...our democratic political process has not been able
to correct the 3% of GDP shortage of purchasing
power, the 2.3%/year "natural rate of inflation," and
the 4% to 10% unemployment rates which the US economy
has suffered for more than a century.
-----------------------------
These percentages are about right and are explainable
through the A+B Theorem.
Basically, it works like this: What is called HPM
("high powered money," "base money" or "reserve
money") is injected into the economy when the central
bank purchases government securities through the so-
called "open market" from a select group of dealers
at the very top of the food chain.
So the money trickles down from Wall Street into
paychecks and employment benefits. The process is
grossly inefficient. Just as with a drip coffee
maker, much coffee remains in the grinds--and is
wasted.
The central bank could--and should--disburse a
measure of HPM directly to the people in the form of
dividends, to allow consumption to keep pace with the
increasing productive capacity that finance and
technology have ultimately enabled.
--
Date: Wed, 6 Aug 2003 06:40:41 -0400
From: [EMAIL PROTECTED]
Subject: Re: Honest money. A red herring for Americans?
To: [EMAIL PROTECTED]
Cc: [EMAIL PROTECTED], [EMAIL PROTECTED]
Reply To: [EMAIL PROTECTED]
To: A few friends and many devious defenders of the
status quo (DDotSQ) who want the US economy to
crash so they can buy America at bargain prices.
Good day folks,
With this message I hope to open a public debate on
"The Optimum Policy" for avoiding the crash which
the DDotSQ are actively promoting by stonewalling that
public debate. On Mon, 4 Aug 2003 Rodney Shakespeare,
co author of "Binary Economics," writes to my old friends
at the Christian Money list <[EMAIL PROTECTED]>:
> Sabine,
> I only read this quickly but it seems to me that the
> argument is largely for a gold and silver money system.
> Am I wrong?
>
> Just because somebody understands how fiat money is
> issued today (and interest added), does NOT mean that
> they understand connections between the money supply
> and productive capacity let alone with social and
> economic justice.
>
> Too much apparently monetary reform thinking concerns
> itself with just one or two aspects of the situation.
>
> Rodney Shakespeare.
>
> ----- Original Message -----
> From: "Sabine Kurjo McNeill" <[EMAIL PROTECTED]>
> To: <[EMAIL PROTECTED]>
> Sent: Monday, August 04, 2003 7:07 AM
> Subject: Fw: honest money
>
> > We are not alone!
> > Sabine
> > www.intraforum.net/money
> >
> > ----- Original Message -----
> > From: "Alexander Baron" <[EMAIL PROTECTED]>
> > To: <[EMAIL PROTECTED]>; <[EMAIL PROTECTED]>
> > Sent: Sunday, August 03, 2003 11:17 AM
> > Subject: honest money
> >
> > Source:
> > LewRockwell.com
> > http://www.lewrockwell.com/
> >
> > Bring Back Honest Money by Rep. Ron Paul, MD
> > http://www.lewrockwell.com/paul/paul118.html
> >
> > E-mail: http://www.house.gov/paul/mail/welcome.htm
> >
> > Ron Paul in the US House of Representatives, July 25, 2003
> >
> > Mr. Speaker, I rise to introduce the Honest Money Act.
> The Honest Money Act repeals legal tender laws, a.k.a.
> forced tender laws, that compel American citizens to accept
> fiat (arbitrary) irredeemable paper-ticket or electronic money
> as their unit of account.
> >
~~~~~~ Balance of Ron Paul's text deleted by Wes Burt ~~~~~
I wholly agree with Rodney Shakespeare in his rejection
of a monetary cure for what ails the US economy. The facts
reported on the US economy by Sabine Kurjo McNeill,
Alexander Baron, Lew Rockwell, Ron Paul, Dr. Edwin Vieira,
Alan Greenspan, Stephen T. Byington, Salmon Chase, and
Stephen Field in the messages above, are all perfectly true.
But the complexity of a system with 285 million active
members seems to exceed the comprehensive power of
most human minds. This mixture of truthful reporting and
complexity may be the primary reason why our democratic
political process has not been able to correct the 3% of
GDP shortage of purchasing power, the 2.3%/year "natural
rate of inflation," and the 4% to 10% unemployment rates
which the US economy has suffered for more than a century.
If a complex system malfunctions because of a defect of
omission, there is no known method of analysis which can
directly identify that defect, if the analyst is ignorant of the
original design specifications of the system. Such complex
systems as a global economy, a national economy, an
industry, a corporation, or a family farm all follow the
principles of Binary Economics (BE) in that the capital plant
acts in tandem with the workforce to produce a total output
of wealth ($/year) more than an order of magnitude larger
than the initial value-added ($/year) by labor. Remove the
capital plant which the workforce has built to date, and the
value-added ($/year) by labor alone could not feed a
population of 285 million people.
Some of you may recall that the binary, or tandem,
operation of human society was one of many principles
of social structure discussed in the several encyclical
letters, "On the condition of the working man," issued by
The Church Of Rome since Pope Leo XIII issued RERUM
NOVARUM in 1891. In CENTESIMUS ANNUS, May 1, 1991,
Pope John Paul II wrote on page 83:
"A business cannot be considered only as a "society of
capital goods"; it is also a "society of persons" in which
people participate in different ways and with specific
responsibilities, whether they supply the necessary
capital for the company's activity or take part in such
activities through their labour."
Since RERUM NOVARUM, in 1891, each encyclical letter
on the economy has proposed a "Family Wage" which
required employers to supplement the worker's market
wage rate in accord with the number of dependents being
supported by the worker. Not many employers complied,
for practical reasons well documented in John Bunzl's
<www.Simpol.org> web site, and elsewhere in the
literature. It is also well documented, however, that Japan
and Germany established "Family Wages" in the amount
of 1/5th of the average wage per dependent, to assure the
rapid rebuilding of their economies after World War II,
under the watchful eyes of Douglas MacArthur and
John J. McCloy, respectively. By the 1970s, the GDP/capita
of Japan and Germany had overtaken the GDP/capita of
the US. And they matched our standard of living while
using only about 1/3 of the per capita water and energy
now consumed in the US, according to the World Bank
ATLAS.
But it was not until 1981, in Pope Paul John's third encyclical
letter, "On Human Work," that The Church Of Rome proposed
the State as an "indirect employer" to fund the dependent
allowances, while the direct employer continued to pay wages
determined by the market for labor. Here we have the oldest
institution in the world, The "Christian" Church, spelling out the
"Binary" or tandem structure of an industrial economy and
describing the mutual obligations of direct and indirect
employers (the State) which enabled Catholic Europe and
Japan to perform their economic miracles, and effectively
invest the Marshall Plan funds.
If the Church of Rome knew so much about a valid general
theory of human development, how did it come about that
England became that "workshop of the world" which
established the British Empire in the 19th century and the
United Stares became the industrial and military super
power of the 20th century?
It came about because the WASP WHIPs recognized, early
on, the basic principal of Binary Economics and concentrated
their talents and resources on perfecting and fully developing
their capital plant; confident that 1-12 public education plus
"trickle down" wages and salaries would keep their workforce
contented. The fact that the domestic market did not have
enough purchasing power to consume the output of the
capital plant did not matter; while the English speaking
nations were leading the industrial revolution. Now that all
advanced nations are developing their capital plants for
export, at the expense of their workforce, the global
capital plant has excess capacity and the global
purchasing power is not sufficient to buy the output of
the Global capital plant.
Because of its size, the US economy is the major
contributor to the instability of the global economy.
And the way forward is for each nation to apply "The
Optimum Policy" to its people as consistently as they
apply it to their capital plant. The attached Fig8.1.gif
shows three ways that US public policy falls short of
"The Optimum Policy:" the regressive SS payroll tax
structure, the absence of an adequate children's
allowance, and the recent income tax cuts.
Kind regards,
Wes Burt
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