Systemic Diagnostic Audit

Mainstream neoclassical macroeconomic models treat sovereign economic activity as an open-loop, frictionless accounting ledger. By ignoring thermodynamic conservation laws and biological work constraints, these models conflate debt-financed remedial spending, financialization, and currency debasement with genuine wealth accumulation.This paper establishes a rigorous diagnostic framework using Non-Equilibrium Thermodynamics and Closed-Loop Flow (CLF) circuit dynamics to measure systemic friction,