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February 22, 2012

New Economics 103 reality behind the illusion businesses do not create jobs

Original Source here
Let’s talk about the reality behind the illusion.

In some schools of prevailing fiction, they teach that business creates jobs but this is not exactly true. Jobs are created by consumer demand and inventors. Both private sector (individual) and public sector (collective) a business has no existence without the consumer needs and wants. It is the consumer that creates the jobs, and it is producers that fill them. Generally a producer specializes in a single area of production or service while as a consumer he consumes a multitude of products and services. This is the reason we need an intangible value exchange system backed by intangibles.

A business is simply a framework for a joint venture between a group of economic system participants to produce a product or service that is needed or in demand because of want by other economic system participants.

The economic system participants create all new money however the amount created is not based on actual production. New money is created by the creation of debt based on a commitment of said economic participant to produce future value. The amount of money that can be created is somewhat unlimited over time and is in direct proportion to the commitment to produce future value. In other words the consumers are not subject to any lack of money as long as they have a skill set or activity that opens a revenue pipe.

The amount of future value that needs to be created is collectively determined by the economic constituency first based on essential needs, public works, and then wants.

It is essential to all economic participants that every other ESP have a revenue pipe resulting from an available contribution channel allowing all economic participants the opportunity to participate in the creation of value.

One of the questions is how do we measure the value of a contribution. While we can determine the value of the finished good or delivery of service it is not always easy to determine the percentage of value each ESP involved in the production or delivery provided. A proper evaluation of the contribution involves a measure of skills, experience, knowledge, certification, creative intelligence, artful capability and genius.

To create jobs an economic constituency simply needs to collectively decide to create some value whether it is a dam, bridges, communication system, roads etc. Jobs are also created by collective want. If enough economic participants want a particular service or product it then becomes feasible for a smaller group to form a joint venture to provide the service or produce the product. If enough miscellaneous wants exist it creates a non-essential economy and with enough variety all ESPs can participate in not only the essential economy but also the non-essential economy.

There is one entity that can create jobs in an indirect way and that is the inventor. Often the general populations of ESPs are unable to conceive of products and services from which they might benefit, yet those gifted with a creative genius can invent new things seen to have value by other ESPs. In which case the inventor is then assisted by a group of ESPs in a collective effort to produce the product or service invented.

Usually the business owner is responsible for bringing together ESPs to produce a product or service. The business owner or manager has the most responsibility and in general receives a larger percentage of the revenue pipe feed. Some businesses can be owned by a multitude of people shareholders which elect a board of directors to over see a hired management. Creating value greater than the cost to produce said value is generating a profit.

As for government regulation in the new economics collective consumer control replaces most government regulation.

New Economics 102

Original Source Here
The purpose and intent of a monetary system is to facilitate the exchange of value. In the economic system there are producers and consumers. Each adult economic system participant (ESP) is generally both a producer and a consumer. Monetary units representing tangible value or an intangible value can be used. In the current system fiat currency or monetary units having intangible value are used because a tangible currency based on a single precious metal would not be practical.

Generally a producer provides a single product or service to other ESPs while consuming a multitude of different products and services. The financial system serves to create a flexible symbolic representation of value so that the exchange of value can be liquid and easily proportioned since not all products and services are proportionate to each other. This also allows for transactions to occur between ESPs with only a casual quickly formed temporary relationship.

In our economic system there are producers and consumers and a third party that maintains the symbol used to represent value, the privately owned central banks. This third party controls the creation and distribution of symbolic units to the producers in the system. The creation of the symbolic units is the result of an accounting entry, money is created from nothing, out of thin air, and only a small portion printed as green backs. Generally the transaction that creates new money is a producer or group of producers going into debt. Which is to say based on a promise to create future value the producer is given units in the present representing some of the future value that they will create. There is a charge or fee for this monetary unit creation known as interest which must also be paid back in addition to the principle amount of the loan. If no new debt is created no new monetary units are created and preexisting monetary units would increase in value.

A natural economic system is simple in principle and requires only that it maintain and allocate units representing value in a balanced manner. With new monetary units created in proportion to the amount of goods and services produced by the producers in the economic body over time. The purpose of the financial system is to facilitate the balanced exchange of value between producers and consumers and in doing so creates a harmonious and prosperous economy. If it does not maintain a balanced exchange of value then it results in strife and conflict between the economic system participants.

Cash or currency can be thought of as the blood of the economic body and it must flow if the body is to function. Value is determined by the consumers in that they would be willing to labor or produce in exchange for receiving goods or services produced by another producer or group of producers.

So the economic system should be designed to properly manage the exchange of value between participants.

As we can see the current system has not done this and the primary reason is that the system infrastructure required to support an equitable system is not in place and would require foundational changes to information technology systems. For the first time in history we have the technology and means to implement an equitable balanced value exchange system.

Prior to now the systems have been managed based mostly on guess work and periodic artificial adjustments to correct errors that manifest as recessions and depressions. The systems also allow for corruption where some can extract wealth without creating genuine value for other economic system participants. These fluctuations would not exist in a balanced system designed based on economic science rather than economic quackery.

In a proper system the idea is that the producer requests the creation of new monetary units (loan) based on their future production of value for other economic system participants. One reason to do this is to allow the producer to obtain the tools or skills and or build the infrastructure necessary to produce value for other economic system participants. It is a benefit to ESP consumers to "loan" to a ESP producer so that the producer can be a productive participant in the economic system.

The role of the bank has been to determine the ability of the producer, or group of producers to generate the future value, and then to make sure that the producer does indeed generate that value. The bank does the risk analysis and creates and tracks the necessary transactions. The only problem is the banks do not have a scientific method to determine in actuality what value the producer can produce in the future because there are so many factors that are involved in the determination. They can only determine prior ability and performance in producing value and their current revenue stream. Value is determined first by needs and demand and these fluctuate over time, and are very dynamic. It may also be determined by want, but want generally covers things not essential. There are some needs that expire and their are new ones created. For example polluted water creates a need to purify water.

There are natural needs and fabricated needs. Those that do not expire and are not fabricated needs are known as the essential economy. These would be food, shelter, energy, physical injury repair, education, and transportation. On top of this we have the artificial economy which is based on wants or fabricated needs. For example the creation of a complex financial system creates the needs for accountants and financial analysts.

It is important to understand that money is created from nothing based on a promise to create future value. The financial system is supposed to support the accounting and analysis needed to manage and maintain a balanced exchange among the participants.

The current system is to slow and incomplete to keep up with the expansive market dynamics. It is not an economic science based system but rather one of quackery and fudge work with a modicum of reality taken into account leading to great disparity and imbalance.

I think it is time to make economics a science and base it on math and reality and provide the needed information infrastructure and systems to support it.

New Economics 101

Original Source here
Value consumed must equal value produced by all participating entities. The value exchange accounting system must properly measure and maintain this balance. The service providers hosting the system must be efficient in doing it at a very low cost, in a competitive environment, and there cannot be a monopoly by a few on the creation of monetary units. Where feasible each economic system participant would support part of the physical and technical infrastructure of the whole. Value is determined by the sum of the individual choices. Artificial value is vetted and removed from the system. Forced patronage of products or services especially those with artificial value or based on created need is eliminated. Inflated pricing / cost resulting from monopoly are also eliminated.

Credit Pipes must equal Revenue Pipes and must balance at 30 days, 90 days, 120 days, 1 year

Services needed to be provided to support financial systems.

-Tracking transactions and ownership.
-Providing the computers, logic, interface and network to run the system.
-Identity / Entity registration tracking and certification
-Risk analysis and evaluation (this is capturing historical data (prior performance), analyzing future possibility and probability to determine future need for specific services and products and the entity’s success in creating value and prior performance in meeting obligations to produce value.)
-Investors (directing energy in a free market to entities that after discerning investigation are deemed to be able to create value for other economic system participants, this is a collective function so that investment flows cannot be skewed by a few individuals.
-Enforcement (recovering collateral or providing penalty for not honoring the commitment to create future value.
All these financial services and products can be provided much more efficiently and effectively than they currently are.

The things that can skew a natural economic system.

Leakage those that can take ownership ship of currency units (wealth) without making a real value contribution to other economic system participants.
Forced purchase of unwanted and unneeded products and services this includes unnatural needs created by industry and legislation. The artificial economy in contrast to the essential economy. Appearance products that appear to have more value than they do in reality.
Money going to the public sector where due to a lack of accountability and controls all currency is devalued because the products and services created are not equal to the value created in the private sector causing a devaluation of currency, this is a big source of economic system leakage.
Mismanagement or decisions made on guesswork.
Encumbrances placed upon economic system participants increasing the cost of producing value.

Now there are a couple questions that need to be answered and some fictions to be eliminated by asking them.

There are 6.6 billion people on the planet not all of them have been given channels to make a contribution to the economic system. In theory the required weekly effort of each participant to sustain the essential economy, food, shelter, energy, transportation, infrastructure, education and if we want we can include entertainment and travel, is 16 hours thanks to efficiency created by technology. This requirement can be skewed though because of monopoly ownership of both material resources and property.

So why do so many have to work multiple jobs and more than 40 hours and so many have none? The system is flawed and mismanaged.

Another way to look at this is how valid is the assumption that that everyone should work a 40 hour work week? Did anyone calculate the daily needed value creation to support the essential economy? No it hasn’t been done. This is a flawed and erroneous assumption. If we were to force an arbitrary 40 hour work week then we would need to create the work to be done to sustain it perhaps through new infrastructure enhancements. Has anybody done this? No.

It is not about a lack or scarcity of money, this is limited only by ability to create value, and there is as much money as the people on the planet need to have. What create the limited supply is mismanagement, theft, fiction, and control of the symbol by a few.

The Holistic Economic System and Principles

Original Source here
The economic system is a dynamic energy / value exchange accounting system and it is not all about profit, it is all about balanced ENERGY and VALUE EXCHANGE first.

HOLISTIC PROFIT is all about creating benefit with a greater value than the sum of the costs to create the benefit. This usually requires creative intelligence (the value added) which results in some greater efficiency, new functionality or the fulfillment of a need.

THE #1 HOLISTIC ECONOMIC principle

An entity must contribute value to the system equal to the value it takes out. If an entity is allowed to take value from the system without creating any, it causes a system imbalance.

THE #2 HOLISTIC ECONOMIC principle

All participants in the economic system must have a channel through which they can contribute to the economic system which means a job or some responsibility.

THE #4 HOLISTIC ECONOMIC principle

Due to technological advances economic participants may need to work very few hours to be entitled to the basic needs of food shelter and transportation

THE #5 HOLISTIC ECONOMIC principle

All forms of leakage, products and services with bogus and artificial value to the body as a whole need to identified and eliminated. This includes unnecessary (waste of energy) burdens on business.

THE #6 HOLISTIC ECONOMIC principle

Channels that allow diversion of energy (money) to non-contributing entities need to be shut down.

THE #7 HOLISTIC ECONOMIC principle

All forms of legislation for profit, revenue derived through manipulation of the system and various financial instruments, or intervention to block the natural flow, development and evolution of products and services needs to be eliminated.

The HOLISTIC CONCEPT of BEING RICH is all about the value of the benefit that one provides (B) and the number of people it is provided to (P).

So B x P = W

W is Wealth created as a result of service to humanity providing genuine value with efficiency.

Such that a single individual providing $1.00 worth of benefit to 1 million people has created a million dollars of value.

If a group of ten people working in unity do the same then they have each created $100,000 worth of wealth.

What is at issue is the artificial economy, fabricated needs, and the cost burdens of fear, disease, and conflict which steal from all the worlds economic particpants.

February 16, 2012

C thru Appearances Tax the Rich is Scheme Created by the Rich

Taxing the Rich is an illusion solution, its a joke, a pacifier. The Rich will just raise the prices and increase their salaries to match. So then the people will need to increase taxes again, then the Rich raise the prices again in a vicious cycle. So be careful of those that would attempt to pacify you with the "Taxing of the Rich" much of their money is in non-profit trusts & foundations anyway. It doesn't deal with USURY (interest) & GAMBLING (speculation) which do not involve the creation of genuine tangible value for other economic system participants therefore creating imbalance and scarcity. The failure of the economic system requires much more than the “same old”. Taxing the Rich doesn’t deal with the Accounting Gimmicks & Bogus Financial Instruments although some of them benefited most others suffered detriment. Taxing the Rich doesn’t deal with the “Transaction Tax” on economic system participants. Taxing the Rich doesn't deal with the monopoly on the creation of money, ownership of the accounting system and the control of resources by a few. The "Taxing the Rich Theme Scheme" is the same old repeat scam created by the Rich to pacify the people and it creates an appearance of a resolution for the issue but it is not. It also does not address the return of trillions of dollars of wealth stolen from the citizens of the United States. TAX CAPITAL GAINS NOT LABOR some how it got twisted around and capital gains is taxed little and labor a lot? Should we tax people that gamble more than people that create genuine value for others? One would think so. In fact a super heavy tax on short term gains would eliminate the volatile market and attempts to manipulate. Tax long term dividends less and labor even less.
True the wealthy need to pay in a proportionate share of the collective cost burdens, we also do not want to tax people that are creating value and benefit for others. The major cause is not a lack of taxation but rather the flaws in the systems that allow and encourage its corruption. Greed is expressed at all levels buying cheap products or that made by lower wage labor is also a form of greed. Furthermore taxing the Rich doesn't solve the problem with all the wealth already stolen. It doesn't solve the problem which is at the system level.
One reason the CEO salaries are so huge they simply increase their salaries every time we increase their taxes, you are paying for it all anyway. It was a natural progression resulting from tax increases. This is a trick to get you to not focus on the real solutions involving the policy and principles upon which the system is based. You would need to take most the holdings of the “Rich” to make a difference.
Taxing the Rich does not solve the problem we need major system changes which help eliminate the gambling, unreasonable costs for operating the accounting system, and excessive fees for participation. The solution to eliminate disproportionate ratios are to increase the master account balances then transfer that to the bottom / base economy to allow consumers to credit producers for the creation of genuine value and then have it trickle up. This will reduce the percentage of wealth controlled by a few.
Do not fall for the inflation fear scam either that is old money attempting to protect it’s value. Passive players with old money don't like economic growth it shrinks the percentage of wealth they control. This is the main reason for charging interest on new wealth creation. Inflation is currently caused by a lack of liquid currency to support exchange between consumers and producers. As the customer base shrinks fixed costs which include interest payments on debt for the organization do not decrease and this cost must be spread across fewer and fewer product sales forcing a price increase. This is the true cause of current inflation.
Inflation is only an issue when the incentive to work ceases to exist. We need to rebuild the entire economic engine from the ground up. We need a natural market economic system based on science not an unnatural free market based on greed and ignorance. A “free” market means debt is no longer attached to the creation of genuine value. A design such as that articulated on Coin Age. So don't be seduced by a Tax the Rich solution demand much more.

February 5, 2012

Money is Unlimited Scarcity is Created Old Money New Money Conflict

“It is not intended that man should live to survive but rather that man would live to create” -R.G

Money is unlimited because our ability to generate value and therefore wealth is unlimited. In a natural economic system wealth should be proportional to the amount of genuine value created for others. Any scarcity of money is an artificial creation. Our consumption based on needs and our ability to produce does not change very much and would increase over time with population growth demanding economic expansion. This would indicate that the system used to account for value exchange has a flawed design. There is no natural intelligent reason that anyone on the planet could be without food, shelter, and energy, it is provided for free by The SUN. Remember it is the Consumer / Consumption and the inventors that create jobs not business. Business is the doing or fulfillment part, producers who are normally also consumers. Money is unlimited because it's creation is just a collection of key strokes creating a transaction in the cash account of the master chart of accounts. Decreasing it as other cash accounts in primary banks are increased. Then of course there are the banking agents themselves that with a number of keystrokes in relation to their volume of deposits has the power to increase your account balance as a debt. A promise to create future value but giving up a percentage in the form of interest on the debt.

But what is money? In the past it had intrinsic value the coin itself carried actual value. Money is now nothing but a digital accounting system and the sum of the account balances representing the total number of units that can be used to account for the creation and exchange of value. Yet the low income people often don’t have enough to justify having their own electronic digital account (number) in the system and live using cash paper printed which allows for off line transactions. Most of the currency in the system has no paper or coin representation. Thus the monetary system is nothing more than transactions that increase and decrease account balances. Individuals or organizations with large account balances can hoard currency in stagnant pools since they need a minimal amount to actually live little of their pool of currency needs to flow creating a scarcity of liquidity. Not enough units to support the required volume of exchange for essential economy between living producers and consumers in the general population. Where lower income individuals have not a pond, lake or ocean of digital units, but a stream where currency flows in and out immediately. It must therefore be replenished constantly with labor generating value for other consumers. When we pay someone or a business we are crediting them for the creation of value in the system and our account balance is increased.

The biggest conflict is between Old Money and New Money and yet anyone with savings of old is owner of Old Money. Economic growth devalues old money can’t say it more simply than this and is what results in scarcity. Old money is the creator of recessions and depressions and also serves to convert the intangible value in the accounting systems into tangible value in the real world. This is why Old money tacks interest on the creation of debt to support the creation of new value. Interest is a way maintains their percentage of the total wealth. Usury / interest is like a pay to play fee where you give up a percentage of your future wealth for the ability to create it.

An economic system transformed into one based on a holistic perspective, truth and science would be a great start. There is a chance that some new spontaneously emerging system could manifest but it might make sense to intentionally implement one. Natural Science Based Holistic Economic Systems

The creation of new monetary units proportional to the volume of value and services created each day based on a ratio, a Golden Ratio is needed. The creation of high value products and services is determined by the expressed needs of the economic constituency accommodating both essential needs and desired wants. We have issues though because our economic system is a "pay to play design" and subject to numerous monopolies the major one being the control of the accounting system used to distribute the artificial life sustenance and fund resources for new innovation. At least to a degree.

Economic accounting is implemented locally first then regionally nationally and scaled globally but in support of sustainability things that can be manufactured locally are. Trade exists for exotics and hospitality. Control of the system is not Apex but rather Base Control with Apex guidance. The whole system is controlled first by the individual > local > regional > national > global

It is important to note this was not conceived by the world’s current management, celebrated academia, or so called experts etc. who all have a vested interest in the current system and or are dependent on sustenance from the system as currently designed. One does not have a large vested interest in the current system but have actually suffered unnecessary detriment from it and so have many of you. I have worked on all parts of the system. To be true one has enjoyed wealth and abundance in the current system because some aspects of it do work sometimes. It is the control and management of the system that is flawed and warped by self interested individuals acting to their benefit to the detriment of others. Where ones activities should be a benefit to everyone, self included. Gambling on fluctuations distorts the system.

The transaction processing itself works fine although the infrastructure to support it is way beyond what is necessary, it is the "miscounting of the accounting of it". The solution to this is transparency at the summary level with privacy at the detail level. The infrastructure of the current system can be greatly consolidated into an autonomous system of self management, creating extreme efficiency lowering the system maintenance costs for the economic constituency. For example our current economic system requires the heating of tens of thousand of buildings when 12 data centers could suffice with some shared meeting places for human to human contact.

"Look carefully at the coin, a side represents one and the other many; both are taken into account equally. One does not favor one side of the coin but embraces both and spends them as one. But when flipping in a gamble we should choose heads for the free individual is the source of collective evolution and innovation the inventor, the true creator of jobs. Suppression of the individual can be fatal to the many and in contrast an individual(s) should never have the power to suppress the many for this is fatal to the individual. In this way the coin is whole and can be spent freely” –Gerber

"If the Angel cannot convince them the Demons will, you can be assured of that" -The Infinite Player

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February 4, 2012

The Illusion of Government & We Are the Government

From the The Illusion of Government by Richard Gerber 2008

The Citizens, Shareholders, and Consumers Shall Ascend to the Throne as One ~Consumers.me

"United we rule, divided we are ruled" ~One Click Revolution

"The Divided Get United the United Get Ignited" --Revolutions

"Politics is not a dirty word it is the collective decision making process" Mr. Urgo Diamu

The label “Government” does not own or owe anything, it cannot act, it does not decide, only people can act and make decisions; and the citizens own and owe everything. It is a label for the collective effort as defined by the collective intention. We cannot be anti-government we would be then anti our collective effort. What we can be is anti-individuals in government we grant power to then using it to benefit a few to the detriment of the many. There are many that will attempt to hide behind the veil of the government label so seek beyond the label to name them.

If one can see though the illusion of the separation between the government and it's people, created by the ego empire, then you will become empowered to create in reality a true democracy with prosperity and abundance for all.

“Government” is just a label for an institution run by individuals with names, who are supposed to represent truth and the interests of the people as a whole. If they fail to do so then we have the illusion of democracy where the people are ruled by a fallible few and not self governed by the perfect many.

It is in the illusion where the people are taught to see themselves as separate from the institution of government. In reality the people when united are the government, which is the manifestation of their collective effort. Unfortunately most live in an illusion, minds full of fiction, and thinking plagued by propaganda; it is the results of this that they experience even now.

"Government" which is a label representing the collective effort of a citizenry, does not make decisions, people do. Individual representatives that are not connected to the source (the people) and do not register the voice and input of each individual to know the collective intent, will, wisdom and intelligence of the people, cannot claim to represent the people and fulfill their fiduciary responsibility to the people.

It is the duty of the representative to balance between the needs of the whole and the "needs" of each part, delivering the essential to all, while taking into account and balancing the "wants" of all. It is their duty to invite conformity in support of the whole by illustrating the benefits of doing so. It is vital that no individual is bound or restrained but is allowed free agency, for it is the exception to the status quo that ensures the evolution and growth of the nation.

It should be understood that any representative or agent of government that acts to the benefit of a few to the detriment of the many has committed treason at least within the heart. Any that have chosen to believe a fiction because they desired it as a reality, prejudice against that which might threaten it, failing to question and doing due diligence to discern and garner the truth and facts, while exhausting all resources of insight and creative intelligence, have failed their constituency.

Until the authentic voice of each person is measured and taken into account on each article of concern and permitted to participate in the design of policy and solution, one does not have a democratic government in reality; only the appearance and illusion of one.

Accordingly the people cannot expect the effort called government to represent them if they do not participate as self informed shareholders that both discern the truth and give voice to it, while providing the impetus of their will. To remain silent is to allow the fictions to grow and spread disease. If a few are allowed to divide the people then they can rule the people, a united people cannot be ruled over, they can only be self governed.

If all one can do as a citizen is repeat rhetoric, rather than committing to study, research and understanding so as to be able to speak the intelligence and wisdom from your own mind then you have also failed your nation, your family and friends and there is no government to blame.

We cannot blame government, it is a label that does not think or act, only individuals can think and act. It is we the people that are to blame allowing ourselves to be divided having others to do our thinking for us, failing to question, remaining passive in ignorance. There is no power on earth greater than a people unified in intent and will, acting with intelligence, moving in truth, with wisdom and compassion. If we allow ourselves to be divided with fictions and labels then it is we that are to blame.

You cannot confront or question a label, you must confront and question the people hidden behind the label.

Truth is the highest of all authority and every law must be based on truth or it has no authority, and anyone acting in truth can break no law.

Greater than a statement which can be cast aside, is a question that creates a vacuum in the mind that abhorred by nature is soon filled with reality

All injustice is born from fiction, and justice is not about revenge but bringing to light the truth that destroys that fiction that gave rise to the injustice. That fiction may be found far from the scene of the crime and often in the company of others.

It is the responsibility of the representative to craft and orchestrate the manifestation of the deliverables defined in concert with the people. It is the task of a lucid citizenry to be the dominant impetus and to become the main cause of the effect.

The people are the power and the glory of the nation, all as one and one as all, one as many and many as one.
by Richard Gerber

WE ARE THE LAW
“Sovereignty itself is, of course, not subject to law, for it is the author and source of law; but in our system, while sovereign powers are delegated to the agencies of government, Sovereignty itself remains with the people, by whom and for whom all government exists and acts.” —supreme Court Decision, Woo Lee vs. Hopkins 118 U.S. 356
-Evolutionary Revolutionary Commando

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