It is now three years later. Much has happened—or has it? Stressful times are continuing. The visitor and Bill McLean left leaving me alone with my report and comments. What are the facts? What is truth? Is the money system rapidly approaching the end? Is the economic prosperity related to and dependant upon the continuation of large scale wars? Let us now review both the predictions of the report, as well as the events since the report. Have there been economic recessions within industrial societies? The answer is no. Has there been universal world peace within the world? The answer is no. Is there a connection between war and prosperity? The answer is yes. Why is it not possible for industrial nations to find social harmony and peace in highly industrialized economies?
When the economic principles are reviewed, it is discovered that the relationships among production, inventory and consumption are closely connected. That is, as long as inventories are scarce, then money-flow, consumer consumption and employment are smooth and without conflict. The social problems begin when inventories approach full capacity and can not be lowered by consumer purchases. As a result, unemployment reduces purchasing capacity resulting in a further slow-down in manufacturing. This is then followed by an acceleration of unemployment until finally total control is lost and mass confusion and hysteria results in the collapse of industrial society. Do we have to be economists to understand this? Of course not!
The visitor stressed the point that when you have reached the simplest answer then the simplest answer is likely the correct answer. With the removal of economics the basic principles of the energy system dictate the total manufacture of all products and services. Let us review the Visitor’s information about money.
Money was not a natural evolutionary discovery. Money was an invention by early people to facilitate a more efficient distribution of goods and services. Money displaced the barter system. Like many inventions money has lost its efficiency and function.We know that all inventions are always replaced by improved inventions when circumstances dictate change. Evolution always demands change!
The money unit system must now be replaced by the energy unit system.The difference between the two is simple. Money must continuously circulate through out the economy. When money stops circulating its velocity approaches zero and the economy also approaches zero!
Energy units never circulate. Energy units always cancel. For example if it requires one hundred kilowatt-hours to produce an article then the consumer gives up one hundred kilowatt-hours from his or her supply of credit units then one cancels the other. Energy- in always balances with energy- out. That is-they always cancel!
Now back to the initial question. Why does war reduce over- stocked inventory? Simple! War materials do not go into inventory. They are destroyed on the battle field. War materials and all other industries related to war greatly increase social employment of all industries. The economy is then stable. We can now understand how and why economics control political decisions. War is an essential part of the business cycle!
Political-economic wars resulting from our social economic security are clearly demonstrated throughout recent history. Let us briefly run the sequence of wars. The second European war against Germany brought an end to the great depression of the thirties. The continuation of the war was against Japan. The cold war with Russia was followed by wars against Vietnam and Korea. The U.S.A built up the Israel military with gifts of three to five billion dollars per year. And also two billion dollars per year as a gift to Egypt on the condition that Egypt does not attack Israel. Political propaganda must always preclude the next war. The carefully prepared implosions of the New York trade buildings angered the American population and convinced them that it was for their defense they must invade Afghanistan and then Iraq. Preparation for the following future wars is with Iran and then North Korea. China and Russia have combined military intelligences in preparation for the next war against the U.S.A. and Japan. The Chinese politicians have already informed the American politicians that they are now capable of detecting the stealth bombers when they invade Chinese territory. China has recently developed the ability to destroy military satellites in outer space. Wars are not by accident—Wars are by design!
We have now reached the critical transition stage in social evolution where we must make a final decision between developing the energy unit society and the end of political-economic wars or total annihilation from the next atomic bacteriological war which could then end social societies as we know them.