Failure Analysis of 20th Century Economics

'Corrective Actions' Required by ALL Nations for the 21st Century

There exists a set of four simple 'Corrective Actions' required by all Nations during this 21st Century, to bring order out of global and domestic financial chaos - a financial chaos caused by pre-eminent control by the finance ministers of the central banks over money supplies of all nations on Earth. 'Corrective Actions' provides control over growth rate of money supply, time-cost of borrowed money (interest rates), and the cost of federal, state and local government in the United States as a national household. (These 'Corrective Actions' can be applied to all national households on Earth).

The 'corrective actions' are designed to do an end run around any political party control of federal, state and local government, bring federal government banking and finance under control and, hopefully, result in restoration of industrial engineering and manufacturing in the United States.

The 'corrective actions' are repeated below, as follows:

1. ZERO INFLATION

Stop and eliminate the creeping rot of inflation of money.

Fix the dimension of money as a standard unit of measure of the cost of human labor, dependent on population growth and population densities. Fix increase or growth of Money Supply to the natural rate of growth of the naturalized citizen population headcount provided by the Census.

NOTE:
Given there is integrity in real-time maintenance of the data base of the Social Security System (Names, addresses and dates of birth and death of U.S. Citizens), the Social Security System data base could be used to conduct the Census, and do so every five years instead of every ten years, and do so more cost-effectively than the costly- time-consuming 'mail-in' and/or supplemental 'door-to -door' solicitation questionnaires.

Whether you like it or not, the U.S. Social Security Number, assigned to each newborn child from its moment of birth, is a U.S. Federal Identification Number.

The U.S. Social Security Card should carry a photo of its 'owner', just as State Driver's Licenses require photo of its owner, renewable every five(5) years. Thus, we would be able to distinguish 'Citizens' from 'Aliens' and update the U.S. Census every five years (at far less cost than the current archaic 'system' of census-taking every ten (10) years.
END THIS NOTE

2. FIX THE COST OF BORROWED MONEY AT 5%

Fix the cost of borrowed money at 5% annual percentage rate (APR) to the borrower.

( 1. and 2. above, applied together, or simultaneously, fixes units of money as a unit of measure of the cost of human labor.)

3. PUT ALL LEVELS OF GOVERNMENT ON FIXED BUDGET INCOMES

Natural law dictates that maximum efficiency is achieved only when the power of the 'load' is equal to the power of the 'source'.

Accordingly, this corrective action provides that 50% of the total national money supply (using the M2 component of total national money supply as a number) be allocated and reserved to support the total cost of total government (all levels of government - federal, state and local) with distribution of fixed government budget income amounts as set forth in Essay 7, 'Corrective Action' - Part 2.

Illustration of this distribution from the above link is shown in Figure 7.1, Fixed Government Budget Income Distribution.

This is no other way to contain the size, power and force of 'government' or 'ruling establishments' to interfere with the natural demand and supply forces of 'trade' in the market place.

4. BALANCE DISTRIBUTION OF THE TOTAL TAX BURDEN

The classic national household management problem has never been distribution of wealth. The classic national household management problem has always been distribution of the tax burden.

  1. Eliminate all government grants, subsidies and loan guarantees.

  2. Eliminate taxes on all goods, products and property, leaving only a single and progressive tax on gross incomes (with no deductions1), where the tax rate is determined by gross income as some percent of total national money supply, without distinction between government agency entity incomes, structured business entity incomes and/or individual or family incomes.
    1 No deductions except the 'time-cost of borrowed money' paid to banks/creditors in a given taxable year, not distinguishing between government agency entity incomes, structured business entity incomes and/or individual or family incomes.

Corrective Actions Required For the 21st Century:

Fixing units of currency as a standard unit of measure of the cost or worth of individual human life

???What is required to fix units of currency as a standard unit of measure of the cost or worth of individual human life???

Re Corrective Action 1:

Fix the controllable rate of growth of total national money supply (M) to the natural and uncontrollable rate of growth of total national population headcount (P). M is the total supply of money/currency of any given Nation, and P is the total population headcount of any given Nation.

Re Corrective Action 2:

Fix the cost of money borrowed by the public at 5% per annum (per year), to support a continuous and un-interrupted circulation of units of currency through the buy and sell transactions of the market place.

Restrict judgement for bank approval/disapproval of loan/credit to a borrower's history of employment and a proven ability to repay loans. Fix the cost of money borrowed by all banks from the Reserves of the Federal Reserve Banking System at 3% per annum, allowing banks a 2% profit to sustain banking operations.

Re Corrective Action 3:

Put all operational and enforcement costs of government (federal, state and local) under fixed budget income, wherein the fixed budget income to support the total cost of total government, federal, state and local, is fixed at 50% of total national money supply (M).

Re Corrective Action 4:

All other taxes, except taxes on imports from international trade of products, are abolished.

Maintenance and expansion of 'poverty' of the citizens of any given Nation on Earth is forced and deliberate.

'Poverty', and the maintenance and expansion of 'poverty', is forced, by the very simple and destructive act of growing any Nation's 'Total National Money Supply' at some rate that exceeds the natural rate of growth of any Nation's 'Total National Population Headcount'.

If you want the 'natural law of demand and supply' to rule in 'market-driven management', within and between all 'national households', federal and world bank government (International Monetary Fund) subsidy of all markets for products and services must be abolished.

Contrary to all popular myth, ALL MEN ARE NOT CREATED EQUAL into a material existence.

The first two 'corrective actions' are required to fix money/units of currency as units of measure of the variant and un-equal cost or worth of the individual human life.

The third 'corrective action' is required to contain abuse and corruption by elected officials of 'government'.

Constitutional Amendment is not required to implement these 'corrective actions'. These 'corrective actions' can be accomplished by simple amendment to the Federal Reserve Banking Act of 1913.

The Federal Reserve Banking Act of 1913 was a deceitful Act of ignorant menbers of the U.S. Congress at that time. That ignorant U.S. Congress of 1913 forfeited original Constitutional power of the U.S. Congress to regulate the value of money and of foreign coin.

In fact, ignorant members of the U.S. Congress of 1913 handed over original 'constitutional' power and authority of the U.S. Congress, 'to regulate the value of money and of foreign coin', to a private banking authority, the 'money changers' in the temple.

Destructive consequence was the 'Great Depression of the 1930s' and reduction of the United States into a 'socialist-welfare-state' and a 'beggar' Nation during the 20th Century.

There is only one way to bring taxes, costs and prices of all material product in the United States under control. That only "one way" is to bring the U.S. Money Supply under control, and the only way to bring U.S. Money Supply under control is to put all levels of government, Federal, State and Local under control, and the only way to put Federal, State and Local government under control, is to put Federal State and Local government under fixed budget incomes, and the only way to put them under fixed budget incomes is to control the rate of growth of U.S. Money Supply to the natural rate of growth of the national U.S. population headcount.

A simultaneous requirement is to put the time-cost of borrowed money under control - specifically, to fix the cost of all borrowed money at 5%. Together, these actions would provide for a fixed unit of measure of the U.S. dollar, for the sake of survival of the United States as a sovereign republic (not a democracy).

The above actions shall also require total repudiation of the North American Free Trade Agreement (NAFTA) and immediate deportation of all illegal immigrants. The United States can send the bill for cost of this deportation to the countries of deportation. This can begin by requiring a photo of legal U.S. citizens on their Social Security Cards (Including all newborns - renewable every five years like State Driver's Licenses.)

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Corrective Action - Part 2

Technical Appendices and Illustrations

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