A Prekarian’s Prediction

 

Those who are familiar with my fictional work know that I built a case for Universal Basic Income  [UBI] [I called it Basic Pay] in my podcast fictional serial “The Jonker Memorandum” which I began writing in 1994.

 

As part of that, I have previously mentioned that I also built a case for financing Basic Pay. At that time [the ‘90s] the source for basic pay, was based on the regressive idea of using the Known Tax base, because that was how it panned out in the old system.

 

We [ordinary people] didn’t know then about DATA: and how much it could be worth. Plus I was also writing fiction; and as someone who taught applied economics at high school level, was constantly provoked by wonderfully questioning, clever children, about how this thing I called “Basic Pay” [implied from such glorious SciFi writers as Heinlein and Asimov who called it “credits”] could be paid for.

 

In 1973, the subsequently proved prophet of “Future Shock” change: Alvin Toffler, wrote, in an article penned for Encounter Magazine: “What I have to say about the relationship of laws to life in a period of social revolution is more in the nature of notes and ruminations than a set of fixed or finished ideas”

 

So, in the spirit of Toffler’s musings, below in 220 syllables using my Xrappzi© poetry model, I have set out my “musings” for a case for Universal Basic Income: and shown how payment is already implicit in our newly evolved reality. These consolidated musings develop on previous musings in three blogs last year.

 

My purpose now with my 220 syllables below is to present some opportunistic political grouping out there, on the left, right or centre [preferably centre] amongst all the popular frenzy of political activity, with this understanding.

 

My suspicion is that some hungry Political Party, that actually grasps this reality, that all the comfortably employed Kleva’s seem  to be missing, that the Data Revolution has the potential to capture the swelling centre ground of the political spectrum. That is the part of society Professor Standing calls the “New Precariat”.
 

This space up to now seems crowded out by radicals at either end of an increasingly, obsolete political spectrum.

 

The Yellow Vest movement in Paris for instance could suddenly find a cause to riot about instead of simply venting rage.  They could now march to demand that “#Data must share Rent”.

 

Economic Rent btw, being an idea formulated by the “Greats” of Economic history, such as Adam Smith and David Ricardo: and is completely absent in contemporary Economic textbooks… that in its quaint way completely ignore the reality that the financialised economy in which the west now lives is, as Professor Steve Keen calls it a “Rentier” economy.

 

Happiness is not good for radicals of any end. Happiness however should be the goal of all humans surely. In other words unlike all current futurists; and including the usually perceptive Professor Harari, who in his “21 Lessons for the 21st Century”, also sees UBI as some form of welfare payment.

 

Here it is then in 10 x 22 Xrappzi© syllables.

 

WelfareVersusUBI UBINotMoneyForNothing. DataMustShareRent

 

Welfare

IsToChari                       

TyWhatNeitherAreTo                                                            

DataWhichNowPresentsOurKnown                                               

Future.

 

LeftOf                                                                                             

CentreRightOf                           

CentreFocusOnThe                                                               

MiddleWherePrekarianPow                                                  

ErStands.

 

WeWho                                                                                          

SavedTheWorldAnd              

FailedToValueWhatWe                                                                 

GaveAreNowCondemmedToPov                                              

Erty?

 

InPlace                                                                                             

OfGlobalSta                                    

BilityAsWeReach                                                               

ForTheStarsWeGoNowToRage                                                      

InBars.

 

Struggle                                                                                           

HardAgainstIr                                  

RelevanceFollowing                    

DispossesionOfOurMind’s                                                           

QuaintPart.

 

It’sNot                                                                                            

AGrantNotA                           

Favour.ThereToReward                      

AllWhoSlaveUnpaidToSubmit                                                  

DATA.

 

Multi                                                                                    

PlyRawData’s                                     

ValueDemandOurDes                         

TinyReachGrabTheMeanest                                                     

Centre.

 

DATA                                                                   

MustShareRent                           

TodayPayForBytesAs                                

ForOurOilItshallNotSpoilTheChild                                                 

ForOnce.

 

DATA                                                             

ComesFromHuman                                                                

MindsMinedTodayForRent                                                    

HoorayColonisersOfMind                                                              

MustPay.

 

ForBytes                                                                                         

ByZettaTril                                                                

LionsAcquiredForFree                                                              

ThatIsMoneyForNothingNot                                                         

ForMe. 

 

SinceWe                                                                                          

KnowItWorksSo                       

WellWeNowDemandOur                                          

ShareOfRentYouGetFromWeWho                                            

GiveIt

 

Cheers.


!NiK[‘17519]

  

                                                                                                                                                        

Revelations 501…

Note: You may have to deal with unexpected spelling differences. How you deal with them presents you with a chance to measure yourself. It represents what was said of Nietzsche: someone I once had the privilege to play, in a live stage performance in the year 2000, primarily for the world `Nietzsche Konference”. “It could be said that the job of the philosopher is to unsettle our fixed certainties and challenge our Konviktions.”


In my previous blog I was exploring an idea that is being bandied about kurrently, regarding the [so-called} “Retreat of Liberalism”. This means that I am investigating further why the spirit of liberalism [whatever it is] is running out of relevance for so many people.


In the process the word “Revelation” sneaked unexpektedly into my range of thought this past week. I was looking for a synonym for “suddenly”, a word I despise using and always go in search for more interesting options, notwithstanding that some things are simply: ‘suddenly’, like the neighbour’s tree crashing into my garden in a ferocious storm three nights ago, and along with “unexpektedly”. So Revelations was, surprisingly, an option for a choice.


So this had me thinking about Revelations, the word. The word it self… not the denotative idea that it relates to a chapter in a book, otherwise described as a collage of apocryphal histories. ‘The Revelation” was a future that, according to many, has already arrived.


Somehow I automatically associated the word Revelation with this particular closing chapter and such ideas as apocalypse, prophecy and illumination… Perhaps for a reason that follows shortly… So it was odd to find the word connotatively associated with words like: truth, suddenly, discovery, inexpectation, and disclosure… in addition to prediction.

It also confirmed for me that the issue affecting Liberalism… also fell into the category of revelation.


So such a truth in ‘revelatory’ [sic] format was that liberals, it would seem, have become alienated from their kore society, through an obsession with ‘others’ and being ‘nice’ to them. And hence it seems, have learned/chosen to despise those now called the “left behind”. They are also not able to see why; because they are, like others of other ideological pursuasion, in a memic cage around which they tramp frantically.


The more specifically, standard view of the word “Revelation”, as the key word referencing the future, was forcefully introduced to me on an historical [for me] occasion, many dekades back, when, in the company of some others: we were harangued at gunpoint, for a number of hours, by a man calling himself a ‘Krusader for Truth’.


And “Revelations” [the book of one, John the Divine] was the subject of that hostage period declamation. That and some THEY type fellows who were participating in what has now become an almost stereotypical, devious ‘conspiracy to take over the world thing’; enslave people, or do something more elusively presented: and forcefully tested: to check that we were listening.


Chiefly we [who were being harangued] were impressed with some idea that he [the Krusader] was ‘chosen’ and would soon ‘vanish’ in some kind of alleged “Rapturous awakening” with destiny… And we in the room presumably would be left in the shit


Fortunately violence was/still is such a normal part of our lives that calmness prevailed. One should always avoid arguing with a man holding a gun in his hand… Especially when everyone else in the room has got a few of their own, available: at a hand’s breadth distance from their bodies… [It was the old days remember].


So the fellow eventually, ran out of rant and buggered off… and we finished drinking the beer he’d interrupted.


I fictionalized a more satisfactory version of that small event in my life, and gave the nub of the scene as a back-story to one of my favorite characters in the Buffalo Hunters: which you can obtain at Amazon.com.http://amzn.to/2FSOgwq
[Hint there are about forty books on Amazon with that title. Only one looks like mine … a different kind of ‘buffalo’: It is an Urban Thriller.]


Nonetheless; over the years that followed, I travelled on business to many, many parts; far away and usually by the end of my time there, which was invariably three to five days, I had caught up my notes and run out of stuff to read. Mobiles weren’t invented yet; and an airplane usually had to be caught at about 3 am. … And I didn’t need to be caught out napping, for a flight from some vanishing point to another.


So there was often a book called Gideon, always lying somewhere in most of the rooms, I inhabited briefly… And there was always this crazy chapter: Revelations that I would read, against the background of that memorable afternoon. Never made much sense to be honest but it was always puzzling enough, to keep me awake until the call that the taxi had arrived for the airport. I could also never really pin down all his ranting references.


Nonetheless after my own personal apocalypse a quarter century or so ago; what I call a ‘Zen Konspiracy’ took hold of me; and became my personal Revelation: discovery and truth.


I gradually decided that had to write to write about those who remained, in that “Krusader’s” world of the unchosen. That krusader chappie ranted about being part of the chosen that would vaporize somehow: and be rescued from what had to come. Apparently only enough people to fill a handful of football stadia were to be “chosen”… The rest of us were left behind.


Based on some odd things that are associated with that experience, I decided that the UNCHOSEN’…. That is All of us, who read this … assuming [I write fiction remember] that the prophesied apocalypse has actually begun…. were the ‘Nicer’ people… And I would describe the world in which they would live, when the other lot vanished one day…. And in hope there was no prophesied apocalypse… in the same way that 2012 came and went I would simply evaluate the world that is emerging.


And so I invented my own trigger for the apocalypse… What I called the “Nuclear triple double tap” that produced an harmonic dissonance in the Planet’s rhythm, that I called the Ringing… In other words: where the planet lost its tune and went into dischord. So much for Revelations… What was of course more interesting were the other meanings that I serendipitously encountered.


For instance another more recent “Revelation” for me this week, was the idea that a group of Pomeranian [UK] Cabinet Ministers could, at command of their leader Theresa May, speed-read on steroids, like mad.


They apparently demonstrated that skill by receiving, reading, digesting and formulating comment, on a 585 page document that was to be the separation agreement to achieve the idea called BREXIT. [Note that while each page may only have had one word on it, most legal documents have at least 300… Meaning: as much as 175,000 words]


Apparently to limit leakages to the ‘norty’ press, the cabinet were allegedly handed this 585 odd page copy of the proposal, some three minutes before going into a five-hour cabinet harangue on the subject…


The realization that a coherent explanation of the withdrawal agreement [in the 585 pages] could be grasped in less than 3 minutes; and was accepted by all offical kommentators on all channels as realistic, was revelationary [sic].


The time apparently allocated, 3 minutes, was also dramatically Revelationary in another way. For much of my life in the country where I live it was common cause that a person could be tried, found guilty, sentenced and sent away for life… for what was called a “pass” offence, in approximately three minutes. That idea was considered so justifiably heinous that the world united to help rid us of our bad government. We’re busy again right now again dealing with another bit of bad government. That one can decide the legal future of a country, in roughly the same time was to say the least, a mind blowing thought. Presumably the Pom Parliament will not be so easily gulled… at least two Cabinet members demonstrated a measure of resilience.


Another interpretive view of ‘revelation’ was the idea of discovery. In The Jonker Memorandum, [the podcast series associated with this web site,] listeners would remember that the ‘End of the World’ hypothesis, forming the back-story, to the main story, began with a sequence of underground nuclear detonations, that kolektively were referred to [by me] as a “Nuclear triple double tap”. 1998 was the year that I chose for a sequence of events [that actually occurred] during that year, in order, to “end the world” in a fictional sense.


I did this solely so that I could justify introducing Universal Basic Income into the world and working out how it could be paid for … And knowing now [i.e. what I didn’t ‘know’ then] that the payment source already exists; and has been unilaterally discounted to zero without thought or konsideration … That was another version of Revelation recently… Discovery again.


Disclosure: [Another version of revelation] I always understood that it was standard for writers embarked on futuristic fiction to describe how people in the future lived on “Credits”… But the teenage children with whom I exchanged classroom views on matters involving accounting, business and economics for the past quarter century, would challenge me with: What does ‘credit’ mean? How does it happen? and further: WHY WHY WHY… as was their responsibility.


All as ways of avoiding the really hard stuff like remembering what was in the textbook… Not my curriculum preferred/ determined stuff: unless you are explaining Adam Smith’s idea of “Economic Rent”… So you got UBI and as soon as my personal Revelation this year relevant to the vexing issue of how it should be paid for arrived, I shared it with you all on BLOGS: Invisible friend, Kolonisation of the Mind, And Exchange Value. [I did it quickly in case the evildoers, whoever they might be, returned to stop the rot.]


It is my konsideration that eventually the idea presented being so logical and so “THERE” and “AHA!!!” it will be shared by a million or more people. The momentum will bring it about by organic Revelation. Not to mention that as a free market proselytizer by choice: I don’t see this solution as being necessarily State sponsored… where Mr Luce’s faultline has its home. But for that you will have to follow the stories.


Notwithstanding this cluster of variables on the theme ‘Revelation’; there was another, far more scary discovery ‘revelation’, associated with the more traditional ‘prediction type ‘revelation’. Wikipedia [a source, subject to normal caveats and possible ‘fake news’ info] informs me that as many as 53% of all major Hiroshima and bigger scale seismic events over the past 2500 years have occurred since 1998. Not a Revelation I relish.


For the record as at last December the total number recorded that fitted the criteria [6 or more on the Richter scale] over some 2500 years was, as at start 1998: 413. In other words about 11 every decade… less than 2 per year, on a gently escalating upward curve. Since 1998 however; there had, by last December, been 414. More specifically, roughly 20 per year


And they keep happening.


Now I accept that I am arriving at this conclusion from a possibly slightly inaccurate source, to the extent that we count some, and not others, from the past; that either were not measured and/or unknown. But of the known’s: 53 % and rising is an uncool Revelation in the empirical discovery category. [Nonetheless: until it becomes official, I shall continue to practice the writing of fiction: by definition imaginary… Ergo: some random bloggist’s rambling on a favored theme is simply self-serving and not of any relevance… perhaps… In my fictional world things get bad for places on the coast… And I don’t live near a coast.]


So to summarize: a smattering of Revelationary empirics and how do they relate to the liberal idea:


My first revelationary experience relevant to liberalism [whatever it is supposed to be] came via the indefatigable Mr. T. who as we know is President of the Firmian Union. Like the rest of the world I watched his 90-minute session with the media on the morning after his Republican Party lost the House of Representatives. How would he react? Was the pressing question…. Would he bluster and prevaricate or what?


One of the ‘implacable rules’ of my classroom over many decades was/is the dictum that there is no such thing as failure, only opportunities to recharge and get it right. Pres T…. took the road sometimes travelled; and once he had heaped praise on his winners and disparaged, brutally in the case of one vanishing rep, the losers; especially those who had been his enemies, he presented the prospect of an amazing bargain deal: that could be just what the people need. In fact he was almost “liberal”.


In response we listened to a quorum of the best that the broadly unsympathetik media could offer. They who questioned Mr.T were, for the most part, dancing with such frenzy on their kollektive memes, it was its own revelation. No one actually demonstrated that they even marginally grasped the significance of what he offered; they were so intent on digging up their own bones… they simply discounted it and heard NO thing.


I was deliciously surprised by his approach… and instantly grasped its significance to one who plays the “Long game”. And the nature of the risk that he spelled out. We have routinely viewed ideologues at work where we live. Liberals, assuming any of those kolektion of press corps persons would be called Liberals [whatever they weren’t] demonstrated a response so ideologically defined it completely cancelled the name… Liberal. As ‘Bones” would have put it they were operating on “Outmoded preconceptions”. They were unable to grasp the inherent pragmatism; and lost the moment to share in the idea that ‘the people’… whom Liberals apparently adore… Do not have to come second.


A reinforcing but ultimately equally convincing revelation regarding what has become the ‘Achilles heel’ of this [so-called] Liberalism ethic, came from a different source. An English journalist called Edmund Luce has published a heavily praised book, setting out the case for “the Retreat from Liberalism” [Abacus edition: Retreat from Liberalism]. And up to page 196 it was a solid and thoroughly absorbing read, with some stunningly memorable observations.

And then the wheels came off in one line… and revealed his passion, as just a ‘nicer’ form of ideological dékolleté. He also revealed implicitly why a contemporary version of Liberalism is running on empty. In the next few paragraphs we shall explore why.


The ‘Rent Seekers’, or Rentier class, as economist Steve Keen korektly kalls the parasitic elements, that feed on the globalised casino market economy… The only game in town really. These ‘Rentiers’ have, through their greed and indulgence, sucked the relevance from the lives of the ordinary folk left behind.

Their orgy of self-enrichment over the past few decades has been good, for the rent konfirmers [they who got rich]; and their friends. However the entire system is pretty well running on empty. This is a reason for the growing global economic slowdown that no one wants to discuss. Simply the businesses of the world are running out of kustomers… More and more reports of robot takeovers are being noted even as I write this.

I hear right now a local Trades Union group called NEHAWU making a radio appeal for its members to have their jobs guaranteed after some form of automation is introduced into their world. The AM Live phone-in host, a well-known local “liberal” journalist and radio kommentator, simply acknowledged the kall and refused to diskuss the worker’s kolektive terror… simply moved on the next kaller.


The “gig” economy sucks and is grossly overrated and for many is already a place of desperation. A point interestingly and lucidly made be the same Mr. Luce: who simply has missed how the dots should join up



For this ‘service based’ system to be sustained: it is necessary to keep nourishing the base. Watering the garden, as it were. Too great a disparity between top and middle to lower … is fundamentally bad for sales… and will be the core trigger for the next almost pending recession, which may well persist for longer than considered normal given the massive impetus fuelled by the era of Quantitative Easing [QE]: and assuming we resist large scale warfare.



Enter UBI [Universal Basic Income]. What Mr. Luce and thus most so-called Liberals [whatever they are] missed was that QE was no more than UBI for the “Betters” [if I may use a slang feudal term]



And thus UBI is not some concession for the working poor… and the universal ‘Dalits’ of society, as such a worthy liberal thought defender as young Edmund Luce, piously intones on page 196 to top paragraph page 197. Then to kompound his broad indifference to ‘our’ working poor he kontinues with the sentence: “We must think more radically than that…”

What kan be a more radical notion than that DATA provides the foundation for the complete transformation of society in a way that only such writers as Heinlein, Asimov and Herbert grasped?



They did not spell it out though. Similarly our author, then changes the subject: leaving us with his ‘inexpektation’… An unfulfilled stillborn revelation; revealing that like all other kommentators currently: he has missed the Revolution it went past so fast. No wonder Liberalism is in retreat… Are they in fact: Left Behind?.



After all, I recently heard Christine Lagarde of the IMF having to point out to a serried group of ‘experts’, on a Bloomberg interview, that they needed to remember that the Fintech variation, that has come to dominate financial activity world–wide today is not yet eight years old… The financial services industry itself, goes back at least five thousand years… And in its present ‘market capitalist’ format, about five hundred years… Until the past few decades their contribution tho GDP was fairly nominal. Now it supercedes many other more traditional sources,. And that is [partially] a result of an eight year old industry FINTECh.



Where I live people call traffic lights: “Robots”, a meme that has survived for the century or so when the first one in the country was heralded in headlines the “Arrival of the ROBOTS”… thanks to Karel Capek’s play RossumsUniversalRobots: a hit of that era in our turf. Luce produces a similar old meme as reflexive response to the helping hand conceptualized through UBI… and as I’ve pointed out, carelessly ignores Quantitative Easing… That for the benefit of those who may be confused was a process whereby, in simple terms, TWENTY odd TRILLION US [Firmian] dollars of imaginary money was given to the “BIG” people so they wouldn’t crash due to their bad lending practices. Interest rates basically ZERO. Robots for traffic lights is in every way an outmoded preconception,or more simply, a bad habit. Believing that basic pay would be bad for worker morale takes outmoded to a new dimension.



So. No. Universal Basic Income is not a handout for the poor… As Salinas piously observed 2500 years ago: “The best thing for the poor is that they were never born…” No. UBI is totally production based AND IS EARNED.



It is simply not Accounted for, like in the income statement of the receivers. And WHY ISN’T IT? Should be the question. There is plenty of whining I note regarding the “curious distortion” that the new techno revolution has produced so little additional productivity… Naturally, when many billions of billions of Bytes a year of data are produced at zero value: and are therefore not accounted for… By definition the creators of data… people: are going to become poorer… They/we are in a formal sense slave workers: something that is supposed to be illegal. Our world has almost instantly become a DATA driven world.



So #DATA must share RENT.


It is rather their/our universal share of the bounty that has resulted from the previously unobtainable access, to all planetary knowledge… at the touch of a finger… and the bundling of all of that information into so-called DATA… something else like fintech that formalized and demokratized a previously inackcessible resource that was the exclusive territory of multiple circles of diminishing “Innies”. This DATA that has, a moment ago really [Specifically, since the past 10% of my life began] transformed the daily running of our lives, is the bounty: to nourish the planet’s progress to the next level of transformation.



Not doing this will fuel the growing rage represented by the shift to right and left of centre parties [assuming such an anomalous pair of descriptions have any form of currency anymore and aren’t simply a pair of obsolete memes] For we are now in an age when the difference is between those people who are okay and keeping up: and those… the majority… left behind. The ElBies. [May include me… I feel deeply left behind]


SHIFT SCENE:



‘That is an idea above your pay station Sir.” She said.

“ There are Data givers and Data takers he replied.” If you are ‘online’, and your data is accessible then a percentage of the value generated is due to the givers.

Hurrah.



SHIFT ENDS



Takeaway.



You have just read/heard brief exchange from my new cluster of novellas [Part four of the Azanian Quartet] I shall present snippets of these in a new marketing thrust for Nicholas Jakari… in the New Year [2019].


NOTE: [Should you be puzzled by this idea ABOUT THE REVENUE SOURCE FOR UBI: please refer to my blog: Kolonisation of the Mind: nicholasjakari.com]



So it has been a time of Revelation: at many levels. Stressful, with major upsets and some glorious highs; and the gift of a life explored: a wonderful gift for a Stanislavskian writer. Time to reflect on each character and where in me they come from.



Eventually the freedom to choose, to appropriate data rents in an equitable manner, may be replaced by the further inequities of present, increasingly, perhaps inevitably, kurrupt practices; as the realization dawns that the world, in our historical understanding of that word: is undergoing a strangely destructive change…. And a good plan may involve taking to the hills: quite literally.

I look forward to sharing more of them with you in a new cluster of stories.



Cheers



!NiK[‘18]

Note: You may have to deal with unexpected spelling differences. How you deal with them presents you with a chance to measure yourself. It represents what was said of Nietzsche: someone I once had the privilege to play, in a live stage performance in the year 2000, primarily for the world `Nietzsche Konference”. “It could be said that the job of the philosopher is to unsettle our fixed certainties and challenge our Konviktions.”


In my previous blog I was exploring an idea that is being bandied about kurrently, regarding the [so-called} “Retreat of Liberalism”. This means that I am investigating further why the spirit of liberalism [whatever it is] is running out of relevance for so many people.


In the process the word “Revelation” sneaked unexpektedly into my range of thought this past week. I was looking for a synonym for “suddenly”, a word I despise using and always go in search for more interesting options, notwithstanding that some things are simply: ‘suddenly’, like the neighbour’s tree crashing into my garden in a ferocious storm three nights ago, and along with “unexpektedly”. So Revelations was, surprisingly, an option for a choice.


So this had me thinking about Revelations, the word. The word it self… not the denotative idea that it relates to a chapter in a book, otherwise described as a collage of apocryphal histories. ‘The Revelation” was a future that, according to many, has already arrived.


Somehow I automatically associated the word Revelation with this particular closing chapter and such ideas as apocalypse, prophecy and illumination… Perhaps for a reason that follows shortly… So it was odd to find the word connotatively associated with words like: truth, suddenly, discovery, inexpectation, and disclosure… in addition to prediction.

It also confirmed for me that the issue affecting Liberalism… also fell into the category of revelation.


So such a truth in ‘revelatory’ [sic] format was that liberals, it would seem, have become alienated from their kore society, through an obsession with ‘others’ and being ‘nice’ to them. And hence it seems, have learned/chosen to despise those now called the “left behind”. They are also not able to see why; because they are, like others of other ideological pursuasion, in a memic cage around which they tramp frantically.


The more specifically, standard view of the word “Revelation”, as the key word referencing the future, was forcefully introduced to me on an historical [for me] occasion, many dekades back, when, in the company of some others: we were harangued at gunpoint, for a number of hours, by a man calling himself a ‘Krusader for Truth’.


And “Revelations” [the book of one, John the Divine] was the subject of that hostage period declamation. That and some THEY type fellows who were participating in what has now become an almost stereotypical, devious ‘conspiracy to take over the world thing’; enslave people, or do something more elusively presented: and forcefully tested: to check that we were listening.


Chiefly we [who were being harangued] were impressed with some idea that he [the Krusader] was ‘chosen’ and would soon ‘vanish’ in some kind of alleged “Rapturous awakening” with destiny… And we in the room presumably would be left in the shit


Fortunately violence was/still is such a normal part of our lives that calmness prevailed. One should always avoid arguing with a man holding a gun in his hand… Especially when everyone else in the room has got a few of their own, available: at a hand’s breadth distance from their bodies… [It was the old days remember].


So the fellow eventually, ran out of rant and buggered off… and we finished drinking the beer he’d interrupted.


I fictionalized a more satisfactory version of that small event in my life, and gave the nub of the scene as a back-story to one of my favorite characters in the Buffalo Hunters: which you can obtain at Amazon.com.http://amzn.to/2FSOgwq
[Hint there are about forty books on Amazon with that title. Only one looks like mine … a different kind of ‘buffalo’: It is an Urban Thriller.]


Nonetheless; over the years that followed, I travelled on business to many, many parts; far away and usually by the end of my time there, which was invariably three to five days, I had caught up my notes and run out of stuff to read. Mobiles weren’t invented yet; and an airplane usually had to be caught at about 3 am. … And I didn’t need to be caught out napping, for a flight from some vanishing point to another.


So there was often a book called Gideon, always lying somewhere in most of the rooms, I inhabited briefly… And there was always this crazy chapter: Revelations that I would read, against the background of that memorable afternoon. Never made much sense to be honest but it was always puzzling enough, to keep me awake until the call that the taxi had arrived for the airport. I could also never really pin down all his ranting references.


Nonetheless after my own personal apocalypse a quarter century or so ago; what I call a ‘Zen Konspiracy’ took hold of me; and became my personal Revelation: discovery and truth.


I gradually decided that had to write to write about those who remained, in that “Krusader’s” world of the unchosen. That krusader chappie ranted about being part of the chosen that would vaporize somehow: and be rescued from what had to come. Apparently only enough people to fill a handful of football stadia were to be “chosen”… The rest of us were left behind.


Based on some odd things that are associated with that experience, I decided that the UNCHOSEN’…. That is All of us, who read this … assuming [I write fiction remember] that the prophesied apocalypse has actually begun…. were the ‘Nicer’ people… And I would describe the world in which they would live, when the other lot vanished one day…. And in hope there was no prophesied apocalypse… in the same way that 2012 came and went I would simply evaluate the world that is emerging.


And so I invented my own trigger for the apocalypse… What I called the “Nuclear triple double tap” that produced an harmonic dissonance in the Planet’s rhythm, that I called the Ringing… In other words: where the planet lost its tune and went into dischord. So much for Revelations… What was of course more interesting were the other meanings that I serendipitously encountered.


For instance another more recent “Revelation” for me this week, was the idea that a group of Pomeranian [UK] Cabinet Ministers could, at command of their leader Theresa May, speed-read on steroids, like mad.


They apparently demonstrated that skill by receiving, reading, digesting and formulating comment, on a 585 page document that was to be the separation agreement to achieve the idea called BREXIT. [Note that while each page may only have had one word on it, most legal documents have at least 300… Meaning: as much as 175,000 words]


Apparently to limit leakages to the ‘norty’ press, the cabinet were allegedly handed this 585 odd page copy of the proposal, some three minutes before going into a five-hour cabinet harangue on the subject…


The realization that a coherent explanation of the withdrawal agreement [in the 585 pages] could be grasped in less than 3 minutes; and was accepted by all offical kommentators on all channels as realistic, was revelationary [sic].


The time apparently allocated, 3 minutes, was also dramatically Revelationary in another way. For much of my life in the country where I live it was common cause that a person could be tried, found guilty, sentenced and sent away for life… for what was called a “pass” offence, in approximately three minutes. That idea was considered so justifiably heinous that the world united to help rid us of our bad government. We’re busy again right now again dealing with another bit of bad government. That one can decide the legal future of a country, in roughly the same time was to say the least, a mind blowing thought. Presumably the Pom Parliament will not be so easily gulled… at least two Cabinet members demonstrated a measure of resilience.


Another interpretive view of ‘revelation’ was the idea of discovery. In The Jonker Memorandum, [the podcast series associated with this web site,] listeners would remember that the ‘End of the World’ hypothesis, forming the back-story, to the main story, began with a sequence of underground nuclear detonations, that kolektively were referred to [by me] as a “Nuclear triple double tap”. 1998 was the year that I chose for a sequence of events [that actually occurred] during that year, in order, to “end the world” in a fictional sense.


I did this solely so that I could justify introducing Universal Basic Income into the world and working out how it could be paid for … And knowing now [i.e. what I didn’t ‘know’ then] that the payment source already exists; and has been unilaterally discounted to zero without thought or konsideration … That was another version of Revelation recently… Discovery again.


Disclosure: [Another version of revelation] I always understood that it was standard for writers embarked on futuristic fiction to describe how people in the future lived on “Credits”… But the teenage children with whom I exchanged classroom views on matters involving accounting, business and economics for the past quarter century, would challenge me with: What does ‘credit’ mean? How does it happen? and further: WHY WHY WHY… as was their responsibility.


All as ways of avoiding the really hard stuff like remembering what was in the textbook… Not my curriculum preferred/ determined stuff: unless you are explaining Adam Smith’s idea of “Economic Rent”… So you got UBI and as soon as my personal Revelation this year relevant to the vexing issue of how it should be paid for arrived, I shared it with you all on BLOGS: Invisible friend, Kolonisation of the Mind, And Exchange Value. [I did it quickly in case the evildoers, whoever they might be, returned to stop the rot.]


It is my konsideration that eventually the idea presented being so logical and so “THERE” and “AHA!!!” it will be shared by a million or more people. The momentum will bring it about by organic Revelation. Not to mention that as a free market proselytizer by choice: I don’t see this solution as being necessarily State sponsored… where Mr Luce’s faultline has its home. But for that you will have to follow the stories.


Notwithstanding this cluster of variables on the theme ‘Revelation’; there was another, far more scary discovery ‘revelation’, associated with the more traditional ‘prediction type ‘revelation’. Wikipedia [a source, subject to normal caveats and possible ‘fake news’ info] informs me that as many as 53% of all major Hiroshima and bigger scale seismic events over the past 2500 years have occurred since 1998. Not a Revelation I relish.


For the record as at last December the total number recorded that fitted the criteria [6 or more on the Richter scale] over some 2500 years was, as at start 1998: 413. In other words about 11 every decade… less than 2 per year, on a gently escalating upward curve. Since 1998 however; there had, by last December, been 414. More specifically, roughly 20 per year


And they keep happening.


Now I accept that I am arriving at this conclusion from a possibly slightly inaccurate source, to the extent that we count some, and not others, from the past; that either were not measured and/or unknown. But of the known’s: 53 % and rising is an uncool Revelation in the empirical discovery category. [Nonetheless: until it becomes official, I shall continue to practice the writing of fiction: by definition imaginary… Ergo: some random bloggist’s rambling on a favored theme is simply self-serving and not of any relevance… perhaps… In my fictional world things get bad for places on the coast… And I don’t live near a coast.]


So to summarize: a smattering of Revelationary empirics and how do they relate to the liberal idea:


My first revelationary experience relevant to liberalism [whatever it is supposed to be] came via the indefatigable Mr. T. who as we know is President of the Firmian Union. Like the rest of the world I watched his 90-minute session with the media on the morning after his Republican Party lost the House of Representatives. How would he react? Was the pressing question…. Would he bluster and prevaricate or what?


One of the ‘implacable rules’ of my classroom over many decades was/is the dictum that there is no such thing as failure, only opportunities to recharge and get it right. Pres T…. took the road sometimes travelled; and once he had heaped praise on his winners and disparaged, brutally in the case of one vanishing rep, the losers; especially those who had been his enemies, he presented the prospect of an amazing bargain deal: that could be just what the people need. In fact he was almost “liberal”.


In response we listened to a quorum of the best that the broadly unsympathetik media could offer. They who questioned Mr.T were, for the most part, dancing with such frenzy on their kollektive memes, it was its own revelation. No one actually demonstrated that they even marginally grasped the significance of what he offered; they were so intent on digging up their own bones… they simply discounted it and heard NO thing.


I was deliciously surprised by his approach… and instantly grasped its significance to one who plays the “Long game”. And the nature of the risk that he spelled out. We have routinely viewed ideologues at work where we live. Liberals, assuming any of those kolektion of press corps persons would be called Liberals [whatever they weren’t] demonstrated a response so ideologically defined it completely cancelled the name… Liberal. As ‘Bones” would have put it they were operating on “Outmoded preconceptions”. They were unable to grasp the inherent pragmatism; and lost the moment to share in the idea that ‘the people’… whom Liberals apparently adore… Do not have to come second.


A reinforcing but ultimately equally convincing revelation regarding what has become the ‘Achilles heel’ of this [so-called] Liberalism ethic, came from a different source. An English journalist called Edmund Luce has published a heavily praised book, setting out the case for “the Retreat from Liberalism” [Abacus edition: Retreat from Liberalism]. And up to page 196 it was a solid and thoroughly absorbing read, with some stunningly memorable observations.

And then the wheels came off in one line… and revealed his passion, as just a ‘nicer’ form of ideological dékolleté. He also revealed implicitly why a contemporary version of Liberalism is running on empty. In the next few paragraphs we shall explore why.


The ‘Rent Seekers’, or Rentier class, as economist Steve Keen korektly kalls the parasitic elements, that feed on the globalised casino market economy… The only game in town really. These ‘Rentiers’ have, through their greed and indulgence, sucked the relevance from the lives of the ordinary folk left behind.

Their orgy of self-enrichment over the past few decades has been good, for the rent konfirmers [they who got rich]; and their friends. However the entire system is pretty well running on empty. This is a reason for the growing global economic slowdown that no one wants to discuss. Simply the businesses of the world are running out of kustomers… More and more reports of robot takeovers are being noted even as I write this.

I hear right now a local Trades Union group called NEHAWU making a radio appeal for its members to have their jobs guaranteed after some form of automation is introduced into their world. The AM Live phone-in host, a well-known local “liberal” journalist and radio kommentator, simply acknowledged the kall and refused to diskuss the worker’s kolektive terror… simply moved on the next kaller.


The “gig” economy sucks and is grossly overrated and for many is already a place of desperation. A point interestingly and lucidly made be the same Mr. Luce: who simply has missed how the dots should join up



For this ‘service based’ system to be sustained: it is necessary to keep nourishing the base. Watering the garden, as it were. Too great a disparity between top and middle to lower … is fundamentally bad for sales… and will be the core trigger for the next almost pending recession, which may well persist for longer than considered normal given the massive impetus fuelled by the era of Quantitative Easing [QE]: and assuming we resist large scale warfare.



Enter UBI [Universal Basic Income]. What Mr. Luce and thus most so-called Liberals [whatever they are] missed was that QE was no more than UBI for the “Betters” [if I may use a slang feudal term]



And thus UBI is not some concession for the working poor… and the universal ‘Dalits’ of society, as such a worthy liberal thought defender as young Edmund Luce, piously intones on page 196 to top paragraph page 197. Then to kompound his broad indifference to ‘our’ working poor he kontinues with the sentence: “We must think more radically than that…”

What kan be a more radical notion than that DATA provides the foundation for the complete transformation of society in a way that only such writers as Heinlein, Asimov and Herbert grasped?



They did not spell it out though. Similarly our author, then changes the subject: leaving us with his ‘inexpektation’… An unfulfilled stillborn revelation; revealing that like all other kommentators currently: he has missed the Revolution it went past so fast. No wonder Liberalism is in retreat… Are they in fact: Left Behind?.



After all, I recently heard Christine Lagarde of the IMF having to point out to a serried group of ‘experts’, on a Bloomberg interview, that they needed to remember that the Fintech variation, that has come to dominate financial activity world–wide today is not yet eight years old… The financial services industry itself, goes back at least five thousand years… And in its present ‘market capitalist’ format, about five hundred years… Until the past few decades their contribution tho GDP was fairly nominal. Now it supercedes many other more traditional sources,. And that is [partially] a result of an eight year old industry FINTECh.



Where I live people call traffic lights: “Robots”, a meme that has survived for the century or so when the first one in the country was heralded in headlines the “Arrival of the ROBOTS”… thanks to Karel Capek’s play RossumsUniversalRobots: a hit of that era in our turf. Luce produces a similar old meme as reflexive response to the helping hand conceptualized through UBI… and as I’ve pointed out, carelessly ignores Quantitative Easing… That for the benefit of those who may be confused was a process whereby, in simple terms, TWENTY odd TRILLION US [Firmian] dollars of imaginary money was given to the “BIG” people so they wouldn’t crash due to their bad lending practices. Interest rates basically ZERO. Robots for traffic lights is in every way an outmoded preconception,or more simply, a bad habit. Believing that basic pay would be bad for worker morale takes outmoded to a new dimension.



So. No. Universal Basic Income is not a handout for the poor… As Salinas piously observed 2500 years ago: “The best thing for the poor is that they were never born…” No. UBI is totally production based AND IS EARNED.



It is simply not Accounted for, like in the income statement of the receivers. And WHY ISN’T IT? Should be the question. There is plenty of whining I note regarding the “curious distortion” that the new techno revolution has produced so little additional productivity… Naturally, when many billions of billions of Bytes a year of data are produced at zero value: and are therefore not accounted for… By definition the creators of data… people: are going to become poorer… They/we are in a formal sense slave workers: something that is supposed to be illegal. Our world has almost instantly become a DATA driven world.



So #DATA must share RENT.


It is rather their/our universal share of the bounty that has resulted from the previously unobtainable access, to all planetary knowledge… at the touch of a finger… and the bundling of all of that information into so-called DATA… something else like fintech that formalized and demokratized a previously inackcessible resource that was the exclusive territory of multiple circles of diminishing “Innies”. This DATA that has, a moment ago really [Specifically, since the past 10% of my life began] transformed the daily running of our lives, is the bounty: to nourish the planet’s progress to the next level of transformation.



Not doing this will fuel the growing rage represented by the shift to right and left of centre parties [assuming such an anomalous pair of descriptions have any form of currency anymore and aren’t simply a pair of obsolete memes] For we are now in an age when the difference is between those people who are okay and keeping up: and those… the majority… left behind. The ElBies. [May include me… I feel deeply left behind]


SHIFT SCENE:



‘That is an idea above your pay station Sir.” She said.

“ There are Data givers and Data takers he replied.” If you are ‘online’, and your data is accessible then a percentage of the value generated is due to the givers.

Hurrah.



SHIFT ENDS



Takeaway.



You have just read/heard brief exchange from my new cluster of novellas [Part four of the Azanian Quartet] I shall present snippets of these in a new marketing thrust for Nicholas Jakari… in the New Year [2019].


NOTE: [Should you be puzzled by this idea ABOUT THE REVENUE SOURCE FOR UBI: please refer to my blog: Kolonisation of the Mind: nicholasjakari.com]



So it has been a time of Revelation: at many levels. Stressful, with major upsets and some glorious highs; and the gift of a life explored: a wonderful gift for a Stanislavskian writer. Time to reflect on each character and where in me they come from.



Eventually the freedom to choose, to appropriate data rents in an equitable manner, may be replaced by the further inequities of present, increasingly, perhaps inevitably, kurrupt practices; as the realization dawns that the world, in our historical understanding of that word: is undergoing a strangely destructive change…. And a good plan may involve taking to the hills: quite literally.

I look forward to sharing more of them with you in a new cluster of stories.



Cheers



!NiK[‘18]

Mental Kolonization: The New, ‘New World invasion’

The Colonization of the Mind:


Never mind 1492: konsider 2018….
Mr. Z meets Kongress


In the fictional world that I have invented: and about which I am currently writing, circa 2037, an anomaly that did not exist before 2011 is remedied. As a result the concept of universal income in our reversion to a pre-industrial era neo-cottage services based economy, has become a reality.


However it is not something ‘given’ for ‘free’’ by the/ or even a/ State organisation… The era of centralized control we have known for the past few centuries rapidly disintegrates under the trend to quantum computing; linked to blockchains [aka distributed ledgers] & crypto currencies. Not to mention a host of corresponding trends and developments as yet as undiscovered: as was DATA at the teenage dawning of the era.


Universal Income becomes a concept based on trillions of micro payments, moving from businesses like Facebook [et al] to data owners, and back…. Creating a virtuous circle of satisfactions where the idea that Governments control all things: is as historical an idea as the one that says happiness is the destiny of humanity.


The future is a decentralized one.


Konfederacy rulz.


Pragmatically this has to happen: in order to sustain what is rapidly evolving into a globally, services based, AI dominated, robotically moved economy.


In that place to which we
Are
Evolving [in my fictional world,
Anyway]
at
Breakneck speed, a majority of
Ordinary people does not
[Apparently] have the com
Petence to do any
Thing more complex than
Shop: and mutter
OMG.



The following piece of abstraction, disguised as poetic form, had a curiously viral progression in that past before 2037… through the annals of day to day existance: and slowly allowed the idea of liberation to filter into conciousness.


The Mind as the New world


We are witness now to what will
In decades to come, be seen as
A most momentous moment: in
The brief history of homo
Sapiens sapiens.
We are witness to
And participants in: the kolo
Nization of the mind.


When we [humans] colonized
[Allegedly empty] land
Back in the 15th cent
Ury; assuming everyone already
Living there
To be irrelevant to
Purpose
Mainly because they were
Undocumented, unlettered and
Innumerate
Primitives. We
[The invaders] simply
Appropriated the land and
Its bounty:
As we had done for
Thousands of years. This bounty
Became a cost
Free
Windfall
[Almost: unearned].


For instance, plundering
Entire mountains of silver in
South
America: bounty; from which
Inordinate profits could
Be generated: with little
Or no regard for
The source.


The most fascinating aspect of the recent interrogation of Mr. Z
Uckerburg by the Congress of the
Firmian elites… Senators and Representatives
Alike
Was the latter persons’ complete incomp
Rehension at the scale of what had
Happened: while they had been busy
Ruminating
On perennial peccadillo’s.


There was a disconcerting sense of
The time machine. Here was
Cortez meeting the
Aztec royalty, who were
Baffled
At this predicted even
Anticipated yet
Unexpected
Arrival.


Mysterious people, with
Serious intentions: and powerful,
Incomprehensible machinery. Then… whoops
Before they could say SH*T!! … They were in
History’s garbage bag.


In effect, the worthy Congresspersons became as one with the beguiled “Natives”, of many colonized lands: faced with the incomprehensible.


Therefore, they trotted
Out their
Memes and
Things; and each, thinking ‘stomach’
First, asked all the
Questions regarding the inhe
Rent trivia of Mr.
Z’s offence.


Not one
However of that
Kolektion of [apparently] f
Undamentally out of touch
Human’s e
Ven got to grips with the
Kore of the
Dilemma: facing their konstituents.


A Tji-Nyanees participant in a Davos debate
Earlier this year, spoke
Of a Grey Rhino effect, which
He explained represented
“Something so huge it completely
Obscured
The screen”.


The Grey Rhino here is
The word
DATA
And the
Kolonisation of the mind
That it represents.


Naturally the more cynical
Amongst us
May argue that ignoring
The grey rhino is essential to
The continuation
Of their pleasure: which
At heart concerns the Kolonisation of the mind.


Of course that would assume they understood what was happening.


What does this mean?


Simply this. Using the language of
Mr. Adam Smith…. He,
Famously, of The Wealth
Of Nations… Mr. Z
Uckerburg [and
His illustrious peers]
are the most
Successful kolonizers of all
Time.


According to
The hype surrounding the man’s
Recent forage around the
Firmian Capitol’ he gains some 25
Billion dollars of
[Profit] annually from
Some 40 Billion $US
Revenue. In a competitive
World of
Razor thin margins that is beyond
HUGE.


The revenue comes from companies
That use the data given
So f
Reely by the b
Illions of
Users of his
‘Machine’.


They use the
Insights it presents to target
Prospects for product
Purchases, more efficiently
Than ever known.
Inherently, this means that, like
The Konquista
Dors, who found mountains
Of silver back in the 16th
Century; appropriated it from naïve
Possessors: like those
Who purchased Manhattan: for bags of
Beads; and
Achieved great
WEALTH.


Mr. Z [et al] have achieved a similar,
Inherently
‘Unearned income’. They are
The
El Supremo
Rentiers.


When Mssrs. Smith and
Ricardo talked of ‘Economic
Rent’, they were referring
To this windfall effect


Resulting from control over the product
Of a natural resource.


In this case, data
Emanating from a human
Source: the ultimate in a natural
Resource.


It also took about a hundred and
Fifty years then: for the penny
To drop too.


We hope the penny will drop
sooner, for humans
today or the rest
of the century could get seriously
rough: especially for those
absently
left behind.


Jerome Powell [new chairman of the Firmian Federal Reserve,] admitted
something in his opening salvo with
the same group of kongresspersons, earlier
this year;
that “The Slack”, to which he made constant
reference when justifying the
continuing,
no inflation trend
of the past decade:


In spite of allegedly: full employment
Conditions in Firmia.


“The Elliot curve is cracked,” they call…
“The mob in here, are all


In thrall to


The slack,” he said: “beyond the Wall”:


The
Fifty million people across the
World
Living daily off the Web… who
Are an almost infinite
Resource
at wage levels way below
Those of the Firmian
Norms.


No one
Has ever admitted that before:
Publically.


So in building Facebook Mr. Z’s true
genius lay in solving
one of humanities greatest
needs… to be in sharing kontakt
with one’s fellows
And
through the power of
digitalization he [and all
the rest of the merry
band of tech’ dudes]
invented
The thing called
DATA… symbolically
Packaging James Surowieki’s: “Wisdom
of Crowds”. Hence


The DATA then… becomes the new
‘Goldfields’ now and the
Klondike rush is being relived: as they
ALL
Kapitalize on the window of
Oppor
Tunity by ‘mone
Tizing’ his “free” source
Of ‘data’.


And as with the Silver
Exchanges of past time glory
No mention in the exchange pays rent
to the source.


No wonder the planet is all messed up
And getting hotter by the day


As the greatest beneficiary of “unearned
Income”
in history, the
Question the Kongresspersons should
Have been asking, related to that share of
Unearned income [i.e. Economic
Rent]
that should be returning
To source, rewarding
Loyalty work
Presently
Given freely: in order
To sustain
And maintain their
Ability to keep feeding
The machine.


!NiK[‘18]


To all my fellow Jedi’s “May de Forth be wid ya”

What everyone forgot about 9th grade economics

By Nicholas Jakari aka Blogroid (reprinted)

As the world hovers on the edge of financial catastrophe and allegedly clever people are meeting to figure out what went wrong and how it should be resolved in the future so it doesn’t happen again, a gap has opened into which talk of a transaction levy, also referred to occasionally as a Tobin Tax has been thrust like a sharp finger into the throat of the Banking sector which has summarily and categorically rejected it.

In this blog I am going to present an argument suggesting that almost without noticing the world has sleepwalked into a state of being where we have turned time itself into a natural resource and we have neglected to charge rent for that resource. And that a transaction levy is the natural remedy for the world’s current impasse notwithstanding the entirely predictable vested interest opposition to what is in effect a radical and revolutionary idea. I also accept that there are at least three probably four or maybe more, profoundly sensible reasons for rejecting such an idea… many of which have been besmirched by the blatant frauds perpetrated on the world by the financial services sector of the world’s economy.

Preliminary Tweet version of this blog.

[For those who need their information in Twitter style bites.]

Sovereign debt problem inherited from Private Banking sector demonstrates that using the Future, as a Factor Of Production without charging economic Rent for its use is unsustainable.

The longer more complex 9th grade version, for those who found Economics unbearable.

In making this presentation it is not my intention to break the Capitalist system, I like and teach Capitalism [whatever it is… like Zen it seems to be whatever its proponents intend it to be]. Rather it is to demonstrate how ‘capitalism’ is shooting itself in the foot through its unwillingness to accept that in the same way that the world has evolved from the Stone age to the age of Knowledge so too must the system evolve, that has helped to bring humanity from the caves to the glories of our present time.

In a few weeks now I am going to launch a podcast cyber serial called the Jonker Memorandum: [sub-titled] an Mzansian myth, following an apocalypse: about the ambiguity of memory, how the world ended and what happened afterwards. In that ‘afterwards’ world this idea of a transaction levy is the core mechanism whereby the world functions financially. The story is not about the transaction levy: rather it is simply taken for granted in the same way that we take electricity [for instance] for granted.

Rather than wait for the relevant footnote in the futuristic part of the story to be broadcast in about ten months or so [It’s a serial remember: in episodes.] it seems apposite, given the present crisis, to present the rationale for what is [in the story] simply a footnote to a logical conclusion. I’m doing this because it seems to me that in the general fuss over the Transaction Levy no one else seems to have presented a logical and reasonable explanation for why this instrument represents the inevitable next step in our human evolution. Of course I also understand that it may well take an apocalyptic event to induce its acceptance … hence the subtitle. And I’m sure that for many people the present crisis is an apocalyptic event.

I hope that I still have your attention at this stage.

Among other things I teach 9th grade economics, and it has fascinated me over many years how we introduce, at that level, a most intriguing set of concepts; that form the core foundations of economic theory in all its diversities: and then carefully ignore one rather critical part of the theory.

Or perhaps we willingly forget.

For those who have forgotten: 9th grade economics deals with three critical aspects of fundamental economic theory. First there is the idea of the so-called ‘economic problem’: scarcity, and the idea that all economic behaviour is concerned with the fact that people set out to satisfy unlimited wants and needs with generally limited resources. Note the idea of “Limited resources”.

Question: Is the future an unlimited resource?

The idea of limited resources leads naturally to the associated dual concepts of supply and demand, and the principle that when supply is constant [or declining] and demand is rising, then prices will rise. And alternately; when supply is increasing and demand falls, then prices, should, in principle, fall. There are many reasons why this doesn’t always work out so neatly but for the moment that suffices, as 9th grade economics will do. 9th Grade doesn’t do Fiat currencies and endemic inflation.

The second critical idea central to economic theory holds that to satisfy needs people produce goods and in order to achieve this satisfaction they make use of so-called “Factors of Production.” This is a teasing idea for 9th grade learners and inevitably causes some confusion, because it makes something obvious into something seemingly abstract.

So for instance in order to produce the ubiquitous cellular telephone one requires a range of materials referred to in all the prescribed textbooks as being derived from natural resources: e.g.: metals and plastics. One also needs capital in the form of the machinery needed to manufacture the instrument and the premises in which the machinery is housed together with the sums of money needed to finance the production through to the income stage.

Then there is the labour, and the endeavour and the knowledge needed to make the thing. So all in all there are seemingly five key so-called ‘factors’ involved in production.

When I first started teaching this subject [9th Grade Economics] back in the 70’s, at a time when the “Commanding Heights “ theory of national governance was in vogue around the world, my 9th grade textbooks referred only to three “Factors of Production”: Natural Resources, Labour and Capital. Entrepreneurs were regarded, as being akin to criminals [and gosh they still are in many quarters] and knowledge was a relatively static concept. Gradually since the 90’s Entrepreneurs have been added to the list, grudgingly in my own home environment, and more lately, especially since the likes of Facebook and Google the idea of pure knowledge as an independent Factor has been slowly “creeping like snail unwillingly to the pages” [to paraphrase the Bard].

At this point, with the 9th graders, it is usual to evaluate the various ways in which these factors are paid and it is here that things become both controversial and curiously obscure.

Labour is paid with wages and salaries. Capital is paid with interest, Entrepreneurs with profits and Knowledge receives royalties. These are all argued over routinely and these arguments do not concern us here.

What does concern us though is the textbook hypothesis that Natural Resources are paid with something referred to as ‘Economic Rent’.

And here my classes invariably grind to a halt. In the neighbourhoods where I have routinely worked over the years many of my students live in rented homes and so the first confusion is separating the idea of the rent their parents [often single moms] pay for their roofs, from this idea of economic rent.

The textbooks themselves are strangely silent on the idea of economic rent, something that carries over into 10th grade where the subject doesn’t come up at all; 11th where it receives a bare mention and 12th where again it merits a bare paragraph or two and so it continues into economics 101, 201 et al. Well its there: but buried well. The current standard [9th grade] text [in my district] is in fact completely silent on the definition of economic rent…. It simply refers to “Rent” conveying the impression that one simply “rents” natural resources in the same way their folks rent their homes, trailers, or even television sets. Almost no one ever gets it, and in the twelve or so minutes the syllabus prescribes for dealing with it, it generally gets lost.

One suspects that somehow over the years the idea of economic rent has become submerged into the idea of tax generally which all of us despise and which many regard as theft, and in its progressive income taxes form as an active form of discrimination against upward mobility. One of my heroines in the Jonker [my forthcoming podcast cyber serial remember] announces, following Nozik, that “Taxing people’s labour and the fruit of that labour creates a moral flaw at the profoundest heart of modern society” This is her prelude to the {historical in the story} introduction of the transaction levy.

More sophisticated textbooks refer broadly to supply elasticity’s and the difference between transfer earnings and economic rent, The illustrious Keynes refers to Locke’s definitions of Economic rent and generally over the centuries the idea of economic rent is viewed as “An amount of money, over and above that which would induce an owner of a factor to offer that factor for use. [Michael Parkin: Economics] Most tertiary level texts also associate the idea more exclusively with land than with natural resources; i.e.: a subtly rooted idea that all natural resources boil down to land… which in the 21st century is no longer as true as it was in the 19th.

According to Henry George a seemingly carefully forgotten 19th Century economic activist, famous a century or so ago for an idea called “Georgism”, “ A sizable portion of the wealth created by social and technological advances in a free market economy is possessed by land owners…. Via economic rents…” [Wikipedia].

He continued: “[In the economic meaning of rent, payments for the use of any of the products of human exertion are excluded, and of the lumped payments for the use of houses, farms, etc., only that part is rent which constitutes the consideration for the use of the land. The part that is paid for the use of buildings or other improvements is properly interest, as it is a consideration for the use of capital.” [Henry George Foundation]

So you can see the idea is confusing. I don’t want to get hung up about definitions though: I just want you to remember that it is an accepted feature of commercial life that natural resources earn this thing called rent, which is basically different in concept from tax, interest, profits, royalties or wages: even though it’s all money.

Now I would argue that as we have moved from an agrarian to a Post-Industrialized market structure where the existing range of Factors of Production were appropriate to a world based on tangible goods we are now in a world where, most of the so-called “Developed” part is in thrall to economic activity that is intrinsically intangible. In the financial services sector, and specifically that part called “derivatives” trading, economic activity is basically a casino game based on a range of intangible variables

When I started teaching 9th grade economics in the 70’s, services were almost an appendix to a textbook. They were in practice, indescribably formal and access was hugely restrictive. They were generally a tiny part of overall GDP. Then we [the place where I live] were massively dependent on so called primary commodities for most of the GDP.

No longer.

Now services are centre stage and the biggest of all are the money markets. This set of production classifications represents the third of the basic principles of economic activity that we teach to 9th Grade. This refers to the idea of Primary [e.g. farming, mining] production, Secondary [e.g.: manufacturing cellular ‘phones] and Tertiary [banking, haircuts, insurance and the sale of collateralized debt obligations: or the derivatives market]. We do attempt to suggest to 9th Graders that by the time we reach the latter two we are dealing with something that operates in essentially an alternate reality… the exponential expansion of an idea called the ‘fractional reserve multiplier’ extending the meaning of money into an infinitely abstract probability. At this stage my more dismissively assertive 9th graders ask if i’m on crack or have been imbibing the holy weed.

According to a host of different commentators over the past months and years since the emergence of the international financial crisis and the Great Recession, The derivatives market in but two commodities: gold and silver, is around three times global GDP. That of the entire derivatives market involves debt obligations totaling more than 20 times the entire annual income of the entire planet.

In other words services have emerged: big time… and they are not paying rent… therefore the system, which should be supported, is breaking down: has broken down… to the critical disadvantage of the players. [Note: I have no problem with people getting rich… I do have a problem with people who are unable to recognize when they are committing suicide. If it is at an individual level its bad enough… but this Lemming thing is scary.]

Why should financial services pay economic rent?

It is because this abstract tertiary form of economic activity uses the most abstract of all conceivable Factors of Production to achieve its aim. Simply put: it’s Time. Specifically It’s “The Future”.

All debt is founded on the Time value of Money. In other words it is a lien on the future. That is: Value borrowed today is borrowed from the future. You buy your car on hire purchase: five years to pay, you are borrowing against your own future. You do the same thing with student loans. This is not new: it’s been done for millenia. What is new is the scale and scope of this lien.

In the 1970’s money was an economic lubricant, oiling the wheels of commerce. Today in a world of Securitised Loans, Commercialised Debt Obligations [CDO’s] and Hedge derivative options, not to mention high frequency trading, money has become a product… and it uses the future as its primary factor of production.

And since it has evolved into a product it too must fall under the auspices of [the more abstract] notion of Factors of Production… with the Future as the Factor. And in the same way that all factors of production pay some form of Rent, so too must ‘The Future’. The Risk and the rate of return: i.e. Interest, are the rewards and realm of Capital, using time, now on an unprecedented scale.

The idea that we can exploit the future which is, by the way, unlike any other Factor in that it is not scarce at all: the future is infinite, isn’t it? It’s an unlimited resource bounded only by our own fear and greed… and the nature of human disaster: the idea that we can hock the future for untold hundred of trillions: more than two or three planet Earths could generate in a century, and expect to pay for it from current output is so insane it is incomprehensible that we are still doing it.

If we are going to hock the future on the scale that we now do, using electronic convenience then algorithms must be developed and, then, strange as it might sound, the future must pay its way, or the system will break terminally, and I’m sure most of us don’t want that.

In other words: to restate Henry George:
“In the economic meaning of rent, payments for the use of any of the products of human exertion are excluded, and of the lumped payments for the use of investments, only that part is rent which constitutes the consideration for the use of the future. The part that is paid for the use of wealth denomination in any form is properly interest, as it is a consideration for the use of capital.”

The Transaction Levy [not a tax … a payment to the system for providing itself] appropriately balanced against reductions in other extortions we make on ourselves, will help smooth out the massive lump that lies in front of us: and promote the energy we require to take our human adventure to the next level… which is sure to be as different then as 2011 is to 1973, where the only thing that seems familiar is the shape of my classroom and the playfulness of its contents.

Thus endeth the 9th Grade lesson.