Archive for the ‘Musings’ Category

It rains!

20 October 2017

I never thought I’d do a post just on account of some rain.
But per the records I’ve been able to find, it hasn’t rained in Sacramento since April. That’s six months with no rain! I didn’t even notice any foggy mornings.

But last night, as the weather guys predicted, we heard the soft pitter-patter of rain drops on the roof and in the yard. And this morning it was wet outside.

roses after a rain

Of course, people and other biological forms survive under conditions like this because of ground water and stored water upstream behind dams. Our garden stayed well-watered. Those who decided to continue the water conservation effort got very dry and brown lawns. However, most trees and even bushes did OK because of water in the soil.

We could leave even more water in the soil if we didn’t flush roof runoff into the drain system, but flushed it onto the soil instead. (That’s the permaculture way.)

When I took a photo of droplets in an old web under our pine tree, I found something interesting. Can you tell from the photo?

old web under pine tree

There is also sap (what amber is made out of) falling out of the tree and collecting on this web. The one darker blob is really obvious. This sap is quite messy. I got some on my fingers; it’s hard to get off.

Advertisements

Intelligence and Social Experience

10 September 2017

The lower the IQ, the more the individual is shut off from the fruits of observation.
– LRH
(HCOPL 7 Feb 1965, KSW)

It was determined at some point when I was young that I was “smart.”

I didn’t think much about this in my younger years. I did not feel that I was getting pushed in any particular direction (because of my intelligence) by anyone exterior to myself. And no one ever brought it up with me.

Yet, I had an abiding sense of being “different.” Not a lot different, but different to some degree. And though I explained this to myself in various ways over the years, it never particularly occurred to me that intelligence had anything to do with it. Until one day a senior of mine who was in a position to know such data told me that by test I was one of the more intelligent people in our group. Though I made no particular connection at the time this comment was made, it intrigued me in light of the above quote, and in the light of my social experience.

Electronics

I took up a study of electronics around my last year of high school. I had always enjoyed my work in the arts throughout my younger days in school, but it occurred to me that I had no idea how to make a living as an artist. Beyond that, I had not figured out what art was “good for” outside of keeping myself and others involved in the field amused. I thought I’d better sort these points out before I committed myself to a life in the arts, so I chose a fall-back study, electronics, as I was already running into it through my interest in music and audio equipment.

my electronics bench

My electronics bench in its beginning form, 1972.

Practical electronics is basically an engineering study involving multiple subjects. To build equipment you must be able to make design drawings, construct objects from wood, plastic, or metal, choose, purchase and assemble parts that include hardware, passive electronic parts, and active parts like transistors or ICs. These days you also have to know how to write code (computing software). Electronics design further involves a knowledge of physics, mathematics, and materials sciences.

As I moved along in my study of electronics, I occasionally noticed that many people around me had no clue about any of these subjects. My father, for example, having studied mainly in the humanities, did not really know physics, chemistry or engineering – though he had used a computer to help him compile data for his doctoral thesis. I was living in a society full of people who did not know that much about the technologies they were using every day.

As I bought and read engineering and hobby books covering these various subjects (as well as studying the basic science and math in high school) I knew that a technically-savvy community existed and that I had become a part of it. It didn’t really occur to me that there might be large numbers of persons who were not up to this level. After all, I had been introduced to the basics in high school.

This subject, by the way, extends deeply into the subject that has been the center of my attention for some time, Scientology. Besides the fact that auditors use an electronic device in their work, electronics has been a repeated – if somewhat esoteric – aspect of the research path starting right out of the gate when LRH chose “bank,” a computer engineering term, to help him describe the mind. According to the more esoteric research conducted by LRH in the early years, electronics has been an important human technology for a very long time. Among the most famous stories to treat “high” technology as a thing of the past is Star Wars. But this has been borne out by research done by numerous persons, not just Hubbard.

Blank Stares

However, when I got into social situations and people would ask me, “What do you do?” (which is a crazy question, by the way), when I would answer “electronics” I would often get a blank stare. The more socially adept would recover quickly, acknowledge my answer, maybe say something like “That sounds really interesting!” and then change the subject.

But, as I have since come to recognize it, I had given them a Misunderstood Word, basically cutting the communication line.

Could other words I was using be causing similar effects?

Per even an average understanding of what it means to be “smart,” a higher-than-normal vocabulary is one agreed-upon characteristic. The subject is mentioned here http://thecommonroomblog.com/2013/02/vocabulary-and-intelligence.html in relation to childhood education. There are some IQ tests based entirely on vocabulary (knowing the meaning of words, and knowing when you don’t know their meaning).
The LRH study method is based on gaining conceptual understandings of the meanings of words. For some words, you might have to go out into the world and find the object or experience the action referred to by the word in order to get a really good conceptual understanding of it.

IQ

The term IQ comes to us from the field of psychology and is intended to be a measure of relative intelligence. In other words, the 100% score (or “average”) could mean a different intelligence – in either quality or quantity – now than it did 100 years ago. However, measuring intelligence this way has only been done for a relatively short amount of time compared to how long intelligent people have been writing down their ideas and experiences in the hopes that others might benefit from it. So we might imagine that a baseline measure of intelligence would be valid and comparable whether it was done today or 50 years ago.

A simple and well-agreed definition for intelligence is: mental ability. How best to measure mental ability depends to some extent on what we think the mind is for. If it is seen mainly as a storage device, then testing it might consist mostly of testing one’s ability to remember with speed and accuracy. If it is considered a thinking device – the more common belief – then it would be tested by posing problems for it to solve. This is the ordinary approach of most intelligence tests.

The fact that many studies have shown that IQ scores correlate with our ideas of what mental ability should be able to do for a person indicates that we have at least some grasp of the subject of human intelligence and how to measure it.

Experience of Others

I found relatively few articles on the internet addressing this subject directly, and none of them scholarly articles. However, some of them did refer to studies that had been done by psychologists or sociologists. Some articles I saw dealt with how to improve your intelligence, while others focused more on advice about how to cope socially if you are extra-smart.

To summarize:

  • Being smart has a certain isolating effect on people. They know and use more words, they can do very well at certain jobs – and are therefore sought-after for such positions, they tend to feel that the help they provide is vital – even if not well reimbursed – and so are willing to work extra hours, and they tend to have so many interests that it may be hard for them to stay focused on the activities of any particular group.
  • Their curiosity may “get them into trouble” on occasion.
  • Similarly, they may notice things – including flaws in data or logic – that others miss and therefore be seen as “picky” or disagreeable.
  • They may develop interests that others can’t grasp or fully participate in due to the breadth of knowledge required to be involved with that subject.
  • They may inadvertently say things or do things that make others feel “stupid.”

My Own Experience

Though my own experience aligns well with many of the above points, I am particularly interested in certain aspects that have been amplified by my Scientology studies:

  • Misunderstood Words. It is hoped that a person, through study alone, would be able to acquire enough conceptual understanding of most unusual (or even common) words or symbols that these would fully become a part of their working vocabulary. But I have found – particularly in the case of engineering subjects (including math), or other specialized vocabularies (botany, biology, law, medicine) that this is not always that easy to attain. Though people are generally “excused” for not knowing technical words, when these words are constantly used in their environment (such as computing terminologies are in this day and age) a mental dullness could result that could only be resolved with a dedicated study of the subject. I may not do well at limiting technical terms in my own writing and conversation, but when these things extend into general marketing – such as the list of side effects that drug advertisers are required to include in their ads – things have gone too far. I don’t see any good reason why “homicidal ideation” (thoughts of killing others) needs to be a household phrase in this world.
  • The need for multidisciplinary understandings. A common term for this sort of person is the “polymath.” He has always been considered to be someone a bit special, but anyone who wants to be an electronics engineer has to become a polymath of sorts, just to learn that subject well. Hubbard has made the point that if a person wishes to live well and fully, there are 27 different “hats” he must learn to wear, at a minimum. With the introduction of so many “advanced” technologies in recent years, this becomes even more essential. A very smart scientist can fail utterly as a human being if he has not learned the basics of Ethics and Public Relations. And who is teaching that to scientists? (My church is!) So the challenge of the brighter ones among us these days is in persuading others to join them. We face a very dire future indeed if too many insist on remaining ignorant of subjects they MUST know!
  • Tone level. I have mentioned this subject before. Its basics are here: http://www.scientologyhandbook.org/tone-scale/SH4_1.HTM . Though one can learn to move around more on the tone scale, the only known way to fully free a person on this scale is through auditing. Hubbard designated 2.0 as the make-break point on this scale. Above it, one seeks to survive, below it one seeks to succumb. If a person can’t get above 2.0 on this scale and stay on that side of life most of the time, it doesn’t matter how smart he is: He won’t make ethical decisions.
  • Recall and its control. Ron has discovered that the mind basically functions as a storage device. But it doesn’t just store data – though that can be important in more contemplative moments – it stores complete actions or what could be called “learned behaviors.” Such a behavior can be brought into action by various mental processes and will immediately manifest as either a body reaction or an actual body action. Though some of those mental processes are analytical or “intentional,” many others are not, and most people do not understand how they work or how to control them. This is very much linked to Tone level above, and has a similar resolution. Further, auditing can assist a being to access past-life data. Though this is not its emphasis, we could sure use that ability these days, as current circumstances are quite similar to past circumstances we have only experienced in past lives. It would be great to have more of that data available to help us resolve many of our current situations.

Beyond Intelligence

I did not totally expect this “musing” to turn out this long. It remains to be known what really makes some people seem smarter “out of the gate” (so to speak) than others. But in the context of my comments on past lives above, it could well be that some of us have a keener awareness, as soon as we arrive on this planet (no matter how many times we have been here before) that there is an urgent need for positive action on Earth. And this could be what drives them to push for a higher level of intelligence. That this push then tends to isolate them socially is an unfortunate result. But it points out that the solution lies beyond the subject of mere intelligence. Above mental ability lies spiritual ability. If I did not know this I would be very despondent indeed. Knowing this gives me reason to hope. Yes, it’s “good” to be smart. But in the long that’s not enough. I’m glad I was “smart” enough to at least find that out.

Wheat Penny

27 June 2017

what penny both sides

Every so often I run across a “wheat penny.” So called because of the heads of wheat depicted on the back. Though I collected all sorts of things when I was a kid, including coins and stamps, I never studied those subjects seriously.

The study or collection of currency, including coins, tokens, paper money, and related objects is called Numismatics. I am not a student of this subject. I also have older pennies called “indian head.” They were produced from 1859 to 1909. The wheat penny followed this one, up to the year 1958.

This one I think I got at the Tandy Leather store. That’s how I recall it. It is dated 1951.

How to Write a Constitution

29 May 2017

The title is a bit ostentatious, but it’s the best I could think of. Though I don’t really have the resources to give this topic justice, I was thinking about it, so decided to write a post on my Memorial Day time off.

I take for my reference the US Constitution of 1787. I hope the copy I have is accurate.

Talking about ostentatious: It starts, “We the People of the United States…” That’s nice, but probably a little broad. It should certainly mention who agreed to it, if not who actually wrote it. It is basically a piece of literature, so it could have an author.

Purpose

The preamble lists the things this government is to carry out:
Form a more perfect union;
Establish justice;
Insure domestic tranquility;
Provide for the common defense;
Promote the general welfare;
Secure the blessings of liberty…to our posterity.

This is important. These are the long-term and continuing goals and purposes of this government; they are its job. A group needs goals and purposes, and must sometimes be reminded of them. “General welfare” is a bit vague, but we’ll leave it that way for now.

Legislative Powers

I find it a little odd to bring this up first, rather than giving a more general overview of how the system was supposed to work. Too many incorrect assumptions could be made here; we need to spell this out better.

Article 0.

We propose that this nation take the form of a constitutional Republic. This gives us a layered approach to both policy-making and action. There are individuals at each level who represent, or preside over, a group of individuals at the next lower level. Every member of the system is not normally expected to interact with anyone above their level or below the level they supervise or represent in matters of official business, except under special circumstances. Every group at every level has the right to operate as it sees fit, and this right can only be overridden as described below. The assumption is that most people already know what to do or can figure it out.

Legislation:

The purpose of legislation is to set guidelines (policy, laws) that bind those at that level to act within certain limitations or restrictions. This document specifically covers the national, or federal, level, but is also meant to serve as a guide, or pattern, for lower levels.

I will not cover the details of Article 1 here, however, we cannot move on before inspecting Section 8.

Areas of legislative authority / responsibility:

  • Taxes, duties, imposts and excises (to be uniform across all states).
  • Specify outlay to pay debts.
  • Specify outlay to provide for the common defense.
  • Specify outlay to provide for the general welfare.
  • Borrow money.
  • Regulate commerce beyond state boundaries or responsibilities.
  • Regulate immigration.
  • Regulate bankruptcies.
  • Coin money, regulate its value, and establish standard weight and measures.
  • Establish Post Offices and post roads (ensure free flow of communications between citizens).
  • Offer limited patent and copyright protection to authors and inventors.
  • Establish lower-level judicial bodies (tribunals) as needed.
  • Protect the nation from piracy at sea.
  • Declare war, and similar war powers.
  • Raise temporary armies while maintaining a permanent navy.
  • Organizing and activating the Militia for certain purposes.
  • Rule over the seat of government.
  • There are more points, but these are the main ones…

Executive Power

Traditionally, the executives of history (kings, emperors, etc.) got to make their own rules. This was not just a matter of egotism. They had things to get done and they needed to be able to act. One of their favorite pastimes seems to have been making war. This had to change. The chief executive of a nation does have the “power” to make war, as the military is under his/her command. However, it was considered that war should be a matter of policy and not executive action, and this still seems the wiser route.

To further discourage executive policy-making, the Founders proposed putting the matter up for a vote every four years. This seems rather arbitrary to me; why not whenever a majority or some higher ratio of legislators found it needful, but not more often than every four (or three?) years. But we shall leave this be for the time being. The point is: You can’t get policy continuity in the Executive Branch if the senior person is changing all the time, and that’s the way we want it.

Judicial Power

“Judges” have traditionally served a wide variety of functions. At their best, they act themselves, or by guiding a jury (or similar group of peers) to determine who the real criminal is when something goes wrong. As far as I can tell, they do not have a particularly high reputation in this regard. Like anyone else faced with a real criminal, the judge can be threatened when faced with a “hard decision” and forced to back down.

If judges cannot be depended upon to uphold the ethics standards of the group, then who can be? If a group is that far gone, there is little hope for it. But for now, let’s move on to Article 4.

States

This section (Article 4) goes over certain matters of equal treatment across state lines. After all, these states are all part of a Republic, and are supposed to cooperate with each other. You can’t have the police forces of two states in battle because their laws are different.

But I feel this whole subject of states is not taken far enough in this document.

Article 4.

The full and globally-recognized territory of this nation has been – and shall continue to be – divided into geographical regions known as “states” or “territories” based on a combination of historical and geographical factors. States have the right of sovereign rule within their boundaries, assuming the restrictions imposed by this document are respected. Territories have not yet attained the full rights of states, but may petition Congress to be granted these.

All policy (legislative), executive and judicial actions originating at the federal level of this republic shall not extend any further than the states, except under most extraordinary circumstances. Certainly, no federal law, federal action through any of its agents, or federal judicial decision shall apply to or be binding on any individual citizen (that being understood to include only real persons, not “private” entities created through legal means) unless that citizen has specifically requested such a bypass.

It is further expected that state governments will, in turn, deal only with county governments, and those only with municipal governments and those only with neighborhood governments (where that may apply), as this has proven to be more acceptable to citizens and more conducive to individual initiative and thus, the general welfare.

Private Enterprise. This does not mean that a private enterprise, operating across state boundaries and employing numbers comparable to numbers of citizens in a state, or producing things of value on a similar order to that of the combined production of all smaller enterprises within a state, should expect to be favored by the rights and protections afforded smaller enterprises by a state, simply by virtue of the location of their headquarters. Indeed, if any enterprise should grow to the extent outlined above, it can expect to be required to deal directly with the federal government in all matters where it must be treated as a whole, as in the matter of taxation.

The above summarizes the points that I think are important in the game of operating a nation. Though using the context of the US Constitution has limited my comments in some ways, the points I have mentioned are some of the most important. We have erred by overlooking them.

Second Warm Period on the Palouse

21 May 2017

The plants are popping out very strongly on our warmer days.

They seem proud this year. The weather was rough, and the warmth came late. They suffered this Spring, but came through it OK.

I hope we can do the same!

flowering apple tree

“I’m the best apple tree on the Palouse.”

quail on pullman trail

Quail like sunny days, too.

And That Is Banking

18 May 2017

INFLATION IS DETERMINED BY THE RATIO BETWEEN THE DEPOSITED GOODS AND THE NUMBER OF RECEIPTS (money) ISSUED.

…real banking, can all by itself, increase production.

– L. Ron Hubbard
HCO Policy Letter of 2 September 1982
AND THAT IS BANKING

The implication of the above reference is that poor banking practices can cause runaway price increases, while sound banking practices can increase the prosperity of all.

I wanted to write something about this subject because I have been studying about how home loans work, and it helped me realize some things that others have been pointing out for a long time.

Note that on 19 May I rewrote this post to try to make it more accurate; see more about that below.

Financial people tend to speak in terms that are not easily understood, and to assume you know about something that you don’t actually know about. However, most people have heard of the term “balancing the books” and this is a basic concept worth going over.

I suppose the idea that the books have to “stay in balance” is similar to the idea that “for every action, there is an equal and opposite reaction.” In the physical universe, this is true by observation. However, money and finance are conceptual universes, or you could say a kind of mathematical model of the physical universe. If a car exists, it is assumed that someone was paid to make it, whether that’s really what happened or not. So if I buy a car, I basically convert some of my cash into a vehicle. In my books (if I kept books), the price paid moves out of the Cash asset category and into the Vehicles asset category, and they stay balanced. What if someone gave me the car? I basically have to create a special category for gifts, which in a commercial business would be similar to something called “retained earnings”.

Debt

Now, say I’m a bank, and I have some deposits from my customers, and loan a portion of these to someone. This decreases my cash – the pool I make loans from. How do I replenish that pool (other than by getting more deposits)? In normal banking I would have to use part of my income (payments on loans I had already made to other people) and put that back into my cash. In mortgage banking I could do something called “selling the loan.” Basically, the loan turns into a security (essentially a document that can be bought and sold) that I can sell to a company that buys those types of securities.

Where do those companies get their money? They also create and sell securities – stock, basically – to investors. The investors include a lot of firms that help people save for retirement, as well as other investment firms. Those firms buy all sorts of stocks and other securities with that money.

The ultimate source of money for buying debt (making loans) in the U.S. is the Federal Reserve. The “Fed” is part of a network of “Central Banks.” Central Banks get charters from governments to control the money supply for them. They regulate banks, and they buy debt (or make loans, however you want to look at it). The Central Banks deal mostly with the large commercial banks, which are all international corporations. Smaller local institutions deal mostly with the big banks. The chain of purchasing debt works its way down until you get to the borrowers, who are expected to keep up their flow of payments. Governments are also large borrowers. To borrow money, they issue “bonds,” which come with a promise to pay dividends, and the full amount borrowed at the time of maturity. So in the case of government borrowing, the taxpayers, have to pay all that through their taxes. That’s why “bond initiatives” have to be approved by voters. In the end, a lot of what we make at our jobs goes to make profits for the owners of “debt.”

Making Money

Before my recent studies, I hadn’t really heard about this practice of “selling debt.” But debt is a receivable on the bank’s books, so it is worth something. It never occurred to me that you could somehow sell that to another company to get more cash (stay liquid, as the financial people call it). But this is really just another way of saying that the bank borrowed some cash. I’ve heard of companies borrowing to make payrolls, or buy new equipment. I’d just never heard of banks borrowing so they could make more loans. Of course, assuming they continue to service (collect payments) on the loans they sell, they have to forward most of those payments to the new owners of the loans, so that portion of their income is no longer available for lending.

As I wrote this, I came to see that “selling debt” could also be given another meaning. It could also be seen as selling people – governments in particular – on the idea that they should borrow money in order to do things. They shouldn’t save, they should borrow. You shouldn’t “wait until you can afford it,” you should buy it right now, do it right now. With governments, this is particularly pushed as a way to finance wars. Every major war I am aware of was financed with debt – the taxpayers (via the government) borrowed money from banks, then had to pay it all back afterwards. It is a potent way to “make money” in a short amount of time. I don’t know, however, if it really accomplishes anything over longer periods, especially if it involves making war.

Fractional Reserve Banking

Some people believe that this is a new idea. But it is really just a newer term for an old idea. According to Google’s Ngram viewer, the phrase first appeared in literature around the turn of the last century.
As long as banks have been loaning money, they have been using deposited funds (or other assets) to do so. The idea of “Central Banks” was pushed into place after it seemed that unregulated banks had an inclination to dig too deep into their cash. Now Central Banks police what fraction of a bank’s deposits (or cash, to use a simpler term) must be held in reserve so that their depositors will be happy with the illusion that their full deposited balance could be withdrawn at any time. Depositors get to account for their full deposited amounts as “cash,” when in reality only a fraction of that amount is actually available to be paid out from the bank’s reserves.

No one likes “reserves” because they just sit there and don’t do anything. It’s kind of like a having a Fire Department in your town. In a perfect world, they would never have a fire to fight, or even a cat to get out of a tree. In this real world, you need to have one because “stuff happens.” Same goes for reserves.

Some would argue that amounts held is reserve should be quite substantial. It gives stability to an economy, and breeds a certain level of confidence, even a certain willingness to take risks. I think there is validity to those arguments. But that does not mean banks need to keep 100% of their “on demand” cash deposits as reserves. This is discussed more below.

The beauty of a cashless system (in the eye of the banker)

In the “old days” money meant gold coins, or ingots of silver, or other precious metals, or gems. Today it can be reduced to a code in a bank’s database. Money (currency, really) had to be manufactured, transported and stored when not in use. Meanwhile, businessmen had grown used to account books, and moving larger sums around using bank drafts instead of currency. This began the move away from “hard” money. The “softer” the money, the easier it was to handle and move about. Banks and their major customers really liked these benefits. And so, national currencies were pushed into place, the use of paper money was greatly expanded, and finally computer systems were developed that just require an ID card to access account records.

Global-scale electronic funds transfer systems now exist, and are very widely used. All accounts at all modern banks are computerized. Banks are now relieved of the problem of having to store precious metals in their vaults, though “modern” money can still be stolen. To the extent that the world goes cashless, banks and stores are relieved of the problem of securing their on-hand currency, and only have to worry about their computers, which can be locked away in their now-empty vaults.

So, what’s so good about cash?

However, the credit or debit card holder now has to worry about the security of his electronic transactions. I once had a bank make a $2,500 error in my favor. They never bothered to correct it, though I told them about it more than once. For them it was insignificant, but that’s a huge amount for me. What if my account suddenly one day had $2,500 less in it? They better be able to correct that!

In a secure and honest world, using a card instead of cash (currency) would be a great way to go. In the world as it really exists, I want to be able to fall back on coins and paper money. If a store’s electronic payment system goes down, I want them to accept my cash. If I need some water out of an old-style vending machine, I need some coins or I go thirsty. If I want to tip a waiter, it’s easier for me to think with using a couple of extra bills.

When money is a commodity, then you can’t have some unless you earn it or physically steal it from somebody. When money is only a number in a database, what happens if I can’t get access to that database? And what happens if someone can get illegal access to it? Or in some other way fiddle with accounts just by making some entries in a computer program? It gives the tech-savvy an advantage I’m not sure they’ve earned. The cashless ideal includes a reliance on technology that is not necessarily as reliable as I need it to be. At the business level, if a transaction gets fouled up, it can be fixed later. At a personal level, it could mean the difference between staying fed or going hungry.

I’m not advocating a return to cash necessarily, though we might be forced into it should the electronic funds transfer systems stop working. But I am pointing out that our turn away from cash did not handle the most important problems we have always had: dishonesty, thievery and avoidance of real productive work.

Reality Check

My original concept of how this scam works was simple, but incorrect:

The bank has my $100. I thought this meant it could loan out $1000. That’s not exactly right. It is only allowed to loan, maybe, $90. Except, that loaned money is going to end up in another bank account, and then about $80 of that could be loaned back out. That whole cycle can be imagined to repeat maybe 5 or ten times. Now a lot more than my $100 has been loaned – deposited – and re-loaned. That’s what people call “creating money.” I discuss this more below.

The other part of my perception of what was wrong with this system was the cashless nature of modern transactions. This possibly provides more opportunity to “fiddle” the system. If you have to provide a borrower with real currency to complete a loan, then if you run out of currency, you can’t make any more loans. If you only have to credit an account on a computer, then you don’t need the currency. So, who’s to stop you from just pumping out loans? Your accountant, if he’s honest. Or a regulator, the next time you get audited. So the real point here is that the removal of hard currency from the system, reducing it all to numbers in databases, has a tendency to degrade the underlying concepts of what money is and represents. It should represent real value, real productive work. You should not be able to “fiddle” it into existence when you have done nothing to earn it.

Interest

I originally linked this trend towards a cashless system to the decline of interest rates, close to their total disappearance. I have a problem with interest because I don’t think most of the explanations for it are correct. It is often described as a payment to the lender based on the risk he takes by loaning money. But what about the risk the borrower takes in borrowing money? And what about loans between friends or relatives? I think the banks just decided to shift the paradigm because they had the power to do so. Look at interest rates on savings accounts, for instance. It used to be recognized that the depositor was actually making the bank a loan, and should earn interest on his unused balance. But depositors had no way to enforce that idea on bankers, so gradually interest payments on savings accounts have reduced to almost nothing.

The abandonment of the use of interest rates to control inflation in certain markets, and the subsequent increase in the supply of money in those markets, are bits of history not totally explained by the factors discussed above. Though the smaller banks that overextended themselves before the Great Depression could be blamed for what happened, I think that blame would be misplaced. They, however, felt the brunt of new banking regulations, while at the same time, what was to become a huge boom in the mortgage markets can be traced back to those times. I think there remains an untold story (at least it hasn’t been told to me) about how that all came about and about what is unfolding today. My concern is that we will strike out at the wrong targets (called misidentifying root cause where I work) and simply prolong our agony as a result. Benefiting from the suffering of others has never been an honorable way to gain status in a society. Yet suffering continues while a few grow unbelievably rich. Until we begin to apply more effective solutions to problems of finance, the economy, and politics, we will continue on our slide towards a non-sustainable system that will eventually totally break down.

Credit:

I relied heavily on an article written my Kenneth Ballard here:
http://www.kennethballard.com/?p=2322
to get an explanation of how banks account for the loans they make.
I don’t know much about this guy, but he seems to know what he’s talking about…I wish the subject were easier to understand. I have had a terrible time trying to do so…
Wow! Mr. Ballard has responded with corrections here:
http://www.kennethballard.com/?p=4120

Follow-up notes for those interested

According to the Federal Reserve’s own website:
“Reserve requirements are the amount of funds that a depository institution must hold in reserve against specified deposit liabilities. … Depository institutions must hold reserves in the form of vault cash or deposits with Federal Reserve Banks.”

Notice that this says nothing about loaning money. The “reserve requirement” is a fraction of total monies on deposit. So, that means the rest of the monies on deposit are available to loan out. I think the first stumbling block here is the term “deposit liabilities.” Who, who isn’t accounting trained, knows what this really refers to? It’s like two conflicting ideas in the same term. This goes back to the fact that there are two balancing sides to every transaction. When a bank receives money from a depositor, it’s not a gift, but on the other hand, the depositor gets nothing in return, except a receipt. As the reference I cited at the beginning states, in the “old days” that receipt acted as money. Nowadays, the fact that a person has money “on account” gives them the right – or ability – to buy things with it.

The depositor counts his bank balance as cash – as a liquid asset. He can do this because there is an implied promise (perhaps written somewhere) that the bank will pay him back “on demand.” More realistically, the depositor has loaned the bank some money for its use. But there is no formal loan contract, as would be the case if the depositor had purchased a CD or a bond. So the depositor is encouraged to not think of his deposits as “on loan” to the bank. However, that is closer to the actual situation. I think this difference between perception and reality is what some people object to. Yet, if the banks do a good job, no one will ever know the difference.

It could be argued that banks should be more honest about what they are doing. It would probably better reflect how they actually operate if they sold bonds or CDs to anyone who wanted to maintain a significant balance with them. Or to make them a “member” like the Credit Unions do.

Private individuals are never going to fully realize that a portion of their deposited funds is being loaned to others unless the way their account at the bank works actually makes that clear. In the past it has been a workable system in spite of this. But since interest rates collapsed, more and more people are questioning it. The “multiplier effect” would still work, but perhaps the banks should be made more responsible for both the positive and negative aspects of it. Having to “insure” bank accounts is not something that should be necessary. If the banking system were more honest with the public about how it actually operates, I think the public would support it – especially if it resulted in real economic growth at the local level. Right now something is suppressing that growth. Questionable ethics levels in the banking community does not help matters any. The banking system has a lot of power to do good in society. Or harm. It is not currently demonstrating the good side of that power.

A Miracle!

3 May 2017

First warm day of the new year!

pullman weather for Wednesday 3 May 2017

With a “scorcher” scheduled for tomorrow!

On Saturday, back to what it’s been like most of Spring, then a steady (I hope) climb towards Summer.

Links to Scientology Official Sites

23 April 2017

I give you this comment from “José” as a brief post to provide you with good links to vital information:

Hello and thank you for the information.

I would suggest that, if you are going to mention isolated pieces of information from Scientology to the general public, please refer your public to the source materials where they can find the information in sequence with examples, to avoid causing misunderstandings to people that never heard the subject of Scientology.

1.- Please, always refer first to What is Scientology, here the official link:
http://www.scientology.org/what-is-scientology.html#slide7

2.- Second, the subject you are mentioning in your respective blog entry, in this case the Tone Scale, in my opinion this is a good entry point:
http://www.scientologyhandbook.org/tone-scale/sh4_1.htm

3.- Please use references to the Scientology Manual which it is a good introduction to Scientology fundamentals for daily use in every part of life.
http://www.scientologyhandbook.org/

Best regards
José

My favorite site, which I should probably include a link to in every post I make, is the Volunteer Ministers training pages: http://www.volunteerministers.org/training.html

Symbols for Body, Mind and Spirit

15 April 2017

body-mind-spirit sketch

I was going through all the files accumulating on my desktop today to sort them into where they are supposed to go in my file system, and I ran across a few that I had pulled together to make a post that I never got around to making.

I didn’t write it at the time because the idea I had didn’t lead anywhere. But I will proceed to write about the general idea anyway.

Did you know that there are sites you can go to on the internet that allow you to make a drawing and then save it? I hate computer drawing programs because they are almost all mouse-based and a mouse is really not a very fun thing to draw with. I’ve preferred a pen, preferably black ink, for many years now. And though sometimes brushes and colors are nice, too, the real appeal of digital drawing is that you don’t have to scan it in from paper after you draw it. The above sketch is pretty pathetic, don’t you think? But it illustrates the idea I had. Is a point radiating some lines a symbol for a body, and is a big circle a symbol for the mind or the spirit?

I couldn’t get a good answer to my question. We all know that the traditional “stick figure” has been used to represent a human being since cave man times. But the information I found did not suggest that any consistent symbology has ever been used for non-material concepts like “mind” or “spirit.” And lookups are filled with modern artistic renditions that have little relation to ancient history.

oriental circle character

The simple unclosed circle was developed in Japan to convey several overlapping Zen ideas concerning human consciousness, or the human essence. Though a certain cyclic meaning is conveyed, the fact that the circle is open suggests that these cycles could be escaped from.

sketch of traditional depiction of buddha

However, as this modern sketch of a traditional depiction of the Buddha indicates, a circle placed behind the head in paintings or statuary has a special significance that is shared widely across the planet. This symbol is used both in the West and in the East to indicate a “holy” being.

It is of esoteric significance, perhaps, that if circles or balls of energy are perceived that seem to be alive, this would be a mental manifestation of the being creating it, as the being itself is entirely immaterial. Thus, the circle or sphere of light, according to esoteric findings as well as actual reported observations, is a very valid symbol for the being and its mind together, body absent or elsewhere, as this is how they actually tend to appear.

The symbol of rays radiating from a center has no similar homogeneous meaning that I could find. As a cross or “X” it is a letter and/or number in several languages and symbol systems. To include a head and four appendages you have to go to the five-pointed star or pentagram, which is rare or missing as a normal writing symbol but otherwise used abundantly in heraldry and design. The pentagram is so easy to draw, so regular, and there are so many things in life that come in fives, that it has been known to symbolize all sorts of things, including the body, or the body as a manifestation of a divine intention.

sketch representaing a turtle or body

I will end with another of my sketches, as it is more colorful than the more carefully-drawn symbols I could find. It was meant to imitate a Native American symbol I found of a turtle, so it has a little tail. However, unlike the stylized turtle I found, it has all five digits drawn in, indicating the fractal or repetitive nature of so many biological designs.

Sorting Out Society

2 April 2017

The “Thinking Out Loud” category is for hypotheses, ideas, opinions. Though of course these are always influenced, or colored, by prior training and study, I put a post here when I am unsure of the facts, or don’t care to be academically rigorous.

block man pencil sketch

Sketch I made for art class, about 1970. I picked it to symbolize the effects that “bad things” have on life and the individual.

A problem of money

What got me going on this line of thinking was a difficulty I was having obtaining funding for a project. I thought to myself: Someone doesn’t want to spend this money; they want to sit on it instead. And that lead me to the subject of banking.

Banking

Banking, it is said, started when tradesmen (this is the story I heard) wanted someplace to store their gold securely. The “banker” stepped forward, offering to provide this service. In exchange, he would be allowed to loan out the money to others, and collect interest payments on these loans. Interestingly, according to Wikipedia, originally the most secure places for such deposits were temples and palaces. But we won’t go down that road just yet.

Here we have a situation where a professional-level service is invented to fulfill a need. The service consists basically of amassing deposits (and safekeeping them) which one can then earn money on. It is presumed the need arose due to 1) lack of space at home to store such items, or 2) fear for the security of the assets.

Today, money exists as figures in accounting books. And those books are actually stored on computers. There is no longer any great need to provide security for currency. All one must do is secure the computers.

Traditional banking still exists, but cash deposits bring back virtually no earnings to the depositor. Investment banking, on the other hand, has skyrocketed. The whole society has been pushed into making investments and buying on credit. Why? Keeping deposits safe doesn’t make money, especially when they are only numbers in a computer. Traditional banking can still pay off, but there is much more to be made managing investment portfolios and offering short-term credit at very high interest rates. This work relies on the existence of asset pools, and managers of these pools are often rewarded according to the size their pool. Even if you could sell some assets to buy, say, land (which works under a different system), the modern banker would prefer to loan you the money to buy the land, with your assets as collateral. It would be simpler for the land buyer to just sell one asset in order to buy the other, but is not in the interest of the bankers to operate that way.

Back to Basics

The original need for banking, then, arose – we are to suppose – from an uncertainty concerning the security of real assets (gold). Why would anyone have this uncertainty? Because people existed who were willing and able to steal such things from other people who had acquired them more-or-less honestly. Those people are commonly called “criminals.” They have always been a major nuisance in any society. They are willing to break the most basic rules, or morals, in a society. Why? That is a question to be answered elsewhere. It HAS been answered, but for the purposes of this discussion, it is irrelevant.

Let’s say you had a criminal of somewhat unusual intelligence. What might he be attracted to do, say, in the banking scenario above? One thing he could do would to become a banker. Then he could hire some hoodlums (criminals of leser intelligence, we might imagine) to go around town and steal precious things from people’s houses. He would then advertise his services, noting the recent increase in the crime rate. He would have to keep his connection to the hoodlums a closely-guarded secret. And in such a wise, he would attract more business to his bank.

Application of the criminal modus operandi (MO) to other fields

Mishaps, crime, sickness, hunger, disputes and war are some of the big problems that society must deal with. Smart criminals could secretly cause such things to happen, then offer services to “protect” people from the bad effects of these things. In modern times, criminals have even been accused of causing bad weather, floods, earthquakes, and ecological collapse. For them it would seem like “good business,” would it not?

What professions these days offer such services?

  • Lawyers
  • Doctors
  • Insurance Brokers
  • Psychiatry and Psychology
  • The military and arms manufacturers
  • Police
  • Governments
  • Educators
  • Preachers

All of the above fields are subject to pressure from the criminal world and can turn criminal. In other words, they offer services based on the fear that something bad will happen. Most people, though, would not be interested in causing such bad things to happen. Only the criminals would.

The real essentials

All an honest society of human (or similar) beings would need to survive – even prosper – would be the following:

  • Food (and water)
  • Shelter (housing and community buildings)
  • Clothing sufficient for seasonal weather variations
  • Transport
  • Systems for handling waste
  • Means of communication
  • Quiet times
  • Opportunities to play
  • Opportunities for spiritual growth

How, then, did we get governments, lawyers, war, insurance companies and psychiatry? It traces back to the criminal and his origins.

Recent discoveries support these observations

Hubbard was the first researcher I studied who really laid out the basics for me. But others before and more commonly after him have reiterated those basic findings.

The human personality is immortal and capable of remembering anything it has ever experienced. Thus, a simple process of sharing experience could ultimately replace education as we now know it. It could also replace all the self-important “research institutions” that seem to look and look but never find the answers. Of course, this ability to remember must be unlocked. That’s where spiritual development comes in. And who was pushing the inability to remember? Criminals, of course. You wouldn’t want someone getting murdered, then coming back, going to the police, and telling them exactly how it happened and who did it. (Variations on this have actually occurred.)

Hubbard adds that the being is capable of knowing anything that can be experienced. On an esoteric level, this indicates that anything is possible. On a more practical level, it means that the plagues of man caused by criminals or otherwise could in theory all be dealt with at the spiritual level. This even includes healing of the body.

People are basically good. They are willing to play the game of human life and cooperate in doing so. All the basic requirements of the game could be provided based on this willingness alone. There is no real evidence that any of the professions listed above are in fact indispensable. There is only evidence that in a world where criminals go undetected and unexposed, these extra functions become apparently necessary.

Huge numbers of people on Earth and elsewhere live out their lives doing nothing but the essentials, as listed above. Some never experience any major criminal activity. Others do and bounce back. Some less fortunate get sucked into the criminal system of die at the hands of criminals. These could be as much as 1/4 or more of the population of this planet. That’s too many. With better understanding of and control over the criminal, most of those adversely affected could be returned to happiness.

Happiness, you could say, is the overcoming of not unknowable obstacles toward a known goal.
– LRH, 1954