Alan Kerns on Getting To The Point

Dear Alan,

Thanks for the thoughtful words of encouragement 
and the back handed compliments.  I feel your pain!  
My particular on the job training enabled me to see 
this subject complete when FORTUNE magazine 
displayed a 166 year profile of the US Consumer Price 
Index on the center fold of its October 1966 issue.  The 
transition of the US economy from a cooperative mode 
to a highly competitive mode of operation obviously 
occurred in the 1890s and remains unchanged to date.  
The 20th century saw three massive injections of new 
money, which did little but raise the price of goods 
and services, and enrich the WHIPs.  This continuity of 
the status quo, and the effect of the money injections, 
is more clearly illustrated on Fig10d, with its log scale 
for the CPI, than on Fig10b with its linear scale for 
the CPI.  

I have inserted comments in the format (WSB 
comment WSB) where appropriate in your note and 
will propose another point of entrance to my favorite 
subject (The Optimum Policy, TOP) below your note.

~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~
From: Alan Kerns <akerns@iprimus.com.au>
To: ERANet@yahoogroups.com
Date: Wed, 14 Jan 2004 06:28:11 +1000
Subject: Re: [ERANet] Fw: Getting to the point. Plain talk.  

wesburt@juno.com wrote:
~~~~~~~~~~~~ CUT ~~~~~~~~~~~~~~~~~
"I have it from the horse's mouth; from authors Milton 
Friedman, Stephen Zarlenga , and Pat Gunning that 
my charts and figures are "not helpful" (to intellectually 
gifted WHIPs) because it is not intuitively evident to 
them what I am trying to model."

(WSB  The WHIPs have understood TOP perfectly since 
King Rehoboam, Son Of Solomon, replaced TOP with 
"The Divine Right Of Kings."  Otherwise they could not 
have applied it so consistently to their private sector 
affairs, down through the centuries.  "To those who 
have plenty, much is given.  To those with little, even 
that little will be taken away."  WSB)
~~~~~~~~~~ CUT ~~~~~~~~~~~~~~~

Maybe it's got something to do with the byzantine 
complexity and deviousness of the system we live 
under that your model is as clear as mud to common
garden minds such as mine.

(WSB  Those who keep it clear as mud are well paid.  WSB)

An economic system worth its salt would be intuitively 
sensible to the minds of common folk.  

(WSB  It will become so as soon as two or three of you 
WHIPs stop blowing smoke in the public's face; and 
authors John Bunzl, Stephen Zarlenga, Robley E. 
George, and W. Curtiss Priest write the missing last 
chapters of their several books, which are indeed 
welcome additions to my library.  WSB)

Rather than trying to model the crazy tangled mess of 
what the existing system IS, maybe it would be clearer 
to model the intuitively sensible things that the existing 
system ISN'T - something Zarlenga does quite clearly 
and persuasively in his book, "The Lost Science of 
Money".

(WSB  They are one and the same, but driven apart 
by a 50% implementation of TOP, enforced by the 
"principle of subsidiarity," in the public sector of the 
English speaking nations since the advent of
industrialization.  WSB)

I don't doubt that the highly compressed information in 
the diagram is transparently clear to you, Wes, but if 
you'll allow me to speak on behalf of the hoi polloi, 
it's as impenetrable as a stone wall when I look at it.

(WSB  Thanks Alan, for joining the nine lurkers on 
my list <TOP@topica.com> and the lurkers on the 
list of lists above who are waiting for Pete Peterson 
to dispatch an assassin from the basement of Pratt 
House, or for Lady Thatcher to dispatch one from 
Chatham House.  It won't happen!  

Since my #157 letter of 1994 to Pete Peterson. 
Katharine Graham, and Daniel Patrick Moynihan, 
the "powers that be" have raised the US GDP/capita 
from 64% of Swiss to 83% of Swiss GDP/capita.  The 
next US President in 2005 will raise it the rest of the 
way, to restore the US to its original high moral 
ground, and the US public will never need to know 

he reason for their good fortune.  Just as the 
Germans and Japanese were never told the reason 
for their post World War II economic miracles.  As 
long as the public is uninformed, the WHIPs can 
look forward to restoring "the divine right of Kings," 
slowly but surely, later on.  WSB)

Alan Kerns
~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~~

You are in respectable company, Alan, when you 
"speak on behalf of the hoi polloi."  Messrs. L. Urban 
Kohler, William B. Ryan, John Gelles, Dough 
Everingham, and many others have hit that same 
stone wall.  Absent the unique on the job training 
that makes it all intuitively obvious, the two best 
places for an honest man to start is: 

1, The subject index heading on Tithes in the Scofield 
Reference Bible, 1909.  This is what our four Western 
religions taught their WHIPs, but not their congregations.

2, The top view of Fig4.6, showing the synchronous 
flows of real GDP and the counter flow of M1.  

Notice that the flow of M1 and real GDP is common 
to all four elements in the closed loop.  How can 
anyone justify 100% capitalism for the owners in 
the private sector at 90 degrees, and only 50% 
capitalism for employees at 270 degrees on the 
macro model of a national economy.  Both sectors 
confront a free market which knows nothing of 
their policies, and cares less.  Both sectors consist 
of reproduceable productive assets, with a finite 
life-cycle, that are a free gifts of nature.  Both types 
of assets require a sustained investment over many 
years to bring the asset into production.  Because 
both sectors are in series (tandem), impairing the 
performance of either sector will reduce the 
performance of the whole system.  

Only the "unthinking" could defend the status quo 
of the English speaking peoples.

Kind regards,

Wes Burt