Update March 2020: The economic crisis years have begun, as predicted!
Our next prediction is a massive inflation or financial crisis hitting at year X, marking the second part of "The Great Stagflation". A better science should make better predictions and solutions than the one it's trying to replace.
SORANOMICS

Classical economics meets modern data science'


The study ofSOcialResourceAllocation (SORA) based on Adam Smith, David Hume, and Socrates, using theeffort theory of value

Economics creates crises because it is based on sophistry

Courtesy of the doctrine of ego and selfish-interest

The economic boom from the industrial revolution led to the dominance of utility and pleasure causing the marginal revolution to establish wrong ideas. After that, the problems began.

WRONG

Society works for businessmen
Society fights itself
Value is objective
Money is wealth
Pleasure is the sole goal
The self is more important
Life is for accumulating things

RIGHT

Businessmen work for society
Society works together
Value is subjective
Money is not wealth
Peace of mind is the goal
Society is just as important
Life is forachievinggoals

Nothing can be more absurd than thisdoctrine of the balance of trade. It supposes that when two places trade with one another, neither of them loses or gains if the balance be even. But if it leans in any degree to one side, that one of them loses and the other gains, in proportion to itsdeclension from the exact equilibrium. Both suppositions are false. A trade which is naturally carried on between any two places is always advantageous,though not always equally so, to both.

It is always the people’s interest to buy whatever they want the cheapest. This proposition is so very obvious that it is ridiculous to take any pains to prove it. It could never have been questioned had not the sophistry of merchants and manufacturersconfounded the common sense of mankind.

Simple Wealth of Nations Book 4, emphasis added

Has your common sense been confounded?

A dynamic, live-streaming universe never staysceteris paribus

Economics was formalized after the marginal revolution of the 1870's, as the direct descendant of Mercantilism which believed that money is wealth. This belief continues today as the 'liquidity preference' advocated by John Maynard Keynes. Money allows gambling which lets anyone get wealth by chance, naturally creating more volatility as the world becomes richer through speculation in stocks, commodities, property, crypto, etc. Economics was easy to sell to people because selfish-interest is quite common.

This gambling mentality, together with the core beliefs in Economics such asprofit maximization andequilibriumhave led to boom and bust, best seen in the theRoaring 20'sboom and the1930's Great Depressionbust. The failure ofDSGE  during the 2008 Financial Crisis shows the absurdity of Economics.

Economists, therefore, should not be surprised at recurring economic crises because their very teachings propagate them. In fact, it would be very surprising if there would be no crises while Economics is being taught in schools.

Update March 2020: The economic crash from Covid-19 is consistent with our prediction of a long crisis starting in 2019.
Our prediction was based on the underlying selfish-interest and shallowness being propagated by universities which was exposed by Adam Smith

The natural price is theLOWEST PRICE that a dealer can sell his goods.. The natural price is the central price to whichALL PRICES are continually gravitating.

Simple Wealth of Nations Book 4, emphasis added

The company complained about the cheapness of consumption and the encouragement given to production. These are precisely the two great effects promoted by political economy.

Simple Wealth of Nations, Book 5, Chapter 1

Money is the root of all evil

Well, not really. The problem is that money is a number, like a particle, whereas value is a feeling, like a wave. This wave-particle duality then creates problems:

Money builds ego

Having a lot of money gives theego power over other egos, giving a feeling of superiority to the monied-ego, leading to arbitrary actions which encroaches on other egos, creatinginjusticeand eventually,evil.

A dirt-poor evil bum can hurt a few people, but an ultra rich evil man can hurt so many.

SORAnomics uses theeffort theory of value, facilitated by social contracts in order to prevent injustice and the growth of evil. This prevents democracies from degenerating into tyranny and aristocracies from slipping into oligrachy, in Socrates-speak.

Money destroys information in every exchange

If you work for 1 hour in exchange for $10, then your work-information generated in that hour will beoverwritten by the $10-money-information, just as a particle is bumped off by another particle. You don't remember most of what you did in every day of the first month of your first job, but you remember your first salary amount very well.

In contrast, a labor-for-labor system would retain all the information about that labor, allowing precision in labor-allocation.

Why hire a plumber and a carpenter to fix your kitchen sink and dinner table, when you can just hireone guythat has experience in both?

Money only works for the here and now

Prices can only be assigned by the mind relative to the current moment and place. This is why asset prices fluctuate far more than wages or most commodities that circulate regularly.

Money doesn't work for things that have a not-so-obvious-value (wave-value) like:

  • the unseen labour being done by a rainforest in cleaning the air
  • the health benefits of eating a vegetable
  • the inventions that will only have impact after long and costly research

Economics has no way to accurately put a price on the future effects of such things, but SORAnomics has, through relativistic effort-valuation and resource credits.

Everything in the world is purchased by labour.. In general, the dearness of everything, from plenty of money, is a disadvantage which attends an established commerce. It limits commerce in every country.. This has made me doubt the benefit of banks and paper-credit, which are so generally esteemed advantageous to every nation.

David Hume, On Money

The men of business stoop as they walk. They pretend not to see those whom they have already ruined. They insert their sting—their money—into someone else who is not on his guard against them. They recover the parent amount many times over multiplied into a family of children amounts. And so they make drone and pauper to abound in the State. The evil blazes up like a fire. They could extinguish it by restricting a man's use of his own property and letting everyone enter into voluntary contracts at his own risk. But the men of business will not do this as this will lessen this scandalous money-making.

Socrates, The Simple Republic by Plato, Book 8

Stop the burning!

Want to end the Corona virus? End the war against the Amazon

Time it takes for the dialectical method to come up with a solution to Covid

90 days

Time it takes for the scientific method to come up with a solution to Covid

The economic decline in 2020 came from the corona virus which came from the war against the Amazon which began in 2019. This is similar to the Spanish flu which came with World War I and ended after that war ended, and the Black Death which came with the Mongol Conquest. Therefore, ending the destruction of the Amazon is the best way to end the virus. Without it, the virus will merely mutate, rendering current vaccines ineffective.

Update March 2021: As expected, the virus mutated into the P.1 variant from Brazil which has rendered vaccines less effective.
It's also no surprise that Brazil is the worst affected since the cause of Covid is in their backyard, even if it first emerged in China

In the spice islands, the Dutch burn all the spiceries beyond what they expect to dispose of in Europe with profit. ThisSAVAGE POLICYhas now almostcompletely destroyed all those trees.

The Simple Wealth of Nations by Adam Smith, Book 4, emphasis added

Welcome the Enlightenment

The Kali Yuga ends here (IF you want it to end)
Real Happiness
Happiness
Subjective vs Objective

Economics is largely based on Physics as proven by the extensive use of Calculus and the removal of Moral Philosophy during the 19th century. Prior to that, Economics was called the Political Economy which was largely based on law, morals, and not math which can bedismal.

Material Happiness
Happiness

Bertrand de Jouvenel characterised “Western man” in words which may be taken as a fair description of the modern economist. He tends to count nothing as an expenditure, other than human effort. He does not seem to mind how much mineral matter he wastes and, far worse, how much living matter he destroys. He does not seem to realize at all that human life is a dependent part of an ecosystem of many different forms of life.

E.F. Schumacher, Buddhist Economics

Bye-bye Liquidity Preference

Hello Coordinated Wealth Preference

SORAnomics uses models that are totally data-driven and not based on imagination and wishful thinking

Supply and Demand
Replaces the "Law" of Supply and Demand and downgrades it into a "model"
GRID
Replaces the IS-LM model of Keynes with actual interest rates and inflation data
GGAMS
Replaces the AS-AD model with actual services, manufacturing, and agriculture data
Purchasing Power
Replaces GDP with actual retail prices of goods and creates more wealth by squeezing out unrproductive labor orbullshit jobs  and non-value-adding-rent-seekers

Classical economics has a lot of models that never saw the light of day. We bring them back to replace those created by modern economics. The models above come from actual economic data and are not merely theoretical. When combined with data science, these new models gain a predictive ability that is lacking in Economics.

In 2015, our model predicted an anomaly occuring in Q1 2018 which turned out to be the Bitcoin bubble and the 2018 correction. . The model predicts a much bigger crisis in a specific year between 2019 to 2030 and this is what we are preparing for (actually, the model has specified a year in our submitted paper, but sincerevealing the future changes the future, it's better to make it ambiguous). Our models work in the real world because they are based onactualdata and not on thedesireddata.

Update March 2020: The crisis years have begun!
It's going to be a long one and things will NOT get better anytime soon, so we hope you've heeded our warnings from 2015 and spent thepre-crisis years preparing

This avidity alone, of acquiring goods and possessions for ourselves and our nearest friends, is insatiable, perpetual, universal, and directly destructive to society.

David Hume, Treatise of Human Nature

Global economic data in real time

Economics can't get more rigorous than this

Crunching economic data from the 13th century up to the present by hand was a lot of work, so we're creating the system to automate it through ISAIAH or theImpartial Spectator Automated Intelligence Aggregation Host.  We love philosophy, but we love engineering too!

SORAnomics will use the SORA system of servers to feed essential economic data to acentralized data platform.It will usePurchasing Power instead of GDP, and grain values instead of currency values to sustain economies even during a financial crisis, as the main implementation of theeffort theory of value. It can renderinformation asymmetry obsolete since everyone can have access to the same information. Economics can get GDP data quarterly, but SORAnomics can get itby the minute,allowing real-time policymaking.

Do you need to know the global GDP right now, or find out how good or bad your economy is doing each day in a Bloomberg-terminal way? Find them all on our portal!

These difficulties are not peculiar to Pool Clearing. They are inherent in any attempt at international economic co-operation, whether for the control of raw materials, cartels, transport, or anything else. It is often a matter merely of “Economic Intelligence”, of the spread of reliable knowledge, and the compilation of reliable statistics of productive capacities and human needs.

E.F. Schumacher, Buddhist Economics

The economic table implemented

The Physiocrats invented the economic table 250 years ago. It traced the supply chain in order to create a cohesive economic system to rival the arbitrary Commercial (mercantile) system. The Commercial system won and became Economics and e-commerce, creating the same trade wars and environmental destruction that it did in the 18th century. Our system brings back the Physiocrats' economic table through our data plaform in order to prevent such problems.

Do you want to know if your tofu was sourced from the Amazon's destruction? Or if your smartphone is contributing to war in Africa? Or how you can quickly rebuild your supply chain after a natural disaster? The economic table can help.

Model
Economic table
Simulation
Resource extraction processes for a smartphone
Resource processing processes
Resource trading processes

The third greatest invention of our time is the Economic Table

Riqueti, Philosophie Rurale 1763

A Crash-Proof Economic System

Monetization
Resourcization

SORA introduces the concept ofresourcizationor the use ofresource creditswhich are social contracts that give right to assets or resources (products and services) in lieu of money. Resourcization preserves value in a slowing-down economy by converting money into assets and resources, just as monetization does the opposite and speeds up an economy by converting assets and resources into money.

Resourcization prevents bubble-economies from crashing and companies from closing down by converting money-based transactions and debt into barter. This preserves production and reduces uncertainty even when the economy is starved of money, since value-data is preserved in the cloud as an alternative tool of trade and valuation. The regulator can then use this data to formulate the corrective policies.

It has been said that the Americans have no gold or silver money. Without gold and silver, it is impossible to pay taxes. How can we draw from them what they do not have?.. It might be unnecessary to remit any part of the American revenue in money. It might be remitted in bills accepted by particular merchants in Great Britain to whom some of America's surplus produce was consigned. Those merchants would pay the American revenue in money after receiving those goods. The whole business coul be transacted without exporting a single ounce of gold or silver from America.

The Simple Wealth of Nations by Adam Smith, Book 5, Chapter 3

A new life for economists

Economists can be converted toSORAnomists to work on eachdecentralized economic node, instead of working forcentralized finance, research, or the public sector as is the usual career path in Economics. We estimate that one SORAnomist is needed per 100,000 population and will have an objective-subjective skill set. The objective being represented byData Scienceto process the data andDevOpsto extract, transform, and load or serve that data. The subjective being SORAnomic science and themoral philosphyon which that science is based. In contrast, Economics is mostly objective, lacking a proper moral foundation.

A global population of 7 billion people, would need 70,000 SORAnomists, or double the staff of Facebook

Mr. Locke, Mr. Law, and Mr. Montesquieu, and many other writers, imagined that the increase of money was the real cause of the decrease in interest rates in Europe.. This notion, which at first sight seems plausible, was fully exposed by Mr. Hume that it is unnecessary to say anything more.

The Simple Wealth of Nations by Adam Smith, Book 5, Chapter 3

A new life for bankers and investors

Arefintech andcryptocurrencieseating up your bank's market share? Gain it back with thesocial banking system

A bank's core competency is the trust and security that it provides for storing precious things. SORA evolves these stores of value as transactions to turn banks into transaction

Ancient Rome: Banks as temples storing precious items
Mercantile period: Banks as storage of gold and silver
Post-Bretton Woods: Banks as storage of paper fiat and paper financial instruments
SORA Banking: Banks as storage of digitally-encrypted transactions

A new investment system: Clearing funds

The SORA free trade system, derived from EF Schumacher's Pool Clearing, will be powered by national clearing funds which will also serve as alternative to bonds, stocks, and crypto-assets

Economics

To grow an economy:

lower interest rates

To stabilize an economy:

raise interest rates

SORAnomics

To grow an economy:

empty the clearing fund

To stabilize an economy:

fill the clearing fund

By being removed from the bank, a shilling loses the advantages of bank money in its security, easy and safe transferability, and its use in paying foreign bills of exchange. Above all, it could not be removed from the bank without previously paying for the storage.

The Simple Wealth of Nations by Adam Smith, Digression on Bank Deposits

The Goal: Socio-economic Singularity*

*A situation where anego-less  artificial intelligence becomes theimpartial spectatorwhich coordinates all supply and demand even when there is no money around
Because the EGO is the real root of all evil

SORAnomics is implemented through the SORA system which is made up of decentralized hubs. These act as neurons which coordinate supply and demand information with each other, forming an economic brain.

Ignorance, misinformation, friendship, party animosity, and private resentment frequently mislead such tax assessors.

The other goal: The Ideal Socio-political System

Adam Smith'sdecentralized economic system integrates seamlessly with thedecentralized democratic system proposed by his best friend, David Hume, as an alternative to the current centralized democratic system
Wait, what's wrong with the current democracy?

The problem with pure democracy is the same as the problem with money:freedomhas no moral quality attached to it. A purely democratic system, without any moral checks, could spread goodness, but also could spread evilat the same time. This is easily seen in real news versusfake news and in good officials being elected along with corrupt ones. This problem was solved by Hinduism, Buddhism, Confucianism, and Islam, all of which imposed moral rules.

Ourregulated democratic model has adual morality system and a moral philosophy calledMoral Consequentialism baked in, to better make sure that goodness is spread while evil is checked, without having the dogma and rigid morals of religions.

As one form of government must be allowed more perfect than another, why may we not enquire what is the most perfect of all..though it be not so easy to establish a new system of government? In some future age, an opportunity might be afforded of reducing the theory to practice, by the combination of men to form a new one, in some distant part of the world

David Hume, On Money

Let's end poverty, inequality, recessions, and low revenue theright  way

Rise up from the ashes of the Great Stagflation with a new system based on fellow-feeling instead of selfish-interest

The Invisible Hand of Human Dharma
Find out how SORAnomics turns the economy into adharmicsystem that allows everyone to achieve their goals in life.
Rent Wages Profit Cycles
Know the cycles of revenue in order to keep wages stable and avoid budget deficits and recessions
The proper replacement to GDP
Find out how Purchasing Power replaces GDP as a measure of a society's wealth, without needing any new arbitrary index
The Doctrine of Consequence
See how Hume'sdoctrine of consequence(necessary connection) is compatible with Hindukarmaand opposite that of liberalism

Feedback

Amazing work. I see such a massive opportunity for what you're creating.

This could be very disruptive and if done right, and it doesn't need to go away after the pandemic.