This page has been archived and commenting is disabled.

BoE Finds Gold Standard Leads To Less Crises Than Fiat Regime

Tyler Durden's picture


There should be three objectives for a well-functioning monetary system: i) internal balance, ii) allocative efficiency and iii) financial stability. The international financial and monetary system (IFMS) has functioned under a number of different regimes over the past 150 years and each has placed different weights on these three objectives. Overall, this recent Bank of England paper finds that today’s 'fiat' system has performed poorly against each of its three objectives, at least compared with the Bretton Woods System, with the key failure being the system’s inability to maintain financial stability and minimize the incidence of disruptive sudden changes in global capital flows. There is little consensus in the academic literature, or among policymakers, on what are the underlying problems in the global economy which allow excessive imbalances to build in today’s IMFS and/or which impede the IMFS from adjusting smoothly to counteract these imbalances. Critically though, while the fiat money system we are currently does indeed exhibit lower GDP growth volatility (by design), it has dramatically more incidents of banking and currency crises than under a Gold Standard.


The IMFS is the set of arrangements and institutions that facilitate international trade and the allocation of investment capital across nations. A well-functioning system should promote economic growth by channeling resources in an efficient manner across countries, over time, and in different states of the world. It should do this by creating the right conditions for international financial markets to operate in a smooth and sustainable fashion, discouraging the build-up of balance of payments problems, and facilitating access to finance in the face of disruptive shocks. These functions suggest that the ideal system should satisfy the following objectives:

  • Internal balance — the IMFS should enable countries to use macroeconomic policies to achieve non-inflationary growth.
  • Allocative efficiency — the IMFS should facilitate the efficient allocation of capital by allowing flows to respond to relative price signals.
  • Financial stability — the IMFS should help to minimize the risks to financial stability.

While there are some complementarities between these objectives, there may also be conflicts.


The various IMFS regimes have involved different combinations of international and national frameworks. Members of the Gold Standard, for example, fixed their currencies to gold, allowed capital to flow freely across borders and tended not to use monetary policy actively. So they gave up on the internal balance objective to achieve allocative efficiency and financial stability. The Bretton Woods System (BWS) featured fixed but adjustable nominal exchange rates, constrained monetary policy independence and capital controls — effectively sacrificing the allocative efficiency objective to allow greater control over internal balance and financial stability.

In contrast, in today’s system there are almost no binding international rules; rather there exists a hybrid arrangement in which countries are free to choose whether to fix or float their exchange rate and whether to impose capital controls or not. While today’s IMFS affords countries the freedom to pursue policies to suit their domestic objectives, this flexibility has also created problems.



World GDP Growth

Similar average growth, less volatile under 'Fiat' via Keynesianism, much higher Inflation, much higher inflation volatilty...


World Crisis Incidence

dramatically lower incident of crises under Gold Standard; Double the average number of external defaults per year under current 'fiat' system


This paper attempts to provide a framework for thinking about these underlying problems, and thus a means for discriminating among the reform solutions.


In our words, it would appear that the current 'fiat' money system is akin to a prozac-loaded psychopath - all the time the prozac is there anger is dampened (but remains under the surface). If something happens to the pharmacist - some external shock that shuts them down - then the psychopath comes out bigger after his long suppression...

'Fiat' suppresses reality but the cumulative reality will always find a way to escape - in crisis


Full paper here:

Fs Paper13


- advertisements -

Comment viewing options

Select your preferred way to display the comments and click "Save settings" to activate your changes.
Wed, 10/10/2012 - 09:46 | 2874587 GetZeeGold
GetZeeGold's picture



The barbarians are on line 2 Chuck.


Wed, 10/10/2012 - 10:03 | 2874622 ParkAveFlasher
ParkAveFlasher's picture

How about gold and silver spot trading as if they weren't joined at the hip this morn!

Wed, 10/10/2012 - 10:06 | 2874628 3rdgrader
3rdgrader's picture

Rope em, tar & feather em, strap em to a wagon wheel and set fire to em

Wed, 10/10/2012 - 10:27 | 2874672 Dalago
Dalago's picture

Probably in the short term but in the long run a standard is needed.  It will happen.  Not having a standard is like have no bases of measurement.  No, not like it IS.  No one controls how long a inch is or how far a mile is or how tall a foot is.  So why the fuck is some cock sucker controlling how much is the price of a dollar?  An inch is an inch and everything is measure from it.  A basket of commodities and precious metals and throw in blow and prostitution for good measure and you have the God damn standard.

Wed, 10/10/2012 - 10:49 | 2874757 kridkrid
kridkrid's picture

Why do we need a standard at all?  Do we have a standard for the price of milk, or for oil, or for anything?  The problem is not the lack of a standard, the problem is corrupt centralized control.  The BOE weighing in on this confirms what I have suspected for some time.  The talk of a standard will be the distraction used to keep control of money in the hands of the bankers.  It isn't the bankers fault... it's the concept of fiat money... so swing the pendulum to the gold standard, but keep control in the hands of those who have control now.  Wrong answer.  Stop the monopolistic control of money.

Wed, 10/10/2012 - 11:11 | 2874864 Poor Grogman
Poor Grogman's picture

"Competing currencies" is the same as no standard at all.

Ron Paul had it nailed with this single solution.

This is what will have to be implemented to break the grip over money..

Wed, 10/10/2012 - 18:26 | 2876353 tooktheredpill
tooktheredpill's picture

i wonder if they looked at regulation V crisis freq

Wed, 10/10/2012 - 15:12 | 2875808 twh99
twh99's picture

Wrong.  You measure milk against the money you spend to purchase it.  Everything you consume in life is measured against money.  But what is money measured against?


Ultimately it would be better to have something stable, like gold, be used as the measure of money.

Wed, 10/10/2012 - 16:04 | 2875975 SilverRhino
SilverRhino's picture

We have standards in everything from physics to chemistry to engineering.   Creating a non-changeable benchmark for money prevents governments / central banks from creating currency out of thin air like they are doing now.  

Essentially we need a CONSTANT for money just like we need constants for science.   If not we get the chaos we keep seeing in history.  

And yes a gold standard is deflationary if technology continues to advance faster than the supply of gold.  

Wed, 10/10/2012 - 10:51 | 2874760 malikai
malikai's picture

I think this report is fantastic. I want to see the follow on report that documents the incredibly smart move by Mr. Brown in helping to foster the 'bottom'.

Wed, 10/10/2012 - 10:31 | 2874702 kito
kito's picture

gold and silver are getting nervous that mittens may win. a romney win will shoot the markets upwards, and hammer the metals, during romneys honeymoon......even the inevitable u.s. downgrade will likely be put off six months to allow romney some breathing room........the sheeple will believe that romney is the savior...that he will draw the fiscal line in the sand.....that HE will fire bernanke, balance the budget, reduce the debt, raise interest rates..crush china........heal the infirm...walk on water....invoke the spirit of reagan..........give us liberty!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!!........

Wed, 10/10/2012 - 10:39 | 2874730 GetZeeGold
GetZeeGold's picture



Just when socialism seemed to be working out so well.


Wed, 10/10/2012 - 10:49 | 2874756 kito
kito's picture

no worries...............corporatocracy and bank socialism will live on under romney......................


obamney 2012

Wed, 10/10/2012 - 10:52 | 2874767 malikai
malikai's picture

Who invented Obamacare(Pelosicare)?


Wed, 10/10/2012 - 11:42 | 2874999 kito
kito's picture

Keep grazin partisan playing the part of the partisan puppet so well.....mehhhhhhh.....

Wed, 10/10/2012 - 12:37 | 2875211 malikai
malikai's picture

Partisan? LOL.

Nah man come on, you should know by now that I'm not a member of the two colored/headed animal's party..

Wasn't it Romneycare that Obamacare is based on?

Fucking futile to think that this asshole is going to change anything. If he does, 100% guarantee it will be even worse. Which, I accept is difficult to contemplate how that can be done, but the new batch of puppets can be counted on to find a way.

Wed, 10/10/2012 - 10:43 | 2874741 ParkAveFlasher
ParkAveFlasher's picture

I don't know that Mittens can't print, tax, or loot just to keep the heat on in the White House.

Wed, 10/10/2012 - 10:51 | 2874761 kito
kito's picture

never would he do that................mittens is the small government pro-liberty savior.......really............he said so.........i believe him..........

Wed, 10/10/2012 - 10:59 | 2874789 kridkrid
kridkrid's picture

Small government will only hasten the collapse.  I'll get a lot of down-votes for saying this... because people want desperately to believe that there is a solution to this mess, but there is not... only timing.  You can either figure out ways to continue to feed the exponential function or you can watch it collapse.  And you can't feed the function forever... so collapse it will.  So the charade of reducing the deficit is just that.  A charade.  Obama said the same thing, but alas he jumped right on the exponential function, just like the presidents before him.  Some presidents benefitedby the consumer and corporations doing their part... but people are mostly tapped out.  The end is growing near... what we do after the end is what we should be discussing.

Wed, 10/10/2012 - 11:44 | 2875013 kito
kito's picture

You are right...but the longer big government holds on, the worse it will be.....

Wed, 10/10/2012 - 11:02 | 2874807 ParkAveFlasher
ParkAveFlasher's picture

Don't you mean Ron Paul?  I mean, uh Paul Ryan ... no no he's that crazy uncle guy ... no wait - what did I read in USA Today .. ummm -

I suppose you're right then!

Wed, 10/10/2012 - 11:44 | 2875012 Nage42
Nage42's picture

Can I paraphrase your paragraph?

"He will provide those with some semblance of intelligence with another great buy opportunity to accumulate,"  does that about sum it up?




Wed, 10/10/2012 - 11:30 | 2874943 Clayton Bigsby
Clayton Bigsby's picture

Trial Balloon, Bitchez...

Wed, 10/10/2012 - 13:23 | 2875400 LongBalls
LongBalls's picture

Basel III eliminates Tier 3. Read between the lines. We are moving to a new monetary system.

Wed, 10/10/2012 - 09:45 | 2874588 SilverTree
SilverTree's picture

Thunderdome bitchez!

Wed, 10/10/2012 - 09:47 | 2874591 GetZeeGold
GetZeeGold's picture's a zero sum game.


Wed, 10/10/2012 - 09:57 | 2874611 Dr. No
Dr. No's picture

Not really:  "Two men enter, one man leaves"

Wed, 10/10/2012 - 10:01 | 2874614 GetZeeGold
GetZeeGold's picture



I don't think you seem to be grasping the concept. It's zero for the guy that doesn't leave.


Wed, 10/10/2012 - 10:02 | 2874619 ParkAveFlasher
ParkAveFlasher's picture

Bust the deal.  Face the wheel. - Auntie

Wed, 10/10/2012 - 10:17 | 2874665 blueRidgeBoy
blueRidgeBoy's picture

who cares about him?  he lost

Wed, 10/10/2012 - 09:49 | 2874593 LawsofPhysics
LawsofPhysics's picture

China better spend some of that fiat before it becomes worthless.  So, pegging your currency to something fucking real isn't so bad after all, who'd a thunk it?

Wed, 10/10/2012 - 11:09 | 2874851 Biosci
Biosci's picture

The elephant in the room, that is missing from the analysis (though I confess I haven't read the full report), is this simple fact:

All currency regimes fail.

Fixed or fiat, more or fewer crises, assign your value judgments as you see fit.  They are an emergent behavior of a complex adaptive system that is inherently unstable.  As always, it's the timing that's such a bitch.  Bitchez.

Wed, 10/10/2012 - 11:27 | 2874932 Broccoli
Broccoli's picture

What's your definition of fail? A 2,000 year old coin with good ole Julius Caesar stamped on the face will buy pretty much anything today. I am not aware of any gold coin that has ever become worthless in the entire history of the world?

I mean I guess when those treasures hunters find a gold ship that sunk on its journey from South American to Spain, the hunters just through the gold coins back in the water because damnit, it is not official legal tender certified by the Spanish government anymore.

The only valid complaint about PM regimes is that governments no longer have the "flexibility" to paper over unsustainable debt burdens, literally. I see that as a feature, not a bug.

Wed, 10/10/2012 - 11:39 | 2874988 Biosci
Biosci's picture

No, your 2,000 year old coin will not buy much of anything today, or most days in history, before converting it to the local currency.  Yes, gold is an outstanding store of value through these transitions.

Wed, 10/10/2012 - 09:51 | 2874596 Cognitive Dissonance
Cognitive Dissonance's picture

"There should be three objectives for a well-functioning monetary system: i) internal balance, ii) allocative efficiency and iii) financial stability."

With regard to a well-functioning monetary system the only thing that counts for those who wish to manipulate, lie, cheat and steal is the ability for them to manipulate, lie, cheat and steal.

He who makes the rules...............well, you know.

<I care not who creates the monetary system as long as I can manipulate it.>

Wed, 10/10/2012 - 09:55 | 2874607 disabledvet
disabledvet's picture

You still have to pay yourself first. Lying, cheating and stealing still doesn't get you there. (Miller's Crossing for all you home gamers.) Bretton Woods is still functioning...albeit in some type of "dollar standard" world. The reason to me is simple: you cannot "replace" the greenback. The best you can do is beat it at its own game. To date no one has tried...but clearly Germany is on to something.

Wed, 10/10/2012 - 10:05 | 2874625 Cognitive Dissonance
Cognitive Dissonance's picture

Bretton Woods is still functioning because it can still be manipulated.....and not just by the big guys. We all want our 'share' of the pie. We just don't discuss the process using ugly mafia terms, but rather respectable sounding names such as investing, trading, asset allocation etc.

Wed, 10/10/2012 - 10:15 | 2874651 Dr. Engali
Dr. Engali's picture

And that's the dirty little secret....we've become a nation of skimmers in a system that really produces very little value.

Wed, 10/10/2012 - 11:01 | 2874808 RockyRacoon
RockyRacoon's picture

Oxymoron of the day:  "Intelligence survey"

Wed, 10/10/2012 - 09:59 | 2874612 EscapeKey
EscapeKey's picture

He who has the gold... leases it out on a fractional reserve basis.

Wed, 10/10/2012 - 10:02 | 2874621 GetZeeGold
GetZeeGold's picture



Maybe the lender gets it back......maybe not.


Wed, 10/10/2012 - 09:53 | 2874603 No Euros please...
No Euros please we&#039;re British's picture

The biggest problem was using a reserve currency that was left in the charge of a bunch of crooked sociopaths.

Wed, 10/10/2012 - 10:05 | 2874627 ParkAveFlasher
ParkAveFlasher's picture

Fiat is sociopathic by requirement.  It requires a lie on the issuer's part, that lie is the very number written on the very note, which begins to diminish at the very moment it is written.

Wed, 10/10/2012 - 10:11 | 2874641 fuu
fuu's picture

You've been on a roll all week.

Wed, 10/10/2012 - 10:13 | 2874647 ParkAveFlasher
ParkAveFlasher's picture

I never took a finance, economics, or business course in my life.  This is my class, ZH.  Just trying to distill all this to the essence, so when I have to explain it to my kids, and all the textbooks are written to confuse, I won't be short on understanding.  


Wed, 10/10/2012 - 11:07 | 2874839 ParkAveFlasher
ParkAveFlasher's picture

combining form of Latin socius  a fellow, companion, comrade;


a combining form occurring in personal nouns corresponding to abstract nouns ending in -pathy,  with the general sense “one practicing such a treatment” ( osteopath ) or “one suffering from such an ailment” ( psychopath ).

Wed, 10/10/2012 - 09:54 | 2874605 PUD
PUD's picture

It's all moot in a debt as money system when the cost of debt carry meets peak debt. The singular problem is debt based money and the requirement it has for perpetual compounding exponential growth. It's all math and has nothing what so ever to do with policy. This is why there is no fix.

Wed, 10/10/2012 - 11:04 | 2874826 kridkrid
kridkrid's picture

I would like the cocksucker who downvoted your post to explain himself.  Come on fella... tell us how what he said is wrong.  I double dog dare you.

Wed, 10/10/2012 - 12:15 | 2875125 Freegold
Freegold's picture

So very true, no elite conspiracy here. It is only the easy money that most of us wants and especially politicians. No fix for this but a  new system will emerge. No goldstandard of the past bc it always fails sooner or later. In our interconnected electronic moneywolrd much sooner than before. You can never fix  papermoney to gold and make it last. It´s gold that is the constant not the other way around. Fixing the value of money will choke the economy and we don´t want that.

Gold is the best refrencepoint since at least 5000 years and we will find it´s true value soon. Get your gold while it´s still on sale :)

Wed, 10/10/2012 - 09:54 | 2874606 lunaticfringe
lunaticfringe's picture

yea, what CD says.

Wed, 10/10/2012 - 09:55 | 2874609 jjsilver
jjsilver's picture

Death Knells for the USDollar, Jim Willie

Wed, 10/10/2012 - 10:17 | 2874616 Dr. Engali
Dr. Engali's picture

All I have to say is fucking shit. How many wasted dollars did it take to come to that conclusion?


Edit...I read this as  the central bankers are closer to collapsing then old system and preparing to roll in the new.

Wed, 10/10/2012 - 10:01 | 2874618 Hayabusa
Hayabusa's picture

Look, pointing out how things should be vs how they actually are is useless... the elite psychopaths' have designed the kleptocracy the way it is on purpose and you're going to live with it, period.  Bitch all you want, but true change comes with a price and from where I'm sitting very few people are willing to pay that price... the price for life, liberty and the pursuit of happiness.

Wed, 10/10/2012 - 10:07 | 2874632 AUD
AUD's picture

The Bank of England should admit that it has been passing dud cheques since 1914, & on many occasions beforehand.

Wed, 10/10/2012 - 10:14 | 2874650 Zola
Zola's picture

In other news: 



                                YES !

Wed, 10/10/2012 - 10:34 | 2874711 GetZeeGold
GetZeeGold's picture



And that after this is accomplished, and the brave new world begins

When all men are paid for existing and no man must pay for his sins,

As surely as Water will wet us, as surely as Fire will burn,

The Gods of the Copybook Headings with terror and slaughter return!


Wed, 10/10/2012 - 13:46 | 2875490 Poor Grogman
Poor Grogman's picture

The sun is hot

Hitler was unpopular

Perhaps I can get a BOE "grant" to somehow re-discover these new truths..

Wed, 10/10/2012 - 10:16 | 2874661 machineh
machineh's picture

Isn't this paper rather like a polypharmacy addict opining on 'what it would take to make me go to rehab'?

Wed, 10/10/2012 - 10:17 | 2874664 samsara
samsara's picture

Did anyone tell Bonnie Kavoussi ?

Wed, 10/10/2012 - 10:26 | 2874682 onebir
onebir's picture

Just as Teflon Merve (the Swerve) officially casts the inflation target to the winds. Great timing from the Tylers. Expect to read this again in a salmon pink paper near you - if they're feeling ballsy. :)

Wed, 10/10/2012 - 11:30 | 2874947 reload
reload's picture

King is an utter joke, his premis that `low inflation did not avert the financial crisis - therefore we feel higher inflation might be ok` is too obviously flawed to warrant in depth critique. Why the £ has not been trashed today is beyond me, it is certainly what he wants. And to all the Gilt owners out there (and there are a few besides the BOE) YOU HAVE BEEN WARNED - your coupons and principle are going to be eaten alive by ZIRP plus inflation. Because lack of inflation does not avert fraud and casino banking -ergo inflation must be good. 

Wed, 10/10/2012 - 10:33 | 2874710 Catullus
Catullus's picture

I'll take this a step further. It's very apparent that democracy is a form of government that results in unstable capital conditions. 1913 may have been the creation of the federal reserve. But 1919 marked the end of monarchical rule in Europe. A democracy and democratically elected governments always have a motivation to allow for credit bubbles, fractional reserve lending, and financing through government-administered printing operations. And when democracy doesn't like the outcomes, they enforce capital controls and forced currency exchange rates. Why not promise the welfare state to people? You can just print the money up.

Wed, 10/10/2012 - 11:07 | 2874841 LMAOLORI
LMAOLORI's picture




+1 Whether it's socialism for the rich or the poor the fault lies with the politicians who didn't follow the Constitution of our Republic. We are after all a Republic the problems stemmed from using a Representative Democracy who abused their power for votes and money.

Once you understand the details of modern central banking, you are able to step back and see that it truly is a way for the government to use the printing press to pay its bills. FULL ARTICLE by Robert Murphy

Wed, 10/10/2012 - 10:48 | 2874752 RockyRacoon
RockyRacoon's picture

The grammar fanatic says the title should be "fewer" crises, not "less".   If you can count them, there are fewer.  Example:  There is less rice in this tasty chicken dish than other recipes.  - vs -  There are fewer grains of rice in the spoon than you thought.

Wed, 10/10/2012 - 10:53 | 2874770 Cognitive Dissonance
Cognitive Dissonance's picture

Don't you mean grammar coon? :)

Wed, 10/10/2012 - 11:37 | 2874977 IridiumRebel
IridiumRebel's picture

You're shittin' me. You mean reality is better than just makin' shit up? NUTS.

Wed, 10/10/2012 - 11:49 | 2875035 Auric Goldfinger
Auric Goldfinger's picture

In other news...

World still round (ish).



Wed, 10/10/2012 - 13:09 | 2875335 topspinslicer
topspinslicer's picture

Excellent! I was waiting on the Queen's bank to give me the green light to get the hell out of these paper "investments"

Wed, 10/10/2012 - 13:10 | 2875342 topspinslicer
topspinslicer's picture

Having fewer central planners works wonders too

Wed, 10/10/2012 - 13:43 | 2875473 proLiberty
proLiberty's picture

But above all gold has zero counter-party risk

Wed, 10/10/2012 - 15:00 | 2875581 batz
batz's picture


It leads to FEWER crises. Retard.


<Edited to fix spelling, which is excusable, relatively. RETARD>

Wed, 10/10/2012 - 15:42 | 2875906 Watson
Watson's picture

You don't really need to use gold to keep the system honest.

One way is to have the central bank accept short, medium and long-term deposits from the general public, paying (after applicable taxes) inflation (calculated on a broad basis) + 3%, combined with a target rate of inflation of zero (not zero to...), and no other mandates (like employment levels).

That would encourage saving (which aids stability) and discourage borrowing (which contributes to instability).

Such a policy would squeeze inflation out of the system, though the process would be speeded if government ran genuinely balanced budgets, and only raised debt to supply assets with a genuine multi-year lifetime (ie not next years public servant payroll).

This is probably not the place to say it, but I am so old I can remember gold's performance in the late 1970's-early 1980's: that memory makes me think that personally and secretly held gold coins are probably a great hedge against total political collapse (ie major war/invasion), but not much else.

Thu, 10/11/2012 - 02:12 | 2877084 Radical Marijuana
Radical Marijuana's picture

The Bank of England publishes another nostalgic bullshit research paper ...

That was then, this is now:

Throughout all of human history, more exponential growth was POSSIBLE, and the money system could work to enable that. We are reaching the point were more exponential growth is getting to be IMPOSSIBLE. Therefore, no money system could work to enable that.

We need a much more penetrating understanding of the basic integrated realities and purposes that were are play, so that we can radically revolutionize our monetary system. There has to evolve, probably the hardest possible way, through horrible collapses, then rebuilding, if possible, then re-collapsing again, until we learn those lesson in that hard way, but nevertheless, there HAS TO EVOLVE some human ecology and political economy that is NOT based on any more exponential growth. Of course, that is like NOTHING that ever existed before during human history, which has been the 10,000 year plus story of developing Neolithic civilization, at an accelerating pace of quantitative increases.  Unless the new monetary system is realistically related to STOPPING endless exponential growth, then what it is really doing is just finding another method to overshoot further, and collapse into chaos even worse thereafter!

Of course, I know I am just spinning my wheels in the mud without traction. The established systems will continue doing everything they can NOW, for as long as possible to keep on being the same, and so, attempt to keep on growing exponentially. What I am talking about will take forces beyond human control slapping us around drastically, before we will take that seriously. Of course, if we were not insane, we would use our imagination and intelligence, on the basis of the information we have, to change our behaviour before we were forced to, by factors beyond our control. However, since the real monetary system that already exists is based on lies, backed by violence, and has become a runaway electronic fiat money fraud, backed by atomic bombs, the future of that system can most reasonably be expected to continue to be it going even more utterly insane.

There are NO rational reasons to believe that enough human beings will start behaving more rationally, for that to matter. Rather, the REAL future of the established monetary systems are for those already insane systems to become even more insane. What I am proposing is either pie in the sky, before the psychotic breakdowns of the current runaway FRAUDS, or else, it depends upon totally unknowable situations that will exist after the established systems drive themselves through their psychotic breakdowns, by being too successful at controlling civilization with runaway financial frauds.

As the ZERO HEDGE author commented:

In our words, it would appear that the current 'fiat' money system is akin to a prozac-loaded psychopath - all the time the prozac is there anger is dampened (but remains under the surface). If something happens to the pharmacist - some external shock that shuts them down - then the psychopath comes out bigger after his long suppression ...

Fiat' suppresses reality but the cumulative reality will always find a way to escape - in crisis. ...

But nevertheless, just for the sake of discussion, I repeat the THEORETICALLY OBVIOUS, that we SHOULD develop a monetary system which is based on the concepts sustainable human and industrial ecologies, that integrate the natural ecologies which they need to survive. Like I said, wild day dreams of a world where genocides and democides do not wipe almost everything else out first, beyond ever fixing, but still, there is the THEORY that should emerge, IF we could stop being so totally insane, since we are controlled by insane state religions, of the biggest bullies' bullshit monetary system, based on the maximum possible sustainable deceits, inside a context wherein enough people are such political idiots that that is way too easy to do.

IN THEORY, we should apply basic understanding of energy laws and systems theory to human and industrial ecology, and develop a monetary system that makes sense inside of that context. The contradiction there is how to overcome the crucial role that deceits play in controlling civilization, through lies backed by violence, when the established systems are ALREADY the runaway triumph of the maximum deceits possible. ... But then again, that problem is STILL theoretically consistent with the energy laws and systems theory, that SHOULD inspire us to change our monetary systems so that they make ecological sense. We should be looking through the long history of evolution for ethical parables to enlighten us about how we should adapt ... Obviously, I love to day dream that we will not destroy ourselves first, despite that being, by far, the most probable future. What I do is POLITICAL SCIENCE FICTION ...

Do NOT follow this link or you will be banned from the site!