On Following Paths and the power of tools

In the last few days, I may have seen the beginning of the decline of the monetary system, the end of the banking system and that of the role of central banks.

Money has been around for at least as long as the Egyptians and probably longer. In its time, we have seen what happens when money is not tied to production (German hyperinflation after WW1 and others) as well as other deformities that can happen to the economic system. These deformities usually lead to chaos for the participants of an economy and untold suffering.

Central banks, probably the best informed of the risk of financial disorder and their causes, have been given, by history and acquisition of knowledge, roles that they play in the economy. They know, should the path set out for them, not be followed, then the outcomes can be things like hyperinflation, or even a loss of government. The tool of government also effects Government.

Tools have this effect.

Tools are the technological marvels that we created to help us do what we want. But by creating them, we also are affected by them. Some of these tools aren't even real but are purely information. For instance, the code of laws that prescribe human actions, or even knowledge of how a virus multiplies. It brings knowledge and wealth and is also a wealth.

The bounding parameters of a charter, constitution, law or even a set of rules to play a game is also a tool. Even though it is only an information tool, its effect can be so profound as to determine even the wealth of an economy.

For instance, the New Zealand Police have a law against murder. It usually results in capital punishment of one sort or another. Only in extraordinary circumstances can this law be nullified. Unfortunately, this codification (a pure informational system), is not adhered to on a general basis. It is held high, but not higher than that of real action and hence one can hear the screams and cries of those who are the unfortunate victims of this injustice. What are some of the outcomes?

I have observed a number of evils one of them the following. At least some part of the NZ Police force, small though it is, have tried to incite rape on a minor by an adult , the adult being the parent of the minor. They do this by, in group, and usually when the parent is asleep, and in the same bed as the child, inducing an erotic dream in the adult. Fortunately, the adult eventually awakes. But in some families, this may not be enough.

To a laymen, the word police, indicates justice and the law. If the police were now to not follow the path set out for them, is the outcome chaos? Well one outcome is a diminution of the mana the public gives to the police. Now that one of the primary legs upholding the ideas of law and justice is removed and things unexpected from a police force is being performed, one can imagine the eventual breakdown of law and justice. Money after all is a significant driver of actions. What is to stop a small police unit say in the outback of Australia from incarcerating a farmer, for want of the land, for a rape that has been induced by the police and actioned by the farmer. One can imagine other evils.

What then with something even larger than the police. The economic system, after all, is an infrastructure without which even the police would not be able to function. There would be no term for police, only warlords.

Imagine, if you will, what would happen if the reserve bank gave everyone the right to make money. This need not be a right given in law, only in reality. Now their reason may be that they did not expect the probability of this to be significant. Who could after all invest in such an amount of machinery to make this possible. And they would probably be right if this was the 19th century.

In the 21st century, the economic system, the monetary system in particular, is tightly tied with information technologies. This means that even a small laptop, tied into the engine of the monetary system in precisely the right way, can not only create instant risk free money wealth (just by redistributing small amounts from a large number of bank accounts), but can also create money. This is because some part of money lies outside of the banking system and it is not impossible to change digital accounting records in such a way that all accounts are balanced.

What I observed was a foreign government agency doing something that leads me to conclude that the ability to create money, and of course reroute money (the easier problem) is not outside what they are capable of. This foreign government agency was intimately tied to the NZ Police and is probably a department of the NZ Police. Furthermore, this information became known to a certain large bank in Malaysia.

I also observed that the one party was not responding to the party hurt in an appropriate manner. At the higher levels of the economy, an appropriate manner should be a manner in which the infraction cannot be forgotten. A manner that leaves an incentive to others, and itself, to not do the same, or anything like that action again, especially when the level of risk means something like the failure of the economic model. As an accountant, the only means I see that fits an appropriate manner is a perpetual payment with the purpose of investing in countermeasures that eliminates the possibility of failure of the economic system. After all, wars have used the monetary system as weapons to bring down economies.

So here we are. A very small and unassuming tool from the 21st century, like the invention of artillery, has created a very efficient method for destabilizing even a government. It is not a bomb, nor some intrinsically destructive tool. It is a low cost, extremely empowering and efficient tool that is available, and at an exceedingly small fraction of the cost of the monetary system, to millions of people. It is a tool that is capable of whipping the monetary system and in any direction it desires. It is available to at least every country on the planet, and a great number of heads that run whatever departments in those countries. This makes it available in the millions.

It is not possible that every component of the monetary system be monitored. The only action available to a serious monetary system is action based on their path. Their reason for existence.

My observation indicates that this may not be the thought patterns that central banks and banks hold. Moreover, this is a binary problem. It is either yes, I am the master of the monetary system, or no, I am not the master of the monetary system.

The outcome is yet to be told.