We now know almost all of the economic and financial activities in the Socialist nation. It is “almost” because we still do not the extent of activities taken by the Socialist Student Economy, which relies on its own equations. There needs to be a special equation to ensure that the Arbeit of the penitentiary system goes the inmates as Geld, which will be issued to them by the State once their prison or community service sentences have ended. Also missing are the equations for NSFIs issued by the Kontore and those for the National-Socialized Banks issuing Interest-free loans called “Work-Tenures.” Before proceeding to determining the Accounts for the SSE and the Penitentiary System, let us visit the equations for the Kontore and NSBs first.
1. Equations for the NSFIs issued by Offices I through VI of the Kontor
There are six types of NSFIs issued by the Kontore. Any NSFIs issued by the State of the Socialist nation originate from the Kontore. We will need to know the values for all NSFIs issued from every Office from the Kontore and any NSFIs which the Kontore gave to the State as refinanced Four-Year or Five-Year Work-Plans. The values of any Taxes that the State has levied need to be accounted for as well as the Taxes levied by another Socialist State.
NSFIs = Office I + Office II + Office III + Office IV + Office V + Office VI
Office I = (FI1 + FI2 – SFx)
Office II = (FWP1 + FWP2 – SFx)
Office III = (EQ1 + EQ2 – SFx)
Office IV = [(FEC1 + FEC2 – SFx) + (KDM – FEC3) + (KBM – FEC4)]
Office V = [(WT1 + WT2 – SFx – SHx) + (WT3 + WT4 – SFx – SHx)]
Office VI = [(PR1 – SFx – SHx) + (PR2 – SFx – SHx) + (PR3 – SFx – SHx) + (PR4 – SFx – SHx)]
FIx = Fiefs
FWPx = Four-Year/Five-Year Work-Plans
EQx = Equipmentalities
FECx = Foreign Exchange Certificates
KDM = Kapital of Dirty Money Account
KBM = Kapital of Blood Money Account
WTx = Work-Tenures
PRx = Priority Requisition for State, VCS Economy, SSE and Military
SFx = Service Fees
SHx = Schuld
There is to be no unemployment in the Socialist nation, especially at the Kontore. The State, State-Administrated Enterprise, State-Owned Enterprise, National-Socialized Enterprise, and the SSE are all capable of issuing NSFIs at the Kontore. Any foreign Enterprise or foreign State may be allowed to participate in the Kontore on the condition that the State Commissariats include a People’s Surcharge on top of the Service Fee.
While the basic premises of most NSFIs are straightforward (especially Office IV, since it involves Exchange Rates), NSFIs from Offices I, II, III, V, and VI involve different procedures within the interplay of Arbeit and Geld. It should be mentioned that the NSFIs rely on Command-Obedience Account Bookkeeping for their methodologies. We will be exploring Fiefs, Work-Plans, and Equipmentalities in this portion of of the entry. The methodology for Work-Tenures functions the same no matter who are the Lenders and who are the Borrowers.
Unfortunately for Office VI, Priority Requisition, the complexities of its NSFIs are so vast that they can encompass the entire Socialist nation, thereby requiring their own SMP Compendium entry, “State Revenue and Requisition Accounts.” As for dealing with Schuld, particularly the Schuld of Kapital whenever the Socialist nation has to deal with Liberal Capitalist regimes or Socialist nations that have Currencies not already pegged to the Work-Standard, we will be exploring both in “Domestic and Foreign Schuld Accounts.”
The Command-Obedience Account for Fiefs
A “Fief” is an NSFI where an investor devotes their Arbeit to a Vocation where its Meaningless Work must be balanced by its Meaningful Work. The Vocations found here are all menial tasks and arduous assignments, and the Enterprise must be wiling to provide the necessary Technology for the investor to electrify their Arbeit and Geld.
The Intent of a Fief is for the Individual, by Being-in-the-World as an investor, to help an Enterprise enhance its FQW and, by extension, its FQM. The Value of this NSFI is affected by the Individual’s ability to boost the sum of the Enterprise’s RTEP and RTFP through their Quality of Digital Arbeit (EDW) and Quality of Digital Geld (EDM).
The Price of a Fief is determined by the Enterprise’s Final Quality of Arbeit (FQW) and the Service Fee and then divided by the Central Bank’s Mechanization Rate (MR). Higher Mechanization Rates will devalue the Vocation (and by extension, the Fief itself) if the Central Bank continues automating the VCS Economy. Any Stipends given to the Self by the State and any Schuld incurred on the Self must be accounted for in real time. The Self’s Digital Arbeit and Digital Geld will be allocated to the TEP and TFP of an Enterprise. The Value of the Fief is affected by the RTEP and RTFP of the Enterprise. To prevent the Fief from losing its Value, the Kontor must ensure that the Enterprise’s RTEP and RTFP is greater or equal to the sum of its TEP and TFP with the EDW and EDM of the investor.
The Command-Obedience Account for Work-Plans
A “Work-Plan” is the bread and butter of most NSFIs for a Socialist nation relying on the Work-Standard. Either the State finances it, or the Self does it on behalf of the State. The Enterprise pays neither the Vocation nor the Work-Plan itself. Unlike Fiefs, the goal is to ensure that, for the next four or five years, the sum of the RTEP and RTFP is higher than the sum of TEP, TFP, the Vocation as well as any Schuld and Refinancing that had to be done.
If the sum of RTEP and RTFP does not exceed the sum of TEP, TFP, SHx, Vocation and Refinance, the State will be incurring Schuld on the Self. This rule applies regardless of whether the State Budget is running a surplus or a deficit because the burden falls on the Self to uphold the Intent of the Work-Plan under Command and Obedience. The good news about Work-Plans under the Work-Standard is that they only apply to the Individual and will not inexplicably kill millions of people because of their failures. The worst that could happen is either the Self and the State losing Geld due to either or both failing to uphold their promises to the Enterprise.
The Command-Obedience Account for Equipmentalities
Every Command yields its own Obedience, every Obedience yielding its own Command. Please spend some time to study the manner in which I wrote the accounting in this portion before proceeding to read the rest of the entry.
Equipmentalities come in many different forms and variations. They are natural resources, raw materials, individual components, half-finished goods, and finished goods purchased in bulk. Depending on who is issuing the NSFI, there are at least three ways for the accounting to be formatted under Command-Obedience Account Bookkeeping.
State to Totality and Self. The State issues an NSFI, placing an order on Equipmentalities. Not only does the Kontor be required to ensure that the State will receive the amount of Equipmentalities listed therein, the RTEP and RTFP needs to still be greater than or at least equal to the sum of EDM, TEP, EDW, and TEP. Beware that higher Attrition Rates will depreciate the final sum of RTEP and RTFP. Additionally, the State must be willing to pay the Service Fee and any Schuld incurred here.
Self to Totality and State. An Enterprise within the VCS Economy issues this NSFI to the VCS Economy and the State, placing an order for a set amount of Equipmentalities. The VCS Economy will produce the Equipmentalities. For the State, a Kontor must ensure the sum of RTEP and RTFP for the Socialist nation can still be greater than or at least equal to the sum of EDM, TEP, EDW, and TEP.
State and Totality to Self and State and Self to Totality. There may be certain contexts where the Socialist nation has an Enterprise or even an entire Industry producing a specific Equipmentality. It is also possible for the Industry or Enterprise to be situated in another country. Should it be the case of the latter, always account for the values in the Currency of the Socialist nation. And in the event where the Socialist nation is forced to obtain an Equipmentality from a Liberal Capitalist regime, we will be addressing that issue in yet another SMP Compendium entry, this one being “Domestic and Foreign Schuld Accounts.”
2. Life-Energization Reciprocity Equation for the Reciprocal-Reserve Banking System
The Reciprocal-Reserve Banking System process has Lenders issue Interest-free loans called “Work-Tenures” to potential Borrowers. The Lender contributes 50% of the Arbeit, the Borrower contributes the other 50% to the State vis-à-vis the Central Bank in the accounts of a National-Socialized Bank (NSB). The Lender also generates 50% of the Geld and the Borrower generates 50% of the Geld. Any Schuld or refinanced Work-Tenures are to be taken into account.
NSB = [((BW – LW) + (BM – LM)/2) + SF + SH] + [((LW – BW) + (LM – BM)/2) – SF – SH]
BW = Borrower’s Arbeit
LW = Lender’s Arbeit
BM = Borrower’s Geld
LM = Lender’s Geld
SF = Service Fee
SH = Schuld
3. Arbeit and Geld of the Socialist Student Economy (SSE)
The youth of the Socialist nation also contribute Arbeit and generate Geld as part of their everyday school life. This portion of the Compendium entry applies for students enrolled in the secondary schools and universities of the national educational system. The most basic organization within the SSE is of course their own school or university. Depending on the population size of the SSE, the next largest organizations are “Companies,” “Battalions,” “Brigades,” “Regiments,” “Divisions,” “Corps,” and “Groups.” Unlike the rest of the Socialist nation, format of the account for the SSE is just as easy as the last account which I will be demonstrating here.
The Intent behind the very simple formatting of the account for the SSE is to allow the students to become accustomed to conducting their everyday lives under the Work-Standard. The secondary school students may still be relying on the Paygrades of their parents as dependents. The goal at this point in their lives, as part of a rite of passage set aside for teenagers by the State, is to work towards receiving their own Paygrades. Note that students who attend school in another part of the Socialist nation are entitled to receiving a basic living quarters and a basic Paygrade each week.
4. Arbeit and Geld of Inmates at State Penitentiary System
Everyone who is imprisoned in our Socialist nation, including foreigners, terrorists, and POWs, are entitled to receiving payments from the State vis-à-vis the Justice Ministry. There may be opportunities for people to volunteer for community service under the watch of their prison guards. Anyone who participates will be paid the basic rate set by the State Commissariats. POWs, if detained at POW camps in the Socialist nation, are entitled to receiving the same set of basic necessities and provisions that the Ministry of War also provides to the military recruits.
The Minister of Justice and the General Staff of the Ministry of War can be held criminally liable by the State if there is credible evidence that inmates at the State Penitentiary System are abused or tortured. Anyone found mistreating them will be held accountable as well. Mistreatment of POWs in wartime will also be punished. The State has a Constitutional Obligation to charge the perpetrators responsible for war crimes and there may be opportunities for the State to send the perpetrators to be tried together at an international court.