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2. Creativity always comes as a surprise. If it didn’t, socialism would work. Information is defined as surprise.
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3. Information is the opposite of order. Capitalist economies are not equilibrium systems but dynamic domains of entrepreneurial experiment.
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4. Money should be a standard of measure for the outcomes of entrepreneurial experiments.
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5. Interference between the conduit and the contents of
a communications system is called noise. Noise in the currency makes it impossible to differentiate the signal from the channel.
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6. A volatile market shrinks the time horizons of the economy.
Gyrating currencies and grasping governments are deadly to the commitments of long-term enterprise.
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5. Interference between the conduit and the contents of
a communications system is called noise. Noise in the currency makes it impossible to differentiate the signal from the channel.
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7. Analogous to entropy, profit or loss represents surprising or unexpected outcomes. Analogous to average temperature in thermodynamics, the real interest rate represents the average returns.
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8. Velocity is not a constant. Therefore, the effective money supply is not controlled by the central bank but by the free decisions of individuals as they accumulate knowledge.
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1. You mention Thermodynamics, I like that, I also think fluid mechanics might be a good way to understand economics as well. I've been thinking for some time about how to put together the proper modeling to prove what you are eluding to.
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2. Mainly that the government manipulating the currency is the root of most issues we all face as citizens. It distorts markets, pervert incentives, and misallocates resources. The net effect is to raise wealth and income among the least productive.
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power cannot order wealth—new knowledge—into being
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3. And does so at the expense of the average citizen. All of this is anecdotally obvious to anyone that cares to look. But to prove it with modeling that can duplicate actual results would show definitively that this process is real and destructive.
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True, but power can reset the rules so that true wealth is not rewarded. Instead, the new game is collecting tokens they create, so new knowledge is swept into the machine because it provides leverage in the same way deposits create leverage in banking
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Wealth is knowledge gained from falsifiable economic experiments. The outcome is measured by money.
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Inflation distorts the money measurement. Time is money, the universal scarce resource. Economic experiments with reliable measurement yield the most knowledge.