How does systemaccounting relate public finance with trade?

A:

Systemaccounting separates public finance from trade.

A government institution is every bit as accountable for its debt obligation as the common business. Since the full faith and credit of a republic shall never apply to bond markets*, printing money to service the unaddressed and accumulated debt created by the elected authors of poor judgement results in a number of serious violations:

1. a failure to clear the the market for leadership of its poorly-performing assets (e.g. elected officials, private executives),

2. a robbery of the public trust as it steals away the rightfully-earned purchasing power created by the public,

3. a denial of accurate measurability of any and all prices defined by the public.

Printing money is appropriate only after an increase in purchasing power causes a currency to become denominationally inefficient. Even so, the only method appropriate for increasing a currency's supply is adding a decimal place to the entire float. Increasing the money supply by allowing state-chartered lending companies to equate the value of their notes receivables to cash, or directly lending to them and other privileged firms are all grossly inappropriate and inefficient since, among other offenses, it seeks to exempt a small fraction of the public from the same competition and failure to which everyone else is subject.

Labeling an experiment to be above failure naively undermines its purpose. The purpose of an experiment is to discover truth by detecting failure. Without detection, a remedy cannot be identified.

*Note: Contrary to popular belief, speech is not free—insofar as it depends on time, a commodity bearing physical value in finance. When information identifies value to be added with respect to time, the strength of the instrument which financial experts use to prove their theories at the cost of exposing others to risk is not determined by the quantity of votes received in exchange for the emotionally-attractive words issued by politicians, the number of people who join in singing their anthems, or waive their flags. Creditworthiness is affected by the physical gains produced by those capable of negotiating and consuming risk. Election results are not a substitute for what financial experts use to prove the strength of their word.

Was this helpful?