Natural Law Thesis

Appendix 2, Figure A2-4, Circular Flow and Distribution of U.S. Money Supply Income Loads
Copyright 2002 by Bernard Palicki. All Rights Reserved.


A continuous and un-interrupted circular flow of money (monetary units of currency) is fundamental, natural and essential to support internal national domestic health and prosperity of individual citizens and families of all nations on Earth.

Figure A2-4, provided here, is the last in a series of four illustrations to emphasize this 'natural law' fact. Links to the three previous illustrations are provided at the bottom of this page.


Figure A2-4 provides a Bubble that is numbered for each 'line' or 'junction of lines' to trace the circular flow of 'money' (units of currency), from its Money Supply Source that originates with 'Debt' (Bubble #3), and return of all 'money' to the Money Supply Source through all Taxation (Bubble #8) that is also 'Debt'.

Description of each 'Bubble', numbered for each 'line or 'junction of lines' of Figure A2-4, is repeated further below for convenience: NOTES are added here (where deemed appropriate) for better insight and clarity.

A balanced distribution of any Nation's Debt (i.e., Money Supply (M) cannot ever exist until the total amount of Taxation (Bubble/Line #8) is made equal to the total amount of any Nation's Money Supply (Bubble/Line #3). This 'Fact' supports argument that solution of the classic 'problem' of disparity of wealth that exists between 'haves' and 'have nots' is NOT through the existing system of 'taxation' and 'socialist welfare-state' engineering of laws to distribute 'wealth'.

Solution of the classic 'problem' of disparity of wealth that exists between 'haves' and 'have nots' cannot be accomplished other than through a 'balanced' distribution of the 'total tax burden'.
See Corrective Actions required by all Nations on Earth during this 21st Century (specifically here, Corrective Action number 4).

  • (Line#1) All uncontrolled Congressional spending Legislation forwarded to the Fed (Private Banking Authority) for conversion into U.S. Money Supply units of currency.

    [Note 1.
    a. Effective in Year 2002, the U.S. Money Supply contains Euro Dollars.

    b. During the last five years, from January 1997 through January 2002, U.S. Money Supply increased 60.6%, from $4,999.8 Billion to $8,029.7 Billion.

    Ques: Where did all that new money go?

    Ans: Most of that 60.6% increase of U.S. Money Supply left the U.S., pushing the U.S. Trade Deficit to unprecedented levels during that same period of time, accompanied by an unprecedented number of layoffs (increased un-employment), destruction of pension funds, business bankruptcies and depression of U.S. stock market prices.
    End Note 1.]

  • (Line#2) Conversion of U.S. Congressional spending legislation /appropriations into U.S. Money Supply units of currency through private U.S. Federal Reserve Open Market Committee (FOMC) Operations.

  • (Line#3) All U.S. Money Supply units of currency enter the National Household Trade Circuit in the form of debt (all loans, grants and subsidies).

  • (Line#4) All Purchases by All Federal, State and Local Orgs and Agencies (Load I functional block) from All Privately Owned and operated business orgs/structures (Load II functional block).

    [Note 2: FACTS
    Since all industrial engineering and manufacturing facilities in the U.S. have been shut down, ALL Purchases by All U.S. Federal, State and Local Orgs and Agencies (Load I functional block) are from the product producing 'nations' of Asia and Europe, creating the existing grossly negative 'balance of payments' or 'trade deficit'.

    The major automotive assembly plants in the U.S. are owned by Japanese and German companies. All other products in ALL retail outlets in the U.S. are manfactured by nations in Asia and Europe. (Check the Labels of ALL products you purchase from all wholesale and retail outlets in the U.S.)

    NONE of THE 'Privately Owned and Operated Business Orgs/Structures (Load II functional block) of the various Stock Exchanges (Dow-Jones, Standard & Poors, Amex, etc. produce or manufacture 'product'.

    Almost ALL product sold in 'Box' Stores like Wal-Mart, Home Depot, Lowe's, and all other U.S. retail outlets, are not manufactured in the U.S. (Check the Labels)

    The above 'FACTs' establish the U.S. as a 'beggar nation' - no longer capable of producing 'material product' essential to maintenance of 'material standards of living' currently enjoyed by CITIZENS of the U.S.
    End Note 2.]

  • (Line#5) All/Total payroll and retirement pension expense paid to All employees of All Federal, State and Local Orgs and Agencies.

  • (Line#6) All/Total payroll and retirement pension expense paid to All employees of All Privately owned and operated business orgs/structures.

  • (Line#7) All/Total expense/purchases of total U.S. National Population Headcount for cost of living, travel, entertainment, investment and re-payment of Credit Debt.

  • (Line#8) All/Sum Total of all variety of Taxes (imposed by Federal, State and Local governments) paid by all U.S. Privately owned and operated business orgs/structures and all individual income-earning citizens of the U.S., to support the total cost of total government.

  • (Line#9) Total of All U.S.Stock Mkt Exchange Prices - A Voltmeter measurement of total amount of Capital investment in privately owned businesses in the U.S.

  • (Line#10) Junction of Credit Debt (Liability) against Incomes (Assets) of the Total National Population Headcount(P).

The Figure A2-4 Illustration and description here is supplementary to the following three previous illustrations:

Figure A2-1, Figure A2-2 and Figure A2-3 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 power and control of un-constitutional 'private banking authority' over the central banking system of the U.S., through both the public (government) and private sectors of the United States as a national household.

A similar closed-loop architecture of the circular flow of units of currency MUST exist for every nation on Earth.


Advance/Return Options:
Advance to Ratio of U.S. Money Supply (M3) and Population Headcount (to see rate of increase of U.S. Money Supply in excess of rate of increase of U.S. Population Headcount, wherein this disparity of rate increases (growth of M faster than growth of P) drives increase of poverty level income and minimum wage/hr requirements during a five year period, 1995-2000).

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