A Capitalist Manifesto

By Bernard M. Palicki

Mis-management of the United States as a national household during the 20th Century created the new Great Depression of this 21st Century. The creeping rot of inflation and socialism threaten continued existence of the United States as a national household under a constitutional form of government. A set of four simple corrective actions is designed and proposed to bring federal, state and local government, including banking and finance, under control. Basis for the corrective actions from structure of the United States as a national household and the balance equation from accounting is explained in simple terms.

• Language: English
• Publisher: Xlibris US
• Release date: May 6, 2021
• ISBN: 9781664173514

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Copyright © 2021 by Bernard M. Palicki.

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Rev. date: 05/06/2021

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CONTENTS

Figures

Tables

Preface

Chapter 1: A Search for Justice Under Law

Origin of Economics as a Field of Study and Application

Origin of Capitalism and Accounting as Fields of Study

and Application

Origin of Socialism and Communism

Federal and World Government Banking and Finance

Chapter 2: Foundation for the Republic

Conception of the U.S. Constitution

Excerpts from Politics by Aristotle

Ratification of the U.S. Constitution and the Federalist Papers

From the Federalist Papers

From Causes of Decline of the Roman Empire

Federalist Paper No. 10

Chapter 3: Twentieth-century Perversions of the U.S. Constitution

Advice from Washington’s Farewell Address

Original Constitutional Power of Congress

The Federal Reserve Act of 1913

The Bretton Woods Agreement Act of 1945

Inflation of the U.S. Dollar as a Consequence of the Bretton Woods Agreement Act of 1945

World War I and the Bretton Woods Agreement Act of 1945

The Roaring ’20s and the Great Depression of the ’30s

General Agreement on Tariffs and Trade (GATT) and the North American Free Trade Agreement (NAFTA)

Operating Structure of New World Order Government

Decline and Fall of the Gold Standard

Final Abandonment of Gold as Backing for the U.S. Dollar and Beginning of Usury in the United States Effective

on October 29, 1974

Chapter 4: Structure of the National Household and the Balance Equation

Fixing Standard Units of Measure

Correlation of the Three Terms of the Balance Equation to the Three Devices of the Electronic Circuit

Structure of the National Household, Balance of Power,

and the Circular Flow of Money

Structure Element 1: Total National Money Supply

Structure Element 2: Total Government

Structure Element 3: Total Business, Industry, and Agriculture

Structure Element 4: Total National Population

Dynamics of Demand and Supply

The Balance Equation in Vector Form

Chapter 5: Perversion of Capitalism

Origin and Foothold of Socialism in the United States

The Money Bait-and-Switch Tactics of the

Private Banking Authority

Terms and Definitions of Finance Industry’s Instruments

of Perversion

Derivatives

Circular Flow of Money in the Private Sector

The Total Cost of Total Government—Federal, State, and Local

Who or What Is Behind Uncontrolled Expansion of

U.S. Money Supply?

Geometric Expansion of Debt from Variable Rates of Interest

Chapter 6: Corrective Actions Required for the Twenty-first Century

The Ratio of M/P

A Tyranny of Financial Oppression Imposed by the Congress

A Set of Four Corrective Actions

Challenging Conventional Ignorance of Other Relevant Problems of National Importance

Appendix

Ten Aims and Expectations of The Communist Manifesto

This Capitalist Manifesto: A Call for Self-defense

The 2008 General Election: A Replay of the October 1917 Communist Revolution in Russia

Bibliography

Figures

3.1. U.S. Money Supply Growth vs. Population Growth

3.2. Operating Structure of New World Order Government

4.1.a. Correlation of Assets and the Resistor

4.1.b. Correlation of Liabilities and the Coil

4.1.c. Correlation of Capital and the Capacitor

4.2. Structure and the Circular Flow of Money

4.3. Dynamics of Demand and Supply

4.4. The Balance Equation in Vector Form

5.1. Circular Flow of Money in the Private Sector

5.2.a. Interest at 5 Percent

5.2.b. Interest at 8 Percent

5.2.c. Interest at 12 Percent

5.2.d. Interest at 20 Percent

Tables

3.1. U.S. Money Supply Growth vs. Population Growth, 1900-1997

5.1. Total U.S. Money Supply, Population, and Taxes, 2003 and 2005

To destruction of socialism through resurgence of free market capitalism and restoration of industrial engineering and manufacture of products in brick-and-mortar facilities within the continental borders of the United States.

PREFACE

A divided social, political, and economic state of the United States and the world today is much worse than the descriptions provided and predicted by Engels and Marx in the Manifesto of the Communist Party published in February 1848. The sweeping scope of The Communist Manifesto provides a most appropriate context for this exposition.

The Communist Manifesto contains ten specific aims and expectations in the push for enforcement of socialist ideology on a global scale. Given the title of this work is what it is, these aims and expectations are listed in an addendum at the end of this work. These ten specific aims and expectations are provided for the reader to judge past, current, and future administrations of all three branches of federal government in the United States under Democratic Party control. It is a charge of this work that the ten listed expectations in The Communist Manifesto has been and continues to be the playbook of the Democratic Party and all associated Liberals, Progressives, and the like.

Outbursts in that manifesto argue against capitalism as the cause of all social, economic, and political turmoil and disturbances that existed in the Western world more than 160 years ago. That turmoil continues to exist and fester today. Much of what Engels and Marx observed as causes of ill effects on populations worldwide in the nineteenth century, from the Industrial Revolution through the eighteenth century, is true. Much of their predictions or forecasts of politics of the future (my words), as they saw it, has come to pass; and the political turbulence of the past continues unabated. Politics, by whatever definition, is the arena within which the interminable struggle continues between the haves (the bourgeoisie), the owners of private resources and means of production, and the have-nots (the proletariats) who are dependent on the bourgeoisie for their livelihoods.

The Industrial Revolution is so called because of the relatively rapid development of tools and machinery from 1750 to 1850. It was not so much a revolution as it was a change of social and political awareness and attitudes. Such changes were influenced to occur and can always be expected as a natural consequence of invention and application of new tools and machinery, affecting large numbers of population headcounts. Prominent examples include development of the electromechanical analog computer, the electronic digital computer, the television, and the Internet—all within a span of forty-five years after World War II.

During that period called the Industrial Revolution, industrial development was largely concentrated in England. That development ushered in changes characterized by diminishing requirements for labor and laborers. That industrial development caused displacements and relocations of populations—from labor on farms to grow food products to labor in factories for the manufacture of new tools and machinery. Historians suggest that changing social, economic, and political conditions that prevailed during that defined period of the Industrial Revolution began to occur as early as AD 1600.

From a long view of history, there have been fits and starts of invention and introduction of new tools and machinery occurring across the globe from as far back as documented history can provide. Necessity and the inquiring mind of the human animal have always been and shall always be the motivators and energizers of and for invention and development of new and improved tools and machinery.

In stark contrast to all the wonders of physical invention and material development since Adam and Eve, there is no end in sight to real and vitriolic animosities found to exist in the social behavior of the human animal largely because of the differences between the haves (the bourgeoisie) and the have-nots (the proletariats). Differences of material possessions at the extremes between the haves and have-nots fuel the animosities of human behavior and are the engines of most, if not all, conflicts and wars. Those animosities are the causes of all conflicts (large and small). All animosities evident in the social behavior of the human animal will probably continue to exist into infinity because of the following naturally opposing forces:

1. Prices versus wages from the ever-present and continuous push and pull forces of the natural law of demand and supply

2. Real and apparent conflict between management and labor under conditions of private ownership of the sources and means of production

3. Corporate America under the heel of socialist dictates by a federal government under the control of Democrats (more so the socialists) elected to serve in the U.S. Congress

4. Pursuits of socialism under the Democratic Party and pursuit of capitalism under the Republican Party in an apparent never-ending conflict for votes to secure constitutional power to make the rules by which we live our material existence

This work is an exposition that offers a contribution, hopefully, to mitigate the real and vitriolic animosities that exist because of the naturally opposing forces cited above.

From a long view of history, from its inception through the end of World War II, the United States became the largest and most powerful industrial nation on Earth. Transformation of the United States into a socialist welfare state began with the Great Depression of the 1930s. Transformation of the United States into a beggar nation began with inflation of the U.S. dollar—a consequence of the Bretton Woods Agreement Act of 1945 and a subsequent socialist administration of federal government under socialists of the Democratic Party for the last forty plus years.

Like the old adage From rags to riches to rags in three generations, the first generations built the wealth and power of the United States without the dubious benefits of intervention by federal government. Subsequent generations squandered that wealth with socialist welfare state policy and programs under socialist administration of government. The current generation, this early part in the twenty-first century, does not know what or how that occurred. There does not exist any reflection of any awareness, by anyone anywhere, that the former industrial