Thursday, 21 July 2011

The Austrian School Of Economics Refuted

Value exists only in relation to an objects utility.

The most valuable objects are energy producers.

Those objects that provide energy for social or individual use are those with the highest value.

The basis of all existence and evolution is energy.

The value of a commodity is equal to the amount of energy required to produce it and the remaining amount of imbedded energy that is capable of being released from it.

From the individual to the social organism, the entire basis of both is energy.

The object with the most value in our modern society is cheap oil.

It is not gold.

Gold is merely a mechanism to enable individuals to trade for objects with value.

Gold has no value in itself.

Neither gold nor Fiat Currency have any value.

When the oil runs out, then liberalism and the liberal consensus will fall.

The liberal social consensus is merely an aspect of cheap oil.

The entire basis of economics is predicated on false foundations.

The New Economics will be based on the foundations of the laws of Thermo-dynamics and entropy.

GDP will be replaced with EDP - Energy Domestic Product.

Those nations that provide all their own internal energy needs based on sustainable and renewable sources, and who generate an energy surplus they can trade with other nations for commodities, resources or capital, will dominate the planet economically and militarily in the 21st century.

Green Energy Projects allow us to attain national energy security and energy self
sufficiency goals.

Economics must be predicated on the production of energy, and a nations economic strength based on its ability to generate its own energy needs and export a surplus.

With energy costs to rise as oil supply depletes over the next century, then the nation that has ensured national energy self sufficiency will dominate the global economic system.

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Anonymous said...


You may not realize that you just contradicted yourself.

If we adopt the method of valuation that you yourself provide, "The value of a commodity is equal to the amount of energy required to produce....", gold and fiat currency will have different calculated values.

Clearly then, they cannot both have a zero value.

Defender of Liberty said...

As objects of value in relation to their intrinsic utility, both have zero value.

But in relation to the mining, refining and manufacture of gold bars and coins - then in fact gold has massive NEGATIVE VALUE, in that the energy required to create it is massive.

Paper currency also has a massive negative value as regards its manufacture and also fractional reserve use eg 1 dollar = 12 dollars of credit.

Both have Negative Value - not value.

Value is based on the new energy the object can produce and release for man to use above that of the energy used in its manufacture / production.