Dust flux, Vostok ice core

Dust flux, Vostok ice core
Two dimensional phase space reconstruction of dust flux from the Vostok core over the period 186-4 ka using the time derivative method. Dust flux on the x-axis, rate of change is on the y-axis. From Gipp (2001).

Sunday, July 17, 2011

FIAT: The Legacy (or The Redemption of Ben Bernanke)

One of the most eagerly awaited movies of all time!

FIAT: The Legacy is set in a dark, dystopic time--a time in which central bankers exert perfect control over the economy under the leadership of The Benbernank, which is enforced by FIAT, the weapon of the bankers.

Citizens are subject to draft for the regimes many wars. Our hero, Sam, is captured in one such sweep and almost before he knows it is engaged in a series of senseless conflicts on a digital battlefield.

It turns out that the battles are being fought for the amusement of the ruler of this bleak place--a being called "The Benbernank".

Sam mistakes The Benbernank for Dr. Ben Bernanke, a central figure in the creation of the economic system. The Benbernank sentences our hero to death by combat. He is about to die at the hands of FIAT when he is unexpectedly rescued and escapes to a hidden fortress near the edge of the dystopic world--where the real Dr. Ben Bernanke has been hiding since he was overthrown by The Benbernank.

Dr. Bernanke greets our hero and falls into a regretful reverie of the past. He came to this world and found a blank economic slate, and he vowed to create a perfect system using Keynesian economics. He created The Benbernank as a kind of doppelganger associate to help create that system; and FIAT, who was to fight in service of the people.

The Benbernank, Dr. Bernanke, and FIAT prepare to create the perfect Keynesian system.

Initially, things went well, and prices and values came under control of central authority.

The biggest support for the centralization of the economy was their ability to create not only money, but consumables and capital equipment, including such things as motorcycles and aircraft (shown above) out of nothing.

Then one day--the betrayal.

The Benbernank: "Do you still want me to create the perfect economic system?"

Dr. Bernanke was forced to flee for his life as The Benbernank rebelled and took control of the system. FIAT was corrupted and became a tool of the bankers. The system immediately turned into a repressive system of total price control. Labour was devalued to increase the profits of the bankers. And the people were reduced to consuming one another.

The Benbernank addresses the legions. 
"I have freed you from the tyranny of the labourers and producers of society! 
Under me, we control prices! We control values! We control FIAT!"

This piece of eye-candy has no meaningful role in the story.

 Dr. Bernanke meditates on Hayek.

Dr. Bernanke's assistant, Quota, shows Sam around Dr. Bernanke's compound. A trip to the library shows us that Dr. Bernanke has been reading Austrian Economics over the past decades in his attempt to understand what went wrong.

"So he finally read Rothbard, von Mises, and Hayek."

"Human Action is my favourite!."

Dr. Bernanke's meditations have led him to the solution. They must replace the corrupted system of fiat currency with hard currency based on silver. They plan to get to the comm tower to launch the new silver eagle--and for the final battle against the bankers.

The bankers attack.

But as word spreads of the impending launch of the silver eagles by Dr. Bernanke et al., the people rise up against the bankers. Melees break out throughout the dystopic world, even as the bankers close in on our heroes.

The bankers try everything they can to break the silver longs. They increase the margin requirements, change the rules to discourage taking delivery, but none of them work. So they resort to shooting.

The bankers battle the silver longs.

The bankers are on the verge of victory when FIAT has a flashback to the days when he served the people--and in one last desperate (self-destructive) act of heroism, foils the bankers attack.

FIAT switches sides.

Our heroes reach the comm tower where they encounter The Benbernank. At last the creation faces his creator. And he has some things to say.

The Benbernank: I did everything you wanted me to! I tried to use Keynesian economics to create the perfect system! I elevated Keynesian economics to its maximum potential! And yet . . . this world is dark and terrible . . . you promised it would work! You promised to help to make the system perfect! But instead, you turned your back on it . . . and me . . .

Dr. Bernanke: I know . . . I did, and I'm sorry. It's just that . . . perfection is impossible to reach through Keynesianism. It can only unfold through free and unfettered human ambition. And you can't know that because I didn't know it when I created you . . .I'm sorry . . . ending the system is the only way forward  . . .

The first silver eagle enters circulation . . . and the digital economy implodes!

Our heroes find themselves in the real world.

A world of real prices . . . real values . . . real ethics . . .

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