This model attempts to illustrate a Strong Towns' perspective of municipal financing of our communities based on a development Growth Ponzi Scheme. http://www.strongtowns.org/the-growth-ponzi-scheme/
The communal economic investment by the community to help generate future economic prosperity and improve the community's quality of life.
If the community generates greater economic prosperity as a result of the Near Term Cash either directly through increased Municipal Revenue or indirectly through the enhancement of Community Wealth Generators and Place Making improvements within the community then it is a desirable investment.
If, however, it leads to ever increasing debt and the chasing of outside investments with the community as the means of collateral then it is a Growth Ponzi Scheme and the community needs to create some new paradigms to find a different path.
People, generally, do not seem to be conscious of, or care
about, the enormous dangers of climate change and even the possibility of a
devastating war in the Korean peninsula that could turn nuclear. They carry on
with their routine and banal conversations as if that was all that mattered. In
the 60s there were peace demonstration, there was more awareness and public engagement
in the face of the thread of nuclear war. Could the pressures and demands of modern
capitalism, now no longer tamed by a competing communist system that could potentially
appear to be more attractive, be a causal factor? People caught up in the turmoil of a positive
feedback loop rarely perceive reality beyond it. This simple CLD tries to
illustrate the dynamic and feedback loops that could be responsible for this strange
apathy and how our present day economic system could be blinding us to imminent
danger.
The macroeconomic ruel: SPENDING = INCOME = OUTPUT, WHICH DRIVES EMPLOYMENT is presented here in a schematic form. Output can be taken to be equivalent to GDP. In order to maintain output it is necessary for all the income earned to be spent. If this is not the case, then companies find they have excess unsold stock on their hands and will cut back on production. This, in time, will lead to an increase in unemployment as companies need fewer employees. The shortfall in spending can be made up by any of the three sectors that contribute to total output. However, in cases where a country has a trade deficit and where the private sector is not spending or investing enough, the only option is for the government to Net Spend i.e. to spend more than it collected in taxes causing a fiscal deficit.
If private bond holdings are going down and the government is running a big deficit then the central bank has to monetize bonds equal to the deficit plus the decrease in private bond holdings. We don't show the details of the central bank buying bonds here, just the net results.
See blog at http://howfiatdies.blogspot.com for more on hyperinflation, including a hyperinflation FAQ.
From Jay Forrester 1988 killian lectures youtube video describing system dynamics at MIT. For more detailed biography See Jay Forrester memorial webpage For MIT HIstory see IM-184930 For Applications se IM-185462
Added several versions of the model. Added a flow to make C increase. Added a factor to be able to change the value 0.5. Older version cloned at IM-46280
From Bill Mitchell and Warren Mosler December2018 billy blog entry and mosler's MMT white paper (google docs) 2019. Some highly aggregated stocks and flows and boundaries introduced.See also Feb 2026 updated insight
A candidate for global adoption in a shared commons model.
A party includes the following types:
A living individual
A living organization
A living enterprise
A living individual would be part of a cooperative in this context the living organization and enterprise relationships are "true".
A stock and flow model which can be copied and local variables applied to aid in economic or community development.
Students are encouraged to start a business or support local economic development in experience based projects.
Students are rewarded in an alternative commerce model through an international cooperative model.
Goal "re-use party records" as an audit requirement from a shared store (global commons candidate) which provides the due diligence required for General Accounting Accepted Practices.
Party Management Systems are closed in the sense of living individuals, organizations and enterprises. The party defines the vector specifics and variables must derive their transactions from the party master record "as is" sourced from the system of record (store) in a service.
Issue: The prescribed use of a party management system intends to reduce the cyber-security threats of a breach systematically.
Measurable outcomes: Reduction of party data collected and stored in living organizations or living enterprises.
from a shared data store, in doing so the segregation of duties component related to management of master records and tables are
This page provides a structural analysis of POTUS Candidate Jim Webb. The method used is Integrative Propositional Analysis (IPA)
available:
http://scipolicy.org/uploads/3/4/6/9/3469675/wallis_white_paper_-_the_ipa_answer_2014.12.11.pdf
DRAFT IPA of Jim Webb POTUS candidate economic policy
