"Good things lie ahead, I think."

[From Bill Williams 4 Feburary 2004 8:30 PM CST]

[From Bill Powers (2004.02.04.1219 MST)]

[From Rick Marken (2004.02.04.1025)]

Good careful work, Rick. I like the way you check things rather than taking
them for granted --

# But, lets not get over confident again and make more "giant leaps in the
# wrong direction. Remeber Rick, a thousand atta boy's, can be wiped out,
# by one "aw shit."

This is building up a nice backlog of studies of the data base. Keep all
these things handy. I can see a collaborative paper in the not-so-distant
future, led by a genuine economist, but strongly based in PCT.

# Bill's making another of his thinly diguised attacks upon Bill Williams
# Apparently after all these years walking around, wearing a sign board
# that says "Ph.D" I am not after all a "genuine economists." I think
# Bill Powers is suffering from a minor bi-polar disfunction that prevents
# him from deciding if I am wrong because I know too much economics or too
# little. In either case, I think it is as he has charged my air # of # "superiority" that really flicks the scab off.

I'm reading Charlotte Bruun's thesis, in particular the chapter on Money,
and learning a lot.

# No doubt about it, a "credentialized expert" on money and credit is likely
# to know more than would Linda Marken who works in the personel department.
# The "credentialized experts" rarely work in personel departments.

···

#
# I can't wait until you get to her chapter on the theory of income, where
# she says, among other things:

Charotte Bruun 1996 _Logical Structures and Algorihmic Behavior
  in a Credit Economy_ Ph.D. Thesis Department of Economics
     and Public Adminstration Aalborg University

     "Money flows have their own logic." p. 71.

     "The growth in real wealth must be equal to aggregate
      savings." p. 87

[May I rewrite this for you in terms of:

         dK/dt = In

    and

         dK/dt = S
]

      "This is the exact same definition as
       Keynes user cost in his General Theory, thatis

           I = S

           p. 87.

# I really think we ought to take up a collection so that Rick can fly
# over to Denmark and Explain to the poor girl that she, all her misguided
# professors, and to begin with Keynes, simply didn't understand what is
# obvious to a home bred American crank. Namely that it is obvious that
# Y does not equal C + S, and Y does not equal C + I, clearly as any
# ignorant fool, { was I confused or was this actually your self description?)
# can see Y must equal C + S + I.
#
# If only if I could be there as a fly on the all, with a super min-camcorder.

One thing I have learned from her is that TCP was quite
correct in saying that the composite producer simply created money when it
was needed. His rationale, as I recall, was that the banking system is
simply part of the composite producer, the part performing the service of
creating and storing money, and charging a fee for doing so. This idea was
taken by some as a sign of his senility,

# I just don't get it. Should the imps "withhold information" or in a slight
# corruption of an old slogan, "Speak truth to Power[s]."

Bruun also concludes that it is necessary to conceive of the agents in the
economic system as purposive, rather than as rational (driven by logic).

# Maybe you can get her to explain then whey the "agents" in her model are
# rule based logical agents rather than little control systems.

# "Good things lie ahead, I think." I think so too, the question, however,
# might be how much fun can I stand. I wouldn't want to laugh myself sick.

# I think so too. There is so much that you and the Professor can learn from
# each other. I suggest you explain to her why income really equals
# consumption plus savings plus investment. This is a discovery that has the
# potential to revolutionize higher theoretical economics.
#
# lift your sights to the stars, well to Mars anyway. At long last Keynes'
# elementary blunder will be corrected.
#
# Think of installing an extra phone line so the call from Stockholm
# won't be delayed by a busy signal.
#
# You probably were old enough to remember President Hoover's speech
#
# "Prosperity is just around the corner."

Bill Williams