Spoken Words to go with our UNIS-UN Conference Slides at the UN General Assembly Hall

This article is a side note for the main post, Our presentation at the UNIS-UN Conference, United Nations General Assembly Hall. Visit that previous post to view the slides.

Spoken words for our presentation at the UN General Assembly Hall

1 I thank Katie Simon and the UNIS-UN Conference staff for the opportunity to speak to you today.

2 Everything we use in life is processed from natural resources. In the walled cities of Europe 800 years ago, also known as the City States, there were no natural resources.

3 When outlying villagers saw looms, fulling vats, forges, tanning tools, primitive industrial capital producing consumer products. They said to themselves, “We can do that.”

4 Back to their villages they went. Produced their own primitive industrial capital, And manufactured their own consumer products.

5 The economy of that city state was quickly impoverished and the same process goes on in world trade today. Historically the choices were poverty or war. Today the choices are massive poverty, nuclear destruction, or restructure the world economy to full and equal rights for all.

6 The classics on the Middle Ages, Heckscher, Pirenne, Wallerstein, tell us those City States raided the countryside for several hundred years. They destroyed their primitive industrial capital and forced villagers to sell their hides, grains, and other resources to the city. Thus began the transformation from plunder by raids to plunder by trade.

7 One city took over the markets of another city and impoverished them, City States fought City States over those resources. Winning those battles decided who would control the wealth producing process.

8 Those city states became countries. The resources for a powerful nation still lay outside their borders.

9 Countries now fought countries over resources and the wealth producing process.

10 Six nations of Europe, Britain, Spain, France, Holland, Portugal, and Belgium realized the easy way to wealth was to steal it from others. (Germany, Italy, Japan, and America were latecomers on the imperial scene.)

11 Those early colonial nations form a tiny area with few natural resources. Compare them with the rest of the world with previously untapped resources. There is where the natural resources, from which all wealth is created, are located.

12 The many wars throughout the 20th century were battles over who will set the rules of “unequal trade” which was the “monopolization process” as applied to world trade.

13 Societies were locked within that plunder by trade (monopolization) structure until a recent “accident of history” we will discuss shortly. If the commoners had won the privatization battles of the Middle Ages and shared their knowledge with cooperative societies as they explored the world, rather than enslaving them,

14 production would have doubled. And doubled again. Instead, all these centuries dependent former colonial nations were prevented from developing and this caused many wars and much of the hunger and poverty we see today.

15 After WWII, Africa attempted to federate into one nation. If they had succeeded, developed a prosperous economy, subsidized their agriculture, and undersold farm products across the world, what would happen to American and European farmers?

16 Farm machinery companies and businesses depending upon those paychecks would go broke. Massive numbers of workers would be out of a job. And on and on the depression would spread.

17 Through money being sucked out of their economies, those dependent nations were denied the gains of the multiplier factor which is the health of any economy. As money circulates it employs more and more people and this knowledge became a weapon of imperial nations. Development was denied to all except those necessary as allies. However, under the current “accident of history,” that is changing fast. Plunder by trade (monopolization within world trade) is collapsing.

18 Unless it does during the current worldwide crisis, colonialism never actually ended.

19 The US faced that same multiplier loss during the Great Depression and may be facing that same crisis today. When the US gave the Soviets shiploads of grain, the breadbasket of Europe, the Ukraine, was immediately impoverished. Farmers could not sell their wheat so they did not plant the next year’s crop. One of the worst things that can happen to an economy is free food destroying the economic multiplier.

20 Denying other nations a balanced economy so they cannot develop has been the story of plunder by trade (monopolization within world trade) ever since WWI. Colonialism continued through many methods of control of the wealth producing process. ****** (In the presentation, I pointed out some of those many methods: control of finance capital, IMF, World bank, WTO, GATT, NAFTA, covert wars, etc, and a last resort was open warfare. I missed pointing out that this plunder by trade thesis is essentially the long suppressed “Dependency Theory.” A search here came up with a whole different group than a search did 12 years ago. Obviously, over time and due to Google listing the highest hit pages first, previous writers are crowded out. This means our current perception management system can be quickly replaced.)

21 But this is changing fast. Today’s plunder of the gentler citizens of the world is collapsing. Markets of all kinds are collapsing. Wars are being lost. And poverty is deepening in the wealthy world.

22 Much of the world was on target to be relatively well developed by 2035, only 26 years away. Though the current financial crash threatens to create more poverty, their rapid development points the way to elimination of poverty and hunger.

23 Helping Asia rapidly develop was the “accident of history” which is rapidly changing the world (Meaning the entire world trade structure is changing fast). Fearing that alliance, powerbrokers broke China away from the Soviets by offering trade and technology if they made that break.

24 It worked, but not as expected. China had 30 cent an hour labor. Industrialized nations had $30 an hour labor. So greedy industrialists moved wholesale to China. Thirty-five years later, the industrialized nations face a loss of living standards just as those Walled Cities of Europe centuries ago when others processed their consumer products.

25 By 2035, again only 26 years away, Turkey’s GNP was expected to surpass Britain, China’s was expected to surpass the US, and Brazil, Venezuela, and Argentina were comparable.

26 The old imperial nations now find themselves in the same crisis as the city states of Europe 800 years ago. That is not necessary. Technology today is so efficient that the end of plunder by trade along with a restructuring of internal economies can create peace and a quality life for every citizen of the world.

27 Malawi, a small country in Africa figured out the primary cause, rejected the import of cheap food, and financed their own farmers to buy fertilizer, farm tools etc. Today they are a reasonably well-fed nation that exports food. They successfully avoided the high prices of food controlled by global food companies as Professor Gustofason’s charts demonstrated in the previous presentation. Those subsidized foods undersold production in the developing world which did more than just damage developing world agriculture, it destroyed their economic multiplier which is the health of any economy. Every dollar that went out of the country to buy cheap food destroyed anywhere from 3% to 8% in circulating money buying and selling within the importing country.

28 The same principles that create prosperous agriculture apply to all sectors of an economy. To be prosperous, a nation must produce its share of the world’s consumer products and food.

29 Sustainable, permaculture farming must be practiced and local and regional industry must be developed.

30 Monoculture farming lowers yields, degrades soil, and damages the environment. Permaculture produces far more food, improves the soil, and reduces environmental impact.

31 There are also serious problems within internal economies. We now turn to those errors in classical theory.

32 Picture a fertile valley 10,000 years ago with fruits nuts, and vegetables growing wild along with lush thatch for building shelters.

33 All the new settlers have to do is pick their food, build thatch homes, and relax most the day.

34 But a cunning cabal forms and each lay claim to a part of the land. They make a pact with toughies to share the spoils if they protected their “exclusive title to what nature offers to you, me, and everyone for free.

35 The primary cause of poverty among plenty is “Property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free.” Others have to share the food they pick with those “owners” and those protecting their “property,” have to build their houses, and provide them with other services while those cunning go on to claim more unearned wealth throughout history.

36 Today that same protection of exclusive title to what nature offers for free is accomplished through law. Note how that early toughie looks identical to the sheriff enforcing court rulings today. Seventy to 130 years ago, this error in property rights law was being studied and taught right in the university (Professors John Stuart Mill, Alfred Marshall, Thorstein Veblen, & others). We do not have time to explain how this thesis is untaught and unknown today. A good place to start your thinking is Greece, claimed to be “the birthplace of our democracy.” There only “land owners” could vote. That carried though to the American political structure where slowly other “men” were allowed to vote. Women did not get the right to vote until 1920 and for all practical purposes African Americans did not gain that right until the 1960s. But, due to the massive wealth appropriated from us all funding lobbyists which effectively means funding the elections of most legislators, those “rights” are still illusions. It is still effectively “their” government just as it was when those “exclusive titles to nature’s wealth” were first established thousands of years ago and protected by legislators of every shade ever since. The proof is capital claiming all the gains in wealth produced by the ever-increasing efficiencies of technology (30% per decade compounded) the past 25 years plus a part of what once went to labor. Wages are lower today than they were in 1972 but we do not realize it because the wives went to work to make up for that theft of labor’s proper share and today each family does have a higher standard of living. But we are addressing the economic story, not the political story. For us now, it is enough to know this thesis has a solid foundation in the classics.

37 Please write down and imprint in your mind. “Property rights law, as applied to nature’s resources and technologies, denies you your rightful share of what nature offers to all for free.” Your property rights law, again as applied to nature’s resources and technologies, is nothing more than aristocratic property rights law, exclusive title to nature’s wealth. The massive unearned wealth accumulated leads to conspicuous consumption which too is a major cause of poverty and hunger. After all, with finite resources, if one consumes several times their share, others will have less then their share.

38 We are not talking about personal property which was built by labor and properly exclusively owned.

39 We are talking about the wealth of nature which she offers to us for free.

40 This is why the powerful are privatizing everything in sight and why costs rise rapidly (frequently doubling) each time they do so.

41 Efforts are underway to privatize highways, water systems, and other social services. In the US the descendants of those claimers of the wealth of nature 10,000 years ago, hope to privatize Social Security.

42 When Bolivia’s water system was privatized, costs tripled as services went down. Bolivian citizens revolted, took back their water, prices dropped, services rose, and the legal system legitimized the recovery of everyone’s right to water.

43 We can each regain our rights to our share of nature’s wealth ****** by paying land rents, meaning all resource rents, to ourselves (meaning socially collected) and ****** using those massive funds to build roads, railroads, water and sewer systems, and electric grids (all natural monopolies). ****** Those funds will also run governments and provide education, health care, and retirement which is the community process.

44 This is not socialism. This is the rental value of nature’s wealth, which is your and my wealth, funding the community process. We have only reclaimed what nature offered to all for free and we have more wealth yet to reclaim even as we retain the principles of “honest capitalism.”

45 Money and banking are centuries-old technologies—just as much a part of nature’s wealth as land, water and air—and thus are an integral part of the community process. The only tangible (labor created) values within banks are brick, mortar and furniture.

46 Operating those banks and paying for the use of those few tangible values are covered by ½ of 1% interest on loans.

47 Base Money is created out of thin air by the socially-owned Federal Reserve. Circulation of that socially-created money is our money supply. Thus they are also forms of wealth produced by nature,

48 Those earnings of nature are also properly paid to ourselves and also used to fund governments, infrastructure, education, healthcare and retirement.

49 Currently your earned money becomes monopolists unearned money which is then loaned back to you. That unearned money, essentially the other side of the ledger of everyone’s unnecessary debts, grows greater and greater. The huge gains from correcting today’s unequal property rights laws is your share not being appropriated from you in the first place.

50 Health care is an integral part of the community process, for example: Britain provides coverage to 100% of her citizenry at 43% the per capita cost of America whose citizenry without healthcare is approaching 50 million. Case proven. The superstructure above the monopolized health care industry is the “monopolization process” within internal economies which claims massive sums of unearned wealth.

51 Another example, insurance: Social Security is retirement insurance operating on ½ of 1% of premiums paid. For every $2,000 you pay in, you get back $1990.

52 All except life insurance is essential. Yet market insurance requires almost 50% of premiums paid to cover costs and profits. For every $2,000 you pay, you get back only $1000.

53 Establish a central insurance office where banks or individuals can apply by mail, phone, or computer for home, auto, and business insurance and the costs drop to 6% of premiums paid.

54 The entire superstructure of monopolized insurance (wasted offices and labor within the “monopolization process”) is replaced by one central office. Again we prove monopolization has denied us the efficiencies of the community process.

55 A third example, patents monopolizing technology: Those profits are collected through the stock market. This is wasted effort extracting wealth from you and me and doubling consumer costs in the process. Simply pay inventors well, place those patents in the public domain for all to use and 85% of the casinos called stock markets disappear. The “monopoly process” has short circuited the efficiencies of the “community process.”

56 The efficiency gains of paying inventors a capitalized value for their inventions drop consumer prices 50% or more and those unnecessary stock brokers and staff are now available for productive employment.

57 This is an honest capitalist structure paying resource rents and banking profits to ourselves and using that money to fund the “community process” addressed above.

58 Wages cover food, fiber, shelter and recreation which are primarily provided by private enterprise. Savings within that circulation of money is the multiplier factor building and operating industries which is also private enterprise.

59 The ethereal word of high finance, the 60% of all finance capital which is unearned wealth amassed through the private collection of rental values to nature’s wealth, simply disappears under honest capitalism.

60 I repeat: By paying resource rents to ourselves, meaning socially collected, citizens are quintuply repaid through those massive funds building roads, railroads, water and sewer systems, and electric grids (any natural monopoly) as well as funding governments and providing education, health care and retirement which is all part of the “community process.”

61 Restructure to honest capitalism and your employed working hours drop by half even as all enjoy a quality, secure, life. This requires sharing the remaining “productive” jobs and equal pay for equally-productive labor.

62 Addressing the producers of our wealth, private industry, completes this economic thesis. Each region of the world, each nation, each region of a nation, each state, each county, each community, and each entrepreneur (that includes you) must have equal rights to their share of both created and saved finance capital (created money and savings).

63 With those full and equal rights within the “community process,” entrepreneurs will fill every niche within the production-distribution process which entails most economic activity and is properly privately operated.

64 Here is what I want you to take home. There are 168 descriptive words in those past 4 slides that create a full economic, property-rights-law thesis, providing full and equal rights for everybody.

You can follow those flows of money and commerce in your head and we will verbally do so now. Socially collected resource rents and bank profits run governments, build infrastructure, and pay for education, health care, and retirement which is the community process. Those wages—plus those of private industry—pay for food, fiber, shelter, and recreation. Entrepreneurs, providing the greater share of those wages, fill every private industry niche within the economy and funding is available.

There is your fully operational economy. Both the community process and private industry are fully visible. Thousands of books can be written expanding from this foundation. But, to avoid waste, monopolization, hunger, poverty, and war—which consumes over half our resources, wealth, and labor—an honest social structure must be built upon the principles of this simple, 170 word, economic treatise.

The title of my next book might be, “Honest capitalism, Honest Socialism, and Honest Comunitarianism: They are all the same.” This presentation, fully downloadable, will be on our website.

65 Here are those 170 words. They will be up for you to study and copy during the question and answer period. The possibilities of full and equal rights are endless so I will stop here. Thank you and I will now take questions.
69 This slide identifies the cause of hunger and poverty amongst plenty. The cause of hunger and poverty is property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free. The next slide is the cure.

70 These are the 170 words that create a full economic, property rights law, thesis to eliminate hunger and poverty.

Additional discussions during the question and answer period

  • Expanding wealth starts at roughly 60% of annual profits. A large share is consumed through conspicuous consumption. But unearned accumulated wealth steadily becomes a greater and greater share of all finance capital. Earned finance capital and unearned finance capital is continually interchanging with the unearned share becoming larger and larger. Earnings from unearned wealth is unearned wealth. After all, you can’t rob a bank, invest that money, get caught 10 years later, and keep those profits. Both the money extracted from you and me and the profits made on that money is properly ours. For the past 35 years, all the wealth produced by the efficiency gains of technology, 30% per decade compounded, and a part of what once went to labor, have gone to capital. This is not seen because wives went to work to make up the shortfall. But the unearned share of capital simply became larger and larger, the out of balance ratio between labor and capital became a house of cards, and it all came crashing down in today’s worldwide crisis. That is the 50 year Nikolai Kondratieff Cycle with the added factor of plunder by trade coming to an end further unbalancing the unequal balance.
  • Where the economies of the developed world must collapse before they can restructure, the plunder by trade system is collapsing and, assuming they ally together (preferably federating) the developing world can restructure.
  • How did such an inefficient social structure evolve? Throughout the past 800 years and yet today only powerbrokers protecting their monopoly position created these monopolization laws. Due to the immense wealth appropriated from you, Congress is bought and paid for. That makes it their congress, not yours.
  • You are the future leaders of the world and with this knowledge you can reach your fellow citizens just as I hope I am reaching you today. Study what I have pointed out to you carefully. Study current classics and note their shortcomings. Thorstein Veblen, Stuart Chase, Ralph Borsodi, John Stuart Mill, Alfred Marshal, and others, all classics, were on the right trail. But they did not quantify the waste they saw nor did they work from the point that aristocratic property rights law had been applied to nature’s wealth denying others their rightful share.
  • The viability of this school of thought can be validated by computer modeling. Get your education and study the economic classics. If you study deeply on what you have learned today, you will realize most those economists were locked into supporting unequal property rights law, as applied to nature’s resources and technologies, denying others their rightful share of what nature offers to all for free. Once you realize that professors did dare not challenge current belief systems until this current worldwide financial collapse, you will breeze through most those classes. If you see what I see, write your books from the simple foundation the above mentioned economists and I have laid out. I don’t care if together you write 1,000, 10,000, or 100,000 books, I assure you that every one of them will be different. If built on the fundamentals of full and equal rights (this school of thought) each will address the simplicity of eliminating poverty and hunger.

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Please help us get this simple thesis on elimination of poverty, hunger, and war to the world (newspaper editors, listserves, links from webpages, your contacts, etc.).

With it we reach anybody and everybody in 20 minutes.

Put this thesis into your own arguments and develop your skills for quickly reaching people on subjects dear to your heart.

With the exception of insanity, all problems will be at least partially alleviated and the world’s gravest problems will be eliminated.

Thank you. Respectfully, J.W. Smith and the IED team

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