Tag Archives: economic warfare

Electro-Physics: The Theory Of Economic Warfare

6 Jul
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We all know that mainstream economists are usually wrong.

But did you ever get the feeling that perhaps all the gobbledygook spouted by economists in support of their latest “analysis” and predictions, was — possibly unbeknown even to those economists — little more than an intellectual distraction? An obsession with trees, by those who are, despite sitting in ivory towers, unable to see the forest? A mass of abstractions, assumptions, and guesstimations, serving only to obscure the truth about economic reality?

If so, then the following excerpts will not only confirm your intuition. They will shine a blazing spotlight on the reality of mainstream economics theory — and practice — post-WW2.

And much more besides.

These excerpts are only a small portion of what is a lengthy, and far more technical document. One purportedly discovered on July 7, 1986 in an IBM photocopier purchased at a surplus sale.

I have chosen to quote only some of those few sections that might be more approachable to the typical reader of this blog. Those interested in far more detailed theoretical, mathematical, and technical information will find much food for thought and analysis in the full document (linked at the conclusion).

My bold emphasis is added:


Energy is recognized as the key to all activity on earth. Natural science is the study of the sources and control of natural energy, and social science, theoretically expressed as economics, is the study of the sources and control of social energy. Both are bookkeeping systems: mathematics. Therefore, mathematics is the primary energy science. And the bookkeeper can be king if the public can be kept ignorant of the methodology of the bookkeeping.

the objective of economic research, as conducted by the magnates of capital (banking) and the industries of commodities (goods) and services, is the establishment of an economy which is totally predictable and manipulatable.

General Energy Concepts

In the study of energy systems, there always appears three elementary concepts. These are potential energy, kinetic energy, and energy dissipation. And corresponding to these concepts, there are three idealized, essentially pure physical counterparts called passive components.

  1. In the science of physical mechanics, the phenomenon of potential energy is associated with a physical property called elasticity or stiffness, and can be represented by a stretched spring.In electronic science, potential energy is stored in a capacitor instead of a spring. This property is called capacitance instead of elasticity or stiffness.
  2. In the science of physical mechanics, the phenomenon of kinetic energy is associated with a physical property called inertia or mass, and can be represented by a mass or a flywheel in motion.In electronic science, kinetic energy is stored in an inductor (in a magnetic field) instead of a mass. This property is called inductance instead of inertia.
  3. In the science of physical mechanics, the phenomenon of energy dissipation is associated with a physical property called friction or resistance, and can be represented by a dashpot or other device which converts energy into heat.In electronic science, dissipation of energy is performed by an element called either a resistor or a conductor, the term “resistor” being the one generally used to describe a more ideal device (e.g., wire) employed to convey electronic energy efficiently from one location to another. The property of a resistance or conductor is measured as either resistance or conductance reciprocals.

In economics these three energy concepts are associated with:

  1. Economic Capacitance – Capital (money, stock/inventory, investments in buildings and durables, etc.)
  2. Economic Conductance – Goods (production flow coefficients)
  3. Economic Inductance – Services (the influence of the population of industry on output)

All of the mathematical theory developed in the study of one energy system (e.g., mechanics, electronics, etc.) can be immediately applied in the study of any other energy system (e.g., economics).

Mr. _________’s Energy Discovery

What Mr. _________ had discovered was the basic principle of power, influence, and control over people as applied to economics. That principle is “when you assume the appearance of power, people soon give it to you.”

Mr. _________ had discovered that currency or deposit loan accounts had the required appearance of power that could be used to induce people (inductance, with people corresponding to a magnetic field) into surrendering their real wealth in exchange for a promise of greater wealth (instead of real compensation). They would put up real collateral in exchange for a loan of promissory notes. Mr. _________ found that he could issue more notes than he had backing for, so long as he had someone’s stock of gold as a persuader to show his customers.

[Readers of my essay, The People’s NWO: Every Man His Own Central Banker will recognise here the reason why I — and many others — have argued that Usury is The Key to the whole economic system here described. In past times, it was primarily the offering of security for one’s money (gold/silver) that induced people to deposit their stored wealth in the vaults of the goldsmiths / money-lenders (bankers). In modern times, it is the offering of usury (interest) on bank deposits that “induce(s) people into surrendering their real wealth in exchange for a promise of greater wealth”. More importantly, it is the offering of usury on bank deposits that distorts and confuses our ability to understand the fundamental difference between, and critical need to separate the functions of, those conceptual elements labelled “currency” (medium of exchange), and “money” (store of value).]

Mr. _________ loaned his promissory notes to individuals and to governments. These would create overconfidence. Then he would make money scarce, tighten control of the system, and collect the collateral through the obligation of contracts. The cycle was then repeated. These pressures could be used to ignite a war. Then he would control the availability of currency to determine who would win the war. That government which agreed to give him control of its economic system got his support.

Collection of debts was guaranteed by economic aid to the enemy of the debtor. The profit derived from this economic methodology made Mr. _________ all the more able to expand his wealth. He found that the public greed would allow currency to be printed by government order beyond the limits (inflation) of backing in precious metal or the production of goods and services.

Apparent Capital as “Paper” Inductor

In this structure, credit, presented as a pure element called “currency,” has the appearance of capital, but is in effect negative capital. Hence, it has the appearance of service, but is in fact, indebtedness or debt. It is therefore an economic inductance instead of an economic capacitance, and if balanced in no other way, will be balanced by the negation of population (war, genocide). The total goods and services represent real capital called the gross national product, and currency may be printed up to this level and still represent economic capacitance; but currency printed beyond this level is subtractive, represents the introduction of economic inductance, and constitutes notes of indebtedness.

War is therefore the balancing of the system by killing the true creditors (the public which we have taught to exchange true value for inflated currency) and falling back on whatever is left of the resources of nature and regeneration of those resources.

Mr. _________ had discovered that currency gave him the power to rearrange the economic structure to his own advantage, to shift economic inductance to those economic positions which would encourage the greatest economic instability and oscillation.

[Regular readers will here find a powerful affirmation of the reason why your humble blogger has long advocated that only a correct understanding of the difference between “money” as store-of-value, and “currency” as medium-of-exchange, with resultant currency reform, can save the world from the predations of the usurers — that is, the money/currency/”credit” issuers. See Imagine A World With No Banks]

The final key to economic control had to wait until there was sufficient data and high-speed computing equipment to keep close watch on the economic oscillations created by price shocking and excess paper energy credits – paper inductance/inflation.


The aviation field provided the greatest evolution in economic engineering by way of the mathematical theory of shock testing. In this process, a projectile is fired from an airframe on the ground and the impulse of the recoil is monitored by vibration transducers connected to the airframe and wired to chart recorders.

By studying the echoes or reflections of the recoil impulse in the airframe, it is possible to discover critical vibrations in the structure of the airframe which either vibrations of the engine or aeolian vibrations of the wings, or a combination of the two, might reinforce resulting in a resonant self-destruction of the airframe in flight as an aircraft. From the standpoint of engineering, this means that the strengths and weaknesses of the structure of the airframe in terms of vibrational energy can be discovered and manipulated.

Application in Economics

To use this method of airframe shock testing in economic engineering, the prices of commodities are shocked, and the public consumer reaction is monitored. The resulting echoes of the economic shock are interpreted theoretically by computers and the psycho-economic structure of the economy is thus discovered. It is by this process that partial differential and difference matrices are discovered that define the family household and make possible its evaluation as an economic industry (dissipative consumer structure).

Then the response of the household to future shocks can be predicted and manipulated, and society becomes a well-regulated animal with its reins under the control of a sophisticated computer-regulated social energy bookkeeping system.

Eventually every individual element of the structure comes under computer control through a knowledge of personal preferences, such knowledge guaranteed by computer association of consumer preferences (universal product code, UPC; zebra-striped pricing codes on packages) with identified consumers (identified via association with the use of a credit card and later a permanent “tattooed” body number invisible under normal ambient illumination).

[Who can dispute the evidence of the rise and rise of exactly this phenomenon today — Facebook, Amazon, YouTube, Google, indeed all the dominant players in the Internet Age use ever more sophisticated computer systems to monitor user behaviour, and gather information on users’ personal consumer preferences, in order to sell more products, or advertising space, or user data to governments and commercial entities.]


Economics is only a social extension of a natural energy system. It, also, has its three passive components. Because of the distribution of wealth and the lack of communication and lack of data, this field has been the last energy field for which a knowledge of these three passive components has been developed.

Since energy is the key to all activity on the face of the earth, it follows that in order to attain a monopoly of energy, raw materials, goods, and services and to establish a world system of slave labor, it is necessary to have a first strike capability in the field of economics. In order to maintain our position, it is necessary that we have absolute first knowledge of the science of control over all economic factors and the first experience at engineering the world economy.

In order to achieve such sovereignty, we must at least achieve this one end: that the public will not make either the logical or mathematical connection between economics and the other energy sciences or learn to apply such knowledge.

This is becoming increasingly difficult to control because more and more businesses are making demands upon their computer programmers to create and apply mathematical models for the management of those businesses.

It is only a matter of time before the new breed of private programmer/economists will catch on to the far reaching implications of the work begun at Harvard in 1948. The speed with which they can communicate their warning to the public will largely depend upon how effective we have been at controlling the media, subverting education, and keeping the public distracted with matters of no real importance.


This should be sufficient for the typical reader — and the serious economics enthusiast — to see a blazing ray of light.

For those interested in the theoretical/technical and mathematical foundations, subsequent topic areas include:

Click here for the entire document.

h/t and thanks to reader Kevin Moore for bringing this to our attention.

Finally, for conspiracy buffs with a keen eye, the following network diagram of the “three industrial classes” taken from the document may be of interest. Particularly the form (ie, shape), and, the numbers (circled in red):

Click to enlarge

Click to enlarge



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