DESCRIPTIONS AND ILLUSTRATIONS

Copyright 1983-2003, and beyond, by Bernard Palicki, All Rights Reserved
The set of four Corrective Actions required by the U.S. and all other Nations on Earth during this 21st Century are based on the Technical Appendices and Illustrations provided here.
B. - Technical Appendices and Illustrations
  1. Appendix 1 Fall of the Gold Standard

  2. Appendix 2 Fundamental Structure of Any National Economy

    Supplements, as follows:

  3. Appendix 3 Dynamics of the Balance Equation

  4. Appendix 4 Demand and Supply - The Relationship

  5. Appendix 5.1 Inflation, Interest Rates and the Stock Market

  6. Appendix 5.2 Effect of Inflation on Poverty Level Income and Stock Market Averages as a Measure of Total National Capital Investment

  7. Appendix 5.3 Using the Work Breakdown Structure of the National Household To Support Technical Argument

  • TECHNICAL ILLUSTRATIONS

    1. Figure A2-1 Fundamental Structure and Circular Flow of Money

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

    3. Figure A2-3 Closed Loop Architecture of the Analog Model for Circular Flow of Units of Currency

    4. Figure A2-4 Circular Flow and Distribution of U.S. Money Supply Loads

    5. Figure A2-4.1 Ratio of Money Supply (M3) and Population Headcount(P), 1995-2000

    6. Figure A3-1 Balance Equation In Vector Form

    7. Figure A4-1 Demand and Supply Relationship

    8. Table A5-1 Table of Money Supply vs. Population Growth, 1900-1995

    9. Figure A5-1 Chart of Money Supply vs. Population Growth, 1900-1995

    10. Table A5-2.1.a.U.S. Money Supply Growth vs Population Growth, 1900-1997

    11. Figure A5-2.1.b.Chart of U.S. Money Supply Growth vs Population Growth, 1900-1997

    12. Table A5-2.2.a.Inflation Effect on Per Capita Distribution of Money Supply vs Total National Capital Investment, 1900-1997

    13. Figure A5-2.2.b.Chart of Inflation Effect on Per Capita Distribution of Money Supply vs Total National Capital Investment, 1900-1997
    • Attempt at Summary of Conclusions

    1. The sum total of the gross incomes of all individuals (Total U.S. National Population Headcount) is equal to the total U.S. National Money supply at the M3 level definition of the 'U.S. Money Supply'.

    2. The simple ratio of M/P defines 'per capita distribution' of any Nation's Money Supply. Here we are focused on U.S. numbers/amounts.

    3. Per capita distribution of the U.S. Money Supply defines and is 'gross poverty level' income.

    4. 'Gross poverty level income' ( 'per capita distribution' of money supply) is the minimum required to pay for a roof over your head, clothes on your back, food on the table and cost of transportation to go back and forth to work at place of study or employment.

    5. At 'gross poverty level' income there is no money left over ('disposable income') to purchase beer and cigarettes for relief from the pressures of earning an income, or to pay for essential health care, to simply live a life.

    6. Twice the ratio of M/P (M=Total National Money Supply/ (P)=Total National Population Headcount) is the 'gross poverty level income' exempt from the payment of taxes of any kind.

    Under a singular and progressive Annual Gross Income Tax (all other taxes abolished), an amount that is equal to twice (2 times) the ratio of M/P, applied to the gross incomes of all business structures and all individuals, is not taxable. [In 1997 numbers, that amount is $40K per year, and there are no other tax exemptions or deductions for anyone.

    Poverty level income (per capita distribution of national money supply) continues to increase as deliberate inflation of money continues, i.e., rate of growth of Total National Money Supply(M) exceeds rate of growth of Total National Population Headcount(P).

    Government/political subsidy of all markets must be abolished if you want the 'natural law of demand and supply' to rule in 'market-driven management' of the 'national household' (not rule by a corrupt political party system, or un-elected 'banker' and 'economists' employed by the privately owned and operated central banking system).

    There does not exist any such thing as a 'non-profit' organization. Such organizations (as provided by the Federal Tax Code) are drivers of dis-unity and political dissension. These likewise must be abolished.

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