MR. ROTHSCHILD'S ENERGY DISCOVERY
What Mr. Rothschild had discovered was
the basic principle of power, influence, and control over people as applied
to economics. That principle is "when you assume the appearance of
power, people soon give it to you."
Mr. Rothschild had discovered that
currency or deposit loan accounts had the required appearance of power that
could be used to induce people (inductance, with people corresponding to a
magnetic field) into surrendering their real wealth in exchang e for a
promise of greater wealth (instead of real compensation). They would put up
real collateral in exchange for a loan of promissory notes. Mr. Rothschild
found that he could issue more notes than he had backing for, so long as he
had someone's stock of gold as a persuader to show his customers.
Mr. Rothschild loaned his promissory
notes to individual and to governments. These would create overconfidence.
Then he would make money scarce, tighten control of the system, and collect
the collateral through the obligation of contracts. The cycl e was then
repeated. These pressures could be used to ignite a war. Then he would
control the availability of currency to determine who would win the war. That
government which agreed to give him control of its economic system got his
support.
Collection of debts was guaranteed by
economic aid to the enemy of the debtor. The profit derived from this
economic methodology mad Mr. Rothschild all the more able to expand his
wealth. He found that the public greed would allow currency to be pr inted by
government order beyond the limits (inflation) of backing in precious metal
or the production of goods and services.
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APPARENT CAPITAL AS "PAPER" INDUCTOR
In this structure, credit, presented as a
pure element called "currency," has the appearance of capital, but
is in effect negative capital. Hence, it has the appearance of service, but
is in fact, indebtedness or debt. It is therefore an economic indu ctance
instead of an economic capacitance, and if balanced in no other way, will be
balanced by the negation of population (war, genocide). The total goods and
services represent real capital called the gross national product, and
currency may be printed up to this level and still represent economic capacitance;
but currency printed beyond this level is subtractive, represents the
introduction of economic inductance, and constitutes notes of indebtedness.
War is therefore the balancing of the
system by killing the true creditors (the public which we have taught to
exchange true value for inflated currency) and falling back on whatever is
left of the resources of nature and regeneration of those reso urces.
Mr. Rothschild had discovered that
currency gave him the power to rearrange the economic structure to his own
advantage, to shift economic inductance to those economic positions which
would encourage the greatest economic instability and oscillation.
The final key to economic control had to
wait until there was sufficient data and high-speed computing equipment to
keep close watch on the economic oscillations created by price shocking and
excess paper energy credits - paper inductance/inflation .
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GENERAL ENERGY CONCEPTS
In the study of energy systems, there
always appears three elementary concepts. These are potential energy, kinetic
energy, and energy dissipation. And corresponding to these concepts, there
are three idealized, essentially pure physical counterparts called passive
components.
(1) In the science of physical mechanics, the phenomenon of potential energy is
associated with a physical property called elasticity or stiffness, and can
be represented by a stretched spring. In electronic science, potential energy
is stored in a capacitor instead of a spring. This property is called
capacitance instead of elasticity or stiffness.
(2) In the science of physical
mechanics, the
phenomenon of kinetic energy is associated with a physical property called
inertia or mass, and can be represented by a mass or a flywheel in motion. In
electronic science, kinetic energy is stored in an inductor (in a magnetic
field) instead of a mass. This property is called inductance instead of
inertia.
(3)In the science of physical
mechanics, the
phenomenon of energy dissipation is associated with a physical property
called friction or resistance, and can be represented by a dashpot or other
device which converts energy into heat. In electronic science, dissipation of
energy is performed by an element called either a resistor or a conductor, the
term "resistor" being the one generally used to describe a more
ideal device (e.g., wire) employed to convey electronic energy efficie ntly
from one location to another. The property of a resistance or conductor is
measured as either resistance or conductance reciprocals.
In economics these three energy concepts
are associated with:
Economic Capacitance - Capital (money, stock/inventory, investments in buildings and durables, etc.) Economic Conductance - Goods (production flow coefficients) Economic Inductance - Services (the influence of the population of industry on output)
All of the mathematical theory developed
in the study of one energy system (e.g., mechanics, electronics, etc.) can be
immediately applied in the study of any other energy system (e.g.,
economics).
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BREAKTHROUGH
The aviation field provided the greatest
evolution in economic engineering by way of the mathematical theory of shock
testing. In this process, a projectile is fired from an airframe on the
ground and the impulse of the recoil is monitored by vibratio n transducers
connected to the airframe and wired to chart recorders.
By studying the echoes or reflections of
the recoil impulse in the airframe, it is possible to discover critical
vibrations in the structure of the airframe which either vibrations of the
engine or aeolian vibrations of the wings, or a combination of the two, might
reinforce resulting in a resonant self-destruction of the airframe in flight
as an aircraft. From the standpoint of engineering, this means that the
strengths and weakne sses of the structure of the airframe in terms of
vibrational energy can be discovered and manipulated.
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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 mak e 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 t o 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 s tudy 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
op ening 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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ECONOMIC SHOCK TESTING
In recent times, the application of Operations Research to the study of
the public economy has been obvious for anyone who understands the principles
of shock testing.
In the shock testing of an aircraft
airframe, the recoil impulse of firing a gun mounted on that airframe causes
shock waves in that structure which tell aviation engineers the conditions
under which some parts of the airplane or the whole airplane or its wings
will start to vibrate or flutter like a guitar string, a flute reed, or a
tuning fork, and disintegrate or fall apart in flight.
Economic engineers achieve the same
result in studying the behavior of the economy and the consumer public by
carefully selecting a staple commodity such as beef, coffee, gasoline, or
sugar, and then causing a sudden change or shock in its price or
availability, thus kicking everybody's budget and buying habits out of shape.
They then observe the shock waves which
result by monitoring the changes in advertising, prices, and sales of that
and other commodities.
The objective of such studies is to
acquire the know-how to set the public economy into a predictable state of
motion or change, even a controlled self-destructive state of motion which
will convince the public that certain "expert" people should t ake
control of the money system and reestablish security (rather than liberty and
justice) for all. When the subject citizens are rendered unable to control
their financial affairs, they, of course, become totally enslaved, a source
of cheap labor.
Not only the prices of commodities, but
also the availability of labor can be used as the means of shock testing.
Labor strikes deliver excellent tests shocks to an economy, especially in the
critical service areas of trucking (transportation), com munication, public
utilities (energy, water, garbage collection), etc.
By shock testing, it is found that there
is a direct relationship between the availability of money flowing in an
economy and the real psychological outlook and response of masses of people
dependent upon that availability.
For example, there is a measurable
quantitative relationship between the price of gasoline and the probability
that a person would experience a headache, feel a need to watch a violent
movie, smoke a cigarette, or go to a tavern for a mug of beer.
It is most interesting that, by observing
and measuring the economic models by which the public tries to run from their
problems and escape from reality, and by applying the mathematical theory of
Operations Research, it is possible to program computers to predict the most
probable combination of created events (shocks) which will bring about a
complete control and subjugation of the public through a subversion of the
public econo my (by shaking the plum tree)...
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