Power & Moral relativity

Tue, Apr 15, 2014 - 8:11am

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

The Ascent of Money: A Financial History of The World by Niall Ferguson Epsd. 1-5 (Full Documentary)

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)


  • 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.

About the Author


Apr 15, 2014 - 8:18am
Apr 15, 2014 - 8:28am

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
Apr 15, 2014 - 8:29am


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

Apr 15, 2014 - 8:51am

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

Apr 15, 2014 - 8:54am

Looks like the bottom fell out.....

Methinks today might be a good and proper buying day.

Excellent post, Dr J !

Apr 15, 2014 - 9:19am

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.


Apr 15, 2014 - 9:19am

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?


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

and this:

and this:

Apr 15, 2014 - 9:22am

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 :-)

Apr 15, 2014 - 9:42am

Irrational Man

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


Apr 15, 2014 - 9:42am

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.


Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

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Key Economic Events Week of 10/14

10/15 8:30 ET Empire State Fed MI
10/16 8:30 ET Retail Sales
10/16 10:00 ET Business Inventories
10/17 8:30 ET Housing Starts and Bldg Perms
10/17 8:30 ET Philly Fed MI
10/17 9:15 ET Cap Ute and Ind Prod
10/18 10:00 ET LEIII
10/18 Speeches from Goons Kaplan, George and Chlamydia

Key Economic Events Week of 10/7

10/8 8:30 ET Producer Price Index
10/9 10:00 ET Job Openings
10/9 10:00 ET Wholesale Inventories
10/9 2:00 ET September FOMC minutes
10/10 8:30 ET Consumer Price Index
10/11 10:00 ET Consumer Sentiment

Key Economic Events Week of 9/30

9/30 9:45 ET Chicago PMI
10/1 9:45 ET Markit Manu PMI
10/1 10:00 ET ISM Manu PMI
10/1 10:00 ET Construction Spending
10/2 China Golden Week Begins
10/2 8:15 ET ADP jobs report
10/3 9:45 ET Markit Service PMI
10/3 10:00 ET ISM Service PMI
10/3 10:00 ET Factory Orders
10/4 8:30 ET BLSBS
10/4 8:30 ET US Trade Deficit

Key Economic Events Week of 9/23

9/23 9:45 ET Markit flash PMIs
9/24 10:00 ET Consumer Confidence
9/26 8:30 ET Q2 GDP third guess
9/27 8:30 ET Durable Goods
9/27 8:30 ET Pers Inc and Cons Spend
9/27 8:30 ET Core Inflation

Key Economic Events Week of 9/16

9/17 9:15 ET Cap Ute & Ind Prod
9/18 8:30 ET Housing Starts & Bldg Perm.
9/18 2:00 ET Fedlines
9/18 2:30 ET CGP presser
9/19 8:30 ET Philly Fed
9/19 10:00 ET Existing Home Sales

Key Economic Events Week of 9/9

9/10 10:00 ET Job openings
9/11 8:30 ET PPI
9/11 10:00 ET Wholesale Inv.
9/12 8:30 ET CPI
9/13 8:30 ET Retail Sales
9/13 10:00 ET Consumer Sentiment
9/13 10:00 ET Business Inv.

Key Economic Events Week of 9/3

9/3 9:45 ET Markit Manu PMI
9/3 10:00 ET ISM Manu PMI
9/3 10:00 ET Construction Spending
9/4 8:30 ET Foreign Trade Deficit
9/5 9:45 ET Markit Svc PMI
9/5 10:00 ET ISM Svc PMI
9/5 10:00 ET Factory Orders
9/6 8:30 ET BLSBS

Key Economic Events Week of 8/26

8/26 8:30 ET Durable Goods
8/27 9:00 ET Case-Shiller Home Price Idx
8/27 10:00 ET Consumer Confidence
8/29 8:30 ET Q2 GDP 2nd guess
8/29 8:30 ET Advance Trade in Goods
8/30 8:30 ET Pers. Inc. and Cons. Spend.
8/30 8:30 ET Core Inflation
8/30 9:45 ET Chicago PMI

Key Economic Events Week of 8/19

8/21 10:00 ET Existing home sales
8/21 2:00 ET July FOMC minutes
8/22 9:45 ET Markit Manu and Svc PMIs
8/22 Jackson Holedown begins
8/23 10:00 ET Chief Goon Powell speaks

Key Economic Events Week of 8/12

8/13 8:30 ET Consumer Price Index
8/14 8:30 ET Retail Sales
8/14 8:30 ET Productivity & Labor Costs
8/14 8:30 ET Philly Fed
8/14 9:15 ET Ind Prod and Cap Ute
8/14 10:00 ET Business Inventories
8/15 8:30 ET Housing Starts & Bldg Permits

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