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APPLICATION IN ECONOMICS
To use this method of airframe shock testing in economic engineering, the prices of commodities are shocked, and the public consumer reaction is monitored. The resulting echoes of the economic shock are interpreted theoretically by computers and the psycho-economic structure of the economy is thus discovered. It is by this process that partial differential and difference matrices are discovered that define the family household and make possible its evaluation as an economic industry (dissipative consumer structure).
Then the response of the household to future shocks can be predicted and manipulated, and society becomes a well-regulated animal with its reins under the control of a sophisticated computer-regulated social energy bookkeeping system.
Eventually every individual element of the structure comes under computer control through a knowledge of personal preferences, such knowledge guaranteed by computer association of consumer preferences (universal product code, UPC; zebra-striped pricing codes on packages) with identified consumers (identified via association with the use of a credit card and later a permanent "tattooed" body number invisible under normal ambient illumination).
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THE ECONOMIC MODEL
The Harvard Economic Research Project (1948-) was an extension of World War II Operations Research. Its purpose was to discover the science of controlling an economy: at first the American economy, and then the world economy. It was felt that with sufficient mathematical foundation and data, it would be nearly as easy to predict and control the trend of an economy as to predict and control the trajectory of a projectile. Such has proven to be the case. Moreover, the economy has been transformed into a guided missile on target.
The immediate aim of the Harvard project was to discover the economic structure, what forces change that structure, how the behavior of the structure can be predicted, and how it can be manipulated. What was needed was a well-organized knowledge of the mathematical structures and interrelationships of investment, production, distribution, and consumption.
To make a short story of it all, it was discovered that an economy obeyed the same laws as electricity and that all of the mathematical theory and practical and computer know-how developed for the electronic field could be directly applied in the study of economics. This discovery was not openly declared, and its more subtle implications were and are kept a closely guarded secret, for example that in an economic model, human life is measured in dollars, and that the electric spark generated when opening a switch connected to an active inductor is mathematically analogous to the initiation of war.
The greatest hurdle which theoretical economists faced was the accurate description of the household as an industry. This is a challenge because consumer purchases are a matter of choice which in turn is influenced by income, price, and other economic factors.
This hurdle was cleared in an indirect and statistically approximate way by an application of shock testing to determine the current characteristics, called current technical coefficients, of a household industry
Finally, because problems in theoretical electronics can be translated very easily into problems of theoretical electronics, and the solution translated back again, it follows that only a book of language translation and concept definition needed to be written for economics. The remainder could be gotten from standard works on mathematics and electronics. This makes the publication of books on advanced economics unnecessary, and greatly simplifies project security.
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INDUSTRIAL DIAGRAMS
An ideal industry is defined as a device which receives value from other industries in several forms and converts them into one specific product for sales and distribution to other industries. It has several inputs and one output. What the public normally thinks of as one industry is really an industrial complex, where several industries under one roof produce one or more products . . .
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THREE INDUSTRIAL CLASSES
Industries fall into three categories or classes by type of output:
Class #1 - Capital (resources)
Class #2 - Goods (commodities or use - dissipative)
Class #3 - Services (action of population
Class #1 industries exist at three levels:
(1) Nature - sources of energy and raw materials.
(2) Government - printing of currency equal to the gross national product (GNP), and extension of currency in excess of GNP.
(3) Banking - loaning of money for interest, and extension (inflation/counterfeiting) of economic value through the deposit loan accounts.
Class #2 industries exist as producers of tangible or consumer (dissipated) products. This sort of activity is usually recognized and labeled by the public as "industry."
Class #3 industries are those which have service rather than a tangible product as their output. These industries are called (1) households, and (2) governments. Their output is human activity of a mechanical sort, and their basis is population.
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AGGREGATION
The whole economic system can be represented by a three-industry model if one allows the names of the outputs to be (1) capital, (2) goods, and (3) services. The problem with this representation is that it would not show the influence, say, the textile industry on the ferrous metal industry. This is because both the textile industry and the ferrous metal industry would be contained within a single classification called the "goods industry" and by this process of combining or aggregating these two industries under one system block they would lose their economic individuality.
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THE E-MODEL
A national economy consists of simultaneous flows of production, distribution, consumption, and investment. If all of these elements including labor and human functions are assigned a numerical value in like units of measure, say, 1939 dollars, then this flow can be further represented by a current flow in an electronic circuit, and its behavior can be predicted and manipulated with useful precision.
The three ideal passive energy components of electronics, the capacitor, the resistor, and the inductor correspond to the three ideal passive energy components of economics called the pure industries of capital, goods, and services, respectively.
Economic capacitance represents the storage of capital in one form or another.
Economic conductance represents the level of conductance of materials for the production of goods.
Economic inductance represents the inertia of economic value in motion. This is a population phenomenon known as services.
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ECONOMIC INDUCTANCE
An electrical inductor (e.g., a coil or wire) has an electric current as its primary phenomenon and a magnetic field as its secondary phenomenon (inertia). Corresponding to this, an economic inductor has a flow of economic value as its primary phenomenon and a population field as its secondary field phenomenon of inertia. When the flow of economic value (e.g., money) diminishes, the human population field collapses in order to keep the economic value (money) flowing (extreme case - war).
This public inertia is a result of consumer buying habits, expected standard of living, etc., and is generally a phenomenon of self-preservation.
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INDUCTIVE FACTORS TO CONSIDER
(1) Population
(2) Magnitude of the economic activities of the government
(3) The method of financing these government activities
(See Peter-Paul Principle - inflation of the currency.)
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TRANSLATION
(a few examples will be given.)
Charge - coulombs - dollars (1939).
Flow/Current - amperes (coulombs per second) - dollars of flow per year.
Motivating Force - volts - dollars (output) demand.
Conductance - amperes per volt - dollars of flow per year per dollar demand.
Capacitance - coulombs per volt - dollars of production inventory/stock per dollar demand.
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TIME FLOW RELATIONSHIPS AND SELF-DESTRUCTIVE OSCILLATIONS
An ideal industry may be symbolized electronically in various ways. The simplest way is to represent a demand by a voltage and a supply by a current. When this is done, the relationship between the two becomes what is called an admittance, which can result from three economic factors: (1)hindsight flow, (2) present flow, and (3) foresight flow.
Foresight flow is the result of that property of living entities to cause energy (food) to be stored for a period of low energy (e.g., a winter season). It consists of demands made upon an economic system for that period of low energy (winter season).
In a production industry it takes several forms, one of which is known as production stock or inventory. In electronic symbology this specific industry demand (a pure capital industry) is represented by capacitance and the stock or resource is represented by a stored charge. Satisfaction of an industry demand suffers a lag because of the loading effect of inventory priorities.
Present flow ideally involves no delays. It is, so to speak, input today for output today, a "hand to mouth" flow. In electronic symbology, this specific industry demand (a pure us industry) is represented by a conductance which is then a simple economic valve (a dissipative element).
Hindsight flow is known as habit or inertia. In electronics this phenomenon is the characteristic of an inductor (economic analog = a pure service industry) in which a current flow (economic analog = flow of money) creates a magnetic field (economic analog = active human population) which, if the current (money flow) begins to diminish, collapse (war) to maintain the current (flow of money - energy).
Other large alternatives to war as economic inductors or economic flywheels are an open-ended social welfare program, or an enormous (but fruitful) open-ended space program.
The problem with stabilizing the economic system is that there is too much demand on account of (1) too much greed and (2) too much population.
This creates excessive economic inductance which can only be balanced with economic capacitance (true resources or value - e.g., in goods or services).
The social welfare program is nothing more than an open-ended credit balance system which creates a false capital industry to give nonproductive people a roof over their heads and food in their stomachs. This can be useful, however, because the recipients become state property in return for the "gift," a standing army for the elite. For he who pays the piper picks the tune.
Those who get hooked on the economic drug, must go to the elite for a fix. In this, the method of introducing large amounts of stabilizing capacitance is by borrowing on the future "credit" of the world. This is a fourth law of motion - onset, and consists of performing an action and leaving the system before the reflected reaction returns to the point of action - a delayed reaction.
The means of surviving the reaction is by changing the system before the reaction can return. By this means, politicians become more popular in their own time and the public pays later. In fact, the measure of such a politician is the delay time.
The same thing is achieved by a government by printing money beyond the limit of the gross national product, and economic process called inflation. This puts a large quantity of money into the hands of the public and maintains a balance against their greed, creates a false self-confidence in them and, for awhile, stays the wolf from the door.
They must eventually resort to war to balance the account, because war ultimately is merely the act of destroying the creditor, and the politicians are the publicly hired hit men that justify the act to keep the responsibility and blood off the public conscience. (See section on consent factors and social-economic structuring.)
If the people really cared about their fellow man, they would control their appetites (greed, procreation, etc.) so that they would not have to operate on a credit or welfare social system which steals from the worker to satisfy the bum.
Since most of the general public will not exercise restraint, there are only two alternatives to reduce the economic inductance of the system.
(1) Let the populace bludgeon each other to death in war, which will only result in a total destruction of the living earth.
(2) Take control of the world by the use of economic "silent weapons" in a form of "quiet warfare" and reduce the economic inductance of the world to a safe level by a process of benevolent slavery and genocide.
The latter option has been taken as the obviously better option. At this point it should be crystal clear to the reader why absolute secrecy about the silent weapons is necessary. The general public refuses to improve its own mentality and its faith in its fellow man. It has become a herd of proliferating barbarians, and, so to speak, a blight upon the face of the earth.
They do not care enough about economic science to learn why they have not been able to avoid war despite religious morality, and their religious or self-gratifying refusal to deal with earthly problems renders the solution of the earthly problem unreachable to them.
It is left to those few who are truly willing to think and survive as the fittest to survive, to solve the problem for themselves as the few who really care. Otherwise, exposure of the silent weapon would destroy our only hope of preserving the seed of the future true humanity...
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THE HOUSEHOLD INDUSTRY
The industries of finance (banking), manufacturing, and government, real counterparts of the pure industries of capital, goods, and services, are easily defined because they are generally logically structured. Because of this their processes can be described mathematically and their technical coefficients can be easily deduced. This, however, is not the case with the service industry known as the household industry.
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Continued...