On the subject of Rape Entropy;(systemic self interest)
We are guided by the conclusions of Mr P....as offered up within this outtake;
The velocity of hot-money-condemned is that on a unidirectional vector: movement away, not toward. No one condemns hot money when it arrives -- at whatever velocity. One of Gisell's intents in creating the notion of “free” money is to slay the dragon of unending growth. This, he felt, could be accomplished by creating circumstances whereby money would increase in velocity bidirectionally: both toward and away. The faster money moves bidirectionally, the less viscosity, the less accumulation, and the less unending growth. Indeed, no growth; likely negative growth, with its attendant problems.
Economic issues of unidirectionality versus bidirectionality have a natural correlate in the “partition law” of cellular physiology. Speaking here of the living cell of biological science, that is (a rather arrogative way to put it, the reader must countenance). It could validly be said that one of the objectives Gesell hoped to achieve with “free” money was establishment of an equilibrium distribution of economic value. We'll get back to value in a moment. “Free” money, by making accumulation of money (not necessarily goods, gold, gems, illicit drugs, black market interest) impossible (thereby necessitating government maintenance of a very broad blue line, as history of “prohibition” informs us), will assuredly redistribute money (maybe even value under some definitions) until some equilibrium distribution is achieved. Inside the living cell the concentration (accumulation) of some solutes is higher than the surrounding medium; for other solutes, the concentration (accumulation) is lower than the surrounding medium: these differentials being largely responsible for the potential difference, the voltage, associated with cellular life, absence of which is associated with cellular death. Capital accumulation in economics -- capital treated as a bulk phase -- is sort of like edema in cell physiology: both involve unidirectional adsorption, a viscosity in movement away. The cell pays over-market interest (through the good offices of ATP). Concentration lower than the surrounding medium, biologically, involves partial exclusion (which the “partition law” describes), viscosity in movement toward. The cell pays lower (sub-market) interest. The Troshin equation describes both of these directionalities in a single statement. “Free” money, in paying negative interest, would altogether remove both forms of viscosity, thus increasing velocity of monetary motion toward and away, while orchestrating an equilibrium distribution -- at the expense of depleting potential difference, the voltage of economic life. The act of removing all viscosities would be tantamount to using a sledgehammer on processes of spontaneous order operative in the very nature of exchange processes. |
