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April 25, 2018 | Economics – Mostly A Study Within Metaphysics!

Donald B. Swenson: Born January 24, 1943, Roseau, Minnesota. Graduated H.S. 1961, Moorhead High, Minnesota. Graduated College 1968, Moorhead State University, Minnesota. Designated member of Appraisal Institute (MAI), 1974. Employed with Western Life Insurance Company, 1968 – 71; Iowa Securities Company, 1971 – 73; American Appraisal Company, 1974 – 81. Part-time teacher/valuation consultant/bartender, 1979 – 2008 (taught workshops at Waukesha County Technical Institute, Wi. and Madison Area Technical College, Wi.). Retired 2008 (part time teacher/blogger), AZ. Self educated economist/philosopher/theologian:

Science deals with that which is material. The core concept in science is called ‘matter’. Economics, however, deals mostly with social relationships, exchange, and select metaphysical ideas. The concept of ‘value’ is the core metaphysical concept within economics. Then the concept of ‘money’ develops to serve as a proxy for ‘value’. Then trade and exchange develops so that prices can be established. All these social relationships are mostly associated with our thinking mind. This is where these select metaphysical issues develop.


The idea of giving people private property so they can produce products (goods) is the area where science plays a primary role. Goods are material and composed of matter. Goods are representative of the wealth which emerges from the land. But after I produce my good/product, I must then deal with these concepts called ‘valuation’ and ‘exchange’. What is the ‘value’ of my good/product and this creates a need for thinking and negotiation. The human mind plays a huge role in economics and the ideas of the mind deal with the metaphysical realm of reality. Metaphysics is different from material science. Economics deals with both science and metaphysics.


So economics is much more than just production and distribution of products. Trade, negotiation, valuation, price discovery, quality assessment, and scarcity play a huge role within economics. To facilitate trade and promote rational thinking within economics we use math, numbers, and accounting (all metaphysical ideas). Math allows us to price goods so that logic prevails in the marketplace. Prices are key to exchange and to marketing products for human consumption. Prices and value are inter-related. Real price discovery depends on having sound money for exchange.


Today, the logic within economics has been broken as our proxy for ‘value’ (money) has become unsound. Unsound money creates huge price distortions and malinvestments. Valuation and price discovery are now subjective and volatile as our proxy for ‘value’ is inner rather than outer. Digital money (the current proxy for value) lives in cyberspace (an inner space within our consciousness). Historical money (this proxy) lived in our outer space and this allowed for a more objective derivation of ‘value’ and ‘prices’. Let’s explore further these issues of metaphysics.


Throughout all of economic history, ‘value’ has been subjective but this idea (called ‘value’) was made more objective with money that was outer and then defined objectively by our government. The original American currency (a silver dollar) was viewed as more objective (sound) in creating prices as the money item was outer and defined specifically. The Coinage Act of 1792 defined our first currency unit (the dollar) specifically as 371.25 grains of pure silver. This created a logical methodology for further price discovery within the greater marketplace.


Prices would reflect the ‘value’ of goods based upon what people thought the coinage ‘value’ produced during an exchange. For example, one ounce of silver (a coin) could be exchanged for a loaf of fresh bread. This then created a reference point for further price discovery within the greater marketplace. Value for value was the mantra which permeated the marketplace during this time period. Money served as a relatively objective standard for determining ‘value’ of each item of production being exchanged.  This logic permeated all trade (national and international).


The core concept within Capitalism (value and valuation) could be negotiated using math and logic which most everyone accepted. Money was viewed as a sound proxy for this subjective concept called ‘value’ as the money item was outer. All this is now irrelevant as our money has become subjective and inner. Digital money is an inner money unit. We have no outer money today as all markets are becoming totally digital and inner and they operate with these cyber (electronic) currencies. This cashless world of mere inner numbers has replaced the historical world of outer monies (silver and gold). Valuation is now totally subjective and inner.


The problem with inner (digital) currencies is that price discovery is much more subjective and volatile. This creates malinvestments and price distortions throughout the marketplace. Digital/fiat currencies can be created from one’s metaphysical mind. Remember QE and its aftermath? This means that our money units have no tie to material reality. This is very unsound. The units get typed into the computer screen and then they circulate as metaphysical units for all price discovery. This is unsound valuation as price discovery is subjective/illogical and manipulated by computers.


Economics is now a profession within metaphysics and this means that we live with volatile/subjective markets which distort reality for traders, investors, and consumers. International trade is especially affected as each nation creates their subjective currency behind closed doors and there is no objective transparency for price discovery. The markets eventually break down and huge distortions appear everywhere.  Venezuela is one example of where price discovery has totally collapsed. This collapse is gradually appearing in all these digital/subjective markets.


Is it time for a Reset of all currencies on our planet? I would think so! Soon a collapse will develop in our Western markets and this may set the stage for a Reset. A Reset means that a new objective standard must be established (via agreement). What might emerge? We could find out in the next couple of years. My sense is that the current subjective marketplace will grow in volatility and prices will become more distorted. Watch the markets in each nation to discern the timing on this coming Reset. The markets in Europe could set the new trends for this Reset. Watch and learn! Enjoy! I am:

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April 25th, 2018

Posted In: Kingdom Economics

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