The two “bank” crashes this week resulted from a bizarre reversal of basic definitions.

In 2017 I had some broader and clearer thoughts on the subject.

= = = = = START REHASH:

While feebly attempting to “think” about REAL VALUE vs FAKE VALUE in banking, I noticed a basic fact. So far I can’t find any mention of this basic fact in online discussions of the subject, but the word combinations are probably not hitting the right texts or something. I’m sure it’s well known.

Basic problem: When money creation happens automatically at the moment of making a LOAN, people who are attempting to run their lives and businesses by thrift, without borrowing, are completely ignored. We don’t count as part of the economy.

The money supply EXPLICITLY EXCLUDES REAL VALUE.

REAL VALUE comes from REAL LABOR. Turning raw materials and components into a useful product, or cultivating crops and livestock, or arranging and advertising products for easier purchase.

Money creation at the point of lending doesn’t even begin to recognize any of these activities.

A business that makes or sells things WITHOUT BORROWING FIRST is not recognized as creating value.

Every loan, whether it goes toward real production or gambling or stock manipulation, is recognized as creating value.

The current system treats DESTROYED VALUE as an increase, and completely ignores CREATED VALUE. Perfectly backwards.

This is so basic that I’m SURE somebody has spotted it. Maybe sharia economists? Maybe Marx?

It appears, eg this article, that modern sharia banks don’t create money differently, but do try to prohibit loans that serve speculation. Might achieve the same goal, but doesn’t hit the basic problem.

Unsurprisingly, the Soviet system GOT IT RIGHT. From this clearly written article:

First, as explained below, [Gosbank] had no discretion over the quantity of money. Its money-creation activity like its credit activity was entirely passive, arising as a byproduct of the production plan.

[Explained below:] When a farm delivered its milk output, it would obtain a document from the cheese factory verifying that the latter had received its milk input. The document was then turned over to Gosbank, which credited the farm’s account according to the value of the milk delivered, and debited the cheese factory’s account by the same value.

Likewise, after the cheese was produced and shipped to the State food store, the cheese factory obtained a document verifying its delivery of cheese. Again, the document was turned over to Gosbank, which this time credited the cheese factory’s account and debited the store’s account. Finally, when households purchased the cheese with cash, the State store deposited its cash receipts with Gosbank and was given a credit of equal value.

With this simple example, we can see how every transfer of physical output from one location to another, and every bit of value added in production, was mirrored by an associated financial transfer through Gosbank.

I still don’t know if Marx designed it this way, but this was the reality.

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Generalize. In ALL areas Deepstate counts destruction of order as increase. Wildly dyslogical theories are counted as positive “contributions to knowledge”, while simple statements of simple observable obvious transparent plain actual factual FACTS are treated as EXTERMINATE EXTERMINATE EXTERMINATE.

Chaotic “art” and “music” are subsidized and high-priced. Orderly art and music are not censored YET, but get no subsidies or awards.

Violation of experimentally determined natural law is counted as positive. Refusing to enforce written legislation is “rule of law” according to the black-robed demons, and enforcing written legislation is “lawlessness”.

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It’s easy to measure deltas of order vs chaos in physical objects like houses and paintings, or semiphysical ‘performances’ like software and music. Harder with non-physical things like language and logic?

No, it’s not harder.

Some of these are one-sided scales with increases and decreases along one vector; others have opposing vectors with a net resultant.

Language? Two-sided. Making a new and useful word, or a new and useful phrase, is an increase of order and value. Silencing useful words, or swamping useful words with intentionally misleading words, is destruction of value.

Facts? Two-sided. Making a new and valid observation via senses or instruments is an increase of order and value. Silencing a valid fact, or swamping a valid fact with invalid facts, is destruction of value.

Logic? One-sided, I think. Using valid logic to manufacture a new thought-product from the raw materials of facts is an increase of order and value. Using invalid logic or false facts to manufacture a defective thought-product is a decrease. Wildly dyslogical theories, as abovementioned, are decreases but not the same thing as swampings.

Status? Two-sided but less direct than the others. A functional civilization grants status (and thus marriage) to producers of real value. Sharia and Soviet systems were explicit on this point. Modern western satanizations grant status (and thus marriage) to destroyers. Scammers, skimmers, scum.

= = = = = END REHASH.

Rereading this, I’m mainly struck by the unique style. This one piece seems to have been written by someone else, with a facility for new phrases and new grammar that didn’t persist.

I don’t remember why I wanted to treat logic as a one-sided scale. Dyslogical theories, propagated in school and media, are definitely a form of swamping. Flooding a student’s mind with intentionally wrong shit makes it harder to observe and think clearly, and leads to a tremendous waste of time and skill when students make career choices based on genocidal myths about science and politics and economics.

Also, the linked article about Gosbank no longer exists. Presumably all halfway neutral writing about Russia has been purged. Only murder and genocide are allowed.