Category: econocaste

economics .. the short version, since the long is wasted on the young

Any Serious Economic Understanding Means Knowing These

Posted on Posted in econocaste

To find yourself in an economy is to find yourself in uncertain thicket. Thickets beyond full, perhaps beyond, real understanding. Perhaps because there is no organic nor atomic basis for the economy. See these notes:

Theory of Value: an axiomatic analysis of economic equilibrium: note (p.28) “… it is assumed that the economy works without the help of a good serving as medium of exchange.” — Debreu

but Herr Docktor knows it is odd to define away money from an analysis of economic value. He offers further self critical awareness to us with this item:

Two important and difficult questions are not answered by the approach taken here: the integration of money in the theory of value.. and the inclusion of indivisible commodites. — page 36, Theory Of Value

Now you know more about the card game, do you feel better about the price of knowledge?

When Debt Matters

Posted on Posted in econocaste, grammar of gimme

The national debt only matters when you don’t have national power.

To the party that is out, it has become a key tactic to complain about debt, to use the household, or business assumption that bills must be paid. Simple arithmetic, that simplifies, that reduces all equations to something like, income must be greater than expense.

If this were the case in real life, real business, then no business would grow. Expense is not debt. And in the case of a country, the United States, this is false arithmetic. The wrong number system, and poor understanding of the power of the world’s common denominator means our debt is not our destruction. Not unless we make it one. If we flagellate ourselves into submission, then, and only then, it is our death. Don’t become your own whipping boy.