What is the position of systemaccounting on unconventional monetary policy?

A:

The Illusion of Macroeconomic Opportunity

Economic growth is achieved when capital is allocated successfully, and not when the means we use to measure its existence is altered (supply of yield vs. supply of money). The lack of courage to move capital around in the physical economy is due to a low visibility of yield, i.e. there is a high degree of uncertainty as to where opportunity is produced. In the same way filling the tank of a car with a broken transmission does not empower it to move, printing money does not empower an economy to grow. To a physicist, yield is a vector quantity (having both magnitude & direction) that must always point at those who are measured to physically produce it. Allowing the government to simply dictate the price of capital (violation 1) and alter the means we use to account for it (violation 2) in favor of the network of lending firms it has chartered (violation 3)—is perfectly irrelevant to a process that depends on establishing the free market's transmission effect between 'money' and the 'firms the economy has verified to produce yield'.

Producing a scientific measure of the cost of capital is essential to the health of an economy because, at the heart of a healthy economy is measurability; not borrowing & lending. After all, how can the cost of credit be reckoned if we don't, at first, measure it? For those who place their own eyes before their academic degrees, it's obvious that government authority is not a legitimate substitute for the data point of yield.

The Reality of Microeconomic Costs

Altering a money supply to cover up the consequences of public sector failure robs it of its ability to reflect future private sector success, and violates democracy by raiding ballot boxes to change the number of votes in favor of the inadequate. Failure is an inescapable, yet valuable form of economic feedback to private sector participants, and is not one which the public sector is free to exempt itself.

If government attempts to deny voters their right to learn of a failure in choice of leadership, the Universe will inevitably reveal the magnitude of its indifference to the promises the undue leadership was traded for. Rather than naively interpreting the results produced by democracy to be above failure, and indulging this false expectation through false accounting, a just government will expediently reveal its inadequacies so as to minimize their cost to those who will ultimately answer for them, the private sector.

Falsifying interest rates and violating the rules of accounting merely delays the inevitable: The physical bill will come due, and the Universe will choose none but the private individual to be its recipient.

 

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