The closed-loop architecture and nature of the circular flow of units of currency is exactly the same as the closed-loop architecture and nature of the circular flow of electron energy in the simplest form of an analog computer circuit.

Here we are confronted with the most formidable of challenges - explaining one unknown in terms of another unknown - wherein the greater majority of the population of the United States, and the rest of the world, are abysmally ignorant of both (where ignorance is an absence of knowledge, not as a statement of ridicule, but as a statement of fact).

Accounting is the domain of the accountant and the bookeeper. Electronics is the domain of the electrical /electronic engineer and the technician. Like "east is east, and west is west, and never the twain shall meet" - until now.

Contention here is simply this: If an observer can understand the simple mechanics of the trade or transfer of electron energy of the basic electronic analog computer circuit, that understanding can be transferred to understanding the simple mechanics of the trade or transfer of human energy of the trade circuit (and vice versa), because the mechanics of transfer is the same in both cases.

Popular understanding can begin by recognizing and understanding that the controlling elements for trade or transfer of electron energy of the electronic circuit are the same as the controlling elements for trade or transfer of human energy in the trade circuit; first, by building products, followed by buying and selling products in the market place. (NOTE: The 'trade circuit' is erroneously called 'The Economy' ['management of the national household'], by propagandists/promoters for 'socialist' administration and control of government and all sources and means for production of product.)

Given the one-to-one correspondence of the amount and direction of Assets to the Resistor, amount and direction of Liabilities to the Coil, and amount and direction of Capital to the Capacitor, the rectangular system of coordinates enables addition and subtraction of the vectors representing those amounts, as illustrated under Figure A3-1, Balance Equation In Vector Form

Your technical challenge or refutation of this given is invited.

For example, sensors mounted on an aircraft, can measure and convert static and differential air pressure into electrical voltage amounts used for real-time continuous calculation and display of air speed of an aircraft. Here, the sensors are the flat spreadsheets of accounting ledgers used to journal or track Assets and Liability, to determine Capital.

• Figure A2-1, Fundamental Structure and Circular Flow of Money

• Figure A2-2, Analog Computer Model of the Balance Equation and the National Household.

Figures A2-1 and Figure A2-2, are functional flow diagrams, to demonstrate and emphasize both the natural and circular nature of the flow of money, from the 'power source' that is the Total National Money Supply (TNMS), under un-constitutional private authority, power and control over the central banking system of the national household, through both the public (government) and private sectors of the United States as a national household.

Figure A2-3, below, is an illustration of the closed-loop architecture of the circular flow of units of currency. A similar closed-loop architecture of the circular flow of units of currency exists for every nation on Earth.

The analog model under Figure A2-3, is the only model anyone needs, to understand and appreciate the import of the set of four 'Corrective Actions' required to bring order and stability out of the social, economic and political disorder and chaos that prevails during these closing years of the 20th Century. Any other models for circular flow of units of currency are extraneous, superfluous and irrelevant.

Sameness or Similarity of Controlling Elements in this Analog Model:

Transfer and distribution of human energy occurs through buying and selling goods, products and services in the global or domestic market place - exchanging products and services for labor, or labor for products and services, using units of currency as a medium for the exchange.

Controlling elements of the market place are the terms of the Balance Equation from accounting principles, where 'Assets' of the market place become what you 'own' as products of labor;

'Liabilities' become labor that you 'owe', to acquire more assets to survive and to improve your circumstances and conditions for survival;

'Capital' becomes the difference between what you "own" and what you "owe", and is an essential investment or re-investment (in self, or in others) - an essential feedback of stored human energy (alternately called 'equity','net worth' or 'retained earnings'), to maintain your human ability to sustain and to function.

The set of 'Corrective Actions' of this natural law thesis attacks to destroy four root causes for social, economic and political disorder and chaos that prevails during these closing years of the 20th Century:

Inflation of units of currency (increasing money supply faster than natural growth rate of population headcount) causes a decrease in the purchasing power of units of currency faster than the low and middle-income class wage-earner individual can earn units of currency through labor. Delibrate inflation is a built-in cause of expansion of poverty, stress and frustration.

The fix here is Zero inflation.

Everyone on the face of the Earth needs credit to support an uninterrupted flow of cash or currency to maintain.

A changing cost of borrowed money is an un-called for and un-warranted vector perturbation of the Liabilities of every business structure and individual in the United States. This deliberate vector perturbation does not allow the analog model to arrive and stay in a state of rest or equilibrium.

When the cost of money to pay the mortgage on a home exceeds the principal cost for the purchase of a home over a period of thirty years (half a lifetime), you have a condition of financial tyranny and oppression of the wage earning worker. That condition occurs when the annual percentage rate for the cost of borrowed money exceeds 5%.

The fix here is a cost of borrowed money fixed at 5% per year.

During the last 50 years of its existence as a sovereign Republic (not a 'democracy' repudiated by the Founding Fathers), under its Constitution of and for government, the citizens of the United States have experienced the total loss of its industrial engineering and manufacturing capability, because of the deliberate inflation that drove this capability out of the country.

Even the cost of two world wars during the first half of the 20th Century did not see the profligate spending experienced since incorporation of the Bretton-Woods agreement of 1945 (into the un - constitutional Federal Reserve Banking Act of 1913).

Individual States must have balanced budgets, because they do not have authority to coin money to pay for profligate, abusive and senseless spending to keep office holders in office. However, this constitutional constraint does not prohibit commision of fraud, waste, and abuse of welfare-state tax dollars by welfare-state office holders at the state and local levels.

The U.S. Constitution never required a balanced budget to support the total cost of federal government, so successive Congressional assemblies (every two years for Reps, every six years for Senators) never provided one. This omission of the U.S. Constitution of government has allowed reduction of the positions of Representatives and Senators (at the federal and state levels of government) to the role and position of 'pimps' in a House of Prostitution.

The fix here is to put all of government (Federal, State and Local) on fixed budget incomes, as prescribed in the 'Corrective Actions'.

Not a bad move. The first 'economist' (Francois Quesnay, 1694 - 1794, first physician to the King of France) advocated a single tax on land, because he held that land was the source of all wealth. The talents of product-building wage-earning individuals is the only valid source of the wealth of a nation.

Challenge, comments or questions are welcome.