Alaska Emergency Employment Mobilization:
Part 8, Alaska’s Mission in a New Financial Architecture

Putting the Alaska budgetary crisis into international and historical dynamics identifies solutions that cannot be understood from a state government point of view. An international “financial warfare” approach is one of the keys for identifying Alaska’s long-term economic interests and for convincing Alaska’s politicians to stop following a false self- destructive doctrine.

We live in a time when declining financial credit for agriculture, industry and infrastructure is crushing almost the entire world economy. A massive parasitical bubble in financial derivatives, that were strictly illegal between 1936 and 1982, is directly causing this decline.

A major destabilization of this global bubble in 2008 resulted in an economic calamity for the entire world economy. The human suffering caused by this devaluation continues to this day even though this bubble has been temporarily stabilized through the “quantitative easing” policy of the United States Federal Reserve.

The root of our nation’s fiscal problem is that credit is being expanded for financial derivatives speculation, not physical production, thus collapsing tax revenues for federal, state and local governments— and Alaska is not an exception. A properly regulated financial system would have created the productive credit necessary for a diversified Alaskan economy many years ago.

The core problem in Alaska’s fiscal debate is that this debate has been restricted to the state budget while ignoring the fact that our state’s budgetary problem is directly caused by a lack of financial credit for physical production. Selling Alaskan oil far below “world average government take” is a major contributing factor but the root of the problem is a commercial banking system that is dominated by the speculative gambling of financial derivatives.

No amount of budget cutting or personal tax increases will solve this problem because the international derivatives bubble will eventually destabilize again and come to a dramatic end.

In the context of the much larger financial derivatives problem, cutting budgets or increasing personal taxes will only increase human suffering while doing nothing to solve the root of the problem. The proposal to “leverage” Alaska’s savings into “the markets” is the worst possible scenario because when the international derivatives bubble pops, Alaska will be saddled with a huge long-term unpayable debt.

What is required is a science and infrastructure-led recovery based on Federal Reserve bond sales, a 1% Wall Street sales tax with a one million dollar per year small investor exemption to curb derivatives trading, and a “new global financial architecture” similar to the Bretton Woods reforms of 1944. The financial standards set by the 1933 Glass-Steagall Act and the 1936 Commodity Exchange Act must also be put back into place if we are to survive as a nation.

Alaska must take advantage of these anticipated changes and begin inquires into participating in these policies and begin preparing the Alaska budgetary process for the inevitable change in Federal Reserve policy.

State governments must work together to link the change in Federal Reserve policy to infrastructure priorities in each state. Alaska can clearly identify a new large diameter gas pipeline, building the Nawapa Susitna dams and the “Railroad Around the World” rail and highway development corridor to Nome as world class development priorities. See previous issues of the United Alaska Campaigner to understand other infrastructure priorities proposed by the Alaska Emergency Employment Mobilization.

When the international destabilization of the derivatives bubble begins again, the only alternative to depression will be the zero-interest rate leveraged sale of infrastructure and productive capacity bonds using a new discount window under the direction of the U.S. Treasury at the Federal Reserve.

The question is whether Alaska will be ready to leverage 50–100-year maturity, interest-bearing private and public bonds, and zero-interest public bonds to create a science and infrastructure-led recovery while developing new relationships with other state governments and making new friends in the Pacific basin.

Developing new state relationships

Developing new state level relationships through United States governor’s offices
will be one of the keys to making our new employment mobilization work over the long term.

New state level relationships will consist of allied United States governors demanding the sale of infrastructure and productive capacity bonds to a new Federal Reserve discount window. No longer can states do nothing about our federal government increasing our money supply primarily for speculative financial derivatives. Using the local decision making process of bonding infrastructure and then selling those bonds to our Federal Reserve must become the standard practice if we are to survive as a nation.

The United States Constitution clearly states that Congress shall coin and regulate our money but Congress is trapped in a partisan gridlock and is not interested in leading a workable reform. Our Congress is trapped in the never-ending partisan gridlock of debating the controlled opposition ideas of the old British East India Company’s “Classical Economics.”

Our President could order the reform of the Federal Reserve consistent with the reforms of President Abraham Lincoln or President Franklin Roosevelt but that is also unlikely with our current presidential selection process.

A more realistic potential for reform is for a group of allied state governors to demand the creation of a new Federal Reserve discount window for infrastructure and productive capacity bonds. This is possible because the Federal Reserve’s quantitative easing policy legally proved that their discretionary bond purchases do not require an Act of Congress.

Several state governors together have the ability to speak to our entire nation, including our power elite, in a way that provides the political cover required for the Federal Reserve’s only workable policy option in a new international financial architecture.

A good national discussion about practical solutions will also have the tendency to force the power elite to curb some of their self-destructive derivatives contracts. Eventually some financial criminals will end up serving prison time but generally those who participate in the new bond system will be spared the collapse of their portfolios and will survive the storm.

Alaska’s governor must lead, or at least participate in, a nationwide conference of governors on the subject of selling state, municipal and port authority infrastructure bonds directly to the United States Federal Reserve. Our governor must recognize that the current collapse in oil prices is causing our state to be headed in the same direction as the rest of our nation and that the extreme partisan gridlock of our Congress has come to the point that governors must now take on this new role.

Let the new group of allied governors discuss our nation’s derivatives gambling problem by offering the solution of state infrastructure bonds and shares purchased by the United States Federal Reserve. The Federal Reserve is running out of policy options and there is a general recognition that the financial derivatives bubble will inevitably self-destruct in a way that causes horrific human suffering. A practical workable solution must be put on the table now.

Alaska’s governor can be part of the solution for our entire nation. His advisors should put together a team for the creation of state and privately leveraged bond packages that mandate Federal Reserve participation and creates an alliance of participating governors.

Developing new international relationships

One of the keys for creating new employment while helping to build a more peaceful and prosperous world is to develop new friendships based on the new emerging international financial architecture. Alaska’s governor must work together with our local industries to develop successful relationships with the new Asian Infrastructure Investment Bank (AIIB), the New Development Bank (NDB), and the Japan International Cooperation Agency (JICA).

The movement to create a new international financial architecture has already begun with the creation of the Asian Infrastructure Investment Bank (AIIB), the New Development Bank (NDB former BRICS proposal), and the continued expansion of existing institutions such as the Asian Development Bank (ADB), Export-Import Bank of the United States (EXIM), Development Bank of Latin
America (CAF), Inter-American Development Bank (IDB), Bank of the South (BancoSurand), and most important for Alaska, the Japan International Cooperation Agency (JICA).

The JICA is a semi-governmental organization under the jurisdiction of the Japan Ministry of Foreign Affairs and is part of Japan’s official development assistance effort that provides technical cooperation, capital grants and loans.

The international sale of Alaska’s bonds in cooperation with the JICA, NDB and AIIB will be an important feature of our employment mobilization.

Alaska’s mission in the new financial architecture is determined by our self-interest as a resource-based economy. State governments working with their local industries have the ability to identify the priorities for infrastructure and technologies in each state—mutual interests are always the foundation for cooperation.

Alaska, as a resource-based economy, has already clearly identified a new large diameter gas pipeline as the number one priority infrastructure project for our state. The second most important infrastructure project is still not widely known due to a lack of understanding of the basic principles of physical economy and the science of technology.

The science of technology clearly identifies that only high energy-flux-density heavy industrial plasma processing has the ability to transform a resource-based economy. Mankind has burned wood, coal, oil, gas and uranium as primary heat sources; understanding the science of technology identifies the next step as hydrogen and fusion.

The role of a future orientated resource- based economy is to provide the in-depth logistical capacities necessary for the larger hydrogen and fusion-based world economy that is emerging. Technology defines what is a commercially viable resource and ascending the platform ladder of high energy-flux-density industrial technologies clearly identifies heavy industrial plasma processing as Alaska’s top science and technology priority if we are to remain competitive and commercially viable throughout the next generation of production.

To advance our oil, gas and mining industries and promote the creation of new industries, Alaska will require the building of a high-energy plasma physics prototype institute at the University of Alaska Anchorage.

Building a large diameter natural gas pipeline for exports and local consumption and building a plasma physics prototype institute for our new fuels, mining and manufacturing industries will become the driving forces for creating a diversified and jobs creating economy for many years into the future as we help to build a more peaceful and prosperous world.

Self-interest defines not only our physical investment priorities but also defines our relationship with our friends and neighbors in the Pacific basin.

Our Governor and Legislature must begin discussions for signing a Memorandum of Understanding with the Asian Infrastructure Investment Bank (AIIB) and the New Development Bank (NDB) to indicate our commitment to provide liquid natural gas and to mutually advance the technologies complementary for heavy industrial plasma processing technologies with our friends and neighbors in the Pacific basin.

Alaskans are citizens of the United States

We currently live in a time when the ideas taught to the employees and subjects of the old British East India Company and British Empire are once again dominating our educational, media and political institutions. These British System “Classical Economics” ideas and their controlled opposition currently prevail in most of our discussions and budget-cutting austerity is now the consensus among leading policy intellectuals.

There is another way out of this mess and the solution is in your wallet. Take out a ten-dollar bill and recognize Alexander Hamilton. Hamilton is on the ten-dollar bill to remind future generations that our nation returns to his economic and credit creating policies when our nation faces danger.

Alexander Hamilton’s American System of political economy was used to successfully mobilize for the American Civil War, World War I, and World War II. Our nation does not face an immediate military adversary today but the danger to our nation is very real now that the quadrillion-dollar derivatives bubble is beginning its inevitable collapse.

After decades of declining investment into infrastructure and productive capacity our nation is now in the grip of a financial “capital strike” caused by the deregulation and widespread criminality in financial derivatives. Increases in the United States money supply that should go toward agriculture, industry and infrastructure are now subsidizing the parasitical financial derivatives that have effectively caused a capital strike on physical production.

How is this capital strike to be ended in order to restart our economic system? Cutting state budgets without including a discussion about the calamity facing our nation and the world economy is obviously not working. Budget cutting austerity only increases human suffering and does nothing to solve the root
of the problem.

Citizens in Alaska must stand up and clearly identify solutions that go beyond state government budgets. The current list of solutions to be discussed include:

Tragically these solutions were not discussed during Alaska’s latest political campaign season but still stand as the economic demands of Alaskans who understand the current dynamics of financial warfare and who want a good life and a bright future for our state and nation.

Now is the time to take another look at that 10-dollar bill and consider the potential for our governor and legislature to think outside the ideas of British System economics by using the local decision making process of state-led federal monetary bonding.

Alaska’s governor and legislature must strengthen our efforts to challenge our federal government to participate in offering solutions that reject budget-cutting austerity. There are workable solutions rooted in the economic history of our nation and our local politicians should participate in this unique opportunity and ride the wave of financial reform while creating the potential for their national leadership.

The successful leveraging of zero-interest Federal Reserve state bonds with interest-bearing private and state bonds will not only revive the Alaskan economy but most important, will set the stage for all other states to begin participation in Federal Reserve bond sales.

Think like citizens of a nation, not residents of a state, and demand that our federal government returns to regulating our financial system to protect our economy from predatory financial bubbles and create credit for physical production.

Alaskans must have a plan of action before the derivatives bubble destabilizes again or we all are going to end up living in poverty for many years. Now is the time to stop talking about taxing individuals, start acting like citizens of the United States, clearly identify our economic self-interest and begin a new conversation about demanding a science and infrastructure-led recovery.

Sustainability or dynamics

One of the most efficient methods of lying is to frame an issue in a way that is false to historical dynamics. By omitting actual causal factors, the solutions to the problem become obscured and controlled through distraction away from the most important issues. The sustainability doctrine is an example of this type of false framing because this doctrine intentionally ignores the factors directly causing the economic calamity facing our world and nation.

The sustainability doctrine ignores the endemic criminality of the financial derivatives that are directly causing the collapse of our civilization and claims that overspending by governments is the cause of this calamity; therefore it is false to history and must be challenged with a true historical dynamic.

For thousands of years the great hope of humanity has been to break free from the old imperial empire system that enslaves and forces humanity into perpetual poverty and perpetual warfare. The great hope is that someday every individual will have the freedom and standard of living to choose their own destiny, to develop their creativity, to make contributions of lasting value, and to live in a political world that values and promotes physical law and natural law principles.

Previous attempts in history to reform the old empire system created a world based on the optimism of the nation state system of constitutional democracies or what are more accurately called democratic republics. These attempts have been incomplete, yet the best hope for humanity is to continue the struggle to establish the nation state system as the dominant method of freeing the world from the old oligarchic empires.

People who are ignorant of this historical battle or who willfully deny the existence of the dynamic warfare between the nation state system and the old empire system are framing the issue of the rise and fall of civilization in a false historical epistemology.

This false framing is true of the British System’s sustainability doctrine. This doctrine claims that a stagnant non-evolving economic system should be the goal of humanity. The truth is that founders of the nation state system based their economic system on the promotion of the creative intelligence and education necessary to advance an energy-intensive, technology-intensive and capital-intensive path of development.

The sustainability doctrine rejects this path of development and promotes an economic system based on obstructing the advancement of new heavy industrial technologies and energy systems that structurally challenge the industries currently owned by the old oligarchic financial cartel system.

Under the sustainability doctrine, financial cartels and nations are never challenged to create financial credit for building great energy, transportation and water management systems. Budgets are constrained to declining revenues and no science and infrastructure goals are set that create political alliances that effectively challenge national, corporate and financial interests.

Most important, under the sustainability doctrine, monetary systems are reserved exclusively for the preferred categories of speculative gambling of the financial oligarchy. No increases in the money supplies are prioritized for agriculture, industry, infrastructure or other requirements of human survival. The effect of the sustainability doctrine is to prevent challenges to the power of the old empire system that continues to this day in the form of the financial cartels associated with Wall Street and the City of London.

Alaska is no exception to the dominance of the sustainability doctrine. Our politicians continue to lack the knowledge and critical thinking skills necessary to understand that the sustainability doctrine is not in Alaska’s self-interest because it distracts Alaska from investing in the technologies necessary for our long-term survival and prevents the infrastructure goal setting that challenges the financial oligarchy to create credit for physical production.

Bureaucratic austerity enforcers whose ideas derive from the British System, including Classical Economics, Neoliberalism, Monetarism, Keynesianism and the Austrian school promote the sustainability doctrine in Alaska.

These austerity enforcers have the goal of not allowing American System economic solutions to enter the discussion.

This writer, who generally has a friendly and engaging personality, has endured the persecution of several of these enforcers on multiple occasions by being escorted out of discussions by security officers. At one time I thought we lived in a democracy that allowed for the free exchange of ideas. I was wrong.

Alaska’s current cadre of austerity enforcers is no exception to the dominance of oligarchic British System economics on our international political system. The question for Alaskans is whether a few of these enforcers can be convinced to reject some of their miseducation when presented with an alternative program that clearly identifies the true nature of the actual dynamics of financial warfare.

With the inevitable collapse of the international derivatives bubble looming on the horizon, humanity is once again at a turning point in history where some people will challenge their strongly held oligarchic beliefs.

The question to ask them is whether the nations of the world should continue to massively subsidize the illegal gambling debts of international financiers and instead protect the physical requirements of human populations.

Wall Street politicians deregulated our financial system and now we are living in a collapsing civilization. These same politicians say we can no longer afford to have defined benefit retirements, Social Security, Medicare, Medicaid, collective bargaining, universal education and food stamps. What a scam!

The fact is that U.S. corporations pay very little effective taxes while U.S. trade tariffs are at historic lows. The fact is also that Wall Street pays almost no taxes, wrecks our currency for gambling debts, teaches their stupid economic ideology in our colleges, and buys Republican and Democratic politicians.

Now is the time to be very direct with our politicians and austerity enforcers in public. Cut through the confusion and ask the direct questions necessary for the survival of our civilization.

Do you support a tax on Wall Street gambling? Do you support a new Glass-Steagall Act to extract derivatives out of our commercial banking system? Do you support the sale of state infrastructure bonds directly to our Federal Reserve?

Stand up and demand a change in our state’s relationship with our federal government. If a politician can only offer budget cuts as a solution then do not vote for them. If an austerity enforcer attempts to prevent the discussion of American System solutions then demand that person lose their position in controlling the debate.

There are highly intelligent bureaucrats who have attended educational institutions that exclusively teach the British System of political economy. Maybe, just maybe, a few of them will change their perspectives when faced with the unfolding calamity.

A few high profile advocates of budget cutting austerity and sustainability can actually become advocates for the American System if they can rethink the historical dynamics of financial warfare.

Alaska’s political leadership still lacks the knowledge of financial warfare dynamics necessary to understand the long-term consequences of the sustainability doctrine—but with hard work some of this leadership can be convinced to change.

The sustainability doctrine is not in the economic interest of Alaskans. The long-term effect of the sustainability doctrine is to prevent the development of advanced industrial technologies and confuse and disorganize the political consensus required to build the new industries and infrastructure necessary for Alaska’s long-term economic success.

Cut derivatives out of our commercial banking system—don’t cut the life out of our economy. Alaska’s budgetary crisis cannot be solved using budget-cutting austerity.

Alaska’s brightest future lies in participating in a new worldwide financial architecture based on a science and infrastructure-led recovery. Alaska’s mission in this new financial architecture is determined by our economic self-interest in participating in the dynamic advancement of plasma processing and the federal and international sale of our infrastructure and productive capacity bonds.

Alaska Emergency Employment Mobilization:
Part 9, Alaska’s Industrial Science Policy Update

The prescient future history of humanity is to project the species of Earth into our galaxy using fusion and plasma technologies. The question is whether Alaskans will have the foresight to actively participate in this process and help make this future possible.

Alaskans, as citizens of the United States, have the special advantage of being able to access technologies not available in other nations. We have the power but do we have the political will?

The 2015 opening of the Engineering and Industry Building at the University of Alaska Anchorage builds one more piece of required infrastructure for creating this future but will we take the next step?

The next step for achieving a competent industrial science policy is to build machine tool and engineering support facilities for prototype development at UAA. The goal is to transform Alaska’s oil, gas and mining industries and create new capital goods industries using high-energy plasma processing technologies.

Projecting labor productivity using advanced industrial technologies has always been one of the best ways to create new employment.

Larger and more complex infrastructure can be built using new industrial technologies that make infrastructure projects easier and cheaper to complete while creating new divisions of labor through producing the new technologies.

There is more total employment because of the new technologies, new industries and new infrastructure.

The history of the industrialization of Japan clearly identifies the success of this method that has proven itself many times in the history of the United States.

One of the principal oppositions to this method is the multi-billion dollar worldwide propaganda campaign of financial and oil company institutes and foundations that continue to shape the debate on industrial science policy.

Inferior “sustainable” technologies promoted by these institutes and foundations intentionally never compete with the price basis of currently installed productive capacity. The result is a controlled opposition political lobby that promotes inefficient technologies that can never create new technological divisions of complexity. New long-term employment can never be created using non-competitive sustainable technologies such as wind, solar and biomass.

The end result of these campaigns is to waste time, money and political will. This propaganda ultimately denies Alaska the advanced technologies necessary for the long-term success of Alaska’s productive industries.

Many people who support these inefficient technologies are honestly hoping to promote a better future yet have no knowledge of physical economy and the “science of technology” in the form of economics as a branch of physics. Let us teach these people the error in their reasoning and introduce them to the science of technology.

The science of technology as taught today includes energy-flux-density, work-flux-density, energy coherence, volumetric energy density, volumetric energy efficiency, principle of least action, machine tool principle, torque, horsepower, and relative potential population density.

An historical example is best to describe the science of technology. Mankind first burned wood, then coal, then oil, and then uranium. The repetitive principle is that increasing the energy-flux-density—the concentration and qualitative transformation of industrial heat power—allows for a redefinition of the usable resource base and the projection of labor productivity.

Currently, the science of technology is rejected for political reasons and instead the rising prevailing consensus is sustainable technologies. Wind, solar and biomass can produce electricity but they will never qualitatively transform industrial heat power to create new industries and new employment because of their physical inefficiency compared to existing productive capacity.

The immediate problem is that the controlled opposition propaganda of financial and oil company institutes and foundations is leading Alaska into a poorer standard of living because the technologies promoted by this propaganda will never qualitatively transform productivity in a way that creates new divisions of labor and thus new employment. Physical principles must guide our industrial science policy—not propaganda designed to financially protect current modes of production.

In order to achieve the advancement of truly efficient technologies, Alaskans must create the political will to develop plasma processing as the central priority technology for Alaskan development. The solution is to take the next step and begin construction of a new UAA facility for high-energy prototype development.

Most important for the long-term is that the advancement of high energy-flux-density plasma technologies applied to industrial productive capacity will help give humanity the ability to project the species of Earth throughout our galaxy.

The key to reversing our current lack of political will is to invest in plasma processing to build a future that includes space colonization. This long-term strategic goal focuses our technological advancement on superior technologies and not the inferior non-competitive controlled opposition propaganda.

Our nation and the people of our state deserve and require a higher standard of living that can be achieved with advanced industrial technologies. The question is whether Alaskans have the political will to make this future possible.

Charles E. Duncan
PO Box 212706 Anchorage Alaska 99521
[email protected]

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