# On the Work-Standard’s Order of Equations

It has been almost three months since I had begun my efforts on the SMP Compendium. Two months have also passed since I began outlining the mathematical equations on how the Work-Standard operates. That was in May and June respectively for those who are now finally reading this Blog.

The problem that I was having for the past two months is trying to lay out a clear, straightforward order. In essence, provide an overview of where we begin with the process of converting Arbeit into Geld and Geld into Arbeit. Although I was beginning to receive glimpses here and there by completing individual Compendium entries, I was unable to discover an ‘order of equations’ since large portions of the SMP Compendium needed to be filled out first.

Now, three months later, there is enough information available in the SMP Compendium on The Fourth Estate regarding the order of equations and how the Work-Standard functions in practice. Organized in descending order, the following table outlines the specific process of converting Arbeit into Geld before the Central Bank creates the Geld needed to repeat the whole process. It reads as follows:

First, the WP needs to be higher than WI. The FM, MR, and ES are all capable of altering the scales between WP and WI across entire sectors and enterprises as well as among the various professions of differing Vocations.

Second, the extent of ES within economic life affects six different indices that will affect the scales between QW and QM. The MWR, FMPI and CSPI tilt the balance toward QW, whereas the CDR, WII and ETOI tilt the balance in favor of QM. Any changes in this balancing act will have the conceivable chance to affect the rate at which Solidarity is achieved. As a general rule of thumb, the best possible Solidarity comes from QW being higher in value when compared against QM.

Third, with Solidarity attained in the balance between QW and QM comes the TEP and TFP. TEP will tell us the extent of economic activities, while TFP will tell us the extent of the financial transactions that are being conducted within those same activities. When we want to determine the extent of Currency Depreciation/Appreciation to either Devalue/Revalue or Transvalue the Currency pegged to the Work-Standard, finding the calculations for the RTEP and RTFP becomes the next step.

Fourth and final, in order for the Central Bank to take into account the amount of Geld it is allowed to create in proportion to the national economy, to determine the amount of Geld allocated to the State as Revenues, Expenses and Budgets, the extent of NSFIs being created and converted back into Arbeit, and the extent of international trade denominated in its Currency, the Central Bank is going to need another variable and equation called the “Total Productive Potential” (TPP).

This is the moment I had been preparing for after these past three months. None of the entries in the SMP Compendium leading up to this Blog post have delved into the role of TPP, but nevertheless they do acknowledge its presence if only in passing remarks. Put another way, there needs to be a separable variable that the Central Bank will need to determine how much Geld to create and circulate into the VCS Economy in order to repeat the process above.

As the nation grows in terms of economic power, expect the TPP to gradually grow in response and the Central Bank adjusting its actions accordingly as part of the Financial Regime. Note that NSFIs from the Kontore do not affect TPP until they enter the processes of Arbeit into Geld or Geld into Arbeit. All NSFIs are intended to act an untapped reservoir of Arbeit and/or Geld that can be deployed by the State and the Totality whenever it needs to rapidly mobilize huge reserves of Arbeit and Geld. It is already reflected in the distinct manner in which the Work-Standard sets the parameters of the Socialist nation-state’s banking practices, “Reciprocal Reserve Banking.”

In closing, at some point in the near future, I will be making yet another reorganization of the SMP Compendium. The “Economic Metrics and Formulas of the Work-Standard” section within the Compendium is going to be rearranged to follow this particular layout, so as to minimize confusion when the SMP Compendium gets completed sometime later this year.

Categories: Blog Post, Compendium