We all know that the study of Economics needs fixing. Its predictions are rarely accurate and you can hire an economist to give you any answer you want.

We get books with titles “Zombie Economics”, “Sack the Economists and Disband their Departments”, “Confessions of an Economic Hit Man”, “Killing the Host: How Financial Parasites and Debt Bondage destroy the Global Economy”.

Economics is about Finance and the transfer of value.  Finance includes banks, investment houses, real estate, insurance, taxation and most of government. All these industries account for 75% or more of the cost of operating a modern Economy.  Costs increase with every passing day.  The productive sectors of the economy can no longer support the overheads of finance.

Most of these costs are avoidable.  They are avoidable if we demonetise the economy.  We can transfer value without giving money tokens a value.

Monetisation of Value is the problem

We monetise value by creating tokens that take on the value of the asset referred to.  We then exchange the tokens assuming the value of the asset is now with the token. Value is separated from the asset.

The Financial System is a parasite.  Its purpose is to exchange tokens with value as though they were the assets.  It exists as an addendum to the Productive Economy. It is parasitic because it pretends to add value by making the transfer of value more efficient. Instead it consumes value while leaving the Productive Economy host unaware of what is going on.

We do things such as create money markets where we trade these surrogate assets. We don’t need to trade the surrogate assets when we can more easily trade the real assets. Errors and manipulation of tokens are systematic.

Like all successful parasites it tells us to solve the problems it causes by increasing the costs of the financial system. We make laws, we make regulations, we invent redistribution methods, we add to the costs.

The solution

The solution is obvious.  Stop treating money tokens as though they had value. Leave the value with the asset.

The parasitic mechanism comes in the way we give money tokens a value.  We do this by creating debt.  The creation of debt transfers the value of the asset to the money tokens.  We monetise assets.

If we stop doing this the cost of operating the financial system will drop to about 2% of its current cost. We don’t need all the regulations. We don’t need money markets. We can have more efficient redistribution methods. We can remove the need for most taxation and pay governments for services they provide.

We can make this happen by repaying money debt with goods and services produced by assets.  The money tokens we were given have no value because they were not returned. Real goods and services were given.

Evolution of the Financial System

Living systems like an economy change through evolution. They change through mutations of internal processes. To demonetize the transfer of value we find mutations of transfers of value. These mutations don’t get rid of money. Rather they get rid of the value of money tokens.  We put mutations into the real world and we observe which ones work and which ones don’t.  The ones that reduce costs will survive and the others will die.  Low cost loan mutations will replace parasitic loans.

Repaying debt with goods and services is a mutation of the transfer of value.

Evolution of Economics

Economics is about money tokens. If we change the nature of money tokens to have zero value then this changes economics.

Economics will become a true science.  We can run observable experiments.  Such an experiment would be a system like Water Rewards.

The future

The future will be different.  What it is going to look like is something we will find out as the system evolves.  But, we will direct evolution and it will not be wholly random.

One thing that will happen is that evolution will evolve intelligently.   This is because intelligence of the whole will increase. This in turn happens because the system to demonetise finance is the same system that increases intelligence.

One thought on “Parasitic Financial Systems

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s