Compendium: Foreign Accounts for Outflowing Arbeit, Inflowing Geld

The AN5 and MN5 variables as part of the TEP and TFP Formulas serve specific contexts related to economic and financial activities outside the Socialist nation. Here, we will be exploring the ways in which the State receives Geld from the Totality and sends Arbeit to the Totality. Another variation of this process, which was alluded to in the previous entry, is the possibility of the State receiving Geld (and even Kapital) from foreign governments and sending Arbeit to those same governments under the terms of Real Trade Agreements.

Most of what I am going to discuss here are theoretical because they pertain to historical possibilities and technological proposals that have yet to be fully realized. An example of this includes whether the world will ever witness the inception of a Socialist world order, which could have been made a reality in the 20th century. Another is the possibility of Heliopolis, the “Splinternet,” which has yet to be fully realized along with the World State Organization (WSO), and the inception of a World Reserve Currency that will exist after the US Dollar.

What will be of practical relevance to this Compendium are the rules on the Socialist nation receiving Foreign Aid and its armed forces contributing Military Arbeit and generating Military Geld. The real challenge lies in the latter because there will always be possibilities where the Central Bank will not be able to always know how much Military Arbeit and Military Geld are being created due to wartime conditions. It is up to the General Staff at the Ministry of War to inform the Central Bank on the real extents of Military Arbeit and Military Geld.

Below are the equations for the AN5 and MN5 variables:  

AN5 = (Foreign Attachés – Foreign Schuld) + (Foreign Investments – Foreign Expenses) + (Cultural Festivals – Cultural Expenses) + Foreign Aid + Military Arbeit + Heliopolis + Space Arbeit

MN5 = (Production Licenses Bought – Foreign Schuld) + (Production Licenses Sold – Foreign Expenses) + (Tourist Revenues + KDM Account + KBM Account) + (Foreign Aid + Military Geld) + (Heliopolis + Space Geld)

For AN5, we may be receiving the services of Foreign Attachés, receiving Foreign Investments for humanitarian and disaster relief, Foreign Aid in the economic, financial and military realms. It is also possible for us to be hosting special cultural events that involve foreigners, have troops stationed in other countries, funding the development and maintenance of Heliopolis, and perhaps even consider forays into our own space program.

And for MN5, we may be buying and selling Production Licenses, receiving State Revenue from Tourism, the Central Bank receiving Military Geld from the Ministry of War, receiving Foreign Aid in the form of Geld only, and receiving State Revenues from Heliopolis and space program. For this SMP Compendium entry, we will be exploring Foreign Aid, Military Arbeit and Military Geld, Heliopolis, and Space Arbeit and Space Geld. The KDM and KBM Accounts refer to the Values of Kapital that our Central Bank has reserved for the State when conducting international trade with Liberal Capitalist regimes and Socialist regimes which have yet to adopt the Work-Standard. Both Accounts will cease to exist once the World State Organization (WSO) has been brought into existence with the emergence of a Socialist world order.  

1. Foreign Aid

The Ministry of Foreign Affairs can also receive Foreign Aid from other countries, in addition to sending Development Aid to other countries. The types of Foreign Aid we can expect to receive is dependent on whether the LIEO (Liberal International Economic Order) continues to exist, or whether it has been replaced by the World State Organization (WSO). The WSO will be relying on its own World Reserve Currency, its own international Internet, and two special NSFIs (National-Socialized Financial Instruments). This portion of the entry will assume that the WSO is interacting with the Socialist nation as opposed to the LIEO vis-à-vis the IMF (International Monetary Fund) and the World Bank because they will only give us Kapital and Schuld, in addition to us probably aborting the Work-Standard.

The World State Organization will maintain a stockpile of two NSFIs designed to provide an injection of Arbeit and Geld into any Socialist nation that needs it.  

The first NSFI is an “Economic Redevelopment and Reconstruction Banknote” (ERRB) that serves as the Socialist world order’s alternative to the predatory lending of the IMF. The WSO sends them to the Central Bank of an affected Socialist nation, where it is then automatically converted into our own Currency as Geld. With the rapid influx of Geld, the State can be readily spent the Geld on reconstruction and recovery efforts in the wake of natural disasters like droughts, typhoons, tornadoes, and floods, manmade disasters like nuclear reactor meltdowns such as in Chernobyl or Fukushima and wartime destruction due to enemy action.   

The other NSFI is an “Economic & Financial Autarky Kit” (NFAK), a more refined variant of the Equipmentality NSFIs issued by Office III of a Kontor. The idea behind this NSFI is to provide the Socialist world order with an alternative to the World Bank. Like the ERRBs, the WSO sends them to the Central Bank of an affected Socialist, where it is then converted into sources of Arbeit by the State. Included in each NFAK are Equipmentalities, technologies, electronics, generators, heavy machinery, medical supplies, fertilizers and farm equipment, and anything that the government of a developing country may need to pursue economic and financial autarky.      

The Implicit Intent behind why the WSO has to send both NSFIs to the Central Bank is because they are not denominated in the Currency of any nation-state. Rather, they are denominated in the World Reserve Currency issued by the WSO for international transactions between the Socialist nation and the Socialist world order. It is better this way because not all nation-states are as well-developed or as technologically advanced as the Western world. There are countries in Latin America, Africa, the Middle East and Asia whose governments will be especially grateful for such NSFIs whenever their Totalities encounter difficulties sustaining themselves.

These NSFIs are pegged to the World Reserve Currency issued by the WSO. The World Reserve Currency is issued only to member-states of the WSO on a 1:1 Exchange Rate. And unlike most conventional NSFIs, there is no hefty Service Fee included. This ensures that developing countries will be able to receive adequate funding in response to any domestic political, economic and financial instabilities affecting their Totalities.

The NFAK are applicable to the variable AN5, which is part of the TEP Formula for International Trades. We can write the “Foreign Aid” in the original equation as this:

Foreign Aid = EDW + (TEP + NFAK)

The ERRBs are applicable to the variable MN5, part of the TEP Formula for International Trades. Just like the NFAKs, their equation is also written as:

Foreign Aid = EDM + (TFP + ERRB)

2. Military Arbeit and Military Geld

Military Arbeit and Military Geld refer to those special sources of Arbeit and Geld which originate from the armed forces, specifically the Ministry of War and the Ministry of Energy and Armaments Production. These variables only appear whenever we have troops stationed in other countries and weapons are being produced for them, but we do not know their exact values. Worse, there are also possibilities where we may be receiving a lot of rough estimated values due to the issues of determining who is dead, who is missing, who has deserted, who defected, and who was captured by the enemy.

We begin by taking a count of all of the military personnel registered by the Ministry of War:

EDW * [GH + YP + PP + (Departments of Army, Navy, Air Force + Other Departments – Expenditures) + DMA] = Arbeit of the War Ministry (AAM2)

GH = Guards of Honor of the General Staff

YP = Youth Paramilitaries of the SSE

PP = Party Paramilitaries of the State

DMA = Military Arbeit Deployed Overseas

The extent to which Military Arbeit is readily converted into Geld is limited to the fact that there is no Mechanization Rate affecting it. Since the two World Wars, the rigors of modern warfare render the concept of a Mechanization Rate too impractical in most wartime conditions on the battlefield. If the Council State is capable of facilitating a “Electrified Quality of Digital Arbeit” (EDW) variable, the Ministry of War can be able to bolster the capabilities of the armed forces in its ability to contribute Military Arbeit.

Military Geld, on the other hand, is primarily converted from Military Arbeit. It relies on the same the equations depicted in the Quality of Geld and the TFP Formulas, but only up to the point where the Ministry of the Energy and Armaments Production has to determine how much Geld was generated from the sale of weapons and munitions, vehicles, warships and aircraft to the State. For ease of reference, the Ministry of Energy and Armaments only need to find the Quality of Arbeit and TEP values of the Armaments Industry, then find the Quality of Geld and TFP values for the Armaments Industry.

For the Ministry of War, their own equation is this:  

([(EDM + DMD) * SR2] + [(MD + DMD) * SR2] = Geld of all Departments (MAD2)

SR= Density / Scope of Production

DMD = Military Geld Deployed Overseas

MAP2 + MAO2 + MAD2 = TFP of the Ministry of War(MAM2)

3. Heliopolis

The term “Heliopolis” refers to the possibility of the Socialist nation being able to finance and develop an alternative to the World Wide Web in response to the Splinternet phenomenon discussed in an earlier Compendium entry. A part of this endeavor does involve the Socialist nation building space satellites and undersea cables for digital telecommunications applications. The conceptual technologies have roughly between around the late 19th and late 20th centuries. In any case, Heliopolis may provide an additional source of Digital Arbeit and Digital Geld, if the State is willing to allocate State Investments into the research and development at Ministry of Science.  

In order for us to distinguish between the Digital Arbeit and the Digital Geld gained from the operation of the national Intranet and those of Heliopolis, the Digital Arbeit and Digital Geld from Heliopolis can be found under the AN5 and MN5 variables of the TEP and TFP Formulas. This is important because the national Intranet’s Digital Arbeit and Digital Geld were with the AN1 and MN1, the TEP and TFP Formulas for the VCS Economy, as part of the Information Sector.

To find the Digital Arbeit and Digital Geld produced by us on Heliopolis, find the Electrified Quality of Digital Arbeit (EDW) and the and the Electrified Quality of Digital Geld (EDM). Mark them as EDW2 and EDM2 to differentiate them from the ones which are affecting our national Intranet. Everything, including the equations remain virtually unchanged.

4. Space Arbeit and Space Geld   

As for “Space Arbeit” and “Space Geld,” they refer to the possibilities of the Socialist nation’s space program someday allowing its citizens to establish a presence in the planetary orbit around Earth, on the Moon, on Mars and its moons, and perhaps even beyond. The technologies required to fully realize their potential, let alone warrant their own categories in the TPP equation, are still in their infancies. It is possible that they may not be ready at any point in the 21st century, but perhaps instead the 22nd or 23rd centuries. For the foreseeable future, we will only be treating them as sources of Digital Arbeit and Digital until then. We are restricted to finding the Electrified Quality of Digital Arbeit and Electrified Quality of Digital Geld. Use variables “EDW3” and “EDM3” to differentiate Space Arbeit and Space Geld from all other Digital Arbeit and Geld.

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