tag:blogger.com,1999:blog-2197051945822486684.post9183589836633401629..comments2024-03-28T09:26:25.931+11:00Comments on Thinking Out Aloud: Natural money bunkumLorenzohttp://www.blogger.com/profile/00305933404442191098noreply@blogger.comBlogger4125tag:blogger.com,1999:blog-2197051945822486684.post-29014358688008919322011-04-17T22:31:46.531+10:002011-04-17T22:31:46.531+10:00The type of problem we have with the financial sys...The type of problem we have with the financial system is that interest brings risk into the financial system while the risk should be taken by the provider of capital.<br /><br />Now you can start a hedge fund, finance it 99% with a loan if you are prepared to pay a high interest rate. If you blow things up then the financial system is at risk.<br /><br />I am not going to argue to much. The experiment I am preparing will prove whether or not I am right. Whatever argument you or I may have, it changes nothing. I am right or I am wrong. In 18 months we probably will know it.bart klein ikinkhttp://www.naturalmoney.orgnoreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-46839065169080899442011-04-17T12:53:05.233+10:002011-04-17T12:53:05.233+10:00Actually, mainstream economic theory is quite usef...Actually, mainstream economic theory is quite useful in understanding the economic system, as long as you are aware it is a work in progress. <br /><br />It is impossible to abolish risk, because one cannot know what is not yet knowable. Systems design is a poor basis from which to base understanding of the economic system (which itself is a massive system-of-systems), precisely because it entails a form of knowledge closure and information certainty that is far from how economic reality is.Lorenzohttps://www.blogger.com/profile/00305933404442191098noreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-85421744324883809012011-04-16T23:37:15.880+10:002011-04-16T23:37:15.880+10:00About risk.
You must get risk out of the financia...About risk.<br /><br />You must get risk out of the financial system. The public should not be punished for failures of individuals to correctly assess risk. Now those individuals must be bailed out or otherwise the system collapses.<br /><br />What can you do. If you eliminate interest, you eliminate risk in the financial system. This means that many debt levels of corporations and people will be lower.<br /><br />Many types of finance now available will not be possible with natural money. World trade and multinationals will collapse! You are right about that. But it WILL HAPPEN because Natural Money is MORE EFFICIENT.<br /><br />Local production and consumption will be more efficient because of the energy constraint we are about to face. Labour will replace energy consuming production. Unemployment will be gone.bart klein ikinkhttp://www.naturalmoney.orgnoreply@blogger.comtag:blogger.com,1999:blog-2197051945822486684.post-7645266636394782392011-04-16T23:08:24.227+10:002011-04-16T23:08:24.227+10:00I am the writer of Naturalmoney.org and I am a sys...I am the writer of Naturalmoney.org and I am a systems designer and not a historian or an economist. It is true that economic theory is worthless in understanding the system.<br /><br />My prime angle is systemic efficiency and systemic failures. History and economic theory are political sciences. The efficiency and infallability of the Natural Money system is best explainable to system engineers.<br /><br />By 2012 I will have a computer program that can support the concept. If I am right, the current financial system is finished.bart klein ikinkhttp://www.naturalmoney.orgnoreply@blogger.com