Sunday, August 17, 2014

The fundamental value of money

The Federal Reserve is creating money "out of thin air". But I'm not complaining.

After all, money is meaningless for all other reasons except as a kanban. The fundamental value of money of an advanced economy is not and cannot be gold or any form of commodity. The fundamentals that support and reinforce the value of money is education, technology expertise, creativity and productivity of its economy.

Kanban is a micro-economic form of currency in process control.

In a factory (or hospital, utility company, etc) computer-aided process planning would freely expand and contract the currency supply circulated in the factory. When kanban expansion occurs, we do not say we are borrowing from the future. We are expanding because the process flow and the number of processes has expanded. Unless we expand the currency supply on the production floor, there will be fluidity problems and bottle-necks.

Therefore, when the fed expands money supply, we are not "borrowing from the future". They are merely responding to the fluidity and productivity requirements.

I demonstrate the bimodal contradictions (aka hypocrisy) of neo-Conservative Christianity's unbiblical perspectives on money, and their attempts at deliberately promoting misunderstanding of the biblical role of money to promote their end-times theology.

The bible places limited value on the role of money.

For example, the parable of the workers (regardless if they came early in the morning or nearing evening, they were paid the same) contradicts neo-Conservative Christian values on money. The requirement to reset the economy and the value of money every 50 years also contradicts their selfish and materialistic values on money.

The fundamental value of an economy is the education, technology, creativity and continuous acquisition of skills of its population.

Money is a kanban and should be treated as a kanban. Biblical views on accumulating prosperity and assets is not thro money but thro wisdom and gaining of knowledge.
Socialist planning and wealth redistribution is not the answer to poverty. The answer to poverty is the right of every child and person to gain the education and productive skills he/she deserves.

A gold or commodity backed currency equals a mediocre stagnated economy. But a currency backed by the education, skills and productivity of its population equals an extreme-performance economy.

The Bible forbids usury not because it in itself is evil, but because it encourages the accumulation of wealth through money rather than through social justice, knowledge and education. Money as a long-term media of wealth accumulation is self-defeating, self-strangulating.

Money is but a kanban to achieve the goals of an economy. Money could merely be a short-term value buffer like any kanban should be. A value that needs to be reset on a regular process realignment basis.


 

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