[GJM] #31, The Lost Draft Of #10 On The Inner Structure Of The US Economy

[wesburt at juno.com]

Hi Folks,

This post will attempt to complete a thought 
that should have been completed in October 
of 2006.  The Draft Of #10 below was lost 
when I wrote #10 to John Gelles on 23 
October 2006.  Every so often my JUNO 
software fixes a defect in my mail folders 
by removing all files, after a certain date, 
from all folders, and placing the whole mess 
in a folder named: "Restored, 02//24/07 (2769 
unread)."  The lost draft of #10 was at the top 
of the 2769 restored files and looked like a 
much needed introduction to the attached 
Fig4&8, Macro and Micro model of money 
flow through any industrial economy.

I say "much needed" because the Media and 
Internet place all attention on the Financial Transactions which are more
than an order of magnitude larger than the GDP of the real 
economy which supports our standard of living 
but is totally neglected by the Media and the 
Internet.  The Macro model, Figure 4, shows 
how each national economy is connected to 
the global economy by four measures of money 
flow, two inward flows and two outward flows.  

Since money is cheap, and can be produced 
in any amount by a key stroke, many faults 
and defects may be covered up by issuing 
more money, instead of correcting the faults 
and defects.  In 2003, for example, the 
neglected real economy generated a $10,000 
Billion/year GDP by circulating only $385 
billion (M1c-A) to produce C. H. Douglas' A flow 
through the work force and by circulating only 
$288 Billion (M1c-B) to produce C. H. Douglas' 
B flow within the private (Corporate) sector; 
thereby leaving $527 Billion, of the $1,200 
Billion M1 money supply, for reserves in the 
accounts of businesses and households or for 
speculation in the financial sector.  Figure 4 
will be of interest only to those folks who 
worry about how money is divided between 
production in the real economy and 
speculation in the financial sector.
Figure 8, on the other hand will interest folks 
who want to correct the defects and faults 
which keep the US economy in its century 
old mode of:
1, sustained rates of inflation, 2.3%/year and up.
2, rates of unemployment, no less than 4.0%.  
3, the growing purchasing power gap which 
separates the middle from the upper class.  
Much is written about the growing strength 
of governments and corporations and their 
drives to monopolize wealth and power.  
Who would expect such human institutions 
to do anything else when the economy 
exhibits a net shortage of purchasing 
power which diminishes effective 
demand for local production and diminishes 
opportunities for profitable investments in 
the local economy?  The faults and defects 
in our economy are not caused by too much 
wealth and power, but by too little purchasing 
power in the parenting households.  Since 
most parenting is done in the early, low 
income, years of our working careers, the 
S. S. Payroll tax structure and the lack of a 
subsistence allowance for dependent 
children combine to create a depressed 
working class.  The only virtue I can see 
in this thirty centuries old wrong policy 
(TWP) is that it makes debtors out of 
parents and carpet bagging Shylocks out 
of folks with money to lend that cannot be 
profitably invested in the capital plant.

The lost draft below approaches this 
imbalance between rich and poor from 
nine different view points.  Since there is 
only one fault or defect in the US economy 
that controls the destiny of 300 million 
Americans, the nine points of view are 
simply redundant.  Any point of view would 
be sufficient if it starts the public debate.

Kind regards,

Wes Burt



~~~~~~~~~~ Begin Lost Draft Of #10 ~~~~~~~~~~
From: wesburt at juno.com>
Subject: #10 On The Inner Structure Of The US Economy

Good day to friends on nine mail lists,

~~~~~~~~~~~~~~~~~~
>From #1 On The Inner Structure,  17 Sep 2006 : 
By all means, print the attached visual-aid Fig17a 
to complement your reading of this message.  The 
shaded section of the private sector chart shows 
the "expense of management" as Adam Smith 
described it in his "First Maxim Of Taxation," 1776.  
The smaller shaded section of the public sector chart 
shows how little of the "expense of government" the 
US presently invests in developing its human assets.

 ~~~~~~~~~~~~~~~~~~
>From #2 On The Inner Structure, 18 Sep 2006
I have argued since 1994, in Fig7-9.gif  that three 
tithes are commanded in the Bible:

*The First, in B.C. 1913, (Genesis 14.20) was for local 
government and a school for teaching the knowledge 
of God.  Similar to the local property tax in the USA, 
and many other nations.

*The Second, in  B.C. 1471, (Numbers 18.21) was for 
National government by the Thirteenth Tribe (the 
Levites).  Similar to the 1913 income tax amendment 
in the USA.

*The Third Tithe, B.C. 1451, (Deut. 14.22--29) was to 
be consumed at the feasts and shared with the poor.
Similar to "community building," plus Zakat, Charity, 
and Welfare as defined by the Judeo-Christian-Muslim-
Protestant-Humanist principle of "Subsidiarity."

Since the "Folly of Rehoboam," in B.C. 975, (I Kings 12), 
as I read it in our oldest and most widely distributed 
history book, the second tithe has always been fully 
collected by armed force and the people are always generous with the
third tithe, if they are not depressed.   
So the First Tithe is; WHAT Rehoboam withheld 2981 
years ago, WHAT was restored by the US founding 
fathers for an agrarian society, and WHAT was lost 
again when the US became a wealthy industrial 
nation of propertyless employees in the 1890s.

~~~~~~~~~~~~~~~~~~
>From #3 On The Inner Structure, 21 Sep 2006:
So Pope John Paul II has marked the shift of 
Catholic Social Teaching from "Subsidiarity" to 
"The Optimum policy (TOP) which was customary; 
when Abraham paid the first tithe to Melchizedek, 
the King-Priest (GEN. 14.20 B.C. 1913), and lost 
by the folly of Rehoboam in B.C. 975.  My heart 
goes out to B16 who has one foot in our Judeo, 
Catholic, Muslim, Protestant, Humanist Principle 
of Subsidiarity (TWP); and his other foot in 
RERUM NOVARUM (TOP).  The two are moving 
apart.  Which way will he jump to preserve the 
future of the Mother Church?

~~~~~~~~~~~~~~~~~~
>From #4 On The Inner Structure, 24 Sep 2006 :
A few weeks ago Bill Ellis introduced me to John 
Watkins' Simple Society Forum where I became 
acquainted with a whole stable of John Perkins' 
Economic Hit Men whom I had not met before on 
my favorite lists.  They all parade as expert problem 
solvers, consultants, but refuse to acknowledge 
any solutions they did not invent.  There must be 
millions of them out there, and yet The Wrong Policy 
(TWP) has been the prevailing paradigm for thirty 
centuries.    So solutions proliferate but the single 
systemic defect of omission in our Judeo, Catholic, 
Muslim, Protestant tradition of the last thirty 
centuries bids fair to remain hidden from the public 
for another century.  Meanwhile the 3919 year 
practice of TOP by Kings, Bishops, Priests, CEOs, 
and WHIPs on their private affairs and corporations 
continues as ever to their very great advantage.

~~~~~~~~~~~~~~~~~~
>From #5 On The Inner Structure, 24 Sep 2006:
You (Bill Ellis) describe two systems of education.  
I understand the first ("authoritarian, hierarchal, 
competitive schools) to be schools run by one 
or another faction of our J. C. M. P. Western 
Tradition, all of which teach the principle of 
Subsidiarity.  I understand the second (lifelong 
freedom, the right resources and the opportunities 
to learn what they want, when they want, and 
how they want) to be the US public school system 
that I graduated from in Lynn, Massachusetts and 
that my four children attended in Lynnfield Center, 
MA; Hatboro, PA; Springfield, VA; College Park, MD; 
and McLean, VA.  All operated by local governments 
and funded by property tax revenue.  Not too long 
ago, in a nation of property owning farmers and 
small businessmen, the property tax amounted to 
a direct 10% tax on income from their property, 
A Tithe!


As SCREWTAPE said in 1941; "Our best work 
is done by WHAT we keep out of the public mind."  
He could also have said; "It has worked since 
I spoke to Rehoboam in 975 B.C., It worked as 
well when I spoke to George Bush and Tony 
Blair in the 21st century."

~~~~~~~~~~~~~~~~~~
>From #6 On The Inner Structure, 1 Oct 2006:
Neither Bill Ellis or John Gelles addressed 
either Fig17d or anything I said in note #5, so 
please find attached revision "e" of Fig17 
which corrects the number of years (975 + 
2006 = 2981) our members of humanity (MH) 
have lived under the J. C. M. P. principle of 
Subsidiarity, as taught in church schools 
since the "Folly of Rehoboam" and taught 
in the US public schools since 1887, to 
keep TOP out of Peter Russell's Global Brain 
and Teilhard De Chardin's Noosphere.

But finding the 30% G&A rate in the Old 
Testament is good fun.  It causes the 
Humanists, Atheists, Catholics, and 
Muslims to get a knot in their knickers, 
and the English speaking Israelites & 
Jews to suffer the NIH syndrome for not 
disclosing TOP at the 1898 annual meeting 
of the American Economic Association.  

~~~~~~~~~~~~~~~~~~
>From #7 On The Inner Structure, 3 Oct 2006:
Rodney Shakespeare writes, in part:
The only hope is the immediate development 
of something which gives credit, pride and 
achievement particularly to moderate Islam 
but also to all those throughout the world 
who believe that the existing system is 
moving towards disaster and/or who suffer 
from the defects of the existing system.

~~~~~~~~~~~~~~~~~~
>From #8 On The Inner Structure, 9 Oct 2006:
Divided Church is Dividing the Nation 
By Derek Darves:

"To be sure, I deeply affirm the value of 
the separation of church and state. 
Nonetheless, I see the state as the 
ongoing and inevitable hostage of the 
church so long as it remains locked in 
a cultural battle that only distracts 
from its true destiny as a vessel of 
compassion and decency." 

The attached monetary history Fig. 2-3e 
indicates that the US enjoyed a hundred 
year period of "compassion and decency" 
from the State as indicated by the steadily 
increasing value of our money from colonial 
times (except during wars) through the 1890s, 
when the work force shifted to a defensive 
mode of work and a century of deflation 
changed to 2.3% inflation through 1971.  
Since the 1890s, there has been NO, none, 
corrective legislation except the short lived 
1942 G. I. Bill.

~~~~~~~~~~~~~~~~~~
>From #9 On The Inner Structure, 11 Oct 2006:
After all concerned have had time to decide 
whether, or not, there has been any collusion 
among the three parties, perhaps it will be 
possible to bring the "The Inner Structure" of 
a Local, State, National, or World Economy 
into open public discussion.  We know that 
this topic was proscribed for Benedict De 
Spinoza in 1670 by the Church Of Rome 
and the Jewish establishment of his time.  
Who will step up to the podium today and 
tell the American taxpayers and voters that 
the topic continues proscribed today, 
because Church and State are still joined 
together in common cause?
~~~~~~~~~~ End Lost Draft Of #10 ~~~~~~~~~~

               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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