragmented. The divine economy theory is whole and it is unfolding rapidly.

Divine economy theory stems from the Aristotelian natural law and it validates the Thomist belief in the influence of God on the process of human civilization. Once again, similar to the Late Scholastic period, the pieces are in place for civilization to advance. But this time the interfering forces are disintegrating while the forces that foster the dawning of a new civilization are emerging.

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Divine Economy Theory And Poor Nations And Human Rights.

Regardless of how oppressive the government, there is only one way to begin to prosper individually and as a nation. Property rights have to be firmly established and protected.

The oppressive nature of government in these poor nations has to be offset by the wise ones who understand that property rights are human rights. The issue is not an ideological one, it is much more basic. Efforts need to be made to establish some system of justice that protects property rights. The human rights that everyone deserves start as a secure and binding law that makes no exception in its application. If property rights can be skirted in any way by the government then there is nothing, no other law, able to protect human rights.

Talk among yourselves and form an association that consults about a strategy. Find a way to protect your property from the local government officials who lust for your wealth. Find a way to generate peer pressure on the local government officials so they refrain from their confiscatory behavior. As soon as that hurdle is accomplished - it may take several attempts in various places and over a length of time - then develop an operative property right law for the association.

The property right law needs to be simple and clear so there can be no exceptions and it needs to be declared as a human right. This human rights legislation by your association then needs to be sent to as many international human rights forums as possible.

The prosperity that will come within this association needs to be put into capital but the kind of capital depends on how oppressive the government is. If at any time there is a suspicion that the government is going to act coercively, as much as possible commit yourselves to actions that lead to the advancement of human capital within the association. Every action taken that builds on these property rights needs to be thoroughly documented and sent to as many international human rights forums as possible.

Each of these associations needs to find ways to convey this plan of action to additional surrounding areas. Family ties or friendly ties in other locations are good possibilities. Courage and a strong sense of justice are characteristics that will lead to success.

Who wants their human rights violated? No one does! We need to educate ourselves and others that property rights are human rights and that protecting property rights is the only way to guarantee the protection of human rights.

Human rights protection internationally will pressure oppressive nations, from all directions, so first establish your property rights and then make them known.

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Divine Economy Theory Defines the Gold Standard.

The only reason there is confusion about the gold standard is because the divine economy has been corrupted by interventionism.

Over the entire span of human evolution alertness to the beneficial outcomes of cooperation lead to the adoption of mediums of exchange. Also over this span of time certain goods were more universally valued. Gold and silver for centuries and millennia served as the mediums of exchange, predominantly.

This happened naturally as an expression of human aspirations and cooperation. Even though humans did not know about economics or equilibrating tendencies, by simply acting according to their inherent nature humans chose gold and silver to serve as great means of facilitation, facilitating prosperity. Although in a relatively primitive state, the divine economy was operating unhampered and the result was a parallel evolution of economic means and civilization.

Then corruption entered in. Simply described, the first ego-driven interventionist decided to debase the stock of currency to illicitly enrich himself. This type of intervention was repeated over and over by various ego-driven interventionists and we began to see civilization go in a different direction. Prosperity weakened as the economy became corrupted and specifically redirected so that it no longer operated as a natural process.

Those who speak around the gold standard in an abstruse manner or those who ignore the gold standard are definitely a part of this system of exploitation. They deny that the economy is a divine institution, expressive of human will and action. They claim that they know what is best for humanity - a fallacious claim - yet they are the ones debasing the stock of currency. They oppose the gold standard because it is the most powerful restriction to their ego-driven aspirations.

The gold standard is simply stated: gold is the commodity most universally accepted and recognized as a medium of exchange. Gold is what was chosen by humanity before the economy was corrupted by the ego-driven interventionists. Gold is not only a very, very good medium of exchange it is also a remedy. It has the tremendous ameliorative ability to purge corruption from the economy. A gold standard halts a great deal of the corruption caused by the ego-driven interventionists. This is why the interventionists seek to minimalize the gold standard.

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Divine Economy Theory Redefines Normal!

If you are driving down the road towards a destination and you discover that you are going the wrong way you have three choices: to continue going the wrong way, to stop and give up all hope and desire, or to turn around and find your way. I propose that continuing to go the wrong way is not normal nor is stopping and giving up all hope normal! What is normal is to turn around and find your way.

As the sciences developed and corruption crept into religion there was a very clear need to proceed scientifically in a very focused manner. Advancements in science stimulated further scientific advancements leading to the impression that science and religion were separate and mostly incompatible.

Economic science followed this same road despite the fact that many of the greatest discoveries early in economic history came from contemplation about human action which had been elucidated upon in Scripture. This road of scientific pursuit lead to many specialized approaches but what they all had in common was the fading into obscurity of the spiritual reality of human beings since religion and science were seen as separate. It should be obvious to all that removal or denial of the spiritual reality of human beings makes any of the sciences that study human beings imaginary. Such false and unreal premises render these 'scientific' approaches invalid or at least significantly invalid.

To continue down this road of scientific idle fancy is not normal!

A normal behavior is to turn around with the intention to find the way. The divine economy theory is the direction to take since it uses the subjectivist methodology of classical liberalism and since it gives full glory to the human reality.

It is normal to use science to push understanding to its outer boundaries rather than to construct artificial boundaries! Divine economy theory is redefining normal by reaching into the realm of purposeful human action by spiritual beings.

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