Both existing and possible economic theories may be ranged into one of the two following categories:
· The first group of theories describes the economy of a society in a way, which implies the need to give the answer to the question how an entrepreneur can legally fill up his pockets.
· The second group describes the economy of a society in a way, which implies that the economic activities in the society are to be used as a means of approaching some other, fundamentally noneconomic, goals.
Theories of the first-group originate from understanding that there are the following means of influence, a sensible application of which to the society lets us manage its life and death:
There is no univocal distinction between those factors. The hierarchically ordered structure outlined above is based on the selection of predominate factors of well known heterogeneous means of influence.
When it comes to application of such a set within a single social system, the means represent generalized tools of its management. In case these means are applied by one social system (group of society) to other systems, whose concepts of management do not coincide, they turn into generalized weapons, or means of waging war, in a broad sense; otherwise they can epitomize means of self-rule support in a different social system in case both systems do not feature any conceptual inconsistency between their means of management.
Economic theories for ‘clerks’ apply respectively to the third priority level of generalized arms; they are the ones that constitute the fourth priority of generalized means of management, namely, behavioural algorithms typical for large groups of entrepreneurs, politicians and their economic advisors, journalists, etc. Economic theories for ‘clerks’ can circulate in a society provided the latter warships some distorted notions concerning the way the top priority generalized means of management are believed to affect the life.
Rival and really operable economic theories for masters ensue from recognition of uncertainty in the opinions at the first and third priority levels as well as certain answers to arising questions in terms of which is true and which is glaring falsehood or misapprehension of the essentials.
The lack of opinion and ‘opinion pluralism’ regarding all the six priorities of generalized means of management have to be expatriated; otherwise none of the societies (including the USA) can avoid following the way of ancient Rome; all the neighbouring countries had no choice but to obey the victorious march of Roman legions, they were trembling at the Roman military might; nevertheless Rome went down before such means of war that had not been perceived by the Roman strategists and politicians as means of war at all.
“Commonplace” production goal is the satisfaction of individual wants. It is based on the public joint labour and exchange of products, which follow manufacturing and distribution. Well-being is a mutually complementary unity of manufacturing and distribution; however, that thought is still beyond most politicians and their economic advisors’ grasp.
Well-being is created or undermined by address instructions within the ‘vertical of power’ as well as, outside the ‘vertical of power’, by spontaneous market trade, which operates on the base of established rules, either codified or not.
The ground for trade on all occasions is inability to administer the exchange of goods by force of decrees; such an approach will neither work in manufacturing, nor in distribution of the end product among individual households, the ‘seeds’ the society sprouts from in the continuity of its generations.
Regardless of the particular set of public events in which the inability to handle the exchange of goods is observed, the primitive cause behind trade that creates the ‘market spontaneity’ is inability of single-core structures of management to cope with the huge and complete dataflow (to do with social and economic processes) in real time mode. As a result, the life of society is represented by a multi-core structure of management surrounded by the structureless society management on the basis of addressless data distribution.
Hence, the solution to some socio-economic problems implies the coordination of multi-core structured management and stuctureless social self-rule in the tideway of a unified strategy. Herein, one has to realize that structured management originates from stuctureless management as the profile of data transfer turns steady and people at large start treating them as some professional secular public institutions.
Those involved in self-rule of economic relations in a society would evaluate the improvement of such relations on the basis of such a criteria as the growth in their individual purchasing power. However, their estimations depend on which category the subjects identify themselves in market environment, so those estimations turn to be mutually exclusive. There is an increase in the quality of self-management in producing and consuming social systems.
· for a private entrepreneur (microlevel of manufacturing), this is the price growth for his products relative to the prices of products consumed by him for manufacturing purposes;
· for a consumer of end product (household consumption) this is the growth in his purchasing power: a drop in price for all the products relative to his incomes.
The task of macroeconomic management is a continuous arrangement of quality evaluation of a‘consumer-manufacturer’ macroeconomic self-regulation conflict, both in manufacturing and distribution. That requires to keep the purchasing power of the buyer and the manufacturer within the limits that let the dynamics of particular types of manufacturing at the regional level grow, which, in turn, affects the demographic dynamics, predetermined at 1st – 3rd priority level of generalized means of management in a subjective, ethics-based, voluntary way given the understanding of non-economic factors.
It is necessary because the majority of population is deprived (first and foremost by market competition) from a chance to move into better-of social groups. If a society is unable to reconcile such kind of conflict, it makes internal social conflicts more acute, which can lead to the downfall of the society.
Basically, there are two means of macroeconomic management:
· tax-and-subsidy policy, in hand of the statehood (and partly in hand of conglomerate concern directorates, within their jurisdiction: redistribution of concern’s financial resources among its businesses in a way that does not affect the aggregate profitability of the concern.)
· the management policy of the volume, distribution and discharging of irremunerable debts when borrowing loans at a rate, which is in hands of a supranational usurious mafia-style corporation, whose godfathers are of Jewish ethnic origin, and who usurped banking.
The latter represents the effect of application of the means of management of 1st – 3rd priorities to the global civilization. The Bible and The Talmud represent the doctrine of purchasing the world from fools and making them the slaves on the base of Jewish global usury monopoly, as the 4th – priority means of management; the majority of Jewish populace is good-minded like everybody else, they do not realize the sense of that global policy[1]; they are both biorobotic tools used by their masters in order to achieve the project goals, and at the same time, they are its first victims.
Correspondingly, a conflict between “statehood” and “the international corporation of racist usurers” may arise at any time. Such a conflict can be solved for the benefit of peoples in case the statehood is able to neutralize the activities of the global usury mafia in its home, foreign and global politics. That was put into practice in the USSR under the rule of J. V. Stalin and in the infancy of the Arab Caliphate
However, if the state delivers itself up to the global usury mafia, the solution of the conflict may be solved to the disfavour of the nations. This is what we can currently observe in the West. That is the very system that Russia has been being pushed into in the course of all the disturbances, revolutions and reconstructions, inspired by the globalists since the second half of the XIX century up to now.
Stimulation of a negative attitude to the state taxation policy and governmental subsidies in conjunction with the idea of SYSTEMS BANK usury and stock exchange speculation as natural and, therefore, inevitable types of economic activities reflects the global usury mafia’s protection of its production and distribution monopoly policy in such a society.
Any statehood that does not have or did not permeate through the nation a project alternative to the Biblical – Talmudic one of purchasing the whole world and enslavement of the people by means of racially based global usury is doomed to deliver itself up to the usury mafia and serve the goals of their masters either directly or indirectly.
German Hitlerism was not an alternative, but an imitation of the alternative, for it was essentially false in the 1st – 3rd priority sense. The same situation featured its inheritors in post-war period in Germany and other countries.
Correspondingly, social and political movements, Christian confessions (including Russian Orthodox Church), synagogue, rite-fanatic Moslems, who live in contempt of Koran Revelation, bourgeois-democratic, international-socialist (Marxist) and national-socialist parties are not the allies of the commonality and statehood in their fight against biblical-talmudic project, but the means of its implementation on the territory of a state.
That fact does not exclude temporarily co-operation of the statehood with any of them in order to weaken and annihilate the public enemies, making a cat’s paw out of other public enemies, in the tideway of its own, particular strategy, when own powers are not sufficient (that was the way of building socialism under the rule of J. V. Stalin). However, such a policy plunges to the 6th priority level, which will inevitably lead to collateral victims among the uncomprehending people.
Each nation, every multi-national society, where the alternative to the biblical-talmudic project has been expressed and articulated beyond the existing statehood, will generate the new statehood, which will protect the people from the biblical-talmudic enslavers the more efficiently the more conspicuous they will reject the ideology of the biblical-talmudic project and the more honest every single person be to himself and, consequently, before other people. In Russia the alternative to the biblical-talmudic project has already been declared (in particular, see: http://www.old.vodaspb.ru).
Any type of statehood that is going to lend a hand to a public initiative and will not pervert it, will be able to put up with anything, being backed by the Heavenly support of its peoples as well as by deadly civil discords among the enemies.
Correspondingly, the defence of their own country from smites of the masters of the biblical-talmudic project demand an efficient home policy, foreign policy and global policy from the statehood, which includes the self-consistent means of management-arms from 1st priority level up to 6th.
That is why the plan named “Typhoon”, which acquired some popularity with the ruling circles of Russia, and which suggests to strangle the usury activities with the help of 98% profit tax is notoriously inefficient. In particular, when it comes to macroeconomic control, it is notoriously inefficient because it does not imply control over the purchasing power of manufacturers, consumers of goods and services in sectors or regions in order to maintain the favourable demographic dynamics and ecological security of the society. Just banning or oppressing usury is not going to be sufficient if we want to make the society economically secure. So we cannot do without a clearly conceived presentation of the state policy in such areas as manufacturing and distribution of goods, lending and insurance (including the insurance against bankruptcy for private entrepreneurs); and we cannot do without passing the laws that will be in line with that policy, which will express such a policy and protect economic sphere from some moves, incompatible with it; without building up within the society a mechanisms of realization of the state taxation-and-subsidy politics, which will concern all the economic entities.
At that stage of the society self-rule problem consideration, the law is seen as a corpus of standard algorithms for solving problems of management at the acceptable management quality level. Correspondingly, the law-making activities to do with business and finance ought to be algorithmically rational towards the chosen concept of a socially secure mechanism of human life, which implies the generational continuity; it should have nothing to do with the construction of a ‘Babylon Tower’-style maze, where some selected private entrepreneurs, assisted by judges and supervised by prosecutor’s office officials, have a right to hunt on the incomes of the other private entrepreneurs, all the employees and the statehood, with no reflection upon the consequences of the greediness cherished in their circle, or who and how is going to clear up the consequences.
The economic theories for masters are determined by the morals, by a real ethical code, not a meretricious one.
Good-Will originates from the fact that each person is assumed to be the Vicar of God on the Earth. Respectively, the equality of human dignity of each person must be kept in all kinds of relations within the society. As no one is able to replace the humankind, the whole lot of professional skills and other personal distinguishing features do not portray his dignity; they are, so to speak, appropriate to him. That is why in a normal society every single person has to be equally respected both in everyday life and in this labour activity, faithfully supporting each other.
Ill-Will, BLUNTLY, ALLUSIVELY AND BY DEFAULT, assumes that human dignity depends number of people depending on that person, one way or another. The dependence is based on the individual, tribal, or corporate possession of the kinds of knowledge and skills that have not been acquitted by the others. In other words, human dignity is expressed in their belonging to a corporation or a tribe (kings, healers, warriors, merchants, craftsmen, peasants, untouchable etc.) in accordance with the essence of that collective body as a professional corporation. If the masters of the system consequently develop that doctrine, they will have to totally deny that dignity is an immanent attribute of numerous or inconsiderable groups of people and professional corporations.
Depending on the genuine morals of the reader he will either agree with the above distinction between good-will and ill-will, or will insist on an opposite definition, or will ride off on a side issue because of his own immorality, or will admit that good-will and ill-will possess some share of “righteousness” whatever the definition is.
Immoral people always have a chance to turn into a ‘conscious grass’ on the battlefield, which is seen as a reproductive biomass by the participants of the ‘cold war’, which has been being waged for the whole history of the modern global civilization (the war that sporadically transforms into fire-and-sward one); and the livestock numbers of the biomass – depending on the goals of the antagonistic parties – must be either exterminated or preserved to reproduce the future generations of people, which will be morally and ideologically different.
Morals are a blend of good-will, ill-will and immorality. Every individual person has a different mix composition, which leads to mutual misunderstanding and conflicts between individuals and social groups.
Human dignity means that the person continually gets rid of his ill-will; and his good-will shows in the beneficence, which originates from his sincere understanding of the Dispensation; such beneficence cannot come from lucre (including the self-seeking desire of the Paradise or the self-seeking fear of the Hell. The two types of lucre reflect the human disbelief in God.)
People create different types of ethics in accordance with the morals difference shown above, which leads to two incompatible types of politics and two irreconcilable classes of economic theories for masters:
· the theories that originate from good-will answer the question:
How shall we establish production and distribution in a society in a way that will foster the generation continuity as well as the perpetual stability and health of biocenosis (biosphere), that people would not overflow the ecological niche, that there would be neither hungry, nor homeless, people, those who would not have been given any deserving education or deprived from something due to the circumstances beyond their control?
This is the main issue of economic theory.
· the theories that originate from ill-will avoid giving answers to that question, or may give some false answers; and they are fussily sorting out the problem of ‘how many of those bastards’ they need and how to keep their bodies and souls together at a minimum subsistence level so that the ‘real people’ were always very well off.
By we mean the range of aggregate products, services and industrial outputs for each item of the range, in accordance with which one kind of products or services differs from the others.
Alongside the manufacturing spectrum some other kinds of spectrum can be used, such as needs spectrum, needs spectrum, consumption spectrum, etc.
The needs that the production and distribution in a society are supposed to meet, are conditioned by morals as such, and by cultural traditions, which have imprinted the morals of the past generations and the trend of morals changes for several generations.
Among the whole set of needs there are some, whose satisfaction causes direct or indirect damage to the consumers, to their human environment, to their descendants and the biosphere as a whole. There are some wants, satisfaction of which only obtain such a quality when the industrial output and the (individual and aggregate, regional, or in the society) demand rate exceed some critical values. The above needs generate the degradation-parasite spectrum of production and consumption.
There are the other wants, whose satisfaction does not cause the consequences mentioned above, at least, when the (personal and aggregate) consumption exceeds a certain minimum value, corresponding to the level of demographically sufficient production and consumption. Those needs represent a fraction of the demographically defined production and consumption spectrum.
The fundamental difference between the demographically defined spectrum and degradation-parasite one is the following:
· the demographically defined needs spectrum can be predicted in terms of range and volumes for several future decades to come; the accuracy and details of such a forecast are quite sufficient to prepare the productive forces of the society in advance for its guaranteed and total satisfaction .
This predictability is rooted in the differentiation and limitation of population group needs by such criteria as sex, age, household lifestyle, the demographic pyramid dynamics and cultural traditions, which express the adjustment of the population to living in local natural and geographical conditions. Herein, the publicly secure growth of the population forming the demographic pyramid, is limited by the biocenose stability in the areas populated by locals when it comes to succession of the spices of organisms forming the biocenoses, which imposes one more set of limitations on the demography determined needs spectrum.
· the degradation-parasite needs spectrum does not allow to predict the range, volumes or terms of the beginning precisely. This is one of the reasons why the society is unable to satisfy it under any circumstances.
Wants separation into the two mutually exclusive types of spectrum is not pure imagination, it is not an example of subjectivism or voluntarism; whenever the degradation-parasite spectrum needs are satisfied, it inevitably leads to a biological degradation of the nation and the environment, which in turn, causes the decline in the culture of the society. Degradation-parasite spectrum can be indicated by means of statistical analysis of such connections as ‘a piece of ‘wants Þ the consequences of production caused by the needs and the consequences of their satisfaction’.
From what we have said follows that:
· sociology is to constantly identify the degradation-parasite spectrum conformably to its changes in particular circumstances; and it has to develop a system of standards of consumption and production sufficiency all over the demographically dependent demand spectrum.
· the state is obliged to root out (by means of 1st – 6th priority management tools) the degradation-parasite demand spectrum up to its total disappearance, and it has to provide the guaranteed satisfaction of population needs all over the demographically dependent spectrum in the process of generation continuance.
Thus, system banking usury is not the only aspect of life that needs to be crashed and rooted out in order to normalize the life of the nation. However, neither ‘500 Days’ program (by G.A. Yavlinski &Co, which dates back to the perestroika époque), nor “Typhoon” project (designed in 2000), nor other ‘projects’ of economic ‘development’ of Russia say a single word about the whole complex.
Those problems had not been indicated or sorted out on time by the Academy of Science of the USSR. The contemporary Russian Academy of Science and the Institute of Transitional Economy Issues (headed by Y.T. Gaidar) are unable see these problems. Foreign researchers and politicians keep silence on that issue as well, whereas World Economic Forum in Davos and UNO are rather appropriate places to call a spade a spade; but there is nobody to do so, because ill-will has prevailed.
If we consider the economic life of a society in terms of the Quite General Management Theory, the demographically dependent demand spectrum represents a management target vector, and the degradation-parasite spectrum includes his own ‘noises’ of the production-and-consumption system, as well as external noise that prevents the management (or self-management) targets from being reached; as a result, the vector becomes a component of the vector of management error.
The vector of management error is a hierarchized list of targets to be reached by management. The targets are listed there in reverse order, in comparison with a traditional successive rejection of targets in case the complete target list cannot be put into practice. In other words, the most significant target is listed first, and the least significant one is listed last.
The vector of management error represents the ‘difference’ between the target vector and the vector of state, which gives a description of the factual circumstances. The vector of management error is an unbiased indicator. It is unresponsive to the attempts of the managers to make everything look better than it really is. The only way of getting rid of it is by enhancing the management quality, when the errors would be reduced to the tolerated values.
In financial terms, the vector of self-management error for a society looks like a price list for products and services consumed by people beyond their production activities and public administration sphere.
Therefore, in a society that, firstly, does not have any degradation-parasite needs owing to the dominance of good-will and, secondly, where the system of production and consumption self-management is performed in a practically flawless mode, the output supply spectrum is at such a level that the market prices diminish up to zero, so consumption becomes free (and keeping non-zero prices can cost the society more than giving the output away for free to those who need it, because it will imply some accounting costs).
The relationship between the supply level and the price, revealed by the common economic science ‘for clerks’ possesses the same features: prices fall as the supply grows, for the price level is the means of elimination of would-be consumers whose paying capacity is limited in case the demands exceed the possibilities of their satisfaction.
However, having disclosed that relationship, the science ‘for clerks’ seeks the ways of artificial stimulation of effectual demand in situations where there is a drop in prices, expecting demand to support the prices and the break-even performance, bolster manufacturing etc, along the cause-effect chains. That leads to product destruction when a crisis of ‘overproduction’ arises, to fashion cult, advertising campaigns and so on.
This kind of approach to the production and distribution matters is a consequence of the fact that the common economic science does not make a distinction between degradation-parasite and demographically defined needs spectrum; as a result, “flies’ are mixed with the ‘ointment’.
In a crowd-‘elite’ society, the ruling elite’s degradation-parasite needs spectrum has a top priority in the target vector, and the economic self-management system tunes to it (the economic self-management system is always tuned to a target vector, even if the targets have not been recognized or understood by the society). As a result, global natural resources are mindlessly destroyed in a race of RAPTIOUS consumption, whereas demographically defined needs of the majority have remained unsatisfied in numerous generations (we should remember that the consumer’s ‘paradise’ of the USA and ‘developed’ European countries is based on the system usury and price-based robbery of ‘underdeveloped’ countries, including the post-Stalinist USSR and Russia, and it was not created by the honest and good-will labour of the population of those countries).
Having agreed on the separation of the total set of needs into degradation-parasite and demography determined spectrum, and on the fact that the price list is identical to the self-management error vector of a production and consumption system, we can say that the task of the government concerning macroeconomic and microeconomic management is following:
· the state has to manage the cost-effectiveness threshold level for all kinds of commercial activities, supporting in such a way the break-even performance of particular producers, as the latter better satisfy the needs of the demographically defined spectrum, which will lead to the drop in prices for its composition.
· the state must prepare the labour force of the society to the guaranteed satisfaction of all the future demographically defined needs in advance; in could be done by direct state investments into education and bringing-up, into state-run industry and mixed ownership companies, or/and by creation of investment friendly environment for private investors in the corresponding branches and regions using tax and subvention policy means.
· the state must oppress and root out the degradation-parasite needs spectrum and the activities, both profit-bringing and non-profit, caused by it, using both economic and non-economic means of management of 1st – 6th priorities.
In the course of such way of understanding of socio-economic reality, the price list for goods and final consumption services will undoubtedly turn into the value of management error vector, which solves the conflict of self-management quality estimation in a production-consumption system, between a manufacturer and a consumer of this product, which we have mentioned in ‘Introduction to the Topic’.
On parity with the production differentiation that defines which branch a business belongs to, the microlevel of the production-and consumption system of a society is featured by the fact that the company’s management of internal exchange of goods in the course of technological process is nothing but the address orders and the address reports saying how the orders were executed.
That kind of management has some immanent limits of structure growth, beyond which it stops being efficient, and the structures generated by it come to self-destruction due to unavoidable errors made by the administrators.
Human wants, both individual and social (the whole society) cannot be satisfied (as the historic record shows) on the basis of the directive and address management of product exchange in households or community household, which generates an economic macrolevel that includes e plethora of specialized industries (branches). The macrolevel brings to life commerce, that is an uncontrollable directive and address exchange of products.
The early commerce was barter trade: they directly exchanged the goods produced by them for the goods produced by other people using a single-stage scheme «G1ÞG2» for satisfaction of their own needs of for using them in further production process.
Some of the variety of goods were easy to exchange, the others were difficult to exchange in case of direct barter trade, which slackened the exchange of goods at the macrolevel and suppressed the public production growth. As a result, easy-to exchange goods came to the front and turned into the indirect barter commodity in the double-stage scheme «G1ÞMÞG2» when the direct barter «G1ÞG2» was either hampered or impossible. The goods that proved to be easiest to exchange constituted the ‘money group’ of commodities to be used for barter trade purposes.
It is reasonable to assume that the transition of the society to the exchange of commodities at a macrolevel with the use of two-step scheme «G1ÞMÞG2» laid the foundation of financial institutions. Those financial institutions primarily provided an opportunity of autoregulation of the macrolevel exchange of commodities in the society.
Afterwards the adjustment of in the autoregulation mode turned manageable. As a result, the system of financial institutions became the means of indirect expedient management of the exchange of goods at th macrolevel, and the ‘spontaneity’ of the market of goods and services submitted to the ‘monetary charmers’ whose only motivation reduced to sustaining their ability to pay when dealing with commodity money, ‘D’, belonging to the money group. Once that professional sponging became supranational and corporative, the freedom of private enterprise and liberty of trade turned into false myths and obsessions.
However, those obsessions made most of the population mad, and the INDIVIDUAL dependence of a private entrepreneur on the dictate of administrative bodies, a slaveholder, a feudal or another type of the superior was replaced by not any less violent mass dependence on the monetary ‘spontaneity’. The corporation of usurers and moneychangers ‘pretended’ to be ordinary private entrepreneurs, who are not perceived by the muzzy audience as the slaveholders and the lords of the monetary ‘spontaneity’, which enslaved even its ‘charmers’, that is usurers and moneychangers.
Finance and credit system should intrinsically be the means of assembling of a variety of MICROECONOMIES (which produce goods and services of real consumer values) into a single, unified macroeconomics (i.e. a multi-sector system of production and consumption). Irrespective of the way it copes with macro-economic tasks, it has one more function, being a tool of distribution autoregulation in the society, when the goods supply spectrum[2] goes lower than the needs spectrum of the society, and the needs are not limited by the purchasing capacity.
The following two functions of the credit and financial system are significant for management. They can be:
· the means of macro-economy assembling from a number of micro-economies.
· the tool of distribution autoregulation, when the goods supply spectrum is not sufficient comparing to the free needs of the society.
As a mean of macro-economy assembling from a number of micro-economies[3] and a tool of MANAGEBLE distribution autoregulation, it must provide the disappearance of the deficiency of goods and services all over the demographically-defined needs spectrum and maintain the exchange of commodities in accordance with it.
The rest is either collateral (to the two above functions) consumer’s effects, or various distorted applications of credit-and-finance system accompanied by sponging on the human labour and on the biosphere.
The historical evidence: if a credit-and-finance system is unable to support production and distribution at a macrolevel in accordance with the destination, that means it is maliciously adjusted in a way allowing the degradation-parasite spectrum to suppress the demographically determined one. In that case a great number of small and big businesspeople, clerks, their economic advisors and journalists are the actuating mechanisms pushing the society to suicide, whereas the degraded rest will be enslaved to follow instructions of the behind-the-scenes managers of the Biblical-Talmudic project of enslaving the humankind.
That kind of behaviour of lots of people is mainly a consequence of their blind acceptance (with no reflection) of all the aspects of public theology (in the past) and social sciences, that is economics for ‘clerks’ and for the crowd (including Marxism) nowadays.
Not only does the public economic science ‘for clerks’ lack managerially significant notions to do with the real production and consumption (i.e. demographically defined and degradation-parasite spectrum), but it also lacks a number of managerially significant notions that describe the credit-and-finance system itself and its links with the exchange of commodities as such. Actually, that is just what makes the economic theories ‘for clerks’ inconsistent and, therefore, inapplicable to solving the macrolevel economic problems to receive the predetermined, ‘pre-ordered’, promised and guaranteed results.
The basic notion that makes the economic theories for masters to be consistent in metrological terms is the ‘price-list invariant’.
The ‘price-list invariant’ has always been defined in such a way, that in a barter trade system, where the goods are exchanged using a two-stage scheme «G1ÞMÞG2», there is such a commodity belonging to the money commodity group that possesses the following features:
· firstly, it is a sovereign participant of the natural exchange of goods in the barter trade process because it has some additional valuable features apart from the fact that it constantly acts as commodity money in two-stage schemes «G1ÞMÞG2»;
· secondly, the market prices of other goods for every single commodity-exchange deal are given in an equivalent amount of that commodity by common consent (as a result, the price of a standard unit of the invariant commodity calculated in the invariant amount is always equal to 1, which is behind the term ‘price-list invariant’. In other words, we always exchange an invariant to an invariant pro ratia 1/1.)
· In the days of ancient barter trade, according to the laws enacted by Hammurapi, the King of Babylon, the society considered the payments in grain and gold to be equal, there fore, they established them as the two equal price-list invariants. Later, in the crowd-and-‘elite’ society, the ruling elite on the basis of its degradation-parasite needs deprived grain from the right to function as a price-list invariant, and the civilization used the gold invariant for a long time.
In economic studies and calculations we can use any commodity type as the price-list invariant, including the commodities that do not belong to the established money group.
Economics does not need the notion ‘price-list invariant’ only in case if researchers do not know how to select it in a way that will let them use the invariant for solving the macrolevel management problems. They do not now about it because they serve the ‘elite’ wants and needs, which belong to the degradation-parasite spectrum.
Gold as an invariant was used as the stuff for means of payment production – coins and standard bullion. Due to that fact, the whole époque of circulation of gold and other precious monetary metals as means of payment (up to the beginning of the XXth century) represented the époque of natural barter using the scheme «G1ÞMÞG2».
The difference between means of payment and the price-list invariant is that whereas the mean of payment, being the measure of prices fro all commodities (like the price-list invariant), can possess no other commonly recognizable values except playing the intermediate part of commodity money in a two-step scheme of exchange «G1ÞMÞG2», or be used in a single-stage scheme «GÞMÞ», when it plays a role of means of accumulation of nominal paying capacity.
Any means of payment that does not have any value outside the sphere of money circulation, accompanying and supporting the exchange of commodities for production and consumer purposes and accepted in certain transactions, may be rejected in other transactions. However, despite the means of payment may have no other value except being the means of payment or means of accumulation of nominal paying capacity, it can still be recognized having such qualities by the majority of population for a long time.
Being the measure of prices of other goods, the price-list invariant, however, in a general case does not act as a price level basis for the rest of the prices, including rates of exchange (the relative prices of foreign money). That is why all the suggestions aimed at the revival of the gold standard come from the grave misapprehension of the fact that the possibilities of distribution are stipulated by its production.
‘An attempt to ‘galvanize’ the dead body of gold standard or even restore the circulation of gold are useless in the époque of economic well-being. In Spain, from 1492 to 1600, in the times of perfectly working circulation of gold, the prices for goods tripled annually. It happened because the production spectrum of other products per head remained approximately the same, whereas the amount of gold, including the gold in monetary circulation, loomed drastically due to the gold flow from America, whose robbery had just started.
That historic fact shows how the price of the gold invariant dropped in comparison with the other implicit invariant (grain), which the society did not recognize in that role; however, grain still defined the price levels and all the other relative prices. That takes us to the notion of the ‘price-list foundation.
The price-list foundation is a small group of goods, each of which has the following feature: a short-term perceivable price growth for such goods cause a perceivable growth in production cost figures of the most of other goods. The reasons of the production cost increase of other goods is the direct or indirect consumption of the products from that small group for production of other goods (all or most of them).
Of course, the production cost growth is accompanied by the market price growth. Herein, the price relations between various pairs of goods and the cost-effectiveness of particular sectors undergo changes, because the prices are not only determined by production costs, but also by distribution of always limited effectual demand all over the goods and services supply spectrum.
From what we said above follows that to make economic calculations, long-term economic analysis and forecasts and long-term plans of social and economic development comparable, we have to select a price-list invariant which belongs to its base for the time span in question.
Ordinary people, politicians and economists should remember a well-known definition from the school course of physics:
“Useful work performed by a system” = “efficiency coefficient” ´ “power consumption of the system”
However, we may be interested in ‘useful work’ performed by a system, which is not seen in a sense of ‘mechanical work’ (which is a physical term). In that case, ‘useful work’ and ‘useful effect’ satisfy the same equation, but their dimensions will be different from physical dimensions of mechanical work and energy in physics. In that case the efficiency quotient will not be dimensionless.
[efficiency] = [the unit of measurement of a useful effect] / [the name of the unit of measurement of incoming energy].
Like anything else, the production system of a society obeys the general physical law of energy conservation, a partial form of which is the efficiency coefficient equation.
The useful effect of the production system of a society is represented in a natural form as an end-consumption product manufacturing spectrum.
The words in italics mean that human needs are primary to pricing, whereas the labour theory of pricing (value) in its historically established form is metrologically inconsistent.
The reason of inconsistency of the labour theory of value, which the public economics has not been able to get rid of, is the fact that all the people seen as workers taking part in diversified production are mutually incommensurable. The progress of professional management sectors, processing of various data, including professional research and design work, led to the state when severity rate (man-hours) as the unit of measurement, or the units of rating of work load needed to gain useful effects, have lost their managerial value not only when we compare different sectors but even within individual sectors.
They used to be managerially valuable until manual labour of great numbers of people was the main basis of economic well-being , and, in the first place, of the ruling ‘elite’, which despised professional gainful activities, considered itself to be ‘free’ and embezzled the fruits of labour and the incomes of the employees enslaved by them.
People can be compared to each other only as the consumers in accordance with the demographically defined needs spectrum. That is why the ‘hour rate’ has the managerial value because it defines the paying capacity of the population, and in turn, its purchasing power as well as most of the consumption spectrum. However that indicator is useless when it comes to evaluation of the output performance.
Another indicator that has the managerial value is the ratio of electricity rate to hour rate in different sectors and regions in comparison with the demographically defined consumption spectrum[6].
The energy base of the price-list has permanently been present all through the span of the history of civilization; however it consists of a changeable composition of power sources, whose component weights are also prone to changes. All the history of the modern global civilization can be separated into two époques:
There was a transitional period that lasted for several decades, during which a transition from biogenic to technogenic power sources was made, when we could witness a superposition of both.
It follows from what was said above that the society of the Hammurapi period did not make a mistake choosing grain as a price-list invariant. At that time grain was the main source of biogenic, power both for people and draft-cattle. It was easily available for consumption grain amount that determined the upper limit that could not be exceeded by the contemporary production capacities with respect to the engineering capabilities of the time.
«energy backing standard» =
= ( S+K ) / «potential
of energy» (1)
· Although everything presented here was written in the tideway of a particular concept opposing ill-will (as we see it), nevertheless, the concept and glossary of economics for masters itself allows to use it for production and distribution management in line with the concept of ‘how many of those bastards’ do we need and how to keep their bodies and souls together at a minimum subsistence level so that the ‘real people’ were always very well off.
Global policy of creation of the Kingdom of Lord on the Earth will be implemented in Russia in accordance with the objective plan, given from Above. This is the policy of cleansing to free the Earth from everyone who opposes it.
If the stuff of the brochure does not seem to be full and detailed enough to you, you may find much more detailed materials on the website http://www.old.vodaspb.ru in ‘Books’ section.
The Internal Predictor of the USSR
[1] By global policy we mean heterogeneous activities targeted at executing purposes at the whole humankind level, irregardless of the fact whether such activity is a component of domestic foreign policy, or it is performed by the local or multinational mafia.
[2] Its range exceeds the production spectrum range, as the production spectrum also includes the possibilities to use some free goods (forests, beaches etc.) that are not produced by the society.
[3] Abstracting from culture that joins the whole society, we can point to another (except credit-and-finance system) means of assembling a macroeconomic system from a number of microeconomic subsets. It is the socially established system of metrology and standards, which is necessary to make the goods and services offered by different producers applicable.
[4] M. Kasyanov was right in his evaluation of the program by Mr G. Gref: ‘The mountain gave birth to a mouse. Luckily, not a cockroach.’ Hinting that there are cockroaches in the heads of the program authors he.
[5] Efficiency of the use of raw materials and parts in such technologies have to be taken into account when calculating the energy efficiency coefficient.
[6] Compare: One kWh cost is about 1cent in poor countries (including Russia), whereas in the USA and European countries it comes up to 10cents. The hour rate in Russian military-industrial complex sector is 60 Rubles (about US$2), in the USA in the same sectors it is $17 – $20, and in Japan - $35.
They are the parameters of tuning of the global system of robbing Russia and other poor countries. That is why Russia is robbed twice; firstly – when energy is exported (tariffs are the trade secret of Unified Energy System of Russia, which allows them to do double-entry bookkeeping), when there are POWER CUTS in the regions, and secondly – when importing the goods that were produced at high tariffs and high hour rates. Correspondingly, the export policy of UES is adverse to the interests of the peoples of Russia.
[7] 'Sir Joseph Stamp, the former president of the Bank of England, also warned against the power of bank establishment: «If you want to remain the bankers’ slaves and go on paying off the costs of your slavery, let them continue issuing money and rule the national loan’ (Ralph Epperson «The Invisible Hand. Introduction into History as a Conspiracy», SPb, 1999, p. 140).
[8] The very emergency cut-offs would have been a direct analogues of the ‘gold standard’ crash when building an energy backing of a monetary unit based on the electric power consumption tariffs.
[9] A year is a natural unit of measurement of the duration of manufacturing and consumption cycle, for cyclicity of seasons defines the cyclicity of manufacturing and other branches (not only agriculture); it also determines the ciclicity of consumption, nonproductive activity of the society. So, a year and its multiples are the most convenient rated durations of production cycles in a multiple production-and-consumption system.
[10] It must be noticed that the catastrophe potential – the nominal paying capacity, outgoing the turnover at the prices administered by the state – was created in the époque of N. S. Khrushchov – M.S. Gorbachov.
[11] Fraction 1/(S+K) — is a characteristic scaling factor which makes dimensionless all the nominal credit-and-finance indicators of diversified systems of production and consumption and their functionally-specified components. A theory of similarity of diversified systems of production and consumption is based on that scaling factor of dimensionless, which is used as a tool of correct comparison, analysis, forecast and planning of production and consumption activity at macro- and microlevels.
[12] Steady prices are an indirect step to indefinite value of energy standard of means of payment backing.
[13] Among such parties are KPRF, LDPR, ‘Yabloko’ ‘The Union of Right Forces’ and other, less known mobs.
[14] The main ecological problem is to define the maximum volume of production of technogenic energy that would not cause damage to the biosphere; technogenic energy distribution has to be restricted by the following:
· Power plants do not have to produce fuel decay products which are not natural for the circulation of matter in nature, (neither their quantity composition, nor quality emissions). Any kind of nuclear power stations is biospherically impermissible, because it can lead to changes of biosphere because of the decay products of nuclear fuels.
· technogenous, energoinformational flows in the areas where power is generated, transported and consumed should not distort the natural energy flows and their seasonal rhythm on a scale that could lead to climatic changes that cause biocenosis destruction.
[15]Nowadays, an artificially blown cult of G.V. Zhukov, who really was an outstanding on-land military leader of the XX century is designed to sink I. V. Stalin and his deeds into obscurity. I. V. Stalin coordinated battle line, rear, the whole home and foreign policy. He coordinated the whole politics of communism construction practically, not verbally, which makes him different from Trotsky and Khrushchev and the subsequent ‘leaders of world communism’ and ‘eurocommunism’in particular.
In that position – the position of the Supreme Coordinator of the Soviet Union, I. V. Stalin was irreplaceable for the whole span of history after 1917.
If we consider the activities of G.K.Zhukov beyond his military specialization, we will see that in the cold war, ignited by the wheeler-dealers of Biblical-Talmudic project after 1945, G.K.Zhukov was their tool to a great extent. In particular, he never rose a question of creation and application of the navy force of the state, and played a great part in Admiral Kouznetsov-bating. As a result, during the 30 years-long command of S.G. Gorshkov, the USSR navy looked powerful, but it was not, within the limits that were necessary to keep peace and social-economic development of the USSR. That illusory state, much deteriorated since then, was inherited by Russia.
The name of the document: | To Understanding of Macroeconomó of State and World |
The authors: | The Internal Predictor of the USSR |
Section: | In English |
Published: | January 13, 2005 |
permanent address: http://www.old.vodaspb.ru/english/files/Macroeconomy.html |
|
Download archives: |
A4 MS Word (52 kB) ,
A5 Word (53 kB) ,
A4 Rtf (48 kB) , A5 Rtf (48 kB) , PDF (136 kB) |
Begin | Î ÊÎÁ âêðàòöå | Êëþ÷è ê ðàçóìåíèþ | Âñå êíèãè | Òåêóùàÿ àíàëèòèêà | Ïåäàãîãèêà | In English | Ìàòåðèàëû èç ÑÌÈ | Ïðîåêòû | Èçäàòåëüñòâî | Ññûëêè | Êîíòàêòû | |