Productive Speculation Is Attacked By Socialism.

If and when you listen to the half-truths in the media you are constantly being told by the propagandists that capitalism is evil and that speculators are vile. Here is why these are half-truths.

First of all the word ‘capitalism’ is supposed to be describing a free market economy but there is and has not been a free market economy anywhere, anytime. In that regard what is being practiced that is evil is interventionism which is nothing but the political corruption of the economy.

Second, speculation is absolutely necessary for any production to occur. Nobody knows what will be the outcome in the market; some products fail and some succeed, and some products people want more of and some products people want less of. The market conveys that information but only after production is finished and reaches the market. Before production occurs the market response is just a speculation. With no speculation there is no production! In that regard the attack by the socialists on speculation is an attack on production which explains one of the reasons why very few goods and services are available in socialist ‘economies’.

In addition to arousing your curiosity about the greatness of free market economics and about the value of speculation, this information helps you to quickly identify those whose voices are the voices of socialism. If a person attacks the free market or if they attack speculation they are either in need of education or they are socialists trying to spread lies and half-truths.

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How Do We Prepare For The Coming Ideological Change?

What we have to realize is that the equilibrium forces of the economy are infinitely greater than the ephemeral and illusory powers of the ego-driven interventionists.

Our greatest challenge is not to resist the advance of socialism and fascism but to educate people about classical liberalism, about Austrian economics, and about the entrepreneurial spirit inherent in all human beings to seek the truth. This prepares the way for the ideological change that is coming.

The economy is our helper. Its equilibrium forces will wipe away these corrupt ego-driven interventionists with ease. We want to make sure that the free flow of information that occurs in an unhampered market is made easier by an insistent demand for it by the people around the world.

What can we do to stimulate the demand for the freedom to get information about classical liberalism and Austrian economics? Whatever those things are that stimulate the demand, that is what we should be doing!

If so inclined, send me your ideas about what would stimulate the demand for the freedom to learn more about classical liberalism and Austrian economics.

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Definitions of Micro and Macro Economics In The Divine Economy Theory.

One definition of macroeconomics that then emerges from the divine economy theory is as follows: it is a study of those factors and conditions that lead to the long run advancement of the standard of living for everyone on the planet.

One definition of microeconomics that then emerges from the divine economy theory is as follows: it is a study of how individuals discover and react to information in the market as part of their division of labor to produce and then to earn income, so as to meet their personal desires for goods and services.

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What exactly is the "spiritual reality of human beings"?

The spiritual reality of human beings is being created in the image of God.

Humans have the potential to reflect, acquire, and manifest all of the attributes of God (the Names of God, the virtues). The degree is relative whereas God is in all things and in all ways Absolute {in fact God is greater than that since that is an imagination by a finite being about that which is Infinite (in fact God is greater than that since that is an imagination by a finite being about that which is Infinite) and again, (in fact God is greater than that since that is an imagination by a finite being about that which is Infinite) . . . ad infinitum}.

The potential is always towards higher degrees of perfection of reflecting, acquiring, and manifesting all of the attributes of God.

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Earn A Masters Degree In Divine Economy Theory!

How does this new endeavor - offering a Masters Degree program - feel for me?

It feels like a quantum leap; it feels like I am going from words to deeds; it feels like I am finally actively involved in re-educating people around the world (which is what is needed).

As the saying goes 'A picture is worth a thousand words.' Well, I have over 150 diagrams developed so far in pursuit of understanding the divine economy theory. Each of these diagrams constitutes a lesson.

Practically, what this means is that after studying and comprehending these lessons you will be a Master of the Divine Economy Theory!

Begin by contacting me at divineeconomyconsulting@gmail.com and expressing your interest.

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Empirical Economics Is Locked Into ‘Selfishness.’

As the saying goes: You reap what you sow.

Empirical economics has tried to be ‘scientific’ by removing all non-predictable elements. This is perfectly valid for the natural sciences but it is an illusion and an unfortunate sign of a lack of intelligent perception. There is nothing scientific about removing humans from the human sciences!

To stay true to this erroneous methodology (erroneous for the human sciences but not for the natural sciences) the empiricists collect data and then interpret their data. As part of their explanation of the trends they conclude that humans act selfishly. Humans choose what they perceive to be in their best interests.

Selfishness is one way of describing such a pattern but so is subjectivity. The empirical economists cannot acknowledge subjectivism because that undermines their empiricism. They are entrenched, locked into selfishness.

As a result they pin the label ‘selfishness’ on humans and this leads to all kinds of perverse outcomes. For instance, how can anyone imagine that laissez-faire can be good if, when left alone, people will act selfishly. Empiricists come to the conclusion that the government is necessary to keep people from acting in such a degraded state of mind - selfishness!

These perversities that result from empiricism would simply not exist if the proper methodology was used for economics. It is a human science, a social science, and the appropriate methodology is subjectivism. People make choices subjectively. Everyone does it. A person can only make decisions based on knowledge of one’s own self. How could it be otherwise?

Under subjectivism laissez-faire is obviously an expression of freedom - which is conducive to prosperity. This is the economic methodology that treats humans as humans and acknowledges natural law by recognizing that humans are subjective beings.

Economic empiricists sow seeds of false pretenses and reap economies that are rigid and easily subject to corruption. Ironically those who are the source of the corruption are the ego-driven interventionists who are indeed ‘selfish!!!!!’

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Foreword to "MORE THAN LAISSEZ-FAIRE"

by Bettina Bien Greaves

Most high school and college textbooks describe the nation’s economy as a huge agglomeration of goods and services, vast piles of food, clothing, coal mines, factories, computers, agricultural products, kitchen appliances, TVs, automobiles, computers, planes, and so on ad infinitum. But these physical things are not the market economy as such. They are what people produce while working and trading on the market economy.

Bruce Koerber explains that the market economy is not a physical thing; rather it is a process, a human institution. It is at the same time the consequence of human actions and a shaper of human actors, transforming them into cooperative social human beings. The economy is the outgrowth of the purposive actions and choices of men. As such, it is manmade, but it is not purposively planned. As men meet, cooperate and have dealings with one another, markets evolve, as do societies and civilizations.

Koerber shows how the market economy develops. It is a dynamic process. Market participants are ego-driven; they act on the basis of their subjective values. Their subjective values are expressed in prices. Prices furnish knowledge about the wants and needs of other market participants. As traders turned from barter to using a medium of exchange, money, trading became easier. Moreover, money prices furnish market participants with information, knowledge, and the tools for calculation. Thus the market disseminates and coordinates the activities of market participants.

As Koerber explains, all men are driven by the human spirit to try to improve their situation. Individuals can best improve their respective situations when they are free to act. Therefore, the human spirit should be free. The right of individuals to private property must be protected so that individuals will save, accumulate capital and invest. If entrepreneurs are free to look for and to discover opportunities they tend to improve economic productivity. In the process, the free market economy develops economic principles and fosters law, order, justice and harmonious relations among all participants. Thus, the path to economic progress, peace, prosperity and a more advanced civilization is through the free market economy. On the other hand, when outside interventions interfere with the voluntary activities of individuals in the market economy, especially by wars and inflation, they violate property rights, disrupt the market’s harmonious operations, distort prices and production, cause the boom/bust business cycles, and hamper economic progress.

For those who appreciate visual presentations of economic relationships, Koerber’s book is sprinkled throughout with diagrams illustrating the influence on economic production of property rights, capital structure, prices, entrepreneurship, competition, profit and loss, etc.

Koerber’s book explains that the free market economy is guided by voluntary actions. It is “in accord with the will of God.” It leads to greater social cooperation, peace, increased prosperity and a more advanced civilization. It awakens the human spirit to its full potentiality. Koerber calls it the “divine economy.”

Bettina Bien Greaves *
Hickory, North Carolina
February 2008

* Formerly with the Foundation for Economic Education, Irvington-on-Hudson, NY; attended Ludwig von Mises’ NYU graduate seminar in economic theory (1951-1969); compiled a 2-volume annotated bibliography of Mises’ works, published by FEE in 1993 and 1995; and now editing the new editions of Mises’ several works being published by Liberty Fund, Indianapolis, IN. The latest volume in their series is Human Action (2007).

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Food Scarcity or Food Shortage?

Knowing the difference helps us to know what can be done to solve this problem. Everyone who is concerned about what is going on around the world recognizes that there is a problem. Although these two words appear to be synonyms they are not. Economic insight into the difference between these two is very valuable.

Scarcity is the unavoidable condition in this world. We can never have all of our needs and wants satisfied. At the same time it is possible to address scarcity by directing means of production towards satisfying our highest needs and wants. Scarcity is alleviated by production.

A shortage has a different origin. A shortage is the outcome of intervention in the market. Somewhere prices in the market are being interfered with (manipulated). It is the signal that we call prices that is like words in a language. The words are necessary for communication. Without market prices the signals are muddled and the consequence is either a shortage or a surplus.

In a centrally-planned economy the prices are arbitrary and ‘controlled’ rather than market prices. As a result you have a complete breakdown of the economy like what happened in the Soviet Union where there may have been a national toothbrush shortage yet there was a handle surplus in Minsk and a bristle surplus in Pinsk with no means of coordinating. Intervention, price manipulation, is like speaking Russian to someone who understands only Spanish. In the vast complexity of the economy such miscommunication leads to tremendous errors. Everyone suffers when the market economy is rendered ineffective by intervention.

Now we can get to the crisis at hand. The economies around the world are functionally ‘controlled’ economies and so we have a mess on our hands.

The food shortage is caused by interventionism. When prices are set by the central planners and are set below what the market price would be there is less production. Also at that ‘below market price’ the demand for the commodity is greater. Excessive demand combined with constrained production leads to a shortage. The cause is clearly interventionism. The solution is not to then to heed the call for increased control by the central planners! The solution is to recognize that the interventionists are the problem in the first place.

The immediate solution is to stop all intervention in the market so that the language of the market can re-establish communication and coordination.

If there is truly scarcity then production will be channeled towards that end. Indirectly there may exist the appearance of scarcity of foodstuffs since grain supplies are being depleted to produce biofuels. This is not scarcity but a part of the shortage caused by intervention into the market economy by short-sighted and ignorant politicians and those whose privilege they seek. Their intervention, subsidizing ethanol production as an example, is obviously interfering with market prices.

As soon as this intervention stops the resources in the free market will quickly flow towards production to alleviate scarcity. And market prices will assure that there are no shortages or surpluses.

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Divine Economy Theory - The Power of Deduction.

Empirical economists are blinded by and bogged down in minutiae. They are in a state of powerlessness whether they know it or not.

A holistic approach is absolutely necessary since humans all belong to the same species and there are natural laws that describe what they do. They behave subjectively within the spectrum of possibilities, constrained by the natural laws of the human operating system.

A holistic approach cannot start at the physical level nor can it choose the human intellect as its ultimate starting point. Holistically the human being is also a spiritual being. This means that the spiritual reality plus the intellect plus the physical qualities define the human being.

Deduction from only the physical nature of humans yields a different outcome than if one that starts more broadly from the intellect. Likewise, deduction from the higher level of perception, the spiritual, leads to a different discovery.

Backing up to the farthest point known takes us to the source of our creation - our Creator. We cannot go beyond that. Deduction proceeding from that point leads us to certain discoveries but there are no more stones to uncover that make it possible for us to broaden our point of origin.

What is extremely exciting about this origin of deduction for the human sciences is that it becomes fixed like a 'standard.’ Henceforth, the way one proceeds with deduction may vary but the ultimate starting point, the standard, is always the same.

This is why it is a truism to say that science and religion are in harmony.

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A Quote About Divine Economy Theory - Free Will.

“Only the subjective methodology can accommodate free will. Free will is another foundational piece of the divine economy since all of the actors in the economy have free will. Free will is also a foundation of the creation of humankind; it is part of human nature. It manifests itself in the independence of each decision made within the mind of each person — which is subjective valuation. Each decision is unique to the circumstances deemed important by each individual, who are themselves unique and therefore subjective.”

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A Quote About Divine Economy Theory - Capital Consumption.

"If consumer credit is extended in the market artificially - which means that it is unmatched by existing savings - capital is consumed. What is happening is that consumption is in excess of the productive capacity. Productive capacity in the economy is supported by the level of savings and the subsequent capital. The only way to now consume more is to use current savings, which was to serve as the loanable funds for ‘new’ capital and economic growth. This is the equivalent of consuming capital which consequently will cause the economy to regress, the typical consequence of intervention."

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A Quote About Divine Economy Theory - Poles of Unity and Justice in the Model.

"Similarly the divine economy can be more fully understood when the model includes the poles of unity and justice. It is around these two poles that the divine economy revolves. The axis of these poles represents the ‘nature and role of knowledge.’ The implication here — with this axis being centrally located within the model — is that knowledge flows throughout and that it is this free-flowing knowledge that best serves all of the divine economy processes.

This is a key concept in the divine economy theory. It is the nature and role of knowledge that enables the equilibrium forces to maintain balance and harmony. Intervention by those with finite human understanding strikes at the ‘nature and role of knowledge’ axis — with the consequences being a condition of imbalance and disharmony and a corruption of the divine economy."

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A Quote About Divine Economy Theory - Capital is the Most Limiting Factor.

"Most significantly, of all factors in the economy capital is the most limiting. See if you understand why. Ponder: in the here and now — in the present — we cannot live in the future! That is our limitation. The reason capital is the most limiting is because it is what connects the present and the future in the economy within our limitation. It is constrained by uncertainty yet its variation or structure determines the transformation that takes place in the economy.

Since capital is the most limiting factor, the movement or advancement of civilization depends heavily upon the structure of capital. This necessitates, optimally, that the capital structure needs to be a harmonious expression of the market so that it truthfully reflects the will of the people. In the divine economy fully vested human beings find and share knowledge in the market. Part of that knowledge reflects the importance of time which becomes manifest in capital and its relevant structure."

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A Quote About Divine Economy Theory - Order Emerges From Market.

"The market is where individual human action undergoes reconfiguration into a more social entity. This is part of the dynamics between the ‘act’ and the ‘transformation.’ The market is where knowledge flows to and from in a civilization. And it is from this proverbial fountain of knowledge that order emerges."

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A Quote About Divine Economy Theory - The Property Rights Interface.

"Property rights interface closely with human action, the market and the capital structure. Property rights are truly foundational and have a strong connection to law in the divine economy since they anchor the economy to the human being.

In its most basic and primary expression, property rights are human rights. The existence of a human being grants dominion, and its peaceful expansion toward food, clothing and higher attainments all fall within the domain of property rights."

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A Quote About Divine Economy Theory - Overcoming Inefficiencies.

"If the market is in an inefficient condition the solution is to educate people about entrepreneurship not to corrupt the divine economy by imposing arbitrary restrictions through intervention."

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A Quote About Divine Economy Theory - Consumer Sovereignty.

"In a sense all forces are mobilized to answer the command of the king — the consumer. The entrepreneur, by nature, is alert to these opportunities and perceives the signals sent in the market. The motion set in order by the entrepreneur moves resources towards whatever means are needed to satisfy the consumer — the king.

Production of goods and services to satisfy the king — the consumer — necessitates that the producers hire labor and other resources. In that way all of the ‘subjects’ benefit from their service to the ‘king.’

Wherever in the economy the consumers spend more the profits rise and this stimulates economic competition; followed by investment and production. In other words, the pattern of investment and production follows the consumer spending pattern, in obedience to the ‘king.’"

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A Quote - Market Is Not A Product of Human Design.

"Granting that the economy is divine implies the following: that the actors are seen as expressive agents of the will of mankind, that there is no omniscience within the realm of human policy-making that can even minutely compare to the divine expression inherent in the market, and that the market is not a product of human design.

The market is a divine institution that emerges spontaneously from human action. It is a social institution that forms for the sake of production. The market is the time and place where the convergence of all of this useful information transpires and where it is discovered."

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A Quote About Divine Economy Theory - The Highest Potential.

"A moment of reflection is now needed for us to be able to discern what is real and foundational.

As I just mentioned, the economy is a uniquely human institution. Since the human being can dwell in the world of relative perfection or imperfection the potential then exists for the economy to be in one of two states. If the higher nature of humanity is realized then the institution (the economy) that is a tool for the expression of human action will itself be elevated and celestial.

Frankly, it is the divine nature of the human being which is his true reality and therefore it can be deduced that the highest potential of the institution of the economy is divine."

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Divine Economy Theory And Worldwide Prosperity!

Instead of the free flow of information there is blockage. Instead of the grace of God reaching everyone on this planet there are many bottlenecks and there are many diversionary tactics that confiscate the wealth generated by the grace of God.

The blockage and the bottlenecks and the diversionary tactics are all man-made. They are all just the different variations of interventionism exercised by those humans who lust after power and who are ignorant of the sacredness of the economy.

The divine economy theory proves that there is no moral authority for interventionism and it proves that the grace of God will reach everyone quickly and effectively when the economy is unhampered by parasitic interventionists. The economy is a reflection of the human reality and it functions like a language, serving as the means of conveyance of all of the information necessary to satisfy the universal economic reality of ‘People desire things!’

Interference with the organic and automatic and divine nature of the economy, motivated by self-serving or ignorant interventionists, lessens the prosperity potential for everyone, that is, except the ego-driven interventionists. They are like embezzlers draining the wealth from the economic system to enrich themselves.

There are many ways to improve the economy, for example by strengthening private property rights, but the first and foremost step that needs to be taken is to expose the fraudulent practice of intervention and to stop the theft of the interventionists. The divine economy theory is very useful in this regard. It is stronger than the laissez-faire stance or the free market stance because it proves that the economy is a divine institution. Since the economy is a divine institution all human interference or intervention is a corruption. This is the economic truth, pure and simple!

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A Quote About Divine Economy Theory - Socialism Fails!

'The economy is dynamic and composed of trillions of needs and decisions that often change complexion. The basis of knowledge needed for economic calculation comes from the market in the form of relative prices. These prices are relative to all other prices at the current moment.

The freer the market is the quicker the information can flow and the greater the ability is for it to correct errors. Desires, needs, and resources converge in the market and find full expression in the form of relative prices. Economic calculation involves comparing and contrasting and speculating about the relative prices expressed through the market.

Any attempt to calculate economically using fictional non-market values — values arbitrarily assigned by someone removed from the market — ignores the dynamic nature of the knowledge within the market; which is tantamount to denying the human spirit. Use of non-market values is the reason why vertical production in an excessively large firm results in bureaucracy and calculation error.

This is also the reason why socialism fails, since it is an ‘error-based institution.’ What is meant by ‘error-based’ is the fact that the prices used for decision-making are arbitrary and imagined, not derived from the market process. These prices are erroneous and all decisions based on them are error-based.'

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A Quote About Divine Economy Theory - Decentralized!

'Human planners of the economy are hopeless failures and can be more aptly described as oppressors. In the real economy (the divine economy) there is a ‘central planner’ who is all-knowing and all-seeing and perfectly just. It is God.

God is the creator of the economy as a human institution and His design allows the fullest expression of human diversity. In the divine economy there is decentralized planning to the nth degree, where n represents each individual or business entity that is actively interacting within the market process. The economy changes as the human race changes and yields its promised fruits conditionally — depending upon whether the current state of affairs exists as either a hampered or an unhampered market.'

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A Quote About Divine Economy Theory - Willingness To Work.

"If we assume that there is no coercion then the first order of incentive for the human being is to meet one’s own needs. Since it is possible to meet one’s own needs by taking action, that is what is done. What we acquire from our labor we are able to keep, presumably. It can be deduced that this basic property right is necessary and sufficient to make a person willing to work.

A negative corollary is that without the right to receive the fruits of one’s labor there would be an unwillingness to work. Nothing destroys the willingness to work faster than removing the human right to ‘reap what you sow.’"

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A Quote About Divine Economy Theory - The Market.

"The market is a conveyor of information just as is language. The following analogy is useful.

Individually I speak to myself alone or I can more fully use language and speak with others. The full benefits of language as a human endowment come from its social nature. If I happen to speak vulgarly, language as a human institution should not be attacked as being harmful. In fact, the social nature of language empowers it to have a moderating and refining influence on individuals, thereby lessening the occurrence of vulgarity.

The market, likewise, releases the full benefits of the human spirit and all of the associated resources. If someone acts in a crude or frivolous manner it is not the fault of the market. In fact it is the social nature of the market that will tend to moderate and refine individuals, ultimately facilitating the advancement of civilization."

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The Essence of the Divine Economy Theory.

There is a dual reality in this world that exists because that dualism is an aspect of the human reality. God created and creates humans in a manner described as ‘in His Image.’ This is the human reality, either recognized and appreciated - or not. And at the same time humans are social beings. This is part of their reality, it is part of their journey, it is integral to the process of being human.

It turns out that the economy is the social expression of being created ‘in His Image.’ The economy is the process of cooperation in the quest for discovery of one’s reality. This is the essence of the divine economy theory.

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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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If you know of anyone interested in ethics and economics,
or liberty and justice, please send them this link:
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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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If you know of anyone interested in ethics and economics,
or liberty and justice, please send them this link:
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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.

Follow me on Twitter @DivineEconomy

For more information go to my newly renovated website.

If you know of anyone interested in ethics and economics,
or liberty and justice, please send them this link:
http://divineec.ipower.com/2/