NWO Rev Doc 4

Testing Let the prices and total sales of commodities be given and symbolized as follows:  Commodities Price Function Total Sales alcoholic beverages A A beef B B coffee C C gasoline G G sugar S S tobacco T T unknown balance U U Let us assume a simple economic model in which the total number of important (staple) commodities are represented as beef, gasoline, and an aggregate of all other staple commodities which we will call the hypothetical miscellaneous staple commodity 'M' (e.g., M is an aggregate of C, S, T, U, etc.). 

Example of Shock Testing Assume that the total sales, P, of petroleum products can be described by the linear function of the quantities B, G, and M, which are functions of the prices of those respective commodities.  

P = aPG B + aPG G + aPM M 

Then where B, G, and M are functions of the prices of beef, gasoline, and miscellaneous, respectively, and aPB, aPG, and aPM are constant coefficients defining the amount by which each of the functions B, G, and M affect the sales, P, of petroleum products. We are assuming that B, G, and M are variables independent of each other.  

If the availability or price of gasoline is suddenly changed, then G must be replaced by G + G. This causes a change in the petroleum sales from P to P + P. Also we will assume that B and M remain constant when G changes to G + G.  

(P + P) = aPB B + aPG (G + G) + aPMM.  

Expanding upon this expression, we get  

P + P = aPB B + aPG G + aPG G + aPM M  

and subtracting the original value of P we get for the change in P  

Change in P = P = aPG G  

Dividing by G we get  

aPG = P / G .  

This is a rate of change in P due only to an isolated change in G, G.  

In general, ajk is the partial rate of change in the sales effect j due to a change in the causal price function of commodity k. If the interval of time were infinitesimal, this expression would be reduced to the definition of the total differential of a function, P.  

When the price of gasoline is shocked, all of the coefficients with round G (2G) in the denominator are evaluated at the same time. If B, G, and M were independent, and sufficient for description of the economy, then three shock tests would be necessary to evaluate the system.  There are other factors which may be represented the same way. 

For example, the tendency of a docile sub-nation to withdraw under economic pressure may be given by where G is the price of gasoline, WP is the dollars spent per unit time (referenced to say 1939) for war production during 'peace' time, etc. These quantities are presented to a computer in matrix format as follows:  and  X1 = G Y1 = P - KP X2 = B Y2 = F - KF X3 = etc.Y3 = etc. 

Finally, inverting this matrix, i.e., solving for the Xk terms of the Yj, we get, say,  [bkj] [Yj ] = [Xk] . 

This is the result into which we substitute to get that set of conditions of prices of commodities, bad news on TV, etc., which will deliver a collapse of public morale ripe for take over.  

Once the economic price and sales coefficients ajk and bkj are determined, they may be translated into the technical supply and demand coefficients gjk, Cjk, and 1/Ljk.  Shock testing of a given commodity is then repeated to get the time rate of change of these technical coefficients.  

Introduction to Economic Amplifiers 

Economic amplifiers are the active components of economic engineering. The basic characteristic of any amplifier (mechanical, electrical, or economic) is that it receives an input control signal and delivers energy from an independent energy source to a specified output terminal in a predictable relationship to that input control signal.  

The simplest form of an economic amplifier is a device called advertising.  

If a person is spoken to by a T.V. advertiser as if he were a twelve-year-old, then, due to suggestibility, he will, with a certain probability, respond or react to that suggestion with the uncritical response of a twelve-year-old and will reach into his economic reservoir and deliver its energy to but that product on impulse when he passes it in the store. 

An economic amplifier may have several inputs and output. Its response might be instantaneous or delayed. Its circuit symbol might be a rotary switch if its options are exclusive, qualitative, "go" or "no-go", or it might have its parametric input/output relationships specified by a matrix with internal energy sources represented.

Whatever its form might be, its purpose is to govern the flow of energy from a source to an output sink in direct relationship to an input control signal. For this reason, it is called an active circuit element or component.  

Economic Amplifiers fall into classes called strategies, and, in comparison with electronic amplifiers, the specific internal functions of an economic amplifier are called logistical instead of electrical.  

Therefore, economic amplifiers not only deliver power gain but also, in effect, are used to cause changes in the economic circuitry.  

In the design of an economic amplifier we must have some idea of at least five functions, which are: 

8. the available input signals  

9. the desired output-control objectives,  

10. the strategic objective,  

11. the available economic power sources,  

12. the logistical options.  

The process of defining and evaluating these factors and incorporating the economic amplifier into an economic system has been popularly called game theory.  

The design of an economic amplifier begins with a specification of the power level of the output, which can range from personal to national. The second condition is accuracy of response, i.e., how accurately the output action is a function of the input commands. High gain combined with strong feedback helps to deliver the required precision.  

Most of the error will be in the input data signal. Personal input data tends to be specified, while national input data tends to be statistical.  

Short List of Inputs 

Questions to be answered:  o what  o where  o why  o when  o how  o who  

General sources of information:  of telephone taps,  of analysis of garbage  of surveillance  of behavior of children in school  

Standard of living by:  o food  o shelter  o clothing  o transportation  

Social contacts:  o telephone - itemized record of calls  o family - marriage certificates, birth certificates, etc.  o friends, associates, etc.  o memberships in organizations  o political affiliation  

The Personal Paper Trail

Personal buying habits, i.e., personal consumer preferences: o checking accounts  o credit-card purchases  o "tagged" credit-card purchases - the credit-card purchase of products bearing the U.P.C. (Universal Product Code)  Assets:  o checking accounts  o savings accounts  o real estate  o business  o automobile, etc.  o safety deposit at bank  o stock market  Liabilities:  o creditors  o enemies (see - legal)  o loans  

Government sources (ploys)*:  o Welfare  o Social Security  o U.S.D.A. surplus food  o doles  o grants  o subsidies  

* Principle of this ploy -- the citizen will almost always make the collection of information easy if he can operate on the "free sandwich principle" of "eat now, and pay later."  

Government sources (via intimidation):  o Internal Revenue Service  o OSHA  o Census  o etc.  Other government sources -- surveillance of U.S. mail.  

Habit Patterns -- Programming 

Strengths and weaknesses:  o activities (sports, hobbies, etc.)  o see "legal" (fear, anger, etc. -- crime record)  o hospital records (drug sensitivities, reaction to pain, etc.)  o psychiatric records (fears, angers, disgusts, adaptability, reactions to stimuli, violence, suggestibility or hypnosis, pain, pleasure, love, and sex)  

Methods of coping -- of adaptability -- behavior:  o consumption of alcohol  o consumption of drugs  o entertainment  o religious factors influencing behavior  o other methods of escaping from reality  Payment modus operandi (MO) -- pay on time, etc.:  o payment of telephone bills  o energy purchases  o water purchases  o repayment of loans  o house payments  o automobile payments  o payments on credit cards  

Political sensitivity: o beliefs  o contacts  o position  o strengths/weaknesses  o projects/activities  

Legal inputs -- behavioral control (Excuses for investigation, search, arrest, or employment of force to modify behavior)  o court records  o police records -- NCIC  o driving record  o reports made to police  o insurance information  o anti-establishment acquaintances  National Input Information Business sources (via I.R.S., etc):  o prices of commodities  o sales  o investments in  ƒ stocks/inventory  ƒ production tools and machinery  ƒ buildings and improvements  ƒ the stock market  

Banks and credit bureaus: o credit information  o payment information  Miscellaneous sources:  o polls and surveys  o publications  o telephone records  o energy and utility purchases.

Short List of Outputs

Outputs -- create controlled situations -- manipulation of the economy, 

hence society -- control by control of compensation and income.