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New Creative Economic Theory Will transform the Third World

Updated on March 16, 2016

Seventeen African nations gained their independence in 1960, but the dreams of the independence era were short-lived.

Mozi said: He who rules a large state does not attack small states: he who rules a large house does not molest small houses. The strong does not plunder the weak. The honoured does not demean the humble. The clever does not deceive the stupid. This is beneficial to Heaven above, beneficial to the spirits in the middle sphere, and beneficial to the people below. Being beneficial to these three it is beneficial to all.

— Mozi, Book 7: Will of Heaven I

The Crucial Issue of This Crisis

Numerous countries in the developing world are poised to finally begin debating a new integrative public money-creativity machine-two factor structural axiomatic economics based transformation of regional economies that has been on the planning books for many years. Adler and Kelso, Professor Kaoru Yamaguchi, Dr Stephen Thaler, Professor Robert Ashford, Professor Egmont, and many others organized their research on different studies belonging to different orders of thought, of which Ssemakula Peter Luyima’s independent research in The New Future of Money, brings together their dynamic work to form the first Creative Economic Theory that will transform the Third World and World Economy.

More than 50 years ago, American philosopher Louis Orth Kelso boldly proposed that the United States should embark on a program of sharing democratic capital acquisition-equitable economic arrangements with the rest of the world, which he described as “Two Factor Economics for equitable world development”. During his many years of research work he presented his optimistic plans for introducing his revolutionary economic concept.

The Great Depression 1929 - Documentary

From the beginning of the Great Depression, Louis. O. Kelso, and like-minded thinkers in the emerging Kelsonian scientific and economic communities in the United States, saw Binary economics not only as a giant step of transforming the world economy but also to virtually eliminate unemployment, which could happen to all nations regardless of whether they are a socialist or capitalist economies, but also as the organizing principle of new self-sustaining economies, new industries, improved agriculture, and the road to global peace.

Just as Professor Robert Ashford is stressing today, the Binary economy pioneers recognize that a growing number of people are concerned about the well-being of poor and working people in U.S. and throughout the world, a new creative economy must be introduced to create a new environment to achieve economic justice that is systematically related to the distribution of economic opportunity and economic power. Since the 1950s it has been clear that Binary economics could provide the foundation for such a transformation of the world economy. American Philosopher Louis Kelso wisely stressed that such long-range, multi-nation industrial development program based on Binary economics development would be the most effective policy to avoid the widening gap of poverty and inequalities worldwide.

Binary Economist Professor Ashford Robert

Louis O. Kelso Economic Theorist- July 1983 Air date

With an international MuRatopian Creative Economic Theory now underway, it is time to bring to fruition the concepts and possibilities for public money-structural axiomatic technological centered, Kelsonian Binary agro industrial complexes, or MuRatopian Creative Economy, to start rebuilding the world economy on the basis of the most advanced technologies “Creativity Machine Paradigm”.

MuRatopian Creative Economy or Poverty/Hardships

In the mid 1950’s, it was clear to Louis .O. Kelso that the continuing Great Depression in the Western nations could again erupt into a global economic catastrophe. Recognizing the critical nature of the one factor free market equation of the economic order, he clearly identified it as the structure that controls the earning power of individuals and families and the nature and extent of economic opportunity in the society. Above all, he understood how corporate finance works and how the current global economics has dashed hopes for economic reshaping of the African continent.

Employee Stock Ownership Plan (ESOP), was also the basis of the studies carried out by Louis .O. Kelso in the post-war period, for a “way to connect working people with capital credit, so that they could buy and pay for company stock out of its earnings” based on his experience knowing that capital was self-financing, that it could be financed from credit as well as from savings.

But, ever since the Great Depression, the logic of Say’s Law of Markets “Supply creates its own demand” convinced Louis.O.Kelso that unknown factors undermined Say’s elegant and irrefutable logic, that the solution to the unemployment crisis in the free market economy was to recognize, not only that capital instruments perform work and earn income, thereby constituting a second factor of production-and hence the need for democratic capital acquisition to poor and middle class people that is now scarcer and presently only available to the richest society: 1%.

Joe Bongiovanni of EconomicStability.org interviews Professor Kaoru Yamaguchi at the American Monetary Reform Conference in Chicago (2010)

Public Money System (New System Design: Monetary Reform)

In 1988, Professor Kaoru Yamaguchi introduced the concept of MuRatopian Economy suggesting that a new Public Money System could be produced economically by self-management wherein capitalists and workers could become co-workers. According to him, “We do not ask, however, how such a transition from a capitalist economy to a MuRatopian economy can be made possible, and how it can really be accomplished. We leave these questions to political economists and contemporary activists, for every country at different stages of economic development with a different cultural and political background should have different strategies to attain this transition. Instead, we assume the MuRatopian economy can be attained from the capitalist economy described in Chapter 4 Beyond Walras, Keynes and Marx: Synthesis in Economics Theory Toward a New Social Design.”

Public Money Act

Congressman Dennis Kucinich explaining The Key to Economic Recovery

Half of the world’s wealth is now owned by the top 1%, according to a recent Credit Suisse report.

The extent of global inequality represents a challenge to societies across the world, as governments and international organisations look to encourage inclusive and sustainable growth. The World Bank estimates inequality in countries around the world using the GINI index – a measurement of the extent to which income deviates from a perfectly equal distribution. On the scale, 0 represents perfect equality and 100 would represent total inequality.

The map presents an interesting picture of global inequality, with much of the globe returning high levels of inequality, including large parts of Asia, Africa and the Americas. By contrast, Europe, especially in the east and in Scandinavia, shows the lowest levels of inequality.

If we consider the Americas we see the lowest levels of inequality in Canada, with a GINI score of 33.68 – even this places it some way down the global list. For comparison, the USA scores 41.06 – placing it between Madagascar and Russia on the list. In South America, much of the continent returns high GINI scores, including scores in excess of 50 for Brazil, Colombia and Chile.

Eastern Europe and Scandinavia return low scores for GINI, with the Ukraine, Norway and Finland all among the top performing countries around the world. The general picture for Europe, especially when compared to the rest of the world, is overall lower levels of inequality, as well as fairly consistent levels across the continent.

There is a lack of data for Africa, compared to the rest of the world, but the map presents a picture of relatively high inequality. Three African nations return scores in excess of 60. However, some nations return relatively low scores, for example Niger and Ethiopia.

The situation in Asia is diverse, with some countries experiencing relatively high inequality, while others have much lower levels. Kyrgyzstan has a GINI score of 27.4, while at the other end of the scale the Philippines has a score in excess of 40.

Ssemakula Peter Luyima, the author of the newly released The New Future of Money, and a pioneer of the revised version of Professor Karou Yamaguchi’s original concept, promotes the new integrative paradigm, in a comprehensive way, and requires that four disciplines of different concepts to be fully developed, in an integrated fashion. The first exploits the lessons of debt money system and the transition process to public money system; the second is an equitable economic arrangements based on sharing earnings of capital income achieved from the binary reform market approach to poor and middle class people; the third provides the correct formal theoretical foundation capabilities of the entire world monetary economy ; and the fourth utilizes the Creativity machine that generate subsequent ideas for the great benefit of humanity.

In fact, understanding the critical nature of the conventional economy worldwide, Ssemakula Peter Luyima considered a new craft of an integrative creative economic foundation as the major research and development project for an international equitable economic outreach in his research The New Future of Money. Fast-paced advances in the Binary Economics program led Ssemakula Peter Luyima to focus more intensely on his new craft of economic theory, with a new strategy that understands the importance of each of the four disciplines needed to devise a new “MuRatopian Creative Economic” concept for equitable and sustainable nation-state economies in Africa and worldwide.

AXEC provides the correct formal foundations of theoretical economics.

The elementary MuRatopian Creative economy is given with this axiom set

Y: total income, W: wage rate, L: labor input, D: dividend, N: number of shares, O: output, R: productivitness, C: consumption expenditure, P: price, X: quantity bought, Z: placeholder for elementary and composed variables, Q: profit (total, monetary, nonmonetary), S: saving. In the path representation of the axioms (right) the seven elementary variables run through t periods.

In the unit circle representation of the elementary economy (left) holds: market clearing X=O, budget balancing C=Y, and DN=0 in t=0. Total profit Q is zero.

Professor Kakarot-Handtke, Founder of AXEC new foundations of Economics, is credited with coining the term “AXEC Axioms”, to describe the correct formal foundations of theoretical economics. His Geometrical exposition of structural axiomatic Economics paper explains how the market system works. Ssemakula intergrated his work to promote the idea for a new structural law of supply and demand.

In Its Image Movie

In the mid 70s, Steve Thaler began toying with rudimentary artificial neural networks. Soon after, he began to experiment with colonies of neural networks that launched into brainstorming sessions with one another to produce the equivalent of stream of consciousness and contemplation.

As he observed these neural architectures developing attitudes about themselves, he began to wonder if all of the sublime aspects of human cognition, including feeling and self-awareness, could be captured in inorganic systems of switches and interconnections. Ultimately, his answer was yes.

In 1994, Dr Stephen Thaler and his company Imagination Engines Inc disclosed to the world an invention called the “Creativity Machine”, to help develop ideas that are critical for building the future MuRatopian economy and one that could form the basis as noted by Dr Stephen of "a peaceful intelligent world economy".

Taking Dr. Stephen Thaler’s lead, Ssemakula took up the initiative to include a chapter in his book to study “Creativity Machine vision”, and how Creativity Machine Paradigm could become the center of complexes to develop ideas, produce important technology products, provide a process to build an ultimate platform for peaceful nation-state economies and industrial development, and revolutionizing agriculture.

Creativity Machine Paradigm

AGENDA 2063: The Africa We Want-Documentary

African Union Commission Chairperson Nkosazna Dlamini-Zuma speaks during a press conference
African Union Commission Chairperson Nkosazna Dlamini-Zuma speaks during a press conference

MuRatopian Creative Economy-Africa Agenda 2063

MuRatopian Creative agro-industrial complexes economic concept was developed to answer the question that the author battled with writing his research work The New Future of Money: “How can we most quickly bring the African countries up to the standard of living of the advanced sector?” MuRatopian Intersection Economics, he proposed, would solve the immediate problems of poverty and inequalities, but most importantly, they would allow nations to “jumpstart” to new technologies, in their course of achieving Africa Agenda 2063.

As an example for the potential of MuRatopian Intersection Economics, a December Hub Featured Article “Is It on Time to Reconstruct the World Economy” stated that “the time has come when new monetary system derived from MuRatopian Intersection Economics can be looked upon very seriously as a key to releasing developing countries from the bondage imposed by necessity of securing Foreign Aid, austerity policies, and burdened by government accumulating Debt policies from outside….Such [MuRatopian Intersection Economics] could free African people from any economic limitations hitherto imposed on poor nations….”

So, to build agro industrial MuRatopian Creative Economy means to build an entire new continent, to build infrastructure to last as quality structures for a coming period of 50 to 100 years…..These MuRatopian creative communities serve not only as self-sustaining productive nations of high technology, but as the hub of environmental sustainable technology services to agriculture and other developments over areas of geographical surrounding.

A network of such MuRatopian creative economies and communities throughout continents such as Africa transforms the continent into a vast new habitable and fruitful region, and establishes a continental creativity-machine system of centers of high technology through which to transform the entire continent.

Global MuRatopian Creative Economy Plans

As the potential for MuRatopian Creative development becomes popular, it will not take long for other developing nations to begin their own studies of how to implement MuRatopian Intersection Economics in their respective countries.

MuRa(=Green Village)-topia implies our new U-topia in the coming futures. A utopia is a community or society possessing highly desirable or near perfect qualities

The plan will propose the creation of MuRatopian Creative Economies, with the goal of increasing democratic capital acquisition to poor and middle class people, over a two-decade period. In addition to develop a strategy to free African continent from the colonial grip of the International Monetary Fund, and place it firmly on the path of economic development.

MuRatopian Creative Economy for Africa Agenda 2063

In his research work The New Future of Money, Ssemakula in addition dedicated a chapter promoting the Agenda 2063 to place the MuRatopian Intersection Economics pathway to economic development for the development of many African nations. By this time, it is clear that the continent of Africa continues to face very difficult times. The human suffering caused by a century of direct colonial bondage, and decades of International Monetary Fund financial strangulation, have led to the emergence of new diseases, and the devastating lack of medical, nutritional, or any other infrastructure to save Africa dooming the continent.

Today, we have progressed no further toward peace than African Union proposed Africa Agenda 2063 plans as a development policy of the next 63 years. Rather than that, the region is still embroiled in what could easily become endless wars.

The solution today is the same as it was a half century ago: Deploy the most advanced Creativity Machine technologies, clustered around the placement of a succession of advancing public money system communities and Kelsonian binary financing, structural axiomatic model capabilities at the center of new infrastructure and agriculture and industrial complexes. Make educational, medical, cultural, modern transport, democratic capital acquisition to poor and middle class people, housing, and other infrastructure available to each citizen.

Prepare the nations of Africa, Asia, and worldwide to participate in a 21st century that sees the fulfillment of the potential the fulfillment of the potential of each individual. And rebuild the industrial and capital-goods-producing sectors of what have historically been industrialized nations, to make that a reality.

MuRatopian Intersection Economics

Thought-Provoking Questions

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Select Bibliography

[aristotle] Aristotle. The Politics of Aristotle. Translated by Ernest Baker. Oxford: Clarendon Press, 1946.

[ashford] Ashford, Robert H.A. The Binary Economics of Louis Kelso: The Promise of Universal Capitalism. Rutgers Law Journal. 22(1990): 3-120.

[berle1] Berle, Adolf A., Jr. New Directions in the New World. New York: Harper and Brothers Publishers, 1940.

[berle2] Berle, Adolf A., Jr. Power Without Property. New York: Harcourt, Brace and Company, 1959.

[buss] Buss, James A. and William E. Buss. A note on the Economic Impact from the Financed Capitalist Plan. Research in Law and Economics. 3(1981): 227-239.

[kelso1] Kelso, Louis O. Karl Marx: The Almost Capitalist. American Bar Association Journal. 43(1957): 235-279.

[kelso2] _. Labor’s Great Mistake: The Struggle for the Toil State. American Bar Association Journal. (1960).

[kelso3] _. Poverty’s Other Exit. North Dakota Law Review. 41(1965):147-155.

[kelsoadler1] Kelso, Louis O. and Mortimer J. Adler. The Capitalist Manifesto. Westport, Connecticut. Greenwood Press, 1958.

[kelsoadler2] and _. The New Capitalists. Westport, Connecticut: Greenwood Press, 1961.

[kelsokelso1] Kelso, Louis O. and Patricia Hetter Kelso. Democracy and Economic Power. Lanham, Maryland: University Press of America, 1986, 1991.

[kelsokelso2] and _. The Great Savings Snafu. Business and Society Review. Winter(64)(1988): 42-47.

[kelsokelso3] and _. The Right to be Productive. The Financial Planner. 11(8)(1982), 51-61; 11(9)(1982), 87-110.

[moulton1] Moulton, Harold G. The Dynamic Economy. Washington, D.C.: The Brookings Institution, 1950.

[moulton2] Moulton, Harold G. The Formation of Capital. New York: Arno Press, 1975.

[say1] Say, Jean-Baptiste. Letters to Mr. Malthus. New York: Agustus M. Kelley Publishers, 1967.

[say2] Say, Jean-Baptiste. A Treatise on Political Economy. Edited by Clement C. Biddle. Philadelphia: Lippincott, Grambo and Co., 1853.

[speiser] Speiser, Stuart M. A Piece of the Action. New York: Van Nostrand Reinhold Company, 1977.

Thaler, S. L. (1995). Death of a gedanken creature, Journal of Near-Death Studies, 13(3), Spring 1995.

Thaler, S. L. (1996a) Creativity via network cavitation – an architecture, implementation, and results, Adaptive Distributive Parallel Computing Symposium, Dayton, Ohio, 8-9 August, 1996.

Thaler, S.L. (1996b). The death dream and near-death darwinism, Journal of Near-Death Studies, 15(1), Fall 1996.

Thaler, S. L. (1997). "The Fragmentation of the Universe and the Devolution of Consciousness," U.S. Library of Congress, Registration No. TXU00775586, 1997.

Thaler, S. L. (1998). Predicting ultra-hard binary compounds via cascaded auto- and hetero-associative neural newtorks, Journal of Alloys and Compounds, 279(1998), 47-59.

Thaler, S. L. (1999a). No mystery intended. Neural Networks, Volume 12, Issue 1, January 1999, Pages 193-194.

Thaler, S. L. (1999b), AFRL-ML-WP-TR-1999-4033, Integrated Substrate and Thin Film Design Methods, Materials and Manufacturing Directorate, Air Force Research Laboratory, Air Force Materiel Command, Wright-Patterson Air Force Base, OH 45433-7750

(1) US Congressional Briefing 2011, July 26, 2011 by Prof. Kaoru Yamaguchi: TRANSCRIPT (This is a transcript of my US congressional briefing on the workings of the public money system)
 * (1-Page Briefing Note for Media) (One page briefing note distributed to the Media)

(2) HR 2990 (NEED Act, National Emergency Employment Defense Act)
Congressman Dennis Kuchinich's Bill based on the American Monetary Act,
which is submitted to the US House Committee on Financial Services on Setp. 21, 2011.

(3) Workings of A Public Money System of Open Macroeconomies;
(Paper, Slides and YouTube) at the 7th Annual AMI Monetary Reform Conf.
University Center, Downtown Chicago, Sept. 30, 2011.

(4) A Program for Monetary Reform by Irving Fisher, etc., July 1939.
(Reformatted by the Kettle Pond Institute)
(This document is an extended version of the original "The Chicago Plan for Banking Reform" by Henry Simons, etc., March 16, 1933).

(5) On the Monetary and Financial Stability under A Public Money System;
( Paper, Slides and YouTube ) at the 8th Annual AMI Monetary Reform Conference, University Center, Downtown Chicago, Sept. 20 - 23, 2012.

(6) Public vs Debt Money Systems - the American Monetary Act in a Nutshell;
(Paper, Slides and YouTube) at the 9th Annual AMI Monetary Reform Conference,
University Center, Downtown Chicago, Sept. 19 - 22, 2013.

(7) From Debt Money to Public Money System - Modeling A Transition Process Simplified;
(Paper, Slides) at the 10th Annual AMI Monetary Reform Conference, University Center,
Downtown Chicago, Oct. 2 -5, 2014

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