In electronic science, potential energy is stored in a capacitor instead of a spring. This property is called capacitance instead of elasticity or stiffness.
(2) In the science of physical mechanics, the phenomenon of kinetic energy is associated with a physical property called inertia or mass, and can be represented by a mass or a flywheel in motion.
In electronic science, kinetic energy is stored in an inductor (in a magnetic field) instead of a mass. This property is called inductance instead of inertia.
(3) In the science of physical mechanics, the phenomenon of energy dissipation is associated with a physical property called friction or resistance, and can be represented by a dashpot or other device which converts system energy into heat.
In electronic science, dissipation of energy is performed by an element called either a resistor or a conductor, the term "resistor" being the one generally used to express the concept of friction, and the term "conductor" being generally used to describe a more ideal device (e. g., wire) employed to convey electronic energy efficiently from one location to another. The property of a resistance or conductor is measured as either resistance or conductance reciprocals.
In economics these three energy concepts are associated with:
(1) Economic Capacitance — Capital (money, stock/inventory, investments in buildings and durables, etc.)
(2) Economic Conductance — Goods (production flow coefficients)
(3) Economic Inductance — Services (the influence of the population of industry on output)
All of the mathematical theory developed in the study of one energy system (e. g., mechanics, electronics, etc.) can be immediately applied in the study of any other energy system (e. g., economics).
MR. ROTHSCHILD'S ENERGY DISCOVERY
What Mr. Rothschild had discovered was the basic principle of power, influence, and control over people as applied to economics. That principle is "when you assume the appearance of power, people soon give it to you."
Mr. Rothschild had discovered that currency or deposit loan accounts had the required appearance of power that could be used to INDUCE PEOPLE [WC emphasis] (inductance, with people corresponding to a magnetic field) into surrendering their real wealth in exchange for a promise of greater wealth (instead of real compensation). They would put up real collateral in exchange for a loan of promissory notes. Mr. Rothschild found that he could issue more notes than he had backing for, so long as he had someone's stock of gold as a persuader to show to his customers.
Mr. Rothschild loaned his promissory notes to individuals and to governments. These would create overconfidence. Then he would make money scarce, tighten control of the system, and collect the collateral through the obligation of contracts. The cycle was then repeated. These pressures could be used to ignite a war. Then he would control the availability of currency to determine who would win the war. That government which agreed to give him control of its economic system got his support.
Collection of debts was guaranteed by economic aid to the enemy of the debtor. The profit derived from this economic methodology made Mr.
Rothschild all the more able to extend his wealth. He found that the public greed would allow currency to be printed by government order BEYOND THE LIMITS [WC emphasis] (inflation) of backing in precious metal or the production of goods and services (gross national product, GNP).
APPARENT CAPITAL AS "PAPER" INDUCTOR
In this structure, credit, presented as a pure element called "currency, " has the appearance of capital, but is, in fact, negative capital. Hence, it has the appearance of service, but is, in fact, indebtedness or debt. It is therefore an economic inductance instead of an economic capacitance, and if balanced in no other way, will be balanced by the negation of population (war, genocide). The total goods and services represent real capital called the gross national product, and currency may be printed up to this level and still represent economic capacitance; but currency printed beyond this level is subtractive, represents the introduction of economic inductance, and constitutes notes of indebtedness.
War is therefore the balancing of the system by killing the true creditors (the public which we have taught to exchange true value for inflated currency) and falling back on whatever is left of the resources of nature and regeneration of those resources.
Mr. Rothschild had discovered that currency gave him the power to rearrange the economic structure to his own advantage, to shift economic inductance to those economic positions which would encourage the greatest economic instability and oscillation.
The final key to economic control had to wait until there was sufficient data and high-speed computing equipment to keep close watch on the economic oscillations created by price shocking and excess paper energy credits — paper inductance/inflation.
BREAKTHROUGH
The aviation field provided the greatest evolution in economic engineering by way of the mathematical theory of shock testing. In this process, a projectile is fired from an airframe on the ground and the impulse of the recoil is monitored by vibration transducers connected to the airframe and wired to chart recorders.
By studying the echoes or reflections of the recoil impulse in the airframe, it is possible to discover critical vibrations in the structure of the airframe which either vibrations of the engine or aeolian vibrations of the wings, or a combination of the two, might reinforce resulting in a resonant self-destruction of the airframe in flight as an aircraft. From the standpoint of engineering, this means that the strengths and weaknesses of the structure of the airframe in terms of vibrational energy can be discovered and manipulated.
APPLICATION IN ECONOMICS
To use this method of airframe shock testing in economic engineering, the prices of commodities are shocked, and the public consumer reaction is monitored. The resulting echoes of the economic shock are interpreted theoretically by computers and the psycho-economic structure of the economy is thus discovered. It is by this process that partial differential and difference matrices are discovered that define the family household and make possible its evaluation as an economic industry (dissipative consumer structure).
Then the response of the household to future shocks can be predicted and manipulated, and society becomes a well-regulated animal with its reins under the control of a sophisticated computer-regulated social energy bookkeeping system.
Eventually every individual element of the structure comes under computer control through a knowledge of personal preferences, such know ledge guaranteed by computer association of consumer preferences (universal product code — UPC — zebra-stripe pricing codes on packages) with identified consumers (identified via association with the use of a credit card and LATER A PERMANENT "TATTOOED" BODY NUMBER [WC emphasis] invisible under normal ambient illumination....
THE ECONOMIC MODEL
... The Harvard Economic Research Project (1948-) was an extension of World War II Operations Research. Its purpose was to discover the science of controlling an economy: at first the American economy, and then the world economy. It was felt that with sufficient mathematical foundation and data, it would be nearly as easy to predict and control the trend of an economy as to predict and control the trajectory of a projectile. Such has proven to be the case. Moreover, the economy has been transformed into a guided missile on target.