# The Importance of Stable Currency Unit Theorem (SCUT)

Marc Gauvin (c) 13/10/2013

It occurs to me to accentuate that the Stable Currency Unit Theorem (SCUT) works with or without a predefined numeraire for the unit.

Premises:

If all units are the product of Transactions* AND all Transactions are Passive BIBO Stable

Conclusion:

Then,  the units will be stable.

This is not a circular argument because nowhere in the premises is the conclusion "unit will be stable",  this is a conditional argument that never requires stable units as a premise but rather requires conditions that lead to unit stability.  If stability of units were a premise then we would be saying - units are stable and therefore units are stable -, which is of course circular irrespective of validity. But this clearly is not the case with SCUT, and there in lies the beauty of SCUT because it shows that the conditions are true for any arbitrary unit measure of "value" with or without predetermined numÃ©raire.   Essentially,  it is the same principle behind the validity (stabiity) of relative measurements where changes in absolute value do not imply changes in relative value and vice versa.

This is very important because it brings to light that once defined,  stability of the unit is a function of NOT DOING rather than DOING.   Just like a sports score is only valid if and only if nothing is done to it.   This serves to highlight the importance of distinguishing between stable and unstable "stablilISED" systems.  A stable system requires no input action to achieve stability while a stabilISED system is really an attenuated instability i.e. the requirement for attenuation (constant input)  is proof of instability.

SCUT shows that money can be inherently stable while in the current paradigm, arbitrary instability is introduced that then leads to justify imposing attenuating measures,  it is the quintessential action -> probem -> solution.  The problem then becomes one of scope,  by making unstable money all pervasive,  attenuation then must also be all pervasive thus leading to all pervasive control or simply dictatorship.

Of course all this does not arise out of nowhere,  it is the direct result of the underlying incoherence of our assumed definition of money as both a unit of measure of value AND a commodity of variable measure of that same "value".   See The Money PSYOP for more on this.

* See definitions here, note for our purposes in this article and with respect to stability and passivity, the defintions referring to the @ unit can equally refer to any other abstract unit with or without a predetermined numeraire.