Preface

The 1997 Asian Crisis and the 2008 Financial Crisis proved that financial crises were systemic and that there was something very wrong with Economics. This led me to do personal research into the history of the ideas that created the current economic system.

From studying economic calculus in university, my gut feeling was that the fishy idea of profit maximization (wherein firms reduce their output in order to raise prices) was the culprit.

I validated this in Adam Smith’s The Wealth of Nations where he attacked the idea that money is wealth, which then led to the profit maximization doctrine which was not present in Classical Economics.

From Smith’s principles, I created a model predicting a global stagflation starting in 2020 wherein the solution would be a barter-credit system that we eventually called Economy-as-a-Service. This realizes Smith’s state institutions mentioned in Book 5, Chapter 2, to facilitate specific commerce sustainably wherein the valuation is based on something tangible, as either wheat or silver.

The pandemic happened within the projected time frame, and our system, as a web app, crashed from the surge of users. The reality of the 2020s stagnation, as well as the current chronic inflation, proves that Smith was correct and that his principles are timeless, holding true today and far into the future.

We can then lay down the science of how the prediction was done and why it predicts another global crisis around 2028-2029 unless Neoclassical Economics reverts back to Classical Economics, a clearer version of which is our proposed Supereconomics.

Unlike Economics which is based on static money, as prices, Supereconomics is based on dynamic waves, as relative value. This wave-nature of a supereconomy is driven by desire, explained through the Four Laws of Value, mirroring the Four Laws of Thermodynamics.

This book explains the basics of those Four Laws just as Newton’s Principia Mathematica explained the Laws which established Physics, but uses qualitative solutions to problems instead of mathematical ones. This is because humans have free will to break out of quantitative limitations or constants.