We've all heard it said, "if you want the truth, follow the money." This book tracks the money through the economy from the purchase of raw materials inputs to the consumption of the finished product.
The Nature Of Wealth views money in terms of the human and mechanical energy it represents. It does it so clearly that serious readers will depart these pages with a new perspective on our capitalist economy.
On a basic level, the book proposes national economic policies designed to restore internal economic balance to the Private Enterprise System; policies that operate withinthe laws of physics and at harmony with nature; policies that foster lasting prosperity for future generations.
Generally speaking, the authors call on the combined disciplines of physics and economics to mark their path, a path to a future where personal potential becomes the only definition of personal limitation, a future where intellect, incentive, and energy can be combined to maximize individual gain, a future where every able bodied individual can joyfully and fully contribute to society.
Join the authors as they design various national monetary and fiscal policies to create hypothetical economies which are displayed in dozens of tables and charts. These displays clearly define and isolate the source of all wealth, the origin of all profits, the true nature of money, and the fallacy of systemic debt expansion.
This book paves the way to a balanced, fully prosperous and inclusive economy with a unique economic model, a model more accurate than any prepared by a corporation, university, or government agency because it conforms to the laws of physics (nature), rather than questionable economic theory.
This model offers political leaders the keys to inclusive national prosperity, which heretofore have been obscured by fully informed self-interest and popular dogma.
Study this volume to discover the hopelessness of millions is the product of flawed public policy and how poverty, crime and illiteracy can be eliminated.
Study this volume and conclude that inclusive, sustained prosperity can be achieved through the implementation of the policies outlined in these pages; policies proven over generations to be mathematically defensible, policies which allow the American Private Enterprise System to add up!
After reading The Nature Of Wealth, you will conclude a nation's economy follows natural "laws" that, when understood, demystify economics and money.
Learning A New language
The Nature Of Wealth speaks a new economic language; the language of a balanced economy that is governed by the laws of physics, motion and energy.
The Nature Of Wealth reveals the physics within an economic system. It explains how economics and physics naturally combine to throttle and brake a private enterprise system. It explains how these two disciplines combine to yield mathematical formulas for internal economic balance and sustained prosperity. It offers proof so strong as to critique itself. It will, in totality, conduct a strip search of past economic policies and lay bare their fallacies while paving the way to sustained peace and prosperity.
It is difficult for government officials to admit the need for a balanced economy. Acceptance may be impossible for inane career economists who spend their lives parroting the exclusionary jargon of the trade for the benefit of the powerful. Both groups ignore 100 years of records which prove economics obeys without exception, accepted laws of physics, thermodynamics and entropy. We refer to both groups as blind guides.
For most people, the study of economics has about the same appeal as filing annual income tax forms with no hope of a refund. It's tedious, boring and confusing, however the mystery disappears with a clear understanding of money. Most people don't understand the true nature of money because they have been brainwashed by a ruthless financial oligarchy.
Defining Money
Here is our definition. Money represents the intellectual, biological and mechanical energy spent in the process of creating, exchanging, and consuming goods and services in an organized economy. However, money should not be confused with bank issued credit which is created or destroyed at a banker's desk. Real money can only be increased at the rate that biological, mechanical and intellectual energy is added to the economy in the form of goods or services that pass through the various stages of production.
If the economic system is balanced across the six major segments of national income, all domestically produced products and services can be sold at retail and consumed without perpetuating debt.
If the correct amount of money is in circulation, the capitalist system works wonders by producing a monetary profit upon the purchase or consumption of the annual aggregate of goods and services, such that some of the "money" may be stored, (five percent of national income), while the money remaining after payment of labor and taxes becomes available to be used to purchase inputs for for the next annual cycle of production.
"Money" must correctly measure the intellectual, biological and mechanical energy or "work" that is added to products or services as they pass through the various stages of the economy from their first introduction into the economy as biological, mechanical, and/or intellectual raw material energy to the eventual consumption of goods and services. The "money" in circulation must approximate the energy spent to produce a product or service. When too much credit is issued against this raw material framework, the money is debased. When too little money and credit is available, the economy gets smaller. In turn, millions of workers are unemployed as businesses fail.
Thus, we can conclude that money must flow through the economy in sufficient amounts and without interruptions so an organized society can grow and prosper. The alternative of bust to boom and back to bust leaves every citizen submerged in a sea of non-repayable debt. This is fully explained and proven in the forthcomong pages. This book carries the key to a balanced, prosperous and inclusive economy. If you understand this book, you will understand money, credit, and the nature of wealth.
We have established, that in a country filled with raw materials and willing labor, most economic interruptions, such as recessions, result from interruptions in the flow of money; (the boom and bust cycles).
These interruptions occur when the "natural" value of products and services are so distorted as to give a false reflection of their value in terms of money. This can happen at any time and at any stage of the production cycle if the economy is out of balance but, it is most harmful at the raw materials stage where price levels begin.
Eventually, the problem of wide spread monetary imbalances across the economy will alter the natural "ratios" (or percentages of the total money) that must be maintained within each of the six basic segments of our nations economy. These six segments accumulate as National Income. and they carry the potential of adding great wealth or great debt to the economy, depending upon their capacity to regenerate reciprocal markets. The accurate ratio of each segment to National Income will be examined fully in later chapters.
Blind Guides
The need to maintain internal economic balance between the basic segments of our nations economy is not taught in our school system. The "CLEP" test, which is the College Level Examination Program. reflects this fundamental error. We offer one of their sample questions as evidence. "Which of the following is a possible cause of stagflation, which is simultaneous high unemployment and high inflation"?
(1) Increase in labor productivity
(2) Increase in raw materials prices
(3) The rapid growth and development of the computer industry
(4) A low growth rate of the money supply
According to the blind guides who wrote the College level exam, the correct answer is # (2) "increase in raw material prices". However, the correct answer should be "none of the above" but it was not listed as a possible answer. You may review their sample test by clicking on the blue link.
The need for "balance" is ignored by colleges and universities while they blindly feed failed economic theories and belief systems to each new generation with cafeteria line efficiency. These students become the teachers and career economists who excrete this indigestible doctrine on scores of national policies. Together, their efforts exacerbate internal economic imbalances and preclude sustainable economic expansion. It falls just short of treason.
The ignorance reflected in the CLEP exam could not survive without the malleable minds of blind guides who have allowed themselves to be miseducated because they lack the native common sense and creative intellect to understand, much less teach economics. Each new generation teaches by parroting the half truths and flawed concepts of previous blind guides. The CLEP exam is a clear example of economic ignorance and possibly rank stupidity. Sadly, the professors who prepared the exam have failed their own course.
The Nature Of Wealth rejects the CLEP exam, which concludes that cheaper raw materials are always better, and by extension, free is best. The CLEP exam even fails the most simple test of connecting the growth rate of the money supply to stagflation. A stagnated economy can always be temporarily stimulated by increasing the money supply. The Federal Reserve increases the money supply by lowering interest rates which causes more borrowing. Likewise, it reduces the money supply by increasing interest rates. Although reducing interest rates will temporarily grow the economy by causing more borrowing, it only makes matters worse when all the notes come due within an imbalanced economy.
In this age of information, "The Nature Of Wealth" is essential reading for blind guides who seek cleansing from the intellectual stain of their mis-education and for those who stand willing to accept a clear, math based definition of money and macro economics.
It is absurd to allow blind guides to stand guard over structural poverty and structural affluence by teaching economic policies that perpetuate poverty in the midst of plenty. These blind guides promote policies that cause the potential of the masses to be defined and limited by the Draconian monetary policies of a powerful minority. They have yielded to other policies that guarantee slave wages and poverty to millions. They have ignored the cause or effect of policies that produce a mirage of opportunity for millions; policies that inhibit personal liberty because they eliminate the possibility of financial independence for all but a select few. Blind guides should open their eyes to restore their credibility as guides, because, in this age of information, citizens of all nations are learning the truth from other sources.
These criticisms are directed toward blind guides at several levels; including classroom school teachers who ignore the subject, while claiming to teach the basics of the American system; to college professors who lamely teach the history of failed economic theory while avoiding concepts or perspectives that offend wealthy alumni; to think tanks that publish biased reports in favor of the money that funds them. Most importantly these criticisms are directed at governmental systems that ignore the immorality of class biased laws that exacerbate inequity while giving license to individual and corporate greed. Last, but not least, these criticisms are directed at spiritual leaders who either ignore or rationalize the suffering caused by economic injustice.
The Victims
The economy has a natural method of price recovery after prices within one or more segments of the economy are maintained at artificially low levels over a long period of time. However, this natural system of reciprocal markets is never allowed to function properly. American history is filled with examples of economic distortions perpetuated by greedy multi-national comglomerates and lobby-driven government policy makers.
The first victims are almost always wage earners and producers of raw materials. When prices for oil and farm crops decrease, most economists are blissful because these artificially low prices temporarily hide real economic imbalances. Over time, domestic public policy has evolved to subsidize farming in a futile effort to replace a fair price at the market.
American international policies embrace foreign religious dictators who empower and enrich themselves with oil money while teaching terrorism against America. Regardless, when any raw material recovers its natural price level, economists scream INFLATION! Again, it falls just short of treason.
The other obvious victims are wage earners who suffer cuts and layoffs during recessions. Wall Street is always quick to reward Corporations for holding down wages to increase the bottom line while ignoring the way wage cuts impact the purchasing power of labor and increase surplus product inventories.
Regardless of circumstances, any increase in raw material and labor cost is incorrectly viewed by economists as a problem to be solved rather than the systems' attempt to regain internal balance.
The Nature Of Wealth shines a spotlight on the only road to inclusive prosperity. It takes the genie out of the bottle by offering a technical manual on balanced economic growth without excessive debt. It places alternative monetary policies into the public consciousness, policies that can drive an incentive based capitalist system at full speed. These policies, once implemented, can become as natural and easy to maintain as adherence to the laws of physics that govern our daily lives. Adoption requires little more than adherence to nature's economic laws. Adherence to these laws is the key to sustained prosperity and require policies so pure and so natural that they can become the logical, dominant force in economics wherever tested.
Prosperity is Logical
In terms of natural resources, the United States is by far the richest country in the world. It contains everything needed to furnish every citizen with a good living. Yet, the USA has cycles of recessions and depressions. It is obvious these recessions and depressions are not caused by nature, but by the limitations Americans knowingly or inadvertently place upon themselves. Today, our private enterprise system is unnecessarily flawed because it produces unnecessary debt, unemployment, and poverty. Again, the reason is a lack of internal economic balance.
We can all agree that a nation filled with natural resources should afford every able-bodied person with a rewarding task. We can further agree that a rich nation should offer every child a loving home and a modern and motivated school system. Certainly farmers, ranchers, miners, timber companies, and commercial fisheries should make good profits. Likewise, mills, factories, and retailers should be operating at capacity. Recycling and renewable energy should be the rule, not the exception.
If God were to ask, "What is the problem with my children? Why do you limit your prosperity? Why the poverty, the drugs, the violence? Why the self-destructive behavior? What is desired that I have not provided?" Most of us would be obliged to answer, "Nothing."
Today, individual potential is limited by the flaws of outdated economic structures and educational systems, not by a lack of natural resources, (Acts of God), or by the lack of desire to be educated, (the age old method for blaming the powerless). Instead, the limitations, lost potentials and sufferings of most peoples are caused by an ignorance of nature's economic laws and the lack of will to apply these laws to political and economic systems around the world.
The Federal Reserve System
The control and direction of American monetary policy is at the root of Americas' economic and social problems, mainly because monetary policy is, by design, self serving. Thus, it fails to recognize the need to change and evolve. Monetary policy is governed by the Federal Reserve System, a system of monetary control that stands apart from Government. The "Fed" is quick to criticize the Governments' fiscal policy but slow to take responsibility for it's own mistakes in monetary policy.
The Fed instinctively resists change while attempting to change the Governments' fiscal and social policy. (Click on Fed Gazette button for example). It ignores the need to improve human rights and it refuses concessions that might reduce it's grip on monetary policy. It boldly resists the very Government that gave it life. It has been largely independent of oversight since it was created by Government in 1913. It is a unique edifice to a past era when unlimited power in the hands of a privileged minority was acceptable.
At the risk of disappointing conspiracy theorists, this should be expected from any large center of power. We see Fed actions as a natural struggle to maintain power, as natural as the ebb and flow of tides. Struggles over the control of money lay open the very core of human nature; nothing more; nothing less.
The Nature Of Wealth will demonstrate how a majority of the Feds duties can be modernized by replacing the collective opinion of its Board Of Governors with a few dozen responsibly programmed computers and why this change is necessary if widespread prosperity is to be achieved.
In the long run, the Feds refusal to change and evolve will insure its obsolescence because without change, the government that gave it life will eventually be forced to take authority over its outdated doctrine. Until then, the private enterprise system will remain subject to its whims.
History is instructive. The original US Constitution is the prime example of a flawed concept that only survived by evolving. The US Constitution, much like the private enterprise system it fostered, was never intended to be used like a finished consumer product. If that were the case, slavery would be legal and women couldn't vote. Instead, the founders designed the framework for a representative democracy that could gradually correct limitations and imperfections. The same view must be taken of the economy.
"The Nature Of Wealth" offers new and superior alternatives to an economy managed by the Federal Reserve System, and alternatives to other systemic flaws that for a century have been the accepted monetary policy of the United States.
A new truth will unfold in the pages that follow. Acceptance and adherance to this truth will enable the Private Enterprise System to literally "add up". When our economy adds up, it will consistently embrace innovation, applaud entrepreneurship and reward all Americans who participate in this "great experiment."
An economy guided by an informed people's government will naturally employ policies that embrace the true nature of wealth and evolve to a maximum level of inclusion without sacrificing our individual freedoms or our rights and opportunities as Americans to succeed or fail.
