biomatrix systems theory blog

reflection on physical and conceptual reality

Biomatrix Systems Theory distinguishes between physical and conceptual reality.

This distinction is especially relevant in the context of the global finance system (i.e. money coupled to a physical commodity versus money coupled to a conceptual commodity).

In 2008, the amount of derivatives amounted to 13 times that of the total Gross Domestic Product. These figures speak for themselves. They represent two separate, albeit interrelated systems that are unfortunately treated as if they are the same. Earlier in the year, German Chancellor Merkel raised the issue of separating them (i.e. the Realwirtschaft or real economy from the investment economy). The debate about it seems to have seized since (if there was a widespread one in the first place). I regard this as the core challenge of the information age: the role of in-formation in the economy, including the information that money (as divorced from a physical standard, such as gold) represents.

A separation of the two systems could imply the need to separate the currencies of the two systems – the national or regional currencies that measure the real production of goods and services and the services associated with investment and risk management (on a tongue in cheek note: what about Chase Manhattan or Goldman Sachs chips?).


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