For Troubleshooting Economies

The Demand Capital Trade Industry Tool Icon

June 26, 2021

According to Adam Smith, a crisis begins when a country’s industry does not match its capital, just as when an inexperienced entrepreneur launches a business out of speculation:

  • The 2008 Financial crisis was caused by securitization unnaturally increasing industry on paper
  • The Asian Financial Crisis was caused by hot money unnaturally increasing industry in Asia. This led to non-performing loans
  • Black Wednesday in 1992 was caused by John Major overvaluing the pound to promote a rosy British industry. This false picture was attacked by George Soros
  • The 1929 Crash was caused by stock traders who overvalued stocks
  • The Mississippi Scheme was caused by John Law overvaluing the industry potential of Louisiana

The general industry of society can never exceed what the capital of the society can employ.. the number that can be employed by a society must be proportional to the total capital of that society. It can never exceed that proportion. No commercial regulation can increase the amount of industry in any society beyond what its capital can maintain. It can only divert some of it into a direction which it might not otherwise have gone into. It is uncertain whether this artificial direction will be more advantageous to society than its natural direction.

The Simple Wealth of Nations, Book 4
Pantrynomics has three tools* to check the health of an economy: 1. [Purchasing Power or NDP](/articles/pantrynomics/the-alternative-to-gdp) - this checks the First and Second Laws of Value 2. [Economic Table](/articles/pantrynomics/the-modern-economic-table) - this checks the Third and Fourth Laws of Value 2. DCTI - checks the four laws through time > *The Economic Table and DCTI are too time-consuming to do manually, so we just visualize it through an app. NDP, on the other hand, can be done with pen and paper. Measure | General | Specific --- | --- | --- Quantity of Real Value | GDP + Industry + Trade | Purchasing Power Quality of Real Value< | GDP + Demand + Capital | Economic Table ### The DCTI Tool: A Heckofalot of Ratios The DCTI Tool can prevent crises by checking a society's Demand, Capital, Trade, and Industry metrics to see if they match [the Four Laws of Value](/pantrynomics/four-laws-of-value): ![DCTI Tool](/graphics/econ/dcti.jpg) It will go with Pool Clearing to filter out currency attacks. It can prevent capital flight by establishing a gold standard after the industries of all member countries are known. Unlike Basic Universal Revenue and the Economic Table which can only be used with Pantrynomics, the DCTI (as well as the Grain Index and Purchasing Power) can be used by Economics. It will go with Indicators to check whether the economy is going with [the Eagle](/articles/pantrynomics/the-eagle). Is a society growing sustainably as it moves forward, giving revenue to wage-earners, profit-earners, rent-tax-earners, and donation earners? Or is most of the revenue going to banks, government agencies, and tech companies while starving the rest?
Type Demand
The needs and wants of the people
Capital
Available potential effort
Industry
The actual kinetic effort or production
Trade
The exchange of productions or spreading of the effort
Quantitative
G Economic Growth
V Economic Value
P Population Size
Y Youth or Age
F Female-Male Ratio
J Employment
L Education
Ii Incoming Investments
Xi Outgoing investments
G Real GDP in Dollar or Grain Value
O Grain Value Initiated By Government
S Grain Value Initiated By Services
A Grain Value Initiated By Agriculture
M Grain Value Initiated By Manufacturing
G as Nominal GDP Growth
R Rate Of Interest
N Inflation
D Debt
It Imports
Xt Exports
Qualitative GP, VP, GF, VF, GY, VY GJ, VJ, GL, VL, VIi, VXi GO, VO, GS, VS, GA, VA, GM, VM GR, GN, GD, GIt, GXt, VIt, VXt
Pantrynomic Indicators G Change in Grain Value
P Number of Users
Y Average Age of Users
F Average Female-Male Ratio
G Change In Grain Value
J Users Without Job Contracts For X Months
L Users Without Learning or Training Contracts For Y Years
O grain value of govt contracts
S grain value of service contracts
A grain value of agri contracts
M grain value of product contracts
R Interest Rate of Clearing Funds or Resource banks
N Grain Index Inflation
D Debt via Resource banking
It value of imports via Pool
Xt value of exports via Pool*
Industry Strong Layer Real Price via the Economic Table Economic balance or stasis
that is lacking in Capitalism
> *The grain value of exports includes the GOSAM that was involved, with additional as the increased cost of transportation These give us ratios that describe the socio-economic nature of the society in question. This is different from Economics which favors equations: **Demand Ratios** - GP - population size per rise or fall in the economy. A slope that is too high indicates overpopulation - GF - the portion of the economy that goes to males or females - GY - the share of the economy per age (youth). A rising slope may indicate a rise or fall in education as the society gets wealthier. **Capital Ratios** - GJ - the rise or fall in unemployment as the society gets wealthier. A rising slope may indicate inequality or oligarchy - GL - the rise or fall in education as the society gets wealthier. A rising slope may indicate investments in higher education and austere morals as opposed to liberal morals - GIi - the rise or fall in inbound investments as the society gets wealthier. A rising slope may indicate a young country. - GXi - the rise or fall in outbound investments as the society gets wealthier. A rising slope may indicate an old country. **Industry Ratios** - GO - the rise or fall in government as the society gets wealthier. A rising slope may likewise indicate the spread of austere morals as state control, as opposed to liberalism - GS - the rise or fall in services as the society gets wealthier. A rising slope may indicate investments in services and a probable rise in liberal morals and the merchant class - GA - the rise or fall in agriculture as the society gets wealthier. A rising slope indicate increased investments in agriculture as opposed to services or manufacturing and could also be a sign of austere morals or of the rise of the laborer class - GM - the rise or fall in manufacturing as the society gets wealthier. A rising slope indicate investments in manufacturing and likewise a probable rise in austere morals or of the rise of the intellectual class **Trade Ratios** - GR- the rise or fall in interest rates as the society gets wealthier. A rising slope may indicate the dominance of the borrowers, as a sign of liberal morals - GN- the rise or fall in inflation as the society gets wealthier. A rising slope may indicate the dominance of speculation, as a sign of liberal morals - GD- the rise or fall in public debt as the society gets wealthier. A rising slope indicates debt-driven GDP Growth, as a sign of liberal morals - GIt- the rise or fall in imports as the society gets wealthier. A rising slope may indicate a service country - GXt- the rise or fall in exports as the society gets wealthier. A rising slope may indicate a manufacturing or agri country
In every civilized society which has the distinction of ranks, there were always two systems of morality: the strict or austere and the liberal or loose system. The austere is generally admired and revered by the common people. The loose is commonly more esteemed and adopted by people of fashion. The vices of levity is apt to arise from great prosperity. It leads to the excess of gaiety and good humour.
You can think of DCTI as a bunch of detectors that help give a complete picture of the soul of society:
Factor Physics equivalent Pantrynomic system Remarks
Demand Higgs Field First Law of Value: Basic Universal Revenue and the Grain Index as store of value Basis of economic justice
which is lacking in both Capitalism and Communism
Capital Gravitation Second Law of Value: Effort Theory of Value
ISAIAH Match Leads to economic democracy
and maximized non-commercial potential
We gravitate towards certain interests
based on our dharma
Trade Electroweak Third Law of Value: Exchange systems with maintenance cost Regulates merchants as
the opposite of Mercantilism
Industry Strong Layer Fourth Law of Value: Real Price via the Economic Table Economic balance or stasis
that is lacking in Capitalism

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