[GJM] #11 TK Wilson And Lurban Kohler On The Inner Structure Of TOP (The Optimum Policy)

[Wesley S. Burt]

Hello again old friends of the Republic,

Now it seems that members of list FixGov want the 
existing machine (the US economy) to be destroyed, 
instead of fixed.  Perhaps I am mistaken in my reading 
of Wilson and Kohler.  If so, I hope they will explain why 
Fix-Gov writers have been so reluctant to comment on 
TOP [the optimum policy for any species of reproducible 
productive assets] or TWP [the wrong policy for any 
species of reproducible productive assets] which is 
about 110 years old in the US and about 2981 years 
old in the Commonwealth Nations and the Middle East.  

Keep in mind, that the accepted method of 
reducing the population of any contemptible 
species of pests is to impair their reproductive 
process.  When the pests are people (six billion 
and counting), the accepted method is called: 
Genocide Done Slowly, as done since BC 975 
with a few short intervals of TOP.  I know of only 
two such intervals: the USA from 1789 to the 
1890s, and the economic miracles of Japan 
and Western Europe from 1946 to the 1970s.

--------- Forwarded message ----------
From: Lurban Kohler <lurbankohler at yahoo.com>
To: FixGov at yahoogroups.com
Date: Thu, 2 Nov 2006 08:17:34 -0800 (PST)
Subject: [FixGov] TK puts it in a nutshell


--- T K Wilson <ommani at getgoin.net> wrote to list FixGov:
" . . . . . . ..  we are slaves in the literal sense of the
> word. Whether or not we help in forging our own
> chains is really beside the point.
> 
> ~~~~~~~~~~~~~ Snip ~~~~~~~~~~~~~~~~~~
> 
> Until the military industrial complex is entirely displaced 
> and destroyed; until the entire corporatist (fascist) entity 
> is demolished, we will continue to suffer.  In point of fact, 
> without an all encompassing change in our cultural
> behaviour and outlook, we will suffer anyway, no matter 
> what system we create or accept as a replacement for 
> corporatist capitalism.

Urban: exceptionally well put TK. ----seems like we're
irretrievably trapped, & maybe that's why scenarios
eco or I or John DeSantis or Zazbali Khan or John
Gelles or anybody can come up with to extricate our
planet from the parasitic growth of which we are all
participating elements, all end up sounding like pipe
dreams of Eugene O'Niell's loser characters.

I have to imagine there's a way out of this. If
everybody understood it (and believe me I'm aware that
hardly anyone does, because I'm visiting my extended
family, with whom I can't even broach the subject
without being treated like a pariah!!) --if everybody
understood it maybe we'd find a way to ignore the
current power structure until it withered. Hope
springs eternal in the human heart. I personally must
cling to it, but also MUST hear the voices like TK who
point out the unwelcome realities of most stuff so
earnestly and well-intentionally proposed. 

We can only "do what we can do"
~~~~~~~ End  TK Wilson And Lurban Kohler ~~~~~~~~

The US economy, inspite of its faults, evokes the envy 
of every other industrial nation.  Big and powerful 
corporations rise and fall with scarcely a disturbance 
on the surface of things.  When the US work force decided 
in 1896 to stop producing a "bakers dozen," in the vain 
hope of reducing employment below 4%, the US economy 
shifted from a modest deflation rate of 1.2%/year to a 
modest inflation rate of 2.3%/year which continued for 
seven decades until 1971.  Unemployment, of course, 
continued well above 4%.  Today's commentary on 
money seldom reaches back beyond 1971 and the 
closing of the gold window.  The great events of the 
20th century: the income tax amendment and the FRB, 
WW I, the roaring 20s, the great depression, WW II, 
and following wars appear as only minor perturbations 
of that 2.3%/year inflation trend line.  And famous men 
denied the declining value of the dollar while their 
attention was focused on the business cycle.

After President Nixon closed the gold window in 1971, 
and Paul Volcker corrected the resulting financial 
instability in 1981, the economy operated at a constant 
inflation rate of 3.3%/year until 2003 when a new period 
of financial instability was started by George W. Bush.  
By 2005, the inflation rate had reached 4%/year as 
reported by my mentor, Dr. W. Curtiss Priest on list 
cyber-soc.  All of this financial history is captured on 
attached Figure 2-3e.gif, US Money Supply M1 and M3.  
Read it, and tell me how and why M1 was held at 
$1,200 Billion from 1994 through 2003 after the ten 
year run up from $500 Billion in 1984.

The second attached Figure 17h.gif, The Inner Structure 
Of TOP and TWP, has been revised.  Some redundant text 
on the right hand side of the figure was replaced with 
an end view of the continuous process which produces 
the wealth in a local, state, national, or world economy.  
Notice that there is nothing in the system but the people,
the land they occupy, the capital assets they built on the 
land, and a medium of exchange M1c-A = $385 Billion, 
which circulates 26 times per year to produce the 2003 
US GDP of $10,000 Billion/year.  Pay no attention to the 
World Market at 0/360 degrees nor to the Labor Market at 
180 degrees.  But do notice that people are selling in the 
Labor Market while corporations are selling in the World 
Market.  Our corporations have stablized the World Market 
but our people have yet to stabilized their labor market.

Also recall that People make all decisions, corporations do 
as people (management or customers) tell them to do.  
Every conflict of interest is between people's interests, 
not between people and corporations, nor between 
people and governments (which are corporations with 
votes or armed force instead of sales revenue from 
satisfied customers with an effective demand). 

Following the A + B theorem of C. H. Douglas there is a 
second quantity of the medium of exchange M1c-B = 
$288 Billion which circulates 52 times per year entirely 
within the corporations of the private sector to define 
business to business transaction of $15,000 Billion/year 
in the 2003 US economy.  That is to say, that the annual 
sales revenue of the whole US capital plant was $25,000 
Billion/year in 2003.  Notice that during the economic 
miracles in Germany and Japan their capital investment 
rate was 25% of GDP (10% of sales), while the US and 
UK had capital investment rates of 15 and 16% of GDP.  
Our more recent capital investment rates were up to 
20% of GDP, but still below the 10% of sales average 
for mature corporations.

So the big question is: when only about half, $673 Billion, 
of the outstanding medium of exchange M1 is circulating 
in the real economy, why was the 527 Billion + balance 
not invested in the capital plant, rather than held in + 
balances for financial speculation by people and 
corporations?  

The answer is because the US, since the "Great 
Transformation" in 1896 that Karl Polanyi wrote about 
in 1944, has capitalized only the expense of 1-12 grades 
of public education with its local tax revenue, and left 
the expense of subsistence for dependents plus the 
expense of higher education to be paid from each parenting 
family's budget, thereby reducing their purchasing power 
by about 3% of GDP for subsistence alone.  The 1942 GI 
Bill, which gave many WW II veterans a debt free higher 
education, was the only 20th century legislation toward 
stabilizing the US labor market.  Recall that the GI Bill 
was changed to a loan program ASAP after the veterans 
graduated. The answer is concise: the US domestic work 
force does not have enough effective demand to make 
additional capital investment more profitable than 
financial speculation.

Now, as I wrote on 28 Oct 2006 to list FixGov:

If we know how to design "alternative systems, 
cooperative instead of competitive, horizontal 
organization instead of hierarchical," it might 
be easier to fix the existing US machine."

There are no "alternative systems," only other people, 
other lands, other capital plants, and other mediums 
of exchange operating in a single "world market."  The US 
private sector is the archetype of horizontal organization, 
consisting of a multitude of diversified and decentralized 
sovereign corporations with only negligible supervision 
from a higher level of governance.  Each corporation does 
completely for its product lines what local governments 
do only half way, or less, for their parenting families.   
Local governments undercapitalize the nonrecurring 
fixed expense of developing the work force by withholding 
subsidies for dependents in accord with the "Principle of 
Subsidiarity" which prefers means-tested welfare payments 
at the poverty level rather than an adequate investment 
in human development which would minimize poverty.  

>From This Wrong Policy" (TWP), over the last thirty 
centuries, have come the world's current crop of 
"third world nations" with their few wealthy and their 
majority in poverty.  The agrarian version of TOP, 
which was adopted by thirteen British colonies in 
1789, boosted the US to Empire status by 1898 and 
our "nation building" experience with the former 
Spanish colonies was no more successful than our 
reconstruction of the former Confederate States 
of America after the Civil War.  Richard T. Ely and 
Henry Carter Adams founded the American Economics 
Association in 1885 to show John D. Rockefeller and 
associates how to extend the agrarian version of TOP 
to an industrial version of TOP.  Mr. John D. Rockefeller 
and associates applied the industrial version of TOP 
to their personal business and their corporations as 
illustrated by the lower chart (Capital Assets) on 
Fig17h.gif.  But they never considered replacing TWP 
with TOP to fund the development of the nation's 
work force as illustrated by the upper chart (Human 
Assets) on Fig17h.gif.  As Warren Buffet said recently:
If this is class warfare, my class is clearly winning.
So much for the subject that is taboo in America.

I want to extend a warm welcome to santa at no-log.org 
and thank him for his thoughtful comments on solutions 
proposed by Lurban Kohler and John Gelles on list FIX-GOV.

On Nov. 4, Walt Santa  commented 
on "War Funding" by Lurban on Oct. 29 and located 
Lurban Kohler on the establishment payroll and 
asked how much they were paying.  Lurban replied:
"I've been stabbing away at this for a long time, & 
thought I might have shown here and there a shred 
of evidence that I'm sincere (hurts that you imply 
I've sold out)-- 

On 6 Nov.  Walt Santa commented on "The chains 
of wage slavery" by John Gelles on Nov. 3 as follows:

John Gelles wrote:

> A greatly improved monetary system of production 
> (Keynes without debt) would fit such a cooperative 
> system of employment and work.

- - - - -  -

John,

I will agree that Keynes had some decent and 
workable ideas, so I see we DO have something 
in common. One of his most worthwhile ideas was 
the Bankor, presented at Breton Woods, the 
international currency which made international 
trade equitable. That's worth some discussion.

~~~~~~~~~~~~~ Snip several paragraphs ~~~~~~~~~~~

I predict a disaster of a different sort. This time 
I bet people are going to arm themselves, and 
they are going to hunt you and track you and 
your pals down and blow your brains out. And 
who could blame them? -- it would be like Justice 
without Guantanimo.

Walt

*:-.,_,.-:*'``'*:-.,_,.-:*'``'*:-.,_,.-:*'``'*:-.,_,.-:*``'*:-.,_,.-:*

"Only when the last tree has died and the last river 
been poisoned and the last fish been caught will we 
realize we cannot eat money."
        —Cree Indian Saying 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
Thanks again Walt.  I hope you can tell me why 
the optimum policy (TOP) has become ubiquitous 
in the world's corporations but cannot be mentioned 
on the Internet or in the US media.

Kind regards,

Wes Burt
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

               TOP and TWP are cognoscible on
                Dr. W. Curtiss Priest's web site at:
                    <http://www.epie.org/cyber-
                             soc/default.htm>
                 TOP is GOOD --- TWP is EVIL
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