Saturday, April 07, 2007

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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