THE RECORD
April 26, 2000

Fiat Lux

by Ed Deak

One of my interests is comparative history. The comparisons between actions and events through the ages and of similar events happening now. I have been doing this since the end of WW2, or about 55 years. All through these years I was searching for the common denominator of history's mistakes and the causes of major tragedies. It took me 40 years before I found it in 1985 in a textbook on economics. The common denominator is and has always been the misdefinition of economic efficiency.

The book in question, which I still have and can quote verbatim, defined economic efficiency as being similar to engineering efficiency on page 20. However, on page 120 this definition was changed to "when expressed in Dollars and cents terms" or in other words in monetary figures.

This is totally false, or even fraudulent, because engineering or physical efficiency is based on the principle of the most output, or work done with the least resource/energy inputs. These in and outputs are measured in strict, unalterable figures representing the same realities, under any measuring system, anywhere on Earth.

Physical realities could only be expressed in monetary terms if we had a monetary system established and tied to the same rigid, representative figures as we have with any other system of weights and measures. We don't have this. There was some kind of an order under the gold standards, but since the value of money has been removed from any kind of public control and handed over to the mercy of international speculators, money has become a criminally irresponsible confidence racket.

We know what the amount of a litre of water, or milk, or gasoline represented yesterday, or today and we also know what it will be tomorrow, or ten years down the line. We also know how to convert that amount into pints, gallons, or whatever. We also know the length of a piece of cloth when expressed either in millimetres, or inches, or yards. What we don't know is what dimensions a dollar will be able to buy tomorrow, let alone years down the line.

The correct dimensions of weights and measures are under strict international and national controls, constantly checked and enforced by laws everywhere on Earth. What no government or society can enforce is the fact that these dimensions, when used for commercial or economic purposes become infinitely variable. All economic dimensions, weights and measures can be changed through the manipulations of monetary values of the goods and even the value of the money itself.

The sizes of the dimensions of goods we buy for certain prices is in the hands of a ruling class who use their powers not only to fill their pockets, but to control the lives of millions and whole countries.

These examples show that monetary values do not exist, in fact even our money doesn't exist except in our imagination. Yet, these perceptions, like the power of old time religions can be used to benefit, or destitute, or even kill millions to serve the interests of a ruling class. If monetary values are nothing more than temporary perceptions, how can economic laws be based on them?

Every time we open up a paper or watch the news we can read and hear economists and politicians claiming that certain cuts, downsizings and restructuring of companies and governments are being done to achieve greater efficiency. Having studied this question for many years all I can say is that anybody who believes that economic efficiency can be expressed in monetary terms is either a fool, or a crook.

Our economists and politicians remind me of a bunch of drunk surveyors fighting each other to divide up the globe and decide who will live or die with tapes made of rubber bands, while billions are begging and bribing them to pull it their way.

I shall return to the facts of economic efficiency in future issues, but for closing I would like to mention that since my last column there was also a revolution with general strikes and number of people killed in Bolivia over the attempted privatization of the public water supply by the government. Under the new rules, the US owned Bechtel Corporation was going to charge something like $20. for a month's water supply to people who are making $100. Martial law and curfews were imposed by the government, but finally the people won and Bechtel pulled out.

Well, we don't know what dirty games are going on behind the scenes, but at least this is what we heard today. So, where was the Canadian media to report these events?

Copyright (c) 2000, West's International