The Pocket Philosopher
The Pocket Philosopher
Game Theory Vol. II
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Game Theory Vol. II

Chapter 6 - $$$, Ford, Tesla, and Philosophy

Under the energy currency system the standard would be a certain amount of energy exerted for one hour that would be equal to $1

—Henry Ford (FORD)

Yes, that Henry Ford.

In the December 4th 1921 issue of The New York Tribune Henry Ford declared his intention to redefine value and economics as we know it.

In many ways, Ford perfectly envisioned the future of decentralized finance, distributed ledger technology, and something like bitcoin. Replacing gold with energy upends the very basis of the systems which increase outbreaks human violence (ie war), decrease political stability, and prevents societal flourishing.

Mr. Ford envisioned that the value of money and the energy used to create it would be inextricably linked. He even wanted to create a prototype at the Muscle Shoals Dam in in Alabama along the Tennessee River.

He wanted to harness the power of water to create a new value stream (pun intended) and alternative, energy backed financial system.

However, in the twilight of his life Ford commented,

A simple affair of business which should have been decided by anyone within a week has become a complicated political affair. (FORD)

He died without seeing the project completed.

Similarly, Nikola Tesla envisioned an energy backed system of finance imaging that,

These uniform energy valuations will replace all of the world’s wildly intervarying, opinion-gambled-upon, top-power-system-manipulatable monetary systems.

The time-energy world accounting system will do away with all the inequities now occurring in regard to the arbitrarily maneuverable international shipping of goods and the top economic power structure’s banker-invented, international balance-of-trade accountings. (THREAD)

To be honest, if you live on top of this “power system” in a strong, dollar-backed country like the US, the UK, or in the EU it might sound a bit unnecessary to be so direct and critical of centralized finance.

But consider Tesla’s perspective having lived through two World Wars. Where twice in a century the power and wealth of the world was transferred and fought over violently.

Where the world killed each other, concluding with the all-too-real threat of Nuclear War soon after Tesla passed. He witnessed the deflation of Germany which gave rise to fascism. He witnessed the collapse of nations and histories at the mercy of failed financial policy.

Today, our neighbors in Lebanon struggle to survive in a near identical failure of centralized financial policy. And a bit less severe but still catastrophic, consider the financial collapse in the US in ‘08. We don’t have to look into history to empathize with Tesla’s passion for the humanitarian cost of failed financial policy.

Because an economy, financial policy, how we define value—these are all simply the components of a game. A game which we can improve, if we want.

Nik Bhatia writes in Layered Money,

Forty-Six days after the fall of Lehman Brothers in 2008 and directly amidst the world’s collective realization of the dollar system’s precarious position, a presciently timed white paper was sent to a very small online community called the Cryptography Mailing List.

The paper was written for members of the cryptography discipline, not the monetary one, and therefore it didn’t even register as relevant to money back then.

Looking back, however, we must with authority insert this day, October 31, 2008 and the creation of Bitcoin into the official record of monetary evolution. (pp. 82-83)

And this is a perfect place to leave us for today.

Tomorrow, we’ll delve a bit deeper into the history of Bitcoin and DLT, and imagine what this could mean for the future of human security—from safe value reserves to the end of violent war.

Until then my friends,

Matt

https://pixabay.com/photos/automobiles-henry-ford-vintage-old-502135/

PS, today’s installment is especially heavy on references. I wanted to take the time to point them out and encourage you to explore if you find this topic interesting!

Highly Suggest following Jason Lowry on Twitter, here is a thread which has heavily influenced today’s post: THREAD

This article is a great synopsis of Ford’s economic vision. FORD

New York Tribune Article reference: NYT

Finally, Nik Bhatia’s Layered Money is a masterclass on the history of money and the rise of decentralized markets (+ the philosophy which inspires it all!): Layered Money

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