Part of the problem is the projections made by various groups, for instance, the gold bugs rail against Fiat, fiat that has a large component of counterfeit within its Q. AU isnt practical for wholesale use, the problem contains the solution as in nano particalization of gold to currency, arbitrated by Hayeks, Time Shapes of Capital..
This can occur according to terms described by William Pensinger in the below presented piece.
To: dvdw© 6/30/2008 12:52:15 PM
From: dvdw©
time-shape and supply of capital
Nobel laureate Friedrich Hayek has stated that “…the only adequate description of th(e) ‘supply of capital’ is a complete enumeration of the range of output streams of different time shapes that can be produced from the existing resources”. Physicist Frank Tipler recognized this notion as being fundamentally quantum mechanical in nature. In his book THE PHYSICS OF IMMORTALITY (Doubleday, 1994) Tipler quotes Hayek on two occasions in observing that Hayek’s notion of total “capital stock” is equivalent to the many-worlds (or relative-state) interpretation of quantum mechanics offered in the late 50s by physicist Hugh Everett, III. This interpretation does not view the wave function as a probability amplitude; it regards the multiple-values of the function as representing real states. With an economic universal wave function, the many “worlds” would be the multiple time shapes of flux-partitioning which the global economy assumes under continuous chaotic self-organized far-from-equilibrium phase transition. The “supply of capital” is viewed as a multivalued function, as possessing complex-identity by virtue of being composed of a superposition of differing time shapes. Can this idea be the basis for an electronic exchange unit that carries multivalued, holistic information?
Think of parity relations between currencies in terms of renormalization schemata. Renormalization is a “block renaming” or scaling technique used -- on a model of a chaotic system with many scale-levels -- to determine parameters characteristic of the system’s movement to a state of self-organized criticality: a very high state of global (i.e., systemic) integration. Fluctuation of relative currency values is a kind of “block renaming”, absent the scaling technique which would reveal, in the market microdynamics, the desired holistic information about the instantaneous total state of the macroeconomy. Gold once was the exchange standard, that is, the universal exchange unit to which the various national monetary units were referenced. Though the value of gold under different systems historically varied, for each x currency, there was, at any given time, only a single corresponding y value in gold. Gold was a single-valued universal referencing exchange unit and, therefore, did not carry much information about systemic integration. The value of gold was not determined by the relative-state of the various national currencies. Had it not been set by regulatory decision, and had it been so determined by relative-state, it would have carried major components of information about the total state of the macroeconomy. Such a global process needs to emerge from self-similar processes within its nested scale-levels. What needs to replace gold is a multivalued universal referencing exchange unit, a unit whose values automatically fluctuate according to a global wave function representing the relative-state of the various national currencies. How can this wave function be constituted?
Consider the “weight” of a given currency as varying according to the “capital stock” of the given national economy (or other chosen scale-level partition), which is itself, according to Hayek, a superposition of the time shapes of the alternative income streams its resources can generate. Getting such a universal referencing exchange unit up and running, then, would involve overcoming a “measurement problem”(just like in quantum mechanics), and ascertaining the proper sorts of data gathering. How are “capital stocks” to be assessed? |
