[GJM] Draft, #848, Re, Monetary Theory Revisited, April 11, 1988.DOC, Gunnar

Tue Dec 4 18:45:47 MST 2007

Dear Gunnar,

Thanks for your encouraging and timely 
reply, forwarded below, with attached file: 
"Monetary Theory Revisited, April 11, 1988."

My good luck with your 1982 file vanished.
On that one, I double clicked on the attached 
file and my WORDPAD put the file on screen.

When I double clicked on the April 11, 1988 
file My WORDPAD gave the this message:

WORDPAD caused an invalid page fault in
module MSWRD832.CNV at 0167:0140f6d5.
Registers:
EAX=00000001 CS=0167 EIP=0140f6d5 EFLGS=00010206
EBX=00400000 SS=016f ESP=011ff95c EBP=011ff970
ECX=0040effe DS=016f ESI=0040f001 FS=4187
EDX=00000000 ES=016f EDI=0143bf38 GS=0000
Bytes at CS:EIP:
66 8b 1e 83 c6 02 0f b7 cb 8d 45 fc 50 51 e8 38 
Stack dump:
0040eb78 0000000f 0040e9dc 0040f6cb 00000008 
011ff998 01412624 0040e742 00400f89 00000001 
00000000 0000000f 00000000 00000402 0040e6c2 011ff9dc 
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
That was on the file attached to the message from Gang8, 
but the file attached to the copy to WesBurt at juno.com 
produced the same result. Saving the file first, and then 
opening it with WORDPAD got the same result.  So this 
problem is above my pay grade level. The problem is 
probably at my end.  My four lists at topica.com did not 
return #846 and #847.  My Juno folders were emptied 
and all messages were marked "unread" and saved to a
folder called: "restored 12-03-2007 (730 unread)". Any 
advice would be welcome.  This subject has been taboo in 
the USA for over a century, and taboo in the Middle East 
and Europe since "The Folly Of Rehoboam, B.C. 975.

 Gunnar, on 4-12-07 you concluded a post on,  
"Keynes, bancor etc," as follows:

More generally, the conceptual framework of 
Keynes’ General Theory does not mirror the 
circumstances of the world we live in – 
a world in which “savings” out of factor 
incomes are not the sole (or even principal) 
means of financing import “surpluses”.
A world in which Final Demand Inflation – 
new credit which supplements factor incomes 
as source of Final Demand – is a universal 
engine of profit generation.
Gunnar
~~~~~~~~~ End excerpt ~~~~~~~~~~

All too true, every method of injecting credit
into a national economy, that I am aware of, 
injects the new credit into the top income 
range by buying stocks and bonds from present 
owners of those stocks and bonds.  The lack 
of a children's allowance in the USA, which 
leaves human development undercapitalized by 
almost 50%, also contributes to final demand 
inflation and the growing gap between rich 
and poor, as shown by fig. 8 on attached 
Figure 4 & 8i.gif.

Kind regards,
Wes Burt

~~~~~~ Forwarded Reply From Gunnar ~~~~~~~~ 
From: gunnar.tomasson at verizon.net>
To: <wesburt at juno.com>,        
<Discussion at globaljusticemovement.net>, <FixGov at yahoogroups.com>,        
<chdouglas at yahoogroups.com>
Cc: <amd at daastol.com>,        
<gang8 at yahoogroups.com>
Date: Mon, 03 Dec 2007 20:30:27 -0500
Subject: RE: #847, Fw: Principles Of Economics, 
1982, GUNNAR TOMASSON

Dear Wes.

In his last year of life, Keynes paid tribute to 
the “wisdom of Adam Smith” and cautioned 
fellow economists against “much modernist 
stuff, gone wrong and turned sour and silly” 
(quoted from memory).

This modernist stuff is the stuff of mainstream 
orthodoxy.

There is a reason for its ready acceptance by 
would-be economists among second-rate 
mathematical minds – with high school level 
calculus under their belts, these minds can 
rise to pre-eminence in the field of the make-
believe economics against which Keynes 
cautioned.

Contemporary would-be economists were not 
amused – in a memorial article on Keynes, 
Paul Samuelson danced on his grave, heaping 
scorn and ridicule on Keynes as a dilettante in 
the field of economics who didn’t understand 
his own work in the General Theory, never had 
any serious interest in economic theory, and 
tired easily in the face of difficult theoretical issues.

One of these days, the history of economic 
theory since Keynes will be recognized for what 
it is – high-school calculus stuff peddled by the
best and brightest of the contemporary economics 
profession without understanding and appreciation 
of the importance of economics for the wealth 
of nations and much else.

My Principles of Economics paper of 1982 and 
my 1988 follow-up paper Monetary Theory Revisited 
(copy attached) were expressly written with that day 
in mind – a day when the first task of would-be 
economists will be to study and conceptualize the 
circular-flow essence of entrepreneurial market 
economies without which there can be no monetary 
economics worthy of the name.

It is a difficult task – but, once the essential aspects 
thereof have been mastered, it helps one come to 
intellectual grips with some of the pressing world 
economic issues of the day.

Therefore, I would welcome any comments and 
questions which you and your readers may have with 
respect to the subject matter of the two papers.

Gunnar 

From: wesburt at juno.com [mailto:wesburt at juno.com] 
Sent: 3. desember 2007 12:07
To: gunnar.tomasson at verizon.net; Discussion at globaljusticemovement.net;
FixGov at yahoogroups.com; chdouglas at yahoogroups.com
Cc: amd at daastol.com
Subject: #847, Fw: Principles Of Economics, 1982, GUNNAR TOMASSON

Dear Gunnar, 

I have enjoyed your exchange with Dirk on 
Principles Of Economics. Thank you for 
attaching your 1982 paper on that subject.
It is refreshing to hear some one else speak 
about those aspects of political economy 
which are conspicuously absent from our 
public debate; Adam Smith's great wheel of 
commerce, Circular-flow analysis, and Say’s 
Law.
For the benefit of my readers, if any, I have 
attached your 1982 paper and inserted one 
comment/question in section (5.) "Circular-
flow analysis." My final question is: If USA 
removed the 3-4% of GDP bias toward 
depression in the public sector of the real 
economy (1898 to date), would our market 
traders in the speculative economy object?

My goal, since 1969, has been a conception 
of the whole economy (real and speculative) 
that could generate the profiles in attached 
figure2-3g.gif, particularly the dwell of M1 at 
$1,200 Billion for the eight years from 1994 
to 2002, and, the great change in 1898 from 
1.2% deflation to 3.2% inflation.

If you find the topic worth discussing, perhaps 
Arno can be persuaded to distribute my posts 
to Gang11.

Kind regards,

Wes Burt

   TOP and TWP are cognoscible by sixth graders from
         Fig. 7-9.gif on Dr. W. Curtiss Priest's web site:
          <http://www.epie.org/cyber-soc/default.htm>
 TOP = 100% Capitalism --- TWP = 0 to 50% Capitalism
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