Fractional Reserve Banking as Economic Parasitism: A Scientific, Mathematical & Historical Expose, Critique, and Manifesto

This paper looks at the history of money and its modern form from a scientific and mathematical point of view. The approach here is to emphasize simplicity. A straightforward model and algebraic formula for a large economy analogous to the ideal gas law of thermodynamics is proposed. It may be something like a new ``F=ma'' rule of the emerging econophysics field. Some implications of the equation are outlined, derived, and proved. The phenomena of counterfeiting, inflation and deflation are analyzed for interrelations. Analogies of the economy to an ecosystem or energy system are advanced. The fundamental legitimacy of ``expansion of the money supply'' in particular is re-examined and challenged. From the hypotheses a major (admittedly radical) conclusion is that the modern international ``fractional reserve banking system'' is actually equivalent to ``legalized economic parasitism by private bankers.'' This is the case because, contrary to conventional wisdom, the proceeds of inflation are not actually spendable by the state. Also possible are forms of ``economic warfare'' based on the principles. Alternative systems are proposed to remediate this catastrophic flaw.fractional reserve banking money expansion parasitism capitalism greenspan gold thermodynamics perfect gas econophysics gresham's law stiglitz money supply inflation deflation growth price stability counterfeiting energy radical polemic revolution economic warfare religion doublespeak gdp scarcity fiat blips federal reserve history slavery lassaiz-fair solow keynes keynesianism cancer psychology sociology politics analogy IMF world bank GNP GDP digital cash money laundering pareto mcfadden echelon nsa free market growth conspiracy

Gini coefficient as a life table function

This paper presents a toolkit for measuring and analyzing inter-individual inequality in length of life by Gini coefficient. Gini coefficient and four other inequality measures are defined on the length-of-life distribution. Properties of these measures and their empirical testing on mortality data suggest a possibility for different judgements about the direction of changes in the degree of inequality by using different measures. A new computational procedure for the estimation of Gini coefficient from life tables is developed and tested on about four hundred real life tables. The estimates of Gini coefficient are precise enough even for abridged life tables with the final age group of 85+. New formulae have been developed for the decomposition of differences between Gini coefficients by age and cause of death. A new method for decomposition of age-components into effects of mortality and composition of population by group is developed. Temporal changes in the effects of elimination of causes of death on Gini coefficient are analyzed. Numerous empirical examples show: Lorenz curves for Sweden, Russia and Bangladesh in 1995, proportional changes in Gini coefficient and four other measures of inequality for the USA in 1950-1995 and for Russia in 1959-2000. Further shown are errors of estimates of Gini coefficient when computed from various types of mortality data of France, Japan, Sweden and the USA in 1900-95, decompositions of the USA-UK difference in life expectancies and Gini coefficients by age and cause of death in 1997. As well, effects of elimination of major causes of death in the UK in 1951-96 on Gini coefficient, age-specific effects of mortality and educational composition of the Russian population on changes in life expectancy and Gini coefficient between 1979 and 1989. Illustrated as well are variations in life expectancy and Gini coefficient across 32 countries in 1996-1999 and associated changes in life expectancy and Gini coefficient in Japan, Russia, Spain, the USA, and the UK in 1950-1999. Variations in Gini coefficient, with time and across countries, are driven by historical compression of mortality, but also by varying health and social patterns.inequality, life expectancy, mortality, variability

Algorithm for decomposition of differences between aggregate demographic measures and its application to life expectancies, healthy life expectancies, parity-progression ratios and total fertility rates

A general algorithm for the decomposition of differences between two values of an aggregate demographic measure in respect to age and other dimensions is proposed. It assumes that the aggregate measure is computed from similar matrices of discrete demographic data for two populations under comparison. The algorithm estimates the effects of replacement for each elementary cell of one matrix by respective cell of another matrix. Application of the algorithm easily leads to the known formula for the age-decomposition of differences between two life expectancies. It also allows to develop new formulae for differences between healthy life expectancies. In the latter case, each age-component is split further into effects of mortality and effects of health. The application of the algorithm enables a numerical decomposition of the differences between total fertility rates and between parity progression ratios by age of the mother and parity. Empirical examples are based on mortality data from the USA, the UK, West Germany, and Poland and on fertility data from Russia.healthy life expectancy, life expectancy, parity progression

Algorithm for decomposition of differences between aggregate demographic measures and its application to life expectancies, Gini coefficients, health expectancies, parity-progression ratios and total fertility rates

A general algorithm for the decomposition of differences between two values of an aggregate demographic measure in respect to age and other dimensions is proposed. It assumes that the aggregate measure is computed from similar matrices of discrete demographic data for two populations under comparison. The algorithm estimates the effects of replacement for each elementary cell of one matrix by respective cell of another matrix. Application of the algorithm easily leads to the known formula for the age-decomposition of differences between two life expectancies. It also allows to develop new formulae for differences between Gini coefficients (measures of inter-individual variability in age at death) and differences between health expectancies. In the latter case, each age-component is split further into effects of mortality and effects of health. The application of the algorithm enables a numerical decomposition of the differences between total fertility rates and between parity progression ratios by age of the mother and parity. Empirical examples are based on mortality data from the USA, the UK, West Germany, and Poland and on fertility data from Russia.

Effective Dielectric Constant of Two Phase Systems

Theoretical approaches to electrical characterization of two phase systems are mostly limited to the systems where the individual components exhibit the same type of conductivity (pure dielectric or pure conductive systems). In this article, the brick wall geometry is extended to the mixed conductive systems with percolation. Impedance spectroscopy techniques were used for experimental investigation of slurries. Various metal oxide powders and host liquids were analyzed using a wide range of solids loadings. Comparison of experimental results with theoretical predictions shows good fitting of the experimental data. Parameters (the values of permittivity for both phases and percolation threshold) calculated from this fitting match the corresponding values of components of two phase systems. Analysis of both low frequency (less than 10 kHz) as well as high frequency (10 kHz to 1 MHz) responses of impedance spectra allows determining of permittivity of dielectric powders suspended in various liquids. Low frequency response provides better accuracy for systems with high dielectric contrast between components, while high frequency response is more accurate for low contrast systems