Power & Moral relativity

One of the more controversial figures of Ancient Athens was a man named Protagoras. A contemporary of Socrates, he taught aspiring young men the arts of argumentation and oratory so that they could advance in Athenian politics. We discussed last week how he and his colleagues would teach their student to win debates with the weaker case through sophistic arts, but there was more to Protagoras than just a teacher of rhetoric. He was a first class philosopher who insightfully perceived and articulated the foundation of a school of thought that would eventually underpin Keynsian economics and the practice of money debasement. Understanding that thought can do much to give us perspective today on economic debate. Indeed, every significant debate in history has been a clash of worldviews inspired by this fragment from Protagoras’ teaching

      “Man is the measure of all things.

           Of things that are, that they are,

               of things that are not, that they are not.”

Scholars recognize that Protagoras intended the statement to be applied to matters of human endeavors and interpretations. His notable example of the concept is the question of how warm or cold it feels. This author grew up in Phoenix Arizona—a city with temperatures that regularly hover over 110 degrees. So I rarely felt “hot” during the years I lived in Ohio while others were complaining about the heat. 

The philosophy (worldview) embedded in this classic statement has become known by a plethora of names, the most widely used is Constructionism , or social constructionism. (I’ll use the term “worldview instead of philosophy for clarity hereafter.) Nobody should be confused by this term. Simply put, all of us create or construct meaning about the nature of everything. In the United States, dogs are our pets, friends, companions and co-workers. But in China, Old Yeller is on the menu and considered a delicacy. An enterprising young Chinese man breeds them and takes a load to market, while a young woman in Kansas breeds and sells “goldendoodles” as upper class pets. Who is “right?”

       

Another “thing,” and one dear to our hearts, is money. Various societies have constructed money from any number of things, sea shells, livestock, split sticks, precious metals, paper notes.

Mike Maloney and Niall Ferguson have produced some excellent documentaries on the history and function of money, showing what makes one currency stable and another unstable. No need to review that here. Crypto currency comes to mind as a modern example. Here is 4 hours of history to watch, if you have an interest in such things

Sometimes it is helpful to recognize the philosophies behind the things we rant about each day. Let us look closer at this underlying worldview of Constructionism. It has been distorted and misapplied to venues where it has no business and is currently being used to undermine much of our society.

The Constructionist holds that all human values and beliefs are arbitrary, that good & evil, right & wrong are simply “rules” agreed upon by individual societies, that things we value have evolved as useful, not that there is any inherent value in anything. Religion and god have been “constructed” by elites to control the population. They do not take this view to absurd extremes, but apply it strategically in regions where human will and interpretation have high definitional utility.

The Essentialist holds that there are “measures” that are concrete, set in stone. Truth is established outside the whims and motives, and tastes of people, established by nature, aesthetics, laws of science, human nature, and God,  to name a few. Religion was handed down by God to ensure stable societies. Things and people have a basic “essence” that allows us a predictable society. Scientists generally fall in this camp, seeking universal laws that govern the natural and social worlds.

These two competing worldviews go by many names

Social Constructionism

  • Post structuralism
  • Anti-foundationalism
  • Post-Modern condition
  • Constructivism
  • Moral relativism
  • Nihilism
  • Arminianism (don’t get mad at me)

Essentialism

  • Structuralism
  • Foundationalism
  • Modernism
  • Scientism
  • Objectivism
  • Logical Positivism
  • Calvinism (yes, theology too)

These two worldviews have been struggling for ascendancy for two millennia. They find expression in every field of human endeavor from the humanities, the sciences, to religion. It is always the same struggle. One view believes that humans construct meaning and rules, while the other view believes that truth is fixed and we must discover it.

Keynesian theory is a constructionist worldview applied to money. Austrian economics takes much more of an essentialist view. We gold bugs are essentialists when it comes to money, stubbornly clinging to the surety and scarcity of our barbarous relics. Keynes, Krugman & Bernanke teach that money is created—created by human will through their wise and benevolent leadership. But are they consciously duping us?

The wild card in all our human efforts to build societies and stable media of exchange has been “power.” Long ago, those who gained power learned they could apply their constructionist views to currency creation and fool the essentialist general population for a while. The debasement of money into a fluctuating currency works, for a while, until essentialist laws of economics conquer the propaganda required to maintain belief in debased currency. And make no mistake, without the controlling power of the mainstream media, paper money wouldn’t have had a chance.

Now, I am not totally dissing the constructionist worldview. Many aspects of human life are indeed agreements between people, like whether bunnies are pets or a food source. And such decisions are often driven by need.

You recall that Ben Franklin desired to have the turkey be the symbol for the fledgling United States. There is some wisdom in that symbol—the turkey represents prosperity and bounty. Instead the US adopted the bald eagle—a raptor that feeds on carrion, not unlike the US war machine and Halliburton led corporations that feed on the carcasses of nations we have conquered. Ironic, isn’t it?

While the debate over bunnies has merit on both sides, the dangers of a socially constructed currency should be obvious to all.

What I see in play in the world today, from a philosophical perspective, are a group of powerful sociopaths and their sycophantic minions who seek world domination. They use the worldview of the constructionist to justify their plans & schemes, but at heart I do not believe these people are human enough to recognize the greater rules--that whate we believe about "things" ought to preserve society, rather than enslave it. Perhaps sociopaths have remnants of alien DNA in their genes that pushes them toward hubris, and self-centered goals. Now there is an essentialist perspective for you! Well, we all have our cross to bear.

Currency is what those in power say it is. These people have the power to confiscate, to imprison or kill. They manipulate the value of currency to their advantage and place themselves in the position to benefit from its inevitable inflation effect.

At heart, these world “leaders” may actually be essentialists, valuing commodities like gold, land, energy, and control over necessary resources. Yet, they believe they are fundamentally superior to other humans and thus have the right to rule over us (essentialism if I ever saw it!).  Meanwhile, to the rest of us, these world leaders promote the ownership of paper and cheap plastic goods, purchased with their bank loans. They promote constructionism as the dominant worldview in most academic disciplines—all of the humanities, many social sciences, and certainly business ethics, economics, political science (he said political science, ha!).

Perhaps moral relativism (both feet firmly planted in mid-air) stands as the most dangerous version of Constructionism. Right and wrong are determined by society (or the political influence of sociopaths)—they are flexible categories that shift from generation to generation. Often political pressure actually changes science, with essentialist research being rejected by journal editors and the latest politically correct research getting published and promoted.

Moral relativity pervades business ethics. There is no right and wrong—only legal and illegal. So the sociopaths simply influence the lawmakers, change the law, or have their corporation take a slap on the wrist as their personal punishment when the fruits of greed are too tempting. Whatever you can get away with! Might makes right! Political donations to sociopathic minions are legal, so donate and buy the influence.

I cannot think of a more foolish combination—to allow sociopaths to socially construct money, then corrupt our ethics and justice system with moral relativism so they get away with anything they like.

Every society that has embraced this path has failed.

My point is this: socially constructed money, created by sociopaths with no accountability to any ethical system, was a bad idea. They will destroy modern society as we know it. I’d keep stacking if I were you, regardless of the paper price set by these sociopaths.

Protagoras might be proud of Keynes. But this dangerous philosophy of constructionism was thoughtfully and consistently attacked by Plato, inspiring the Athenians to burn most of the scrolls that espoused and taught this philosophy. I’d bring the matches to a burning of Keynes’ and Krugman’s writings today.

Flame away.

104 Comments

ancientmoney's picture

Opposite of last?

Yup!

achmachat's picture

good morning!

don't mind the sell-off in the futures market.

Be right and sit tight. very tight.... 

who wants to go fishing?

Dr Jerome, being the self-respecting architect that I am, I've got that Escher drawing framed in my living room.

sierra skier's picture

Thurd

This has been a while. It is a Thurd day morning and we are on the road shortly.

AlienEyes's picture

Looks like the bottom fell out.....

Methinks today might be a good and proper buying day.

Excellent post, Dr J !

erewenguy's picture

George says -

"Let us with caution indulge the supposition that morality can be maintained without religion. Reason and experience both forbid us to expect that national morality can prevail in exclusion of religious principle. "

~George Washington

ag1969's picture

Is this a celebratory smackdown?....

too celebrate super whore thunderlips scoring a new gig as a reward for his blatantly violating his responsibility to the people?

http://www.zerohedge.com/news/2014-04-14/bart-chilton-joins-americas-largest-law-firm-policy-advisor

So what can a guy do?  Why buy silver of course!  So I bought this:

and this:

and this:

ancientmoney's picture

Read these essays by Gorton . . .

The founder of Limewire.  He has the wealth and time to do his own research.  He finds that since JFK's inside job, the power elite have had to commit more and bigger crimes to cover up those in the past, to the point where everything now if fraud-ridden and the system crime-ridden.

http://gawker.com/the-astounding-conspiracy-theories-of-wall-street-geniu-1561427624

silver66's picture

Bang On

No need to flame away Dr J.

This article speaks to the vanity of man. The idea that we are the ultimate power and there is no greater consciousness or higher power

Very good article

Silver66

today is a stacking day :-)

AIJ's picture

Irrational Man

By William Barrett.  Essentialism vs Existentialism.  A good read.

http://www.amazon.com/Irrational-Man-Study-Existential-Philosophy/dp/0385031386

ag1969's picture

Nice work Dr. J

Kind of reminds me of Bastiat:

“When plunder becomes a way of life for a group of men living together in society, they create for themselves in the course of time a legal system that authorizes it and a moral code that glorifies it”

― Frederic Bastiat

Bastiat developed his theory in a dozen or so articles and chapters of books that he wrote between the end of 1845 and mid-1850. From these scattered writings I have reconstructed his theory of plunder as he might have done in his History of Plunder:

There exists an absolute moral philosophy which is based on natural law. Natural laws are partly discovered through the scientific, empirical observation of human societies (by means of economics and history) and partly through divine revelation [Bastiat drew on his deism and his moral Christianity]. This moral philosophy applies to all human beings without exception (especially to kings and politicians). There are only two ways by which wealth (property) can be acquired: first, through voluntary individual activity and freely negotiated exchange with others (“service for service”) by individuals called “the producers”; second, through theft (coercion or fraud) by a third party, which he called “the plunderers.” The existence of plunder is a scientific, empirical matter revealed by the study of history.The plunderers have historically organized themselves into States and have tried to make their activities an exception to the universal moral principles by introducing laws that “sanction” plunder and a moral code that “glorifies” it. The plunderers also deceive their victims by means of “la Ruse” (trickery, deception, fraud) and the use of “sophisms” (fallacies) to justify and disguise what they are doing. It is the task of political economists like Bastiat to expose the trickery, fraud, and fallacies used by the plunderers to hide what they do from their “dupes” (the ordinary people) and to eliminate organized plunder from society for good.

http://www.fee.org/the_freeman/detail/frdric-bastiat-on-legal-plunder

Dr Jerome's picture

Where is the gold

Is there too little gold to "pay" for this smackdown? A ten ton drawdown in the GLD will be telling.

Perhaps they will have to buy back these shorts before they must deliver. I suppose they know precisely how many longs there are to be fleeced, who holds those long contracts, and where their stops are set!  Perhaps they are trying to refute the GOFO thesis and its worth the cost to them. Oh, but the markets are not manipulated.

Maybe Trader Dan decided to dump his gold holdings at 8:26 this am? He should have spread out his selling so his own trades wouldn't drive price lower. He ought to know how these fundamentals work.

I Run Bartertown's picture

Dr. Jerome

"Perhaps moral relativism (both feet firmly planted in mid-air) stands as the most dangerous version of Constructionism."

Is this 'driftiness' what accounts for their inability to recognize the monsters they create? They identify a problem that anyone should be able to identify as a direct result of their own philosophies. Then if they can't pin it on the opposition, they treat it as a mysterious new challenge that only more of their policies can fix. Anyone who stood in the path of their predecessors remains bad, bad, bad (despite being proven right again and again).

El Gordo's picture

Apparently I...

...somehow wound up on the sophisticates page rather than the dumb ass pages that I normally frequent. 

Urban Roman's picture

Good afternoon,

achmachat, you can stop buying treasuries now. I'm shocked.

Mr. Fix's picture

Gold Futures Halted Again

Gold Futures Halted Again On Latest Furious Slamdown

Submitted by Tyler Durden on 04/15/2014 - 09:30

It seems the two words "fiduciary duty" are strangely missing from the dictionary of the new normal's asset management community. This morning, shortly before 8:27am ET, someone decide that it was the perfect time to dump thousands of Gold futures contracts worthover half a billion dollars notional. This smashed Gold futures down over $12 instantaneously, breaking below the 200DMA and triggered the futures exchange to halt trading in the precious metal for 10-seconds. Palladium also got clobbered and was also halted. This is gold's worst since Bernanke 'tapered' in December.

metalsbyamile's picture

Great article Dr J

Hope you lightened up on your miners.

Looks like the cyclical charts are doing its followers well.

Last post i made said stops at $1304 with a weak buy in place. Caution maintained. We saw that $1330 must hold  to bull position short term. Longer term buyinging shouls be June July or August. It is looking more and more to me as if July is our stack and add month.

Cheers, GLTA.

Dr Jerome's picture

Bartertown

Problem, what problem? All I see is a mysterious phenomenon. We'll hire some PhDs to research this situation and bring a report to our commission next year. Any media journalists who dare run a second story about it before our official conclusions are in will be terminated.

AG1969, that Bastiat fellow sounds quite enlightened. I have not heard of him.

Metalsbyamile, Fraid not. I held tight overnight. My retirement platform does not offer after hours trading and I expected them to at least stay flat by today and continue grinding upward. Alas.

If only the sociopaths were this easy to pick out of a crowd.

ivars's picture

In face of Rock Roth

In face of Rock Roth agreement to share powers via moving China/Russia/Ukraine into Roth new money supply Empire sphere, Ukrainian attacks in East Ukraine just confirms actions according to the plan which will lead to faster and more final execution of attaching Russia and Ukraine to China (Roth ) monetary empire. Hence its quite logical gold prices drop in spite of increased tensions and war and sanction threats.

Roths are pleased, pressure on  USD is relieved, gold price drops.

achmachat's picture

Urban....

if you only knew.... Belgium has HUGE budget problems! They don't have any funds left to keep their highway lights on during the night.

I can promise you that these treasuries are NOT bought by Belgium, but rather IN Belgium.

It's all a joke.

Verus nemo's picture

Great article, Dr. Jerome!

"Flame away"? Are you kidding? that was a great article. Thank you, Sir!

Regarding Bastiat, go find a copy of his seminal work, The Law. It's a small book that can easily read in but a few hours and you won't regret doing so.

ag1969's picture

Verus nemo

I couldn't agree more on reading "The Law" so here it is:

http://mises.org/books/thelaw.pdf

woofwoof's picture

The Law

Verus nemo's picture

Thanks, folks

I knew that his work was available online somewhere but was too lazy to go find it and suggest the URL. I bought a hardbound copy back in the 1980's when I was a member of FEE that ag1969 pulled from and have loaned the book out many times to local friends----some of whom I'm proud to add are now Turdites today. :)

Dr Jerome's picture

Belgium

Lemme get this straight: the Fed prints dollars and loans them (A) at low interest to the government to keep the budget deficit going, then (C) they print more dollars, send them to the mystery trader in Belgium who keeps (B) buying treasuries so that the dollar does not crash (h1) because (h2) we print too many. Something does not add up. Sounds like a perpetual motion machine, except this is not a closed system.

I am truly confused.

Meanwhile, Asia, Russia, the Mid-East, and other smart people are buying gold.

Edit: Thanks for the Bastiit tip and link. I think I may just go read today.

2nd Edit: Man I love this edit button so I can fix all my typos.

3rd Edit: Is gold trying to crawl back?

4th Edit: I love this quote from Bastiat: "It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder. "

Libero's picture

Either-Or

If you have to choose between moral relativism and moral absolutes you fail the mission.

The world begins with moral absolutes (the right way to god) but being human (history) is itself an exercise in constant changing morals.  The mission is to keep evolving towards the absolute and yes, I believe we are doing that. 

Wars (disgreements) are fought over which choice is better (truth is relative or truth is absolute), as if we are outside of the human condition and can actually choose one over the other.

Mantis's picture

Great post

Your posts are getting better each time :)

Thats some smackdown! They'll have to do better than that though. Silver is looking increasingly likely to blast off through that red resistance line in next month or two.

benque's picture

Doc J,

What a wonderful post you have written!  I thoroughly enjoyed reading, and learning from it.  All the related posts by others are equally appreciated

With regard to: ""I love this quote from Bastiat: "It is impossible to introduce into society a greater change and a greater evil than this: the conversion of the law into an instrument of plunder. """

I would say that the greater evil is the perversion of the people to blindly ignore such conversion, by the distraction of turning immorality into the "new" morality.

Occasnltrvlr's picture

Thanks, Dr Jerome

It's good to learn something.  Before this, if I'd heard or read someone say "constructionist," I'd have thought of Mr. Fix.

Urban Roman's picture

Actually Dr J,

Your siphon mechanism will stop when either one of two things happen:

  1. Water level in 'B' gets below siphon tube and it starts sucking air;
  2. Water level in 'C' rises until it equals level in 'B', where equilibrium is attained.
buzlightening's picture

black magic western illusionist

hangin on by a rats whisker, while both bears; Russia & China are firing up their paper ASSets to ashes daily.  We move closer to the awe f it moment, where those fighting for their western financial rat bastard lives, give way to the all consuming power of real genuine collateral; assets of substance.  US & Ezero have nothin to offer for more ability; debtto borrow our paper western ASSet to prosperity.  The gig is up and no mortgages for US property, as the Bundy Ranch, to offer the grizzly/rabid panda bear nations in more debt expansion.  Imagine the western EEE trying to sell to other nations what they don't own. (An illegal ploy of naked shorting for all commodities to go from west to east and now even our lands).  goons are goona swiftly place all of America beholding, if not already there,  to our bear creditor nations and the foreclosures are upon us.   dirty harry reid rat can't hand over bundy lands to corp chicom.    Many of the elitist power broken western rat bastards are being pushed back by real American patrtiotism.  We are more than they.  Let us mass to where ever the battle may be out west.  Guns are numjerous and ammo even more numerous, than all the standing army left to do the dirty harry reids of DC theft shuffle of our lands.   Let the rats, roaches, and vermins, a western spokes person for the people said:  fire the shot heard round the world while we westerners fire all the rest.  That a line has been drawn in western lands is no surprise to me.  We the people out west, will not allow the rat bastard bankstering gov goon parasites steal our land, constitutional rights, or God given liberties.  We are free to choose and we choose to fight and will run these rat bastard scum out of the rockies; regardless the letting of blood.  Let the gov goons begin, so we the people out west may end tyranny here.    Once tyranny killed out west, don't forget where your constitutional freedoms yet live.   Join us now or later, cause tyranny dies out west 1st. 

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