Tuesday, October 26, 2021

Social Mechanics vs Dancing With Ghosts...

 A Short Story

Quiet morning, living in the country, deer in the field, owl hooting in the woods, coyotes yelping, turkeys gobbling, a bear drifting down the driveway, and me just waking up to it all. 


Social Mechanics vs Dancing With Ghosts... {10,00 Years of dancing with ghosts & 500 years of science} {Mick Jagger can't even get attention any more. People don't wanna be entertained → They want to know how to fix the mess the world is in.} {The battle is no longer between science & religion, it's between psychology & Science, & no one is even juxtaposing or comparing the two!} {Mechanics is all that speaks, or can speak!}


Ask a scientist how to solve a problem, he’ll give you an answer. Ask a psychologist how to solve a problem, & he’ll run you in circles. Psychology is immeasurably dangerous to a culture’s health; but, most people don’t even recognize the need to compare psychology & science, to solve our massive problems. 


I have a short story for you → What would you do if I gave you a trillion dollars? Could you fix the world with it?


  1. Oh, that’s impossible!


Hey, give me a break; Why is it impossible?

Well, for one: Where would you get it?


Oh, I forgot to mention, I’ll need to be the benevolent dictator of America; so, I’d simply “Print” it, as the interest and government debt excesses, never needing any repayment.

You can’t do that, you’d destroy the world with inflation; besides, Everyone in America would kill you for mere mention of being a dictator.!


“Ahhhhh …” Please notice, I did say: “Benevolent!” What if I show you a way to cure the ol’ boogie-man of inflation?

How could you possibly do that? That’s been tried as failures, a thousand times over.


Now, wait a minute: Simple, print money against money, put money, people, markets and governments in a new dynamics of competition mechanics with each, that is: Print prices down, while Printing wages and credit up, and taxes plus debt, down, also, and all at the same time. “Sliding Time Scale Pricing Dynamics of Money and Law” is extremely important to understanding this.

Still: Absolutely impossible; You are crazy!


Please {with a snicker} … No, I assure you I am not crazy, and it is absolutely possible to do just what I’ve logically suggested.

“Grrrr …”; Alright, I’ll entertain your madness for a spell. Continue…


Alright, let me digress to the first statement; I have a story for you → What would you do if I gave you a trillion dollars, with the condition you apply it to solving the world’s entire problems? Could you seriously fix the world with it? Instead of asking you to do it, I’ll show you how I’d do it. First, be ready to conceptualize and experience a world of exponential possibilities, and I do mean all possible exponential systems and models of solutions, we can possibly both entertain. Now, the first thing I’d do is buy out all of America’s banks. Second, I’d buy out all of America’s judges & courts, because law change will be required first, and the Justices and Courts are not smart enough to understand this new model of thought, architectonics, conceptualizations, or whatever you may wish to call it. At this point I need a bit of your criticism, to make sure we are following the same thinking, so what do you seriously see wrong, so far, other than it being blatantly blasphemously new, and sort of offensive to old senses?

Hmmmm …; What in God’s name, good, is it going to do to first buy out all the banks, since they are the initial problem, now?


Well … They are only the problem now, because they don’t have enough, real credit, to properly work with. Sure they have plenty of fictitious credit, but no real credit is left. We clearly face a massive insolvency, if something fundamentally, structurally huge is not done, soon!

What do you really mean by that?


The overnight repo markets, floating exchanges, offshoring of production and labor, excessive speculations of all kinds, tax havens & global derivatives markets are all together subtracting far more real credit from the world’s nations than the banking and market systems can presently supply. This is the pain we are all feeling, for real...

You may have a good point for the need there; but, I still need far more information. Why, also do you mention, buying out the “Justices and Courts?”


Simply put; You can’t change the money, credit and economic international legal-financial architecture, without changing our present feeble working law system to function with a new high functioning system and new social contract. We must change the law system and social contracts to fit any type of monetary system change, we choose to entertain. I don’t believe this is over your intelligent mind, is it?

Well, no of course not; but, I’ll need to know all the intricate details before I could even begin to pass any serious judgment on what you are saying, because I too believe there must be a way forward for humanity, and at present, it doesn’t look too pleasing. So how does a measly one hundred trillion dollars solve the many more trillions of dollars of global problems all nations presently face, even if you can solve the age-old inflation “boogie man” problem destroying real value?


Are you not aware of the multiplication mechanics of the present world’s banking systems, where one hundred trillion easily multiplies to ten hundred trillion dollars, as banks being at just a ten percent reserve ratio does that, and we are allowing many big banks to exceed that ratio, already, to as low as one percent and even less, at times. Look at Europe, they are using negative reserve banking, or it being the same thing, but simply called negative interest banking, now.


Let me ask you something; Do you have a historical analogy or two, to compare to, to make it easier for me to see your ideas more clearly?


Hmmmm … Are you familiar with “Perpetual Economic Suzerainty”, or “The Kondratieff Cycles” of history? Better still; Are you familiar with the “America’s Gold Dynamics Mechanics” on Spain, that destroyed her as an Empire? It’s the same dynamic mechanics, in general, of “PES” and “TKCs” , that’s  slowly bankrupting America into insolvency, right now.


No, certainly not in the depth you seem to be implying; so, I’d surely be interested in your analogies or juxtapositions to our present state of affairs.


As most know, Spain stole most of the gold from the South and North America’s Indians, and acquired a far larger share than any of the other European and English Empires. Few realize Spain was actually bankrupted by all this massive increase of real wealth, all at once, so to speak. In economic speak, it’s called “Specie Point Theory” where far too much wealth accrues to any single center of finance. It can also be referred to as “The King Midas Affect” __ all the gold in the world won’t necessarily make you wealthy, especially if you happen to be a nation state, as was Spain. This is where we truly understand, from history, “The Inflation Boogie Man”


Continuing: As Spain imported ever more increasing amounts of gold, her local prices ever more increased, to the point inflation became so detrimental, Spain priced herself out of her own export markets, thus really choking on its own excess gold and fictitious wealth, fictitious because the more gold they imported, the less real value the entire nation experienced, and local markets were eventually decimated by gold’s over-pricing of local goods and services. The nation became bankrupt of values, due to excess gold bankrupting her economic values system first, then her social values systems. Spain’s local citizens began shopping offshore for cheaper prices than Spain’s fictitiously over-wealthy inflation system could even begin to supply, at the prices expected. As local prices increased, offshore prices, production and labor became attractive enough to, in the end, bring Spain to her knees, as the excess gold was also feverishly offshored and speculated, as well as its productions and labor. This is the slow invisible “Capital Flight”, the economic books refer to when it's the fast and visible “Capital Flight” of many of today’s lesser nations. “Perpetual Economic Suzerainty” or “The Kondratieff Cycles” are loosely analogous names applied to the total historical bankruptcies and insolvencies of the dynamics and mechanics of such long wave historical examples and realities. Under “PES” nations simply lose their primary position in Political, Diplomatic and Military Power to the next nation or empire who is in line, such as the Dutch and English, along with many others. “TKCs” are simply the long wave cycles (say fifty to one hundred years) for it, as another simile. 


If you wish; Ask me any question in the entire world, about economics, {money, law and power} and I’ll gladly answer it to the best of my abilities. The histories of all nations have these similar dynamics played out over their long total histories, and if old enough, many times over. It’s usually so close in mechanics, the dynamic differences need not even be explained, as a thorough explanation of one explains em all, and many economists have written about it many times over, in many different books; but, if you were to read thousands of Doctorate level History and Economic books, as I have, you’d also see the clear truths to my statements.


Amoral and abstract are so overused, they have been destroyed, to the point no value exists. Anyone who doesn’t understand the mechanics of sociality, is considerably lacking! The hells of the language systems must be overcome! 


A maximal statistical proof method of sound triadic system mechanics is on offer! {Pay corporate & business to reduce prices, while raising wages and ending debt and taxes -- The all bottles full strategy} {By moving money dynamics to new mechanics, real value can be exponentially multiplied and restored to its pristine states}


Monday, November 11, 2019

E = 1/5 X -- A 1/5 Division of Global Exchanges Creates Perfect Competition...

(copyrighted - all rights reserved - lloyd.gillespie@gmail.com )

A Question of Limits — System Costs…

A warning: You will understand none of this without abandoning conventional thinking, and adopting a theoretical stance of non-conventional thinking.

What are system costs? They are the costs it requires us to run capitalism beyond its natural state costs. What is capitalism’s natural state? That’s a rather difficult question and should be better phrased as; “What would be capitalism’s best natural operating state?” Now, that’s more answerable. Capitalism’s best natural operating state should be a state of pure equilibrium of global prices and resources according to contained value of each resource and product. O.K., but that poses a further problem when all nations have different amounts of individual resources and populations, how would we ever achieve pure equilibrium? I could see writing new dynamic laws to equilibrate prices, but not resources and populations. Wait a minute, we could also write dynamic sliding time scaled ratio-balancing laws to even balance out unequal resources and populations per GDP’s, as long as all currencies are also dynamically sliding time scale balanced to all internal and external prices and resources to GDP ratios. Such ideas must always respect the core necessities of incentives, supply and demand not be disturbed.

Now, let’s get back to the initial question — What are system costs? Since a perfect state of capitalism would be a pure and true equilibrium state of global prices and resources, system costs would be the costs incurred by and beyond any initial state balance into imbalances in prices and resources from its initial pure state model, and these costs would be proportional in a direct ratio to such imbalances, i.e., the further capitalism became imbalanced to its initial pure state balance of prices and resources, the higher the excess system costs would become, of running such a system. That’s a pretty straight-forward probability matrix, is it not? So, why all the problem of global political-economics, of the present imbalances and excessive costs, being laid back on the many by the few? Is it a problem of education? Is it improper education or possibly a learning disability? Are we all intellectually dyslexic? What gives here, when the problem seems so simple to solve? Have we not ever tried to solve the real problem of “excess system costs”?

It seems this is the problem. We have never even entertained the question about the problem of “excess capitalist system costs”. Why? I don’t know. Is it possible no-one has ever thought of posing the simple question? Quite possible, as it easily seems to answer it-self as soon as it’s posed.

How exactly are excess system costs/debts incurred, above normal market debts? Global computerized speculation has excessively imbalanced markets; therefore, global computerized arbitrage is now required to rebalance markets. Since excess computerized speculation (all speculative short and long positions combined) exceeds natural market arbitrage, written law computerized arbitrage must now be instituted to even begin to rebalance global markets. Natural market arbitrage falls far short of what is required to naturally rebalance markets. These inertial market changes have taken place so subtle over the last several decades, we simply haven’t noticed the massive growing imbalance’s true causes, as most do not understand computerized speculation and arbitrage dynamics for the imbalancing damage it’s truly doing, when these two necessary market states are out of balance as severe as this state of affairs has become. The laws of nations must change to better govern the speculation-arbitrage dynamics of modern computerized supply and demand.

How can excess system costs be resolved autonomously? 7 new systems of laws must be emplaced to solve our excess system costs problem autonomously:
1. Honest mandated specialty education.
2. External exchange clearing.
3. Internal exchange clearing.
4. A new triply entry “Bank of the U.S.” under Treasury control.
5. A P.X. leisure age employment stabilization system.
6. Computerized rebalance arbitraging against excess speculation.
7. New dynamic sliding time scaled laws instituting all systems.

Are both external and internal exchange clearing required? Yes. The entire system will be governed by a new dynamic incentive law system. External exchange clearing will be instituted to handle the excess derivatives and foreign exchange speculations, where all transactions will pass through either its computerized monitoring section or its live people (specially mandated educated) governed board of directors. All foreign transaction must be processed through this new clearing system, for global balance of payments, currencies and prices rebalancing processes. This will be instituted by such suggested new laws as per Paul Davidson, or Keynes’ older “bancor” and international bank clearing system, also much the same as Plato 1st suggested millennia ago. This system will be a best practices combination of all three. (see reference links below)(must also include all Keynes’ inter-governmental papers ideas about bancor, mainly in Skidelsky)

What are the major elements of internal exchange clearing? Internal exchange clearing is a dynamic incentive law structure, consisting of a 1/5 P.X. social contract paradigm change, a new triple entry banking system with an autonomous self-managing printing press — Only — when the entire system of laws and institutional changes are fully implemented. The system is an 80%/20% inverse wage social contract eco-legal and banking system — Completely Marketized — As a national Or global capitalist system. The P.X. is then capable of functioning as a crude-printed public works system — Instituted — Only — after complete social contract overhaul — Top to bottom. The 1% to 20% P.X. is a total dynamic pricing mechanism of all commodities, goods and services — Within This Sector Only — Designed to prevent inflation and reflate deflationary periods, if ever necessary, and with all official exchange markets left untouched. The manufacturing sector of this system will have total quality control laws to prevent junk inflation — Legally computer monitored, with strict legal enforcement of the total structure. The entire structure is designed to create a price-downward pricing mechanism, which dynamically prevents unwanted inflation, yet can also be used for fast emergency reflations.

Internal exchange clearing is a total solution. We claim “Internal Exchange Clearing” is the only feasible answer for the future — The final answer to most all of our financial problems. It is a system offering an all-encompassing solution to most national and international problems and conflicts. This is a monetary system proposal to rebuild America and the entire world — A scientifically quantifiably provable system, with math, graphs and counterfactual logics. We claim this to be an answer to everyone’s wishes — from environmentalists to financial tycoons — All are satisfied by “Internal Exchange Clearing”, as it has the rare ability to solve such massive problems, from the environment to science, technology and high-finance.

How does triple entry banking function? This will be an entirely new “Bank of The U.S.” legally instituted as a public enterprise bank, as per Hamilton’s first “Bank of The U.S”, fully separate from the existing FED, even though it can be run out of the same buildings, with new law mandates. Triple entry banking is simply negative reserve banking, governed by its own new set of laws and management. Triple entry banking is an entirely new expansion of the existing banking system, allowing the nation to move from national debt obligation, to national debt sovereignty. It’s a banking system balanced on world transactions ratios to national debt levels, with complete computerized oversight and semi-philanthropic management. It is a monetized debt system of triple entry banking — dynamically adjusting percentage wise, debt to GNP, amongst participating nations. Of the 100% to 80% free market to the 1% to 20% dynamically price-semi-managed market, only the 100% to 80% free market needs repayment. The 1% to 20% dynamically semi-managed semi-philanthropic market needs no repayment; but — Only — After full system implementation, and this point can-not be stressed enough — Only — After full system implementation. Every piece of the entire system must be in place — First. (see reference links below)

How does triple entry banking accomplish being a self-managed printing press? The 80%/20% market law structure’s J-curve actions automatically control all inflation, deflation, exchange rates and competition, etc., upon full implementation. The entire 1/5 P.X. market dynamics automatically self-autonomizes the entire system within reasonable financial bounds, through its dual-action supply and demand dynamics between the two percentage systems. These dynamically semi-managed prices automatically supply and demand balance exchanges, inflation, wages and debt ratios, etc. — The entire system through. The whole systems’ dynamics are fully quantifiable by the simple formula of E = 1/5 X, clear concepts and graph mechanics’ logic.

How does the P.X. leisure age labor stabilizer function? This involves placing the public sector P.X. labor market stabilizer in a dual-mode supply and demand competition with the existing free-enterprise sector of the economy — One semi-managed and one free as it presently is. The semi-managed P.X. is a 1% to 20% maximum sequester of all means of resources, goods, services and production, to be sequestered only as the evolution of the 100% to 80% free-enterprise side of the economy closes outdated and outmoded businesses, companies and corporations, through its natural economic attrition processes, unless emergency economic mechanics and conditions mandates a necessary acceleration of more full institution, even to the high emergency level of 20%, its maximum public support limit of dynamic mechanics — Which must be used if a full blown global depression befalls us all, before institution of this new capitalist system is legally emplaced and functioning. Digital technologies, computers, formal functioning databases and industrial robotics, continued labor market share, will clearly warrant this implementation, sometime in the near future. This new market system will require an extensive law system to fully institute. This will be the largest and most complex law system of all 7 offered, and much of the market moves by authorities will require full secrecy, not to alert speculators to such windfall opportunities. Varied implementation scenarios can easily be applied, secretly.

How are derivatives markets resolved? The derivatives problem will be resolved through a computerized oversight by the historically well-known yet never instituted external exchange clearing. Derivatives, being the most complex of all capitalism’s market transactions must be carefully and thoughtfully managed, not to disturb the necessary international financial transactions, already in play — This is of extreme importance and interest to the international bankers and major corporations involved, and the entire system is designed not to upset these special interests, but actually compliment their needs, as any form of capitalism can survive by no other method. Even though Warren Buffet called them “financial weapons of mass destruction” he forgot to offer any real world solution, which “Internal Exchange Clearing” does offer, and that is proper monitoring and assistance until global prices and currencies can be fully and truly rebalanced, which will completely reduce the dangers and damages this market has on the real world, even though it presently acts as a real global insurance risk policy for all major international banks and corporations, even if highly flawed. Direct law on derivatives is not the best practice method available to deal with them. Fixing the underlying structural laws and market prices, back to true ppp’s (real purchasing price parities) is the best method, thus automatically solving and dissolving the derivatives problems over enough time — Safely — for all involved, and even to us mere citizens’ joy.

How is debt resolved? Debt is easily resolved through the dynamics set in play by all external and internal exchange clearing, banking and P.X. being fully instituted and implemented. All public debts — Public Debts Only — over enough time, can be fully monetized with no inflationary damage to this powerful system of self-autonomous dynamics. Debt monetization is recommended to take place in exact ratio to implementation percentages, from the 1% to 20% maximum level, as deemed necessary according to real world conditions and needs — This would be to increase debt monetization the same corresponding percentage increases of entire system institution and implementation ratios — This is not set in stone, but only a best recommended scenario of real debt reduction. It may take you some extra time to wrap your conventional mind/brain around this idea, requiring new and expanded highly theoretical thinking, with fully unconventional and totally new theoretic thinking, as we pre-warned at the head of this paper.

How is inflation resolved? The inflation dynamics is a bit more complex to explain than the deflation mechanics below, but basically it’s when the overall dynamic mechanics of the entire system is fully implemented, and as already mentioned above, it becomes a very dynamic dual-purpose and action supply and demand system, with the new P.X. market able to work its downward pricing mechanics on the upward pricing mechanics of the totally free-enterprise side of the economy, thus halting inflation in its tracks, when deemed too costly to the system. This semi-managed dynamic pricing P.X. will be controlled by very strict enforcement of its law structure, to prevent what could easily become an extremely corrupt system, if not done so. This is the major reason this part of the system is so crucial to being properly legally controlled, having stiff penalties for moral and ethical violations of its managers and participants. As long as everyone stays honest, and we can see no reason why they really wouldn’t want to be honest in such an efficient and moral system, as violations should be punishable by ostracization from the awesome benefits of the system, and we feel most people are wise enough not to cut their own throats that bad.

How is deflation resolved? Due to the safeguards of the above 7 systems emplaced, the new triple entry banking system can safely actually crude print, if necessary, and the 20% P.X. labor system can hire all workers laid off in the 80% free enterprise side of the entire system. The entire system mechanics can even create, afford and tolerate a 10% to 15% growth rate per year, without incurring dangerous inflation. All is needed to do is to bump up the dynamics of the sliding time scaled mechanisms’ laws, to its highest efficiency levels, easily employing all who wish to have a real job, even if it’s a leisure-age job of doing one’s own hobby, for a decent wage. The system is capable of creating new jobs at any rates that may be required to revive proper and full employment, thus ending any deflation, unwanted, plus avoiding the looming problems of digital technologies, computers, formal databases and robots further de-employing capitalism.

Is autonomous action best, or is universal action best? Universal action is best, but either will work. We suspect unilateral autonomous action will be the route necessary to take, but once known, any nation can be the first to take unilateral action. I suspect China or Russia just may be the first, unless we act first. Even if they do act first, it’s still no problem for us to act second or later, as “Internal Exchange Clearing” is that capable a system of capitalist revival from the dead.

How is political action achieved? Local political action is best achieved by education — Education first of all for the economists needed to educate the political scientists, other economists and politicians, and finally mandatory academic logic, math and economic courses meriting their metal of thought, comparable to our present real world needs for this system’s integration and operations.

These ideas should be further clarified, simplified and fully understood by as large a group of knowledgeable economists as possible by distributing this work as widely as possible amongst them and others. We ask for the help of as many economists, historians, mathematicians, physicists, chemists, biologists and logicians as we may possibly attract, as we feel the fast approaching robotic de-employment of capitalism is a very close reality, with its far more than presently thought, rapid spread, making time of a primary essence. We feel it best to pre-implement before a real and dangerous financial collapse is fully upon us, even though this system has the power to raise the entire capitalist system, even from the dead extreme liquidity trap it most certainly will face, some time out into the future, with all the increase of debts, trouble-spots and de-employments by robots and other techs, we see upon the horizon. This is just a message to be persuaded to heed. It is not a dire warning, but it could easily become one.

How is international political cooperation achieved? In the existing climate of non-international cooperation, education is our best foot forward. Next would be to institute the system unilaterally, as it is capable of autonomously functioning completely unilaterally, independently. If any nation were to do so, other nations would most likely competition-wise need to follow suit, as the efficiencies would be irresistible, not to do so, as they’d be so economically punishing. Another method of achievement would be to simply realize a very similar system is already functioning globally at present, by way of China’s mercantilist practices of its manipulated low value currency and market system actually presently clearing all capitalist world exchanges of inflation, by its low export prices, due to its highly undervalued labor arbitrage forces upon the existing capitalist system. One only needs to look to see these facts. If China were to implement first, then the rest of the world would be forced by competition to copy. It’s really that simple.

Are there limits to credit/debt expansion? Yes. In general terms, the limit of credit/debt expansion would be; “Nations can only print until the costs of repayment of debts exceed the limits of the printing press gains”. In other words, nations can never exceed the pay-back abilities of total costs, where excess printing only destroys the economy with capital flight and hyper-inflation, as that’s the guaranteed limit of any nation exceeding its limit of repayment abilities. This number is always dynamic and must be figured according to the total data of the date figured. The IMF, World Bank, Bank of International Settlements, Clearing House of International Payments System, Federal Reserve, U.S. Treasury, Comptroller of Currency and The Congressional Office of Management and Budget can all be consulted for the numbers needed. The CIA World Fact Book is also highly useful, for quick global facts.

We kindly request help from as many professionals as may offer.

References:
https://www.cia.gov/library/publications/the-world-factbook/index.html http://en.wikipedia.org/wiki/Bancor Keynes Bancor
http://en.wikipedia.org/wiki/International_Clearing_Union Keynes Bancor
http://en.wikipedia.org/wiki/Bretton_Woods_Conference Keynes Bancor http://www.bis.org/review/r090402c.pdf Keynes Bancor http://www.imf.org/external/np/pp/eng/2010/041310.pdf Keynes Bancor http://en.wikipedia.org/wiki/Triffin_dilemma Keynes Bancor http://econ.bus.utk.edu/documents/davidsonpapers/reg2.pdf Paul Davidson’s Keynes Bancor System - International Money Clearing Unit (IMCU)
CHIPS https://www.chips.org/docs/000652.pdf?statistics
BIS http://www.bis.org/publ/otc_hy1405.pdf End 2013
Int. Labor Org. http://www.ilo.org/emppolicy/lang--en/index.htm#figure%201a

Wednesday, September 25, 2019

Gustav Cassel - PPP's - China?___You were all warned...!

Gustav Cassel - PPP's - China?___An older article, updated and re-published, yet still very pertinent...
Over the past week I have posted several articles about the international financial architecture, the IMF, WTOsweatshopsFTAA, etc. I felt I should expand my ideas to bring more clarity to these posts. I thought I'd use the case of China - U.S. trade and purchasing power parities. Below is quoted a few lines about Professor Cassel, the creator of purchasing power parity theory. I feel this is the most important economic theory, especially in trying to understand the global labor and wealth arbitrage now going on in the world. Many have argued trade will eventually rebalance markets. As I have already pointed out in a recent post, "the glaring imbalances in global wages is beyond economic reality, no matter what other economists' dribble may say. This sweatshop situation will almost empty America of jobs befor trade realities rebalance markets to fair global ppp's if let to continue." Let me expand.

Let's just take Wall-Mart for an example as it is the largest corporate footprint between the U.S. and China trade and economic realities - close to a trillion dollar corporation. It would be one thing if we only had to deal with a currency value at 6.86 to 1. It's quite another when the internal value of that currency is another 25 to 50 times cheaper[depending on location in China] than ours, making real wages for Wall-Mart sweatshops at an average of 10 cents/hr. to an average of 25 cents/hr. for their retail stores' workers in China(86 cents average for entire country). I think all the economists writing on this subject should get a handle on it by rereading Professor Cassel's books again. They may wake up and come to different conclusions about trade and economic realities being able to rebalance world markets over time - how much time, a hundred years? China is in real deflation, while also inflating, making matters worse, not better. They have lost 22million jobs, themselves. World demand has shrunk tremendously since the crashes of `95 to 2002. We have never been here befor as Edward Hugh often points out.(Much of this needs updating, but the point remains, massive losses of jobs in certain sectors, as other sectors add more workers, yet overall decrease of jobs, even today).

The NGO's around the world are trying to wake up everyone, but the sleep seems to be a Rip-Van-Winkle reality. Befor the Elite Consensus awakens we will have arbitraged every democracy in the world to corporatocracy(and communism). Do we want that? America has been nothing but a giant dump truck full of corporations, with the body slowly going up for the last thirty years, spewing extractive corporations to every nation. No one wants them coming in and destroying but they are there doing just that. Now at this point economists and others will scream what are you a kook? No, I am not. I am simply pointing out a powerful economic reality. It is impossible to build locally, or nationally fast enough to keep up with the international economic extractive capabilites of the corporations. As Steven Roach pointed out, global trade has risen from 11% of global GDP in 1970 to 25% of global GDP in 2003(and when derivatives are added in, a massive 95+%), with no end in sight. Pretty soon the oceans and skys are going to be overfull with cargo carriers, polluting and using massive amounts of our precious fossil fuels, for nothing other than infectious greed.

Corporations operating out of China are making as high as 40 to 90 cents profit on every dollar. This is outrageous, and it will not stop, and they surely arent sharing out of the 37+ tax havens. Not only are they not sharing the wealth but the internation dynamics of credit producitvity and multiplication factors of drastically reduced reserve requirements' banking, is contributing to an ever faster creation of massive asset bubbles that will surely end in crashes, sooner or later. The major question is how soon, and where?

Now if anyone still thinks trade will rebalance world markets in a climate of global deflation, of 31million manufacturing jobs vanished from 1995 to 2002, let me know. Even if the currencies between China and the U.S. were floated and reached 1 to 1 the internal ppp values would still allow corporations plenty of profit to continue the madness for years to come. An does anyone seriously think the U.S., or other nations, is going to let the dollar become cheaper than the yuan? It would have to be .87, or there abouts, to the dollar to balance ppp's, and truly rebalance these markets. This is why I say this situation is beyond economic realities' solutions - future crash guaranteed if let to continue.

Gustav Cassel

Gustav Cassel, a Swedish economist, developed the theory of exchange rates known as purchasing power parity. He did so in some post-World War I memoranda for the League of Nations. The basic concept can be made clear with an example. If 2 U.S. dollars buy one bushel of wheat in the United States, and if 1.6 German marks exchange for 1 U.S. dollar, then the price of a bushel of wheat in Germany should be 3.2 German marks (2 * 1.6). In other words, there should be parity between the purchasing power of one U.S. dollar in the United States and the purchasing power of its exchange value in Germany.

Cassel believed that if an exchange rate was not at parity, it was in disequilibrium and that either the exchange rate or the purchasing power would adjust until parity was achieved. The reason is arbitrage. If wheat sold for $2.00 in the United States and for DM4 ($2.50) in Germany, then arbitragers could buy wheat in the United States and sell it in Germany and would do so until the price differential was eliminated.

Economists now realize that purchasing power parity would hold if all of a country's goods were traded internationally. But most goods are not. If the price of a hamburger in the United States was $1.00 and in Germany was $1.50, arbitragers would not buy hamburgers in the United States and resell them in Germany. Transportation costs and storage costs would more than wipe out the gain from arbitrage. Nevertheless, economists still take seriously the concept of purchasing power parity. They often use it as a starting point for predicting exchange rate changes. If, for example, Israel's annual inflation rate is 20 percent and the U.S. inflation rate is 4 percent, chances are high that the Israeli shekel will lose value in exchange for the U.S. dollar. ....Article Continued

Wednesday, March 21, 2018

A Zone of Reality!




"Iff" you listen very carefully, will you understand. All the world's greatest intellectuals have been mistaken. The wisest have known the truth; yet, They have all then added their own personal pre-suppositional directionality to their final positions. Therefore, all public information is, in total, dis-information and outright lies → That's all of em!

Wednesday, December 06, 2017

The Integrity of Honesty → The Integrity of Responsibility



The Integrity of Honesty
The Integrity of Responsibility

"If the laws are going down the wrong road, we are all going down the wrong road, and they are! We need to change paths".

Men and women are not naturally constituted of the most righteous of base thoughts and ideas. We are too much an easily fallible species, seldom strong, and more often of weak sentiments, interpreters and intellects. How may we rectify this? ----- Oh that we could speak like this:

“The means by which national exigencies are to be provided for, national inconveniences obviated, national prosperity promoted, are of such infinite variety, extent, and complexity, that there must of necessity be great latitude of discretion in the selection and application of those means. Hence, consequently, the necessity and propriety of exercising the authorities intrusted to a government on principles of liberal construction”. Alexander Hamilton

Dictionary of Modern American Philosophers, John Shook on James Feibleman


Feibleman’s system reflects his belief that “the purpose of a philosophy … is to find the nature of the universe of all universes while at the same time saving the facts, to account for every type of detail in the world as well as to seek out reasons for the very existence of such detail. A philosophy is a scale-model of all that we can describe from our experience or imagine, a model based on an ontological system.” He viewed ontology as “the most important branch of philosophy”, and his own ontology as the foundation of his system… Feibleman set forth his ontological theory, which he called axiologic realism, in his near 800 page magnum opus Ontology (1951). That work culminates in a list of 599 “postulates” of axiologic realism, systematically arranged in a way that recalls Spinoza’s Ethics and Wittgenstein’s Tractatus. Only the barest sketch of that system can be given here.

The central claim of axiologic realism is that there are only three fundamental categories or ontological universes: (1) essence or possibility, (2) existence or actuality, and (3) destiny or teleology. Feibleman describes essence or possibility along the lines of Plato’s Sophist, as “the power to affect or be affected.” The universe of essence thus consists of “the total of all items having the power to affect or to be affected taken together.” It is “a universe of pure being” … governed by determination and law” (1951). It is also the realm of both universals and values; thus, Feibleman’s ontology commits him to realism about universals (in other words, a “realism” in the sense in which it is opposed to nominalism) and to realism about values (hence the name “axiologic realism”).

The Self-Sovereign Moral Self:

"Morality, to me, is as I see others, morally see me and my actions, in relation to theirs -- It's a lived and learned experienced dynamics of truth, trust, fair-mindedness and honesty, from childhood up". 


"The values-conflation problem is the world’s greatest problem, we must straighten out”.

A Systematic Presentation of Peirce's Ethics, James Feibleman

"Morality insists that a motive is either good or bad. That the gulf between them is bridged over and that most motives are somewhere near the middle of the bridge, is quite contrary to the teachings of any moral system which ever lived in the hearts and consciences of a people" "The very simplest and most rudimentary of all conceivable systems of quantity is that one which distinguishes only two values. This is the system of evaluation which ethics applies to actions in dividing them into the right and the wrong" Morality, as the application of ethical principles to conduct, must be an affair of approaching more or less closely to but not of attaining absolute limits. Thus it requires a many-valued system and not merely a two-valued one. "The rule of ethics will be to adhere to the only possible absolute aim, and to hope that it will prove attainable. Meantime, it is comforting to know that all experience is favorable to that assumption" C.P.

In my own summation: 

Values are the most important universal Zeitgeist agency on earth; where, The moral self grounds in itself; the ethical grounds in self and law; and the rational scientific grounds in self and earth – 3 independent groundings. Morality is the automatic actions created between our essence and the mind’s noumenal agents, “self-auto-creating our esthetic judgment noumena and morality” from experiences, interpretive-interpretant noumenal agents (percepts) and our bio-noumenal essence potential, interactions. (The “thing in itself”, exposed)  (Simply put -- My essence can ground itself, no other way). 
(copyrighted - all rights reserved - lloyd.gillespie@gmail.com )

A Question of Limits — System Costs…
E = 1/5 X — A 1/5 Division of Global Exchanges Creates Perfect Competition…

A warning: You will understand none of this without abandoning conventional thinking, and adopting a theoretical stance of non-conventional thinking.

What are system costs? They are the costs it requires us to run capitalism beyond its natural state costs. What is capitalism’s natural state? That’s a rather difficult question and should be better phrased as; “What would be capitalism’s best natural operating state?” Now, that’s more answerable. Capitalism’s best natural operating state should be a state of pure equilibrium of global prices and resources according to contained value of each resource and product. O.K., but that poses a further problem when all nations have different amounts of individual resources and populations, how would we ever achieve pure equilibrium? I could see writing new dynamic laws to equilibrate prices, but not resources and populations. Wait a minute, we could also write dynamic sliding time scaled ratio-balancing laws to even balance out unequal resources and populations per GDP’s, as long as all currencies are also dynamically sliding time scale balanced to all internal and external prices and resources to GDP ratios. Such ideas must always respect the core necessities of incentives, supply and demand not be disturbed.

Now, let’s get back to the initial question — What are system costs? Since a perfect state of capitalism would be a pure and true equilibrium state of global prices and resources, system costs would be the costs incurred by and beyond any initial state balance into imbalances in prices and resources from its initial pure state model, and these costs would be proportional in a direct ratio to such imbalances, i.e., the further capitalism became imbalanced to its initial pure state balance of prices and resources, the higher the excess system costs would become, of running such a system. That’s a pretty straight-forward probability matrix, is it not? So, why all the problem of global political-economics, of the present imbalances and excessive costs, being laid back on the many by the few? Is it a problem of education? Is it improper education or possibly a learning disability? Are we all intellectually dyslexic? What gives here, when the problem seems so simple to solve? Have we not ever tried to solve the real problem of “excess system costs”?

It seems this is the problem. We have never even entertained the question about the problem of “excess capitalist system costs”. Why? I don’t know. Is it possible no-one has ever thought of posing the simple question? Quite possible, as it easily seems to answer it-self as soon as it’s posed.

How exactly are excess system costs/debts incurred, above normal market debts? Global computerized speculation has excessively imbalanced markets; therefore, global computerized arbitrage is now required to rebalance markets. Since excess computerized speculation (all speculative short and long positions combined) exceeds natural market arbitrage, written law computerized arbitrage must now be instituted to even begin to rebalance global markets. Natural market arbitrage falls far short of what is required to naturally rebalance markets. These inertial market changes have taken place so subtle over the last several decades, we simply haven’t noticed the massive growing imbalance’s true causes, as most do not understand computerized speculation and arbitrage dynamics for the imbalancing damage it’s truly doing, when these two necessary market states are out of balance as severe as this state of affairs has become. The laws of nations must change to better govern the speculation-arbitrage dynamics of modern computerized supply and demand.

How can excess system costs be resolved autonomously? 7 new systems of laws must be emplaced to solve our excess system costs problem autonomously:
1. Honest mandated specialty education.
2. External exchange clearing.
3. Internal exchange clearing.
4. A new triply entry “Bank of the U.S.” under Treasury control.
5. A P.X. leisure age employment stabilization system.
6. Computerized rebalance arbitraging against excess speculation.
7. New dynamic sliding time scaled laws instituting all systems.

Are both external and internal exchange clearing required? Yes. The entire system will be governed by a new dynamic incentive law system. External exchange clearing will be instituted to handle the excess derivatives and foreign exchange speculations, where all transactions will pass through either its computerized monitoring section or its live people (specially mandated educated) governed board of directors. All foreign transaction must be processed through this new clearing system, for global balance of payments, currencies and prices rebalancing processes. This will be instituted by such suggested new laws as per Paul Davidson, or Keynes’ older “bancor” and international bank clearing system, also much the same as Plato 1st suggested millennia ago. This system will be a best practices combination of all three. (see reference links below)(must also include all Keynes’ inter-governmental papers ideas about bancor, mainly in Skidelsky)

What are the major elements of internal exchange clearing? Internal exchange clearing is a dynamic incentive law structure, consisting of a 1/5 P.X. social contract paradigm change, a new triple entry banking system with an autonomous self-managing printing press — Only — when the entire system of laws and institutional changes are fully implemented. The system is an 80%/20% inverse wage social contract eco-legal and banking system — Completely Marketized — As a national Or global capitalist system. The P.X. is then capable of functioning as a crude-printed public works system — Instituted — Only — after complete social contract overhaul — Top to bottom. The 1% to 20% P.X. is a total dynamic pricing mechanism of all commodities, goods and services — Within This Sector Only — Designed to prevent inflation and reflate deflationary periods, if ever necessary, and with all official exchange markets left untouched. The manufacturing sector of this system will have total quality control laws to prevent junk inflation — Legally computer monitored, with strict legal enforcement of the total structure. The entire structure is designed to create a price-downward pricing mechanism, which dynamically prevents unwanted inflation, yet can also be used for fast emergency reflations.

Internal exchange clearing is a total solution. We claim “Internal Exchange Clearing” is the only feasible answer for the future — The final answer to most all of our financial problems. It is a system offering an all-encompassing solution to most national and international problems and conflicts. This is a monetary system proposal to rebuild America and the entire world — A scientifically quantifiably provable system, with math, graphs and counterfactual logics. We claim this to be an answer to everyone’s wishes — from environmentalists to financial tycoons — All are satisfied by “Internal Exchange Clearing”, as it has the rare ability to solve such massive problems, from the environment to science, technology and high-finance.

How does triple entry banking function? This will be an entirely new “Bank of The U.S.” legally instituted as a public enterprise bank, as per Hamilton’s first “Bank of The U.S”, fully separate from the existing FED, even though it can be run out of the same buildings, with new law mandates. Triple entry banking is simply negative reserve banking, governed by its own new set of laws and management. Triple entry banking is an entirely new expansion of the existing banking system, allowing the nation to move from national debt obligation, to national debt sovereignty. It’s a banking system balanced on world transactions ratios to national debt levels, with complete computerized oversight and semi-philanthropic management. It is a monetized debt system of triple entry banking — dynamically adjusting percentage wise, debt to GNP, amongst participating nations. Of the 100% to 80% free market to the 1% to 20% dynamically price-semi-managed market, only the 100% to 80% free market needs repayment. The 1% to 20% dynamically semi-managed semi-philanthropic market needs no repayment; but — Only — After full system implementation, and this point can-not be stressed enough — Only — After full system implementation. Every piece of the entire system must be in place — First. (see reference links below)

How does triple entry banking accomplish being a self-managed printing press? The 80%/20% market law structure’s J-curve actions automatically control all inflation, deflation, exchange rates and competition, etc., upon full implementation. The entire 1/5 P.X. market dynamics automatically self-autonomizes the entire system within reasonable financial bounds, through its dual-action supply and demand dynamics between the two percentage systems. These dynamically semi-managed prices automatically supply and demand balance exchanges, inflation, wages and debt ratios, etc. — The entire system through. The whole systems’ dynamics are fully quantifiable by the simple formula of E = 1/5 X, clear concepts and graph mechanics’ logic.

How does the P.X. leisure age labor stabilizer function? This involves placing the public sector P.X. labor market stabilizer in a dual-mode supply and demand competition with the existing free-enterprise sector of the economy — One semi-managed and one free as it presently is. The semi-managed P.X. is a 1% to 20% maximum sequester of all means of resources, goods, services and production, to be sequestered only as the evolution of the 100% to 80% free-enterprise side of the economy closes outdated and outmoded businesses, companies and corporations, through its natural economic attrition processes, unless emergency economic mechanics and conditions mandates a necessary acceleration of more full institution, even to the high emergency level of 20%, its maximum public support limit of dynamic mechanics — Which must be used if a full blown global depression befalls us all, before institution of this new capitalist system is legally emplaced and functioning. Digital technologies, computers, formal functioning databases and industrial robotics, continued labor market share, will clearly warrant this implementation, sometime in the near future. This new market system will require an extensive law system to fully institute. This will be the largest and most complex law system of all 7 offered, and much of the market moves by authorities will require full secrecy, not to alert speculators to such windfall opportunities. Varied implementation scenarios can easily be applied, secretly.

How are derivatives markets resolved? The derivatives problem will be resolved through a computerized oversight by the historically well-known yet never instituted external exchange clearing. Derivatives, being the most complex of all capitalism’s market transactions must be carefully and thoughtfully managed, not to disturb the necessary international financial transactions, already in play — This is of extreme importance and interest to the international bankers and major corporations involved, and the entire system is designed not to upset these special interests, but actually compliment their needs, as any form of capitalism can survive by no other method. Even though Warren Buffet called them “financial weapons of mass destruction” he forgot to offer any real world solution, which “Internal Exchange Clearing” does offer, and that is proper monitoring and assistance until global prices and currencies can be fully and truly rebalanced, which will completely reduce the dangers and damages this market has on the real world, even though it presently acts as a real global insurance risk policy for all major international banks and corporations, even if highly flawed. Direct law on derivatives is not the best practice method available to deal with them. Fixing the underlying structural laws and market prices, back to true ppp’s (real purchasing price parities) is the best method, thus automatically solving and dissolving the derivatives problems over enough time — Safely — for all involved, and even to us mere citizens’ joy.

How is debt resolved? Debt is easily resolved through the dynamics set in play by all external and internal exchange clearing, banking and P.X. being fully instituted and implemented. All public debts — Public Debts Only — over enough time, can be fully monetized with no inflationary damage to this powerful system of self-autonomous dynamics. Debt monetization is recommended to take place in exact ratio to implementation percentages, from the 1% to 20% maximum level, as deemed necessary according to real world conditions and needs — This would be to increase debt monetization the same corresponding percentage increases of entire system institution and implementation ratios — This is not set in stone, but only a best recommended scenario of real debt reduction. It may take you some extra time to wrap your conventional mind/brain around this idea, requiring new and expanded highly theoretical thinking, with fully unconventional and totally new theoretic thinking, as we pre-warned at the head of this paper.

How is inflation resolved? The inflation dynamics is a bit more complex to explain than the deflation mechanics below, but basically it’s when the overall dynamic mechanics of the entire system is fully implemented, and as already mentioned above, it becomes a very dynamic dual-purpose and action supply and demand system, with the new P.X. market able to work its downward pricing mechanics on the upward pricing mechanics of the totally free-enterprise side of the economy, thus halting inflation in its tracks, when deemed too costly to the system. This semi-managed dynamic pricing P.X. will be controlled by very strict enforcement of its law structure, to prevent what could easily become an extremely corrupt system, if not done so. This is the major reason this part of the system is so crucial to being properly legally controlled, having stiff penalties for moral and ethical violations of its managers and participants. As long as everyone stays honest, and we can see no reason why they really wouldn’t want to be honest in such an efficient and moral system, as violations should be punishable by ostracization from the awesome benefits of the system, and we feel most people are wise enough not to cut their own throats that bad.

How is deflation resolved? Due to the safeguards of the above 7 systems emplaced, the new triple entry banking system can safely actually crude print, if necessary, and the 20% P.X. labor system can hire all workers laid off in the 80% free enterprise side of the entire system. The entire system mechanics can even create, afford and tolerate a 10% to 15% growth rate per year, without incurring dangerous inflation. All is needed to do is to bump up the dynamics of the sliding time scaled mechanisms’ laws, to its highest efficiency levels, easily employing all who wish to have a real job, even if it’s a leisure-age job of doing one’s own hobby, for a decent wage. The system is capable of creating new jobs at any rates that may be required to revive proper and full employment, thus ending any deflation, unwanted, plus avoiding the looming problems of digital technologies, computers, formal databases and robots further de-employing capitalism.

Is autonomous action best, or is universal action best? Universal action is best, but either will work. We suspect unilateral autonomous action will be the route necessary to take, but once known, any nation can be the first to take unilateral action. I suspect China or Russia just may be the first, unless we act first. Even if they do act first, it’s still no problem for us to act second or later, as “Internal Exchange Clearing” is that capable a system of capitalist revival from the dead.

How is political action achieved? Local political action is best achieved by education — Education first of all for the economists needed to educate the political scientists, other economists and politicians, and finally mandatory academic logic, math and economic courses meriting their metal of thought, comparable to our present real world needs for this system’s integration and operations.

These ideas should be further clarified, simplified and fully understood by as large a group of knowledgeable economists as possible by distributing this work as widely as possible amongst them and others. We ask for the help of as many economists, historians, mathematicians, physicists, chemists, biologists and logicians as we may possibly attract, as we feel the fast approaching robotic de-employment of capitalism is a very close reality, with its far more than presently thought, rapid spread, making time of a primary essence. We feel it best to pre-implement before a real and dangerous financial collapse is fully upon us, even though this system has the power to raise the entire capitalist system, even from the dead extreme liquidity trap it most certainly will face, some time out into the future, with all the increase of debts, trouble-spots and de-employments by robots and other techs, we see upon the horizon. This is just a message to be persuaded to heed. It is not a dire warning, but it could easily become one.

How is international political cooperation achieved? In the existing climate of non-international cooperation, education is our best foot forward. Next would be to institute the system unilaterally, as it is capable of autonomously functioning completely unilaterally, independently. If any nation were to do so, other nations would most likely competition-wise need to follow suit, as the efficiencies would be irresistible, not to do so, as they’d be so economically punishing. Another method of achievement would be to simply realize a very similar system is already functioning globally at present, by way of China’s mercantilist practices of its manipulated low value currency and market system actually presently clearing all capitalist world exchanges of inflation, by its low export prices, due to its highly undervalued labor arbitrage forces upon the existing capitalist system. One only needs to look to see these facts. If China were to implement first, then the rest of the world would be forced by competition to copy. It’s really that simple.

Are there limits to credit/debt expansion? Yes. In general terms, the limit of credit/debt expansion would be; “Nations can only print until the costs of repayment of debts exceed the limits of the printing press gains”. In other words, nations can never exceed the pay-back abilities of total costs, where excess printing only destroys the economy with capital flight and hyper-inflation, as that’s the guaranteed limit of any nation exceeding its limit of repayment abilities. This number is always dynamic and must be figured according to the total data of the date figured. The IMF, World Bank, Bank of International Settlements, Clearing House of International Payments System, Federal Reserve, U.S. Treasury, Comptroller of Currency and The Congressional Office of Management and Budget can all be consulted for the numbers needed. The CIA World Fact Book is also highly useful, for quick global facts.

We kindly request help from as many professionals as may offer.

References: