How to Score a Perfect 4x on the Keynes Multiplier.
by Nick Ray Ball on Sienna Skye's Birthdayπ
November 24 , 2022
UK Butterfly ππ¦ 2022 β How to Score a Perfect 4x on the Keynes Multiplier
This chapter begins with a question for Jack Meaning, Rupal Patel, Silvana Tenreyro and The Bank of England.
Question: If S-World AGI can achieve 3:1 investment so UK tax recipes were higher than the investment β before you even consider the Keynes Multiplier β Would the BOE advise the government to back this venture with great urgency and conviction?
If S-World AGI can achieve 3:1 investment, so for example, over 10 years, the government invested Β£10 billion a year which was matched by an investment of Β£30 billion a year, mostly spent on making things in the UK with a particular focus on energy and education. Then before you even start to calculate the Keynes Multiplier, the tax receipts alone will be more than the investment.
If all UK taxes accrue 32.5% of GDP: Β£10 billion in spending leads to Β£40 billion x 32.5% = Β£13 billion in taxes, plus the government owns a stake in whatever is created and receives Network Credit dividends which can be used to supplement social security or pay for a shiny new Aircraft carrier. But the government only pays Β£10 billion, so a Β£3 billion gain each year, before you apply the Keynes Multiplier, even if the Multiplier is 0.9, or even 0.8 thatβs still a profit as the government still has that Β£13 billion in taxes.
But donβt be concerned about a low Keynes Multiplier, t10t (The 10 Technologies) are as-if AGI, weβll come back to that in just a moment, but first, technology 7 of 10 (T7) S-RES is a panther of a growth accelerator. For a long time, I thought it increased the money supply, but in fact, it just uses money more creatively to increase the production supply. And donβt be concerned with inflation because in 2016 after 5 years of dedicated work, I threw away the then (PQS) design for t10t (because of the diminishing law of too much third-party software on APIs.) and started again, using just one common API factor β price, and so the 10 technologies, pivoted on price and this, fluke, or sub consensus design decision essentially β βmakes inflation our bitch.β.
Please excuse the language it's from an exuberant postscript I made to the introduction to The S-World Algorithms when I finally realised how to simply explain why t10t need not worry about inflation and so the system, developed for the US In 2012, then was forgotten due to government tax, then redesigned as a Mars Thought Experiment in 2017, then adapted to Malawi in 2018, because S-RES worked for a self-taxing Mars colony, and in terms of GDP per capita Malawi was at the bottom of the table, and so the economically closest to MARS who uniquely has a GDP of zero.
And so, the theory developed, and by 2019 S-RES had a mathematical theory that took Malawi from Zero to One percent of global GDP. Then came the underlying assumptions and then figuring out the politics and Tax Symmetry, where the government is paid 100% correctly, no accountants or humans adding bias or creativity, so the government gets more than the standard system, but does not get paid in cash, rather in output.
If the government wants to complete say: HS2 (A high-speed railway) without borrowing or spending its current revenues, the UK Butterfly network would work out a way to build it for them, in lew of taxes, that in most cases, they would not have had, if not for the network.
This idea developed in a book called Sixty-Four Reasons Why, which in turn developed into T8. Net-Zero DCA Soft. For my US republican friends, this is not only about Net-Zero projects, its 64 projects, which can be created for the government in lew of tax, paid in output, and so far, is currently mostly about education, but thatβs not as sexy a name as Net-Zero DCA Soft, and in any case, T9. Solves economic emigration so itβs a mixed bag that does not harm either side, just some projects will be more popular than others with some people.
What is important for the question of the Keynes multiplier is the DCA - Dynamic Comparative Advantage β the technology created to deal with all the excess productivity (and because thereβs so much it has to be Net-Zero) was software to optimise that spending according to Dynamic Comparative Advantage. This is from Joseph E. Stiglitz: Creating a Learning Society.
βIt has become conventional wisdom to emphasize what matters is not static comparative advantage but dynamic comparative advantage.
"Korea did not have a comparative advantage in producing semiconductors when it embarked on its transition. Its static comparative advantage was in the production of rice. Had it followed its static comparative advantage (as many neoclassical economists had recommended), then that might still be its comparative advantage, it might be the best rice grower in the world, but it would still be poor.β
Thank you, Joseph, for an 81-word explanation that would have taken another author an entire book to explain less well. And so, in answer to the query about what the Keynes Multiplier, T7 makes the network powerful and T8 makes it beautiful and devastatingly efficient, in ways that my 2018 to 2019 404-page book 64 Reasons Why only just glimpses upon. The Keynes multiplier is a fundamental design element within the system.
But let us for now get back to what I meant by βAs-Ifβ AGI.
As if (it were) AGI β Artificial General Intelligence
You may not be able to tell, or maybe you can, but whilst I have a head for figures, I am probably the worst speller of everyone you know. Am I dyslexic? Probably, Iβve never been tested, but take away Grammarly, Word Editor and Google and you would believe you were reading the work of a small child.
So, in terms of writing, it does not really matter if I am dyslexic or just the worst speller; itβs the same difference. I spell as if I were dyslexic.
Now, let's move on to what I think is adequate compensation for this imperfection in the computer age: my AGI design, The 10 Technologies.
Technically, right now, there are only nine technologies because:
T10. S-World AngelWing is the AI system tasked with creating the greatest combinatorial explosion from technologies one to nine.
But in researching AI, not only did I find I had been doing it for years when I read the first book recommended by Google, Max Tegmarkβs Life 3.0.
When you add up all the benefits, he and the people he speaks to, including Larry Page and many people in the field, his best story of what AGI can accomplish β Prometheus β is not the same as t10t, but it would be difficult to decide which was 1. Most financially rewarding and 2. what was most beneficial.
To any observer who knew AGI, like, for example, China, it would appear to them as if AGI had been created 40 years before anyone thought it possible, if they thought it possible at all.
With that, before delving into some detail and linking to the books written since 2011, let us return to the question.
Question: If S-World AGI can achieve a 3:1 investment, so UK tax receipts alone were far higher than the investmentβbefore you even consider the Keynes Multiplierβwould the BOE advise the government to back this venture with great urgency and conviction?
Before writing the summary above, I had written that the obvious answer to this question is to answer with another question: how will you get that level of investment? But in my summary so far, I believe I have responded to that question, at least to the first approximation, so please do answer. It is not hard, there can be only one answer. But you have to give it or run the very real risk of losing this opportunity to the US, as on January 1st, 2023, exactly 11 years after the original American Butterfly β Theory of Every Business, Spiritually Inspired Software (Quantum Economics) and The Network on a String β I start American Butterfly 2, and UK butterfly will be its lead out, like the Greek Model from S-World.biz in 2011.
And like before, the US makes a lot more sense in terms of convincing leading technology companies like Palantir, Microsoft, Google, Facebook, Intel, and others to collaborate on this venture if it was benefiting their own country economically.
End of the Summary, the dialogue continues below:
Further,
UK Butterfly is a proof of concept for the Southern African model on the one hand and the United States on the other. But given recent events in Florida, and the obscure but very real question about the popularity β or indeed unpopularity of T6 in UCS-Hawthorne for Richard Thaler (from 2017) rolled out as a working code for all workers, where if you are not a committed hard worker you would unlikely make the cut, make far less, would not last more than a few weeks.
American Butterfly 2012 β Part 3. The Network on a String β Florida Networks
I see this as a plus in Florida, and indeed Malawi, but maybe a negative in the UK, so maybe the UK is not the best starting place for S-World AGI (now Sienna AI) to spread its wings. And whereas the general idea was that politics would get in the way in the US, so a UK prototype would be necessary, given that T8. Net-Zero DCA soft. and 64 Reasons Why will get the Democrat votes, current thinking is that Florida will be a better prototype for the USA, especially if Ron DeSantis wishes to ride the butterfly into the Whitehouse.
But for now, letβs leave the Loss Aversion tactics aside, and look positively at UK Butterfly. It starts with a very simple presentation of the power of T7, the seventh of the 10 technologies that make up S-World AGI, before looking at some links to previous papers and books that began to consider a UK butterfly. Plus, a better description of the very important but so far not mentioned technologies 1 to 6. Most of these are seen below on the 2017 design for t10t, then simply called M-Systems:
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So, to begin a simple paper called $1039 Trillion BASIC which I have copied to my temporary (no login required) presentation website NickRayBall.com which explains T7. Ε -ΕΓΕ and The City, and its 2021 determined formulation: Ε -ΕΓΕβββ₯ΓL, as applied first to Malawi, and then because in this safe model the vast majority of GDP is created and consumed in the host country, itβs a non-zero-sum game, Malawi is not competing with South Africa, Tanzania, or anywhere else, and because of this, the model could be repeated over and over in different locations, which on the one hand means as poor nations grow their carbon footprint goes down, and on the other means an end to most economic emigration as the cities in Ε -ΕΓΕ and The City are idyllic.
Indeed, one can theorise that emigration problems will reverse.
Follow this link for that simple paper: https://siennaai.net/$1039_Trillion_BASIC.php
High-Octane Financial Engineering
The Ε -ΕΓΕ Equation
High-Octane Financial Engineering
Pecunia, si uti scis, ancilla est; si nescis, domina.
(If you know how to use money, money is your slave; if you do not, money is your master)
Ε is for Ε avings β written either: Ε avings or just Ε
Ε is for Εevenue (including investment) β written Εevenue or just Ε
Γ is for recycle-Γfficiency, which is the percentage of money, say 90%, that is spent by one company in a network with a single central bank to another company in the same network with the same central bank. β written recycle-Γfficiency or just Γ
(When Γ is 100% it is a perfect monopoly, but do not let that scare you, this is dealt with in the underlying assumptions, in particular POP β financial gravity, the original tenant of T8. Net-Zero DCA.)
Ε is for a Εpin, the number of times the money is recycled from one network company to another and another in the same year. β written Εpin or just Ε
Inspired by quantum mechanics and string theory, but we need not get into that here, see: The Graphical Journey to S-RES and t10t. (A complimentary book I planned but is not yet complete)
Note that the accents β the upside-down circumflex on the Ε and the acutes above the ΕΓΕ are there so as not to mix up Ε for Ε avings with Ε for Εpin. However originally when the equation was just ΕΓΕ, the accents (acutes) were there so the letters would stand out when written in a sentence.
An important, indeed a vital clarification is that Ε -ΕΓΕ does not increase the money supply like QE, it is not a pure money supply mechanism, rather it is a system for increasing the productive efficiency of the existing money supply, like, but far from the same as fractional reserve banking, it increases the efficiency (velocity) of the money (capital) and labour that is already in the system. However, whereas fractional reserve banking keeps 10% (or so) of deposits and lends out the rest, in Ε -ΕΓΕ, the money never leaves the central bank (or banks), thus making it impervious to bank runs.
Ε -ΕΓΕ is then a financial technology/system/set of algorithms to increase the productivity of labour and capital, a pure and unashamed growth mechanism. It needs advanced technology like the world has never seen, but it can all be created in a matter of years and partly created to an effective standard in just a few months. This is not a theory of future technology; it is a technology design that, when deployed as one system (S-World AGIβThe 10 Technologies), solves a great many problems 71 of which are presented in 64 Reasons Why (Complete book).
There is now a lot of information on the dedicated SπRES drop-down menu on https://SiennaAI.net
Of the many books in the 10 Technologies series, the following two are arguably the most enlightening. However, like all T10T books, they are incomplete, with their completion occurring in later books and associated web assets.
Ε -ΕΓΕ and The City.
The Secret of a Booming Economy
βLet us call it Supereconomicsβ
For Peter Thiel, Paul Romer & Barack Obama
Ε -ΕΓΕ and The City β Part 2.
Supereconomics Book II - THE HOW
The Magic Beans
