[GJM] #849, Lurban Kohler and Gunnar Tomasson On The Present Condition Of The USA

[wesburt at juno.com]

This is a resend, address error on original.
WesBurt at juno.com
To: lurbankohler at yahoo.com,gunnar.tomasson at verizon.net,
Discussion at globaovement.net,FixGov at yahoogroups.com,
chdouglas at yahoogroups.com
Date: Tue, 25 Dec 2007 14:50:58 -0500
Subject: #849, Lurban Kohler and Gunnar Tomasson 
On The Present Condition Of The USA

HI Folks,

I know only two authors on the Internet who most often 
point to the root of our present condition.  They are: 
Lurban Kohler on list FixGov and Gunnar Tomasson 
on list Gang8.  According to the two following excerpts, 
neither one is an economist.  This topic has been Taboo 
for economists since the 1890s, and no real economist 
dares to be heard speaking about it in public.


~~~~~~~~~~~~~~~~~~~~~ 1, ~~~~~~~~~~~~~~~~~~~~
On Mon, 3 Dec 2007 12:05:22 -0800 (PST), Lurban Kohler 
replied to #847, in part:

"Much as i understand your reluctance to get down to
the trivial level on which most people understand
money and its workings, It must be done, in order to
create the intention for change among the larger
population. It is time, I believe, for going beyond
analysis --time to focus on COMMUNICATION. Please!!!

--Urban"

~~~~~~~~~~~~~~~~~~~~ 2, ~~~~~~~~~~~~~~~~~~~~

On Wed, 19 Dec 2007 09:01:27 -0500, Gunnar Tomasson 
commented on the "Sub prime crisis and Greenspan's 
deceptions" and wrote, in part:

"To my mind, reference by an economist to outside 
opinion in support of his/her own version of an 
analytical concept is a clear signal that the party in 
question knows that he/she is incapable of 
formulating the concept in question in a clear and 
persuasive manner."
~~~~~~~~~~~~~~ End Two Excerpts ~~~~~~~~~~~~

The concept in question, to be formulated in a clear 
and persuasive manner, is, of course, the present 
condition of the USA.

An example of how difficult it will be to write on this 
topic in a clear and persuasive manner was provided 
by Ardeshir Mehta, from Ottawa, CANADA, when he 
posted an article by Christopher Jon Bjerknes on 
Dick Eastman's C. H. Douglas and other lists.  Author 
Bjerknes wrote, in part:

"Ron Paul: Seeing Through the Glittering Generalities


Christopher Jon Bjerknes
Allow me to preface this article with the statement 
that I hope Ron Paul wins the Republican primaries. 
Sometimes we need a Santa Claus to believe in if 
only to inspire us to hope. Sometimes we need a 
stooge to show us the way to empower ourselves."
~~~~~~ Snip A Few Paragraphs On Gold ~~~~~~~

"I believe that Paul is wrapping himself in the 
Constitution for one reason and one reason only. 
He, and those who pull his strings, want us to 
interpret the following part of the Constitution to 
mean that we should operate our economy on gold 
based currency:"
~~~~~~~~~~~ Snip To Last Paragraph ~~~~~~~~~~

Let Paul continue with his glittering generalities - 
that is politics in Jewish controlled America. We 
have to raise the level of debate among ourselves. 
No one will do it for us, and we have to defeat 
those who stand in our way.
~~~~~ End Guidance From Friends in Canada  ~~~~~

So what is this system, this present condition of the
USA, which keeps US taxpayers on their knees; 
praying, paying, and obeying?  It has four elements: 
!, The land, or Gaia, as Bill Ellis knows it.
2, Three Hundred Million US taxpayers and dependants.
3,, The capital plant and infrastructure built by taxpayers.
4, A medium of exchange (M1) which connects all three.
Of course, M1 is invested in our system by a central bank 
and member banks who can increase or decrease the 
amount of M1, provided a select few taxpayers are willing 
to go along with the increase or decrease.  The banks 
cannot act alone. 

A one page monetary history of this system is presented 
on attached Figure 2-3g.gif, "U.S. Money Supply M1." 
The heavy line on Figure 2-3g begins in colonial times 
with a sustained 1.2%.year increase in the value of the
US dollar.  This mode ended when the USA changed: from 
a nation of "productive-property" owning farmers and small 
business men, to, a nation of corporate employees whose 
property most often consists of a house burdened by 
a mortgage and local real-estate taxes.  

That is to say, the USA changed in 1895: from an 
agrarian society, to, an industrial society.  From 
that point on, our private sector developed in full 
compliance with Louis Blanc's "Governing Principle 
Of the State," while our public sector developed in 
full compliance with the thirty centuries old "Principle 
Of Subsidiarity" as taught in our public schools, 
church schools, and universities.  Both principles 
and the tsunami of public debate which keeps the 
public innocent of these principles are illustrated 
on Figure 4 & 8e.gif and attached Figure 12o.gif.

My interest in this topic was prompted by an article on 
"Inflation" in the October 1966 issue of FORTUNE Magazine, 
which featured a centerfold profile of the U.S. Consumer 
Price Index (CPI) from colonial times to 1966.  That profile 
is shown in Figure 10c on Dr. W. Curtiss Priest's web site 
below.  An overlapping profile of the CPI, 1870 to date, is 
shown on Figure 10e with a log scale, which shows a 
natural inflation rate (a steady rate of increase of the CPI), 
as a straight line.  There is a lot of discussion about how 
the government adjusts the CPI figures for its own 
convenience, but that does not alter the conclusion to be 
drawn from the two hundred year profile of the U.S. CPI. 
The conclusion I drew from this inquiry is that a "natural 
rate of inflation" has no natural limit, except eventual 
system failure; while a moderate rate of deflation could 
be sustained for ever, in any nation which fully and 
properly capitalized the expense of developing its people.

The big change in the U.S. condition happened in the 
1890s.  A change: from more than a century of prices 
declining at 1.2%/year, to, seventy-six years of prices 
increasing at 2.3%/year.  In 1971, President Nixon took 
the dollar off gold, and a period of instability followed  
with 8.5%/year inflation.  Paul Volcker ended instability 
with double digit interest rates.  Since Volcker, the 
only sign of intelligent interest in the condition of the 
USA was the eight year dwell of M1 at $1,200 Billion, 
coincident with my letter # 157 to K. Graham, D. P. 
Moynihan, & others in September 1994.  That letter 
ended a three decade expansion of M1 from about 
$250 Billion in 1957 to $1,200 Billion in 1994.

With a little effort, a serious student of our present 
condition could extend the chart of our US "natural 
inflation rates" back to the three books of Genesis, 
Numbers, and Deuteronomy where the 30% G&A 
rate of today's corporations is fully documented. 
There must have been a few nations in our Judeo-
Christian tradition which enjoyed a century or more 
when the value of their money increased by 1.2%/year, 
such as the USA enjoyed prior to 1895 when our US 
public and private sectors acted on the same principles.

The systemic defect in US public policy was in full 
flower: for seventy six years before Nixon separated the 
dollar from gold, for thirty four years before the crash 
of 1929, and for eighteen years before the Federal 
income tax and Federal Reserve System were installed. 

So when will we see a candidate for the office of US 
President, or any of my academic and intellectual 
superiors on the Internet, address the century old 
systemic defect in US public policy?

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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