[binaryfinery]

Nice, neat, simple equations and math, at the Macro level.

To put this in hacker terms, these simple rules are about as simple as the http protocol. Now imagine the software that implements this simple protocol. Think of all the different ways to exploit it. Now imagine all the complex systems that can be created using these simple rules. Now add hackers, DDOS, government censorship, wikileaks, peering disputes, etc.

Economists would have us believe that these simple rules are "how it is". Now imagine the millions of people it takes to actually implement these simple rules. Imagine what it takes to actually make wine in Portugal. Now add that these people want pensions. Now include that these simple rules assume currency equivalence, or something like the gold standard to mediate production disparities. Now add the governments on top of this "protocol".

To believe this "proven economic theory" you have to live in a virtual machine.