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Saturday, March 22, 2014

The Winkle Theory of Economic Realitivity- The Bare Truth About Economics

The Winkle Theory of Economic Realitivity

The Bare Truth About Economics

Contrary to what most economists, account managers, and accountants tell you, Economics is not a science. 

Economics is a combination of lying, number fudging, psychology, and manipulation of reality on a grand scale of a fabricated fiat values system.

Basis of an Economic System

This value system can be based on any number of things- time (The Time Exchange), ideas, paper currency, metal discs, fruit, sea shells, or even rocks. Currently, the world's economic system is based on numbers that have no basis in reality.

Fabrication of Accounts, Details, Facts, and the Truth

Every government hides the truth that government reports are built on predictions, assumptions, and fabrications. This makes fudging the numbers easier to do. Employment numbers are fabricated by government auditors, bookkeepers, and auditors regularly hide assets or shift entry numbers to make a government or business look more stable than it really is. 

Cheating

People all over the world use creative accounting when they file tax reports. The root cause of this breakdown in ethical behavior is that the taxpayer sees a majority of their tax dollar being wasted by government employees. This tax cheating is an expected response to that waste of government employees, contractors, and contractor employees.

Tax cheating is a citizen's way of expressing displeasure with the waste, fraud, and corruption of their government. 

On a similar note, employee theft is greatest at companies/corporations where employees feel unimportatnt and unappreciated. Employee theft is an employee's way of balancing the ethical books. Employees see executives and manager stealing from the company and treating their employees like servants (slaves) and rebel a little at a time.

On the government side of the equation, deals are cut between contractors, contracts are padded, and funds are thereby stolen from the government and the citizens of the country. This is treason at the very least.

Artificial/ Internet Currencies

While Bitcoin's attempts to replace the present digital currency, there is one factor that will ultimately lead to Bitcoin's demise and failure. Bitcoin will fail due to what is called "the touch factor."  The psychology of "the touch factor" is this. In our current economic system, people must see, hear, touch, smell, and even taste the currency to have faith to use it in transactions. 

The problem with Bitcoin is that you cannot 'touch' a virtual currency that is only digital. You can only see the currency over the internet or other technology. It is not tied (anchored) to any other stable currency value. Thus, there is no inherent psychological stability to the value or price of this digital currency intruder.

War

As for war being the most destabilizer of any economy, there is no equal. The uncertainty of the outcome, the amount of damage to infrastructure, the loss of life, and the cost of rebuilding must be weighed beforewar is declared. 

The long range approach  to loss forecasting must be used to estimate 40 years of economic impact and evaluate the potential for war vs. status quo outcomes. It must be acknowledged that no one wins a war. No one dies until it is their time to die. There are survivors of course, but they all bear the cost and economic loss of a war. 

In peacetime, economic growth can be managed and become more stable. Human rights imbalances can be remedied and previous injustices compensated for. Society grows more secure and advances five times faster in peace time than it does in a time of war. 

If countries embraced peace and focused their resources on solving environmental problems, equality issues, and human rights issues instead of wasting money trying to perfect the latest way to end the life of citizens of other countries, our society would advance at a faster pace towards a utopian society.

War takes the economy of a society ten steps backwards while peace and its benefits take the economy of a society ten steps forward. Since 1930, there have been hundreds of trillions of dollars and millions of lives wasted on wars that could have been prevented. 

Conclusion

The economic stability or instability of a person's life is fertile ground for either the advancement of a person's dreams and goals in life or a roadblock of that person's dreams and goals. Economic unstable people do not advance in life. 
Economically unstable societies regress and eventually collapse as a result of the inequality and instability of the societal unit. This rule applies to every type of economic unit including relationships, friendships, marriages, families, companies, corporations, and countries.

When the inequality/imbalance of an economic societal unit becomes unstable, the balance must be reset and restored or the economic societal unit will collapse.When an economic societal unit collapses- struggle, war, and the strife against one another is the end result of the continued inequality of the economic societal unit. Time, money, and lives are wasted as a result of economic inequality.

Mark Winkle- Founder/CEO
The Winkle Institute for Worldwide Economic Stability
(c) 2014

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