Donald John, on The Full Employment, Green, Democratic Solution

Dear Donald John,

Your message below is much appreciated.  It clearly shows 
that common sense and some serious thought can dispel 
most of the mystery that obstructs public correction of the 
social disorders we suffer from.  You are also quite right in 
pointing out that the US is potentially the best target for the 
efforts of serious global environmental reformers.  Your 
metaphor of the septic tank calls to mind Lord Acton's 
observation that power corrupts and absolute power 
corrupts absolutely.  Even though we elect only our 
best people to positions of power, we still need to 
shield them against the temptations of power, and protect 
ourselves against their abuse of their power.

Bertrand Russell wrote 206 pages on the subject of 
POWER in 1938, and observed that there was "no reason 
why all organizations should be mortal."  The US, with its 
constitutional limits on power, He said, should persist 
indefinitely,  But Russell was thinking about the US of the 
19th century during which the Dollar steadily increased in 
value, except during times of war, as shown on Fig10b.gif. 
at the web site below.  Russell had already discussed the 
optimum policy on page 138 of his 1915 book, "Principles 
Of Social Reconstruction," which followed Pope Leo XIII's 
1891 "Rerum Novarum," which followed Thomas Paine's 
1792 "Rights Of Man, Part II."

The corruption which has engulfed the US, from the 1890s 
to date, is clearly illustrated by the 2.3%/year NRI (natural 
rate of inflation) shown on Fig10d.gif, thanks to the good 
offices of Bob Bronson.  His use of a log scale for the CPI  
takes away the delusion of an exponential rise of the CPI 
to a terminal condition, which is characteristic of a linear 
scale.  This presentation makes clearly visible the three 
massive injections of new money for WW I, for WW II, and 
for undefined purposes beginning in 1965.  

Notice that the expansion of M1 directly affected the CPI 
between 1965 and 1981, and only slightly there after, 
while the expansion of M1 continued at 10%/year until 
1994 when it reached $1,200 Billion and stayed at that 
level for eight years, as shown on Fig2-3b.gif.  Who knows 
where the money went after 1981?

The systemic defect of omission in US public policy which 
has been clearly visible since the 1890s, is the same 
defect which afflicted the nations of Europe in the late 
1700s, and was not corrected in Europe until their 
reconstruction after WW II.  One possible purpose of the 
1965-94 run-up of the US money supply M1 may have 
been  to swamp the correction Europe and Japan had 
made after WW II, and restore Europe and Asia to the 
financial mode prescribed by the Washington Consensus. 
That is, with 100% capitalization of development in the 
private sector and 50% capitalization of development in 
the public sector.

That is not the way to establish John Gelles' global SAFE (sustainable
and fair economy).  We need to bring back 
into the public debate the basic moral and technical 
requirements that must be satisfied to moderate the US 
economy.  And the most important requirement is an 
informed public opinion, which can read drawings and 
thereby save a million words.

Kind regards to all,

Wes Burt


--------- Forwarded message ----------
From: "Donald John" <Donald_John@hotmail.com>
To: ERANet@yahoogroups.com
Date: Mon, 22 Mar 2004 08:54:34 +1100
Subject: [ERANet] The Full Employment, Green, Democratic Solution

To Wes & All !

I sometimes wonder if the economic situation could be 
better understood if we could talk in basics and then fine 
tune with "economists' " terms.

It was once explained to me that "Money" was just a meal 
tick which we were free to spend as we wished.

In other words, it was an instruction from the King to his 
chief cook, to supply us with a meal and we could have a 
choice of food from within the range available.

The meal ticket could also take the shape of a "car ticket"  
and we could choose from the range of cars as with the meal.

In both cases the ticket was an authorisation to purchase 
within a range of products. AN INSTRUCTION .

This implied that you were not free to do what you liked 
with the ticket. That was decided by the King.

If the King decided to issue a multi choice ticket you would 
then have more freedom, but the king was the Boss.

In a democracy, the Governing body would decide what 
you were allowed to buy with your multi choice ticket.....They 
may decide to ban the purchase of drugs of dependance etc.

The Commonwealth Bank of Australia, created credit so that 
Australian could go to the First World War and in so doing 
were the only allied country to end the war, without having 
a debt to the major world banking elite. The elite have since 
seen to it that the advantage was extinguished.(IE:- No CBA 
in Govt hands)

The debt was extinguished by simply tearing up the register.

This was enabled due to Australia having sufficient" raw 
material", "manpower" and "the political will" to do so. 
JUST THREE THINGS ARE REQUIRED FOR THIS FORMULA.

The" political will" is the fly in the ointment and ignorant 
politicians, bankers and public servants have been 
confused by the "elite world bankers" who have conditioned 
the population to think that the banks have vaults full of 
money which is available for Governments to borrow.

GOVERMENTS DO NOT NEED TO BORROW..."THEY  JUST  CREATE".

Of course Governments need to be mindfull of how they go 
about the creation of credit as the value of their currency 
will be affected by their reputation on their world scene, but 
they can always barter and still do, so what we are really 
looking at now is, a world banking system which has the 
power of the King to preserve the rescources of the World, 
as opposed to that of the individual kingdom.

The problem for thinking persons is, "how the hell to 
educate the global population to understand that we 
cannot just consume as we wish without giving thought 
to our neighbours."

The Yanks have been consuming in an obscene manner 
for far too long and have been using more than their fair share.

What we are now seeing is "a shootout at OK Corral".

If the Yanks manage to capture Bin Laden, they won't be 
able to discipline him without the whole world being 
destroyed by terrorists, who will have nothing left to loose. 
THIS IS JUST A LAST DITCH STAND, as I see it. This will 
probably end up like the Irish situation, if the world powers 
are smart.

The concept of a global bank has good intentions but is 
having trouble with the people who have risen to the top 
of the pile, in so much that they don't want to go back down 
to ground level, as with the "level playing field" and they 
continue to rip the system off.

The elite see themselves as being the "cream" which has 
risen to the top of the milk, whereas others see them a 
representing the "septic tank" principle where the "crud" 
rises to the top and the clear water continues to flow out 
the outlet.

Humans are all elitists in their own way......THAT MAY BE 
THE CHALLENGE WHICH FACES US. If we are to have 
any future at all.

What do you think folks, I look forward to you comments.

Regards.....Don.




>From: wesburt@juno.com
>Reply-To: ERANet@yahoogroups.com
>Subject: [ERANet] John Gelles on The Full Employment, Green, Democratic 
>Solution
>Date: Sat, 20 Mar 2004 17:35:46 -0500
>
>
>Hello Again Folks,
>
>Please find below John Gelles' second stab at defining
>"The Optimum Policy" (TOP) for human development.  
~~~~~~ Snip Balance of Don's message ~~~~~~

            The Optimum Policy (TOP) or The Whole Divine Law 
                 for either Human or Capital Productive Assets is 
        illustrated at <http://www.epie.org/cyber-soc/default.htm>
        and discussed on list <TOP@topica.com>, and elsewhere.