Failure Analysis of 20th Century Economics
Copyright 2000 and beyond by Bernard Palicki

It's not the 'ECONOMY', stupid!
it's all about 'TRADE'!!!
and destructive monetary (money) and fiscal(tax) policy interference with 'trade'.
'Trade' is the 'exchange' of goods, products and services. 'Economy' is the national household'.

'Economics' is a study of ways and means to manage or control the national household, by various ways and means used/applied to control 'trade'.


Ways and means used/applied to control 'trade' are founded on ridiculous 20th Century 'economics' (print more money).

'Ways and means' used/applied to control 'trade' are executed through the existing federal income tax code.

The existing federal income tax code, for extraction of revenue, is supplemented and supported by federal loans and grants and ABSURDITY of tax-exemption for so-called 'non-profit' business organizations, and 'socialist' federal government subsidies to selected markets.


Development and manufacture of goods and products is the daily task of labor (expenditure of human energy through labor) by ALL mortal life on Earth, simply to survive and to improve the circumstances and conditions of survival.

Object of the expenditure of ALL human energy is, to provide ALL of the infinite variety of ways and means possible to support availability and distribution of material goods and products.

Distribution of goods and products is accomplished through all of the wholesale and retail outlets - the market places of and for 'exchange'.


Exchange of WHAT! Exchange of products from expenditure of individual human energy through labor - for exchange of products from expenditure of human energy by all other individuals to produce materail product.

The 'laborer' designs, develops, makes, and maintains 'products'. The 'merchant' provides the 'services' required to obtain and provide 'products' for trade or exchange in wholesale and retail outlets.

The 'laborer' sells the expenditure of his human energy in return for wages. Wage for the 'laborer' constitutes the 'cost' of product.

'Profit' for the laborer to provide 'product' is included in his 'wages' for his labor.

If the laborer cannot 'profit' from his labor, he does not otherwise have 'means' to 'purchase' product from the labors of others.

When deprived of such means ('means', because of financial oppression, completely invisible to the wage-earning worker, by deliberate inflation of money and usury rates for the cost of borrowed money), the concept of working for a living is abandoned, in favor of encouragement to commit burglary, robbery and theft.

The 'merchant' sells the 'products' of the laborer for the cost of human labor in terms of 'wages', plus the cost of his 'merchant' services, plus an additional charge to 'profit' from his selling efforts.

The variable 'balance of trade' is defined by the natural law of 'demand and supply' - a natural law that comes from God - no different than any and all other natural laws that come from God.

Only God is author of the 'Natural Laws', designed by 'Him', not 'Her', to sustain 'His' Creation of the Universe and all mortal life on planet Earth.


ALL of this dialogue was written years before the violent terrorist attacks on New York and Washington, D.C. on 9/11/01.

All U.S. National domestic issues and problems, clearly identified before the 'attack', still remain.

All pre-existing U.S. National issues and problems are only exacerbated by the cataclysmic events of 9/11/01.

Popular sensitivity and recognition of pre-existing U.S. National issues and problems has been driven underground by the inter-national 'terrorist' attacks on the United States, by the fanatic mud-balls of Islam.

The 'un-constitutional' U.S. 'war' against 'terrorism', brought to the elected 'leadership' of the U.S., and to the houses of the 'citizens' of the United States, is a consequence of our human inability to level the playing field (on global and domestic scales), during countless centuries of 'self-interested' competition for possession of 'material property' - to survive and to improve circumstances and conditions of material survival.

A 'balanced' distribution of and for posession of material goods and property (the wealth of Nations), remains elusive - remains denied - because of ignorant and irresponsible national monetary and tax policy - founded in destructive 20th century economic theory (print more money to cover 'debt' imposed by the ruling elites).


Last update of 'transcendental' domestic issues and problems facing the United States in the 21st Century:

Destructive Monetary (money) and Fiscal (tax) 'mis-management' of the 'United States of America', as a 'national household' during the 20th Century, continues into the 21st Century.
Remark from the 'Great Depression of the 1930s is in order. "When your neighbor is out of a job, it's a 'recession'. When you are out of a job, it's a 'depression'."
As we observe entry into the 21st Century A.D. (Anno Domini - Year of our Lord) - more than two thousand years after the Birth of Christ - we observe personal and business bankruptcies and frequency of employment 'lay-offs' occurring at an all time high.

Down-sizings and dissolutions of old and time-honored institutions of business and social mores in the United States have occurred, and are continuing to occur, in direct proportion to 'out-sourcing' of manufacture of 'product' by 'U.S. citizen-owned' companies and corporations since the end of World War II in 1945.

Destruction of industrial engineering and manufacturing complexes and facilities of the U.S. has been occurring, ever since the un-constitutional 'Bretton-Woods Agreement Act of 1945', enabled by the un-constitutional 'Federal Reserve Banking Act of 1913'.


Product of this 'systems engineering failure analysis' (from the 'wage-earning' trenches and 'dung hill' of obscurity) is a conclusion in the form of a set of four 'Corrective Actions' required by all Nations during the 21st Century - to bring order out of disorder and chaos in the market place.

This 'failure analysis' and its recommended set of 'four', very specific, 'Corrective Actions', carries the weight of the world. (On your shoulders, not mine).


Eyewitness, experience (1930 - ?) and some study of with major destructive ocurrances of the 20th Century, led to development of a set of conclusions - the set of four 'Corrective Actions' required by every Nation on Earth for the 21st Century. These major destructive occurrances include the following:
  • The Private Banking System Authority caused the 'Great Depression' of the U.S. of A. in 1930s.

  • World War II (caused by the terms and conditions of the 'Treaty of Versailles' imposed on Germany as a Nation, wherein terms and conditions were directed by 'Clemenceau of France' (1841-1929).

    "Economic Consequences of Peace", by John Maynard Keynes (see Bibliography), provides his eyewitness account of the proceedings that resulted in the formation of the 'Treaty of Versailles'. Keynes' account includes 'details' of 'reparations' required by Germany and all of its citizens, wherein those 'reparations' were designed to destroy Germany as a 'nation'.

  • The Cold War after World War II (Including the 'debacle' of useless expenditure of many hundreds of thousands of lives of U.S. citizens as soldiers in the 'police' action 'wars' in Korea and Vietnam.)

Eyewitness and experience with these major destructive ocurrances of the 20th Century (1930 - ?) eventually led to observation and analysis of national monetary (money supply) and fiscal (tax) policy. (Observation, search and study of U.S. national monetary (money supply) and fiscal (tax) policy began in November 1963.)
Causes of social, economic and political disorder, prevalent in the United States during the last half of the 20th Century, remain in place, and continue to remain in place, with no end in sight. Causes and effects of U.S. National Household dis-order continue in the 21st Century. Such 'causes' are founded 'globally' in two financially oppressive practices:

  1. DELIBERATE INFLATION OF MONEY - destructive U.S. national monetary policy (a 'controllable and deliberate rate-of-growth' of U.S. Money Supply that exceeds the 'uncontrollable natural rate-of-growth' of total U.S. national population headcount.)

  2. VARIABLE RATES (OF INTEREST) FOR COST OF BORROWED MONEY (computed using the compound interest rate formula - the totally financial and 'oppressive' formula for taxation of 'credit', i.e. 'debt', for purchase of goods, products and services).

Analysis is global in scope. Results of this analysis, in the form of 'Corrective Actions', required by all Nations for the 21st Century, are universal in application.

  • A set of four basic 'Corrective Actions', required by all Nations on Earth for the 21st Century, thread the eye of the needle between, 'Exploitation of human labor under 'Predatory Capitalist Ideology' and 'Exploitation of human labor under Suffocating Socialism'. (The practice of 'Predatory Capitalism' is the engine for existence and promotion of 'Suffocating Socialism'.)
    'exploitation', as used here, is defined as, "unjust or improper use of another person for ones's own profit or advantage"; or, "coaction between organisms in which one is benefited at the expense of the other". One 'organism', as this term is used here, is, 'federal government banking and finance'; the other 'organism', as this term is used used here, is, the aggregate or total collection of all 'private business structures' required for employment of all human life on earth.
    Detail data, supported by graphics, leading to this 'conclusion', is found in the Technical Appendices of "The Natural Law Thesis" - Global in scope and Universal in application:
    There is more to come, at some future date:
    1. graphic argument to fix time-cost of borrowed money at 5%.

    2. graphic display of a 'Gross Income Tax Rate' (a Table of rates), wherein all taxes to support the total cost of total government - Federal, State, and Local - are abolished - and replaced by a 'single tax on gross incomes' as some percent of total national money supply.
    These are 'remedies' that are Global in scope and Universal in application.
    Loss of control over 'self-determination', by nations or individuals, drives social disorder. Prominent Examples:
    • England's long-standing occupation of and interference in the internal affairs of Ireland (Remnant of Britsh Colonialism).

    • Interminable Serbian and Croation conflict in the Balkans (Re-emergence of conflict with collapse of Soviet Union control over the Balkans).

    • Interminable Arab and Israeli conflict in the Middle East (since Adam and Eve).

    • Interminable United Nations General Assembly interference in the internal affairs of otherwise separate and sovereign Nations (since re-enforcement of the concept of a 'new world order' under 'one world government' through U.S. Congressional enactment of the Bretton-Woods Agreement Act at the end of World War II in 1945).

    'Corrective Actions' allow nations, and individual citizens of separate sovereign nations, to regain control over 'self-determination' of their current and future conditions of and for life in our mortal and material existence - without having to go to war or committing acts of 'terrorism' or 'violence' to achieve that most lofty goal for betterment of the human condition.
    Destruction of all U.S. industrial engineering and manufacturing capability during the 20th Century was allowed to occur through a complex combination of U.S. Congressional and U.S. voter ignorance.

    Origin of this destruction has been traced to assumed and un-elected power and authority of the finance ministers of the central banks of the world, in their concept of global design to manage the natural resources and population of planet Earth, using the 'World Bank' and the 'International Monetary Fund' as 'tools' for implementation of their global design.

    These 'tools' of the finance ministers of the central banks of the world, were provided to them and for them through U.S. Congressional execution of the 'Bretton-Woods Agreement Act' at the end of WWII in 1945.


    Advance to Natural Law Thesis (One-to-one relation of the three fundamental terms of the balance equation from accounting principles, to the three fundamental devices of the electronic circuit.)

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