Compendium: Real Trade and Free Trade

Is there a difference between what the SMP Compendium touts as “Real Trade” and what Liberal Capitalist ideology calls “Free Trade?” Is it metaphysically possible to distinguish Real Trade from Free Trade and vice versa? Why is it vitally important to realize that the very essence of the Work-Standard will always be independent of Liberal Capitalist conceptions of finance?

There are massive distinctions in Real Trade that are distinguishable from Free Trade. Not only do those distinctions apply to the realm of international trade, they even affect how the Socialist nation conducts its economic and financial activities. Real Trade, like the rest of the Work-Standard, adheres to the fundamental principle of “ceteris paribus” in Economics. ‘Ceteris paribus’ is a Latin phrase that can be literally translated into English as “all things breaking even.” Any discernible economic or financial phenomenon that one finds in economic life will always be met by an opposing phenomenon. Liberal Capitalism and Socialism interpret this phrase differently because both have distinct methodologies that set themselves and their adherents apart.

For Liberal Capitalism, everything rests on the Quantity of Kapital and the Quantity of Schuld. Any high Quantity of Kapital must be met by a low Quantity of Schuld. Under the ideology’s Incentives of Supply and Demand, Prices increase if Demand outpaces Supply and decrease if Supply outpaces Demand. The sheer magnitudes of Kapital and Schuld or goods and services in existence affect their Prices’ relationship with an Inflation/Deflation Rate and an Interest Rate. A Liberal Capitalist Financial Regime prospers by achieving the highest Quantity of Kapital with the lowest Quantity of Schuld.

For Socialism, everything depends on the Quality of Arbeit and the Quality of Geld. Any high Quality of Arbeit must be met by a low Quality of Geld. Under the ideology’s Intents of Command and Obedience, Prices rise whenever Command exceeds all actions of Obedience and Prices drop wherever Obedience surpasses all actions of Command. The specific functions of Arbeit and Geld or goods and services correlate to the effects of their Prices’ relationship with an Attrition/Inaction Rate and a Mechanization Rate. A Socialist Financial Regime prospers by achieving the highest Quality of Arbeit with the lowest Quality of Geld.     

Where Real Trade differs from Free Trade is this: Real Trade is not a zero-sum game where somebody gains everything and somebody else loses everything. People do not commit themselves to anything in Life without expecting something in return. Every contribution of Arbeit is met by a returning generation of Geld; every generation of Geld is met by a returning contribution of Arbeit. One cannot separate Arbeit from Geld or Geld from Arbeit. Fundamental economic reality dictates that when the Socialist nation prospers, the Totality prospers. The reverse is also true: when the Socialist nation suffers, the Totality suffers. This is because “there is no such thing as Free Trade under the Work-Standard if there is no such thing as a Free Lunch under Socialism.” 

In Liberal Capitalism, one can literally separate Kapital from Schuld or Schuld from Kapital. People live paycheck to paycheck, always resorting to an infinite number of ways to avoid becoming indebted by earning and saving the most Kapital for the least amounts of Schuld. This extends to borrowing loans from the bank, investing in financial markets, paying Progressive Income Taxes, and setting aside Kapital for Welfare Capitalist programs. The so-called “social safety net” is designed with the Intent of snaring people away from true Socialism and diverting them from the Work-Standard. Its tradeoffs are out of control government spending and consumer spending, budgetary and trading deficits, demographic decline, and eventual impoverishment of the whole nation through predatory lending and rent-seeking. There is such a thing as Free Trade under the Gold and Debt Standards, even though Liberal Capitalism also claims that ‘there is no such thing as a Free Lunch’. ‘A free trade in free lunches’ is supposed to be illogical: Liberal Capitalism encourages people to say one thing and to do the exact opposite, which happens frequently in the ideology’s financial markets and Parliamentary Democracies.

While reading the SMP Compendium, pay close attention to the recurring metaphysical patterns of ‘Arbeit into Geld, Geld into Arbeit’ that are always constant throughout the various entries in their respective Sections. There is something peculiar about the specific manner in which somebody commits their Life-Energy (that is, their physical, mental, and spiritual strength) to a Vocation, creating the Arbeit that is then converted into Geld by the Central Bank. Variations of this pattern exist and each one will be discussed across the Sections of the Compendium.

The Intent behind splitting the Compendium into Sections is to complete a simple equation called the “Total Productivity Potential” (TPP) equation, the Work-Standard equivalent of the Liberal Capitalist GDP (Gross Domestic Product). The Work-Standard cannot and must not rely on Liberal Capitalist methodologies, including the mathematical formula and equations, because they are always relying on Kapital and Schuld (Debt/Guilt) as opposed to Arbeit and Geld.  

The basic form of the TPP equation is:

TPP = (State Budget + People’s Geld) + (RTEP + RTFP) + (NSFIs + State Investments)

Whole Sections of the SMP Compendium will be exploring how each aspect of the Work-Standard is designed to yield the sum value of all economic and financial activities for the Socialist nation. Everything discussed in the Compendium is intended to elaborate in great detail about where the Arbeit and Geld of the Socialist nation exist within the context of the TPP equation. Broken down like this, the TPP equation can be described as three components:

The State Budget and People’s Geld are the overall Income of the State and the Totality.  

The RTEP (Real Total Economic Potential) and RTFP (Real Total Financial Potential) are the overall Production of the State and the Totality.

And the NSFIs (National-Socialized Financial Instruments) and State Investments are the overall Mobilization of the State and Totality.

The Central Bank, however, interprets the TPP equation as this:

TPP = TPP Account + LER Accounts + SI-EF Accounts

The “TPP Account” should be self-explanatory for anyone earning any Income as a citizen of the Socialist nation. But what about the Central Bank’s “LER Accounts” and “SI-EF Accounts?”

In the SMP Compendium, “LER” (Life-Energization Reciprocity) refers to the specific process of somebody committing their Life-Energy to a Vocation, contributing Arbeit and generating Geld. “SI-EF” (State Investment-Economic Foreignization) generally refers to the Arbeit and Geld from NSFIs, Taxes, and Investments from the State and foreign nations. Included with LER is a financial technology subset called “LERE” (Life-Energization Reciprocal Electrification) for all digital transactions on the “national Intranet” connected to the “international Internet.” And complimenting SI-EF and the issuances of NSFIs are “Reciprocal-Reserve Banking” and “Real Trade Agreements” (RTAs).  

The Compendium will be exploring these variables. Some Entries will discuss about the metaphysical basis behind the Work-Standard and how it interacts with every aspect of the Socialist nation, from the Central Bank to the actions of a single Individual and the Totality itself. Other Entries focus on several important historical lessons, describe the ways in which the Work-Standard affect the manner in which technologies are implemented, and the operation of a Socialist Planned/Command Economy under a functioning Council Democracy. Towards the end of the Compendium, everything discussed in the previous Sections will be consolidated to demonstrate how everything is applied mathematically and accounted for by the Central Bank.  

The final entry for the first Section of the Compendium is an important discussion about the World State Organization (WSO) as the proposed template of a Socialist world order. The entry for the WSO will be the longest one in this Section. It is the antithesis to the Liberal Capitalist world order that had created institutions like the UN, the IMF and World Bank, the EU/NATO, the OECD, and on. The implications of the WSO are scattered throughout the Compendium and the Intent behind the next entry is to outline how it interacts with the Socialist nation and the Work-Standard. Everything else will be discussed in corresponding Compendium entries as they become relevant.



Categories: Compendium

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