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.
When the industry flow diagram is represented by a 2-block system of households on the right and all other industries on the left, the following results:
The arrows from left to right labeled A, B, C, etc., denote flow of economic value from the industries in the left hand block to the industry in the right hand block called ‘households’. These may be thought of as the monthly consumer flows of the following commodities. A – alcoholic beverages, B – beef, C – coffee, . . . . , U – unknown, etc. . .
The problem which a theoretical economist faces is that the consumer preferences of any household is not easily predictable and the technical coefficients of any one household tend to be a nonlinear, very complex, and variable function of income, prices, etc.
Computer information derived from the use of the universal product code in conjuction with credit-card purchase as an individual household identifier could change this state of affairs, but the U.P.C. method is not yet available on a national or even a significant regional scale. To compensate for this data deficiency, an alternate indirect approach of analysis has been adopted known as economic shock testing. This method, widely used in the aircraft manufacturing industry, develops an aggregate statistical sort of data.
Applied to economics, this means that all of the households in one region or in the whole nation are studied as a group or class rather than individually, and the mass behavior rather than the individual behavior is used to discover useful estimates of the technical coefficients governing the economic structure of the hypothetical single-household industry.
Notice in the industry flow diagram that the values for the flows A, B, C, etc. are accessible to measurement in terms of selling prices and total sales of commodities.
One method of evaluating the technical coefficients of the household industry depends upon shocking the prices of a commodity and noting the changes in the sales of all of the commodities.
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 take 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), communication, 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 economy (by shaking the plum tree).
Introduction to the Theory of Economic Shock Testing
Let the prices and total sales of commodities be given and symbolized as follows:
Commodities Price Function Total Sales
alcoholic beverages A A
beef B B
coffee C C
gasoline G G
sugar S S
tobacco T T
unknown balance U U
Let us assume a simple economic model in which the total number of important (staple) commodities are represented as beef, gasoline, and an aggregate of all other staple commodities which we will call the hypothetical miscellaneous staple commodity ‘M’ (e.g., M is an aggregate of C, S, T, U, etc.).
Example of Shock Testing
Assume that the total sales, P, of petroleum products can be described by the linear function of the quantities B, G, and M, which are functions of the prices of those respective commodities.
P = aPG B + aPG G + aPM M
Then where B, G, and M are functions of the prices of beef, gasoline, and miscellaneous, respectively, and aPB, aPG, and aPM are constant coefficients defining the amount by which each of the functions B, G, and M affect the sales, P, of petroleum products. We are assuming that B, G, and M are variables independent of each other.
If the availability or price of gasoline is suddenly changed, then G must be replaced by G + G. This causes a change in the petroleum sales from P to P + P. Also we will assume that B and M remain constant when G changes to G + G.
(P + P) = aPB B + aPG (G + G) + aPMM.
Expanding upon this expression, we get
P + P = aPB B + aPG G + aPG G + aPM M
and subtracting the original value of P we get for the change in P
Change in P = P = aPG G
Dividing by G we get
aPG = P / G .
This is a rate of change in P due only to an isolated change in G, G.
In general, ajk is the partial rate of change in the sales effect j due to a change in the causal price function of commodity k. If the interval of time were infinitesimal, this expression would be reduced to the definition of the total differential of a function, P.
When the price of gasoline is shocked, all of the coefficients with round G (2G) in the denominator are evaluated at the same time. If B, G, and M were independent, and sufficient for description of the economy, then three shock tests would be necessary to evaluate the system.
There are other factors which may be represented the same way.
For example, the tendency of a docile sub-nation to withdraw under economic pressure may be given by
where G is the price of gasoline, WP is the dollars spent per unit time (referenced to say 1939) for war production during ‘peace’ time, etc. These quantities are presented to a computer in matrix format as follows:
and X1 = G Y1 = P – KP
X2 = B Y2 = F – KF
X3 = etc. Y3 = etc.
Finally, inverting this matrix, i.e., solving for the Xk terms of the Yj, we get, say,
[bkj] [Yj ] = [Xk] .
This is the result into which we substitute to get that set of conditions of prices of commodities, bad news on TV, etc., which will deliver a collapse of public morale ripe for take over.
Once the economic price and sales coefficients ajk and bkj are determined, they may be translated into the technical supply and demand coefficients gjk, Cjk, and 1/Ljk.
Shock testing of a given commodity is then repeated to get the time rate of change of these technical coefficients.
Introduction to Economic Amplifiers
Economic amplifiers are the active components of economic engineering. The basic characteristic of any amplifier (mechanical, electrical, or economic) is that it receives an input control signal and delivers energy from an independent energy source to a specified output terminal in a predictable relationship to that input control signal.
The simplest form of an economic amplifier is a device called advertising.
If a person is spoken to by a T.V. advertiser as if he were a twelve-year-old, then, due to suggestibility, he will, with a certain probability, respond or react to that suggestion with the uncritical response of a twelve-year-old and will reach into his economic reservoir and deliver its energy to but that product on impulse when he passes it in the store.
An economic amplifier may have several inputs and output. Its response might be instantaneous or delayed. Its circuit symbol might be a rotary switch if its options are exclusive, qualitative, “go” or “no-go”, or it might have its parametric input/output relationships specified by a matrix with internal energy sources represented.
Whatever its form might be, its purpose is to govern the flow of energy from a source to an output sink in direct relationship to an input control signal. For this reason, it is called an active circuit element or component.
Economic Amplifiers fall into classes called strategies, and, in comparison with electronic amplifiers, the specific internal functions of an economic amplifier are called logistical instead of electrical.
Therefore, economic amplifiers not only deliver power gain but also, in effect, are used to cause changes in the economic circuitry.
In the design of an economic amplifier we must have some idea of at least five functions, which are:
- the available input signals
- the desired output-control objectives,
- the strategic objective,
- the available economic power sources,
- the logistical options.
The process of defining and evaluating these factors and incorporating the economic amplifier into an economic system has been popularly called game theory.
The design of an economic amplifier begins with a specification of the power level of the output, which can range from personal to national. The second condition is accuracy of response, i.e., how accurately the output action is a function of the input commands. High gain combined with strong feedback helps to deliver the required precision.
Most of the error will be in the input data signal. Personal input data tends to be specified, while national input data tends to be statistical.
Short List of Inputs
Questions to be answered:
General sources of information:
- telephone taps
- analysis of garbage
- behavior of children in school
Standard of living by:
- telephone – itemized record of calls
- family – marriage certificates, birth certificates, etc.
- friends, associates, etc.
- memberships in organizations
- political affiliation
The Personal Paper Trail
Personal buying habits, i.e., personal consumer preferences:
- checking accounts
- credit-card purchases
- “tagged” credit-card purchases – the credit-card purchase of products bearing the U.P.C. (Universal Product Code)
- checking accounts
- savings accounts
- real estate
- automobile, etc.
- safety deposit at bank
- stock market
- enemies (see – legal)
Government sources (ploys)*:
- Social Security
- U.S.D.A. surplus food
* Principle of this ploy — the citizen will almost always make the collection of information easy if he can operate on the “free sandwich principle” of “eat now, and pay later.”
Government sources (via intimidation):
- Internal Revenue Service
Other government sources — surveillance of U.S. mail.
Habit Patterns — Programming
Strengths and weaknesses:
- activities (sports, hobbies, etc.)
- see “legal” (fear, anger, etc. — crime record)
- hospital records (drug sensitivities, reaction to pain, etc.)
- psychiatric records (fears, angers, disgusts, adaptability, reactions to stimuli, violence, suggestibility or hypnosis, pain, pleasure, love, and sex)
Methods of coping — of adaptability — behavior:
- consumption of alcohol
- consumption of drugs
- religious factors influencing behavior
- other methods of escaping from reality
Payment modus operandi (MO) — pay on time, etc.:
- payment of telephone bills
- energy purchases
- water purchases
- repayment of loans
- house payments
- automobile payments
- payments on credit cards
Legal inputs — behavioral control (Excuses for investigation, search, arrest, or employment of force to modify behavior)
- court records
- police records — NCIC
- driving record
- reports made to police
- insurance information
- anti-establishment acquaintances
- National Input Information
Business sources (via I.R.S., etc):
- prices of commodities
- investments in
- production tools and machinery
- buildings and improvements
- the stock market
Banks and credit bureaus:
- credit information
- payment information
- polls and surveys
- telephone records
- energy and utility purchases
Short List of Outputs
Outputs — create controlled situations — manipulation of the economy, hence society — control by control of compensation and income.
- allocates opportunities.
- destroys opportunities.
- controls the economic environment.
- controls the availability of raw materials.
- controls capital.
- controls bank rates.
- controls the inflation of the currency.
- controls the possession of property.
- controls industrial capacity.
- controls manufacturing.
- controls the availability of goods (commodities).
- controls the prices of commodities.
- controls services, the labor force, etc.
- controls payments to government officials.
- controls the legal functions.
- controls the personal data files — uncorrectable by the party slandered.
- controls advertising.
- controls media contact.
- controls material available for T.V. viewing
- disengages attention from real issues.
- engages emotions.
- creates disorder, chaos, and insanity.
- controls design of more probing tax forms.
- controls surveillance.
- controls the storage of information.
- develops psychological analyses and profiles of individuals.
- controls legal functions [repeat of 15]
- controls sociological factors.
- controls health options.
- preys on weakness.
- cripples strengths.
- leaches wealth and substance.
Table of Strategies
– Do this: – To get this:
– Keep the public ignorant – Less public organization
– Maintain access to control – Required reaction to outputs (prices, points for feedback sales)
– Create preoccupation – Lower defenses
– Attack the family unit – Control of the education of the young
– Give less cash and more credit – More self-indulgence and more data and doles
– Attack the privacy – Destroy faith in this sort of of the church government
– Social conformity – Computer programming simplicity
– Minimize the tax protest – Maximum economic data, minimum enforcement problems
– Stabilize the consent – Simplicity coefficients
– Tighten control of variables – Simpler computer input data — greater predictability
– Establish boundary – Problem simplicity / solutions of conditions differential and difference equations
– Proper timing – Less data shift and blurring
– Maximize control – Minimum resistance to control
– Collapse of currency – Destroy the faith of the American people in each other.
Diversion, the Primary Strategy
Experience has prevent that the simplest method of securing a silent weapon and gaining control of the public is to keep the public undisciplined and ignorant of the basic system principles on the one hand, while keeping them confused, disorganized, and distracted with matters of no real importance on the other hand.
This is achieved by:
- disengaging their minds; sabotaging their mental activities; providing a low-quality program of public education in mathematics, logic, systems design and economics; and discouraging technical creativity.
- engaging their emotions, increasing their self-indulgence and their indulgence in emotional and physical activities, by:
- unrelenting emotional affrontations and attacks (mental and emotional rape) by way of constant barrage of sex, violence, and wars in the media – especially the T.V. and the newspapers.
- giving them what they desire – in excess – “junk food for thought” – and depriving them of what they really need.
- rewriting history and law and subjecting the public to the deviant creation, thus being able to shift their thinking from personal needs to highly fabricated outside priorities.
These preclude their interest in and discovery of the silent weapons of social automation technology.
The general rule is that there is a profit in confusion; the more confusion, the more profit. Therefore, the best approach is to create problems and then offer solutions.
Media: Keep the adult public attention diverted away from the real social issues, and captivated by matters of no real importance.
Schools: Keep the young public ignorant of real mathematics, real economics, real law, and real history.
Entertainment: Keep the public entertainment below a sixth-grade level.
Work: Keep the public busy, busy, busy, with no time to think; back on the farm with the other animals.
Consent, the Primary Victory
A silent weapon system operates upon data obtained from a docile public by legal (but not always lawful) force. Much information is made available to silent weapon systems programmers through the Internal Revenue Service. (See Studies in the Structure of the American Economy for an I.R.S. source list.)
This information consists of the enforced delivery of well-organized data contained in federal and state tax forms, collected, assembled, and submitted by slave labor provided by taxpayers and employers.
Furthermore, the number of such forms submitted to the I.R.S. is a useful indicator of public consent, an important factor in strategic decision making. Other data sources are given in the Short List of Inputs.
Consent Coefficients – numerical feedback indicating victory status. Psychological basis: When the government is able to collect tax and seize private property without just compensation, it is an indication that the public is ripe for surrender and is consenting to enslavement and legal encroachment. A good and easily quantified indicator of harvest time is the number of public citizens who pay income tax despite an obvious lack of reciprocal or honest service from the government.
Amplification Energy Sources
The next step in the process of designing an economic amplifier is discovering the energy sources. The energy sources which support any primitive economic system are, of course, a supply of raw materials, and the consent of the people to labor and consequently assume a certain rank, position, level, or class in the social structure, i.e., to provide labor at various levels in the pecking order.
Each class, in guaranteeing its own level of income, controls the class immediately below it, hence preserves the class structure. This provides stability and security, but also government from the top.
As time goes on and communication and education improve, the lower-class elements of the social labor structure become knowledgeable and envious of the good things that the upper-class members have. They also begin to attain a knowledge of energy systems and the ability to enforce their rise through the class structure.
This threatens the sovereignty of the elite.
If this rise of the lower classes can be postponed long enough, the elite can achieve energy dominance, and labor by consent no longer will hold a position of an essential energy source.
Until such energy dominance is absolutely established, the consent of people to labor and let others handle their affairs must be taken into consideration, since failure to do so could cause the people to interfere in the final transfer of energy sources to the control of the elite.
It is essential to recognize that at this time, public consent is still an essential key to the release of energy in the process of economic amplification.
Therefore, consent as an energy release mechanism will now be considered.
The successful application of a strategy requires a careful study of inputs, outputs, the strategy connecting the inputs and the outputs, and the available energy sources to fuel the strategy. This study is called logistics.
A logistical problem is studied at the elementary level first, and then levels of greater complexity are studied as a synthesis of elementary factors.
This means that a given system is analyzed, i.e., broken down into its subsystems, and these in turn are analyzed, until by this process, one arrives at the logistical “atom,” the individual.
This is where the process of synthesis propery begins, at the time of birth of the individual.
The Artificial Womb
From the time a person leaves its mother’s womb, its every effort is directed towards building, maintaining, and withdrawing into artificial wombs, various sorts of substitute protective devices or shells.
The objective of these artificial wombs is to provide a stable environment for both stable and unstable activity; to provide a shelter for the evolutionary processes of growth and maturity – i.e., survival; to provide security for freedom and to provide defensive protection for offensive activity.
This is equally true of both the general public and the elite. However, there is a definite difference in the way each of these classes go about the solution of problems.
The Political Structure of a Nation – Dependency
The primary reason why the individual citizens of a country create a political structure is a subconscious wish or desire to perpetuate their own dependency relationship of childhood. Simply put, they want a human god to eliminate all risk from their life, pat them on the head, kiss their bruises, put a chicken on every dinner table, clothe their bodies, tuck them into bed at night, and tell them that everything will be alright when they wake up in the morning.
This public demand is incredible, so the human god, the politician, meets incredibility with incredibility by promising the world and delivering nothing. So who is the bigger liar? the public? or the “godfather”?
This public behavior is surrender born of fear, laziness, and expediency. It is the basis of the welfare state as a strategic weapon, useful against a disgusting public.
Most people want to be able to subdue and/or kill other human beings which disturb their daily lives, but they do not want to have to cope with the moral and religious issues which such an overt act on their part might raise. Therefore, they assign the dirty work to others (including their own children) so as to keep the blood off their hands. They rave about the humane treatment of animals and then sit down to a delicious hamburger from a whitewashed slaughterhouse down the street and out of sight. But even more hypocritical, they pay taxes to finance a professional association of hit men collectively called politicians, and then complain about corruption in government.
Again, most people want to be free to do the things (to explore, etc.) but they are afraid to fail.
The fear of failure is manifested in irresponsibility, and especially in delegating those personal responsibilities to others where success is uncertain or carries possible or created liabilities (law) which the person is not prepared to accept. They want authority (root word – “author”), but they will not accept responsibility or liability. So they hire politicians to face reality for them.
The people hire the politicians so that the people can:
- obtain security without managing it.
obtain action without thinking about it.
inflict theft, injury, and death upon others without having to contemplate either life or death.
avoid responsibility for their own intentions.
obtain the benefits of reality and science without exerting themselves in the discipline of facing or learning either of these things.
They give the politicians the power to create and manage a war machine to:
- provide for the survival of the nation/womb.
prevent encroachment of anything upon the nation/womb.
destroy the enemy who threatens the nation/womb.
destroy those citizens of their own country who do not conform for the sake of stability of the nation/womb.
Politicians hold many quasi-military jobs, the lowest being the police which are soldiers, the attorneys and C.P.A.s next who are spies and saboteurs (licensed), and the judges who shout orders and run the closed union military shop for whatever the market will bear. The generals are industrialists. The “presidential” level of commander-in-chief is shared by the international bankers. The people know that they have created this farce and financed it with their own taxes (consent), but they would rather knuckle under than be the hypocrite.
Thus, a nation becomes divided into two very distinct parts, a docile sub-nation [great silent majority] and a political sub-nation. The political sub-nation remains attached to the docile sub-nation, tolerates it, and leaches its substance until it grows strong enough to detach itself and then devour its parent.
In order to make meaningful computerized economic decisions about war, the primary economic flywheel, it is necessary to assign concrete logistical values to each element of the war structure – personnel and material alike.
This process begins with a clear and candid description of the subsystems of such a structure.
The Draft (As military service)
Few efforts of human behavior modification are more remarkable or more effective than that of the socio-military institution known as the draft. A primary purpose of a draft or other such institution is to instill, by intimidation, in the young males of a society the uncritical conviction that the government is omnipotent. He is soon taught that a prayer is slow to reverse what a bullet can do in an instant. Thus, a man trained in a religious environment for eighteen years of his life can, by this instrument of the government, be broken down, be purged of his fantasies and delusions in a matter of mere months. Once that conviction is instilled, all else becomes easy to instill.
Even more interesting is the process by which a young man’s parents, who purportedly love him, can be induced to send him off to war to his death. Although the scope of this work will not allow this matter to be expanded in full detail, nevertheless, a coarse overview will be possible and can serve to reveal those factors which must be included in some numerical form in a computer analysis of social and war systems.
We begin with a tentative definition of the draft.
The draft (selective service, etc.) is an institution of compulsory collective sacrifice and slavery, devised by the middle-aged and elderly for the purpose of pressing the young into doing the public dirty work. It further serves to make the youth as guilty as the elders, thus making criticism of the elders by the youth less likely (Generational Stabilizer). It is marketed and and sold to the public under the label of “patriotic = national” service.
Once a candid economic definition of the draft is achieved, that definition is used to outline the boundaries of a structure called a Human Value System, which in turn is translated into the terms of game theory. The value of such a slave laborer is given in a Table of Human Values, a table broken down into categories by intellect, experience, post-service job demand, etc.
Some of these categories are ordinary and can be tentatively evaluated in terms of the value of certain jobs for which a known fee exists. Some jobs are harder to value because they are unique to the demands of social subversion, for an extreme example: the value of a mother’s instruction to her daughter, causing that daughter to put certain behavioral demands upon a future husband ten or fifteen years hence; thus, by suppressing his resistance to a perversion of a government, making it easier for a banking cartel to buy the State of New York in, say, twenty years.
Such a problem leans heavily upon the observations and data of wartime espionage and many types of psychological testing. But crude mathematical models (algorithms, etc.) can be devised, if not to predict, at least to predeterminate these events with maximum certainty. What does not exist by natural cooperation is thus enhanced by calculated compulsion. Human beings are machines, levers which may be grasped and turned, and there is little real difference between automating a society and automating a shoe factory.
These derived values are variable. (It is necessary to use a current Table of Human Values for computer analysis.) These values are given in true measure rather than U.S. dollars, since the latter is unstable, being presently inflated beyond the production of national goods and services so as to give the economy a false kinetic energy (“paper” inductance).
The silver value is stable, it being possible to buy the same amount with a gram of silver today as it could be bought in 1920. Human value measured in silver units changes slightly due to changes in production technology.
As in every social system approach, stability is achieved only by understanding and accounting for human nature (action/reaction patterns). A failure to do so can be, and usually is, disastrous.
As in other human social schemes, one form or another of intimidation (or incentive) is essential to the success of the draft. Physical principles of action and reaction must be applied to both internal and external subsystems.
To secure the draft, individual brainwashing/programming and both the family unit and the peer group must be engaged and brought under control.
Factor II – Father
The man of the household must be housebroken to ensure that junior will grow up with the right social training and attitudes. The advertising media, etc., are engaged to see to it that father-to-be is pussy-whipped before or by the time he is married. He is taught that he either conforms to the social notch cut out for him or his sex life will be hobbled and his tender companionship will be zero. He is made to see that women demand security more than logical, principled, or honorable behavior.
By the time his son must go to war, father (with jelly for a backbone) will slam a gun into junior’s hand before father will risk the censure of his peers, or make a hypocrite of himself by crossing the investment he has in his own personal opinion or self-esteem. Junior will go to war or father will be embarrassed. So junior will go to war, the true purpose not withstanding.
Factor III – Mother
The female element of human society is ruled by emotion first and logic second. In the battle between logic and imagination, imagination always wins, fantasy prevails, maternal instinct dominates so that the child comes first and the future comes second. A woman with a newborn baby is too starry-eyed to see a wealthy man’s cannon fodder or a cheap source of slave labor. A woman must, however, be conditioned to accept the transition to “reality” when it comes, or sooner.
As the transition becomes more difficult to manage, the family unit must be carefully disintegrated, and state-controlled public education and state-operated child-care centers must be become more common and legally enforced so as to begin the detachment of the child from the mother and father at an earlier age. Inoculation of behavioral drugs [Ritalin] can speed the transition for the child (mandatory). Caution: A woman’s impulsive anger can override her fear. An irate woman’s power must never be underestimated, and her power over a pussy-whipped husband must likewise never be underestimated. It got women the vote in 1920.
Factor IV – Junior
The emotional pressure for self-preservation during the time of war and the self-serving attitude of the common herd that have an option to avoid the battlefield – if junior can be persuaded to go – is all of the pressure finally necessary to propel Johnny off to war. Their quiet blackmailings of him are the threats: “No sacrifice, no friends; no glory, no girlfriends.”
Factor V – Sister
And what about junior’s sister? She is given all the good things of life by her father, and taught to expect the same from her future husband regardless of the price.
Factor VI – Cattle
Those who will not use their brains are no better off than those who have no brains, and so this mindless school of jelly-fish, father, mother, son, and daughter, become useful beasts of burden or trainers of the same.
This concludes what is available of this document.