<?xml version='1.0' encoding='UTF-8'?><?xml-stylesheet href="http://www.blogger.com/styles/atom.css" type="text/css"?><feed xmlns='http://www.w3.org/2005/Atom' xmlns:openSearch='http://a9.com/-/spec/opensearchrss/1.0/' xmlns:georss='http://www.georss.org/georss' xmlns:gd='http://schemas.google.com/g/2005' xmlns:thr='http://purl.org/syndication/thread/1.0'><id>tag:blogger.com,1999:blog-3449323876485291163</id><updated>2011-08-16T20:11:32.006-07:00</updated><category term='ZS'/><title type='text'>The Sixth Estate</title><subtitle type='html'>The Sixth Estate is an observer, critic and counterweight to The Fourth Estate ("Mainstream" News Media) and The Fifth Estate ("Acceptable" Critics of The Fourth Estate). We try to bring solid stories, with solid evidence, contending and diverse perspectives, on the vital issues of our times anywhere on the planet.</subtitle><link rel='http://schemas.google.com/g/2005#feed' type='application/atom+xml' href='http://wwwthesixthestate.blogspot.com/feeds/posts/default'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default?max-results=100'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/'/><link rel='hub' href='http://pubsubhubbub.appspot.com/'/><link rel='next' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default?start-index=101&amp;max-results=100'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><generator version='7.00' uri='http://www.blogger.com'>Blogger</generator><openSearch:totalResults>198</openSearch:totalResults><openSearch:startIndex>1</openSearch:startIndex><openSearch:itemsPerPage>100</openSearch:itemsPerPage><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-6076052475203060105</id><published>2010-08-22T13:10:00.000-07:00</published><updated>2010-08-22T13:42:50.231-07:00</updated><title type='text'>A Note of Appreciation from the Rich</title><content type='html'>&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/THGJQPUydKI/AAAAAAAAA8Q/ZxzwOaadsyQ/s1600/capitalism.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 259px; DISPLAY: block; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5508334731335464098" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/THGJQPUydKI/AAAAAAAAA8Q/ZxzwOaadsyQ/s400/capitalism.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/THGJPqok1fI/AAAAAAAAA8I/OCHsljZ5yRQ/s1600/wage-slave-small.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 176px; DISPLAY: block; HEIGHT: 108px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5508334721486345714" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/THGJPqok1fI/AAAAAAAAA8I/OCHsljZ5yRQ/s400/wage-slave-small.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div align="center"&gt;&lt;em&gt;&lt;strong&gt;A Note of Appreciation from the Rich&lt;/strong&gt;&lt;/em&gt; &lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;Let’s be honest: you’ll never win the lottery. On the other hand, the chances are pretty good that you’ll slave away at some miserable job the rest of your life. That’s because you were in all likelihood born into the wrong social class. Let’s face it—you’re a member of the working caste. Sorry!&lt;br /&gt;&lt;br /&gt;As a result, you don’t have the education, upbringing, connections, manners, appearance, and good taste to ever become one of us. In fact, you’d probably need a book the size of the yellow pages of New York City to list all the unfair advantages we have over you. That’s why we’re so relieved to know that you still continue to believe all those silly fairy tales about “justice” and “equal opportunity” in America.&lt;br /&gt;&lt;br /&gt;Of course, in a hierarchical social system like ours, there’s never been much room at the top to begin with. Besides, it is already occupied by us—and we like it up here too much that we intend to keep it that way. But at least there’s usually someone lower in the social hierarchy that you can feel superior to and kick in the teeth once in a while. Even a lowly dishwasher can easily find some poor slob further down in the pecking order to sneer and spit at. So be thankful for migrant workers, prostitutes, and homeless street people.&lt;br /&gt;&lt;br /&gt;Always remember that if everyone like you were economically secure and socially privileged like us, there would be no one left to fill all those boring, dangerous, low-paid jobs in our economy. And no one to fight our wars for us, or blindly follow orders in our “authoritarian” corporate institutions. And certainly no one to meekly go to their grave without having lived a full and creative life. So please, keep up the good work!&lt;br /&gt;&lt;br /&gt;You also probably don’t have the same greedy, compulsive drive to possess wealth, power, and prestige that we have. And even though you may sincerely want to change the way you live, you’re also afraid of the very change you desire, thus keeping you and others like you in a nervous state of limbo. So you go through life mechanically playing your assigned social role, terrified what others would think should you ever dare to “break out of the mold.”&lt;br /&gt;&lt;br /&gt;Naturally we try to play you off against each other whenever it suits our purposes: high-waged workers against low-waged; unionized against non-unionized; Black against White; male against female; American workers against Japanese against Mexican against…; We continually push your wages down by invoking “foreign competition”, “the laws of supply and demand”, “national security”, or “the bloated federal deficit”. We throw you on the unemployed scrap heap if you step out of line or jeopardize our profits. And to give you an occasional break from the monotony of our daily economic blackmail, we allow you to participate in our stage-managed electoral shell games, better known to you ordinary folks as “elections”. And we note that happily for us, you haven’t a clue as to what’s really happening—instead, we get you to blame “Aliens”,“Tree-hugging Environmentalists”, “N*ggers”, “Jews”, “Welfare Queens” and countless others for your troubled situation. &lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;We’re also very pleased that many of you still embrace the “work ethic”, even though most jobs in our economy degrade the environment, undermine your physical and emotional health, and basically suck your one and only life right out of you. We obviously don’t know much about work; but of course we’re sure glad you do.&lt;br /&gt;&lt;br /&gt;Of course, life could be different. Society could be intelligently organized to meet the real needs of the general population. You and others like you could collectively fight to free yourselves from our domination. But you don’t know that. In fact, you can’t even imagine that another way of life is possible. And that’s probably the greatest, most significant achievement of our system—robbing you of your imagination, your creativity, your ability to think and act for yourself.&lt;br /&gt;&lt;br /&gt;So we’d truly like to thank you from the bottom of our heartless hearts. Your loyal sacrifice makes possible our corrupt luxury; your work makes our system work. Thanks so much for “knowing your place”—even without knowing it.&lt;br /&gt;&lt;/div&gt;&lt;div align="center"&gt;&lt;br /&gt;&lt;em&gt;&lt;strong&gt;Rich $cum of America&lt;br /&gt;&lt;br /&gt;He who hath the gold makes the rules.&lt;br /&gt;&lt;/div&gt;&lt;/strong&gt;&lt;/em&gt;&lt;/div&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-6076052475203060105?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/6076052475203060105'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/6076052475203060105'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/08/note-of-appreciation-from-rich.html' title='A Note of Appreciation from the Rich'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://2.bp.blogspot.com/_LbIlP2wfBuY/THGJQPUydKI/AAAAAAAAA8Q/ZxzwOaadsyQ/s72-c/capitalism.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-3935639098736465756</id><published>2010-07-04T12:41:00.001-07:00</published><updated>2010-07-04T12:46:27.516-07:00</updated><title type='text'>Some Older Papers: Open Letter to the Government of China and Genocide and U.S. Indigenous Peoples</title><content type='html'>&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TDDk9gC_9rI/AAAAAAAAA74/Nzj2lEGOze0/s1600/scan0218.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TDDk9gC_9rI/AAAAAAAAA74/Nzj2lEGOze0/s400/scan0218.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5490139690990302898" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TDDk8_88SjI/AAAAAAAAA7w/uP7SGFO9Wmk/s1600/scan0219.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TDDk8_88SjI/AAAAAAAAA7w/uP7SGFO9Wmk/s400/scan0219.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5490139682374961714" /&gt;&lt;/a&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-3935639098736465756?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/3935639098736465756'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/3935639098736465756'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/07/some-older-papers-open-letter-to.html' title='Some Older Papers: Open Letter to the Government of China and Genocide and U.S. Indigenous Peoples'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://4.bp.blogspot.com/_LbIlP2wfBuY/TDDk9gC_9rI/AAAAAAAAA74/Nzj2lEGOze0/s72-c/scan0218.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-1793375960259843987</id><published>2010-06-23T08:31:00.000-07:00</published><updated>2010-06-23T08:36:31.170-07:00</updated><title type='text'>"You've Come a Long Way Baby": But From What to What?</title><content type='html'>&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TCIp5pWhNjI/AAAAAAAAA7Y/JeQ1sfEakLE/s1600/scan0212.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TCIp5pWhNjI/AAAAAAAAA7Y/JeQ1sfEakLE/s400/scan0212.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5485993366420272690" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp5F5xOOI/AAAAAAAAA7Q/S-1NR5y7lnM/s1600/scan0213.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp5F5xOOI/AAAAAAAAA7Q/S-1NR5y7lnM/s400/scan0213.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5485993356904446178" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TCIp4lsaIrI/AAAAAAAAA7I/XBw-ioWhEaY/s1600/scan0214.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TCIp4lsaIrI/AAAAAAAAA7I/XBw-ioWhEaY/s400/scan0214.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5485993348258472626" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp3_76pFI/AAAAAAAAA7A/40wQplQT468/s1600/scan0215.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp3_76pFI/AAAAAAAAA7A/40wQplQT468/s400/scan0215.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5485993338122970194" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp3b9s42I/AAAAAAAAA64/ojbinnREYao/s1600/scan0216.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TCIp3b9s42I/AAAAAAAAA64/ojbinnREYao/s400/scan0216.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5485993328466781026" /&gt;&lt;/a&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-1793375960259843987?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/1793375960259843987'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/1793375960259843987'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/youve-come-long-way-baby-but-from-what.html' title='&quot;You&apos;ve Come a Long Way Baby&quot;: But From What to What?'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://4.bp.blogspot.com/_LbIlP2wfBuY/TCIp5pWhNjI/AAAAAAAAA7Y/JeQ1sfEakLE/s72-c/scan0212.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-7428667856646311084</id><published>2010-06-16T17:12:00.000-07:00</published><updated>2010-06-16T17:14:07.634-07:00</updated><title type='text'>Marxism and Indigenous Struggles: Speech To Sacramento Marxist School, November 21, 2002</title><content type='html'>&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-7428667856646311084?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='related' href='http://jimcraven10.wordpress.com/?p=4&amp;preview=true' title='Marxism and Indigenous Struggles: Speech To Sacramento Marxist School, November 21, 2002'/><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/7428667856646311084'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/7428667856646311084'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/marxism-and-indigenous-struggles-speech.html' title='Marxism and Indigenous Struggles: Speech To Sacramento Marxist School, November 21, 2002'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-4695823730981673462</id><published>2010-06-16T16:55:00.001-07:00</published><updated>2010-06-16T16:58:27.437-07:00</updated><title type='text'>Residential Schools and Aboriginal Law (1)</title><content type='html'>&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBllDP_DbHI/AAAAAAAAA6I/TOLsQ3-MO4g/s1600/scan0210.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBllDP_DbHI/AAAAAAAAA6I/TOLsQ3-MO4g/s400/scan0210.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483525127805299826" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBllCppdAOI/AAAAAAAAA6A/BI-v3dsAEr0/s1600/scan0211.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBllCppdAOI/AAAAAAAAA6A/BI-v3dsAEr0/s400/scan0211.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483525117514154210" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBllCOmJcII/AAAAAAAAA54/lTSlAcK7AYs/s1600/scan0199.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBllCOmJcII/AAAAAAAAA54/lTSlAcK7AYs/s400/scan0199.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483525110252531842" /&gt;&lt;/a&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-4695823730981673462?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/4695823730981673462'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/4695823730981673462'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/residential-schools-and-aboriginal-law_16.html' title='Residential Schools and Aboriginal Law (1)'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://3.bp.blogspot.com/_LbIlP2wfBuY/TBllDP_DbHI/AAAAAAAAA6I/TOLsQ3-MO4g/s72-c/scan0210.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-6205395148794719912</id><published>2010-06-16T16:49:00.000-07:00</published><updated>2010-06-16T16:55:13.082-07:00</updated><title type='text'>Residential Schools and Aboriginal Law (2)</title><content type='html'>&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkCrpTtSI/AAAAAAAAA5w/eJSnua8GOwI/s1600/scan0200.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkCrpTtSI/AAAAAAAAA5w/eJSnua8GOwI/s400/scan0200.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483524018538788130" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkB_tmmeI/AAAAAAAAA5o/T8ZawGLCrLs/s1600/scan0201.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkB_tmmeI/AAAAAAAAA5o/T8ZawGLCrLs/s400/scan0201.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483524006745643490" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkBYjIaHI/AAAAAAAAA5g/rath6pTgC6k/s1600/scan0202.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkBYjIaHI/AAAAAAAAA5g/rath6pTgC6k/s400/scan0202.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483523996232738930" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlkA4oNFLI/AAAAAAAAA5Y/0yBrNHpHfTA/s1600/scan0203.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlkA4oNFLI/AAAAAAAAA5Y/0yBrNHpHfTA/s400/scan0203.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483523987664082098" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBlkAJo_KCI/AAAAAAAAA5Q/eIgelAcHL9s/s1600/scan0204.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/TBlkAJo_KCI/AAAAAAAAA5Q/eIgelAcHL9s/s400/scan0204.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483523975050897442" /&gt;&lt;/a&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-6205395148794719912?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/6205395148794719912'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/6205395148794719912'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/residential-schools-and-aboriginal-law.html' title='Residential Schools and Aboriginal Law (2)'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlkCrpTtSI/AAAAAAAAA5w/eJSnua8GOwI/s72-c/scan0200.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-3174680115722403606</id><published>2010-06-16T16:36:00.001-07:00</published><updated>2010-06-16T16:59:28.313-07:00</updated><title type='text'>Residential Schools and Aboriginal Justice (3)</title><content type='html'>&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlipwh5TII/AAAAAAAAA5I/oxe0o4UDlM0/s1600/scan0205.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlipwh5TII/AAAAAAAAA5I/oxe0o4UDlM0/s400/scan0205.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483522490841517186" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlipQIw20I/AAAAAAAAA5A/5HElrHSPE4Q/s1600/scan0206.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlipQIw20I/AAAAAAAAA5A/5HElrHSPE4Q/s400/scan0206.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483522482146171714" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlio8nh0-I/AAAAAAAAA44/puOwwnb1p4Y/s1600/scan0207.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlio8nh0-I/AAAAAAAAA44/puOwwnb1p4Y/s400/scan0207.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483522476906501090" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlioSS8Y6I/AAAAAAAAA4w/vRxK02hpBHA/s1600/scan0208.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBlioSS8Y6I/AAAAAAAAA4w/vRxK02hpBHA/s400/scan0208.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483522465545872290" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TBlintsgL1I/AAAAAAAAA4o/Y3nLLBbRBik/s1600/scan0209.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 291px; height: 400px;" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TBlintsgL1I/AAAAAAAAA4o/Y3nLLBbRBik/s400/scan0209.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5483522455720963922" /&gt;&lt;/a&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-3174680115722403606?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/3174680115722403606'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/3174680115722403606'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/residential-schools-and-aboriginal.html' title='Residential Schools and Aboriginal Justice (3)'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://4.bp.blogspot.com/_LbIlP2wfBuY/TBlipwh5TII/AAAAAAAAA5I/oxe0o4UDlM0/s72-c/scan0205.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-5744609586675237505</id><published>2010-06-11T16:36:00.000-07:00</published><updated>2010-06-11T18:51:09.204-07:00</updated><title type='text'>The Theoretical System and Predictions of Karl Marx: Compendium of Assumptions and Predictions</title><content type='html'>&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TBLd2CXVI2I/AAAAAAAAA34/X_5keaZ9kIE/s1600/200px-Karl_Marx_001.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 200px; DISPLAY: block; HEIGHT: 282px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5481687616880714594" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TBLd2CXVI2I/AAAAAAAAA34/X_5keaZ9kIE/s400/200px-Karl_Marx_001.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBLd1gDWztI/AAAAAAAAA3w/35W0mcMgApw/s1600/capital-290.gif"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 290px; DISPLAY: block; HEIGHT: 350px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5481687607670132434" border="0" alt="" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBLd1gDWztI/AAAAAAAAA3w/35W0mcMgApw/s400/capital-290.gif" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBLd1Yg_BzI/AAAAAAAAA3o/wO6_7L03kBQ/s1600/capitalism.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 259px; DISPLAY: block; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5481687605646919474" border="0" alt="" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/TBLd1Yg_BzI/AAAAAAAAA3o/wO6_7L03kBQ/s400/capitalism.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div align="justify"&gt;The Theoretical System and Predictions of Karl Marx and Friedrich Engels:&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;A Compendium of Assumptions, Postulates and Predictions&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;By James M. Craven/Omahkohkiaaiipooyii&lt;br /&gt;-&lt;br /&gt;&lt;/div&gt;&lt;div align="justify"&gt;The theories and predictions of Karl Marx, constitute, although unfinished due to his death, a whole theoretical system. They form a system in the sense that: a) the core general postulates, from which specific conclusions and hypotheses are deductively and derived (both Episteme and Techne bases and levels of knowledge involved&lt;a style="mso-footnote-id: ftn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn1" name="_ftnref1"&gt;[1]&lt;/a&gt;), that are asserted to be self-evident truths or “axiomatic”, are all mutually supporting and generally not contradictory; b) The first-order or primary, second-order or secondary, and specific, predictions and conclusions of Marx, follow deductively and specifically (as tight logical derivatives&lt;a style="mso-footnote-id: ftn2" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn2" name="_ftnref2"&gt;[2]&lt;/a&gt;) from the core (or “primary”) and second-order (or “secondary”) and specific postulates of the theoretical system&lt;a style="mso-footnote-id: ftn3" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn3" name="_ftnref3"&gt;[3]&lt;/a&gt;; c) The primary and secondary predictions and conclusions are all interdependent, mutually supporting and not contradictory (with proper caveats about tendencies under assumed conditions rather than asserted iron laws and inexorable outcomes); d) The arrangements and publications of Volumes II, III and IV of Das Capital were made after Marx’s death and without his guidance and input except in the notes he left; these considerations must be noted as one of the limiting caveats in points a to c above.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Marx and Engels’ Assumptions and Postulates (Value and Price&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;1. The world of commodities is a world of exchange, and exchanges of commodities involve social relations between humans and only superficially (fetishized) relations between the commodities produced by those humans. (Capital, I. p. 83&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. All commodities have two aspects or dimensions: use-value and exchange-value; use- values have no independent existence and serve only as ‘material depositories of exchange-value’ (Capital, I, p. 43) which, appears as a quantitative relationship between use-values of one sort exchanged for others of another sort (Capital, I p. 43) and is the essence of the commodity or the “fundamental law” of modern political economy (Contribution to Critique of Political Economy, CPE, p 62); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. If a given commodity, say one-quarter of wheat can be exchanged for x blacking, y silk or z gold, etc, then wheat has not one but many exchange values and since x blacking, y silk and z gold are all exchangeable with one quarter of wheat, they must therefore logically, arithmetically and by definition be replaceable with each other or equal to each other (Capital, I. p. 43);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. If one quarter of corn = x cwt of iron, then their equivalence means there must be something common to both of them such that they can be equated in some way. That “common substance” or “denominator” is that they are both products of labor. (Capital, I. p. 44);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. All labor, no matter its nature, form or level—unskilled, semi-skilled or skilled—Involves, to varying degrees, the expenditure of human capabilities and energy—brain, nerves, muscles—(Capital, I. p. 82)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;6. The exchange value of any commodity is but a material expression or manifestation of a specific form of social labor that produced it; and thus, by definition, and tautologically (Marx’s term), matter in a natural state has no exchange value since, or as, it has not been touched or altered by human labor (CPE, pp. 31-32)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. Labor, embodied in all commodities, can be reduced to a common denominator of human labor in the abstract which can be measured in units of time, with value created only by socially necessary labor time (otherwise the more unproductive the labor the more value created) with varieties of labor (skilled, semi-skilled and unskilled) cardinally measurable in units of unskilled labor(skilled labor counts as compound unskilled labor) and which labor must satisfy some definite social want (Capital, I pp 45, 51-52, 54; CPE, p 25) The scales for conversion of various forms of skilled labor into compound unskilled labor are set by competition (Poverty of Philosophy, PP, p. 58);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. When the amount of socially necessary abstract labor expended on a commodity changes, then also so does its absolute and relative exchange values (in relation to other commodities and in their exchange relations to it)change; thus exchange-value varies directly with the quantity, and inversely with the productiveness, of labor; and thus also, those factors affecting the productiveness of labor (efficiency of labor, state and effectiveness of use of technology, social organization of production) also affect value relations. (Capital, I, pp 46-47) These postulates, according to Marx, resolve Adam Smith’s water-diamond paradox if perceived utility is asserted as basis of value: water and air have high use value but low exchange value because of wide availability and thus no socially necessary labor time needed to extract and use them whereas the reverse is true for diamonds (low use value but high exchange value); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. Purpose of all exchange is the realization of use-values (Capital, I, p. 117) The metamorphosis of the commodity is expressed in C—M—C1 where C and C1 represent different commodities with equal amounts of labor content. (Capital, I, p. 97) Producers produce use-values for others (nonuse-values for themselves) in order to accumulate the means (Money) to acquire via exchange, use-values for themselves. Production for exchange instead of for immediate consumption creates only potential use-values which may or may not be realized, but can only be realized, with the complete metamorphosis of the commodities (C—M or sale of one commodity by its producer; Capital, I, p. 119; and M—C1 purchase of another commodity that has use value for the producer of C; Capital, I. p. 123) Only transfer of commodity ownership is involved and no effect on exchange-value—all exchanges are of equivalents in labor content (Capital, I, p. 175); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. The purpose of all sales is simply the monetization of exchange-value. The purpose of all purchases is the realization of use-value. In the process of circulation, each commodity maintains its exchange value while becoming a use-value;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. Labor-power (capacity to work), not labor (the use of the capacity to work in production and distribution) is sold as a commodity. The “value” of labor-power, represented in the wage rate, is the amount of socially necessary labor it takes to produce the means of subsistence and for expanded reproduction of that labor-power on a consistent basis under given historically determined and varying (indifferent systems) conditions and levels of “civilization”. (Capital, I, pp. 174, 186, 189, 190);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. Labor-power is unique as a commodity in that its use-value possesses the unique property of being a source of value and whose consumption (the consumption—use—of labor-power is the embodiment and definition of “labor”) is the creator of value (Capital, I, p. 186); this uniqueness is understood only by the purchaser of labor-power the capitalist;&lt;br /&gt;-&lt;br /&gt;13. So far as the advance of capital (payment of wages) is concerned, labor-power counts as a value; in the processes of production, labor-power is turned into labor creating value beyond what was paid for the labor-power utilized to create it. (Capital, III, p. 41);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;14. The purchase of labor-power is only for the purpose of utilizing the labor-power in production to control the laborers, their labor, and the products and value created by their labor (Capital, I, p. 206);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. When the product of the labor-power re-enters the process of circulation, which it must for the whole purpose of paying for labor-power to create value in excess of it to be realized, the total metamorphosis of the commodity produced by labor can be symbolized in the ‘inverted form of exchange’: M—C—M’ where M = wages paid for labor-power, C = commodity created by labor-power (as inventory a form of capital or commodity capital) and M’ = the money equivalent of the exchange value of the product of labor power. (Capital, I, p. 186; Capital III, p. 402);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;16. The extended process can be written combining the metamorphosis of the commodity that is the product of labor-power with the metamorphosis of the commodity labor- power: C—M—C’ + M—C—M’ = M—C…C’—M’ Where M = money advanced for labor-power, C = commodity labor-power, C’ = commodity produced by labor (utilized labor-power) and C…C’ = the process of production and C in the production process Marx calls “commodity capital” and M’ = money equivalent of the exchange value of the product of labor and finally M’ – M or delta M = Surplus value. (Gottheil p. 14);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;17. “It is a commodity—capital, as distinguished from a simpler commodity, 1) because it is pregnant with surplus value, so that the realization of its value is simultaneously a realization of surplus value…2) It is a commodity-capital, because its function as a commodity is a process in its process of reproduction as capital (Capital, III, p. 402 cited in Gottheil p. 14);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;18. Surplus-value is a product only of the process of production and not circulation. Surplus- value does not violate the so-called “Laws of Exchange” (of equivalents) and laborer not defrauded in sale of labor-power; Marx further postulates that: a) no relationship between sellers and buyers; b) seller is sole owner of capacity to labor (labor-power); c) the sale of labor-power is for a definite period of time; d) labor-power is considered by both parties as a commodity (Capital, I. p. 186);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. The seller of labor-power, like the seller of any commodity, parts with its use-value in order to realize its exchange-value. One cannot be taken without the other. The use-value of labor-power, labor, belongs just as little to the seller as the use-vale of oil;&lt;br /&gt;-&lt;br /&gt;20. belongs to the dealer who has sold it. The laborer receives the exchange-value equivalent of his or her means of subsistence, and the capitalist, after selling the product of labor C’—M’, realizes the exchange-value of a use-value that included both paid and unpaid labor time. (Capital, I, p. 216);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. Commodity exchange-value, as a first or primary approximation and division of exchange-value, may be divided into paid and unpaid labor, labor and surplus labor, value and surplus-value. But, this is only a first approximation, Since a commodity is created via the application and utilization of labor-power (labor) being coupled with productive contexts and “means of production” (Capital, I p. 201), thus exchange-value involves living labor-power or variable capital (v) as well as past or dead labor embodied in the means of production or constant capital (c) (Capital, I, p. 232);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. The only form of labor capable of creating value is from living labor power (v) being utilized (labor). The conversion of the means of production into the commodity transfers its own exchange value and no more and thus is called constant capital; the exchange value of the means of production is not determined by the process into which it enters but rather by the process out of which it came as a commodity itself and its exchange-value is only realized, like all commodities, and a means of production has use only, when it is employed in the production process as a use-value in conjunction with living labor (Capital, I, pp. 203-4, 229);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;23. C = c + v + s where: C = composition of value; c = constant capital used up; v = labor-power costs; s = absolute quantity of surplus-value or value created by utilized labor-power or labor; this represents not only the value structure of a commodity, but also structures of processes of production on macro and micro scales; while the value of a commodity may remain constant, the ratios of c : v : s may well change. These changing ratios may be very revealing about the nature and dynamics of the economy but are hidden in the general value C or exchange value of the commodity or when labor is generally measured without regard to form (living v non-living, paid and unpaid, etc)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. s= f (v); value produced = v + s; s/v = rate of surplus-value (Capital, I, p 239);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. Necessary labor or necessary labor time = portion of a whole working day spent producing value to cover wages or costs of labor-power or costs of subsistence of the laborer; surplus labor or surplus labor time = rest of the working day spent producing value above wages or producing surplus-value. (Capital, I, p. 256);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. s/v = surplus labor/necessary labor = rate (degree) of exploitation of labor (Capital, I, p. 241)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;27. The division of the working day between necessary or paid and surplus or unpaid labor is depends significantly upon labor productivity, and is manifested in the organic composition of capital ( c /c + v ) measuring the relationship between value of capital and that of total capital outlay. The productiveness of labor varies directly with the organic composition of capital and inversely to the value of the commodity. (Capital, III, p. 248.) “The degree of the productivity of labor, in a given society, is expressed in the relative extent of the means of production that one laborer, during a given time, with the same tension of labor-power, turns into products.” (Capital, I, pp 681-82; quoted in Gottheil p 17); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;28. Comparing prices of labor-intensive (handicrafts) versus capital-intensive products, Marx found empirically that the more the capital-intensive the production, the share represented by c or instruments of production, increases relatively but declines absolutely (Capital, I, p. 426);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;29. Relation between surplus and total capital outlay is the rate of profit ( s/c + v ) (Capital, III, p. 55) note rate of profit is calculated on advance of capital not expenditure in production only when turnover rate is unitary do expenditures = advances;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;30. In producing commodity C1 with a capital structure of 80c + 20v and a rate of surplus- value of 100%, then the exchange-value (if price = value) would be: 80c + 20v + 20s = 120. And the organic composition of capital would be c/ c + v or 80/80 + 20 = 80% and the rate of profit would be s/c + v or 20/80 + 20 = 20%;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;31. Marx’s Simple Commodity Exchange Model: (C—M—C1 ) a) exchange of commodities with equal amounts of labor; b) commodity prices = exchange-values therefore relative prices = relative exchange-values = relative amounts of labor time in commodities; c) equal rates of surplus-value in all industries—s1/v1 = s2/v2 = s3/v3…sn/vn; ; d) and equal rates of profit due to competition: s1/c1 + v1 = s2/c2 + v2 +… sn/cn + vn; d) These assumptions of equal s/v and s/c + v in all industries also imply equal organic compositions of capital or equal c/ c + v. This is as a matter of internal consistency of the Marxist theory of price (that purports to relate commodity prices to their labor contents and if equal rates of surplus value and profit are assumed) and not empirical fact as Marx concedes different organic compositions of capital in different industries;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;32. The identity between price and value in Marx’s simple commodity exchange model (via supposed or assumed competition-driven equalizations of rates of surplus-value (he was fully aware of different rates of surplus-value and the reasons for them in the real world), rates of profit, coupled with assumed equalizations of organic compositions of capital for internal consistency of the theory, is suspended as only an “approximation” in Marx’s more developed theory of price determination (Gottheil, p. 18);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;33. Marx’s theory of price, as with his other theories, was presented in Capital via a series of “successive approximations”. Starting at the most abstract, first approximation level, under conditions of simplifying assumptions, and then, by progressively removing simplifying assumptions, getting closer to the reality being modeled; examining if this model had to be modified with the “noise” and “friction” of the real world. This classical method of successive approximations in his presentation, and that of Engels who edited the second and third volumes, was exactly the opposite of how he actually developed his theories via very serious research on totalities, not simply a-priori speculation, and then, via progressive adduction or induction, he was lead to and developed the abstractions, generalizations, principles, assumptions and postulates employed in his models and deductive reasoning;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;34. Marx’s more developed theory of price determination is based upon: 1) his notions of ‘the scientific laws of value creation’; 2) how value and surplus-value creation appears to the typical capitalist. Where Marx saw commodity value as C = c + (v + s) with only v creating s, the capitalist sees C = (c + v) + s with surplus value a function of both c and s; (c + v) represents “total capital outlay” necessary to realize surplus-value to the capitalist and Marx calls profit that surplus-value resulting from total capital outlay (Capital, III, p. 49) which he does not distinguish between v and c (Capital, III, p. 47-48) and the capital advanced to produce that profit cost-price (k) (Capital, III, p. 39);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;35. Thus for the capitalist, the value of the commodity is made up of the sum of cost-price (k) plus profit (p) and the relation between cost-price and profit (p/k) Marx calls the rate of profit (s/c + v) and thus s/ c + v = p/k;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;36. Marx is fully aware of differing organic compositions of capital in different industries (what Marx calls “spheres of production”) and not only concedes them in reality, but differing organic compositions of capital are said to be the primary basis for deviations of prices from values (labor contents) or fundamental exchange values which act as centers of gravity around which deviations occur;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;37. Marx assumes that under given conditions, the compositions of v and c in total capital are functions of technical and value considerations. Technical refers to a supposed requirement that: “a given quantity of labor-power, represented by a definite number of laborers, is required for the purpose of producing a definite quantity of products, for instance in one day, and thereby to consume productively, by setting in motion, a definite quantity of the means of production, machinery, raw materials, etc. A definite number of laborers corresponds to a definite quantity of means of production, so that a definite quantity of living labor corresponds to a definite quantity of materialized labor in means of production.” (Capital, III, p 181);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;38. In development of price theory from first to second approximations, Marx assumed that in all spheres of production: equal rates of surplus-value; constant and equal working days; equality of wages; perfect mobility in all product and factor markets; competitive markets; unitary rates of capital turnover (Capital III, p. 181);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;39. On the basis of the assumptions of point 37, rates of profit resulting from equal investments of capital in spheres of production A and B depend upon their respective organic compositions. If say in sphere A the rate of surplus value is 100%, C = 90c + 10v + 10s = 110; but if in sphere B the organic composition is C = 10c + 90v + 90s = 190, then the rate of profit in one case would be 10% and in another case 90%. Marx rejects that such sustained deviations from an average rate of profit could be sustained under capitalism as capitalists are only concerned with ROIs and not organic compositions as the cost-price makes no distinctions between c and v and thus competition will drive any deviations around and towards equalization and/or a long-run average rate of profit (Capital, III, p. 182-86);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;40. The contradiction between equalization of rates of profit on the one hand, and differing organic compositions of capital on the other hand, is resolved via transforming actual rate of profit to average (or general) rate of profit (Capital, I. p. 671 and III, p. 185) and value to price of production and assumption of an average of varying organic compositions of capital. Total capital outlay only equals cost-price if total constant capital were completely used up in production and, if not, then the resulting cost-price (k) would be less than the capital advanced (this has no bearing according to Marx on determination of the general rate of profit); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;41. Prices or (P) “arise by drawing the average of the various rates of profit in the various spheres of production and adding this average to the cost-prices of the different spheres of production.” (Capital III, p. 185);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;42. Now Marx distinguishes between s/c + v or a special rate of profit in a given sphere versus a general or average rate of profit that is a sort of center of gravity for equalization of various specific rates of profit;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;43. While capitalists recover their total capital outlays in sales of their commodities: “they do not secure the surplus-value and consequently the profit created in their own sphere by the production of these commodities, but only as much surplus-value and profit as falls to the share of every aliquot part of the total social capital out of the total surplus value, or social profit produced by the total capital of society in all the spheres of production.” (Capital, III, p. 186-87);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;44. The value-price transformation at second approximation:&lt;br /&gt;Commodity Value C = c+ v + s = (c + v) + s and: Prices of production = k + p = k + p’k&lt;br /&gt;When the specific organic composition of capital = the social composition of capital then:&lt;br /&gt;s= p; p’ = s/ c + v; C = P&lt;br /&gt;-&lt;br /&gt;45. Note on transformation problem. Marx’s value to price conversions affects later development of capital reproduction. The simple reproduction equilibrium scheme in Volume II of Capital, deals with intra-class exchanges on the basis of values and not prices. In this context, had values been converted to prices, then the simple reproduction equilibrium solutions could not have been achieved. Attempts to reconcile the value-price transformation within the simple-reproduction model are referred to as the “Transformation Problem”;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;46. When the specific &gt; social composition of capital then: s &lt;&gt; s/ c + v; C &lt;&gt; p; p’ &lt;&gt; P;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;47. Marx’s theory of value is not a theory of price. Only in the impossible case of only one organic composition of capital in the whole economy would C = P Marx explicitly mentions that there are other factors that cause prices to deviate and oscillate around values which are seen as centers of gravity around and to which prices are pushed and pulled via forces of competition ( Capital, III, pp 206-210);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;48. Prices of production is called “market-values” that hold only where no shortages or surpluses (equilibrium) are present; otherwise, actual or “market prices” may be greater or less than market-values (Capital, III, p. 210);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;49. Marx’s concept of ordinary, weak and strong demand refer to social or market not individual demand compared with market supply of a commodity that satisfies individual use-value. (Capital, III, p. 218); connection or equation of social demand with supply said by Marx to only be accidental so ordinary demand is where Qd = Qs or equilibrium price or where market value = market price; with strong demand, market price &gt; market value and when weak demand, market price &lt; price =" market"&gt; market value à &gt; average s = surplus profits à new entries; when market price &lt; s =" &lt;"&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;50. Deviations of market prices from market values take place not only as a result of supply and demand conditions and shifts, but also due to changes in market-values themselves as market-values falling trigger more social demand, and, when rising, trigger falling social demand (Capital, III, p. 213);&lt;br /&gt;-&lt;br /&gt;51. Where supply and demand oscillations regulate deviations of market price from the centers of gravity of market-values, then market-values constitute the centers of gravity for the supply and demand oscillations (Capital, III, p26);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;53. The social demand to which Marx refers which regulates the principle of demand, is conditioned on the mutual relations of the different economic classes and their relative economic positions. (Capital III, p. 214); Effective demand contrasted with social need by Marx. (Capital, III, pp. 222-23);&lt;br /&gt;-&lt;br /&gt;Marx and Engels’ Assumptions and Postulates (Profit, Surplus Value and Innovation)&lt;br /&gt;-&lt;br /&gt;1. Two forms, as a result of two sources, of surplus-vale: Relative and Absolute;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. Society has developed to a level of technological sophistication in which a given laborer can, produce output of value greater than his means of subsistence and the costs of the means of production used up in production (capital, I, p. 232, III, p 741);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. Circulation, or exchange of commodities, as opposed to production, begets no value as what one might gain with higher prices as a seller loses as a buyer; (Capital, I, pp. 180-82) This also applies to profit or surplus-value as a return on Merchant’s capital employed to finance the sale of the commodities (Capital I, pp 182-83); Merchant claims a share of profit but not a source of it; If surplus-value is realized in the sale of the commodities it is only because that surplus-value already existed within them. (Capital, III, p. 329);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. Surplus-value formation is independent of property or class relations as if instead of working for the capitalist the laborer worked independently, he would still be required to work the same number of hours to produce the value of his labor power (Capital, I, p. 240) The existence of profit or surplus value depends upon purely technical rather than political considerations; surplus value must be seen as congealed surplus labor time or nothing but materialized labor (Capital, I, p. 241);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. That profit takes the form of an unearned increment in the distribution of income is a function of certain property and class relations; but if the means of production were owned by the workers, the element of profit would still appear (Capital, III, p. 733);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;6. In all societies, surplus labor (above that required to produce means of subsistence of the workers) is required to replenish the means of production used up no matter who owns them. Systems differ only in the modes in which those surpluses are extracted; ( Capital, I, p. 241); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. The imperative for surplus labor producing surplus product (production in excess of subsistence and reproduction requirements of labor-power for reproduction of means of production used up in production) is not unique to capitalism; it is an imperative under all modes of production that differ in this respect only in terms of modes of extraction of that surplus labor from the producers. (Capital, I, 241, 259-60,)&lt;br /&gt;-&lt;br /&gt;8. The genesis of “profit” as a specific category of capitalism and particular capitalist production-private-property relations originates with certain historical processes (Capital, II, p. 40) The institution of private property (not the same thing as private personal possessions) originated with the separation—violent expropriations—of means of production from the independent owner-producers that owned them along with other processes of “Primitive Accumulation of Capital” (Capital, I, pp 628, 785-86, 796, 835-36);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. The capitalist claim to profit does not occur because of abstinence, sacrifice or even paying workers less (unfair exchange in wages for labor-power Capital I, pp, 186, 218) than the costs of their subsistence or to reproduce their labor power, the capitalist claim to profit rests on private property rights because the capitalist owns the means of production, thus claims to own the production from their use in combination with labor-power—labor&lt;a style="mso-footnote-id: ftn4" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn4" name="_ftnref4"&gt;[4]&lt;/a&gt;). Note here there are some implications here with increasing separation of ownership and control of capital and Marx makes the distinction between ownership of the physical capital versus ownership of the money capital that is materialized in the processes of production. Thus the investing capital claims profits to enterprise and thus the profits of the enterprise itself, not from the ownership of inert capital but from its uses and functions in production (Capital, III, p. 446);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. Profit thus is a residual component of exchange value, the distributions of which depend upon property relations. Surplus product results not from the abstinence neither of the capitalists, nor from the supposed supervisory and management “expertise”/roles of the capitalist (Capital, I, p. 215), but from the employment of the laborer. (Capital, I. pp. 214, 651, 655; Capital, III, p. 597);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. Capitalist consumption can and does grow with capital accumulation without the need for abstinence or without one restricting the other (Capital, I, p. 655);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. In his analysis of the origins and nature of interest, Marx distinguishes between the industrial capitalist and the financial or money capitalist. He notes that because of the role of the industrial capitalist in the production process, he can claim that his profit is not the in opposition to wage-labor, or unpaid and exploited labor, but rather represents also the “wages of labor”—his. He forgets that his role is in the facilitating, the generation, expropriation and uses of surplus-value a portion of which goes to the money capitalist in the form of interest; that surplus value is divided into profit and interest at this level, does not change the real nature and origin of surplus-value itself. (Capital, III, p. 447);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;13. Marx notes that it is not the industrial capitalist but the industrial managers that are the souls of the industrial system. (Capital, III, p. 454);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;14. If: A) M---C……C’---M’ where M’ – M = Surplus-value (s); and B) M---(c + v)…..[ (c + v) + s ]---M’ (and s = M’ – M)’ and C) C = c + v + s = c + L (length of working day); then: s = L – v (surplus-value per laborer or part of working day not for value of labor-power) D. Marx’s schema for determination of magnitude of profit; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. What is the duration of the portion of the working day where the value of labor-power is consumed by capital; Marx poses the question of how long can the working day be extended beyond the time required to reproduce the value of the labor-power itself (Capital, I. p. 290); Minimum working day is subsistence (time also includes rest and revitalization) time plus minimum surplus-value (Capital, I, p. 256);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;16. Out of maximum 24 hours theoretically but not actually possible, actual working day may vary 8 to 18 hours depending upon time, space, supply of labor-power, political influences (Communist Manifesto, pp, 21-22); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;17. Absolute Surplus-value is increased by adding (sometimes a few calculated minutes of overtime without pay) to the duration of the working day (Capital, I, pp. 259-265);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;18. The “normal” working day is that duration that produces the greatest surplus-value in the long-run based on establishing average laborer’s working life span (30 years assumed by Marx in Capital, I, p. 258) which makes the value of labor-power per day at 1/(365 x 30) = 1/ 10950 of total labor power. Attempts to extend the labor day beyond certain limits result in decreases in long-run supply of labor; Unlike under slavery where there are “teeming” numbers of slaves available and no institutional restrictions on the levels of exploiting them (Capital, I pp. 258, 260, 292-93 and Value Price and Profit, p. 108) setting a normal duration of the working day under capitalism is the best strategy for maximizing surplus-value; capitalists, however, have a tendency to transgress their long-run interests with short-run attempts to extend the working day in practice beyond its limits in law; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. Constant capital (c) not a source of value but does augment the productivity of labor (Capital, I, p. 426-27) and thus influences not only the division of the working day into labor-power and surplus, but affects values of commodities (inversely related to productiveness of labor) but also the value of labor-power (v) which depends upon values of commodities necessary for its reproduction; (Capital, I. p. 350)&lt;br /&gt;-&lt;br /&gt;20. Whereas values are inversely related to the productiveness of labor which is directly related to use of v with c, relative surplus value is directly proportional to the productiveness of labor; (Capital, I. p 350);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. If productiveness of labor reduces values of commodities necessary for laborers and thus the values necessary for the reproduction of labor-power, this then also reduces the portion of the total working day necessary to reproduce the labor-power utilized and thus increases the portion of the working day that is surplus labor and the surplus value produced by it (Capital, III, pp 26-27);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. Maximum relative surplus value with use of constant capital is where labor expenses incurred in the production of the constant capital are equal to the relative surplus value forthcoming from the machine’s employment (Capital I, pp 426-27);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;23. As more constant capital is used, this affects the quality of labor-power employed as it reduces the need for human muscle power and allows employment of children, women etc. the value of labor-power depreciates because although it may cost more to feed four family members than one, four day’s labor takes the place of one (head of the family) and thus unit labor-power costs (v) fall in proportion to excess of surplus labor of four over that of one, in order that now four people must live, they not only labor but expend surplus-labor for the capitalist; Thus, machinery, while augmenting the human material that forms the principal object of capital’s exploiting power, at the same time, raises the degree of exploitation. (Capital, I, pp 431-32);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. Changes in the physical composition or in prices of the commodities that form the subsistence of the laborer, directly affect v or the value of the labor-power (Capital, III, p. 98) which, although not directly intended perhaps (lowering the values of shirts that are also part of the subsistence of the laborers) aids in raising the general rate of surplus-value (Capital, I, pp. 346-47); See Marx on Capital urging Labor to support repeal of the Corn Laws in return for Capital’s support of the 10-hour working day as the reduction in the values of staples of the diet of the workers would thus reduce variable capital costs and thus increase relative surplus value which rises as v or the value of labor-power falls (Capital I, p. 308); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. Machinery also allows changes in social organizations of production and divisions of labor (degrees and structures of cooperation in productive processes) that allow, with increased workers, increases in specialization that also increase relative surplus-value; s = f (v[n] );&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. Marx argued that several factors serve to enhance the “powers of cooperation” or productivity of labor resulting from enhanced social organizations of production and divisions of labor: a) Increases in mechanical forces of labor (Capital, I, p.361); b)&lt;br /&gt;-&lt;br /&gt;27. Extension of “sphere of action” over greater space (Capital, I p. 360); c) Contraction of field of production relative to the scale of production (Capital, I, p. 360); d) The setting, at critical moments, of large masses of laborers to work (Capital, I, p. 360); e) The excitement of individuals, which raises their ‘animal spirits’ (Capital, I, p. 358); f) The impression of continuity on all operations (Capital, I p. 361); g) The simultaneous performance of different operations (Capital, I, p. 359); h) The economization of means of production by use in common ( Capital, I, p. 356); i) The development of the character of average social labor from individual labor (Capital, I, p. 355); j) Reconversion of waste elements of production into new elements of production (Capital, III, p. 95)&lt;a style="mso-footnote-id: ftn5" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn5" name="_ftnref5"&gt;[5]&lt;/a&gt; ;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;28. The extent of operation or influence of these factors listed in 27 depend upon: the individual sphere of work, the social environment and the efficiency of management (Capital, III, p. 100) Shifts from handicrafts to specialization tend to reduce occupational skills to that of a class of unskilled laborers; Costs of apprenticeship are inversely related to degree of specialization which also lowers value of labor-power which extends then the domain of surplus-labor (Capital, I, p. 384-85); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;29. The prolongation of the working day also reduces lower managerial labor costs and therefore greater relative surplus-value (Capital, III, p 94);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;30. On the roles of money and prices relative to values of labor-power and the commodities that make up the necessities that to into reproducing labor-power, Marx notes that: Monetary values are ‘reflectors’ of the real world and cannot contribute directly to surplus-vale, but, monetary changes do affect the divisions of the working day into value of labor-power and surplus-value and if prices of subsistence commodities rise due to increased gold supply or legal depreciations of currency, then if nominal wages to not rise proportionately to price increases, then real wages fall, or the price of labor-power sinks below the value of labor-power (Value, Price and Profit, pp. 102, 105);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;31. Prolongation of the working day increases de facto rate of utilization of constant capital thus reducing capital depreciation costs, thus affecting the magnitude of surplus-vale. Capital depreciation takes three forms: 1) circulatory or direct physical consumption of capital in production; 2) nonuse or ‘idleness’ of capital; 3) ‘moral’ depreciation or loss of exchange-value due to same type of capital produced more cheaply or more expensive and productive machines into competition with existing capital (Capital, I, p. 442 and Gottheil, op. cit, p. 40); “penalties” of moral depreciation ( dm )= costs of operating less efficient machines when available.&lt;br /&gt;-&lt;br /&gt;32. dm = c1 – c2; where c1 = value of machine at beginning of the production process and c2 = value of machine introduced during production period. To reduce dm relays of alternate labor shifts to provide continuous production are introduced. (Capital, I, p. 282); moral depreciation is the Marxian terminology for technological obsolescence;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;33. Since the exchange-value is determined by the amount of socially necessary labor time in its production and not absolute amount of labor time (in which case unproductive labor would add to value) then this exchange-value Marx calls real or social exchange value (Capital, I, p. 348) and thus any capitalist operating under ‘normal’ or average conditions of outlays of constant and variable capital, can produce normal surplus value or s (normal rate of ‘profit’ ( Capital, III, p. 398); Under these normal conditions the individual commodity produced Ci equals the social value or exchange rate of the commodity or Cs or Ci = Cs; In conditions with less than normal efficiency then Ci &gt; Cs, and thus the capitalist’s profit would be less than normal or S = Cs – (ci + vi) (Capital, III, p. 210) ;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;34. Stability of market exchange-value = f (Market Supply and Demand conditions and movements.) If Demand falls then the effect is the same on surplus value as if the individual capitalist had expended more labor time than socially necessary. (Capital, I, p. 120); Where capitalists produce under favorable conditions and/or if demand increases, then profit produced would be greater than normal which Marx calls extra surplus-vale or extra-profit or Se and thus since Cs &gt; Ci, then Se = Cs – Ci and total profit or surplus value under such favorable conditions would be S = Sn + Se;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;35. Innovations (Marx uses the terms ‘change in technique’, ‘new method’, invention’ and technological applications of science’ interchangeably&lt;a style="mso-footnote-id: ftn6" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn6" name="_ftnref6"&gt;[6]&lt;/a&gt;) are of three forms: 1) labor-saving with increasing organic compositions of capital; 2) capital-saving&lt;a style="mso-footnote-id: ftn7" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn7" name="_ftnref7"&gt;[7]&lt;/a&gt;, with decreasing organic compositions of capital; 3) neutral with no effects on organic compositions of capital; The labor-saving and thus displacing innovations are central in the Marxist dynamic model and all have the result of reducing the labor-time required to produce a given volume of commodities (Capital, III, p. 751-52);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;36. In Capital III, p. 752, Marx assumes that commodity exchange value is equal to the price of production (c1 = p1 ) and that all innovations, whether labor or capital-saving or neutral, reduce the labor-time necessary to produce commodities or Cs &gt; Ci ;&lt;br /&gt;-&lt;br /&gt;37. Assuming: S = Sn + Se; C1 = P1; P1 = k1 + p’k; k1 = 100 and p’ = 15% thus P1 = 115; Assuming conditions more favorable than normal k2 = 90 and therefore: P2 = k2 + p’k2 or 103 1/2 = 90 + 15% (90) since S = Sn + Se, therefore S = 15%(90) + (115 – 103 1/2) = 13.5 + 11.5 = 25 and thus: Se = Cs – Ci (but only under conditions of less than perfect competition; in cases of perfect completion, the real or social commodity value (Cs) is lowered to the individual commodity value (Ci) thus eliminating any extra surplus-value;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;38. Exceptional profits or surplus-value occur when machinery is first introduced and a ‘sort of monopoly’ sets up a form of “innovating profit” which depends upon the initial advantages of the monopoly-type market structures (Capital I, p. 444); Market- price movements from Cs to Ci depend upon: 1) effects of innovator’s increased supply on existing market supply and demand conditions; 2) how rapidly the innovation may be imitated by competitors (Wage-labor and Capital, pp. 44-45 and Capital, III, p. 755) who are compelled to match and introduce the innovations that reduce the ratios of variable to constant capital (Capital, III, p. 311);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;39. Innovators are not only capitalists; in fact the most significant innovators come from the best minds drafted out of the ranks of the ruled classes into service of the ruling classes and the more the ruling class is able to draft and utilize the best and brightest minds of the ruled classes, the more dangerous its rule (Capital, III, pp. 705-06);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;40. Effects of innovations are cumulative to the internal and external conditions of an industry as well as on the quality of internal parts and overall integration of those parts to form the overall quality of the overall machines invented and innovated (Capital, I, p. 442); Marx implies the distinction between invention (first prototypes) and innovation (improved, refined, and applied from prototypes into actual operational uses) notes that costs of machinery fall steadily from first innovations and that the most ruthless and useless capitalists use and benefit from the real innovators and inventors and “universal labor” of the human mind (Capital, III, p. 124);&lt;br /&gt;-&lt;br /&gt;Marx and Engels’ Assumptions and Postulates (Interest and Rent)&lt;br /&gt;-&lt;br /&gt;1. Interest is that portion of ‘profit’ or surplus value paid by industrial capitalist to money capitalist for use of money in the productive process (Capital, III, p. 398);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. Interest arises from the separation of ownership of the means of production from ownership of the loanable funds required for financing the development of those means of production and if no such separation existed, forming distinctions and strata between industrial and money capital, no interest or rate of interest would exist (Capital, III, pp. 412, 443); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. Only money capital has the unique property of possessing dual use-values: universal equivalence in commodity exchange and serviceability in the production process (Capital, III, p. 399) and thus when capitalist advance funds, they do not advance money per se but capital (Capital, III, p. 410);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. Interest is NOT the price of money capital (an irrational expression, Capital, III, p. 417); Money capital is essentially a sum of money (distinguished by its ultimate use not as a means of exchange and measure of price and value) so any value of money capital is, by definition its own price. (Capital, III, p. 413);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. Interest payments do express the self-expansion of money capital and thus appear as a price received by the lender (Capital, III, p 413); there is no implication of any productiveness of money capital but simply the outcome of a legal agreement between buyer and seller (Capital, p. 410); The money capitalist could not exist without the industrial capitalist and the money capitalist is impelled by the imperatives of competition and accumulation, and opportunity costs, to lend either to interest-bearing property or in industrial capital; (Capital, III, p. 443); The person with money capital either invests directly and becomes an industrial capitalist and earns profit as his return, or, finds industrial capitalists willing to borrow and then commands interest, and remains a money capitalist but in either case, interest comes only from surplus-value which originates in production. (Capital, III, p. 443-44);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;6. Ma – Mb — C ….. C — M’b — M’a Where: M’a – Ma = Property of the money capitalist and magnitude of interest; M’b—Mb = Property of the industrial capitalist; The contract between borrower and lender is represented by Ma—Mb and M’b—M’a; while industrial profit or net return to the industrial capitalist is reduced by that value of (M’—Mb) to [ ( M’b—M’a )—Mb ] Here, according to Gottheil (p. 49), Marx quotes from The Economist that ‘The relation between the amount paid for the use of capital to this capital itself expresses the rate of interest, measured in money’ (Capital, III, p. 421) so the rate of interest I’ can be expressed as: i’ = M’a – Ma/ Ma; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. Magnitudes of interest depend upon: prevailing rate of profit in the economy and supply and demand conditions for loanable funds (Capital, III, p. 419); The maximum limit on interest would be the total surplus value produced from the use of the money capital in which case interest would coincide with surplus value or profit (Capital, III, p. 437)&lt;a style="mso-footnote-id: ftn8" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn8" name="_ftnref8"&gt;[8]&lt;/a&gt; and the minimum limit is indeterminable in the abstract and may be zero. S greater or equal to I greater or equal to 0;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. Relationships between industrial and financial capitalists are antagonistic as more interest means less net profit and vice versa; where surplus-vale determined by general laws in the production process, interest determined by bargaining powers and supply-demand market conditions of the lenders and borrowers and similar to determination of commodity prices around exchange values; Supply of loanable funds = f (size of money capitalist class, level of development of credit and banking systems, community savings, international flow of precious metals, traditions/customs—institutions and risk) (Capital, III, pp. 425, 511, 573, 674-75, 707-09, 733, ); heavy focus by Marx on supply sides of loanable funds and commodities in determining actual interest rates and prices; liquidity of bills of exchange also influence interest rates;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. Creation versus conversion of capital funds from one form to another; discounting of bills of exchange only conversions of forms of capital (Capital III, p 503); Creation occurs through the discounting process when the banking system extends credit on the basis of non-existent commodity capital or fraudulent bills of exchange called “fictitious capital” (Capital, III, pp. 481-88) and “capitalizing” (Capital, III, p. 548); Certificates of indebtedness, Government debt, which command an annual fixed income for indefinite periods of time, have market values which are determined by the market rate of interest and the fixed income per period.&lt;a style="mso-footnote-id: ftn9" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn9" name="_ftnref9"&gt;[9]&lt;/a&gt; And thus: CV = y/I’ where CV = capitalized value and I’ = interest rate and y = fixed income per period of time;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. Interest-bearing certificates (government securities, bonds, treasury notes etc) compose an element of banking capital; (Capital, III, pp. 489, 545);&lt;br /&gt;-&lt;br /&gt;11. To a large extent, government securities and the national debt they finance compose a large element of this “fictitious capital” (Capital, III, p. 546);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. Landed property based on monopolization of use of land in limited supply (Capital, III, p. 722) and capitalist production in agriculture like that in industry and based on separation of original owners of means of production from their ownership, control and use of property originally theirs (Capital, III, p. 721);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;13. Agricultural production based on three classes: 1) tillers of the soil or wage-earning workers; 2) capitalist-farmers; and 3) landowners of soil worked by tillers and exploited by capitalist farmers;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;14. Ground rent is return to landowner for use of property no matter for agriculture, mining, fishing grounds, forests, building lots etc. (Capital, II, p. 725); there are three forms of ground rent: 1) Differential Rent I (from extensive land cultivation); 2) Differential Rent II (from intensive land cultivation); 3) Absolute Rent (from monopoly of land); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. What appear to be qualitative gradations in soils (land material) may well be merely manifestations of qualitative differences of fixed capital (land capital) applied to the land by the capitalist farmer or land owner due to: 1) transient such as chemical applications of fertilizer; 2) permanent, such as drainage canals, irrigation works, leveling and farming buildings; these returns on these types of investments “appear” as rent and landlords claim returns from these investments due to land tenure and contracts with capitalist farmers;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;16. Marx notes that during the time periods of the contracts between landlords and capitalist farmers, the returns from enhanced soil due to transient and permanent investments by the farmers belong to them but when the contracts expire, the returns from soil improvements that have become embodied in the soils, now belong to the landlords as returns from improvements that have become inseparable parts of the land (Capital, III, p. 726); in subsequent contracts, with the same or new capitalist farmers, the landowner leases improved soil (material soil plus land capital) which commands a higher ground rent (former ground rent plus interest on the land capital incorporated in the soil with the absorption of interest on the land capital by the landlord most obvious in the case of permanent types of investments in buildings to be leased to capitalist farmers and these differences explain the desire for landowners for short-term leases and for capitalist farmers for long-term leases Capital, III, pp. 728, 789); Marx calls these types of additions to ground rent “foreign ingredients” in ground rent (Capital, III, p. 732);&lt;br /&gt;-&lt;br /&gt;17. Aside from the return on land capital, deductions from the capitalist-farmer’s profit and the tiller’s wages constitute additional forms of foreign ingredients;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;18. Marx shows the strong parallels between manufacturing-capitalists and farmer- capitalists but they also differ in levels of risk and social position with the lower returns on investment of the capitalist farmer compensated for with lower risk and higher social standing as part of the landed classes; Small capitalists earn less than average profit due to tradition, education, training and competition (Capital, III, p. 734);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. “The determination of ground rent, like the determination of innovating profits, depends upon the difference between social and individual value (or price) in a particular sphere of production. This difference we have seen, depends upon the introduction of a new technique into a production process which reduces the cost of production below that considered socially necessary.”&lt;a style="mso-footnote-id: ftn10" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn10" name="_ftnref10"&gt;[10]&lt;/a&gt;;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;20. In the formation of ground rent the “technique” is explicitly defined as the “natural force” or a ‘natural power’ (like water with no cost or exchange value and thus no need to be paid an equivalent) to be used with a labor-consuming factor of production, resulting in the individual cost of a commodity falling below its socially necessary labor time cost (Capital, III, p. 753); Marx uses example of water wheel (no constant capital required for construction or variable capital to attend it), versus a steam power that does require c and v ) in producing water power: Since the commodity produced by water wheel with no c and v sells at the market price (social value) it realizes extra surplus value Se = Cs – Ci and the stability of such extra surplus-value depends upon the extent to which production techniques using natural cost-free power become incorporated widespread to all producers and if so, then extra surplus-value disappears rapidly as social values of commodities fall rapidly to individual values of commodities; (Capital, III, p. 755); in this case the increased productiveness of labor is due to monopolized natural power and not to v or c and extra surplus value only exists when the natural power cannot be imitated and when its source is monopolized (Capital, III, pp. 755-57); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. If all capitals had access to the sources of natural power and were able to effectively use them, then Cs and Ci values would fall along with any extra surplus-value (Capital, III, p 754); Private ownership of land holding this natural power does not create that portion of value transformed into surplus-profit but merely enables the landowner to coax surplus-profit away from industrial capital;&lt;br /&gt;-&lt;br /&gt;22. Thus: Se = GR (Ground Rent) = Differential Rent (a differential between market price and individual cost in production) or GR = p1 – p2 or GR = f (p1 – p2) where p1 and p2 are prices fixed by technical factors. THUS GR IS NOT PART OF THE PRICE BUT DETERMINED BY IT (Capital, III, p. 757);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;23. Differential Rent Type I: With equal quantities of land cultivated and land capital employed, occurs as a function of production inequalities that themselves are functions of 1) natural soil fertility (a function of climatic conditions, chemical composition of top soil, and transient and permanent land-capital improvements in soils Capital, III, p763) and 2) soil location (a function of state of development of the economy’s communication and transportation systems; Capital, III, p 762)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. Where lands are equal distances from market, most fertile lands bought and used first but where unequal distances of lands from market then less fertile lands will be bought and used first if lower transport costs offset cost differentials as a function of fertility differentials (least total cost solutions);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. In contrast to West, Malthus and Ricardo , who saw differential rents occurring as lands were developed and utilized in descending order of fertility (from best to worst with ever decreasing productivity in agriculture) Marx assumed that the succession of land cultivation that gives rise to Differential Rent I may descend from most to least fertile lands or ascend from least to most fertile lands (Capital, III, p 772); And, assuming that demand for agricultural commodities steadily increases as more areas brought into cultivation, commodity prices remain constant with inferior lands and increase with superior lands as demand increases for commodities;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. Magnitude of Differential Rent I = f ( production and demand functions in the economy: number of soils under cultivation, productivity differentials between soils, general demand conditions) and GR = f (productivity differentials) (Capital, III, p. 768) assuming market prices constant;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;27. Improvements in total and individual soils impact on GRs = f ( distributions of improvements—differentials—among the soils): a) with proportional increases in productivities of/among soils total and individual GRs will increase; b) greater increases in productivities of more fertile soils then differential rents particularly on the superior soils would increase; c) greater productive increases on less fertile soils then GRs on superior soils would fall as differentials between fertility levels among soils fell (Capital, III, p. 769);&lt;br /&gt;-&lt;br /&gt;28. This also applies to the extension of lands under cultivation where the effect of expansion depends upon the role played by each particular soil type in the expansion scheme: a) proportional expansion of all soils then differential rents increase in same ratio as lands cultivated increase (doubling of lands cultivated doubles differential rents); b) where expansion of cultivated lands is concentrated on the less fertile soils, differential rents per acre decline; c) where expansion of cultivated lands is concentrated on more fertile soils, differential rents per acre increase (see tables in Capital, III, p. 775); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;29. Differential Rent II (intensive) occurs not only as a function of land-capital investments on lands with unequally productive soils, but with investments in land-capital concentrated (intensive) on one specific soil type or level of fertility (Capital, III, p. 790); “…It is evident…that differential rent No. II is but a different expression of differential rent I, but that it coincides with it in substance” ( Capital, III, p. 792 quoted in Gottheil, op cit. p. 65); Marx assumes also price flexibility up and down; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;30. Money Rent (MR) = GR x P (price of grain) As land-capital investment increases, overall labor productivity increases putting downward pressure on market prices which impact upon MRs depending if increases in agricultural demand keep pace with increases in supply: Assume investment in a specific area without affecting magnitudes of MRs then: MR1 = GR1 x P1 = MR2 = GR2 x P2 or P1/P2 = GR2/GR1; but if P1/P2 &gt; GR2/GR1 then MR declines and if P1/P2 &lt;&gt;&lt;br /&gt;-&lt;br /&gt;31. Variants on the discussion on differential rents include fluctuating prices (falling, constant and rising) and productivities (falling, constant and rising per “capital investment” on cultivated areas with varying soil fertilities); e.g. Variant II (falling prices and falling productivity of the additional investment of capital) became the rule for Europe that led to the ruin of landlords (Capital, III, p. 842); &lt;/div&gt;&lt;div align="justify"&gt;&lt;div align="justify"&gt;-&lt;br /&gt;32. Distinctions between DR I and II are purely analytical as they both result from differentials in prices and productivities of areas under cultivation and the least fertile land-capital investment, however, where intensive cultivation occurs, GR per acre is higher than in the extensive case; Marx illustrates with how the capital investment took place (successive outlays on a limited area (intensive) commands higher rent per acre and land price than if more coordinated outlays upon a wider area (extensive) of land Capital, III, p 809);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;33. While differential rent (DR) is determined by price and not a determinant of it, Absolute Rent (AR) is the reverse: a determinant of price not a derivative;&lt;br /&gt;-&lt;br /&gt;34. Pb –Pa = d; Where: Pb = Price of commodity produced on least productive soil; Pa = cost of production of commodity produced on more productive soil and d = resulting differential rent; The modification of the agricultural price determination to include a constant or absolute rent r does not affect the magnitude of differential rent d (Capital, III, p. 868); (Pb + r) – ( Pa + r) = d and thus the emergence and imposition of absolute rent is dependent upon the institution of private property (Capital, III, p. 871); and r is passed on to consumer in higher market prices; P + r;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;35. The determination of r depends upon: a) lower-than-social organic composition of capital ; b) cultivated lands held in hands of landlords; c) market rigidities; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;36. Commodity prices versus values were result of difference between individual surplus-value and average profit where commodities sold at market prices—cost plus average profit—because of assumed competitive product and factor market structures; Absolute rent emerges with the absence of a competitive factor market structure and the private ownership of land; Inter-sphere competition between capitals is limited and migrations of capital into agriculture (where surplus value is greater than average throughout the whole economy) is limited by private ownership of land (Capital, III, pp. 882-888); landlord and the private ownership of land that supports him is like a “foreign power” to the capitalist (Capital, III, pp. 884-85);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;37. The maximum limit to r = difference between surplus-value received by investment in the agricultural sphere versus average surplus-value received by an equal investment in the nonagricultural sphere: r = s – P (Capital, III, p. 888);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;38. Marx defines price of agricultural products as a monopoly price (Capital, III, pp 885, 887), the maximum limit of r as surplus-value(agriculture) vs. average surplus value “profit”(non-agriculture) with the prevailing r conditioned by: a) the quantity of additional land-capital investment on OLD lands which will increase differential rent at the expense of r and b) extent of competition between landlords (Capital, III, pp. 789-90) and c) the wants and effective demand of consumers (Capital, III, pp 80-87);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;39. Because the value of a commodity depends upon its socially-necessary labor content, the value or price of land is theoretically zero (Gottheil, p. 69); While the notion of the “price of land” is irrational in Marxist terms, it nevertheless represents a real economic relation (Capital, III, p 720); Like interest on capital bonds, ground rent can be capitalized and the capitalized value of such rent gives the appearance of being the “price of land”: CV = y/I’ where CV = computed value of land, i’ = interest rate and y = GR or fixed annual return; so if a capitalist buys land yielding rent of 200 pounds on 4,000 pounds paid for the land, then he draws an average interest of 5% on capital as if he had invested in interest-bearing papers or loaned it out at 5%. Thus the “price of land” appears to rise and fall inversely with the rise and fall of the interest rate if we assume GR as a constant magnitude; If the ordinary rate of interest should fall from 5% to 4%, then the annual ground rent of 200 pounds would represent the self-expansion of a capital of 5,000 pounds instead of 4,000 pounds (Capital, III, p. 730-31);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;40. Rents in the Marxian system are both price-determined and price-determining; Differential rents result from inequalities in land fertilities and distances to market while absolute rent is derived from differences in social composition of capital and capital compositions in agriculture; in both cases the rents are the property of the landowner; Cost of production on the least fertile soil determines market price which may appear as an inconsistency with labor theory of value until it is resolved with the notion of land monopoly which allows any surplus earned over average profit in the non-agricultural spheres to be taken by the landowners and not the capitalists and thus the averaging-out of total agricultural surplus among capitalists is effectively eliminated; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;41. Marx’s analysis of absolute rent also requires an additional assumption that all uncultivated lands cannot yield a surplus as large as average profit as it would pay the landowner to lease the land as rent would be greater than zero. This assumption is implied in the assumption that the least fertile soil determines price, assumption employed in the analysis of differential rent. In Marx’s treatment of differential rent and showing its origin even if moving from least fertile to most fertile soils (A to B to C to D) if demand for agricultural commodities continues but Marx did not explain why the least fertile soil would be used when more fertile soils were available.&lt;a style="mso-footnote-id: ftn11" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn11" name="_ftnref11"&gt;[11]&lt;/a&gt;&lt;br /&gt;-&lt;br /&gt;Marx and Engels’ Assumptions &amp;amp; Postulates (Circulation/Accumulation of Capital)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;1. Theory of capital circulation forms an essential part of Marx’s general theory of commodity valuation, determination of aggregate surplus-value and theory of economic dynamics; time variable introduced to distinguish capital advanced for production versus capital actually employed;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. M—C….C’—M’ and: Ma—Mb—C….C’—M’b—M’a;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. Capital circulation refers to repeated movements of capital through the spheres of production and circulation (also used by Marx interchangeably are the terms capital rotation, movement and flow); Four forms of capital in circulation are: a) Money Capital (M and M + m) Capital in possession of the industrial capitalist before and after actual production; b) Commodity Capital (Clpm and C + c) productive factors and finished products; c) Productive Capital (P) or Capital in process of transformation from factor to product form; d) Industrial Capital: the generalized form of money capital, productive capital and commodity capital as distinct from money capital in the hands of the money capitalists&lt;a style="mso-footnote-id: ftn12" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn12" name="_ftnref12"&gt;[12]&lt;/a&gt;;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. M—Clpm...............P…………….(C + c) + (M + m) Where: a) P = Productive Capital; b) Clpm…….(C + c) = Commodity capital; c) M……….(M + m) = Money Capital; d) Whole exchange chain M……m = industrial capital;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. Exchange structure divided into two processes: a) period of production covering production processes P; and b) periods of circulation, [ M—Clpm] and [ (C + c)—(M + m) ] which compose four distinct markets: 1. M—Cl the labor-power market; 2. M—Cpm the capital-goods market; 3. C—M the commodity market for the original commodity value; 4. c—m the commodity market for surplus production; Only in the periods of circulation is the relationship between industrial and merchant capital expressed; production on a large scale is for other industrial and merchant capital;&lt;br /&gt;-&lt;br /&gt;6. Continuous production depends upon continuous scale; Capital rotation depends upon coincidences of market capacities and productive capacities. When factor shortages arise in the M—Cpm markets, money capital stays idle (a “hoard” Capital, II, p. 60); Where the consumption capacity of the market cannot absorb total amount of commodities produced, commodity capital (inventories) accumulates producing a “glut” (Capital, II, p. 60) either hoards or gluts obstruct the normal rotation of capital;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. Simple rotation or reproduction occurs when surplus money capital m is removed from the industrial sphere as money spent by capitalist for consumption and in simple reproduction, the magnitude of industrial capital in circulation remains constant (Capital, II, p. 76); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. Accumulation of progressive reproduction or expanded reproduction, occurs when a portion of the surplus, m, is turned into more industrial capital regulated by a minimum capital requirement for production which is determined by the existing state of technology (Capital, II, p. 89);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. Marxian system assumes discontinuous production functions which form the basis of “latent capital” with its magnitude determined by the difference between surplus accumulated and minimum requirements for its incorporation into production (Capital, II, p. 89);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. Commodity value depends upon embodied labor time or what Marx calls “time of production” (t) which includes not only time of production (tp) but also time of circulation (tc); Thus t = tp + tc (Capital, II, p. 147);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. Industrial capital during the phase of circulation results in no surplus-value but as circulation is time-consuming, the surplus value that industrial capital can cause to be produced depends upon the allocation of t between tp and tc or, s = f ( tp/tc) (Capital, II, p. 142)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. Kc = costs of circulation which, although part of the total costs of creating surplus-value do not create value or add to surplus-value: “any more than the work done in a civil process increases the value of the object of contention.” (Capital, II, p. 142 cited in Gottheil, op. cit, p. 74); Cost-price includes both production and circulation costs: k = kp + kc and P = p’(kp + kc);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;13. Not all of circulation costs can be added to price: out of costs such as a) ‘genuine’ costs of buying, selling and bookkeeping, b) storage and inventory, and c) and transportation to market, only storage and transportation are added to price (Capital, II, pp 147-51); Costs of a) assumed as relatively fixed;&lt;br /&gt;-&lt;br /&gt;14. Both marketing and bookkeeping costs assumed relatively fixed and vary as a percentage of total costs inversely with the organic composition of capital; to provide for continuous commodity production, storage and inventory costs (using both c and v) of factors of production and some finished goods (commodity capital greater than average sale or demand for normal rotation of industrial capital; Capital, II, p. 168) are necessary (inventory stock, buildings, warehouses, protection against perishability (Capital, II, p. 157); costs of storage of factors of production and commodity inventory vary directly with the development of capitalist production and inversely to the number and size of suppliers and the level of development of transport systems (Capital, II, p. 162); transport costs not value-creating but add to price except when they are part of the total production process that requires transport processes as part of total production processes and not part of circulation in which case v or labor-power used in transport adds to value; (Capital, II, p. 170-71);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. Time of production = working period versus working day; working period = number of working days to finish a product; product of each working day only a portion of the total work product and period (Capital, II, p 262); includes advancement of wages, sufficient stocks of raw materials, necessary capital equipment (Capital, II, p. 264) and extension of the working period reduces capital turnovers per year as does the time of circulation; time of production of a specific capital outlay = f(employment of machinery in production, levels and forms of cooperation, level of development of a credit system, level of development of markets and transport systems);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;16. When working period is shortened, this increases amount of capital advanced in shortened time so that amount of capital/time increases as time decreases (Capital, II, p 268); Thus tp = f(1/Ko); advanced capital becomes a substitute for time with time in circulation spent in marketing and varies with changing market conditions (Capital, II, p 385, 364); Improvements in transport systems may cut time in established markets yet prolong circulation time overall with introducing new and more distant markets (Capital, II, p. 287);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;17. Total period of production (t) or time of turnover (Capital, II, p. 176) = complete rotation or cycle of a given quantity of industrial capital;&lt;br /&gt;-&lt;br /&gt;18. Total period of production = time of circulation + time of production which Marx assumes is one year time period; number of turnovers of capital per year = n = 1/t where n= number of turnovers of a particular capital and t = turnover time measured as fraction of a year of the given industrial capital;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. Industrial capital for Marx = cKo (circulating capital transferred from factor to product or capital used up in production) + fKo (fixed capital or the amount of capital remaining in the factor state during the time of turnover or the production and sale of the commodity (Capital, II, pp. 178-80); while in the long-run all capital is circulating, the distinction between circulating and fixed capital is relevant during a given capital turnover period (Capital, II, p. 190); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;20. The relationship between the amount of capital advanced per year in producing, Ko, and the amount of capital employed per year in production Ke, depends upon the capital advance is in the form of fixed or circulating capital: Ke/Ko = f ( cKo/fKo) so that capital employed in production varies with number of capital turnovers per year: Ke = n(cKo); and if the total capital advanced produced a set of commodities which were sold at the end of a year’s production then: Ke = cKo = Ko and Marx notes, according to Gottheil, that capitalist production is not characterized by this coincidence (Capital, II, p. 209);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. Annual production of both commodity value and surplus-value is calculated by the employment (not advanced) of variable capital (Capital, II, p. 346) Where Ke = n(cKo), thus the employment of capital and the annual mass of surplus-value S vary directly with the capital turnover rate (number of times capital rotates per year); the proportion of total surplus-value produced in one year to the value of advanced variable capital and the number of capital turnovers; Marx calls the annual rate of surplus-value (S’) (Capital, II, p. 350) so that the annual surplus value is measured by the rate of surplus value, the variable capital advanced and the number of capital turnovers so that S = sn and then S’ = s’n (Capital, II, p. 338);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. With development of capitalist mode of production and associated transportation systems, circulation and production times are reduced, annual turnover or capital reproduction rates increase and annual surplus-value increases; merchant capital an unproductive agent in the economy;&lt;br /&gt;-&lt;br /&gt;23. Rate of economic growth = f ( magnitude and use of economic surplus); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. Conversion of economic surplus (property of capitalist) into capital is defined as accumulation (Capital, I, p. 634); complete conversion of surplus into consumption is defined as simple reproduction (Capital, I, p. 621) and analysis of simple reproduction is used by Marx a as first approximation in treatment of capital accumulation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. Department I = production of capital goods; Department II = production of consumer goods (Capital, II, p. 457); in each department it is composed of varying proportions of variable and constant capital; Social capital (K) is defined as sum of capital outlays of the two departments: K = (K)1 + (K)2 = (c + v)1 + (c + v)2 and thus total production in the economy (C) = commodities produced during a given period by both departments: C = C1 + C2 = (c1 + v1 + s1) + (c2 + v2+ s2); and the difference between total annual product and total cost of production is defined as total annual surplus (S) = C – K = (s1 + s2);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. Marx’s Simple-reproduction Model of Input-output Matrix:&lt;br /&gt;Output&lt;br /&gt;Dept. I Dept. II Total&lt;br /&gt;Dept I c1 (v1 + s1) c1 + v1 + s1&lt;br /&gt;Dept II c2 (v2 + s2) c2 + v2 + s2&lt;br /&gt;Total (c 1 + c2) (v1 + s1) + (v2 + s2) C&lt;br /&gt;&lt;br /&gt;Assuming: a) constant relative prices; b) constant organic compositions of capital in both departments; c) equality in rates of profit; d) capitalist surpluses in both departments spent on commodities of Department II; e) constant size of the working class and wages &gt; subsistence; f) gross investment or (c1 + c2) = real depreciation so that the capital stock is maintained. Total value of capital goods produced by Department I = (c1 + c2); Total value of consumption goods produced by Dept II = (v1 + s1) + (v2 + s2); Interdepartmental transactions include: 1) purchases of capital goods (c2) from Dept. I by capitalists of Dept. II; 2) purchases of consumer goods from Dept. II by capitalists and laborers of Dept I; and intradepartmental transfers include: 1) purchases of consumer goods by laborers and capitalists of Dept. II (Capital, II, pp 460-64); stability of simple reproduction = c2 = v1 + s1&lt;br /&gt;-&lt;br /&gt;27. If : Dept. I 4000c + 1000v + 1000s = 6000C&lt;br /&gt;           Dept, II 2000c + 500v + 500s = 3000C&lt;br /&gt;           Total Annual Product = 9000C&lt;br /&gt;Then subsistence of capitalists and laborers of Dept I financed with sales of capital goods to Dept II to meet capital requirements of 2000c in exchange for which Dept. II exchanges 2000 units of consumer goods for 2000 units of capital goods, and the 4000 units of capital goods remaining in Dept. I are then used to maintain its capital stock of 4000c and the 1000 units of the 3000 units of consumer goods of Department II are used for subsistence requirements of laborers and capitalists of Dept. II. And at the end of the period the capital requirements of both departments are maintained and the stability of the system defined in the equation c2 = v1 + s1 would not only be totally coincidental depending upon utility functions of the social classes (Capital, II, p. 578) but that this scheme ( simple reproduction is when I (v + s) = IIc) is totally at odds with how capitalism operates and its core imperatives for accumulation at least on par with population growth although in an odd year or over a 10-year what appears to be simple reproduction or less than simple reproduction may accidently occur (Capital, II, p. 608); Marx noted that with population growth, simple reproduction could only take place with an increasing number of unproductive servants would partake of the 1500s or aggregate surplus-product (Capital, II, p. 608);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;28. Marx introduced into simple-reproduction a qualitative differentiation between necessary consumer goods and luxury goods (consumed only by capitalists and composing a definite percentage of their total consumption ) produced in Dept. II but it had no effect on this basic model (Capital, II, p 467 and Gottheil p. 83); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;29. Accumulation (a) emerges with surpluses allocated for capital formation or a = g(s); “Capitalist is merely personified capital” (Capital, I, p. 648) The motive for capitalist production not conspicuous consumption but incessant gain of surplus-value and its capitalization (accumulation) (Capital, II, p 588);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;30. Marxian growth model assumes: a) relative prices constant; b) profit rates in each department constant; c) All surpluses held by capitalists; d) a given percentage of surplus in Dept. I converted to capital or a = gs1 (g = constant %); e) adequate labor-power supply to match accumulation rates; f) technology is constant; g) form of the surplus comprises elements of new capital; h) net investment to expand scale of production over replacement;&lt;br /&gt;-&lt;br /&gt;31. Given the value of g, ‘accumulation resolves itself into the reproduction of capital on a progressively increasing scale. The circle in which simple reproduction moves, alters its form, and, to use Sismondi’s expression, changes into a spiral.’ (Capital, I, pp 636-37);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;32. Expansion of capital can be expressed: Kt = K ( 1 + p’g)t where Kt = amount of capital in time period t; Ko = original capital; p’ = rate of profit; g = % of surplus-value converted into net investment; capital accumulation in this two-department model traces intra and inter=departmental transactions to show spiral increases of capital accumulation; Note: K1 = Ko + p’Kog = Ko(1 + p’g) and K2 = K1 + pK1g = K1(1 + p’g) = Ko (1+ p’g)2 ; Kt = Ko(1 + p’g)t &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;33. Transaction between [v1 + s1 – a (= gs1)] and c2 where v1 + s1 – a = total consumption of capitalists and laborers in Dept. I; a is decomposed into elements of capital for Dept. I , e.g. (ac1 + av1); to provide for av1, transaction occurs between av1 (capital goods) and s2 (consumer goods) where s2 = av1; c2 in the course of these interdepartmental flows, increased to [c2 + dc2 ( = av1)] and in order to maintain capital composition in Dept. II, v2 is necessary to offset the increased c2 and is provided from s2;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;34. Following the accumulation process with constant g and s1 &gt; 0, system becomes explosive with rate of accumulation an independent variable (Capital, I, p. 679); material means of accumulation are drawn from surpluses of Depts. I and II with the former in Dept. I determined by g and in Dept II by the consumer goods necessary to complement increase in constant-capital formation; Since net investment is provided by surplus, then the surplus consumed by the capitalists [s(c)1 + s(c)2] must be less than the surplus produced by the process (s1 + s2); After several periods of accumulation, capitalist consumption surpasses that under simple reproduction with all surplus consumed because of compounding;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;35. The magnitude of surplus consumed in any period of time, depends upon the rate of accumulation and organic composition of capital in both I and II;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;36. Since accumulation or capital formation in any time period is the conversion of surplus into capital during that time period, the magnitude of capital investment or capital accumulation may be expressed as: Kt = ( [v1 + s1(1-g)-c2] + [av1/c1 + v1] + [v2/c2] [v1 + s1(1-g) – c2] + [v2/c2(av1/c1 + v1)] + s1[1-g] )t; in the simplified case we have: Kt = [ (1 + v2/c2)(av1/c1 + v1) + s1(1-g) ] t&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;37. Capital concentration (related but not the same as Economic concentration in neoclassical theory) is defined by Marx as growing accumulation of capital in the hands of individual capitalists (Capita, I, p. 685); this process compounds individual holdings as well as adds new capitals through divisions of family inheritances ; the division of social capital into individual holdings (concentration) is counteracted by centralization, a process driven by competition and availability of credit, where larger capitals swallow the smaller via economies of scale and price competition and credit discrimination (Capital, I, pp. 650, 687); Bigger capitals get bigger and small get weeded out; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;38. Capital accumulation is linked with increasing organic compositions of capital; Accumulation à Capitalism à Accumulation… (Capital, I, pp. 684-85); This is an assumption of the model;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;39. Under Kt = Ko(1+ p’g)t the expansion of capital assumed a constant state of technology but this assumption is contradicted when concentration and centralization of capital are introduced into the analysis; centralization implies increasing organic compositions of capital, but the rate of profit is inversely related to the organic composition of capital and therefore when technology develops, the rate of profit (p’) in the expansion of capital equation above falls and the value of Kt becomes indeterminate; Marx, however refers to increasing organic compositions of capital as increasing productivity (Capital, I, p. 684). To assume that s = f (c/c + v) is, inconsistent with the assumption of a constant rate of exploitation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;40. Marxian models of accumulation: a) assume constant state of technology and constant rate of accumulation in which case the model is explosive; b) accumulation under conditions of changing technology and rates of accumulation in which case the rate of economic growth depends upon relative rates of technology and accumulation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;41. All models on simple reproduction and capital accumulation based on values and not prices. Had values been converted to prices, the simple-reproduction model could no longer develop the equilibrium he assumed to develop from the model and its assumptions; the selection of value instead of price also damages the capital accumulation model. In Marx’s model on economic growth with Departments I (capital goods) and II (consumer goods) Marx assumes different organic compositions of capital and thus rates of profit in the two departments must differ; yet Marx, in his second approximation to price theory, assumes that in the capitalist system the rate of profit in all industries is equal. Although Marx assumes that the accumulation of capital occurs at an increasing rate, no conclusions about the growth rate of capital can be made from the model if the rate of profit is permitted to fall; the incorporation of increasing technology into the model by definition implies a fall in the rate of profit.&lt;a style="mso-footnote-id: ftn13" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn13" name="_ftnref13"&gt;[13]&lt;/a&gt;;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;42. Marx’s theory of economic growth is also a theory of economic decay.&lt;a style="mso-footnote-id: ftn14" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn14" name="_ftnref14"&gt;[14]&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;43. The capitalist system contains within it the seeds (contradictions) of its own demise;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;44. Super-profits, generated by innovation are wiped out by competitors imitating the innovations thus causing more innovation; innovations under socialism and communism exceed those under capitalism thus the critical determinant of innovation is the general environment’s favorability to science;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;45. Primary determinants of the rate of profit (p’ or s/c + v) are the rate of surplus value (s/v) and the organic composition of capital (c/c + v) and capitalist’s pursuit of higher rates of profit compel increases in organic composition of capital which, if rate of surplus-value is assumed constant, then rate of profit will fall; but Marx did understand that the rate of surplus value is also dependent upon the organic composition of capital, but Marx’s assumption of constant s/v in Volumes I and part of II was to underscore the organic composition of capital as a principle determinant of the rate of profit. And thus his assumption of constant s/v was part of his overall method of successive approximations and Marx predicted that the rate of profit would decline no matter what the rate of surplus-value; Marx does note however that although constant capital does not create value, it does affect laborer productivity and that portion of the working day for the laborer’s subsistence and thus affects the amount of absolute surplus and thus the rate of surplus-value; organic composition of capital à productivity of the laborer à amount of surplus à rate of surplus-value (Capital, I, p. 422; Capital, III, pp. 111, 178, 257, 261, 269, 290); There are limits to the extent to labor-displacing nature of capital formation and technology;&lt;br /&gt;-&lt;br /&gt;A Compendium of the Predictions of Marx and Engels&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Primary Predictions (Falling Rate of Profit)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;1. Capitalists and capitalism cannot exist without continually revolutionizing technology, the instruments and relations of production and thus the whole relations of society (Communist Manifesto, p. 13, Capital, I, p. 491, Capital, III, p. 311,);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. The general rate of profit will tend to decline (Capital III, p. 255, 274, 275-77, 297)&lt;a style="mso-footnote-id: ftn15" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn15" name="_ftnref15"&gt;[15]&lt;/a&gt;;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Secondary Predictions Derived From Falling Rate of Profit&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;1. The productivity of labor will expand in a geometrical progression (Capital, III, p. 308)&lt;a style="mso-footnote-id: ftn16" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn16" name="_ftnref16"&gt;[16]&lt;/a&gt;;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. The value of labor-power (per individual family member) will decline (Capital, I, pp 431-32, 534);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. Labor will be equalized and reduced to the most basic or common skills(Communist Manifesto, p. 18, Capital, I, p. 459, 461-63);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. Labor mobility and the imperative for mobility will increase (Capital, I, p. 459);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. The labor of men will be superseded by that of women and children (Capital, I, pp. 431-32);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;6. Modern industry will destroy the individual economy and with the traditional institution of the family and reduce the family to a mere money relation (Capital, I, p. 513, Communist Manifesto, p. 32, German Ideology, pp. 17-18, Letters to Americans, p. 24 );&lt;br /&gt;-&lt;br /&gt;7. Modern industry revolutionizes educational institutions forcing the predominance of technical and vocational training (Capital, I, p. 534);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. The value of moral capital depreciation (dm) or capital obsolescence will increase ( Capital, I, pp. 282, 442);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. The working day will be prolonged (de facto even when not de jure) (Capital, I, pp 290, 445);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. The prices of raw materials will decline (Capital, I, p. 682, Capital, III, pp 126-27);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. The average rate of capital turnover will increase (Marx-Engels Correspondence p. 242; Capital, II, pp. 210, 267-68, 291);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. Market-driven population migrations, globalization and redistributions of laboring populations geographically will result in mega urban agglomerations in space and time ( Communist Manifesto, p. 15; On Britain, p. 375; Capital, II, p 288; Capital, I, p 387);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;13. Marketing functions will increasingly separate and specialize from production processes (Capital, III, pp. 330, 343);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;14. Distributions or divisions of surplus-value among classes earning property incomes (profit, interest, rents, dividends) will continually change (Capital, III, pp 424-45, 731; Economic and Philosophic Manuscripts of 1844, p. 127);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. The general rate of interest will decline (Economic and Philosophic Manuscripts of 1844, p. 127; Capital, III, pp. 424-25, 731);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;16. The rates of return to landowners will decline (Capital, III, pp. 252, 882, 897);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;17. Gaps between organic compositions of capital between agriculture and non-agriculture will narrow (Capital, III, pp. 842-43, 897; Capital, I, pp. 553-54);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;18. The production and value of production of luxury items as a percentage of total production will increase (Capital, III, p. 297);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. The rentier class will increase initially, and eventually decline and disappear with the growing wealth of the nation (Capital, III, pp. 252, 882, 897);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;20. As large capitals acquire/absorb smaller capitals, large landed estates will acquire and absorb smaller landed estates (Economic and Philosophic Manuscripts of 1844 p. 58);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. The landowning class will ultimately disappear completely (Economic and Philosophic Manuscripts p. 60);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. There is enough uncultivated land in the underdeveloped regions to ruin the large and small landowners of Europe (Specific Prediction; Capital, III, pp 842-43);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;23. With the development of steam power, trans-oceanic steamboats and the railway, the distance between England and India will be reduced to eight days and Indian will be annexed to the Western world (Specific prediction, On Britain, p. 387; Capital, II, p. 288);&lt;br /&gt;-&lt;br /&gt;Primary Predictions (Globalization and Capitalism)&lt;br /&gt;-&lt;br /&gt;1. The development of capitalism among various national economies creates integrated global markets and capitalism (Communist Manifesto, pp. 14-15; Capital, III, pp. 140, 230, 392; Marx-Engels Correspondence, p. 117; Wage Labor and Capital, pp. 44-47);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. All national economies under threats of competition and extinction will eventually adopt the capitalist mode of production as the dominant mode of production within their social formations (Communist Manifesto, pp. 14-15; Capital, III, p. 392; Ibid);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. A global division of labor among nations will develop with different geographic areas and nations playing different roles within it ( Capital, III, pp. 140, 230, 270, 278, 392);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions (From Primary Prediction No. 1)&lt;br /&gt;-&lt;br /&gt;4. Falling rates of profit in the industrialized economies will force capital migrations from relatively low to relatively high average profit rates (Capital, III, pp. 140, 279);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. The falling rate of profit in industrial economies will cause the development of specialized export industries and international commodity exchanges ( Capital, III, p. 278)&lt;a style="mso-footnote-id: ftn17" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn17" name="_ftnref17"&gt;[17]&lt;/a&gt;;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;6. The globalization of capitalism, capital migration and commodity exchange will be driven and facilitated by the development of credit institutions (Capital, I, p 688; Capital, II, p 287);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;7. Transportation and Communications systems must be continually globalized and revolutionized to increase overall profitability of international trade (Capital, I, pp 493, 688; Capital, II, p. 287);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. As consumption levels of capitalists increase, luxuries command larger portions of their budgets and shares of total social production (Capital, I, pp. 651-52);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;9. New technologies cause production &gt; consumption à new markets (Capital, III, 302);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions from Primary Prediction Number 3&lt;br /&gt;-&lt;br /&gt;10. The development of the capitalist mode of production as dominant within the social formations of the colonial nations will cause changes in relations of production and overall changes in politico-legal, social, cultural and economic institutions (Capital, I, pp. 158, 493, 792; On Britain, pp. 386-87));&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. The incessant demand for relatively secure and cheap raw materials coupled with continually revolutionized technology will drive capitalists to develop the colonial economies overall and as appendages to the metropolitan economies (Capital, I, pp. 483, 493, 782; Wage, Labor and Capital, p 16; Marx on China, pp. 3, 35, 59; Marx-Engels Correspondence, pp. 10, 229);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. The labor-skills needed to complement advanced technology will be met from labor-power surpluses of migrating unemployed in the metropolitan economies and through the development of strata of native skilled workers and professionals through education controlled and structured by the metropolitan powers ( Capital, I, p. 493; On Britain, pp. 386-90);&lt;br /&gt;-&lt;br /&gt;Specific Predictions&lt;br /&gt;-&lt;br /&gt;13. Global market expansion will end with the colonization of California and Australia, and the opening-up of Japan and China (Specific prediction, related to Primary prediction No. 1; Marx-Engels Correspondence, pp. 117-18; Marx on China, p. 4);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;14. Russia and England will always be antagonists in the East (from Primary prediction No. 2; Wage, Labor and Capital, p. 16; Marx-Engels Correspondence, p. 10);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;15. Russia will break the monopoly on Britain on China products with the completion of the Russian railway (specific prediction, related to Primary No. 2; Marx on China, p. 35; Revolution and Counter-revolution, p 5;)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;16. The U.S. would soon break the monopoly of Western Europe and England (Specific prediction related to Primary No. 2; Capital, I, p 158; Civil War in the United States, pp. 25, 66-67, 150, 225, 237; Marx-Engels Correspondence, p 14);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;17. England will successfully destroy Asiatic society and regenerate India on the foundations of Western society (Specific prediction related to No. 2; Capital, I, pp. 492-93, 782; Marx-Engels Correspondence, p. 226; Communist Manifesto, p 103; On Britain, p. 386);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;18. The railway system will lead industrial development in India (Specific prediction related to Primary No. 2; On Britain, pp. 386, 389-90)&lt;br /&gt;-&lt;br /&gt;19. Modern industry and capitalism will destroy all hereditary divisions of labor like the caste system of India and thus destroy the impediments to progress of India (Specific prediction related to Primary No. 2; On Britain, pp. 389-90);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;20. Without the acquisition of Louisiana, Missouri, and Arkansas by the U.S. slavery would have been wiped out in Virginia and elsewhere (Specific prediction related to Primary no. 2; Civil War in the United States, p. 67);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;21. The expansions and inevitable conflicts of the northern and southern regional economies of the U.S. will lead to civil war in the U.S. and The North will ultimately win ( Specific prediction related to Primary No. 2; Civil War in the United States, pp. 66-67, 81, 225-26, Selected Essays, “Moralizing Criticism” p. 145);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. Without slavery in America, America would be transformed into a patriarchal land (Specific prediction related to Primary No. 2; Marx-Engels Correspondence, p. 14);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;23. If foreign trade with Japan leads to money rents, then Japanese agriculture will be radically transformed (Specific prediction related to Primary No. 2; Capital, I, p. 158);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. The separation and independence of Ireland from England is inevitable (Specific prediction related to Primary No. 2; Marx-Engels Correspondence, pp. 224, 230);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. The English landed feudal aristocracy will be destroyed by international competition in agricultural markets (Specific prediction related to Primary No. 3; Economic and Philosophic Manuscripts of 1844, pp. 58, 60) &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. The destiny of Ireland is to become “that of an English sheep walk and cattle pasture” (Specific prediction related to Primary No. 3; Capital, I, p. 782);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;27. Once independent, Ireland will resort to protectionism (Marx-Engels Correspondence, pp. 228, 230);&lt;br /&gt;-&lt;br /&gt;Primary Predictions (Increasing Volatility, Concentration and Centralization of Production and Finance)&lt;br /&gt;-&lt;br /&gt;1. The capitalist economy generates industrial cycles [ ‘a series of periods of moderate activity, prosperity, overproduction, crisis and stagnation] are, and will be, the exclusive feature of the capitalist system (Capital, IV, p. 380 and Capital, I, p. 495) Note: Marx puts focus on overproduction and crisis with all cycles they are: multi-determined; essentially endogenous; recurring; of increasing intensity;&lt;br /&gt;-&lt;br /&gt;2. Concentration and centralization of wealth are inexorably both causes and effects of the development of capitalist production and competitive markets lead to their self-negation and non/anti-competitive nature;&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction No. 1&lt;br /&gt;-&lt;br /&gt;1. Sources of overall crisis are, and will be, various sometimes interrelated and sometimes relatively independent sub-crises: Department I (capital goods) and II (consumer goods) imbalances; credit crisis; falling-rate-of-profit crises; innovation crises; replacement crises; underconsumption crises; crises of ‘disproportions’ of capitalists and their consumption on the one hand, versus accumulation of their capitals in various branches (individual production processes aggregated into capital and consumer goods departments) on the other hand (Capital, III, p. 568); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. Increases in market capacity (levels and structures of consumption) cannot&lt;br /&gt;keep pace with increases in production capacity (Capital, III, p 286-87; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. Generation and expansion of credit makes crises more volatile and violent than in non-credit economies; (Capital, III, p. 565, 574);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. Credit must grow as a share of the total value of production and with increasing distances of markets; the development of processes of production extend credit and vice-versa, extension of credit leads to extensions of commercial and industrial operations (Capital, III, p. 565);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;5. Increasing separation of commodity production and circulation is both temporal and functional; intermediary merchants increasingly separate production from ultimate consumption and consumers, leading to periodic overproduction and excess inventories, leading to crises caused by intermediaries forced into discounting fraudulent bills of exchange, etc to clear inventories and merchants repaying their suppliers (Capital, III, p 359-60, 478-80, 569, 674);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;6. Business is always appears sound before crises set in and become evident (Capital, III, p. 569);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. Effects of mistaken banking legislation may well intensify monetary crises, but no legislation will ever abolish them (Capital, III, pp. 575, 607);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;8. Even with prolonged accidental coincidences between aggregate production and consumption, crises may still occur due to falling rates of profit below target minimum acceptable rates of profit (Capital, III, p. 283);&lt;br /&gt;-&lt;br /&gt;9. Crises may occur due to too rapid and too aggregated (bunched-up) innovations, leading to declining commodity values and prices, leading to falling rates of profit; the more rapid the new innovations, the more competition forces introduction of new machinery before the old is worn out, and, the more increasing the organic compositions of capital, the more difficult for capitalists to adjust to new sets of falling capital values and thus the more likely the crises (Capital, IV, p. 388; Capital, II, p. 194));&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;10. For a crisis to become generalized, it is sufficient that the principal articles of trade be gripped. (Capital, IV, 393);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;11. Credit aids the expansion of production [and the expansion and intensity of crises when contracted or withdrawn] by: reducing time necessary to acquire start-up capital; reducing time of circulation (time to convert commodity capital into money capital; promotion of entirely new production processes; As capitalism develops the percentage of new capital formation financed by credit increases as do the processes wholly dependent upon credit advancement (Capital, III, p. 574); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;12. Credit must grow in volume with the increasing volume of value in production, and it must grow in the matter of time with increasing distance of markets [reproduction necessitates immediate exchange, or the transformation of commodity capital into money capital, banking institutions intercede by discounting bills of exchange and extending credit to finance continuous production. (Capital, III, p. 565); development of production à credit à expansion of commercial and industrial operations (Capital, III, p. 565);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;13. Reproduction of fixed capital takes place only after full depreciation (Capital, II, p. 209) turnover of fixed capital is a function of the organic composition of capital, and for a large part of the production processes, values produced exceed values demanded on the market (only at time of replacement of fixed capital does market demand exceed supply; the moments of prosperity are to periods of crisis and stagnation in the ‘true proportion’ of 3 to 10 (Poverty of Philosophy, p. 113) and the duration of at least one aspect of the industrial cycle is determined by the timing of replacement capital (approx every 10 years or longer with increased organic composition of capital; Capital, I, p. 695; Capital, II, p. 211);&lt;br /&gt;-&lt;br /&gt;14. Real crises occur when production capacities exceed market capacities (Capital, III, p. 568); But simply increasing worker shares of product not the answer as crises generally are preceded by a period in which wages rise generally and the working class actually get a larger share of the product intended for consumption (Capital, II, p. 475-76);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;15. Rates of profit after crises and insolvencies increase (Capital, III, p. 299); In such periods capitalist strive to innovate further with ‘new machines, new and improved working methods, new combinations’ (Capital, III, p. 299); These techniques are introduced to reduce individual values below their social values, thereby creating surplus profits (Capital, III, p 303-04); A crisis is always a starting point for a large amount of new investment (Capital, II, p. 211);&lt;br /&gt;-&lt;br /&gt;16. More intense exploitation of old markets and conquest of new ones lead to general increased production (Communist Manifesto , p.17); The industrial cycle is of such a character that the same cycle must periodically reproduce itself once the first impulse has been given (Capital, III, p. 299, 574; Capital, I, p 695); Effects become causes and the varying incidents of the whole process, which always reproduces its own conditions, take on the form of periodicity (Capital, I, p 695);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;17. Capitalists get over crises by paving the way for more intense and more destructive crises and by diminishing the means by which crises are prevented (Communist Manifesto, p. 17);&lt;br /&gt;18. Crises become progressively more frequent and more violent as means of escaping crises become less and less available with contracting and over-exploited work markets and large-scale production exhausts mainsprings of credit (Wage, Labor and Capital, p. 51);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;19. All economies export and import too much (Capital, III, p. 577); As the capitalist mode of production expands, industrial cycles must become increasingly globalized and interdependent, and a crash in one country is transmitted to others;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;20. Crises and instabilities in the raw-materials-producing economies become more severe and frequent than in the manufacturing economies once the capitalist mode of production is introduced into the underdeveloped countries and swings in demand for raw materials from the manufacturing countries create even more violent swings in derived demand in the raw materials branches of production in the underdeveloped countries that are more violent than swings in commodity markets; (Capital, III, pp. 141, 144);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction No. 2&lt;br /&gt;-&lt;br /&gt;21. Centralization (concentration of capitals already formed, destruction of their individual independence, expropriation of capitalist by capitalist, transformation of many small into a few large capitals; Capital, I, p. 686) will increase with the expansion of the capitalist mode of production, driven primarily by the competitive market structure and the credit system (Wage, Labor and Capital, p. 24; Capital, I, pp 686-87);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;22. Forces of competition operate in three distinct spheres: 1) among buyers tending to inflate price; 2) among sellers tending to depress price; 3) among buyers and sellers tending to set price (Wage, Labor and Capital, p., 24); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;23. The process centralization is cumulative: Big fish more easily survive and swallow small fish and get bigger; smaller fish live on the margins and easily get swallowed; (Capital, I, p. 688); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;24. Competition was originally engendered by feudal monopoly and thus competition was originally the opposite of monopoly not monopoly the opposite of competition, so that modern monopoly is not a simple antithesis; it is, on the contrary, a true synthesis (Poverty of Philosophy, p 169); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. Centralization is inevitable in all markets, production, finance etc (Capital, III, p. 641); During crises and periods of stagnation, industrial security prices decline, individuals with money can take advantage and acquire assets and securities cheaply, when the storms are over, paper values rise again unless there are failures and swindles, thus depreciation in times of crisis is a potent force in centralizing money (Capital, III, pp. 509, 550-51, 641);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;26. Centralization à Joint-stock companies à Centralization…(Capital, III, p. 519); Functions of ownership and control separate with industrial capitalist becoming a mere manager and the owners are mere money capitalists (Capital, III, p. 516-17); “little fish are swallowed by the sharks and the lambs by the wolves (Capital, III, p. 521); The separation of private ownership from control is defined by Marx as the transition from private to social capital (Capital, III, p. 519);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;27. Rational agriculture is incompatible with the capitalist mode of production (Capital, III, p. 144);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;28. Joint stock companies produce a new aristocracy of finance, the nominal director.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Specific Predictions Related to Primary Prediction No. 1&lt;br /&gt;-&lt;br /&gt;29. England’s attempt to penetrate China will result in manufacturing capacity outstripping Chinese market capacity (Marx on China, pp. 4, 52, 62, 69);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;30. Cyclical fluctuations in England will occur every 10 years (Capital, I, p 695);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;31. If China were to legalize Opium planting, trade relations among the U.S. Australia, England, India and China would collapse and an international crisis would follow (Marx on China, p. 81);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;32. The crisis on the European continent always originates in England (Class Struggles in France, pp. 134-35);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;33. The Chinese rebellion will produce a crisis in England (Marx on China, p. 4);&lt;br /&gt;-&lt;br /&gt;Primary Predictions (Proletariat and Class struggle)&lt;br /&gt;-&lt;br /&gt;1. The misery of the proletariat increases with development of the capitalist mode of production; upward and downward movements of wage rates are subject to restraints (upper limit = f (minimum acceptable rate of profit) and lower limit = f ( size of industrial reserve army, state of economy) (Capital, I, pp. 680, 699, 707-09);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. The class struggle between the proletariat and the bourgeoisie will intensify;&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction No. 1&lt;br /&gt;-&lt;br /&gt;1. The development of the capitalist production leads to and requires the development of an industrial reserve army; higher forms of technology or increasing organic compositions of capital under conditions of constant capital outlay are labor-displacing: dIRA = K1[(c/K)2 –(c/K)1]/w; Where: K1 = total capital outlay; (c/K)1 and (c/K)2 are organic compositions of capital before and after technological change, w = prevailing wage rate and d IRA = change in IRA; with K1 constant (only first approximation), increases in organic compositions of capital displace workers from production; with accumulation of capital and substitutions of higher for lower organic compositions of capital, additional profits are forthcoming and capital accumulation from this source is: a = g(s2 – s1) where a = accumulation; g = portion of profits not consumed; (s2 – s1) = change profits (from advanced technology); Thus: d = a(v/K)2/w d = additional demand for labor; - (v/K)2 = inverse of the organic composition of capital; w = prevailing wage rate; Marx assumes both changing technology and capital accumulation and thus the industrial reserve army is stable only if K1[(c/K)2 – (c/K)1]/w – a(v/K)2/w = 0 and under this condition the prevailing wage rate remains unchanged; Where &gt; 0, IRA expands and w declines, absolute as well as relative surplus population appears and if &lt;&gt;&lt;br /&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. Entire sections of the ruling class are drawn into the ranks of the proletariat (Communist Manifesto, p. 22);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;3. As the interest rate falls with increasing capital accumulation, small investors can no longer live on incomes and are forced into the proletariat; (Wage, Labor and Capital, p. 51; Discourse on Free Trade, pp 17-18);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;4. The misery of the agricultural worker increases relatively more than that of the industrial worker (Capital, I, pp 256, 739, 740);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction Number 2&lt;br /&gt;-&lt;br /&gt;1. The proletariat increases its numbers and strength with developing class consciousness (Communist Manifesto, pp. 18-19; Marx-Engels Correspondence, p. 375);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;2. What it took capitalists centuries to establish with miserable roads, the proletariat can attain in a few years with railways: class cohesion; (Communist Manifesto, p. 21);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;3. The international proletariat emerges with the establishment of the world market; (Communist Manifesto, p. 54);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;4. The first attempt of workers to ban together takes the form of combinations; (Poverty of Philosophy, p. 194);&lt;br /&gt;-&lt;br /&gt;5. At every stage of the development of capitalism, there will develop a corresponding political organization; when the world market is established, the International will supersede all forms of political organization; (Class Struggles in France, p. 43);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;6. The international proletariat can only come into existence with the development of an international bourgeoisie; (Communist Manifesto, p. 54);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;7. Utopian socialism will pass from the proletariat to the petty bourgeoisie with the development of the world market; (Marx-Engels Correspondence, pp. 189, 315; Class Struggles in France, p. 126; Communist Manifesto, p. 49);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;8. As class struggle develops the proletariat substitutes political objectives for economic objectives; (Class Struggles in France, p. 45; Marx-Engels Correspondence, pp 318-19; Poverty of Philosophy p. 195);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;9. Unless proletariat train for political activity, they will never succeed (Ibid.);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;10. The proletariat will never get anywhere without a really bloody encounter with the ruling powers; (Marx-Engels Correspondence, p. 213);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;11. The development of the Industrial Reserve Army has both positive and adverse effects on the development of class consciousness (Communist Manifesto, p. 21);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;12. Proletariat grows in numbers, becomes more concentrated in masses, its strength grows and it feels its strength more causing a cumulative effect with feedbacks effects on further growth of the numbers of proletariat ( Communist Manifesto, p. 20);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;13. Five-stage blueprint for the evolution of the proletarian class: I) Pre-capitalist era the primary struggle between original owners of means of production and the expropriators is on a personal level between individual owner and worker; II) Factory level of little workshops run by little masters, struggles carried out at factory level; III) Concerted activity on the part of the proletariat mostly protectionism against imports and fights for status; at this level consciousness trade and locale centered; IV) Development of transport, mass communications and capitalist markets brings together workers dispersed in space and time to establish a national proletarian class; V) Globalization and internationalization of the capitalist mode of production and development of international class&lt;br /&gt;-&lt;br /&gt;14. consciousness a function of complementary modes of production and after proletariat settle matters with its own bourgeoisie (Communist Manifesto, pp. 10, 18-21, 24, 54);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;15. The modern subjugation of the worker to capital strips him of every trace of national character; Law, morality and religion are now merely bourgeois prejudices (Communist Manifesto, p. 54);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;16. The development of a system of Socialist sects and that of a real worker’s movement are inversely related and in inverse ratio to each other So long as sects are historically justified, the working class is not yet ripe for an independent historic movement. (Communist Manifesto, p. 50; Marx-Engels Correspondence, p. 315);&lt;br /&gt;-&lt;br /&gt;Specific Prediction Related to Primary Prediction No. 2&lt;br /&gt;-&lt;br /&gt;17. The English working class will never do anything decisive in England, as a class, until it separates its policy toward Ireland in the most clear-cut way from the policy of the ruling class (Marx-Engels Correspondence, pp. 278, 289-90);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;18. Unless French national chauvinism and Bonapartism among the working class is put to rest, there will be no peace between France and Germany and workers in France will not advance (Marx-Engels Correspondence, pp. 245-46);&lt;br /&gt;-&lt;br /&gt;Primary Predictions (Proletarian Revolution)&lt;br /&gt;-&lt;br /&gt;1. The proletariat cannot rise without upsetting all existing relations of production. (Communist Manifesto, p. 24; Selected Essays, p. 119);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;2. The proletarian revolution evolves from the class struggle. (Revolution and Counter-revolution, pp. 4, 8; Selected Essays, pp. 33-34, 134, 137, 161; Capital, III, p. 309);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;3. The proletariat will ultimately defeat the bourgeoisie. (Communist Manifesto, p. 25; Civil War in France, p. 62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;4. After victory, the revolutionary dictatorship of the proletariat will assume political power only to transfer the means of production from the private to the public domain and to suppress any attempt at reactionary counterrevolution. (Communist Manifesto, pp 36-37; Critique of the Gotha Programme, p. 45);&lt;br /&gt;-&lt;br /&gt;5. Following the period of dictatorship of the proletariat and abolition of the bourgeoisie, the proletariat will become the only class, and consequently the class structure will disappear and classless society emerges. (Communist Manifesto, p. 37);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;6. The State will wither away. (German Ideology, p. 59);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;7. Production under communism will be planned (Capital, III, pp 221, 521);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;8. Distribution under communism will be according to needs (Capital, II, pp. 361-62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;9. There has never been a serious revolution which had not been preceded by serious financial and commercial crises and private and public credit are the ‘thermometer’ by which the intensity of the revolution can be measured and to the same degree that they fall, the glow and generate force of the revolution rise (Marx on China, pp. 7, 9; Class Struggles In France, pp. 137-38);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction No. 2&lt;br /&gt;-&lt;br /&gt;1. The working class can never achieve independence or anything of lasting importance until the bourgeoisie has consolidated its position in political power; (Marx-Engels Correspondence, pp. 57, 290);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;2. No proletarian revolution can take place until the basic material conditions and foundations for revolution have been created with the development of capitalism; (Selected Essays, p. 137);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;3. The measures employed by proletariat to overthrow bourgeoisie will vary in different countries; (Marx on China, p 9; Communist Manifesto, pp. 36-37);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;4. Social reform will always be utopian until proletarian revolutions occur all over the world on a world-wide scale( Selected Essays, pp. 134 “Moralizing Criticism”, 161; Marx-Engels Correspondence, p. 57)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;5. The proletarian revolutions will become progressively larger; (Civil War in France, p. 62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;6. Revolutions will be initiated during periods of industrial crisis (Capital, III, p. 309; Marx on China, p. 9);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;7. When most of the population is unemployed, revolution is inevitable; (Capital, III, p. 309);&lt;br /&gt;-&lt;br /&gt;8. The intensity of the revolution will vary inversely with the magnitude of credit available; (Class Struggles in France, p. 46);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;9. During the revolution, part of the bourgeoisie will break away from the ruling class and join the proletariat; (Civil War in France, p. 62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;10. The Lumpenproletariat will join the proletariat but are essentially reactionary; (Communist Manifesto, p. 23; Class Struggles in France, pp. 50, 62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;11. The Lumpenproletariat will be ‘shaken off’ after the revolution (The Civil War in France, p. 50);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;12. The salvation of the peasant will occur only after the revolution as they are dispersed over large areas and difficult to concentrate into cohesive political action; (Civil War in France, pp. 50, 71, 120);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Secondary Predictions Related to Primary Prediction No. 4&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;13. The centralization of credit will be taken over by the state bank; (Communist Manifesto pp. 36-37);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;14. Free education will be made available to all children; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;15. Children’s factory labor will be abolished; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;16. Distinction between town and country will disappear; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;17. State industrial armies will be established;(Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;18. A state factory system will emerge; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;19. A heavy progressive tax will be imposed;(Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;20. All rights to inheritance will be abolished; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;21. Emigrant and rebel property will be confiscated; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;22. Landed property will be abolished and rents applied for public purposes; (Ibid);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;23. The transition to communism occurs as an act by people all over the world all at once; (German Ideology, p. 25);&lt;br /&gt;-&lt;br /&gt;Secondary Predictions Related to Primary Prediction No. 5&lt;br /&gt;-&lt;br /&gt;24. Individualism can only be expressed under communism; (Critique of the Gotha Program, pp. 43-44; German Ideology, p. 78);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;25. All religions will disappear; ( Capital, I, pp. 91-92);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;26. The bourgeois family will be abolished; (Communist Manifesto, p. 33);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;27. Wage labor will be abolished; (Value, Price and Profit, p. 128);&lt;br /&gt;-&lt;br /&gt;Secondary predictions related to Primary prediction No. 7&lt;br /&gt;-&lt;br /&gt;28. Society will make the allocation decisions on investment and consumption; (Capital, III, p 521);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;29. Production processes under communism will be worker’s cooperatives; (Ibid; Civil War in France, p. 44);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;30. Communist society will not be subject to cycles; (Capital, II, p. 361-62);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;31. Industrial discipline becomes superfluous; (Communist Manifesto, p 30-31)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;32. Market prices for agricultural commodities will be measured by actual social costs of production; (Capital, III, pp. 773-74);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;33. There will be a different scope for the employment of machinery; (Capital, I, p. 429);&lt;br /&gt;-&lt;br /&gt;Secondary Prediction related to primary prediction No. 2&lt;br /&gt;-&lt;br /&gt;34. Income, except for six necessary deductions for economic stability and growth will be distributed directly to productive labor; (Capital, III, p 987; Critique of the Gotha Programme, pp. 27-28);&lt;br /&gt;-&lt;br /&gt;Specific predictions related to primary prediction No. 2&lt;br /&gt;-&lt;br /&gt;35. England will be forced to join the Continental revolution (in 1885); (Marx-Engels Correspondence, p. 118);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;36. When English forces with draw from Ireland, an Irish agrarian revolution will displace the English feudal aristocracy now in power in Ireland; (Marx-Engels Correspondence, p. 288);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;37. The English revolution will get nowhere until the Irish revolution is accomplished setting the stage for destroying the power of the English landowning class and setting the conditions for proletarian revolution; (Ibid.);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;38. If the Russian revolution occurs, this may signal for European revolutions in which case Russia may join in and advance directly from primitive capitalism to communism without the tortuous developments of capitalism; (Communist Manifesto, p. 104);&lt;br /&gt;-&lt;br /&gt;39. If Russia continues the path she has followed since 1865, she will lose the finest chance ever offered by history to a nation not to undergo all the fatal vicissitudes of the capitalist regime; (Marx-Engels Correspondence, p. 353);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;40. The European revolutions (1871) will originate in the East; (Marx-Engels Correspondence, p. 349)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;41. The Franco-Prussian War will lead inevitably to a war between Germany and Russia; (Marx-Engels Correspondence, p 301);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;42. The Russo-German War will act as a midwife to the inevitable social revolution in Russia; (Marx-Engels Correspondence, p 301); 17 years earlier Marx predicted reverse with Russia lagging behind other nations in revolution (Marx-Engels Correspondence, p. 124);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;43. The proletarian revolutions in England, America and Holland may be attained by peaceful means; (Marx to 1872 Congress of the Hague Congress of the International quoted in Gottheil, op cit, p. 177);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;44. The next French revolution (after 1871) will smash the bureaucratic-military machine; (Marx-Engels Correspondence, p. 309);&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;45. The English Established Church will more readily pardon an attack on 38 of its 39 articles than on 1/39 of its income; (Capital, I, p. 15);&lt;/div&gt;&lt;br /&gt;&lt;div align="justify"&gt;END NOTES&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref1" name="_ftn1"&gt;[1]&lt;/a&gt; In classical Greek Epistemology there are two forms or bases of knowledge: Episteme or knowledge arrived at deductively via logical deductions of specific conclusions or predictions from general postulates or assumptions said to be self-evident, empirically proved or to be taken as “axiomatic”; Techne or knowledge acquired through and based on praxis, experience or empirical investigations leading addictively or inductively to supportable (but not “proved”) generalizations that may or may not form the postulates or assumptions of the Episteme. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn2" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref2" name="_ftn2"&gt;[2]&lt;/a&gt; See Lange, Oskar, “Marxian Economics and Modern Economic Theory” Review of Economic Studies, II, (June, 1935) p 193 quoted in Gottheil, Fred, “Marx’s Economic Predictions”, Northwest University Press, Evanston, Ill. 1966 p. 4; see also Boudin, Louis, “The Theoretical System of Karl Marx”, Monthly Review Press, N.Y. 1967&lt;a style="mso-footnote-id: ftn3" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref3" name="_ftn3"&gt;&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[3] According to Gottheil, Primary predictions from primary assumptions or postulates, relate to primary determinants of the economic system; Gottheil notes 17 of such: 12 from Capital, 4 from Books and Essays, 1 from Articles; secondary predictions are those that refer to particular aspects or applications of the primary postulates—determinants—and relate to politico-legal, social, cultural and economic contexts; Gottheil notes 100 of such: 59 in Capital, 32 in Books and Essays, 4 in Articles and 5 in Correspondence; Marx’s specific predictions involved no nexus with any specific generalizations or postulates but involved names, dates, events and contingencies with “If then” types of predictions; Gottheil found 36 of such: 6 in Capital, 3 in Books and Essays, 15 in Articles, and 12 in Correspondence. See Gottheil, Fred, op cit. p. 206-07; Gottheil’s study was based on various pamphlets and books such as: Capital, Vols 1-4; Contribution to the Critique of Political Economy; Critique of the Gotha Programme; The Poverty of Philosophy; The Economic and Philosophical Manuscripts 1844; Value, Price and Profit; Wage-labor and Capital; Selected Essays; The German Ideology; Class Struggles in France; The Civil War in France; The Communist Manifesto; articles such as: Revolution and Counter-revolution; Civil War in the United States; Marx on China; Marx and Engels on Britain; The Eastern Question; Revolution in Spain; The Russian Menace to Europe; correspondence was based on: Marx-Engels Selected Correspondence; Letters to Americans; Civil War in the United States; Letters to Kugelmann. In addition to that used by Gottheil, used in this compendium was also: The Collected Works of Marx and Engels, Volumes 1-55, International Publishers, N.Y. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn4" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref4" name="_ftn4"&gt;[4]&lt;/a&gt; Marx did note that the supposed independence of the worker, and freedom of contract (fictio juris of contract) and property rights for the worker as well as the capitalist, that appear to exist because of the number of enterprises that workers work in during their lives, and that they are “free” to leave jobs for others, are, in reality illusions (and thus presumably the appearance of exchanges of fair equivalents between workers and capitalists in labor-power markets would also be illusory). (Capital, I, p. 628 and Critique of the Gotha Programme, p. 41 and Marx characterized the system of wage-labor as a form of wage-slavery de facto no matter how it appears de jure. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn5" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref5" name="_ftn5"&gt;[5]&lt;/a&gt; See Gottheil, Fred M; op cit. pp 38-39&lt;a style="mso-footnote-id: ftn6" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref6" name="_ftn6"&gt;[&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;6] Gottheil, Fred M op cit. p. 40&lt;a style="mso-footnote-id: ftn7" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref7" name="_ftn7"&gt;&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[7] All innovations are labor-saving and thus those that are capital-saving are those that reduce labor-content embodied in constant capital versus those reducing labor-content embodied in variable capital or v which are said to be labor-saving; if innovations result in labor content in both c and v reduced so that the ratios of c : v remain constant, then innovation said to be neutral; Gottheil, Fred. M. Ibid, p. 40&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn8" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref8" name="_ftn8"&gt;[8]&lt;/a&gt; Gottheil (op cit) notes repeatedly that Marx uses surplus value and profit interchangeably yet this is potentially problematic in that Marx also notes that surplus-value originates in production and not exchange and that then surplus-value is further divided, into profit (industrial capitalist), interest (money or financial capitalist) and rent (landed capitalist) according to intra-class balances of power.&lt;a style="mso-footnote-id: ftn9" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref9" name="_ftn9"&gt;&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[9] Gottheil, Ibid. p. 54 &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn10" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref10" name="_ftn10"&gt;[10]&lt;/a&gt; Gottheil, Fred M op cit p. 58&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn11" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref11" name="_ftn11"&gt;[11]&lt;/a&gt; See Gottheil, Fred M. op cit p 70 for a full discussion of this issue.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn12" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref12" name="_ftn12"&gt;[12]&lt;/a&gt; In Marx’s notations he uses Cpm with commodity-capital form of capital in circulation, specifically the factor form where the employment of labor is indicated by an “l” (lower-case L) and pm indicates means of production. Gottheil, Fred M op cit, p. 72, footnote 3 (Capital, II, p. 86)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn13" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref13" name="_ftn13"&gt;[13]&lt;/a&gt; In this discussion, as in others, I am indebted to the insights and comments of Gottheil (op cit pp. 89-90)&lt;a style="mso-footnote-id: ftn14" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref14" name="_ftn14"&gt;&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[14] See Boudin, Louis B op. cit “…the world [is not] something dead and unchangeable, but…something which is continually changing…nothing is, everything becomes… existence is a constant process of change or growth…to understand things, we must understand their appearance and disappearance, their growth and decline…(p. 25)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn15" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref15" name="_ftn15"&gt;[15]&lt;/a&gt; Marx noted six factors or processes that may counteract, for a time, the tendency of the rate of profit to fall; note Marx did not speak of the “Law of Falling Rate of Profit” but the “Law of the Tendency of the Rate of Profit to Fall”: 1) increased intensity of exploitation of labor-power (via fear, increased utilization of machinery, extension of working day,); 2) depression of wages below value of labor-power; 3) cheapening of the elements of constant capital; 4) Relative overpopulation; 5) Foreign trade (commodity and capital); 6) Increases in stock capital and joint-stock companies (Capital, III, p. 275, 280, 297) Other factors influencing the rate of profit up or down are: a) changing values of variable and constant capital (Capital I, pp 408, 412, 445, 461-63, 682; Capital, III, pp. 126-27 ); b) changing values of capital turnover(Marx-Engels Correspondence, p. 242; Capital, II, pp 267-68, 291, 387); c) changing values/roles of merchant’s capital (Capital, III, pp. 330, 343,) ; d) changing distributions of surplus-value among and relative factor prices commanded by, strata of capital—landowners, merchants, industrialists, money capitalists (Capital, III, pp.252, 424-25,428, 731, 842-43, 882, 897); &lt;a style="mso-footnote-id: ftn16" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref16" name="_ftn16"&gt;&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[16] Here actually Marx says that: “:… Its [capitalist mode of production] historical mission is the ruthless development in geometrical progression of the productivity of human labor” (Capital, III, p. 308) Gottheil lists this as a prediction (geometrical progression of productivity of labor) yet Marx never noted that this mission could or would be accomplished at the geometric progression level &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a style="mso-footnote-id: ftn17" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref17" name="_ftn17"&gt;[17]&lt;/a&gt; Gottheil notes that when Marx assumes rates of surplus-value constant, then his capital-migration prediction is sound but the derivation of international commodity exchange may be faulty because the assumed higher productivities in production in the technically-advanced nations implies variability in the rate of surplus-value; If, then to correct this problem the rate of surplus-value is allowed to be variable, then the capital-migration prediction based on rate-of-profit differentials breaks down. The way around this problem, and it was implied by Marx, was to assume that capital exported to colonies was only for producing commodities in which those colonies had a productive and comparative advantage over the “advanced” economies due to climatic, location, raw resource endowments and other such factors; Marx noted that high transportation costs may offset the lower-cost-price-competition advantages of enterprises using superior techniques and thus assumed/predicted continual revolutionizing of the forces of transportation and communications Gottheil, Fred M. op cit pp. 119-20)&lt;br /&gt;-&lt;br /&gt;Bibliography&lt;br /&gt;-&lt;br /&gt;1. Gottheil, Fred M. Marx’s Economic Predictions, Northwestern University Press, Evanston, Il, 1966;&lt;br /&gt;2. Boudin, Louis The Theoretical System of Karl Marx, Monthly Review Press, N.Y. 1967;&lt;br /&gt;3. Marx, Karl Capital, A Critique of Political Economy, Vol. I: The Process of Capitalist Production Edited by Engels, Friedrich; Translated from Third German Edition by Samuel Moore and Edward Aveling; Revised according to the Fourth German Edition by Ernest Untermann, Chicago, Charles H. Kerr &amp;amp; Co. 1908; (for pagination references);&lt;br /&gt;4. Marx, Karl Capital, A Critique of Political Economy Vol. II: The Process of Circulation of Capital; Edited by Engels, Friedrich, Translated from the Second German Edition by Ernest Untermann, Chicago, Charles H. Kerr &amp;amp; Co, 1933; (for pagination references);&lt;br /&gt;5. Marx, Karl Capital, A Critique of Political Economy. Vol. III: The Process of Capitalist Production as a Whole; Edited by Engels, Friedrich; Chicago, Charles H. Kerr &amp;amp; Co, 1909;&lt;br /&gt;6. Marx, Karl Theories of Surplus-Value (Capital, Vol. IV) Translation by Bonner, G.A and Burns, Emile, N.Y. International Publishers Co. 1952 (for pagination references); Theories of Surplus-Value Parts I-III, Moscow, Progress Publishers, 1971;&lt;br /&gt;7. Marx, Karl Capital Volumes I – III, Moscow, Progress Publishers, 1978;&lt;br /&gt;8. Marx, Karl and Engels, Friedrich; Selected Works Vols. I – III; Moscow, Progress Publishers, 1970;&lt;br /&gt;9. Marx, Karl A Contribution to the Critique of Political Economy; Translated from German edition by Stone, N.I., Chicago, Charles H. Kerr &amp;amp; Co. 1940; (pagination for references);&lt;br /&gt;10. Marx, Karl The Civil War in France, N.Y. International Publishers Co. 1933; (pagination);&lt;br /&gt;11. Marx, Karl The Class Struggles in France, N.Y. International Publishers Co. 1934 (pagination);&lt;br /&gt;12. Marx, Karl, Critique of the Gotha Programme, N.Y. International Publishers Co. 1933 (pagination);&lt;br /&gt;13. Marx, Karl The Discourse on Free Trade Pocket Library on Socialism, No. 50, Chicago, Charles H. Kerr and Co. 1907 (pagination);&lt;br /&gt;14. Marx, Karl Economic and Philosophic Manuscripts of 1844, Translated by Milligan, Martin, Moscow, Foreign Languages Publishing House, 1959 (pagination);&lt;br /&gt;15. Marx, Karl Letters to Dr. Kugelmann, N.Y. International Publishers Co. 1934 (pagination);&lt;br /&gt;16. The Eighteenth Brumaire of Louis Bonaparte, N.Y. International Publishers Co. 1924 (pagination);&lt;br /&gt;17. Marx, Karl Marx on China: Articles From the N.Y. Daily Tribune, London, Lawrence and Wishart, 1951. (pagination);&lt;br /&gt;18. Marx, Karl The Poverty of Philosophy, Moscow, Foreign Languages Publishing House, 1956 (pagination);&lt;br /&gt;19. Marx, Karl Revolution and Counter-Revolution, or Germany in 1848; Edited by Eleanor Marx Aveling, London, George Allen and Unwin, 1937 (pagination);&lt;br /&gt;20. Marx, Karl Selected Essays, Translated by Stenning, H.J., N.Y. International Publishers Co. 1926 (pagination);&lt;br /&gt;21. Marx, Karl Value, Price and Profit Ed. By Eleanor Marx Aveling, Chicago, Charles H. Kerr &amp;amp; Co. 1913; (pagination);&lt;br /&gt;22. Marx, Karl Wage-labor and Capital , Moscow, Foreign Languages Publishing House, 1947 (pagination);&lt;br /&gt;23. Marx, Karl and Engels, Friedrich On Britain, Foreign Languages Publishing House, 1953 (pagination);&lt;br /&gt;24. Marx, Karl and Engels, Friedrich The Civil War in the United States, Ed, by Enmale, Richard, N.Y. International Publishers Co, 1937 (pagination)&lt;br /&gt;25. Marx, Karl and Engels, Friedrich The Communist Manifesto, Translated by Passony, Stefan, Henry Regnery Co. 1954 (pagination);&lt;br /&gt;26. Marx, Karl and Engels, Friedrich Correspondence 1846-95, a Selection with Commentary and Notes. Edited and Translated by Dona Torr. N.Y. International Publishers Co. 1936; (pagination);&lt;br /&gt;27. Marx, Karl and Engels, Friedrich The German Ideology, Parts I and III, Translated by Lough, W and Magill, C.P. Ed. Pascal, R N.Y. International Publishers Co. 1939; (pagination);&lt;br /&gt;28. Marx, Karl and Engels, Friedrich, Letters to Americans, Translated by Mins, Leonard, N.Y. International Publishers Co. 1934; (pagination);&lt;br /&gt;29. Schumpeter, Joseph Capitalism, Socialism and Democracy, N.Y. Harper and Brothers, 1942; and History of Economic Analysis, N.Y. Oxford University Press, 1954;&lt;br /&gt;30. Wolff, Richard and Resnick Stephen Economics: Marxian versus Neoclassical, Baltimore, Johns Hopkins University Press, 1987;&lt;br /&gt;31. Brewer, Anthony, Marxist Theories of Imperialism: A Critical Survey, London, Routledge and Kegan Paul, 1987 &lt;/div&gt;&lt;div align="justify"&gt;32. Untermann, Ernest, Marxisan Economics, Chicago, Charles Kerr And Co. 1927&lt;/div&gt;&lt;div align="justify"&gt;33. Boudin, Louis, The Theoretical System of Karl Marx, NY, Monthly Review Press, 1967&lt;/div&gt;&lt;div align="justify"&gt;34. Marx, Karl, Capital, Vols 1-3, London, Penguin Classics, 1976&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;/div&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-5744609586675237505?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/5744609586675237505'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/5744609586675237505'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/theoretical-system-and-predictions-of.html' title='The Theoretical System and Predictions of Karl Marx: Compendium of Assumptions and Predictions'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://2.bp.blogspot.com/_LbIlP2wfBuY/TBLd2CXVI2I/AAAAAAAAA34/X_5keaZ9kIE/s72-c/200px-Karl_Marx_001.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-4585410629144782523</id><published>2010-06-08T21:07:00.000-07:00</published><updated>2010-06-09T20:11:38.610-07:00</updated><title type='text'>Blackfoot Aikido: Ongoing Legal Case Against Genocide</title><content type='html'>&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/TA8WAdl7YCI/AAAAAAAAA3g/guCTIyL7Q54/s1600/insurgents-290.gif"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 290px; DISPLAY: block; HEIGHT: 300px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5480623468732702754" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/TA8WAdl7YCI/AAAAAAAAA3g/guCTIyL7Q54/s400/insurgents-290.gif" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;div&gt;&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/TA8V_s3I7BI/AAAAAAAAA3Y/MCngiXrKfss/s1600/Home_security_1492_TS_logo.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 341px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5480623455651556370" border="0" alt="" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/TA8V_s3I7BI/AAAAAAAAA3Y/MCngiXrKfss/s400/Home_security_1492_TS_logo.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;br /&gt;&lt;div&gt;&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/TA8V_PFl9ZI/AAAAAAAAA3Q/BNkiUsyx68k/s1600/IndianHolocaust.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 300px; DISPLAY: block; HEIGHT: 212px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5480623447659115922" border="0" alt="" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/TA8V_PFl9ZI/AAAAAAAAA3Q/BNkiUsyx68k/s400/IndianHolocaust.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;Ongoing Legal Battles: Proving the Reality of Genocide in the Courts of those Conducting it; Our Only Weapons: The Reality, International Law, Resistance, The Truth and the Courage to Tell it.&lt;/div&gt;&lt;div&gt;&lt;/div&gt;&lt;div&gt;Friday, January 21, 2005&lt;/div&gt;&lt;div&gt;-&lt;br /&gt;&lt;a name="109270199187099645"&gt;&lt;/a&gt;&lt;a href="http://aradicalblackfoot.blogspot.com/2005/01/ongoing-legal-case-in-alberta-most.html"&gt;Ongoing Legal Case in Alberta (most recent to past) Blackfoot vs Canadian Government: National Sovereignty/Existence vs Genocide&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Dear Mr. Sandstrom and Brooks:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Here are two documents with some arguments and legal authorities that we plan to introduce at trial. As I have noted, most of our arguments, and citations for legal authority/precedent, are embodied in the documents already in your possession: Blackfoot Indictment of U.S. and Canadian Governments For Genocide (already accepted into the Court record); previous submissions of specific arguments to be advanced at trial; endorsement of proposed arguments by the National Lawyer's Guild; facsimiles of newspaper articles on sterilization and medical experimentation on First Nations persons. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I have asked Bella to make copies of any Tribal documents or personal family documents and get them to Mr. Brooks immediately and I hope that they have been delivered. The bulk of our submissions will be through expert testimonies of the witnesses that we gave notice would be called to testify. Finally, as it is our Way, even when in Courts that operate on principles not consistent with our Ways, we welcome full and open debate of all the relevant issues; we do not believe in using procedure or contrived scopes of direct examination to limit or contrive possible scopes and content of rebuttal and if you do need more time to deal with the Treaty 7 arguments, and ask for further continuance beyond the two days allotted for this phase of the trial, we will accommodate whatever is required to ensure that the Crown has ample time to properly answer any and all submissions and arguments by us to your satisfaction. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;We only ask that you keep in mind the costs for me to travel to Alberta and that Bella is being represented--through no fault of her own or mine and not for financial reasons--by someone who is not a lawyer and not familiar with some of the procedures etc.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your consideration.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James M. Craven&lt;/div&gt;&lt;div align="justify"&gt;Unpaid agent for the pro se defense of Bella Yellow Horn&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;THE HONORABLE JUDGE RONALD A. JACOBSON&lt;/div&gt;&lt;div align="justify"&gt;The Provincial Court of Alberta&lt;/div&gt;&lt;div align="justify"&gt;December 10, 2003&lt;/div&gt;&lt;div align="justify"&gt;Kurt Sandstrom, Barrister and Solicitor&lt;/div&gt;&lt;div align="justify"&gt;Alberta Justice Oboriginal [sic?] Law Team 9th Floor, &lt;/div&gt;&lt;div align="justify"&gt;Peace Hills Trust Tower10011- 109 Street&lt;/div&gt;&lt;div align="justify"&gt;Edmonton, AlbertaT5J 3S8&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;RE: R. v. Bella Yellowhorn-Trial set for January 22nd and 23rd, 2004&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Your letter of December 4, 2003 is acknowledged. Together with this reply it will be attached to the Clerk's file. Mr. Craven's proposed intention to challenge the constitutionality of Treaty 7 creates an entirely new issue. Subject to submissions, it would appear that either a supplementary or entirely revised constitutional notice must be prepared and properly served on all concerned--including the Government of Canada.When that is done, should we even attempt to have the trial proceed on January 22 and 23, 2004?Or should there be another pre-trial conference to determine what adequate time is required in order to properly complete the trial of all issues at a later date? Split trials should be avoided whenever reasonably proper!This matter can be discussed in a telephone conference call. Either Assistant Chief Judge J.A. Wood, or myself, or both, can participate.This matter should not be delayed.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yours truly,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;R.A. Jacobson (signed)RAJ/&lt;/div&gt;&lt;div align="justify"&gt;bjscc: James M. Craven, Clark College, Eric Brooks, Crown Prosecutor&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven,&lt;/div&gt;&lt;div align="justify"&gt;This will acknowledge your email of November 16, 2003, which I received on that date. Thank you for providing additional information concerning your case.I was unable to discuss this with Mr. Brooks until today. We will not be contacting your witnesses, but we do appreciate the invitation to do so by conference call. I can also advise that I noticed your potential challenge to Treaty 7 in your email on October 12. As this was the first time I understood you to be challenging Treaty 7, I immediately contacted our expert on treaty documents and was advised by him on October 14, 2003 that he would be unavailable to testify on January 22 and 23. He will be able to testify in April, May or June however. Therefore, I am going to write the Court and advise that if credible evidence concerning the validity of Treaty 7 is advanced at trial, I will need to request an adjournment. I will send you a copy of that correspondence.In the meantime, I renew my request for you to send documents to me which you intend to file in evidence. I understand that you are working on that. It will greatly simplify our task on January 22 and 23.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you.&lt;/div&gt;&lt;div align="justify"&gt;Kurt Sandstrom,Barrister and Solicitor&lt;/div&gt;&lt;div align="justify"&gt;Alberta JusticeConstitutional and Aboriginal Law9 th Floor, Peace Hills Trust Tower,10011-109 StreetEdmonton, Alberta, Canada T5J 3S8Tel: (780) 422-4160Fax: (780) 427-1230&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Mr. Sandstrom,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;This is to acknowledge receipt of and to respond to your most recent email and letter to Judge Jacobson dated December 4, 2003.This may be the first time you understood that we would be challenging the validity and applicability of Treaty 7, but it is most certainly not the first time we made clear our intent to advance this dimsension of our overall argument. Attached is our whole file on this case from the earliest letter to the Court by me onward. For example, from my letter of Feb. 10, 2003 to the Court and also sent to you and others involved in this case:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;a)That there is indeed a real and viable Blackfoot Nation still in existence despite past and present attempts at its extermination or elimination and that Bella Yellowhorn is indeed a member of that Nation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;b)That the existence or non-existence of any nation is not in any way dependent upon recognition or non-recognition by other recognized nations (particularly those such as Canada or the U.S. that have acquired and built material interests in denying the existence and legitimacy-and derivative rights of independence, self-determination and sovereignty-of First Nations and/or other nations); &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;c) the existence, legitimacy-and derivative rights-of all nations are a matter of "facts on the ground" and international law as were it not so, any nation could summarily extinguish another nation (genocide) through simple non-recognition and applied power disparities;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;d)Although some Blackfoot deny that Treaty 7 was actually signed by the principal chiefs of the Blackfoot, the Government of Canada does assert Treaty 7 to be binding and has built a whole system of supposed property rights and material interests upon that and other Treaties. According to the 1969 Vienna Convention on the Law of Treaties, recognized by both the U.S. and Canadian Supreme Courts as the "definitive international law on treaties and treaty relations", only sovereign nations can sign treaties and in doing so, each party explicitly and tacitly recognizes the other treating party as a co-equal and legitimate representative of a whole People being bound by that Treaty. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;e) In recognizing the legitimacy of a treating party, each party is also tacitly, if not explicitly, recognizing-or not calling into question-the legitimacy of the mechanisms and institutions through which the representatives and government of the treating parties were selected and the traditional Blackfoot mechanisms and institutions through which the alleged Blackfoot Chiefs and signatories of Treaty 7 were selected remain in force among traditional Blackfoot despite any impositions of alternative political forms (Tribal Councils) under the Indian Act;And from my letter of April 12, 2003 to the Court and sent to you and other parties involved in this case:3) Any purported obligations of Blackfoot under Treaty 7 that serve to denationalize or cause Blackfoot to surrender to all laws and authority of the Crown are contradictory and in violation of international law and those aspects of the Canadian Constitution dealing with genocide. Only sovereign nations may sign treaties and according to the Vienna Convention on Treaties, which the U.S. and Canadian Supreme Courts have recognized as definitive international law on treaties, each treating partner recognizes--or at least does not call into question--the authority, co-equal status and systems for determining government/leadership of the other. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;f) The cited language of Treaty 7, dealing with Blackfoot allegedly agreeing to become loyal subjects of Her Majesty the Queen and all of her laws, if accepted, would mean that Blackfoot, as a sovereign nation, would be signing a treaty whose terms and language served to extinguish the very sovereign nation that had the authority and standing to sign--and continue--such a treaty; no nation, especially Blackfoot, would ever sign such a treaty that would be illegal and non-binding under international law and basic contract law. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;g) These asserted obligations under Treaty 7, along with Treaty 7 itself, are simply not valid under even Canadian Law. Further, Treaty 7 was not fully and finally ratified by the Crown in London as required prior to 1947. Further, according to the notes of Father Constantine Scullen, representative of the Crown to attest to the signatures of the Blackfoot Chiefs on Treaty 7, none of the Chiefs would make a mark with their own hand nor would they even touch the pen used to make the mark and therefore Treaty 7 and any purported allegiances or obligations of Indigenous Peoples under Treaty 7 would not exist, eventhough the Government of Canada has asserted Treaty 7 to be binding and has built a whole system of "private" property, interests and purported property rights under its provisions.and from my letter to Mr. Lambrecht of Sept. 10, 2003 (also forwarded to you):&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;h) Further, we argue that Treaty 7 was never signed and/or never a full and binding Treaty and thus any purported obligations of Blackfoot under Treaty 7 to become "loyal subjects" of the Crown and bound by all Canadian laws do not exist as a matter of international law;Further, we argue that although Canada claims that Treaty 7 was properly signed and valid, although we dispute this claim with historical evidence, Canada has nonetheless built up whole system of material interests and purported property rights based upon the assumption of the validity of Treaty 7; under international law, specifically the Vienna Convention on Treaties, only nations sign, continue and enforce treaties and each treating partner when signing a treaty, recognizes the co-equal status and systems of government (producing the leadership having the standing and authority to sign a treaty and bind a whole population to its terms) of the other treating partner(s) and thus there is ample legal authority for the continued existence of the Blackfoot Nation with its own right to independence, self-determination, sovereignty and traditional government and mechanisms for selecting the composition of that government. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;i) Thus, Bella Yellow Horn, a member of a sovereign Blackfoot Nation, and all members of the Blackfoot Nation, may travel throughout Canadian lands with the same status and obligations (vis-a-vis licensing and insurance) as any other motorist from another sovereign nation.We have made it clear that although we believe that Treaty 7 was never signed by the Blackfoot Chiefs (according to the diary of Fr. Scullen charged with being a witness to the signatures of the Blackfoot Chiefs), was never ratified by the Crown, was put to the Blackfoot Chiefs with coercive and unconscionable force and has been violated over and over by the Canadian Government, our central argument is that Treaty 7 is self-impeaching and internally self-negating as its central terms call for dissolution of one of the sovereign nations that must remain in existence and sovereign to have the standing, authority and capabilities to sign and keep the terms of such a Treaty. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;We have advanced this argument over and over clearly. I am therefore at a loss to understand why any further delays would be necessary.I have asked Bella to quickly put together any documents we may use to advance our case (She is in possession of some family and other documents) to send them to you. And I reiterate that if you choose to depose our potential witnesses, whose names, telephone numbers and likely testimonies and arguments have been given, I would only ask that I be allowed to stand or listen in and participate if necessary.I would also ask that you forward to us the names, telephone numbers, likely testimonies, backgrounds of any potential witnesses along with any documents that you might plan to introduce. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Also, I must ask again that we get the name of the person who filed the complaint with the Lethbridge Police that led to Bella Yellow Horn being stopped and subsequently charged (as was promised) and the chain of custody and present whereabouts of her van that was seized.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your assistance and patience. Would you please forward this to Judge Jacobson whose email address I do not have?&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James Craven(Omahkohkiaayo i'poyi)&lt;/div&gt;&lt;div align="justify"&gt;cc. Judge Jacobson&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;This will acknowledge your communication below my email of October 12, 2003. By copy of this email, I am forwarding your communication to Eric Brooks and Kirk Lambrecht.I appreciate your advice as to your proposed witnesses. I also understand that you are still working on which documents you wish to produce at the trial of January 22 and 23. Unless you can provide me a clear indication of what the substance of your proposed Elder testimony will be, the best way to deal with this will be to have the Elders proceed with their testimony, and then adjourn in order to have these historical facts, and the documents relied on by you, examined by an expert for the Crown.You should forward to me the documents upon which you will be seeking to file in evidence before the Court. I can then advise you whether the Crown will consent to the filing of these documents, or whether you must prove them in the normal way. This may entail getting certified copies, or producing a witness who has knowledge about these documents. If I know what the document is and know it is authentic, I will in most likelihood consent to its admission and can save you these steps. Even though you may have provided some of these documents to the Crown and the Court, please send me a complete bundle with each document labeled (either under a tab number, or a document number on the first page of the document). I will then review each document and advise you which can go into evidence by consent, and which you will have to prove.I will leave it to Mr. Brooks to determine whether it would be appropriate to communicate any of your comments to the court. You are certainly free to communicate with the Court directly, I would only ask that you send me a copy of that communication.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yours truly,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Kurt Sandstrom Barrister and Solicitor,&lt;/div&gt;&lt;div align="justify"&gt;Alberta JusticeConstitutional and Aboriginal Law&lt;/div&gt;&lt;div align="justify"&gt;9th Floor, Peace Hills Trust Tower,10011-109 StreetEdmonton, Alberta, Canada T5J 3S8&lt;/div&gt;&lt;div align="justify"&gt;Tel: (780) 422-4160Fax: (780) 427-1230&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Mr. Sandstrom:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thanks for your response and helping with outlining the procedures involved in submissions of documentary evidence and proposed lines of argument. In this regard, below is an example of some of the evidence on the genocidal nature of the Indian Act and the right/survival imperative of First Nations Peoples not to recognize or obey it. For the record, this applies specifically to Bella Yellow Horn in particular as she was slated to be sterilized under the color of the Indian Act and Alberta Sterilization Act and was only saved from sterilization with some last-minute legal intervention. Had she recognized and--complied with--her obligations under these Acts, which were in violation of Article II (d) of the 1948 UN Convention on Genocide to which Canada is a signatory, her present children would simply not exist and the Blackfoot Nation would have been deprived of some of its citizens. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Further, Bella and other members of her family were used for medical experimentation in the Indian Residential Schools, again under the color of "law" and supposed "obligations" under--and to comply with--the Indian Act which were in violation of Articles II (a), (b), (c),(d) and (e) of the 1948 UN Convention on Genocide (see below).&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;We are attempting to comply with all your discovery and other rights prior to trial. We do not have the resources available to us that the Crown has and therefore our responses might not be all that you are used to. In any case, we have made good-faith attempts to comply with all our pre-trial obligations and ask that our constraints are understood. Those potential witnesses to be called all have specialized and personal knowledge/experiences with the genocidal nature and consequences of the Indian Act and/or Treaty 7 "obligations" past and present and will show that any First Nations person recognizing/obeying the Indian Act would be aiding and abetting their own extermination and that of their own People, and thus would themselves be complicit in genocide, and in violation of several articles of the 1948 UN Convention on Genocide; and those who refuse to recognize or comply with the Indian Act are objectively acting as agents of the higher or "supreme law" of Canada.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your assistance.&lt;/div&gt;&lt;div align="justify"&gt;James M. Craven(Omahkohkiaayo i' poyi)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Alberta sterilization victims also used as guinea pigs Revelation comes as 40 victims win $4M settlement&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Marina Jimenez National Post10/28/98&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;As many as 100 of the children at the centre of the Alberta sterilization scandal of the late 1960s and early 1970s were also used as guinea pigs in drug trials, the National Post has learned. The children lived at the Provincial Training School in Red Deer. Some were wards of the province and others were placed in the school by their parents, who did not consent to the sterilization or medical experimentation, which included the administration of powerful steroids and anti-psychotic drugs. Experts say one of the drugs used, the anabolic steroid norbolethone, is illegal today. The anti-psychotic tranquilizer haloperidol was also used. Its effect on children is said to be akin to hitting them over the head with a sledge hammer.Yesterday, 40 people who were sterilized against their will reached a settlement totalling $4-million with the government of Alberta. This brings to 540 the number of people who have settled with the province for being sterilized under the now-defunct Alberta Sterilization Act, which was in effect from 1928 to 1972. The operations were ordered by Alberta's eugenics board to prevent the mentally disabled from passing on their defects to offspring. Lawyers say they want more money from the government for victims who had to endure being tested with powerful drugs in addition to being sterilized. "Invading people's rights in the form of unauthorized research and taking advantage of people who couldn't look after themselves is the kind of thing that courts award punitive damages for," said Jon Faulds, an Edmonton lawyer representing 109 sterilization victims still negotiating settlements.Allan Garber, another Edmonton lawyer acting for the former training school residents, said they were treated like cattle. "The experimental drug treatment only compounds the evil that was done to our clients." Dr. Leonard J. LeVann, medical superintendent from 1949 to 1974 at the Red Deer school, published the results of his drug experiments in scholarly journals, which were recently turned over to lawyers for the victims. The articles show that Dr. LeVann, who is dead, gave 100 undersized children the anabolic steroid norbolethone over a 12-month period in 1971. The drug -- now illegal in Canada -- made the children gain weight. But it also produced some side effects: the genitals of two boys increased in size and one girl's voice deepened."The treatment of retarded growth in children with anabolic agents is controversial," he wrote in the September 1971 edition of the International Journal of Clinical Pharmacology, Therapy and Toxicology. Nonetheless, he called the drug study "entirely satisfactory."Norbolethone is illegal today because of its powerful side effects - damage to the liver and negative psychological symptoms. Anabolic steroids can also increase aggressive sexual behaviour in men and cause secondary sexual characteristics, for example, facial hair in girls. Dr. LeVann also gave 100 children haloperidol, an anti-psychotic tranquilizer, over a period of 40 days in the late 1960s to counter hyperactivity and excitability. Dr. Louis Pagliaro, a professor of educational psychology and the associate director of the substance abusology research unit at the University of Alberta, says haloperidol "would essentially knock(children) out. (It) generally decreases people's ability to learn and adversely affects memory and behaviour." Dr. LeVann's studies are "full of half-truths, assumptions and by today's standards, lack proper research methodology," says Dr. Pagliaro.About 2,800 people were sterilized in Alberta before the Sexual Sterilization Act was finally repealed. Documents now show that many of the people sterilized were not mentally disabled.In 1996, the Alberta Court of Queen's Bench ordered the provincial government to pay Leilani Muirer $740,000 for being wrongfully confined in the Red Deer school and sterilized. Her landmark victory opened a floodgate of litigation. In June, 1998, the government agreed to pay 500 more sterilization claimants up to $100,000. Many continue to live in the Red Deer facility, known today as the Michener Centre. The province has spent $54 million on settlements to date. The compensation deal for the sterilizaiton victims announced yesterday, much the same as those announced last June, gives claimants $75,000 now and another $25,000 after three years, if they are then living outside institutions.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The Globe and Mail, Wednesday, April 26, 2000 Native children deprived of care Preventive dentistry banned during study By Michael Valpy&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Federal-government doctors withheld specialized dental care for children in eight aboriginal residential schools in the 1940s and 1950s to see what the effect would be on their teeth and overall health. The specialized dental care was withheld as part of a five-year study of aboriginal children's nutrition. The study's director, Dr. L. B. Pett, the retired chief of the nutrition division of the Department of National Health and Welfare, said parental consent was not obtained for the study. Instead, the government obtained permission from the school principals.A letter dated Oct. 3, 1949, from Dr. H. K. Brown, chief of the department's dental health division, said: "It is important that during the period of this study, no specialized, over-all type of dental service should be provided, such as the use of sodium fluoride, dental prophylaxis [professional cleaning] or even urea compounds [used in treatment of decay]."In this study dental caries [decay] and gingivitis [gum disease] are both important factors in assessing nutritional status. The caries index could be upset by such specialized dental measures as those referred to above.The letter -- referring specifically to the United Church school in Port Alberni, B.C. -- also said that preventive dental treatment would make the study of "questionable value" in measuring vitamin C deficiency.Fillings and extractions were to continue.Professor Gary Accursi of the University of Toronto's Faculty of Dentistry said yesterday that a dental-ethics committee would be unlikely to approve such a trial today. He said he did not know whether it would have passed the ethical standards of the time.A Toronto medical expert on clinical trials, who asked not to be identified, said the letter, on its face, implied clearly that the Canadian government was prepared to let aboriginal children suffer the effects of poor nutrition without intervention so long as its study was not adulterated.Dr. Pett, in an interview yesterday, put the study, which he said was conducted at eight schools, in a different context. It was carried out, he said, to improve nutrition for aboriginal children and provide information on good nutrition for their parents.Fluoride treatment, now considered one of history's greatest public-health advances, was then in its infancy. The first fluoride trials in Canada, in Stratford and Brantford, were being carried out at the time of the study. The only thing that bothered Dr. Pett about the study from an ethical point of view, he said, was the absence of parental consent. "Parental consent was always an issue," he said. "It was hard to contact them. So many were in the bush."So the study went ahead, he said, with the consent of the school principals, who were given more-or-less legal status as in loco parentis (in the place of a parent).The records of the nutritional study were found in Ottawa's National Archives by freelance writer David Napier, commissioned by the Anglican Journal, the newspaper of the Anglican Church of Canada, to inquire into aboriginal residential schools. The Journal will publish his article, the result of eight months research, later this month.The schools were operated by churches in a contractual relationship with the federal government for more than a century.Children as young as five were taken away from their families and placed in the schools. They were ordered not to use their mother tongue and to set aside their cultural values and practices.The Roman Catholic, Anglican and United Churches, along with the federal government, face hundreds of millions of dollars in lawsuits from nearly 6,000 former students.Copyright 2000 The Globe and Mail4160Fax: (780) 427-1230&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven,&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;I understand from the Prosecutors' Office that he continuation date for this trial has been set for January 22 and 23, 2004 in front of Judge Jacobson. I have been asked to ensure you are informed of this date. We have Canada's letter dated September 23, 2003 to you indicating they will not intervene in the trial at this stage. It would help me prepare if you could, by the end of November, or earlier, advise me of the following information: 1. Will you be calling witnesses, or do you intend on just making the arguments you outline in your correspondence to the Court, Canada, or us? 2. If you are calling witnesses, who will they be? 3. What is the brief substance of their testimony? 4. Will you be filing any documents (there are strict rules on how this is done for some documents)? If you want to file documents, it would help me to know which ones you intend to file. I can help you on the proper procedure for filing these documents.If you have any questions, please let me know.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;Kurt Sandstrom Barrister and SolicitorAlberta Justice Constitutional and Aboriginal Law&lt;/div&gt;&lt;div align="justify"&gt;9th Floor, Peace Hills Trust Tower,10011-109 Street Edmonton, Alberta, Canada T5J 3S8&lt;/div&gt;&lt;div align="justify"&gt;Tel: (780) 422-4160Fax: (780) 427-1230&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Mr. Sandstom,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thanks for the note and I apologize for the delay in writing back as I am totally swamped with work and did not want to reply in a cursory or superficial way.First of all, I did get notice from Mr. Lambrecht that the Canadian Federal Government would not be intervening at this stage but did want to be notified in the event of an appeal and perhaps would step in at that stage. I do also need to contact Mr. Lambrecht and perhaps this note to you will suffice for his purposes as well so please feel free to share this with him and whomever else is concerned with this matter including Judge Jacobson, Mr. Falconer, Mr. Brooks and any others.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;As you know our defense involves several dimensions. I do apologize for any delays caused by our not having had full documentation available, but, as our resources are meager relative to those of the Canadian Federal and Alberta Governments, and as I am forced to rely on others to take care of some matters inside Alberta, and as I am assisting a pro se defense without legal assistance in Alberta, such problems are likely and unintended. For the record, we Blackfoot do not have or practice any of the concepts and practices so typical of the adversarial eurocentric court systems that have been routinely used to facilitate and give legal cover to genocide and genocide cover-up in Canada: excessive ritual and protocol; jury/judge/venue shopping; contrived and shaped scopes/content of direct examinations in order to limit and shape possible scopes/content of redirect examinations; not asking questions to which we do not already have an answer; attempting to magnify the exculpatory and minimize the inculpatory in our own case while attempting to minimize the exculpatory and maximize the inculpatory of the opponent's case; obstruction of discovery and use of discovery to cause prohibitive legal costs and obstruct justice; paid--dueling--"expert witnesses" whose formal credentials give their opinions "probative value" and the status of "evidence"; etc.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;As you probably noted, not only did we give notice of intent to raise Constitutional issues (I am still exploring getting documentation that notice was indeed sent from the Peigan Band Reserch Department on April 22 as was represented to me to have been done) but we gave notice of the specific content of those arguments. These are indeed the arguments we will be raising. Further, we provided a letter of endorsement from the National Lawyer's Guild, composed of Canadian as well as U.S. lawyers and many of them considered experts in international law, that was intended to show that the arguments that we proposed to advance were not frivolous or a frivolous use of the Court's time--in terms of available supporting evidence, reasoning and international law. We asked the NLG only to support our contention that our arguments were not frivolous without necessarily adopting or endorsing them, but the NLG came back, to our surprise, actually endorsing and adopting those arguments.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;First, I will be calling Bella Yellow Horn back to the stand to clear up some issues from the previous phase and to set up the next phase of the trial. Specifically, we will be exploring her state of mind at the time she was stopped in Lethbridge and her reasons for asserting the existence and sovereignty of the Blackfoot Nation and not being bound by the Indian Act or any asserted obligations under Treaty 7. We will also explore how she was supposed to document what papers she did or didn't have in her possession at the time of being stopped, and what insurance she did or did not have (as a matter of personal choice), when her van was taken to a place she was not made aware of and summarily sold without her knowledge and before her even being convicted, to a party still unknown to her.Next, we will call the following witnesses: Mr. John Chief Moon (Thunder Pipe Carrier and principal spiritual leader of the Kainai Blackfoot); Mr. George Yellow Horn (one of the Hereditary Chiefs of the Apatohsipiikani Blackfoot); Elizabeth Yellow horn (principle Beaver Bundle Holder and spiritual leader of the Apatohsipiikani Blackfoot) and Mr. Floyd Many Fingers (respected Elder of the Kainai Blackfoot). These witnesses, in addition to being descendants some of the Chiefs who allegedly signed Treaty 7 and recognized carriers of the oral histories of the events surrounding the alleged signing of Treaty 7, are also very "expert" on the conditions of life on the Blackfoot Reserves. We believe that their testimonies will materially add to our arguments that: &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;a) the scope and content of the Indian Act and alleged obligations under Treaty 7 are genocidal per se and, in addition, have produced conditions of life that amount to genocide as defined in Article II of the 1948 UN Convention on Genocide ratified by Canada in 1953 and thus part of the supreme law of Canada; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;b) these genocidal conditions flow inexorably (and foreseeably for anyone with an IQ over that of a tomato and a semblance of a heart and a conscience) from the content and applications of the Indian Act and Treaty 7; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;c) the Canadian and Alberta Governments have been well aware (and have been repeatedly made well aware)of these genocidal conditions and their effects and continue to refuse to ameliorate them and continue to attempt to cover them up; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;d) in the context of extreme poverty, isolated reserves, no public transport and meager incomes given under the Indian Act, any Blackfoot obeying the requirement to possess highly expensive insurance as a condition of driving is in essence aiding and abetting his/her own extermination and that of his/her People; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;e) by any test or criteria under international law that defines a nation, the same tests and criteria defining Canada as a nation, there survives and remains a Blackfoot Nation that has, as fundamental rights flowing from its status and reality as a nation, the rights to independence, sovereignty, self-determination, recognition and not to be exterminated or forcibly assimilated into another nation; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;f) although we argue that Treaty 7 was never signed, and has been broken over and over by the Canadian and Alberta governments, nevertheless, the Canadian and Alberta governments have built up a whole system of property and purported property rights predicated on Treaty 7 and in doing so were bound to recognize not only the authority and standing of the Chiefs who allegedly signed Treaty 7, but also the traditional Blackfoot Ways and systems of government that selected these Chiefs as well as the existence and sovereignty of the Blackfoot Nation as only sovereign nations form and sign treaties and in doing so recognize treating partners and co-equals at least in terms of authority and standing to form and keep treaties; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;g) Blackfoot may choose to become or recognized as Canadian citizens but no Blackfoot may be forced to assimilate or forced to take Canadian citizenship and undertake the obligations of Canadian citizenship as this amounts to forced assimilation, a form and tactic of genocide; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;h) Blackfoot are rountinely subject to "racial targeting and profiling" by Lethbridge police and routinely have their vehicles seized and sold without due process such that they are deprived of mobility from--and are indeed locked into--conditions on Reserves that can only be properly described as genocidal.In addition to the paper by Tai Helton that I passed on to you, and in addition to the documents already submitted to the Court, we will be submitting copies of the diaries of Father Constantine Scullen, charged by The Crown with witnessing the signatures of the Blackfoot Chiefs who supposedly signed Treaty 7, in which he stated that none of the Chiefs would sign or even touch the pen used to sign; we will also be submitting some statistics, from Canadian Government sources, that document some of the genocidal conditions, realities and trends on the Blackfoot Reserves today.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;That is as much as I can give you at this moment. In the next couple of weeks I will be able to give you further elaboration on our proposed arguments and witnesses. If you wish further elaboration on some of our arguments, you can go to &lt;a href="http://www.chgs.umn.edu/"&gt;http://www.chgs.umn.edu/&lt;/a&gt; and under the section "Histories, Narratives and Documents" you will find some Blackfoot documents that will give you some of the types of arguments and supporting evidence we plan to introduce. I will also be asking about possible incomplete transcripts from previous Court sessions. For example, at the May 20th session, at which I was not in attendance, Bella represented to me that the Judge formally inquired of the police officers present where her van was and asked those police to advise her where the van was and its status. That discussion is not on the official transcript I have of that session. I am interested in that issue particularly in view of the testimony of the arresting officer that he could only "guess" that her van had been sold and that he had never explicitly told Bella that it had indeed been sold. Further, I was promised by Mr. Brooks, in a conversation with Bella present, when Bella asked the name of the person who had made the phone call that led to her being stopped, Mr. Brooks said that I must request that name and I have formally requested it previously and am now formally requesting it again. Further, I may have to call Mr. Scott as he was present in his office when that officer stated that the van had indeed been sold and made no mention of "guessing" that it had been sold. And yes, any assistance that you can give us in the spirit of being an "Officer of the Court" and in the interest of justice would be welcomed.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I hope that this answers at least some of your questions. If you require any further elaboration please do not hestitate to contact me. For the record, although Blackfoot are generally poor, we are communalists and come to the assistance of each other as a matter of our Ways. If we could have found a lawyer to take this case we would have put out an appeal for money and would have gotten sufficent funds to hire a lwayer. We are not trying to do this "on the cheap." We do not practice, as is celebrated and taught in Canadian capitalism and society, rat-race individualism, dog-eat-dog competition, selfishness, etc. We approached lawyers who agreed that our constitutional arguments were compelling as a matter of evidence, reasoning and law but were afraid to advance them in a Canadian Court out of fear of retribution in future cases and legal practice in Alberta. Others feared they might be labelled "radicals" for any association with this case (the word "radical" as you know comes from the Latin root "radix" or root and we regard a radical as someone seeking to get to the "root" of the issues at hand).&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;And finally, and please pass this on to Judge Jacobson, he can instruct us and make rulings that we will obey, although we may make "exceptions" for the Court record, without resorting to abusive levels and tones of speech and continual references to supposed "incompetence" on my part. It is out of respect to the honorable actions and rulings on his part that I do not challenge his continuing to sit on this case for cause of demonstrated animus and disrespect in the last session. I am proud to be an "unpaid agent" of exposing genocide and genocide cover-up rather than a paid--and perhaps very "competent"--agent of genocide and its cover-up as some lawyers and judges have demonstrated themselves to be historically and in the present in Canada [and this is not necessarily an implied or covert reference to His Honor].&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thanks for your consideration, patience and any assistance in the interest of justice.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,James M. Craven; Blackfoot name: Omahkohkiaayo i' poyi&lt;/div&gt;&lt;div align="justify"&gt;Acting as unpaid agent in the pro se defense of Balla Yellow Horn&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;Cc. Judge Jacobson ; Mr. Falconer; Mr. Brooks; Mr. Lambrecht; Mr. Scott; Department of JusticeCanadaMinistère de la JusticeCanada Edmonton Regional Office211 Bank of Montreal Bldg10199 - 101 Street Edmonton, Alberta T5J 3Y4 Bureau régional d'EdmontonEdifice de la Banque de Montréal 211 rue 101 - 10199Edmonton, AlbertaT5J 3Y4Telephone: Facsimile:Internet:&lt;a name="DOJPhoneNo"&gt;&lt;/a&gt;780 495 2968&lt;a name="DOJFaxNo"&gt;&lt;/a&gt;780 495 5835&lt;a name="InternetAddress"&gt;&lt;/a&gt;kirk.lambrecht@justice.gc.caOur File:Notre dossier:&lt;a name="DOJFileNo"&gt;&lt;/a&gt;15-94081Your File:Votre dossier:&lt;a name="Date"&gt;&lt;/a&gt;September 23, 2003&lt;a name="VIA"&gt;&lt;/a&gt;By Fax &lt;a name="ADDRESSEEFAX"&gt;&lt;/a&gt;(360) 992-2863&lt;a name="Address"&gt;&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Clark College1800 East McLaughlin Blvd.Vancouver, Washington98663&lt;/div&gt;&lt;div align="justify"&gt;Attention: &lt;a name="AddresseeName"&gt;&lt;/a&gt;James Craven&lt;a name="Salutation"&gt;&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Sir:&lt;/div&gt;&lt;div align="justify"&gt;RE: &lt;a name="Subject"&gt;&lt;/a&gt;R. v. Yellowhorn&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;a name="Body"&gt;&lt;/a&gt;I wish to advise that the Attorney General of Canada does not intend to intervene at this stage of the proceedings. I would however like to be advised of the decision on that issue and to be served with notice of any appeal that is taken therefrom.&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yours truly,&lt;a name="Sender"&gt;&lt;/a&gt;Kirk N. Lambrecht Q.C.&lt;a name="Title"&gt;&lt;/a&gt;General Counsel Civil Litigation and Advisory Services&lt;/div&gt;&lt;div align="justify"&gt;Cc: Alberta Attorney General (Via Fax 427-0401)Attention: Kurt SandstromCrown Prosecutor's Office (Via Fax 403-381-5760)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Attention: Gordon Falconer&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Lambrecht&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your patience and assistance. Part of the problem on our side is that since the Attorney General of Alberta has already stipulated to having received proper notice of intent to raise constitutional issues some time ago (April 8, 2003) and seems to be aware of the specific arguments to be advanced as well as the specific statutes, regulations, acts and treaty to which we take exception, it is difficult for a layperson to understand how and why the federal requirements for "proper notice" would/should be significantly different.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your consideration and assistance in the interest of justice for all sides of this case.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James M. Craven (Omahkohkiaayo i'poyi)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you. I am considering the sufficiency of the notice i.e. whether it complies with the obligation to identify a statute or regulation which is alleged to be inoperative, inapplicable or invalid.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Lambrecht:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;May I assume that this notice of receipt is also notice of having received proper service of intent to raise constitutional issues in the case of Bella Yellowhorn?Thank you again for your assistance and patience.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James Craven (Omahkohkiaayo i'poyi)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you. I have received this.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Kirk Lambrecht&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Mr. Lambrecht:Thank you for your acknowledgment and request for further specifics in order that this notice be complete and comply with legal requirements for proper notice. Specifically we are arguing that the Indian Act is genocidal per se and presently, violates at least Articles II b,c, and e of the 1948 UN Convention on Prevention and Punishment of the Crime of Genocide ratified by Canada in 1953 and part of the Supreme Law of Canada; we will argue that any asserted obligations of Blackfoot under the Indian Act, or under Treaty 7, including obligations to obey the licensing and insurance requirements under the Alberta Motor Vehicles Act, amount to demanding that Blackfoot aid and abet ongoing genocide against the Blackfoot Nation collectively as well as against members individually.Further, we argue that forced assimilation and Canadian citizenship of Blackfoot, and associated forced obligations that go with forced assimilation and Canadian citizenship, are genocidal per se and violate the 1948 UN Convention on Genocide which is part of the Supreme Law of Canada. Further, we argue that Treaty 7 was never signed and/or never a full and binding Treaty and thus any purported obligations of Blackfoot under Treaty 7 to become "loyal subjects" of the Crown and bound by all Canadian laws do not exist as a matter of international law;Further, we argue that although Canada claims that Treaty 7 was properly signed and valid, although we dispute this claim with historical evidence, Canada has nonetheless built up whole system of material interests and purported property rights based upon the assumption of the validity of Treaty 7; under international law, specifically the Vienna Convention on Treaties, only nations sign, continue and enforce treaties and each treating partner when signing a treaty, recognizes the co-equal status and systems of government (producing the leadership having the standing and authority to sign a treaty and bind a whole population to its terms) of the other treating partner(s) and thus there is ample legal authority for the continued existence of the Blackfoot Nation with its own right to independence, self-determination, sovereignty and traditional government and mechanisms for selecting the composition of that government. Thus, Bella Yellow Horn, a member of a sovereign Blackfoot Nation, and all members of the Blackfoot Nation, may travel throughout Canadian lands with the same status and obligations (vis-a-vis licensing and insurance) as any other motorist from another sovereign nation. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I hope that meets your requirements for proper notice and specificity in terms of what specific Acts or laws are being challenged; this is also notice of an affirmative defense in terms of an affirmative obligation not to obey Canadian laws that objectively promote de facto genocide against Blackfoot Peoples.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,James M. Craven (Omahkohkiaayo i'poyi)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Craven&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I understand that the attached email is your Constitutional Notice under the Judicature Act of Alberta. I confirm I received it by email.The notice is required to identify the Act or Regulation which you say is invalid, inoperative or inapplicable. I do not see this here.I understand from your discussion with me that you intend to argue that those provisions of Treaty 7 and the Indian Act, which confirm an obligation to comply with provincial law, including the Alberta law which requires a person to obtain insurance before operating a motor vehicle, are somehow constitutionally invalid. I would ask you to confirm that this is, in fact, what you intend to argue.You will appreciate that the obligation to identify the Act or Regulation which you say is invalid, inoperative or inapplicable is on the litigant asserting the claim, not on the Government.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Kirk LambrechtCounsel&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Mr. Sandstrom, Mr. Brooks and Judge Jacobsen:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I am sending this notice in care of Mr. Sandstrom to be cc'd also to Mr. Falconer, Mr. Brooks and Judge Jacobsen. I just sent to the web address given for the Attorney General of the Federal Government of Canada: &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;a) my letter dated April 12, 2003 written as official notice of intent to raise constitutional issues in the case of R. v Bella Yellow Horn, Provincial Court of Lethbridge, Alberta, s.71(1)(a) MVA; &lt;/div&gt;&lt;div align="justify"&gt;b) the National Lawyer's Guild Letter of support and endorsement for some of our proposed constitutional arguments; &lt;/div&gt;&lt;div align="justify"&gt;c) a copy of our Blackfoot Indictment of the Governments of Canada and the U.S. for Genocide (all accepted into the Court record in Lethbridge to the best of my knowledge). These were sent with a Return/Read function sent and the above are acknowledgments and receipts that they have been received by the Office of the Attorney General of Canada. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;When I receive acknowledgments that they have been read (or at least opened) I will send those receipts as well.Further, I am making inquiries to obtain the telephone records and/or receipts of transmissions from the fax machine at the Research Department of the Peigan Band Office on April 22, 2003 to attempt to document that official notice was indeed sent to the Attorney General of the Canadian Federal Government of intent to raise constitutional issues as was represented to me to have occurred by Bella Yellow Horn. I must also note that a finding that Bella Yellow Horn was indeed insured at the time she was stopped and subsequently charged with driving without insurance, does not, and should not, make her constitutional and other arguments "moot". We gave notice previously that this case would involve the legal existence and application of Blackfoot National Sovereignty, constitutional issues and applications of the 1948 UN Convention on the Punishment and Prevention of the Crime of Genocide, ratified in 1953 by the Government of Canada and thus part of the Supreme Law of Canada; in a previous Court session on April 8, 2003 we noted that we would not be stipulating on the issue of whether or not Bella Yellow Horn was indeed "insured" as the burden of proof on that issue rests with the Crown. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Further, if Bella Yellowhorn represents to me, as she did, that she was indeed "insured" and believed herself to be insured (as a matter of personal choice and not as a matter of any obligations recognized by her under the Indian Act, Treaty 7 or summarily-imposed Canadian Citizenship), I am bound to raise that defense as well since not to do so would involve a form of fraud upon/misuse of the Court stipulating what Bella Yellow Horn considers to be untrue for the purposes of using the Court to raise other issues and defenses.Further, in a brief conversation with Mr. Brooks, Bella Yellow Horn asked for the name of the person who made the phone call to the Lethbridge Police that led to her being stopped for possible impaired driving. Mr. Brooks indicated that I must request that name and I am hereby formally doing so in this letter.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Next, in the Courts of Canada every day, attorneys with law degrees and considerable trial experience suffer sustained or overruled objections, and Judges are often reversed on appeal; this indicates that possession of a law degree and admission to the Alberta Bar is no guarantee that no mistakes are made by those trained in law. In a pro se defense, Judges can easily give guidance and make their rulings without shouting, anger and clearly abusive tones and content of speech--and without compromising the right of the Crown to a fair trial. Further, when I indicated to His Honor that we had tried to secure Counsel in Alberta and were unable to do so, as we were told by some attorneys that they feared being labeled "radicals" and being compromised to practice in future cases and/or were unwilling to raise Constitutional arguments, His Honor made the comment to the effect that to secure an attorney that attorney must be paid. We found this comment to be deeply offensive and troubling as well as beneath the obvious considerable learning and preparation of His Honor. Further, His Honor accused me of intentionally attempting to "cherry pick" favorable evidence and arguments while attempting to hide the unfavorable to our case. Although this is exactly what the Eurocentric Courts are all about--magnifying the positives while minimizing or hiding the negatives of one's own case while doing the reverse to the opposition or magnifying their negatives while hiding or suppressing their positives of their case (which I might add Mr. Brooks and Mr. Sandstrom did not attempt to do as they acted very honorably during the trial)--in Blackfoot terms this is a charge of acting dishonorably and deceptively and His Honor was purporting to be inside my head and "knowing" my subjective intentions. I should note that every single Blackfoot Elder present in Court was of the opinion that His Honor was intentionally trying to provoke me into getting a contempt citation that would result in my going to jail and/or being dropped for cause as the unpaid agent for Bella Yellow Horn's pro se defense; I noted to them that they cannot purport to "know" or even reasonably "infer" His Honor's subjective intentions without considerably more evidence. Indeed, His Honor acted properly and honorably when he asked that Bella Yellow Horn's Blackfoot Nation Identification, presented to the police officer at the time she was stopped, be entered as evidence; and His Honor acted honorably in allowing us to finally and fully document service of notice of intent to raise Constitutional issues to the Office of the Attorney General of Canada when we represented that we had come to Court believing that such had been done but without our having--as we should have--the requisite documentation.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;As Blackfoot, we have every reason to disrespect and distrust the Courts of Canada. It was not long ago, that in and through the Courts of Canada and Alberta, judges, with flowing robes, called "Your Honor", and attorneys with law degrees and the title "Queen's Counsel", gave legal authority and cover to, and/or helped to cover-up, the sterilizing of Native children, using Native children for medical experimentation and the kidnapping of Native children to be taken to Indian Residential Schools where they were subject to forced "de-Indianization", assimilation and other monstrous crimes. Yet we came and respected the decorum and procedures of the Lethbridge Court as well as the authority and rulings of His Honor. We ask only that we receive the same level of respect and not suffer abusive anger and tones of speech that frankly caused me to get thrown off in some of my direct and cross-examinations and worry about a possible contempt citation.I ask Mr. Sandstrom, as a Queen's Counsel and Officer of the Court, in the interest of justice and as I do not have the email addresses of the others, that you please forward this letter to the Presiding Judge, Mr. Falconer, Mr. Brooks and other concerned parties you deem necessary and give notice of intent to have this memorandum entered as part of the official record of the trial. We invite rebuttal of any and all points of view and issues raised in this letter and stipulate that any rebuttals should accompany this memorandum for the court record. This is not being sent to the Attorney General of Alberta as that office has already stipulated to having been given proper notice of intent to raise constitutional issues but this could be sent to that office as well.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your consideration and assistance.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,James M. Craven (Blackfoot Name: Omahkohkiaayo i'poyi)&lt;/div&gt;&lt;div align="justify"&gt;(signed: call (360) 992-2283 if verification of source/signature is needed) &lt;/div&gt;&lt;div align="justify"&gt;Acting as Unpaid Agent for the Pro Se Defense of Bella Yellow Horn&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;April 12, 2003&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Minister of Justice, Canada&lt;/div&gt;&lt;div align="justify"&gt;Attorney General of Canada&lt;/div&gt;&lt;div align="justify"&gt;Department of Justice, Canada Edmonton Regional Office211 Bank of Montreal Bldg.10199 101 Street,Edmonton, AlbertaT5J 3Y4Attorney General of Alberta208 Legislature Building10800 9th AvenueEdmonton, AlbertaT5K 2B6&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Sir or Madame:I am writing as a Court-accepted unpaid agent of the pro se defense of Bella Yellow Horn in the case of Her Majesty the Queen versus Bella Yellow Horn in the Provincial Court of Alberta, Lethbridge, Alberta, R. v Yellow Horn, Bella s.71 (1)(a) MVA, Trial 03, 04, 08; 2:00 #1 pursuant to provisions of the Judicature Act, RSA. 2000, c. J-2, Section 24(1). This is not a notice of claim of no jurisdiction of the Provincial Court of Alberta, but rather notice of intent to raise constitutional issues in this case. Indeed, Bella Yellow Horn gave full and specific notice of the types of arguments to be raised in her case as can be seen from the attached letters and materials to the Presiding Magistrate of the Court (received by Mr Scott and Mr. Sandstrom well in advance of the case). Further, a letter of endorsement of our proposed arguments from the National Lawyer's Guild (see attached) was sent to the Presiding Magistrate to assure his honor that not only did we respect the jurisdiction of the Provincial Court, that also, we did not plan to advance arguments that were frivolous per se. The cited act being violated is the Alberta Motor Vehicles Act--driving without insurance.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;First of all, in writing this letter and giving this notice, we do not stipulate in any way that indeed proper notice under the Judicature Act has not been given. Further, since we gave specific arguments that we plan to advance in the Provincial Court at Lethbridge, none of which explicitly challenged the jurisdiction of that Court, how then can we be seen to be challenging the jurisdiction of that Provincial Court? Further, I refer you to the attached submission made by Bella Yellow Horn, dated December 5, 2002 which reads as follows:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Bella Yellow HornP.O. Box 37Brocket, AlbertaTOK 0H0Telephone: 403-965-3175December 5, 2002Attorney General of Canada Attorney General of Alberta284 Wellington Street 208 Legislature BuildingOttawa, Ontario 10800 97 AvenueK1A 0H8 Edmonton, AlbertaT5K 2B6&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Attorney General of Canada and Attorney General of Alberta:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;My arguments are enclosed with this letter.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yours truly,&lt;/div&gt;&lt;div align="justify"&gt;Bella Yellow Horn(signature of Bella Yellow Horn)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Enclosure ARGUMENTS Under the International Bill of Human Rights and Freedoms, "No nation shall interfere in the internal affairs of another nation."I am a member of the Blackfoot Nation recognized by the United Nations and the International Bill of Human Rights and Freedoms (world laws).I claim aboriginal title to my Homeland--Blackfoot Nation.Canadians are immigrants. I am NOT a Canadian. Freedom and liberty of expression is my reason to have my own license plate on my property.Canadian and Canada is a falsehood.Indian act is illegal and unfair.Constitutional and Declaration claim of sovereign nation, land, identity and property.Come clean, immigrants respect aboriginal nations.I have identified and claimed my Blackfoot Nation Sovereignty to the Canadian immigrants.I want compensation of $5 million for what has been done in damages to me and my van and my Blackfoot license plate.Other aboriginal nations have their own license plates, so the Blackfoot Nation can have their own too.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Attached photocopies of fax numbers to which this was sent (1-780-422-6621 on Dec. 5, 2002 at 12:29 pm; 1-613-954-0811 on Dec. 5, 2002 at 12:31 pm) attest that this was sent to and received by the proper authorities. Although this refers primarily to another charge, driving with an unauthorized license plate, for which Bella has already been convicted in absentia according to the Crown Prosecutor Mr. Scott in an ex parte conversation on April 7, 2003 (for failure to show up in court although Bella claims that she did and the courtroom was locked) this charge refers to driving without proper registration and insurance, it is clear, however, from this submission, that these arguments, and possibly others, having constitutional implications, would be advanced even if the charges were somehow separated into separate trials. Further, although Bella's submission is not as perhaps precise and "elegant" as some attorneys or Eurocentric types might prefer, Bella is the product of the infamous Canadian Indian Residential School system (virtually stipulated to be genocidal in its nature with the creation of the $350 million "Healing Fund" by the Canadian Government) that left her not only brutalized and poor, but also without the formal "education" or legal preparation to submit the types of formal and esoteric presentations that attorney's might find "consistent" with proper form of submission under the Judicature and other Canadian Acts. Still I would argue that her arguments are elegant and profound despite--or perhaps because of--their apparent simplicity.Also in his brief on the constitutional issues, which I obtained only on April 7th upon arriving at the Blackfoot Reservation at Brocket (a day before trial on April 8th) Mr. Kurt J.W. Sandstrom noted that:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"The Attorney General accepts the letter of February 2, 2003 from James M. Craven on Yellowhorn as notice of a challenge to the Court's jurisdiction under section 24(1) of the Judicature Act. Similarly, the letter of Mr. Many Bears, dated March 28, 2002 is accepted as similar notice. The Attorney General of Alberta will notify Canada to determine whether official notice will be required on these cases, and will provide copies of the aforementioned letters to Canada." &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Other than the fact that Mr. Sandstrom has mischaracterized Bella Yellow Horn's position with respect to jurisdiction of the Court, this seems to suggest that my letter, acting as an unpaid agent of the pro se defense of Bella Yellow Horn, was accepted as notice of intent to challenge Court jurisdiction, a mischaracterization, yet it also alludes to the specifics of my letter to the Court, plus our attached "Indictment of the U.S. and Canadian Governments for Genocide", giving notice that we would be advancing Constitutional arguments in a Court whose jurisdiction the prosecution has summarily claimed we have challenged or would challenge.Further, I must note for the record, that in an ex parte conversation with Mr. Sandstrom, during a Court recess, when I asked Mr. Sandstrom if he had read the 1948 UN Convention on Genocide to which Canada became a final signatory in 1953 (and thus it became part of the Supreme Law of Canada) he responded to my question: "some". When I asked if he had read our attached Indictment of the U.S. and Canadian Governments for Genocide, attached with the letter to the Presiding Magistrate in the case, Mr. Sandstrom also responded "some" and indicated he will read all of it and may have to make an amended brief. Yet Mr. Sandstrom came to Court, along with Mr. Scott, with a fully-prepared brief on constitutional issues while arguing that proper notice of potential constitutional issues to be raised was not given. In addition to the prejudicial effects of tying Mr. Many Bears' case with that of Bella Yellow Horn, we also asked that the cases not be tied together as Bella Yellow Horn was not advancing the same types of arguments that Mr. Many Bears appeared to be advancing with respect to jurisdiction of the court. Indeed we can imagine many circumstances in which Canadian courts have jurisdiction over Indigenous or foreign nationals residing in or committing offenses in Canadian territory.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In any case, pursuant to, and out of respect for, the order and jurisdiction of the Provincial Court in Lethbridge, and the time allotted to make this submission, this is to be taken as formal notice of intent to raise constitutional issues in this case of Her Majesty the Queen in Right of Alberta v Bella Yellow Horn, s. 71(1)(a) MVA pursuant to provisions of the Judicature Act, R.S.A. 2000, c. J-2, Section 24(1) and any other required provisions relevant to this case and the advancement of constitutional issues in this case. The specific arguments to be advanced have already been presented and are presented in the attached materials with this letter. Some of the proposed arguments include--but are not limited to:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;1) The Indian Act is genocidal per se and causes forced assimilation and other deleterious conditions and relationships that violate the 1948 UN Convention on Genocide and other Covenants and Treaties of International Law to which Canada is a signatory and are thus part of the Supreme Law of Canada under the Canadian Constitution; therefore any purported duties and obligations of Indigenous Peoples under the Indian Act are made illegal by those aspects of the Supreme Law of Canada with which they are in direct violation or contradiction; asking any First Nations person to recognize and submit to the Indian Act in Canada is precisely analogous to asking a Jewish person or persons from other targeted groups to recognize and submit to the infamous 1935 "Nuremberg Laws" of Nazi Germany in the opinion of many recognized scholars on First Nations issues in Canada;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;2) Mr. Sandstrom's brief notes that: "The Provincial Court clearly has jurisdiction over the accused. Aboriginal persons, like Canadian citizens, are bound by the laws of Canada. This is the case whether an individual is part of a group that has entered into a treaty with the Crown or not." and: "Aboriginal persons, like others residing in Canada, are entitled to the benefit and protection of Canadian law. They are at the same time expected to obey Canadian law." We know of many cases in which obedience to a lower-level law puts one in conflict with higher law: someone breaking speeding laws in order to stop a murder for example. In this case, we argue that Bella Yellow Horn was objectively acting as an agent and instrument to expose and stop genocide and thus cause obedience to the Supreme Law of Canada prohibiting the acts or cover-up associated with genocide. No person may be compelled to obey laws that are inherently discriminatory, that conflict with higher laws or that objectively promote their own extermination and that of their People;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;3) Any purported obligations of Blackfoot under Treaty 7 that serve to denationalize or cause Blackfoot to surrender to all laws and authority of the Crown are contradictory and in violation of international law and those aspects of the Canadian Constitution dealing with genocide. Only sovereign nations may sign treaties and according to the Vienna Convention on Treaties, which the U.S. and Canadian Supreme Courts have recognized as definitive international law on treaties, each treating partner recognizes--or at least does not call into question--the authority, co-equal status and systems for determining government/leadership of the other. The cited language of Treaty 7, dealing with Blackfoot allegedly agreeing to become loyal subjects of Her Majesty the Queen and all of her laws, if accepted, would mean that Blackfoot, as a sovereign nation, would be signing a treaty whose terms and language served to extinguish the very sovereign nation that had the authority and standing to sign--and continue--such a treaty; no nation, especially Blackfoot, would ever sign such a treaty that would be illegal and non-binding under international law and basic contract law. These asserted obligations under Treaty 7, along with Treaty 7 itself, are simply not valid under even Canadian Law. Further, Treaty 7 was not fully and finally ratified by the Crown in London as required prior to 1947. Further, according to the notes of Father Constantine Scullen, representative of the Crown to attest to the signatures of the Blackfoot Chiefs on Treaty 7, none of the Chiefs would make a mark with their own hand nor would they even touch the pen used to make the mark and therefore Treaty 7 and any purported allegiances or obligations of Indigenous Peoples under Treaty 7 would not exist, eventhough the Government of Canada has asserted Treaty 7 to be binding and has built a whole system of "private" property, interests and purported property rights under its provisions;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;4) The very same laws, including the Indian Act that have brought Blackfoot to conditions of abject poverty (average $229 Canadian per month in income)on wide-open Reserves, with no businesses or mass transportation systems, are also alleged to mandate that Blackfoot carry auto insurance often costing up to $1200 Canadian per year; in this context, carrying auto insurance is prohibitive and not driving means leaving oneself subject to conditions of life that violate Articles II (a),(b), (c), and (e) of the 1948 UN Convention on Genocide--part of the Supreme Law of Canada. Bella Yellow Horn, like many First Nations persons, was therefore forced by Canada's own laws to violate lower-level laws in order to survive and in order to uphold higher laws.We trust that his shall constitute sufficient notice under the provisions of the Judicature Act as we have made a good-faith attempt to comply with its provisions and the order of the Provincial Court in Lethbridge, Alberta.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely yours,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James M. Craven (signed by representative)Blackfoot Name: Omahkohkiaayo i'poyiUnpaid agent for the pro se defense of Bella Yellow Horn &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Bella Yellow Horn&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Cc: Presiding Magistrate, Provincial Court of Alberta, Lethbridge, Alberta, case of Bella Yellow HornMr. Gordon K. Falconer, Crown ProsecutorMr. Peter Scott, Crown ProsecutorMr. Kurt Sandstrom, Crown Prosecutor&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James Craven;Blackfoot Name: Omahkohkiaayo-i'poyi&lt;/div&gt;&lt;div align="justify"&gt;Professor/Consultant,Economics;Business Division Chair&lt;/div&gt;&lt;div align="justify"&gt;Clark College, 1800 E. McLoughlin Blvd.Vancouver, WA. USA 98663Tel: (360) 992-2283; Fax: (360) 992-2863&lt;a href="http://www.home.earthlink.net/~blkfoot5"&gt;http://www.home.earthlink.net/~blkfoot5&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;Employer has no association with private/protected opinion"Who controls the past controls the future. Who controls the present controls the past." (George Orwell)"...every anticipation of results which are first to be proved seems disturbing to me...(Karl Marx, "Grundrisse")FREE LEONARD PELTIER!!&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;NATIONAL LAWYERS GUILD&lt;/div&gt;&lt;div align="justify"&gt;Michigan Chapter Established - 1937 Ford Building, 615 Griswold, Suite 916, Detroit, Michigan 48226(313) 963-0843&lt;a href="http://www.michigannlg.org/"&gt;http://www.michigannlg.org/&lt;/a&gt;nlgorganizer@igc.org&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;March 19, 2003&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Presiding JudgeProvincial Court - Criminal Division Court House320 - 4 St.,S. Lethbridge, Alberta, Canada B T1J 4C7&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Re: Case of Bella Yellowhorn&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Hon. Presiding Judge:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;I am writing on behalf of the National Lawyers Guild - Michigan Chapter in the matter of Bella Yellowhorn and to respectfully urge her acquittal on the charges after an impartial review of the facts in her case.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The National Lawyers Guild is a progressive legal organization working towards the end that "human rights shall be regarded as more sacred than property interests." We are the oldest integrated bar association in the United States and are affiliated with the International Association of Democratic Lawyers. Our chapter is one of the oldest and largest chapters in the United States with over 300 members throughout Michigan.We have been informed of the facts of Bella Yellowhorn's case and believe that her good-faith beliefs are supported under international law. Specifically, we endorse and adopt the arguments of Professor Jim Craven, a recognized expert concerning the rights of Native Americans, summarized as follows:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;a) The Blackfoot Nation is real and viable and still in existence despite past and present attempts at its extermination;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;b) Bella Yellowhorn is a member of the Blackfoot Nation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;c) The existence or non-existence of any nation should not be found dependent upon recognition or non-recognition by other nations (particularly those such as Canada or the U.S. who have a long history of genocide and acting in denial of the sovereignty of First Nations);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;d) The sovereignty of indigenous people's cannot be legitimately denied;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;e) The Government of Canada does assert Treaty 7, signed with Blackfoot chiefs, to be binding and has built a whole system of supposed property rights and material interests upon that and other Treaties.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;f) The 1969 Vienna Convention on the Law of Treaties, recognized by both the U.S. and Canadian Supreme Courts as the "definitive international law on treaties and treaty relations", only sovereign nations can sign treaties and in doing so, each party necessarily recognizes the other treating party as a co-equal and legitimate representative of a whole People being bound by that Treaty.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;g) Canada is not only bound by international law governing acceptance and recognition of treating partners as sovereign and co-equal nations, it is also bound by other specifics of the Vienna Convention on Treaties: e.g. Article 27 which stipulates that no nation may invoke provisions of its internal or national laws as a reason-or in order-not to abide by treaty specifics and obligations;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;h) Canada is also a signatory to the 1948 UN Convention on Prevention and Punishment of the Crime of Genocide (ratified in 1953) which, in Article II(e), defines, as one form or instrument of genocide (NOTE: ANY of the five instruments of genocide mentioned in Article II constitute genocide in whole), the forcible transferring of children [or any persons] from one group to another group; this includes any form of forced assimilation including forced citizenship(also recognized as illegal in the Helsinki Accords on Human Rights to which Canada is also a signatory). According to the Constitution of Canada, these Conventions and Accords, having the status of treaties, constitute part of the "Supreme Law" of Canada (which is why the 1948 UN Convention on Genocide supercedes the more narrow law-and more narrow definition of genocide-in the Criminal Code of Canada dealing with genocide);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;i) The Government of Canada, through the creation of the so-called "Healing Fund" for compensation of victims of the Canadian Residential Schools (instruments of forced assimilation, forced religious conversion, forced sterilization, deliberate inflicting of serious mental and bodily harm, sexual and physical abuse etc) has already stipulated to the reality and fact of ongoing genocide against First Nations Peoples-including Blackfoot-as defined in Articles II (b), (c), (d) and (e) of the 1948 UN Convention on Genocide; these crimes occurred under and through the Indian Act and the non-Blackfoot political entities (Tribal Councils) imposed upon the Blackfoot by the Government of Canada;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;j) Any governmental or judicial decision predicated upon the assumptions of the non-existence of a Blackfoot Nation and the enforced Canadian citizenship (and citizenship obligations) of Blackfoot as mere "national minorities" involves, at least, complicity in genocide and/or cover-up of genocide (which itself is a form of complicity in genocide) and as such is in violation of the 1948 UN Convention on Genocide and the Helsinki Accords and thus is in violation of the "Supreme Law" of Canada;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;k) Bella Yellowhorn, in her own mind, with some substantial legal scholarship supporting her beliefs, believed/believes that: a) There still survives a sovereign Blackfoot Nation with its own traditional laws, government and institutions and that she is a member of that Nation; b) Asserting the fact, existence and viability of the Blackfoot Nation-along with asserting the derivative rights of that Nation to sovereignty, independence, self-determination and freedom from extermination-is essential to preventing the total extermination of what is left of the Blackfoot Nation and therefore her intent and actions are consistent with Canada's treaty obligations to prevent and punish the crimes of genocide; c) Her status driving on non-Blackfoot lands, was no different (in international law and in intent) than someone from another nation or state of another nation (e.g. Montana) with non-Alberta license plates and/or non-Alberta insurance driving through Alberta or anywhere in Canada; d) She was fully insured in the only way that anyone is really insured-their honor and integrity; after 9-11 many insurance companies refused to pay-out on obligations such that the nominally "insured"-and any victims in need of compensation as a result of actions by the insured-were never really insured at all (and indeed many victims of the "insured" had more to fear from the insurance companies driven by profit motives than from those individuals whose actions required compensation for the victims); it is for these reasons that Blackfoot regard the integrity and honor of the person causing damages as the only real form of "insurance" one can carry and in that sense, Bella Yellowhorn was fully insured in Blackfoot terms;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your consideration of these issues.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,John C. Philo&lt;/div&gt;&lt;div align="justify"&gt;Chapter President&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Sisters and Brothers,&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;It is the tradition among Blackfoot to send an offering of tobacco, as it is tradition among some Indigenous Nations to send an eagle feather or other sacred items, as a call for all Warriors and People of Conscience to join us in a Just Cause. Our cause is to stop the ongoing extermination of Blackfoot and other Indigenous Peoples as we are at a critical crossroads of our history--literally between our survival and extinction. We do not seek assistance for narrow parochial interests. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;We stand with and ready to assist, to the best of our ability, any oppressed Peoples anywhere.We will be going to Court in Alberta on April 8, 2003. The case of Bella Yellowhorn, a member of the Blackfoot Nation and its Traditional Government, involves a charge of driving without Alberta insurance and driving with "Sovereign Blackfoot Nation" license plates on her van (now missing from impound). This case is really about the existence, sovereignty, survival, standing (under international law) and reality of the Blackfoot Nation standing against genocidal onslaughts, attempts at extermination, summary non-recognition (without authority in law) and statistical elimination (through non-Blackfoot impositions of their genocidal criteria of "official status" to determine who and what is a First Nations person as well as which are and which are not "recognized" First Nations).&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Those who have specialized or general expertise in the areas dealt with in the accompanying letter to the Provincial Court of Alberta or the Indictment of the Governments of the U.S. and Canada for Genocide Against Blackfoot Peoples (found at &lt;a href="http://www.chgs.umn.edu/"&gt;http://www.chgs.umn.edu/&lt;/a&gt; under the section "Histories, Narratives and Documents") are asked to please read both the letter and accompanying indictment, and, if anyone can so honestly attest, that the arguments and allegations contained in those documents are compelling (legally, logically, empirical support, morally etc) or at least serious and not frivolous and thus worthy of full consideration and examination of supporting evidence supporting them, please so attest and send letters to jcraven@clark.edu before April 1, 2003. Please also attach name, titles and positions (past and/or present) as these letters will be introduced in support of our case and Cause in the Alberta Court.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;We are headed for the Supreme Court of Canada and eventually to the International Court in the Hague and the U.N. to establish evidence and arguments related to the reality of ongoing genocide against Indigenous Peoples in many places and the reality--and basis in international law--of the existence of fully-sovereign Indigenous Nations and their derivative rights to freedom, independence, self-determination and freedom of extermination.Thank you all for any assistance. Time is of the essence so any and all submissions are appreciated and needed ASAP. Please also forward this request to others who might be of assistance.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,James CravenOmahkohkiaayo-i-poyiMember and Designated Special Prosecutor and Solicitor General, Blackfoot Nation Professor of Economics&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Alberta JusticeCriminal Division 10 February 2003 JAMES CRAVENC/o CLARK COLLEGEProfessor of Economics1800 E. McLoughlin Boulevard VANCOUVER, Washington 98663&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Sir:RE:R.V. YELLOW HORN, BellaS. 71(1)(a) MVATRIAL 03 04 08: 2:00; #1&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Your letter of February 3, 2003 addressed to the Presiding Majistrate was copied and provided by this court to Ms. Yellowhorn and to the Crown Prosecutor's Office. The trial of this matter is now scheduled for 2:00 p.m. on Tuesday, April 8th, 2003 in Courtroom #1 in Lethbridge, Alberta.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;From your covering letter, you indicated that you might be willing and able to travel to Lethbridge in order to assist Ms. Yellowhorn if the trial was after March 23rd. The trial date was set with that accomodation in mind. Please understand, however, that it is Ms. Yellowhorn, as opposed to the Crown or the Court that is seeking your assistance. Any expenses or costs associated with your travel to or attendance in Court in Lethbridge will not be the responsibility of Alberta Justice or the Provincial court of Alberta.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yours sincerely,(signed) Gordon K. Falconer&lt;/div&gt;&lt;div align="justify"&gt;Crown Prosecutor GKF:vle&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;This was the letter sent to the Presiding Magistrate:February 2, 2003&lt;/div&gt;&lt;div align="justify"&gt;To: The Presiding Magistrate Re: Case of Bella Yellowhorn TheProvincial Court of Alberta Lethbridge, Alberta, Canada&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Dear Your Honor:My name is James Michael Craven. I am a member of the Blackfoot Nation and a Professor of Economics and Chairman of the Business Division at Clark College in Vancouver, Washington, USA. I have been asked to testify by Bella Yellowhorn in her "pro se" defense in her case before your Court. First of all, I must note that Bella Yellowhorn has attempted to secure legal Counsel of her own choosing but has been unable to do so as various inquiries by her to secure legal Counsel have resulted in no one willing to take her case; perhaps they fear being "tainted" in future cases in Alberta as a result of taking her case and/or being associated with her apparent cause.I am an economist by training, with a focus on international economics, and my training has also involved formal and informal training in international law over some thirty years; I am not, however, an attorney. I have published extensively on issues in international law-particularly with reference to status and rights of Indian nations under international law-in peer-reviewed journals that included positive assessments by recognized professors of international law at various universities. My standing as an economist and educator is possibly reflected in my being invited into--which I never sought -- Marquis "Who's Who in: The World; America; the West; Science and Engineering; Finance and Industry"; I have been a biographical subject in these publications for many years.The possible probative value of my testimony has to do with the issue of "mens rea" and the mind-set and good-faith-based beliefs upon which Bella Yellowhorn was operating at the time of her alleged offenses. Specifically, Bella Yellowhorn operates-and was likely operating, at the time of her alleged offenses-with the following good-faith-based beliefs for which she has considerable support by recognized scholars of international law:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;a)That there is indeed a real and viable Blackfoot Nation still in existence despite past and present attempts at its extermination or elimination and that Bella Yellowhorn is indeed a member of that Nation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;b)That the existence or non-existence of any nation is not in any way dependent upon recognition or non-recognition by other recognized nations (particularly those such as Canada or the U.S. that have acquired and built material interests in denying the existence and legitimacy-and derivative rights of independence, self-determination and sovereignty-of First Nations and/or other nations; the existence, legitimacy-and derivative rights-of all nations are a matter of "facts on the ground" and international law as were it not so, any nation could summarily extinguish another nation (genocide) through simple non-recognition and applied power disparities;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;c) Of the 193 nations in the U.N. over 100 have been recognized as nations only since 1945 and out of the dissolution of the former USSR, for example, fifteen new nations have been recognized by Canada and the U.S.; these new nations did not "become" nations since the dissolution of the U.S.S.R , rather they simply became recognized as nations as the essential elements and requisites of their nationhood existed long before their recognition as nations by other nations (prior to their recognition as nations, they were summarily declared to be "national minorities" or "dependent captive quasi-nations" with "quasi-sovereignty" and having the same formal status as First Nations have been summarily declared to have in Canada and the U.S.);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;d)Although some Blackfoot deny that Treaty 7 was actually signed by the principal chiefs of the Blackfoot, the Government of Canada does assert Treaty 7 to be binding and has built a whole system of supposed property rights and material interests upon that and other Treaties. According to the 1969 Vienna Convention on the Law of Treaties, recognized by both the U.S. and Canadian Supreme Courts as the "definitive international law on treaties and treaty relations", only sovereign nations can sign treaties and in doing so, each party explicitly and tacitly recognizes the other treating party as a co-equal and legitimate representative of a whole People being bound by that Treaty. In recognizing the legitimacy of a treating party, each party is also tacitly, if not explicitly, recognizing-or not calling into question-the legitimacy of the mechanisms and institutions through which the representatives and government of the treating parties were selected and the traditional Blackfoot mechanisms and institutions through which the alleged Blackfoot Chiefs and signatories of Treaty 7 were selected remain in force among traditional Blackfoot despite any impositions of alternative political forms (Tribal Councils) under the Indian Act;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;e) Canada is not only bound by international law governing acceptance and recognition of treating partners as sovereign and co-equal nations, it is also bound by other specifics of the Vienna Convention on Treaties: e.g. Article 27 which stipulates that no nation may invoke provisions of its internal or national laws as a reason-or in order-not to abide by treaty specifics and obligations;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;f) Canada is also a signatory to the 1948 UN Convention on Prevention and Punishment of the Crime of Genocide (ratified in 1953) which, in Article II&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;g), defines, as one form or instrument of genocide (NOTE: ANY of the five instruments of genocide mentioned in Article II constitute genocide in whole), the forcible transferring of children [or any persons] from one group to another group; this includes any form of forced assimilation including forced citizenship(also recognized as illegal in the Helsinki Accords on Human Rights to which Canada is also a signatory).;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;h) According to the Constitution of Canada, these Conventions and Accords, having the status of treaties, constitute part of the "Supreme Law" of Canada (which is why the 1948 UN Convention on Genocide supercedes the more narrow law-and more narrow definition of genocide-in the Criminal Code of Canada dealing with genocide);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;i) The Government of Canada, through the creation of the so-called "Healing Fund" for compensation of victims of the Canadian Residential Schools (instruments of forced assimilation, forced religious conversion, forced sterilization, deliberate inflicting of serious mental and bodily harm, sexual and physical abuse etc) has already stipulated to the reality and fact of ongoing genocide against First Nations Peoples-including Blackfoot-as defined in Articles II (b), (c), (d) and (e) of the 1948 UN Convention on Genocide; these crimes occurred under and through the Indian Act and the non-Blackfoot political entities (Tribal Councils) imposed upon the Blackfoot by the Government of Canada;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;j) Any governmental or judicial decision predicated upon the assumptions of the non-existence of a Blackfoot Nation and the enforced Canadian citizenship (and citizenship obligations) of Blackfoot as mere "national minorities" involves, at least, complicity in genocide and/or cover-up of genocide (which itself is a form of complicity in genocide) and as such is in violation of the 1948 UN Convention on Genocide and the Helsinki Accords and thus is in violation of the "Supreme Law" of Canada;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;k)If there is no Sovereign Blackfoot Nation, with its own traditional mechanisms and institutions for forming a government, determining its own internal affairs and relations with other nations then either: a) There is no binding Treaty 7 as those Blackfoot who ostensibly signed it had no standing or authority to do so; or, b) there was a Blackfoot Nation and traditional government that signed Treaty 7 but it no longer exists (then the Government and certain segments of the population of Canada are guilty of genocide); or, c) There is some kind of Blackfoot Nation sui generis that has limited sovereignty and imposed/non-Blackfoot governmental structures summarily imposed by a Canadian government and private interests having direct material interests-and no legal authority in international law-in doing so;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;l) Bella Yellowhorn, in her own mind, with some substantial legal scholarship supporting her beliefs, believed/believes that: a) There still survives a sovereign Blackfoot Nation with its own traditional laws, government and institutions and that she is a member of that Nation; b) Asserting the fact, existence and viability of the Blackfoot Nation-along with asserting the derivative rights of that Nation to sovereignty, independence, self-determination and freedom from extermination-is essential to preventing the total extermination of what is left of the Blackfoot Nation and therefore her intent and actions are consistent with Canada's treaty obligations to prevent and punish the crimes of genocide; c) Her status driving on non-Blackfoot lands, was no different (in international law and in intent) than someone from another nation or state of another nation (e.g. Montana) with non-Alberta license plates and/or non-Alberta insurance driving through Alberta or anywhere in Canada; d) She was fully insured in the only way that anyone is really insured-their honor and integrity; after 9-11 many insurance companies refused to pay-out on obligations such that the nominally "insured"-and any victims in need of compensation as a result of actions by the insured-were never really insured at all (and indeed many victims of the "insured" had more to fear from the insurance companies driven by profit motives than from those individuals whose actions required compensation for the victims); it is for these reasons that Blackfoot regard the integrity and honor of the person causing damages as the only real form of "insurance" one can carry and in that sense, Bella Yellowhorn was fully insured in Blackfoot terms;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;These are but some of the arguments that I was asked to advance. I respectfully ask Your Honor to please read the accompanying "Indictment of the U.S. and Canadian Governments for Genocide" for supporting authority in international law for some of the arguments advanced in this letter. As I am a teacher and it is difficult and costly for me to come to Alberta to testify or to assist Bella Yellowhorn in her pro se defense, I would ask that a firm date for trial be given and kept in the interest of justice. I am teaching until March 23 but can get off to travel with sufficient notice and a firm trial date.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Thank you for your consideration of these issues.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Sincerely,James M. CravenOmahkohkiaayo-i'poyi&lt;/div&gt;&lt;div align="justify"&gt;Member, Blackfoot Nation,Professor of Economics and Business Division Chairman,Clark College&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premises in Alberta Court Case&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 1: Treaties are covenants between sovereign nations and only sovereign nations can ratify and keep treaty terms (Vienna Convention on Treaties, Articles 27 and 29);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 2: No nation may summarily and legitimately deny to another nation any of the same rights, principles and legal authorities that it asserts for itself to assert, defend and legitimate its own existence and derivative rights to sovereignty, freedom and self-determination (International Covenant on Civil and Political Rights; International Covenant on Economic, Social and Cultural Rights; UN Charter)&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 3: Each treating nation is recognizing--or at least not calling into question--the existence, sovereignty, government, systems of selecting members of government--and authority to bind whole populations to terms of the treaty--of the other treating partner when forming and ratifying a treaty;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 4: No treaty is valid that contains within it, terms effectively abolishing the other treating partner as a sovereign nation--as national sovereignty, freedom, independence and self-determination are requisite to having legal authority and standing to ratify and keep treaties and treaty terms;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 5: No nation may legally or legitimately contrive or invoke domestic laws to circumvent or breach treaty terms once ratified ( international canons of treaty construction on supremacy clauses designed to make treaty terms complied with and binding and not breachable through ruses and contrived domestic laws);&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 6: The existence or non-existence of any group of people is strictly determined by facts on the ground and tests under international law and is in no way dependent upon recognition or non-recognition of existence by any other nation or entity; were it not so, one nation could simply abolish or exterminate another through redefinition and non-recognition;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 7: Calculated breaches of treaty terms by one or more treating partners make a given treaty null and void;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 8: No treaty may be considered legitimate without full, free and fully-informed consent on all aspects of the treaty on the part of the treating partners and without all treating partners being free of fraud, duress, unconscionability, threats and calculated deception;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 9: No person may be deprived of nationality without legal cause nor may any person have nationality assigned without voluntary, free and informed consent of the person;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 10: No nation may assert national laws/sovereignty to commit genocide or other breaches international law since domestic actions often have spillover effects on other nations as well as on human beings with fundamental rights under international law; for the same reasons that provincial laws trump municipal laws (to preserve cohesion and integrity of a whole province), and federal laws trump provincial laws (to preserve the cohesion and integrity of a federal union and system), so international law trumps federal law (to preserve the cohesion and integrity of a global community of nations and peoples).&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 11: No need to cover-up what is clean only what is dirty; acts of cover-up may be used to legally infer and establish mens rea (criminal intent), existence of conspiracies and awareness of probable or inexorable effects of given policies, common plans and actions; court procedures and protocols may be used and are often used as instruments of genocide and cover-up of genocide;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 12: As court systems and evolving law (statutes, administrative codes, case law and precedents) are often used to set up, carry out and cover-up genocide, they are also used to ratify and legitimate genocide such that they become tautological and abrogate or impeach themselves as legal instruments available to those who set them up and have been charged with genocide; e.g. would a Jew going to a nazi court expect anything else but that nazi laws and precedents had been consciously set up not only to facilitate and cover-up genocide, but to ratify and legitimate it when challenged?&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 13: No government or entities set up by an illegal, occupying and genocidal power may ever be taken to be legal and legitimate representatives or legitimate governments of the occupied peoples and victims; for the same reasons under law and reason that the puppet Vichy Government set up by nazi occupation forces in France could have never been considered a legal and legitimate representative of the people of France, the Tribal Councils set up under the Indian Act can never be legally or legitimately taken to be representatives of the Blackfoot People and Nation;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 14: The Indian Act and Treaty 7 are internally contradictory and self-impeaching: they set up supposed special powers for the "protections" of a delinated and special group (Indians) not set up for other groups, yet also set up powers from which this targeted group need protection for their continued existence and survival;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 15: Intentions of persons or groups of persons may be legally inferred and established from the highly probable--or inexorable--and foreseeable effects (by a reasonable and prudent person free of bias, malice or conflict of interest) of given policies, laws and actions without necessary resort to tape recordings, insider documents, informants etc giving actual utterances revealing intentions;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 16: No nation and treating partner may summarily, unilaterally, ex post facto and without the consent of the other treating partner(s), declare a treaty to be sui generis as a means to circumvent their own treaty responsibilities and the rights of the other treating partner and/or in order to inhibit or proscribe the coverage and rights under international law of other treating partner, or the treaty;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 17: No nation may summarily declare members of a nation to be citizens of another nation , or claim that imposed citizenship now renders a given a given group a "national minority" and not governed or protected by international law ; nor may any nation use forced citizenship as a means to claim the offending nation is not subject to international law or international conventions--especially those ratified by the offending nation.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Premise 18: Signing and ratifying a treaty signals intent to keep the terms of the treaty--and thus bind whole populations--into the future; keeping the terms of a treaty into the future, requires the continued existence, legitimacy (de facto and de jure) sovereignty, freedom, self-determination and nationhood of the treating partners and continued recognition--or at least not callling into question--of same by the treating partners;&lt;/div&gt;&lt;div align="justify"&gt;Jim C.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;NOT YOUR AVERAGE LICENSE PLATE...&lt;/div&gt;&lt;div align="justify"&gt;By Lisa DoerksenLethbridge Herald Friday, January 23, 2004&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;A Piikani reserve woman who believes she is not bound by Canadian law is fighting for the right to drive in the province without registering her vehicle.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Bella Yellowhorn has launched a constitutional challenge of the Indian Act and Treaty 7 in an effort to be recognized as part of a sovereign nation."I am a member of the sovereign Blackfoot Nation", said Yellowhorn. "I do not have to abide by the Canadian status laws and all they charge us for."Yellowhorn claims she is one of a growing number of natives who have rejected their status Indian cards from the government and are using their own Blackfoot Nation cards.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yellowhorn and her representation--James Craven, a professor at Clark College in Washington--will argue their position this morning in Lethbridge provincial court.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Prosecutor Kurt Sandstrom, a specialist in constitutional and aboriginal law, is handling the case for the Crown.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The issue stems back to May 1, 2001 when Yellowhorn was pulled over in Lethbridge for not having proper registration for her vehicle. Yellowhorn had outfitted her van with a homemade Blackfoot Nation license plate."This is traditional Blackfoot Nation territory", she said. "This is my homeland and I feel I have the right to use my own license plate in my home country."If her case is successful, Yellowhorn wants to be able to use her own license plate on all ancestral Blackfoot lands, which encompasses most of southern Alberta, stretching into Montana, Saskatchewan and B.C.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Craven, however, says the issue goes far beyond license plates."What this is about is genocide, pure and simple," he said. "It's about the right to be a free nation, free people. We have a right to remain as a nation and not be exterminated."Craven,, who also goes by his Blackfoot name Omahkohkiaayo-i'poyi, said he plans to shed light on the Indian Act's purpose of forcing assimilation of Indians into Canadian life--what he calls genocide of the Blackfoot culture."If a (Blackfoot Indian) chooses also to be a Canadian that's fine but you can't force it on us," he said. "We're forcing Canada to look at itself and what's being done to Indians across the country."Craven said he'll take the issue to the Supreme Court of Canada or even the International Court in Hague or United Nations if necessary.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;LETHBRIDGE HERALD The Lethbridge Herald Saturday A, Saturday, January 24, 2004, p.a3[By Lisa Doerksen Lethbridge Herald&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Forcing Blackfoot Nations[sic] Natives to have Canadian insurance on their vehicles is akin to asking foreign travellers to buy Canadian insurance to visit here, says a professor helping]&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;By Lisa Doerksen,Lethbridge Herald&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Forcing Blackfoot Nations[sic] natives to have Canadian insurance on their vehicles is akin to asking foreign travellers to buy Canadian insurance to visit here, says a professor helping a native woman fight a charge of driving a motor vehicle without insurance."It's no different than a motorist from Montana driving onto Canadian lands," said James Craven, a professor at Washington's Clark College, on behalf of Bella Yellowhorn Friday at the Lethbridge provincial courthouse. "They're not required to have Canadian insurance as long as they have some kind of insurance."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The issue stems back to May 1, 2001 when Yellowhorn, a Piikani reserve resident, was pulled over in Lethbridge for not having proper registration for her vehicle. Yellowhorn had outfitted her van with a homemade Blackfoot Nation licence plate.She was later convicted of a charge of not having proper registration and the insurance charge went to trial this week.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Yellowhorn claimed in court she had insurance but could not prove it because she was unable to obtain documents from her van when it was seized and also could not locate the Fort Macleod office she purchased the insurance from.Prosecutor Eric Brooks, who is handling the criminal prosecution regarding the charge, noted the onus is on the accused to provide proof of insurance and Yellowhorn was allowed several adjournments to give her time to gather the information.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Judge Ron Jacobson will hand down his decision on Feb. 9.Yellowhorn said if the case is successful, she wants to be able to use her own licence plate on all ancestral Blackfoot lands, which encompasses most of southern Alberta, stretching into Montana, Saskatchewan and B.C.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In addition to fighting the charge, Craven has launched a constitutional challenge of the Indian Act and Treaty 7 in an effort to have the Blackfoot people recognized as a sovereign nation.Craven told the court Friday the Blackfoot people meet all the tests for a nation under international law, including a stable population, identifiable land and their own identifiable governance.The Indian Act, he said, is little more than a document designed to force the assimilation of natives into Canadian culture--something he calls genocide of the Blackfoot culture."Bella believes that as a matter of her own personal survival she cannot and will not obey any of the (conditions) of the Indian Act," said Craven.He argued the Indian Act allows activity prohibited under international genocide laws, pointing to issues such as residential schools and the high rate of suicide on the reserve.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;However, Crown prosecutor Kurt Sandstrom argued that many of the issues raised by Craven have little to do with the matter before the court--a provincial statute requiring proper insurance to drive in Alberta.Alberta's provincial court is not the right place to launch arguments based on international law, said Sandstrom, a specialist in constitutional and aboriginal law handling the constitutional challenge. "This court does not have the authority to impose a remedy under the international forum."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Reprinted under the FAIR USE Doctrine for educational purposes only and not to be used for any commercial uses.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Lethbridge Herald, Aug. 23, 2002 Log jam&lt;/div&gt;&lt;div align="justify"&gt;By JANINE ECKLUND PORCUPINE HILLS --&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The provincial government has ordered Merle Good Eye to quit harvesting trees from West Sharples Creek in the Porcupine Hills west of Claresholm.He maintains it is his right as a member of the Blackfoot Nation.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;And in spite of a stop-work order from Alberta Sustainable Resource Development and notices tacked to fallen logs indicating they are being seized by government, Good Eye says he plans to continue the harvest he started about two weeks ago."It is our right to take these logs," Good Eye said Thursday. "I have a permit from the proper authorities to harvest." &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;His permission comes, he says, from the hereditary chiefs of the Blackfoot Nation and from band council."I'm being told by my elders and proper authority that this is ours; we can't have foreigners coming onto Blackfoot territory and telling me what to do."The issue goes deeper than the argument over who can harvest timber on Crown land.It goes to the root of animosity between native people and government -- who determines land and access rights.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;James Craven, an economics professor from Clark College in Washington and a Blackfoot, said plans are in place to take legal action against the Canadian and U.S. governments for the commission of international crimes and crimes against Blackfoot law under the 1948 UN Convention on Genocide. Craven maintains the federal governments and their agents in Canada and the U.S. committed genocide by killing members of the First Nations, causing serious bodily and mental harm through daily assaults and the establishment of residential schools and unlawful sterilization of native people."The Blackfoot and other Treaty 7 Nations never surrendered their lands, and the governments and citizens of Canada and Alberta are currently illegally occupying Blackfoot territory," said Craven."We are going to stand. We do not seek anyone's permission to exist as a people. This is Blackfoot land and these are Blackfoot ways."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Details of the legal action can be found on the Internet at &lt;a href="http://www.chgs.umn.edu/"&gt;http://www.chgs.umn.edu/&lt;/a&gt; under "Documents, Narratives and Histories".Good Eye and his employees risk fines and arrest if they continue to harvest timber after the stop-work order was issued.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;A spokesman with Sustainable Resource Development says an investigation is underway and if they refuse to stop, police may intervene and remove them from the area.Susan McManus says the proper process to obtain a logging permit is outlined in the Forest Act."There is an annual timber sale," said McManus. The sale is advertised, and the department contacts directly sawmills and reserves and communities throughout the province."They bid on an auction of land with a sealed tender. They also put in a damage deposit which can go up to as high as $2,000 which is returned if there is proper cleanup and reforestation."Good Eye didn't follow that process. He says he is a skilled logger and plans to clean up and collect cones from the area to grow into saplings for planting next spring"I've logged just about everywhere," said Good Eye."I've logged at Westcastle and Alison Creek and I've never had problems before."I don't know what the problem is. Maybe these logs are too good, maybe they're saving them for someone else."Good Eye said he's been logging since he was a child when he worked for his stepfather harvesting logs with horse-drawn equipment. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Good Eye said he plans to sell some of the logs and use the others to construct homes on the reserve where as many as five and six families are living together because of insufficient housing.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;            &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Monday, December 05, 2005&lt;/div&gt;&lt;div align="justify"&gt; &lt;/div&gt;&lt;div align="justify"&gt;LEWIS AND CLARK TRIBUTES MUST TELL THE TRUTH LEWIS &amp;amp; CLARK -- ON THE TRAIL: LEWIS-CLARK TRIBUTES MUST TELL THE TRUTH, SAYS ANGRY BLACKFOOT -&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Friday, November 24, 2000&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;By DEAN BAKER, Columbian staff writer-&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The rhetoric is still red-hot, even though two months have passed since Jim Craven fired the first verbal shots in an American Indian war of words in Clark County. -The skirmish caused Craven, a Blackfoot tribal judge, to leave a countywide committee that's planning a 200th anniversary for the Lewis and Clark expedition visit here. Now it threatens to grow into an American Indian protest in Vancouver.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"The only thing I mind is lies and cover-ups," said Craven, 54, a Clark College economics professor and an expert and prolific writer on genocide of indigenous peoples. He either quit the committee or was fired by the mayor depending on whom you believe. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"There will be a protest," said Craven, saying he expects 200 Indians to show up in Vancouver to protest mistreatment of the Blackfoot and other tribal people over the past 200 years. "I promise you that." He didn't say when they would come. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Craven left the 20-member Vancouver-Clark County Lewis and Clark Commemoration Committee after using explosive words such as "genocide" in a speech to the committee Sept. 14. He graphically described for the committee the rape and murder of American Indians that followed closely on the heels of Lewis and Clark's odyssey on the Missouri and Columbia rivers in 1803-1806. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;After he spoke, Craven said Vancouver Mayor Royce Pollard fired him from the committee, but Pollard said that isn't so. Pollard said he asked Craven in a private meeting to tone down his language or leave the group. It was Craven's decision, the mayor said. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Fired or not, Craven left. He said the coming of the 31 Lewis and Clark explorers marked the beginning of a campaign against his people. That's not something the Blackfoot celebrate or describe in a polite way, he said. But it wasn't what Craven said that was offensive, Pollard said. It was the way he said it.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"He really had two options," said Pollard, 61. "He had to modify his behavior or he had to leave the committee." &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Craven said this week he's still upset, but not simply from being fired. "If they want to throw me off the committee, that's OK," he said. "I just don't like dishonesty. No one has told me specifically what I said that was offensive. They didn't have the guts. I heard they didn't like my tone. If they don't like my tone, too bad. I don't like their tone either, or their pomposity and arrogance. This is like a cross between Joseph McCarthy and Franz Kafka." &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;He said he's being accused of offenses that are unclear. Craven said he was under a directive from Blackfoot Confederacy Chief Sikapii to tell the Blackfoot story unequivocally and directly, and he did so. Sikapii (also known as White Horse, or George YellowHorn), 62, is a hereditary Blackfoot chief who lives in Fort Macleod, Alberta. He told The Columbian this week that he dispatched Craven to tell the story of the exploitation of his tribe, which followed the coming of Lewis and Clark. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"Under the Bureau of Indian affairs, the U.S. and Canada are racist governments, white people saying we are their children, saying they are going to look after us while they steal our land and throw us scraps," he said. "The Blackfoot pushed Lewis and Clark off their land in present-day Montana", Sikapii said. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Pollard said he respected the grievances of the Blackfoot Confederacy but couldn't abide Craven's manner of speaking. He said it was he who asked Craven to join the committee in hope that he would bring a strong native voice. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"But he didn't help," the mayor said. "These people on the committee were volunteers and they were uncomfortable."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The other American Indian on the committee, however, said he wasn't offended and understood both points of view. Honorary Chinook Chief Cliff Snider said he held a milder view himself and asked Craven to speak softer."I knew that he was rubbing some people wrong," said Snider, 74, who lives in Milwaukie, Ore. "He was coming on strong, and I told him afterwards, 'I think some people are taking offense to what you are saying.' I could see that in the crowd, and I told him, 'I know how you feel, and I know the outrage your tribe feels. I'm just asking you in these meetings to tone it down a little bit.'" &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Snider said he represents 52 tribes along the Lewis and Clark trail, and every one has its own way of viewing Lewis and Clark. Some will join in the commemoration while others may boycott, he said. "I know the Blackfoot still feel their tribe lost in its encounter with Lewis and Clark," he said. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Craven said he respected Snider's point of view, but he had to speak plainly, as a Blackfoot. "We are contemptuous of phony politeness ('smiling with the front teeth while grinding with the back teeth')," wrote Craven in an e-mail to editors of The Columbian. "[We don't believe in] schmoozing and networking, and we are mandated to tell the truth as we know it or believe it, and talk straight; this is often interpreted by those adept at schmoozing and phony politeness as being 'impolite' and 'uncivil.' Indeed history records hundreds of years of whites and sell-out Indians doing some very 'impolite' and very 'uncivil' acts of genocide, while hiding behind masks and postures of 'civility' and 'politeness.'" &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;One committee member, Gerard Smith, a Clark College English professor, said he heard Craven's presentation at an earlier meeting in August and wasn't offended. He said Craven "read from several historic documents which supported his assertion that 18th century U.S.policy included genocide for the American Indian." "I explained (to the mayor) his action was similar to asking a Jew not to speak about the inhumanity of the Nazis," Smith said in an e-mail to the Columbian. "Here's the crux of the matter," he added. "The crimes committed in the name of manifest destiny are no different than the crimes committed in the name of Aryan superiority. Is such language intense? Is such language harassment? The truth can be painful, but it must be spoken."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;But it also stripped the committee of the Blackfoot Confederacy's point of view.&lt;/div&gt;&lt;div align="justify"&gt;- &lt;/div&gt;&lt;div align="justify"&gt;Lawyer challenges the legitimacy of Canadian law over First NationsSubmitted by &lt;a title="View user profile." href="http://auto_sol.tao.ca/user/view/164?PHPSESSID=f43a4db98bb443016ae9214bddb7002f"&gt;eisengrimm&lt;/a&gt; on Mon, 04/26/2004 - 23:18. &lt;a href="http://auto_sol.tao.ca/taxonomy/page/or/9?PHPSESSID=f43a4db98bb443016ae9214bddb7002f"&gt;Canada&lt;/a&gt; &lt;a href="http://auto_sol.tao.ca/taxonomy/page/or/39?PHPSESSID=f43a4db98bb443016ae9214bddb7002f"&gt;Indigenous&lt;/a&gt;Natives not bound by laws of Canada, lawyer argues &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;An Ottawa lawyer is challenging the authority of Canadian governments to apply laws to native people.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Jake Rupert, The Ottawa Citizen, April 25, 2004&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;A judge has agreed to hear a claim that sovereignty over Canadian lands was never fairly transferred in any of the ways recognized by international law. Jake Rupert reports on Michael Swinwood's effort to change Canadian history.It's an issue that has been debated for years in native and legal academic circles but hasn't been answered by Canadian courts, say aboriginal law experts.But it looks like the question will have to be answered soon, after lawyer Michael Swinwood, on behalf of two natives in North Bay charged with fraud, filed a constitutional challenge to the Crown's right to apply the Criminal Code, or any other law, to aboriginal people, and a judge agreed to hear it.Mr. Swinwood says aboriginal people never ceded sovereignty to British or Canadian governments in accordance with recognized international standards such as conquest or purchase.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;To have jurisdiction over people who occupied land first, according to law, sovereignty must be properly handed over, Mr. Swinwood says in documents filed in court. It wasn't, so Canadian governments have no right to enforce their laws on natives, the documents say."The federal government lacks proper legislative authority in the territory it is alleged these illegal acts took place," Mr. Swinwood argues."No treaty has been entered into ... therefore the federal government has no jurisdiction in the territory where these acts are alleged."Mr. Swinwood will ask a judge to "nullify the application" of Canadian laws against natives because, he says, according to the current state of the law, Canada's laws have "no force or effect as against these Indian persons or any other Indian person."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Earlier this year in North Bay, Mr. Swinwood convinced Ontario Superior Court Justice J.S. O'Neill, himself an expert in native law, to hear the challenge and order the government to pay for it.Judge O'Neill found Mr. Swinwood raised "important" legal questions that need answering and ordered the provincial government to give Mr. Swinwood $35,000 in order to argue the case properly.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;"The issues raised ... are of sufficient merit that it would be contrary to the interests of justice for the opportunity to pursue these questions and these issues ... to be forfeited if legal funding is not provided," the judge wrote in his reasons for granting Mr. Swinwood the money."It is to be remembered that the legal community in Canada is only beginning to come to grips with issues involving aboriginal title and rights," Judge O'Neill said.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;After getting the funding order in March, Mr. Swinwood hoped to make his case this spring in front of Judge O'Neill, but the Crown appealed the judge's ruling on the funding application, arguing that the judge should not have granted the money because there is no merit to Mr. Swinwood's assertions.No date has been set for the appeal, but Mr. Swinwood has decided to press ahead with the constitutional challenge, which he'll pay for out of his own pocket and with money collected from native organizations.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In other cases involving native clients charged with crimes, Mr. Swinwood tried and failed to have judges agree to hear the constitutional challenge.Now that a judge has agreed to hear it, the matter is just too important to walk away from over money, Mr. Swinwood said."Like Justice O'Neill said, it's been a long time coming, so it feels good that we're finally getting to table some of our issues," he said."The Indians got messed over here in this part of the world pretty badly, and it's time some one should speak for them. On this issue, it just happens to be me."Those who say that Canadian laws are applicable against Indians in this country don't know their history. We're just pointing this out."&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;If Mr. Swinwood's first argument fails, he has another, darker allegation that he says strips the Crown of its ability to apply its laws to natives.According to his application documents: "The legislature of Canada and Her majesty the Queen deprive themselves of legislative authority by being complicit in the crime of genocide against the Indian Nation ... and have acted and continue to act contrary to their international obligations codified in the convention for the prevention and punishment of the crime of genocide."At the very least, he's asking the judge to find that a 1704 royal proclamation stating that any disputes between natives and government officials should be adjudicated by an agreed upon third party is still in effect.Mr. Swinwood says after exhaustive research and consultation, he has come to the conclusion that Canada simply has no jurisdiction over natives in this country.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;There's no legislation saying so. There's no case law saying so. In fact, the law says the opposite, Mr. Swinwood says."It's an interesting and important question that has not been answered by Canadian courts," said Kent McNeil, a law professor at Osgoode Hall in Toronto who specializes in aboriginal rights.He said there have been some cases in Canadian law, dating back as far as the 1800s, that touched on the issue, but that Mr. Swinwood is the first to take direct aim at the fundamental jurisdiction argument in court.Brad Morse, a University of Ottawa aboriginal law professor concurs."This really will be the first time that these issues are looked at in court, and I think it will be interesting to see what happens," Mr. Morse said.At the heart of Mr. Swinwood's argument is the issue of sovereignty. Under international law, sovereignty is generally gained under three conditions. A government can assume jurisdiction over unoccupied land simply by populating it. Sovereignty also can be formally handed from one government to another after a conquest. Or a government can gain the right to enforce its rules when occupiers of land sign a purchase agreement or treaty relinquishing jurisdiction to the newcomers.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Mr. Morse said Mr. Swinwood's challenge is legitimate because the first two conditions don't apply in Canada, and in the annals of history there is very little evidence of Indians surrendering sovereignty to Great Britain. Where there is evidence of jurisdictional surrender, there is much debate over whether native leaders understood what they were doing when they "signed" treaties and purchase agreements.Although this is the first time Canadian courts will be asked to deal with this issue, courts in other countries already have.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In a landmark case, Australia's highest court found the Crown there has sovereignty over aboriginal people and land despite not having any of the three accepted conditions for jurisdictional transfer. The court found that over time control of the land and people simply eroded away from the country's first people into the hands of the newcomers and should remain there for the betterment of all.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Many years ago, the U.S. Supreme Court found differently. Judges there decided that the U.S. government didn't have sovereignty over natives or native land. However, it ruled that basic human law as defined by U.S. statue applied to all people regardless of their heritage.Some may look at Mr. Swinwood's position as preposterous, but he says without proper government mechanisms in place to address the gross injustices committed upon natives in Canada, he is simply doing the next best thing.He said in a prefect world, government officials would come to the conclusion that they've failed the natives of Canada, and that Canadian laws aren't helping the situation.They would say they're sorry for messing things up as badly as they have, cede sovereignty over vast tracts of Crown land, and let natives live in accordance with traditional spiritual, moral, and legal codes that were working just fine before the white man arrived."We have the law on our side," he said. "We have history on our side. We have morality on our side. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;What's happened hasn't worked. It's time to try something else.""The time has come," he said. "The government has had a lot of time to do this themselves, and they haven't, so we're going to try to force them to by using the courts. I see no reason why we should fail in this.&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;© The Ottawa Citizen 2004&lt;br /&gt;&lt;br /&gt;Posted by Jim Craven (Omahkohkiaayo i'poyi) at &lt;a title="permanent link" href="http://aradicalblackfoot.blogspot.com/2005/01/ongoing-legal-case-in-alberta-most.html"&gt;4:48 PM&lt;/a&gt; &lt;a title="Email Post" href="http://www.blogger.com/email-post.g?blogID=7504250&amp;amp;postID=109270199187099645"&gt;&lt;/a&gt;&lt;a title="Edit Post" href="http://www.blogger.com/post-edit.g?blogID=7504250&amp;amp;postID=109270199187099645"&gt;&lt;/a&gt;&lt;br /&gt;&lt;a name="109683728024027144"&gt;&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://aradicalblackfoot.blogspot.com/2005/01/papers-posted-at-center-for-holocaust.html"&gt;Papers Posted at the Center for Holocaust and Genocide Studies, University of Minnesota; http://www.chgs.umn.edu&lt;/a&gt;&lt;br /&gt;&lt;/div&gt;&lt;div align="justify"&gt;Documents of the "Native American" GenocideJames Craven; Blackfoot Name: Omahkohkiaayo i'poyiProfessor and Consultant, Economics; Chairman, Business DivisionClark College, 1800 E. McLoughlin Blvd.Vancouver, WA. 98663(360) 992-2283; Fax: (360) 992-2863&lt;a href="mailto:992-2863jcraven@clark.edu"&gt;mailto:992-2863jcraven@clark.edu&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Judicial Findings From the Inter-Tribal Tribunal on Residential Schools in Canada (Held June 12-14, 1998 in Vancouver, B.C.). Submitted by James M. Craven, Tribunal Judge (c Copyright July 16, 1998, All Rights Reserved).&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/TRBFND1A.pdf"&gt;Part I - "You Can Recognize a Red Indian by His [or Her] Way of Life, Not by His [or Her] Blood Percentage." Chief Lame Deer, Lakota&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/TRBFND2.pdf"&gt;Part II - Mission of the Tribunal: My Understanding&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/TRBFND3.pdf"&gt;Part III - On the Issue of Ethnocide Versus Genocide&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/Revised_Apology.pdf"&gt;September '00: Indian Affairs Head Makes "Apology".&lt;/a&gt; Comments by Eugene Johnson (Selitz) and Jim Craven (Blackfoot), from AP report by Matt Kelly.&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/Residential_Schools.pdf"&gt;Residential Schools—The Past is Present.&lt;/a&gt; Radio program with James Craven on The United Church, May 2000. Transcription.&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/ChroniclesofEcoimperialism.pdf"&gt;Chronicles of Ecoimperialism: Real Whales, Real People &lt;/a&gt;by James Michael Craven (Blackfoot Confederacy) (Click &lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/makahartcle1.htm"&gt;here&lt;/a&gt; for HTML version)&lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/BFPaper2.pdf"&gt;Paper on Blackfoot Nation&lt;/a&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/IndictmentRev1.pdf"&gt;Indictment Of The Federal Government Of The United States Of America, The Federal Government Of Canada, Designated Agencies Of The Governments Of The United States Of America And Canada, Representatives Of The British Crown And Named Churches Resident In The United States Of America And Canada, For The Commission Of International Crimes And Crimes Against Blackfoot Law, And Petition For Orders Mandating The Proscription And Dissolution Of Named International Conspiracies And Their Organizations By James M. Craven, Member And Named Prosecutor, Sovereign Blackfoot Nation.&lt;/a&gt;&lt;a href="http://www.chgs.umn.edu/Histories__Narratives__Documen/Documents_on_Native_American_G/BlackfootDraftConstitution.pdf"&gt;Draft Constitution of the Blackfoot (PIIKANI) Nation&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;&lt;br /&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;/div&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-4585410629144782523?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/4585410629144782523'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/4585410629144782523'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/06/ongoing-legal-battles-proving-reality.html' title='Blackfoot Aikido: Ongoing Legal Case Against Genocide'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://2.bp.blogspot.com/_LbIlP2wfBuY/TA8WAdl7YCI/AAAAAAAAA3g/guCTIyL7Q54/s72-c/insurgents-290.gif' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-953070373751604699</id><published>2010-04-25T13:41:00.000-07:00</published><updated>2010-06-11T16:36:32.384-07:00</updated><title type='text'>INTERNATIONAL EDUCATION AND IMPERIAL PENETRATION, COOPTATION AND CONTROL Presented in Beijing, China May 20-21, 2010</title><content type='html'>&lt;div align="center"&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/S9Sp17ekV1I/AAAAAAAAA3I/lq2ONrNq8CQ/s1600/flagcorp.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 312px; DISPLAY: block; HEIGHT: 234px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5464178991871317842" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/S9Sp17ekV1I/AAAAAAAAA3I/lq2ONrNq8CQ/s400/flagcorp.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/S9Sp1s1OLdI/AAAAAAAAA3A/ghOmFH42-7I/s1600/crossflag.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 121px; DISPLAY: block; HEIGHT: 116px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5464178987939802578" border="0" alt="" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/S9Sp1s1OLdI/AAAAAAAAA3A/ghOmFH42-7I/s400/crossflag.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/S9Sp1fpAA_I/AAAAAAAAA24/GWF9xw-zSQc/s1600/bush_sheep.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 400px; DISPLAY: block; HEIGHT: 356px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5464178984398881778" border="0" alt="" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/S9Sp1fpAA_I/AAAAAAAAA24/GWF9xw-zSQc/s400/bush_sheep.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://2.bp.blogspot.com/_LbIlP2wfBuY/S9Sp032MmzI/AAAAAAAAA2w/DoU43bPYQlE/s1600/1sheep.jpg"&gt;&lt;img style="TEXT-ALIGN: center; MARGIN: 0px auto 10px; WIDTH: 235px; DISPLAY: block; HEIGHT: 320px; CURSOR: hand" id="BLOGGER_PHOTO_ID_5464178973716814642" border="0" alt="" src="http://2.bp.blogspot.com/_LbIlP2wfBuY/S9Sp032MmzI/AAAAAAAAA2w/DoU43bPYQlE/s400/1sheep.jpg" /&gt;&lt;/a&gt;&lt;br /&gt;-&lt;br /&gt;&lt;em&gt;&lt;strong&gt;International Education and Imperial Penetration, Co-optation and Control.&lt;br /&gt;&lt;/strong&gt;&lt;/em&gt;&lt;/div&gt;&lt;div align="center"&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;By James Craven/Oomahkohkiaaiipooyii  and Keith Chiefmoon/Onistaya Kopi&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Paper presented at the International Conference on "Migration in China and East Asia: Experience and Policy", May 20-21, 2010 at the Minzu University, Beijing, China, at the invitation of the Institute of Ethnology and Anthropology of the Chinese Academy of Social Sciences"&lt;br /&gt;-&lt;br /&gt;“The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country…We are governed, our minds molded, our tastes formed, our ideas suggested, largely by men we have never heard of…Our invisible governors are, in many cases, unaware of their fellow members in the inner cabinet…in almost every act of our daily lives, whether in the sphere of politics and business, in our social conduct or our ethical thinking, we are dominated by a relatively small number of persons…who understand the mental patterns and social processes of the masses. It is they who pull the wires which control the public mind, who harness old social forces, and contrive new ways to bind and guide the world. (Edward Bernays) &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;“If we understand the mechanism and motives of the group mind, is it not possible to control and regiment the masses according to our will without their knowing about it? The recent practice of propaganda has proved that it is possible, at least up to a certain point and within certain limits.” Edward Bernays &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Introduction&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The historically generated and globalized systems of colonialism and neo-colonialism, as in the cases of imperialism and neo-imperialism, carry common denominators (nouns colonialism and imperialism) because they have some fundamental features in common. They also have some features that are different—hence the adjective “neo” differentiating them from the classical forms. What they all have in common is that they are all systems that belong to specific historical periods, and, they all involve control, domination and exploitation of some regions, nations and peoples by others. Each type of system incorporates specific, historically determined, dynamic, formulae or algorithms, of direct and indirect, levels, structures and specific forms, of both hard and soft power . The strategic goals of colonial and imperial powers involve penetration, control, domination and exploitation of nations, regions and peoples of the “peripheries” for the benefit of the policies and expanded reproduction of the metropolitan colonizing or imperial power centers.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Classical colonialism and imperialism historically, have involved the more direct and physical penetration, taking, settling, holding and ongoing control of foreign territory through both distant and localized projections and transmissions of hard power; with some, but few, forms of soft power to follow. Generally neo-colonialism and neo-imperialism, involve projections of more indirect, and “softer” forms of power (economic, political, legal and cultural) from more distant bases transmitted through “dependent” and “captive” localized institutions and elites, with threats of hard power (overt military and covert operations) projections at the ready and certainly used when needed.&lt;br /&gt;-&lt;br /&gt;Even with decreasing costs of transport and communications globally, imperial powers prefer the more distant and softer forms of power (the “velvet glove”) over the more direct, localized and overtly brutal forms of hard power (the “iron fist”). This is not only due to the fact that imperial overreach and high costs of standing foreign bases and settlements overseas create fiscal and other crises within and throughout the metropolitan colonial and imperial centers, but, also, because the contradictions are more intense and naked, and the real exploitative nature and real winners and losers of imperial or colonial rule, are much clearer and naked with the more direct and brutal forms of hard power projections. The inevitable “collateral damage” on non-combatants that comes inexorably with hard power projections often serve to recruit rather than dampen, resistance to foreign domination and is not consistent with winning “hearts and minds” in the peripheries.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Another factor in the increasing use of “soft power”, with international education at the forefront, is that the technologies of more indirect, covert, subliminal and softer forms of coercion, influence, “education” and persuasion are increasingly sophisticated, harder to detect, and, more effective, as they allow and facilitate the exploited to more directly, and even “voluntarily”, participate in their own exploitation. As the martyred South African freedom fighter Steve Biko put it: “The most potent weapon of the oppressor is the mind of the oppressed.” And as Johann Wolfgang von Goethe put it: “None are more hopelessly enslaved as those who falsely believe they are free.”&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;At the core of the production functions of all social formations, and of both hard and soft power and the goals of their application, is education including international forms. Education provides the technical skills and personnel with expertise needed to develop the technologies of both hard and soft power as well as the most effective means for their global projections. Education sets the frames for what we are prepared to use our senses to discover (worthy versus unworthy topics) or even consider. Education shapes the prisms (paradigms) through which we use our senses, decide what of the data gathered by our senses we are likely to accept and reject, and, what sources and what “authorities” we are prepared to access, accept or reject. Education shapes how we see ourselves and our own socioeconomic and politico-legal systems relative to how we see others and their respective systems. Education shapes our views of what is sacred and what is taboo. Education shapes our views of history and which aspects of our own history or the histories of others are worthy of focus and consideration . Education shapes our view of what is science and scientific method and how they are conducted and applied. Education shapes what we take to be our dominant “culture”, values, and imperatives of survival and expanded reproduction of the systems we live under. Education provides the incomes for mass consumption as well as the tastes and preferences shaping what we consume; and what we choose or are induced and/or seduced to consume, both reflects and shapes, our dominant values as well as what we need to produce, how to produce it, and, for whom, production and resource allocations shall take place. Education teaches what words are worth knowing and using and which not; and education shapes what words mean or do not mean—including the concept of “education” itself.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;According to the neoconservatives (NC) and neoliberals (NL) in the U.S. and elsewhere, World War IV, the global war against terrorism, has been underway for some time. That begs some fundamental questions: What was or is World War III? When did it begin? Is it still underway? How is “victory” defined? &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Many of the neoconservatives, and neoliberals too, see World War III as a global war between systems and ideologies for “Hearts and Minds”; and, according to them, it has been underway since around 1980. According to these forces, socialism and communism are “existential threats” to capitalism and what they euphemistically call “democracy”. The neoconservatives and neoliberals too, see this global war between systems and their respective ideologies as a long and protracted one that will only end with the final and irreversible “triumph” of capitalism over socialism, and Western-style political pluralism, which they equate with “democracy” over single-party rule. They understand very well that the types of people, institutions, relations, and values necessary for socialist construction and its defense are very different than those necessary for the “social capital” and expanded reproduction of capitalism on a global scale (ultra-individualism, mass consumerism, selfishness, materialism, inability to delay gratification, get-rich-quick, etc).&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;International Education in History&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The use of International education by colonial and imperial powers as an instrument of power projection and rule has a long history. Even in Roman times, colonial and imperial power projections and intentions not only often brought with them genocide, but followed the two fundamental phases of genocide outlined by the originator of the word “genocide”, Polish Jurist Raphael Lemkin: 1) destruction of the “national pattern” of the groups targeted for genocide and/or foreign control over; 2) imposition of the national pattern of the colonial or imperial power conducting the genocide and/or power projections.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Even today, some of the top universities specializing in geography, anthropology and foreign languages are found in Great Britain as the British colonial and imperial powers understood what the U.S. Imperium is only beginning to understand: that when you have direct rule and occupation of foreign territory by large numbers of well-armed foreigners, in fortified military bases with extra-territorial powers over indigenous peoples, it makes it very clear to the locals who are the rulers and who are the ruled. They also understood that overseas bases can be costly, can generate fiscal and other crises in the home metropolitan social formations, and, when surrounded by potentially hostile indigenous populations, are highly vulnerable to attack. So the British set up the “D.C” or “District Commissioner” system where only a relatively few highly trained colonial administrators ruled through networks of local elites (mostly mixed-race and lighter-skinned indigenous persons) recruited and trained in the universities of the colonial and imperial powers, trained and installed to rule and aid in the projections colonial and imperial power over “their own” people. The British, like the U.S. today, not only preached they were part of a global “civilizing mission”, but projected their own political, economic, cultural, legal and social institutions, values and systems as “universal templates”, that all nations must copy, if they were to have any hope of the levels, forms and rates of growth of “civilization” said to be modeled by the colonial and imperial powers.&lt;br /&gt;-&lt;br /&gt;Missionaries, then as today, operating under various covers and fronts , including as “international educators”, were sent in as subcontractors in genocide and front men (and women) for colonial and imperial power projections and control . They followed the typical pattern captured in the phrase common among Indigenous Peoples of the Americas: “The 3-B system” or “Bible, Buck (dollar) and Bullet”. First the Bible, accompanied or followed by commercial interests, followed by military presences (troops and support bases) to facilitate more penetration and protect that which has occurred. The British, like many of their missionaries, understood, like the Roman Emperor Constantine who established Christianity as the dominant religion of the Roman Empire at the Council of Nicaea in the early fourth century AD, that in destroying existing indigenous institutions (“national patterns”) and replacing them with others, starting with, and then gradually co-opting, the existing institutions, such as sacred pagan holidays and rituals, was far more effective in ultimately smashing them and replacing them with others than in putting them directly and openly under siege . This meant that those seeking to smash the indigenous “national patterns” had to understand them, as well as local indigenous languages and/or had to hire, indoctrinate and train locals to do their bidding for them under various fronts and disguises .&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Like the British, the U.S. Imperium is looking to the future and to long-term power projections and more apparently indirect and covert rule. They have set up “educational exchanges”, bringing in selected elites and individuals with potential to become elites in their home countries or elsewhere, hungry for educational opportunities and statuses not available in their home countries, to be indoctrinated with world views, practical tools and paradigms consistent with colonial and imperial interests and their power projections. Many of these elites were specifically groomed and equipped with educational and other backgrounds that would not only allow them to capture and hold positions of power in nominally local, indigenous and “de-colonized” institutions, but also to act as educators, politicians, scientists, missionaries, carriers of culture and influence and intelligence agents against local populations, in service of foreign powers as well.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;International Education Today&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Foreign Language Studies and Exchanges&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;With the pace, scope and depth of globalization increasing daily, the imperative for international education is seen as more critical today than ever before. Increasingly, the most remote peoples, regions and social formations are being integrated and articulated within a dynamic global economy run in accordance with capitalist principles and imperatives. Not only are more non-English-speaking people under the imperative to learn English, but many English-speaking people are under the imperative to learn other emerging influential languages as well. All sorts of programs and exchanges are being set up, some actually doing what they openly claim to be doing, some not. These programs are not only about learning different languages, but are involved in cross-cultural awareness, establishing cross-border relationships and even obtaining work abroad when unemployment rates rise in some home economies.&lt;br /&gt;-&lt;br /&gt;Not all of the cultural and linguistic study and exchange programs are benign . In several of his books, former “economic hit man” (who worked for the U.S. National Security Agency helping to lure poor nations and despotic regimes into impossible-to-escape debt peonage) John Perkins discusses the Summer Institute of Linguistics (SIL) now called SIL International, an ultra-conservative Christian evangelical group in the U.S. that specializes in the documentation, study of and training in rare and sometimes near-extinct Indigenous languages. They not only hold contracts to train Western intelligence services in these rare languages, they also allegedly train large transnational companies, like oil companies, to penetrate indigenous lands and cultures to force or co-opt them to turn over resource-rich lands and their resources to foreign companies by offering to move them to missionary reservations and to provide food, medicines and clothing in return for deeds to their lands. They are also involved in translations of the Bible into rare and near-extinct languages. Further, when one learns a new language, the specific constructs, terms, sources, vocabulary that one is exposed to and learns, along with those one is not exposed to and does not learn, serve to shape the paradigms, values, levels of useful knowledge and perspectives of that person learning with feedback effects on that person’s ideology, meanings of words and perspectives on various issues and interests even when operating in his or her own native language and in his or her own culture.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Foundations, Institutes and “Expertise”&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;There is a plethora of both established and new global foundations and institutes like the National Endowment for Democracy (NED), Ford Foundation, Rockefeller Foundation, etc., that organize international education exchanges, produce and distribute glossy publications, as well as operate as fronts (“think tanks”) for imperial interests and intentions. They have the capacity to give selected and favored academics and students forums and visibility for their academic publications, provide lucrative grants, provide research and teaching positions at prestigious schools and “think tanks”, and to establish all sorts of global working relationships and friendships that may be beneficial to imperial interests. They are presently looking to the future to find and cultivate young scholars and functionaries, potential future elites that can be recruited in the present to be placed in positions where they can rise in their respective countries and serve imperial interests in the future. Young academics are especially vulnerable to approach and manipulation in that as they are often young and have recent graduate degrees but little experience or publications, they can be given assistance with generating and publishing academic publications, in the right venues, that will fast-track them to upward mobility in academia at home and abroad. The young are often caught in a “Catch-22” trap where they cannot find employment or research opportunities because their resumes are light on experience or degrees from prestigious schools, and their resumes are light because they cannot find employment or research opportunities; these foundations offer them “Faustian Bargains” that allow them to instantly escape such traps or dilemmas. These foundations and institutes are also able to influence both foreign and domestic research directions, content and applications in service of imperial paradigms and interests and to shape perspectives on the debates and issues of the times.&lt;br /&gt;-&lt;br /&gt;Leading “experts” with big names from prestigious educational institutions in the West, are brought in to the peripheries and marketed as if they were like any other commodity. Often, when one examines their work, especially in the social sciences and arts, their work is really quite pedestrian and not at all “advanced” from what scholars in the peripheries are doing. But there is the power of branding and “brand names” (individuals and institutions) that allow them to be invited and to form relationships and associations to serve imperial interests well into the future. They also act as “attractors” to and “spotters”, and even “recruiters” of young scholars of the peripheries who have heard of them by reputation as authors of texts or touted research, or as individuals with impressive titles and credentials and who seek their patronage to secure their own futures, often in the imperial centers to which they hope to emigrate, work and where increasing percentages remain . They are agents of brain drains that loot some of the most skilled and talented to the metropolitan centers of the Imperium.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;All sorts of Non-governmental Organizations (NGOs), more than 50,000 today, are involved in international education and exchanges. They are generally organized around specific single issues and are often titled to show their particular issues or areas of focus . Some not only act as fronts for various Western commercial and intelligence interests, but they help to dissipate or co-opt individuals with “progressive” or system-threatening ideologies and passions with forms and levels of “divide-and-rule”and illusions of effective action that often go with, and yet dissipate or mitigate or co-opt, political activism on single-issue causes or politics. They offer opportunities for travel, for global contacts, research and data bases , for internships, to embellish meager resumes, and, to give some comfort with the illusion of “doing something” about various global issues of the times. They recruit foreign students with specialized skills (foreign languages, mathematics, science, knowledge of foreign cultures and politics, computers, etc) in subjects that the educational systems of the West simply cannot or will not equip students from the Western nations to acquire and apply . They sometimes offer “in-house” and customized academic degrees and certificates that carry prestigious titles and are associated with prestigious educational, business and research institutions in the West and abroad. The give educational and politico-economic institutions in the periphery instant “credibility” and enhanced global standings with associations and exchange programs with prestigious institutions of the Western Imperium.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Textbooks, “Culture”, and Educational Hardware and Software&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In the areas of exporting and adapting to local uses, textbooks, literature, music, fashion, movies, television programs and educational and other hardware and software, as forms of imperial soft and hard power projections, the U.S. and Western allies are making and stepping-up major innovations and campaigns. In all cases, major “discoveries” in brain science, cognitive psychology, anthropology, experimental psychology, economics, political science, pedagogy and other disciplines, associated with universal, as well as culturally-specific triggers, tactics and mechanisms of persuasion and the shaping of ideologies and agenda, are being incorporated. What is carefully, calculatingly and ideologically controlled in all these instruments of soft and hard power are the allowable versus non-allowable, content, scopes and depths of coverage .&lt;br /&gt;-&lt;br /&gt;This is especially fertile ground as many teachers and researchers are, or feel, overworked, and thus hardware and software, marketed as packaged, glossy, structured, “state-of-the-art”, prestigious “brand name”, “easy-to-use-and-apply”, “labor-saving” and comprehensive, plus from the West and thus supposedly “superior” and “advanced”, are easily induced to adopt and use these tools marketed as labor-saving but in essence carriers of imperial culture and interests. Young graduate students, with heavy workloads, often assigned to teach undergraduate and foundational courses in various academic disciplines, are especially targeted by these marketing approaches. Plus, built into some of the hardware and software being exported are “backdoors” that allow surveillance of computers and their connections and applications from a distance. In addition, one of the oldest tricks in marketing is to design and price hardware and software to as to cause dependence on critical supporting services and complementary inputs from abroad.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Fashion, music, literature, movies and television programs are also used as instruments of soft and hard power. Embodied in their calculated content, forms and applications are the central message that “foreign” means superior, to be emulated and preferred, and that which is part of the culture and history of the peoples of the “peripheries” is “inferior” and, even the major alleged “cause” of any alleged “backwardness” in the nations of the peripheries. Not only are very lucrative export and domestic markets created with these types of commodities, but, in addition, the values and priorities associated with capitalism and the mass consumerism pushed by the imperial powers, can and do create forms and levels of debt peonage, dependence and loss of autonomy. People in the nations targeted by imperial interests, are learning, as are the peoples of the metropolitan centers, that when one defines “personal freedom” and prosperity in terms of what and how much one “owns” and consumes, instead of a person owning things, the things, and those who sold and financed them, may well wind up owning that person. These instruments of soft power articulate with and reinforce the forms of soft power in education as many young students, for developmental and other reasons, are attracted to “exotic” or “foreign” fashions, music, literature, movies and television and they may devalue their own societies that perceive to have failed to value and provide these trappings of “civilization” and “progress”.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Exponentially increasing—in scope, depth and sophistication---innovations in optics, audio, graphics, film technique and genres, and, the like, applied to movies, television, music, literature, art and fashion, make the “suspension of disbelief” and escape from the realities of life easier and easier to effect on a mass level. Films and television get increasingly graphic and sensational with new and more intense levels of titillation (modern versions of the Roman “bread and circus”) are being demanded and those demands met. The same technologies employed to make masses “suspend disbelief” when they go to movies or watch television can be employed and are employed to create and nurture other kinds of beliefs in service of imperial interests. They are designed not only to indoctrinate, not only to draw in and titillate audiences with the “exotic” typically not found in local cultures, they are also designed to undermine and eventually destroy beyond recognition the indigenous cultures seen as obstacles to imperial expanded reproduction.&lt;br /&gt;-&lt;br /&gt;Conclusion&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;By all accounts, in the U.S. and its allies, are increasingly eschewing, if possible, forms of hard power and the actual taking and holding, physically, of foreign territory. When hard power projections are necessary, the U.S. Imperium is developing more agile, rapid, flexible, precise, “smart”, transitory and lethal weapons and deployment capabilities rather than physically occupying and holding large areas of foreign territories. They are focusing more and more on developing very sophisticated forms soft power and methods of soft power projections and their applications for the reasons that have been discussed previously along with other reasons. But imperial soft power projections are not really that “soft” and non-coercive. If we define “coercion” as the force of obtaining consent or causing someone to act according to the will of others without fully informed and voluntary consent, then forms of soft power, especially when developed and applied to have subliminal effects or to limit or shape information to cause someone to act in accordance with the will and interests of others, then such power is also very coercive with its true concealed coercive powers but another coercive instrument.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;There is no doubt that international education offers many attractive and actual benefits for all involved and is imperative in a world of globalization and increasing interdependence, integration of nations, regions and peoples of the global economy. But the object of imperial soft power is to develop and assert the features, values, imperatives and interests of the imperial social formation as a universal template for all to emulate or to be in perpetual peril (subject to move overtly hard and coercive forms of power) with the failure to do so. With global crises and imperial powers increasingly cornered with mounting internal fiscal crises and socio-cultural-political decay, both the forms of soft and hard power projections are likely to be more reckless and desperate; the more one has and has acquired, the more one has to lose. Imperial power projections, like earthquakes and hurricanes, often with even more disastrous effects on both the victims and power projectors alike than those of hurricanes and earthquakes, cannot be stopped at present but can be understood. And it is in understanding their nature, origins, methods, instruments and intentions that those who are the objects and targets of these power projections can best protect themselves and their own sovereignty, self-determination, independence, cultures and socio-economic and politico-legal systems from gradual sabotage, erosion and eventual overthrow.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;END NOTES&lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;[1] The term “international education” is a general or all-inclusive term for the subjects, priorities, agenda, pedagogy, breadth, depth, relationships (“guanxi”) and physical/human/social “capital” associated with various educational programs.&lt;br /&gt;&lt;br /&gt;[2] Bernays, Edward, “Propaganda”, Ig Books, Brooklyn, NY, 1928 and 2005 pp. 37-38; Edward Bernays, along with Walter Lippman were “credited” with being the pioneers of and leading contributors to the “science” of techniques of modern propaganda, advertising and persuasion employed in modern international education. Bernays took the approach that the most effective persuasion and propaganda was that which created the set of values, beliefs and tastes that led a person to believe that his choices were his own and not influenced by others. Bernays sought to create advertising and other forms of propaganda and persuasion that would not cause a person to jump up and go to a store to buy a particular product or brand, but that would cause him to be in a situation that demanded a particular product that would lead that person to the product that would then recommend itself. Bernays never really addressed the naked contradictions in his own statement vis-à-vis having a protecting a “democratic society” on the one hand, and, or versus, the ongoing and conscious “manipulation” of the masses by hidden elites on the other hand.&lt;br /&gt;&lt;br /&gt;[3] “Hard Power” refers to instruments of covert and overt force and direct coercion. These may include war, military power, embargos, proxy military forces, denial of aid, sanctions, coercive diplomacy, bribery, debt peonage, alliances, and various kinds of covert operations. “Soft Power”, a term attributed to Joseph Nye of Harvard University, but actually originating with Chinese philosophers like Lao-tzu, refers to the power that comes from attraction and cooptation: the attractiveness of dominant economic, political, cultural, ideological and legal practices, relations, institutions and systems of one social formation acting to influence, draw in and co-opt the citizens, dynamics and trajectories of another targeted social formation. The new term “Smart Power” is now being touted by the Obama Administration to refer to the “optimum” combinations of hard and soft power that best achieve imperial strategic objectives which include the disguise of hard and soft power projections, their effects and in whose service (class interests) they are employed. Soft power can be and is used by non-imperial and socialist social formations powers such as China for ostensibly hegemonic purposes (see Kurlantzick, Joshua, “Charm Offensive: How China's Soft Power is Transforming the World”, Yale University Press, New Haven, 2007 an. analysis of China's use of soft power to gain influence in the world's political arenas. and Young Nam Cho and Jong Ho Jeong, "China's Soft Power," Asia Survey,48,3,pp 453–72)&lt;br /&gt;&lt;br /&gt;[4] In the West, particularly in the U.S., all sorts of new approaches and frontiers of “Brain Science” are being explored (by neurobiologists, cognitive psychologists, experimental psychologists, anthropologists, economists and biochemists), with the intent of finding new, more effective and more subliminal neuro-physiological mechanisms that can be used for more effective persuasion, mind control, interrogation, indoctrination, propaganda, marketing, political campaigns and “manufactured consent”. They are looking for both the universal and culturally-specific neuro structures, connections (synapses) triggers and physiological responses associated with various stimuli (colors, patterns, words, ideas, images, humor, etc) as they typically, and often subliminally excite or inhibit various neuro structures, chemicals (e.g. nor epinephrine, dopamine, serotonin, acetylcholine, histamine) , and processes associated with pleasure, pain, fear, familiarity, fight-or-flight, and other responses (e.g. cortico plasticity, neurogenesis, neural differentiation).Their work is increasingly being incorporated into marketing, design and content of educational hardware and software, textbooks, political campaigns. For an overview see: Gardner, Daniel “The Science of Fear: How the Culture of Fear Manipulates Your Brain”, Plume Books, N.Y. 2009; Shermer, Michael “The Mind of the Market: How Biology and Psychology Shape our Economic Lives”, Holt Books, N.Y. 2008 and “The Science of Good and Evil: Why People Cheat, Gossip, Care, Share, and Follow the Golden Rule”, Holt Books, N.Y. 2004; Ariely, Dan “Predictably Irrational: The Hidden Forces that Shape our Decisions; Revised Edition”, Harper Books, N.Y. 2009.&lt;br /&gt;&lt;br /&gt;[5] As Napoleon Bonaparte put it: “History is merely the fable that has been agreed upon”.&lt;br /&gt;&lt;br /&gt;[6] The term “World War III” was allegedly coined by Pak Bo Hi, formerly of the South Korean CIA (KCIA) and a close lieutenant of the cult leader Moon Sun Myung, head of the so-called Unification Church, a Theo-fascist cult with extensive resources and a global reach through various fronts, who characterized “World War III” as a global war, between systems and ideologies, socialism versus capitalism, as a protracted global war, for “hearts and minds”.&lt;br /&gt;&lt;br /&gt;[7] By “existential threat” it is meant that a certain system or ideology is deemed a strategic threat merely by its existence even without any covert or overt acts of aggression or threats by that system or ideology against others. Those who use this concept of “existential threat” understand, and intend, that when systems, values and institutions of one system outperform those of another in terms of what matters most to the masses, they can and do act as “attractors” (soft power) of people and allegiances to new systems away from others. They intend that capitalism, their versions of Western “culture” and nominal political pluralism (equated with “real democracy”), will act as attractors of the allegiances of peoples away from socialism or any forms of indigenous sovereignty, self-determination and independence. Even as China has been a leading creditor of the U.S., and even as China has not given signs of any hegemonic intentions or hostility against the U.S., even as China has been a victim of terrorism including by Al Qaeda, Bob Woodward, in his book “Plan of Attack”, Simon and Schuster, N.Y. 2004: “When all the intelligence was sorted, weighed and analyzed, Tenet [then head of CIA] and Pavitt agreed there were three major threats to American national security. One was Osama bin Laden and his Al Qaeda terrorist network…A second major threat was the increasing proliferation of weapons of mass destruction, WMD—chemical, biological and nuclear…The third was the rise of China, especially its military, but that problem was five to fifteen years away” (p. 12) It is quite clear that the policy makers in the centers of the U.S. Imperium do not believe in the peaceful competition yet coexistence of differing socioeconomic and politico-legal systems and regard the mere existence of socialism anywhere as a threat.&lt;br /&gt;&lt;br /&gt;[8] The term “social capital” has come back into new usage and meaning relative to its origins. Since in mainstream economics “capital” means anything that has been produced and used to produce something else, then physical capital refers to tools and the like, human capital to human skills, education and experience, and social capital refers to institutions that foster hope, trust, social cohesion, cooperation and buying into the dominant system and its core values and relationships. Among neoclassical economists they now use the term to refer to relationships of reciprocity (you do for me and I return the favor and we both maximize our individual utility functions by appearing to cooperate, yet we remain, it is alleged, “individualist maximizers”). Education is not only central to and part of the definition of human capital, it is essential to the development, content and protection of the social capital of systems as well.&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;[9] Lemkin, Raphael, “Axis Control in Occupied Europe”, Carnegie Endowment for International Peace, Washington, D.C. 1944; Genocide is defined as: ...any of the following acts committed with any intent to destroy in whole or in part, a national, ethnical, racial or religious group, as such: (a) Killing members of the group; (b) Causing serious bodily or mental harm to members of the group; (c) Deliberately inflicting on the group conditions of life calculated to bring about its physical destruction in whole or in part; (d) Imposing measures intended to prevent births within the group; (e) Forcibly transferring children of the group to another group. By “national pattern” it is meant the dominant institutions, cultures, relations, power structures, systems of governance and traditions of a given nation.&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;[10] Freedom of religion is protected by the Constitution of China; but cult practices and intentions are not and for good reasons. Although some mainstream religions like Roman Catholicism have powerful cults like “Opus Dei” within them, mainstream religions can be differentiated from cults in that typically cults, unlike the mainstream religious denominations: a) have closed and layered dogma with followers allowed to know true dogma and intentions of the cult only in stages according to how trusted the followers are; b) covert, coercive and deceptive recruitment practices; c) internal controls for monitoring and deterring exits of members; d) various forms of calculated covert and overt mind control and programming; e) hegemonic intentions and intolerance for the very levels of diversity of thought and religious pluralism that they demand for themselves; f) coerced isolation from family members and friends not in the cult; g) covert rituals and practices and retribution against those who reveal them; h) hidden agenda and ultimate objectives known only to trusted insiders; i) a charismatic and autocratic leader with absolute, unquestioned and unquestionable authority. An example of covert intentions from one of the “sacred texts” of the Mormons:&lt;br /&gt;&lt;br /&gt;"You will see the constitution of the United States almost destroyed. It will hang like a thread...A terrible revolution will take place in the land of America...[T]he land will be left without a Supreme Government...[Mormonism] will have gathered strength, sending out Elders to gather the honest in heart...to stand by the Constitution of the United States...In these days...God will set up a Kingdom, never to be thrown down...[T]he whole of America will be made the Zion of God." (Joseph Smith, May, 6, 1843, founder of Mormonism, quoted in "One Nation Under Gods: A History of the Mormon Church" by Richard Abanes, Four Walls Eight Windows Press, NY. 2002, p xvi)&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;"Listeners of KSL Radio's "The Doug Wright Show" were surprised on November 9, 1999 when Wright's guest, Republican Senator Orrin Hatch (a devout Mormon) quoted the infamous "White Horse" prophecy. The prediction by Mormonism's founder, Joseph Smith, contains what has always been the Mormon American Dream--i.e. the transformation of the U.S. government into a Mormon-ruled theocracy divinely ordained 'not only to direct the political affairs of the Mormon community, but eventually those of the United States and ultimately the world." (Ibid.p.xvii)&lt;br /&gt;&lt;br /&gt;[11] This pattern continues today with many “mainstream” religious denominations and some cults as well, continue to offer educational exchanges and programs that act as fronts for economic, political, cultural, military and intelligence power projections from metropolitan centers of the Imperium to the targeted regions of the periphery. Their names often change as they are exposed, but some like the Mormons, Scientology, the Unification Church under Moon Sun Myung, Falun Gong, Jehovah’s Witnesses, Lyndon LaRouche, wealthy, virulently anti-communist, ultra-conservative, pro-capitalist, and often heavily connected with or used by Western intelligence services, retain their parent organizational names and operate through fronts with “high-sounding” names, to conceal their true origins and intentions. Some organizations like the Cult Awareness Network (CAN) have gone bankrupt and have been taken over by cults themselves (Scientology) but still give some useful lists of currently operating cults (their competitors) and others that have taken over what the Cult Awareness Network used to do before being taken over (International Cultic Studies Association or ICSA &lt;a href="http://www.factnet.org/cris_org.htm).%20These"&gt;http://www.factnet.org/cris_org.htm).%20These&lt;/a&gt; cults, along with “mainstream” religious denominations, mostly Protestant and Evangelical, are increasingly involved in teacher exchanges and “Teaching English Abroad” programs to nations hungry for mass education in English the lingua-franca of global politics, culture and economics; they not only raise money for their respective institutions, but act as spotters for local men and women to be recruited as local agents for them as well as to serve as agents for foreign intelligence services and commercial interests.&lt;br /&gt;&lt;br /&gt;[12] The exception to this pattern of practices was the British and U.S. systems of Indian Residential and Board Schools in the U.S. and Canada where they had a slogan that captured the two phases of genocide referred to by Lemkin: “Kill the Indian, Save the Man”. In these cases, “education” meant a direct, violent, overt and unapologetic assault on the “national patterns” of the Indigenous nations with only marginal or ersatz attempts to impose any “national pattern” or integrate Indigenous peoples into the dominant “national pattern” of the colonizing or imperial powers. See Churchill, Ward, “Kill the Indian, Save the Man: The Genocidal Impact of American Residential Schools”, City Lights Press, San Francisco, CA, 2004.&lt;br /&gt;&lt;br /&gt;[13] In the context of China, Martin Jacques reports: “Until 1900 the idea of reform was virtually always articulated within a Confucian framework—with an insistence on the distinction between Chinese ‘essence’ and Western ‘method’ (or, in the famous phrase of Zhang Zidong (1837-1909) ‘Chinese learning for the essential principles, Western learning for the practical applications.’) Jacques, Martin “When China Rules the World: The End of the Western World and the Birth of a New Global Order”, Penguin Press, N.Y. p.90; Among the foreign influenced uprisings in Chinese history, the Taiping Uprising (1850-64) that cost an estimated 20 to 40 million lives, was according to the historian Paul Cohen, guided by an ideology that was a ‘bizarre alchemy of evangelical Christianity, primitive communism, sexual Puritanism and Confucian utopianism’. (Quoted in Jacques, Martin, Ibid. p.87).&lt;br /&gt;&lt;br /&gt;[14] This was taken from the internal bbs system of one of the top universities of China in 2006 where significant changes were made after this message, from a former teacher of English left this message: From the bbs system at [deleted] University, China: &lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div align="justify"&gt;Hi! How are you? I hope you are doing well in school and feeling happy. I am back in New York now and miss all my students at [deleted] very much. But there is another reason that I am writing to you. There is something I must tell you. Something very wrong and dangerous is going on in the foreign languages department at [deleted] University. What is going on at [deleted] University? Almost all the other foreign teachers at [deleted] University are members of a cult. What is a cult? A cult is a type of religion that is illegal in China and most of the world. A cult is a very dangerous thing. Why are cults so dangerous? A cult tricks you into joining it and then it slowly takes you away from your family, your friends, your career, your country, and your life. Almost all the other American teachers in the foreign languages department at [deleted] are members of a cult called “Mormonism. They are not at [deleted] to teach you. They have come to [deleted] as secret missionaries and want to try and make you become Mormons too. Why does [deleted] allow them to be here? [deleted] University doesn’t know that they are Mormons. They have found a corrupt person in the [deleted] department and have paid [this personj] a lot of money, and given [this person] many gifts, so that [this person] will lie to the department and tell them to hire Mormons to teach English at [deleted]. Why do the Mormons want to teach at [deleted]? Mormons believe that they must brainwash every person in every nation into becoming one of them. Maybe this sounds impossible, but they are very rich and powerful and are now the fastest growing religion in the world. Their members take orders from one man, one voice who can command them what to do and what to think. Now they have their eyes upon China, and that is why they have come to [deleted]. As you know, [deleted] is the [one of the] most famous universities in China…many famous political leaders all went to [deleted]. The Mormons know that [many of] the future leaders of China will likely come from [deleted]. They believe that if they can make the students at [deleted] into Mormons, then their church will control over China. If they are so dangerous, why let them teach here? As I said, they have found a corrupt administrator in the department of [deleted], and they have paid [this person] so much money that [this person] is willing to betray [this person’s] people and nation. The [deleted] English Summer Camp is completely run by the Mormons and taught by the Mormons. Starting next semester ALL of the English teachers at [deleted] University will be Mormons. What do they want to do to the students? They want to make you a Mormon. If you are a Mormon then you must obey the Mormon Church without question. You must give your money to the Mormon Church. If your families are not Mormons then you will be forced to leave your family and not see them again. If your friends are not Mormons then you will be forced to leave them and not see them again. How do I protect myself? These are the words that they use: Mormon, Mormonism, L.D.S. (acronym for Later Day Saints), BYU (acronym for Brigham Young University, a Mormon recruitment center, not a real school). If any of the foreign teachers at [deleted] say they are Mormon, LDS, Latter Day Saints, or if they say they went to BYU or Brigham Young University then BEWARE. What is BYU or Brigham Young University? BYU or Brigham Young University is a school in the United States. But its real goal is as a recruitment and training center for Mormons. Many [deleted] students have been tricked into attending BYU. They are told they can go to America and attend a famous school, and then they are trapped at BYU and brainwashed. Please be very careful. What can we do? The only thing you can do is to warn the other students so they know to protect themselves. A student who becomes a Mormon will soon be taken away from China and from their family and their lives. I love you all and it pains me that Americans are doing such terrible things in China. Not all Americans are like this. It is only a few, the ones we call Mormons. Please be careful of them and do not agree to become one of them.&lt;br /&gt;&lt;br /&gt;[15] Perkins, John “Confessions of an Economic Hit Man”, Plume Books, N.Y. 2006, pp. 166-67, 183, 184;&lt;br /&gt;&lt;br /&gt;[16] Increasing percentages of foreign students in the West are choosing to remain to live and even state their original intention was to emigrate permanently from their countries of origin in seeking foreign studies opportunities. “After a Brief Decline, Foreign Ph.D. Graduates are Staying in the U.S. at Near-record Levels”, Oak Ridge Institute for Science and Education, February 3, 2010, &lt;a href="http://orise.orau.gov/news/releases/2010/fy10-20.htm"&gt;http://orise.orau.gov/news/releases/2010/fy10-20.htm&lt;/a&gt;&lt;br /&gt;&lt;br /&gt;[17] NGOs are typically broken down into: BINGOS (Business-friendly International NGOs); CSOs (Civil Society); DONGOs (Donor-organized); ENGOs (Environmentalists); GONGOs (Government-operated); INGOs (International like Oxfam); QUANGOs (quasi-autonomous); TANGOs (technical assistance); GSOs (Grass-roots support); MANGOs (market advocacy); CHARDS (Community health and development); They are not subject to international law as are states and thus often act as proxies for governments.&lt;br /&gt;&lt;br /&gt;[18] These foundations, institutes and sources of “expertise” have a powerful influence in generating and maintaining libraries, data bases, metrics, categories and constructs, and research connections that are used by various governments and media. With the megaphone effect that comes from well-endowed patronage, they take on the aura of the only official and “reliable” data and research bases from which to draw. Their publications are typically glossy, rich in graphics and other visuals that sometimes hide meager content as well as rhetorical intentions, as they play their roles in generating the “acceptable” metrics (categories, indicators and methodologies) by which the respective and relative performances of competing systems, governments and their policies are measured and judged. Those who can set the systems of measurement not only affect what is or is not being measured, but also they affect the actual values of the measurements and outcomes of those measurements.&lt;br /&gt;&lt;br /&gt;[19] See “New Study Finds U.S. Math Students Consistently Behind Their Peers Around the World”, American Institutes of Research, November, 2005; &lt;a href="http://www.air.org/news/documents/Release200511math.htm"&gt;http://www.air.org/news/documents/Release200511math.htm&lt;/a&gt;; “U.S. Teens Trail Peers Around World on Math-Science Test”, by Maria Glod, Washington Post, December 5, 2007, &lt;a href="http://www.air.org/news/documents/Release200511math.htm"&gt;http://www.air.org/news/documents/Release200511math.htm&lt;/a&gt;; “International Test Scores: Poor U.S. Test Scores Tied to Weak Curriculum” by Pascal D. Forgione, &lt;a href="http://4brevard.com/choice/international-test-scores.htm"&gt;http://4brevard.com/choice/international-test-scores.htm&lt;/a&gt;; “Between 1980 and 2000, the percentage of Ph.D. scientists and engineers employed in the United States who were born abroad has increased from 24% to 37%. The current percentage of Ph.D. physicists is about 45%; for engineers, the figure is over 50%. One fourth of the engineering faculty members at U.S. universities were born abroad. Between 1990 and 2004, over one third of Nobel Prizes in the United States were awarded to foreign-born scientists. One third of all U.S. Ph.D.s in science and engineering are now awarded to foreign born graduate students.” Wulf, William A. “The Importance of Foreign-born Scientists and Engineers to the Security of the United States”, statement to the U.S. House of Representatives, September 15, 2005.&lt;br /&gt;&lt;br /&gt;[20] In my classes I do an exercise on the first day of class to illustrate ideological framing and manipulation. I ask my students, who are seeing their textbook for the first time, how, not knowing anything about the author of the text, they could judge the likely ideology and rhetorical intentions of the author. Usually I get answers like “from the preface” or “from the biography of the author.” I then ask them to look in the subject index of the text and given them a list of constructs to look for: imperialism, neo-imperialism, racism, sexism, colonialism, neo-colonialism, genocide, etc. I then ask the students if they can define these terms and if they have anything to do with economics. I then ask them that if they cannot yet define these terms, how will they ever learn them if they have been omitted from the text? Attitudes, agenda, expectations, values and allegiances can be as effectively shaped, perhaps more so, by what is carefully omitted from examination as what is examined even from an ideologically jaundiced perspective.&lt;br /&gt;&lt;br /&gt;[21] See: Soft Power and US Foreign Policy: Theoretical, Historical and Contemporary Perspectives, edited by Parmar, Inderjeet and Cox, Michael Routledge, 2010; Lukes, Steven "Power and the Battle for Hearts and Minds: on the Bluntness of Soft Power," in Berenskoetter, Felix and Williams, M.J. eds. Power in World Politics, Routledge, 2007; Mattern, Janice Bially "Why Soft Power Is Not So Soft," in Berenskoetter and Williams; Nye, Joseph “The Powers to Lead”, NY Oxford University Press, 2008; and “Soft Power: The Means to Success in World Politics, N.Y.; Fraser, Matthew, “Weapons of Mass Distraction: Soft Power and American Empire”, St. Martin’s Press, N.Y. 2005).&lt;br /&gt;&lt;br /&gt;Bibliography&lt;br /&gt;&lt;br /&gt;1. Jacques, Martin “When China Rules the World: The End of the Western World and the Birth of a New Global Order”, Penguin Press, NY, 2010-&lt;br /&gt;2. Harvey, David “The New Imperialism”, Oxford Univ. Press, Oxford, 2003&lt;br /&gt;3. Shermer, Michael “The Science of Good and Evil”, Holt Books, NY, 2004 and “The Mind of the Market”, Holt, NY, 2008&lt;br /&gt;4. Gardner, Daniel “The Science of Fear”, Plume Books, NY, 2009&lt;br /&gt;5. Ariely, Dan, “Predictably Irrational: Revised and Expanded Edition”, Harper Books, NY, 2009&lt;br /&gt;6. Pratkanis, Anthony and Aronson, Elliot “Age of Propaganda, Revised Edition”, W.H. Freeman, NY, 2000&lt;br /&gt;7. Ostling, Richard and Joan, “Mormon America”, Harper Books, San Francisco, 1999&lt;br /&gt;8. Sharlet, Jeff “The Family: The Secret Fundamentalism at the Heart of American Power”, Harper Perrenial, NY, 2008&lt;br /&gt;9. Lakoff, George, “The Political Mind”, Penguin, NY, 2009&lt;br /&gt;10. Westin, Drew “The Political Brain: The Role of Emotion in Deciding the Fate of the Nation”, Public Affairs, NY, 2007&lt;br /&gt;11. Brewer, Anthony, “Marxist Theories of Imperialism: A Critical Survey”, Routledge and Kegan Paul, NY, 1980&lt;br /&gt;12. Chomsky, Noam et al “The Cold War and the University”, The New Press, NY, 1997&lt;br /&gt;13. Simpson, Christopher (ed.) “Universities and Empire”, The New Press, NY, 1998&lt;br /&gt;14. Perkins, John, “Confessions of an Economic Hitman”, Plume Books, NY, NY, 2004 and “The Secret History of the American Empire”, Dutton, NY, 2007&lt;br /&gt;15. Hiatt, Steven, A Game as Old as Empire: The Secret World of Economic Hitmen and the Web of Global Corruption”, Berrett-Koehler, San Francisco, 2007&lt;br /&gt;16. Pilger, John “The New Rulers of the World, Updated”, Verso, London, 2003 and “Hidden Agendas”, The New Press, NY, 1998&lt;br /&gt;17. Rampton Sheldon and Stauber, John “Weapons of Mass Deception”, Jeremy Tarcher/Penguin, NY, 2003&lt;br /&gt;18. Churchill, Ward, “Kill the Indian, Save the Man”, City Lights, San Francisco, 2004&lt;br /&gt;19. Kitty, Alexandra “Don’t Believe It: How Lies Become News”, Disinformation Press, NY, 2005&lt;br /&gt;20. Weiner, Tim “Legacy of Ashes: The History of the CIA”, Anchor Books, NY, 2008&lt;br /&gt;21. Magdoff, Harry “Imperialism: From the Colonial Age to the Present”, Monthly Review Books, NY, 1978 and “The Age of Imperialism”, Monthly Review Books, NY, 1969&lt;br /&gt;22. Amin, Samir et al “Dynamics of Global Crisis”, Monthly Review Books, NY, 1982 and Accumulation on a World Scale: A Critique of the Theory of Underdevelopment, Vols. I and II, Monthly Review Books, NY. 1974 and “Spectres of Capitalism”, Monthly Review Press, NY, 1998&lt;br /&gt;23. Solomon, Norman and Cohen, Jeff “Wizards of Media Oz: Behind the Curtain of Mainstream News”, Common Courage Press, Monroe, ME, 1997&lt;br /&gt;24. Deutsch, David, “The Fabric of Reality”, Penguin, NY, 1997&lt;br /&gt;25. Zakaria, Fareed “The Post-American World”, W.W. Norton, NY. 2009&lt;br /&gt;26. Szanto, Andras (ed) “What Orwell Didn’t Know: Propaganda and the New Face of American Politics”, Public Affairs Books, NY, 2007&lt;br /&gt;27. Aronowitz, Stanley and Gautney, Heather (eds), “Implicating Empire: Globalization and Resistance in the 21st Century World Order”, Basic Books, NY, 2003)&lt;br /&gt;28. Nye Joseph, “The Powers to Lead”, Oxford U. Press, Oxford, 2008 and “Soft Power: The Means to Success in World Politics”, Oxford U. Press, NY, 2009&lt;br /&gt;29. Wilford, Will “The Mighty Wurlitzer: How the CIA Played America”, Harvard U. Press, Cambridge, 2008&lt;br /&gt;30. Gorenfeld, John “Bad Moon Rising: How Reverend Moon Created the Washington Times, Seduced the Religious Right and Built an American Kingdom”, Poli Point Press, Sausalito, CA. 2008&lt;br /&gt;31. Abanes, Richard, “One Nation Under Gods: A History of the Mormon Church”, Four Walls Eight Windows Press, NY, 2002&lt;br /&gt;32. Allman, T.D. “Rogue State: America at War with the World”, Nation Books, NY, 2004&lt;br /&gt;33. Fraser, Matthew, “Weapons of Mass Distraction: Soft Power and American Empire”. St. Martin’s Press, NY, 2005&lt;br /&gt;34. Parmar, Inderjeet and Cox, Michael (eds) “Soft Power and U.S. Foreign Policy: Theoretical, Historical and Contemporary Perspectives”, Michael Routledge, NY, 2010&lt;br /&gt;35. Bamford, James “The Shadow Factory”, Doubleday, NY, 2008; “Body of Secrets”, Anchor Books, NY, 2002; “A Pretext for War”;&lt;br /&gt;36. Winks, Robin “Cloak and Gown: Scholars in America’s Secret War”, Collins-Harvill, London, 1987;Bernays, Edward “Propaganda”, IgBooks, Brooklyn, NY, 1928 and 2005 &lt;/div&gt;&lt;div align="justify"&gt;&lt;/div&gt;&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-953070373751604699?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/953070373751604699'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/953070373751604699'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/04/international-education-and-imperial.html' title='INTERNATIONAL EDUCATION AND IMPERIAL PENETRATION, COOPTATION AND CONTROL Presented in Beijing, China May 20-21, 2010'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://2.bp.blogspot.com/_LbIlP2wfBuY/S9Sp17ekV1I/AAAAAAAAA3I/lq2ONrNq8CQ/s72-c/flagcorp.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-8022544497629653547</id><published>2010-04-25T13:12:00.000-07:00</published><updated>2010-04-25T13:40:36.788-07:00</updated><title type='text'>MERC-MAIL REVEALS MERC MENTALITY</title><content type='html'>&lt;a href="http://4.bp.blogspot.com/_LbIlP2wfBuY/S9SjfEB59YI/AAAAAAAAA2o/PiUvIGyMUAc/s1600/democracy_democracydelivers.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 250px; height: 333px;" src="http://4.bp.blogspot.com/_LbIlP2wfBuY/S9SjfEB59YI/AAAAAAAAA2o/PiUvIGyMUAc/s400/democracy_democracydelivers.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5464172001960260994" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://1.bp.blogspot.com/_LbIlP2wfBuY/S9SjeguEHeI/AAAAAAAAA2g/2mv25l8c1lg/s1600/bilderbergfirst.gif"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 400px; height: 265px;" src="http://1.bp.blogspot.com/_LbIlP2wfBuY/S9SjeguEHeI/AAAAAAAAA2g/2mv25l8c1lg/s400/bilderbergfirst.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5464171992481799650" /&gt;&lt;/a&gt;&lt;br /&gt;-&lt;br /&gt;Who are "they"--the MERCS? They are the ones who guard, or execute the war plans, covert operations and orders of the "Them"--the ones who run things, or place constraints on those who run things on a global level (e.g. like the Bilderberg Group). They are often former SEALS, SF, Delta, SAS, CIA and the like who hire out for a lot of money to do some of the more demanding and odious jobs, the kind that require "plausible deniability" for those who ordered them, that those in the military, when they do the same jobs, are paid a whole lot less.&lt;br /&gt;-&lt;br /&gt;The following is an email being circulated among the many contractors for the U.S. Government and its allies. It is very revealing not only about some of the tasks that MERCS do, but also about the mentality that leads them into MERC work and do do what they do when working. (Source: "Licensed to Kill: Hired Guns in the War on Terror" by Robert Young Pelton, Three Rivers Press, NY, 2007)&lt;br /&gt;-&lt;br /&gt;FROM AN EMAIL CIRCULATED ON CONTRACTOR CHANNELS:&lt;br /&gt;-&lt;br /&gt;"I am a U.S. contractor. I look out for myself, the operators to my left and right, and no one else.&lt;br /&gt;-&lt;br /&gt;I will always take advantage of the fact that I can finally tell military officers to pound sand, and will do so at every opportunity.&lt;br /&gt;-&lt;br /&gt;I am my country's scapegoat, the 'plausible deniability' warrior, and I love it.&lt;br /&gt;-&lt;br /&gt;Less than $700 dollars[sic] a day is unacceptable.&lt;br /&gt;-&lt;br /&gt;I am trained to eat things that would make a bill goat puke, but will refuse anything less than 60 dollars a day per diem because I am greedy.&lt;br /&gt;-&lt;br /&gt;I care not for ribbons and awards for valor: I do this job for the opportunity to kill the enemies of my country, and to get that boat I have always wanted.&lt;br /&gt;-&lt;br /&gt;I will be in better shape than 99% of the active duty personnel, although this is not hard.&lt;br /&gt;-&lt;br /&gt;I will equip myself with the latest high speed gear; and will trick out my M4 until it weighs more than 24 lbs, not because it works better; but because it looks cool in the photographs.&lt;br /&gt;-&lt;br /&gt;I will carry more weapons, ammunition and implements of death on my person than an infantry fire team, and when engaged I will lay waste to everything around me. &lt;br /&gt;-&lt;br /&gt;In any combat zone, I will always locate the swimming pool, beer, and women, because I can.&lt;br /&gt;-&lt;br /&gt;I will deploy on my terms, and if it ever gets too stupid, I will simply find another company that pays me more."&lt;div class="blogger-post-footer"&gt;&lt;img width='1' height='1' src='https://blogger.googleusercontent.com/tracker/3449323876485291163-8022544497629653547?l=wwwthesixthestate.blogspot.com' alt='' /&gt;&lt;/div&gt;</content><link rel='edit' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/8022544497629653547'/><link rel='self' type='application/atom+xml' href='http://www.blogger.com/feeds/3449323876485291163/posts/default/8022544497629653547'/><link rel='alternate' type='text/html' href='http://wwwthesixthestate.blogspot.com/2010/04/merc-mail-reveals-merc-mentality.html' title='MERC-MAIL REVEALS MERC MENTALITY'/><author><name>Omahkohkiaayo i'poyi</name><uri>http://www.blogger.com/profile/16061952911212543042</uri><email>noreply@blogger.com</email><gd:image rel='http://schemas.google.com/g/2005#thumbnail' width='16' height='16' src='http://img2.blogblog.com/img/b16-rounded.gif'/></author><media:thumbnail xmlns:media='http://search.yahoo.com/mrss/' url='http://4.bp.blogspot.com/_LbIlP2wfBuY/S9SjfEB59YI/AAAAAAAAA2o/PiUvIGyMUAc/s72-c/democracy_democracydelivers.jpg' height='72' width='72'/></entry><entry><id>tag:blogger.com,1999:blog-3449323876485291163.post-9051431758908846185</id><published>2010-04-21T14:54:00.000-07:00</published><updated>2010-04-21T16:11:15.247-07:00</updated><title type='text'>The Debunking of Economics: A Review of the Work of Steve Keen et al</title><content type='html'>&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/S8-BtXnoiZI/AAAAAAAAA2Y/YLwzIAdULNI/s1600/capital-290.gif"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 290px; height: 350px;" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/S8-BtXnoiZI/AAAAAAAAA2Y/YLwzIAdULNI/s400/capital-290.gif" border="0" alt=""id="BLOGGER_PHOTO_ID_5462727489458047378" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;a href="http://3.bp.blogspot.com/_LbIlP2wfBuY/S8-BtNBxI7I/AAAAAAAAA2Q/dxk9vhp2dXc/s1600/capitalism.jpg"&gt;&lt;img style="display:block; margin:0px auto 10px; text-align:center;cursor:pointer; cursor:hand;width: 259px; height: 320px;" src="http://3.bp.blogspot.com/_LbIlP2wfBuY/S8-BtNBxI7I/AAAAAAAAA2Q/dxk9vhp2dXc/s400/capitalism.jpg" border="0" alt=""id="BLOGGER_PHOTO_ID_5462727486614873010" /&gt;&lt;/a&gt;&lt;br /&gt;&lt;em&gt;&lt;strong&gt;The Debunking of ‘Economics’ by Steve Keen: A Critical Review&lt;/strong&gt;&lt;/em&gt;-&lt;br /&gt;&lt;br /&gt;&lt;em&gt;&lt;strong&gt;By James M. Craven/Omahkohkiaaiipooyii&lt;/strong&gt;&lt;/em&gt;&lt;br /&gt;&lt;br /&gt;&lt;em&gt;&lt;strong&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;To be Presented at the World Association for Political Economy (WAPE) Conference, May 28-31, 2010, Suzhou, China&lt;/strong&gt;&lt;/em&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Introduction&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In a somewhat remarkable book, Steve Keen starts out right away to explain how he was led into his odyssey, and now mission, of “debunking Economics”.  By the generic term “Economics” he means not only “mainstream” or neoclassical Economics, but also some of the writings labeled “heterodox” as well&lt;a style="mso-endnote-id: edn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn1" name="_ednref1"&gt;[i]&lt;/a&gt;.  His quarrel is primarily with unchallenged dogma, “traditional habits of thought and expression”, and all conventional structures that act like straight-jackets. His target is also “how economics is taught” at the undergraduate level&lt;a style="mso-endnote-id: edn2" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn2" name="_ednref2"&gt;[ii]&lt;/a&gt;. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen notes that he was “schooled” (his word “indoctrinated”) in the traditions of the Keynesian-Neoclassical synthesis some thirty years ago. He also notes that as the global economy has moved more towards the textbook conditions assumed by neoclassical theory (relative to fifty years ago) with more deregulation, privatization, abolition of tariffs and quotas, more market-based exchange rates and reduced roles of governments, and, despite the dominance and applications of Neoclassical theory in neoliberal policies, the world has grown more, not less as the theory would predict, unequal, unstable and inefficient.  His opening argument and attack goes like this:&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;-&lt;br /&gt;“Though economists have long believed that their theory constitutes ‘a body of generalizations whose substantial accuracy and importance are open to question only to the ignorant or the perverse’ (Robbins 1932), for over a century economists have shown that economic theory is replete with logical consistencies, specious assumptions, errant notions and predictions contrary to empirical data.…Virtually every aspect of conventional economic theory  is unsound; virtually every economic policy recommendation is just as likely to do general harm as it is to lead to the general good. Far from holding the intellectual high ground, economics rests on foundations of quicksand. If economics were truly a science, then the dominant school of thought in economics would long ago have disappeared from view”  &lt;a style="mso-footnote-id: ftn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftn1" name="_ftnref1"&gt;[1]&lt;/a&gt;&lt;a style="mso-endnote-id: edn3" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn3" name="_ednref3"&gt;[iii]&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;-&lt;br /&gt;Keen says that the catalyst for him to begin to question the prevailing neoclassical dogma, and to see it as dangerous dogma and ideology, was a basic “logical” contradiction in microeconomic theory pointed out to him by a lecturer in a first-year Microeconomics course. That contradiction was simple yet glaring and unaddressed. Neoclassical theory says that combinations of any sort (unions, monopolies) reduce social welfare, and, that without them, people would be paid proportionately to their respective productive contributions (MRPs) to total output and society.  But, if one simply abolished only one form of combination and not the other; the other would dominate government and society and reduce net social welfare. Thus a “paradox”: that only abolishing both, or retaining both (checks-and-balances), but not abolishing only one of the two, would add to net social welfare and markets doing what markets are supposed to do. No second-best or marginal improvement, solution&lt;a style="mso-endnote-id: edn4" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn4" name="_ednref4"&gt;[iv]&lt;/a&gt; would occur with the abolition of at least one but not both of these combination forms.&lt;br /&gt;-&lt;br /&gt;This statement by Steve Keen of what lead him to begin to question, and then later actively debunk, the economics&lt;a style="mso-endnote-id: edn5" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn5" name="_ednref5"&gt;[v]&lt;/a&gt; in which he had been schooled and has extensively taught, was for me revealing. It was a simple logical paradox, or internal contradiction, in the internal logic of the theory, not some fundamental and glaring contradictions between the predictions and palliatives of orthodox Neoclassical theory versus the ugly realities lived by the masses and covered-up by “mainstream” theory, that led Keen to begin to rebel.  He has set about not to debate hard-core fundamentalists, the neoclassical and neoliberal “true believers” of academia and policy circles, but to offer alternative perspectives and paradigms on the issues that are typically problematic for the orthodoxy and that they refuse to hear, debate, question or open themselves to questions about. His focus, for non-economists as well as economists and political economists, is primarily on the internal contradictions in some of the core axioms, postulates, assumptions, hypotheses, mathematical expositions and even epistemology of Neoclassical orthodoxy. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Marxians and Marxists:&lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;-&lt;br /&gt;Professor Keen’s analysis often appears to me, to be more “Marxian” than Marxist&lt;a style="mso-endnote-id: edn6" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn6" name="_ednref6"&gt;[vi]&lt;/a&gt;. His analytical scope and depth appears somewhat detached from grass-roots politics, struggles and issues. He is heavy on theory and light on real-world case studies; light on empirical data on real-world conditions; light on real-world lives and struggles in this book but not in other venues he writes on. Interestingly, there is not even mention of the word “imperialism” –not even listed in the index of the book. He goes into and has some attraction to, chaos-complexity theory attracted partly by the more realistic, non-linear and morphogenetic models, involving positive feedback loops and non-linear differential equations (as opposed to the first and second-order linear differential equations and morphostatic models of neoclassical economics that are often learned, in condensed and inadequate courses of mathematics for economists) that more realistically model  real-world systems of natural as well as social phenomena.&lt;a style="mso-endnote-id: edn7" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn7" name="_ednref7"&gt;[vii]&lt;/a&gt;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Why has Neoclassical Orthodoxy Survived Critique So Long?&lt;br /&gt;-&lt;br /&gt;&lt;/div&gt;&lt;div align="justify"&gt;As to why this contradiction-riddled neoclassical orthodoxy has dominated and survived so long in academia, among economists who refuse to look into the bankrupt foundations of their dogma, Keen has not much to say. He says these academics are generally “well intentioned” and yet generally ignorant of any other paradigms along with much of the history of economic thought and analysis. He says that these academics, who are true believers in their dogma, typically blame alleged governmental misunderstandings and misapplications of their dogma in government policies, and not their own dogma and dogma-based advice, for present-day global crises. He does not use openly, but hints at, words or concepts like opportunism, cowardice, Faustian Bargains, careerism, willful blindness, depraved indifference, academic prostitution, or cognitive dissonance to explain why this mainstream neoclassical orthodoxy has survived so long and stayed relatively unchallenged by those trained in it and who carry it on uncritically. In short he has little to say about economics as rhetoric and ideology or class interests.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen wrote these essays, compiled together to form this book, for non-economists as well as economists. Throughout the book, he first presents the details of the conventional constructs of neoclassical theory before debunking them. Again, his focus, according to him, is on the internal contradictions, the logical disconnects or contradictions, that are internal to the theory. He does not spend much time on the rhetorical intentions and system-preserving roles of neoclassical economics. He does not spend much time on the predictions of neoclassical economics versus the ugly realities they are designed to avoid, obscure, cover-up or dress it up. Keen states explicitly that his book is not about “Left versus Right” but “Right versus Wrong” and states boldly:&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;“However the critiques of this book are not based on politics but on logic. No political position—left, right or middle—should be based on foundations which can be easily shown to be illogical. Yet much of conventional economic theory is illogical. Those who occupy the center stage of politics should find a firmer foundation for their politics than an illogical economic theory. The same comment, of course, applies to those at the left-wing end of the political spectrum, who base their support for radical change on conventional Marxian economics. As I argue in Chapter 13, conventional Marxism is replete with logical errors as is neoclassical economics.”&lt;a style="mso-endnote-id: edn8" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn8" name="_ednref8"&gt;[viii]&lt;/a&gt;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Steve Keen’s Overall Approach to Critique of Neoclassical Economics&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen picks apart aspects of neoclassical economics piece by piece in each chapter. He does not deal with neoclassical economics as a coherent meta-theory or meta-paradigm founded on core meta-postulates or axioms&lt;a style="mso-endnote-id: edn9" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn9" name="_ednref9"&gt;[ix]&lt;/a&gt;. He considers the theoretical edifice of neoclassical economics to be too riddled with internal contradictions and lack of overall coherence to constitute, as some have argued, a comprehensive and internally coherent whole, albeit bankrupt, theoretical system. He does note that neoclassical economics sets up this abstract, “ideal” and tautological world where “everything tends to the best in the best of all worlds”. Neoclassicals then, evaluates each set of policy prescriptions and effects not empirically, in terms of how closely, and with what consequences, they achieve their stated objectives, but how closely they move towards the abstract and ideals models of reality they so forcefully assert as the ideals to which policies should strive. He writes:&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;“Economists would contend that these changes have made the world a better place, not because some economists have verified that the changes have been beneficial, but because the changes have made the real world look more like the hypothetical world of the economic textbook…But this confidence in reform begs the question—is the hypothetical world of the text book ‘actually’ a better place than the real world with all its distortions? This is only possible if the economic theory that describes the economist’s ideal world is internally consistent.  If the theory is internally inconsistent—if it requires impossible conditions to function—then the economic ideal may be an entirely useless guide to how the real world actually works, let alone to how it might be improved. Economic reform could produce a manifestly worse system than the one which it alters. “&lt;a style="mso-endnote-id: edn10" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn10" name="_ednref10"&gt;[x]&lt;/a&gt;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Part One of this book is on the foundations of neoclassical economics that need to be explained to non-economists before being debunked. The first three chapters of Part One take on the traditional model, the “blades” (supply and demand) of the scissors” of Alfred Marshall and others. Chapter two, on the “Calculus of Hedonism” shows that individuals are far more than self-interested hedonists and ultra-individualists and that society is far more than the mere sum of the individuals in it as postulated by neoclassical theory and conservatives in general.  Society, the macro, cannot be effectively modeled, understood or transformed in the aggregate by merely summing up or aggregating the micro behaviors  of all the individuals that make up the macro.  Different individuals, driven to maximize total utility from given resources, will evaluate the utility gained of say a banana, subjectively and differently. A change in the distribution of income that took income from one person and transferred it to another could result, in a different level of social welfare thus impairing the aggregation of various individual or interpersonal utility functions (to form market demand curves) without cornerstone assumptions that: a) all people have identical (homothetic) tastes; b) those tastes are affine and do not change as income changes. Thus a downward sloping demand curve for one person and one commodity only may be possible; but a market demand curve is extremely problematic (likely is jagged and slopes every which way). &lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;-&lt;br /&gt;Keen also takes on the utilitarianism of Jeremy Bentham that is central to neoclassical economics: a) that all human behavior, ultimately, and subjectively for each unique individual, comes down to maximization of pleasure and minimization of pain; b) that there is no such thing as society or community—only aggregates or a simple sum of individuals that remain individuals—any “social interests” or social utility functions, are manifested by adding up individual interests and utility functions. These constructs undermine other constructs of neoclassical economics that are uncritically taught:  supposed social indifference maps from individual indifference maps; Giffin goods&lt;a style="mso-endnote-id: edn11" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn11" name="_ednref11"&gt;[xi]&lt;/a&gt;; market demand curves as mere “horizontal summations” of individual demand curves; general equilibrium; budget constraint line (income) independent of tastes (indifference curves); contours of individual indifference curves cannot intersect (except supposed social indifference curves); human behavior driven by motives other than utility maximization and pain minimization&lt;a style="mso-endnote-id: edn12" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn12" name="_ednref12"&gt;[xii]&lt;/a&gt; ) Keen then takes on, the central postulates of consumer welfare theory.&lt;a style="mso-endnote-id: edn13" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn13" name="_ednref13"&gt;[xiii]&lt;/a&gt;  He also shows how consumer theory and indifference maps are used to attempt to explain any aspect of human behavior related to consumption—“one-size-fits-all”. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Neoclassical Focus on Consumption and Exchange and not Production&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Since its inception in the 1870s, neoclassical theory was founded on patently absurd postulates and axioms along with and necessary for, its shift in focus from trans-disciplinary political economy (contradictions and laws of motion of systems) to the isolated or atomistic “representative” individual as the focus of “pure economics”. When each has been shown to be absurd on its face, the response by neoclassical theory and theorists was not to look for a new theory modeling and predicting aspects of human behavior, but always the response is to search for even more restrictive conditions under which the established theory “might” hold: from perfect to bounded rationality; from perfect to bounded information; from maximization (of total utility and total profit) to satisficing; from unique individuals and their unique but given “homothetic” (identical) and “affine”(unchanging) preferences, to the “socially representative” individual standing in for “all” of society&lt;a style="mso-endnote-id: edn14" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn14" name="_ednref14"&gt;[xiv]&lt;/a&gt;. &lt;br /&gt;-&lt;br /&gt;And of course this “socially representative” individual, standing in for all individuals, has no history, context, social class, age, gender, ethnicity, religion or ideology to “clutter-up” the analysis. Keen also notes that if neoclassical theory were to incorporate social class, then at the first- approximation level, perhaps the assumption of the “representative individual” (of most people of a given social class) might be easier to take and work with as incomes and tastes, within social classes, vary much less than between social classes&lt;a style="mso-endnote-id: edn15" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn15" name="_ednref15"&gt;[xv]&lt;/a&gt;.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Keen shows how an indeterminate, non-continuous and jagged market demand curve, with portions showing a direct, rather than inverse, relationship between price per unit and quantity demanded per unit of time, can lead to multiple-point-intersections between market demand and the supply curves thus leading to multiple potential “equilibriums”. Other objections to neoclassical theory on consumer welfare include: non-evolutionary ways in which consumer behavior is handled; consumer split personalities (maximizing utility and also ethically obeying contracts); irrational definition of rational (takes extensive time and processing power of calculate comparative utilities among myriad combinations of two goods when it would be rational to simply follow habitual rules of thumb); ignorance of and ignoring ethical and other factors in complex human behavior and motives; refusal to consider how behaviors, welfare and peer pressures of others affect individual decisions and behaviors (examined in an area called network economics).&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;The Neoclassical “Law” of Supply: Sraffa Redux&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Chapter Three, “The Price of Everything and the Value of Nothing” continues his critique of neoclassical supply and demand. Where Chapter Two showed that market demand curves cannot be derived from horizontally summing up individual demand curves, and that the market demand curves cannot, logically, be smooth, continuous, non-jagged and downward sloping functions consistently showing “The Law of Demand”(quantity demanded per unit of time as an inverse function of price per unit), the same applies with the neoclassical supply curves showing “The Law of Supply” (quantity supplied per unit of time as a consistent, smooth,  continuous and non-jagged direct function of price per unit).  Keen argues that in classical economics, in which price was a function of costs of production, a static version of which, yields a more accurate flat or even downward-sloping supply curve as in some cases unit costs fall with scale. Why? Because according to Keen, factories are designed, industrially engineered, to avoid some of the problems like diminishing returns, increasing marginal opportunity costs, diminishing marginal productivity, etc, that neoclassical economists assume must inexorably follow with increasing production. Keen argues that factories are routinely built with significant excess capacity and are designed for efficiencies at low or high rates of capacity utilization; only products like oil that are not produced (but are refined) in factories may obey the “law of diminishing marginal productivity”, the real focus, of pure economics&lt;a style="mso-endnote-id: edn16" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn16" name="_ednref16"&gt;[xvi]&lt;/a&gt;. &lt;/div&gt;&lt;div align="justify"&gt;&lt;br /&gt;-&lt;br /&gt;Keen argues, employing the analysis of Sraffa that horizontally summing up upward-sloping marginal costs curves of individual firms to produce an upward-sloping market supply curve is as flawed as summing up individual demand curves to form a smooth downward-sloping demand curve.&lt;a style="mso-endnote-id: edn17" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn17" name="_ednref17"&gt;[xvii]&lt;/a&gt;&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Sraffa attacked two particular cornerstone axioms of neoclassical theory and showed that they were mutually contradictory: 1) in the short run, if at least one factor of production is “fixed” then supply and demand functions cannot be independent of each other and thus any notions of a predictable partial equilibrium are impossible as every point on the supply curve would be associated with a different demand curve; 2) on the other hand, under any circumstances in which supply and demand could be treated as independent of each other, it would be impossible for any factor of production to be fixed  and hence marginal costs would be constant and average costs falling.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The theory of diminishing returns that the classical school presented was not a theory of price determination but that of determination of income distribution and rent based on progressive uses of poorer and poorer quality of fixed land. Keen argues that the classical notion of diminishing marginal returns was misapplied by the Neoclassicals. In their models based on a competitive economy, in which all inputs and outputs were homogeneous, and no firm was large enough to affect market price, the use of diminishing quality of inputs to explain diminishing returns, contradicted the assumption of homogeneous quality of inputs, and thus it was necessary, to postulate, that going beyond some optimal ratio of “variable” to “fixed” factors of production was the source of diminishing marginal returns.” According to Sraffa, only if an industry is treated in the broadest possible ways, say agriculture and the role of land, can some factor be treated as “fixed” in the short-run; but that would contradict the postulate of independence of (or no co-determinacy between) supply and demand or the postulate that static partial equilibrium, in separate and individual markets, in isolation from other markets, can be determined and predicted&lt;a style="mso-endnote-id: edn18" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn18" name="_ednref18"&gt;[xviii]&lt;/a&gt;. &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;There are other implications from Sraffa’s work. The majority of cases, where unused capacity is maintained and consolidated, to avoid the problem of a fixed factor of production being crowded by a variable one, and thus diminishing returns, the classical model of costs determining price and demand determining quantity sold is likely to be more accurate according to Keen and Sraffa. Also, the total profit maximizing level of output is no longer where MC = MR&lt;a style="mso-endnote-id: edn19" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn19" name="_ednref19"&gt;[xix]&lt;/a&gt;.&lt;br /&gt;-&lt;br /&gt;If internal rising marginal costs do not constrain the production and profitability of an individual firm as neoclassical economics suggests, what are the constraints on the individual firm? According to Keen, who is often almost channeling Sraffa, the major constraints are those which neoclassical economics simply assumes away as not relevant: costs of transportation, information, marketing (a cost of distribution not production as assumed to try to rescue the rising marginal cost curve) and access; plus, acceptable market price and creditworthiness.  &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;If Sraffa’s critique holds true, the whole edifice of neoclassical economics collapses. In neoclassical theory, real wages are taken as given by market forces so firms hire up to where the real wage equals the marginal revenue product of labor. Due to diminishing marginal productivity, the MRP falls as more labor-power is hired with the last worker hired where w = MRP.  Since employment determines output, thus the market-given real wage determines output with the real-wage itself determined by worker willingness to forego leisure for income. If society seeks higher levels of output then this is only possible according to the mainstream theory if real wages fall and/or MRPs (Demand for labor-power) increase.   If the output to employment relationship is relatively constant, then the neoclassical theory of output and employment determination collapses&lt;a style="mso-endnote-id: edn20" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn20" name="_ednref20"&gt;[xx]&lt;/a&gt;.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The Neoclassical MC = MR Total Profit Maximization Rule&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen also takes on the comparative statics and absence of time in the MC = MR total profit maximization rule. Costs and revenues vary over time as well as output levels changing at one point in time according to Keen&lt;a style="mso-endnote-id: edn21" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn21" name="_ednref21"&gt;[xxi]&lt;/a&gt;. The MC = MR rule holds time constant such that revenues and costs vary only with output levels and thus the gap between total revenue and costs is creates where MC = MR. But real business persons are interested in maximizing total profits over both time and quantity of output produced and sold; profit is both a function of quantity and the historical time during which it produces. Change in profit = (change in profit as a function of time x change in time) + (change in profit as a function of quantity x change in quantity).&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Neoclassical theory deals only with a change in profit as a function of a change in quantity and thus the rule MC = MR and following the profit maximization rule, one would deliberately set this quantity to zero.  Since one gets zero when multiplying any number by zero, this results in the second half of the overall profit formula (change in profit as a function of quantity x change in quantity) being zero. The neoclassical theory then, according to Keen, implies that profit will be maximized when the change in profit due to change in quantity is eliminated and change in profit due to changes in time is maximized.  If the firm’s output is increasing over time, then the term change in quantity is positive, and then setting MC = MR results in zero multiplied by the positive change in quantity which is zero and a smaller increase in profit than if MR &gt; MC. The economic rule of MC = MR is correct only if quantity never changes.&lt;a style="mso-endnote-id: edn22" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn22" name="_ednref22"&gt;[xxii]&lt;/a&gt;  But the imperatives of effective competition, accumulation, market power and even survival of the firm dictate that the firm must grow and develop market power over time which means if it devotes all of its resources to maximizing total profits now, it will have no resources for investment for the future. Mainstream theory is trying to work out a profit maximization rule of ideal output for all time and no such rule is possible according to Keen. Where MC = MR or MC = Price, and where MC are constant, MC are well below average costs and thus losses are being sustained at MC = MR. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In real-world surveys of managers, note constant or falling MC and no empirical support for firms setting prices where MC = MR in the real world. Where higher prices may be necessary to increase quantities supplied per unit of time, due to supply inflexibilities, diminishing returns is not cited as the real reason or any significant factor as central to neoclassical theory on both the demand (diminishing marginal utility) and supply (diminishing marginal productivity) sides. The notions of smooth downward-sloping demand curves, aggregates of similar individual demand curves, or smooth upward-sloping supply curves, aggregates of similar individual supply curves, or the notion of independent supply and demand curves setting one unique equilibrium price and quantity in a market, Keen shows to be pure fiction—and worse.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Neoclassical Theory of the Firm and Monopolies&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Chapter Four deals with inconsistencies in the neoclassical theory of the firm vis-à-vis monopolies&lt;a style="mso-endnote-id: edn23" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn23" name="_ednref23"&gt;[xxiii]&lt;/a&gt;. Mainstream theory, among all of the possible objections to monopolies, focuses only on the size of the monopoly relative to the market and the inefficiencies of restricting output levels for P &gt; MR where MC = MR thus causing over-pricing, less output, loss of consumer and producer surpluses (deadweight losses) all relative to perfect competition. These essential differences between monopoly and pure competition in neoclassical theory are treated as simply the result of a deeply downward-sloping, overall inelastic MR curve, separate but derived from a down-ward-sloping demand curve under monopoly, versus a flat and perfectly elastic demand—and not separate MR curve—under pure competition&lt;a style="mso-endnote-id: edn24" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn24" name="_ednref24"&gt;[xxiv]&lt;/a&gt;.  The implications, according to neoclassical theory, are that ‘perfectly’ competitive firms maximize social welfare, produce more output and at a lower price due to the features, constraints and competitive/survival imperatives of perfect competitors vs. monopolies.  Perfect competition is also preferred as the only market structure in which market output and price are set where market supply and demand curves intersect as opposed to monopoly where MC = MR but MR &lt; P and at lower output than under perfect competition.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Again Keen focuses again on aggregation problems in his critique of neoclassical theory on monopoly. He notes, in a note on “calculus 101 for economists: infinitesimals ain’t zero”, that the central assumption of perfect competition, that gives rise to the flat, zero-sloped, infinitely elastic P = MR = Demand curve is that no firm is large enough to affect market supply, each firm is small and does not react to the behaviors of other firms, and thus must face or take a market determined price as “given”.  But aggregating the flat P = MR = Demand curves of individual firms will mathematically yield only a larger flat market P = MR = Demand curve not a smooth, downward-sloping, one; which means, partly, that firms do react to the behavior of others for market price to react (otherwise increases in output by one would have to be offset by proportional decreases in output by others as the neoclassical model confuses very small quantities with zero). The individual and market levels of neoclassical models are inconsistent.&lt;a style="mso-endnote-id: edn25" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn25" name="_ednref25"&gt;[xxv]&lt;/a&gt;  The monopoly has produced where MC = MR, but the perfectly competitive firms wind up producing higher output some of which, at the industry or firm level, must be sold at losses where MC &gt; MR due to infinitesimally small quantities being  treated as zeros.  The individual demand curve has to be downward sloping or else the market demand curve has to be flat as well.&lt;a style="mso-endnote-id: edn26" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn26" name="_ednref26"&gt;[xxvi]&lt;/a&gt; If the assumption that the individual perfect competitor has no effect on market price is relaxed, then the price and output levels for a perfectly competitive industry will be the same as for a monopoly according to Keen&lt;a style="mso-endnote-id: edn27" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn27" name="_ednref27"&gt;[xxvii]&lt;/a&gt;. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Keen is well aware of the issue of economies of scale (present, according to Keen most in large firms or farms producing relatively homogenous products) and the issue of perfect competition being self-negating or self-imploding. No one goes into business to lose; they all dream of profits for power and power for profits. Big fish swallow small fish.  Pure competition and its own survival imperatives dictate increasing product differentiation (real or imagined) leading to monopolistic competition and a slightly downward-sloping demand curve (some market power) and often, oligopoly and then monopoly—effective or actual.  It is all very dialectical: negation of the negation, or, ultra-competition leads to anti-competition, which leads to more competition (among oligopolies) at higher levels with more at stake with more to lose. Size does matter, economies of scale do constitute serious barriers to entry and competition, the long-run supply curve assumes constant technology (a highly spurious assumption) and the only way that perfect competitors could exist in any long-run sense would be with an industry so huge that it could handle the huge number of very small firms that the perfect competition model requires. In answer to these reservations, the Neoclassicals retreat, again, to an attempted theory-saving assumption of constant returns to scale in which case size does not matter. According to Keen, when all these caveats are taken into account, the case for perfect competitors and against monopolies collapses with the exposed logical contradictions internal to the theory alone. But this should not be taken as an endorsement of monopolies, Keen notes, but each monopoly should be judged on a case-by-case basis he notes.&lt;br /&gt;-&lt;br /&gt;Neoclassical Marginal Productivity Theory&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen finishes Part One, on the basics of neoclassical theory and its internal contradictions embodied in marginal productivity theory: “From each according to his contribution: why productivity doesn’t determine wages”&lt;a style="mso-endnote-id: edn28" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn28" name="_ednref28"&gt;[xxviii]&lt;/a&gt;.  Keen takes exception—again—to the central notions of diminishing marginal productivity, smooth and continuous (downward-sloping) demand and (upward-sloping) supply curves horizontally summed from individual curves in his opening attack on neoclassical theory of labor-power markets. In neoclassical theory, “labor”, or actually “labor-power”, is treated as mere commodity, like an apple, subject to the same “laws”&lt;a style="mso-endnote-id: edn29" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn29" name="_ednref29"&gt;[xxix]&lt;/a&gt;, and curves, of supply and demand, as an apple.  But in labor-power markets, unlike other commodities like an apple, supply decisions are made by households while demand decisions are made by firms. According to Keen, this fact alone vitiates the usefulness of neoclassical marginal productivity theory in explaining wage determination, quantities of labor-power hired etc in the real world.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;For commodities other than labor-power, demand is determined by consumers (mostly from Households) on the basis of incomes and tastes, while supply is determined by costs of production. But labor-power is not strictly consumed but hired to produce other commodities for sale and labor-power is not supplied for “profit” or subject to diminishing returns. So in essence, the demand for labor-power is determined by producers while the supply of labor-power is determined by consumers of the commodities produced by labor (the utilization or consumption of labor-power in production). According to neoclassical theory, the supply of labor-power is determined by a trade-off between income and leisure coupled with an assumed disutility of all labor and progressive taxation effects.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Demand for labor-power, and the hiring of each marginal worker, is assumed to be a function of the contribution of that worker to total profits relative to the cost or wage of hiring that worker to produce. In a perfectly competitive labor-power market, each firm can hire as many workers as it wishes at a going real wage rate&lt;a style="mso-endnote-id: edn30" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn30" name="_ednref30"&gt;[xxx]&lt;/a&gt; and hires up to, but not beyond, the point where the wage paid is equal to the marginal revenue product or the market value of the output of that last worker when sold.  But the “productive contributions” or marginal revenue products of successive workers hired fall due to diminishing marginal productivity and/times constant P = MR in perfect competition, and, more steeply in imperfect competition, due to diminishing marginal productivity of labor times diminishing marginal revenue of the increased output produced by increased labor-power hired.  It is all nice and neat. Workers are paid according to their marginal contributions to production—no free ride but no exploitation. Inequalities in wages and salaries, and wealth, are simply due to inequalities in productive contributions to society that come from inequalities in skills, educations, experience and market values of commodities produced by different types of workers according to neoclassical theory. If workers want higher wages, they should find personal or individual ways (not through collective action) to increase their personal marginal productivities and/or find employment in industries that produce commodities that command higher marginal revenues.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;With normal commodities, a budget constraint line can be drawn with just about any y-axis and x-axis intercepts as long as the slope of the line reflects relative price of the commodities represented by it. The point of optimality is where the budget constraint line is tangent to the highest indifference curve. But with labor-power, and the trade-off between income on the y-axis and leisure on the x-axis, the x-intercept is at 24 hours the maximum theoretical time available for leisure. Thus the maximum that the budget constraint line can do is pivot around the x-axis with steeper lines reflecting higher wages and higher y-axis intercepts or substitution effects of income substituted in lieu of leisure. Again individual supply curves are summed up to yield an upward-sloping labor-power supply curve showing wage rate (price per unit) on the y-axis  and quantity of labor-power supplied per unit of time on the x-axis. This model is often employed to show the futility of minimum wage legislation, demand management or any forms of “interference” with supposed “free” markets for labor-power. Ultimately, “free markets” are supposed to set levels of unemployment, real wages, and distributions of income and will reflect both income-leisure preferences and productive contributions of individuals as well.   &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Here Keen notes four basic objections to the neoclassical theory. He argues that labor-power supply curves may well be 1) backward bending so that a fall in wage-rates may induce an increase in quantity supplied of labor-power; 2) when workers face powerful and organized employers, workers will not get fair wages unless they organize; 3) Sraffa’s problems with aggregation of individual supply and demand curves to form market curves apply even more to labor-power markets; 4) notions of workers “freely” choosing between work and leisure is fundamentally flawed.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The argument can be made that at low wage-rates, and thus at low income levels, the imperative to work, or to “substitute income for leisure” (substitution effect) is very high whereas it diminishes at higher wage rates where one can earn higher incomes and at reduced work hours, and, the disutility of labor and progressive taxation effects are likely to outweigh the substitution effects. Plus at low wage rates, the relatively shallow slope of the budget constraint line, is likely to be tangent to a lower level indifference curve at a point of low hours for leisure and relatively high hours to work, whereas at higher wage rates, the point of optimality is likely on a higher utility indifference curve at a point of higher leisure and relatively less work.  All of these factors result in a labor-power supply curve that shows: a) substitution effect &gt; income effect (upward-sloping) at low real wages; b) income, disutility of labor and progressive taxation effects &gt; substitution effects (backward-bending) at high wages and salaries; c) indeterminate (relatively vertical) at medium wages and salaries.  There is no notion of someone working hard just to accumulate money and power as the purpose of work is seen to acquire income that is to be used up in leisure which is equated with consumption of commodities.  Again, with a non-linear, non-smooth, discontinuous and jagged supply curve of labor-power, even assuming a continuous, smooth and downward-sloping demand curve for labor-power, multiple intersections of demand and supply, and thus equilibrium wage rates, are possible. &lt;/div&gt;&lt;br /&gt;-&lt;br /&gt;The notion that workers receive wages proportional to their marginal revenue product contributions, assumes perfect competition in both output/product and input markets. Neoclassical theory admits that when the product and labor-power markets are not perfectly competitive, then incomes do not simply reflect relative MRP contributions but also relative bargaining powers of employers and employees.  In cases where product markets are imperfect, and demand curves are downward sloping giving rise to separate and steeper MR curves, the worker’s marginal revenue product falls more rapidly than under perfect competition because both marginal physical product and MR fall as output increases from more workers being hired (unlike in perfect competition where falling MRP is a function of falling marginal physical product of labor x constant P =- MR). This can be used to argue for unions as workers would be “exploited” being paid wages less than the price (MR &lt;&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Sraffa had two basic critiques of horizontal summations/aggregations of individual supply and demand curves to form market supply and demand curves: one for a broad definition of an industry and one for a narrow definition. Labor-power markets behave like Sraffa’s broad industries. Movements along an upward sloping supply curve between particular wage-rate/quantity supplied points will have implications on income distributions and thus demand for products produced by labor and thus product prices and marginal revenues. This will mean a different demand curve for labor power (MRP) at each point along the upward-sloping supply curve of labor power and interdependence of supply and demand functions; and thus, multiple possible equilibrium wage rates and “perverse” outcomes and incentives.   Finally, few forms of leisure other than sleep do not require income. But if the quantity supplied is a direct function of wage rate, then the lower the wage rate and thus income, the lower the quantity of labor supplied and the higher the supposed “choice” for leisure. In reality, people do not “choose” between work and leisure, not most people; most people simply work to survive and try to do what it takes (quantity, quality and duration of labor-power) to do so.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;This concludes the main points in Part One of Keen’s book that deals with internal logical inconsistencies or contradictions in neoclassical theory. Part Two of the book deals with Keen’s suggestions for a new kind of economics curriculum that offers alternatives to neoclassical theory that is more than just a debate on the existing scope and depth of the typical undergraduate economics curriculum.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen’s Notions of a New Kind of Economics: the Cambridge Re-switching Debate&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen suggests a need to focus on the Cambridge&lt;a style="mso-endnote-id: edn31" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn31" name="_ednref31"&gt;[xxxi]&lt;/a&gt; debate on the real nature, measurability, alleged homogeneity, “productivity” and role of “capital”, in theory versus in reality in undergraduate curricula.  According to Keen, the term “capital” has two meanings in neoclassical theory: a sum of money and a stock or collection of machinery. They assume that the two terms can be used interchangeably with the money value of the machines used as a proxy variable for the physical quantities of very diverse machines.  But machines are often specialized, complicated, made of sub-systems and parts, “lumpy” and not infinitely divisible, and thus diverse physical “units” of capital are difficult to qualify and quantify and thus aggregate either in monetary (money value of machines) or physical terms&lt;a style="mso-endnote-id: edn32" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn32" name="_ednref32"&gt;[xxxii]&lt;/a&gt;.  This inability to define and measure a “unit” of “capital”, or aggregate “units” of “capital”, then UNDERMINES: a) any notion or measurement of the “marginal productivity of capital”; b) any notion of diminishing marginal productivity of capital; c) any notion that, as the neoclassical theory assumes, profit represents the return to the marginal productivity of capital; d) any notion of  the rate of profit depending upon the ‘amount’ of capital rather than the actual case of the measured ‘amount’ of capital depending upon the rate of profit; e) the essential assumption of neoclassical theory that interdependence of industries can be ignored.&lt;a style="mso-endnote-id: edn33" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn33" name="_ednref33"&gt;[xxxiii]&lt;/a&gt; ; f) the traditional diagrams showing “households” supplying “factors of production” (labor and capital) to “business” that use them to produce the goods households buy with their earned incomes; g) the notion that “capital” is some kind of homogeneous substance and that what is capital-intensive depends upon the rate of profit; g) the notion that the rate of return on capital represented the marginal product of capital; h) that a particular production function that had lost its primacy to others at a given rate of profit could not regain its primacy at a higher rate of profit unless it benefited from increasing marginal product for a period of time; i) that capital demand could not be upward as well as downward-sloping and supply curves could not be downward as well as upward-sloping with no definable equilibrium position; j) that there is no consistent relationship between “factor incomes” and “factor productivity”; k) that the rate of profit is not a function of inter and intra-class balances of power; l) that “factor prices” determine the distribution of income rather than the distribution of income between wages and profits being necessary to determine factor prices; the distribution of income, independent of the productive processes and a politico-legal and socioeconomic phenomenon.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;The Need for Epistemology and Scientific Method in Economics Curricula&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In his essay on “There is Madness in Their Method”, Keen takes on, and suggests to be taught in undergraduate curricula, the question of “What is science and scientific method? Keen characterizes neoclassical theory, or “economics” as a “science” but a “pathological” one. He takes on the central axioms or postulates of Philosophical Positivism embodied in neoclassical theory: a) that theory cannot be judged by the soundness of its assumptions only the accuracy of its predictions; b) that predictive accuracy confirms the deductive validity as well as soundness of assumptions of syllogisms and hypotheses; c) that the more significant and all encompassing the theory the more abstract and unrealistic are its assumptions;  d) negligibility can be mixed or not differentiated; e) the instrumentalist notion that theory is never an accurate or even a proximate description of reality, but is merely an instrument for predicting the future&lt;a style="mso-endnote-id: edn34" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn34" name="_ednref34"&gt;[xxxiv]&lt;/a&gt;; f) negligibility .assumptions (minor details may be ignored&lt;a style="mso-endnote-id: edn35" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn35" name="_ednref35"&gt;[xxxv]&lt;/a&gt;) domain assumptions  (about the applicable range of conditions of a theory&lt;a style="mso-endnote-id: edn36" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn36" name="_ednref36"&gt;[xxxvi]&lt;/a&gt;) and heuristic assumptions (for expositional or analytical devices&lt;a style="mso-endnote-id: edn37" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn37" name="_ednref37"&gt;[xxxvii]&lt;/a&gt;)&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In this discussion on scientific method, Keen relies on the taxonomies of assumptions and critiques of philosopher Alan Musgrave et al.&lt;a style="mso-endnote-id: edn38" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn38" name="_ednref38"&gt;[xxxviii]&lt;/a&gt;  He notes that subsequent to the initial developments of macroeconomics, this sub-discipline has been under siege not from any asserted lack of, or concern for, the predictive validity of its models, but from a purported lack of correspondence between core assumptions of microeconomics (rationality, markets in equilibrium etc) to form the core assumptions (micro-foundations) of  macroeconomics; assumptions do matter in neoclassical economics when convenient. Assumptions may be contradictory leading to internal incoherence (the object of Keen’s inquiry) in a theory. Each “science” is a society of practitioners as much as an intellectual discipline with shared mindsets and core postulates (cannot be challenged without challenging the very foundations of a paradigm) and ancillary ones (that serve, and can/will be modified, to protect the core ones) against attacks from other practitioners from other paradigms which will occur as powerful interests are threatened.&lt;a style="mso-endnote-id: edn39" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn39" name="_ednref39"&gt;[xxxix]&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Notions of the equivalence of “superpositionality” (“Schrodinger’s Cat”) found in Quantum Mechanics (different possible positions or aspects of the same phenomenon yielding different approaches or even “laws” having equal validity) or the Heisenberg Effect (phenomena influenced by observations and observers of them) are summarily and incorrectly rejected as impossible by mainstream economics.  Core postulates in economics are held on to far longer and with greater zeal than in any other discipline Keen shows due to sociological and economic interests involved in economic constructs more than in the physical sciences. Popper’s Notion of a science being one that makes potentially falsifiable hypotheses, rather than a discipline that uses experimentation, makes no allowance for if or if not, and on what basis, a statement or hypothesis can in fact by falsified in practice. And the focus/obsession with equilibrium in neoclassical economics is both tautological and ideological dressed up as something else.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In this chapter on scientific method, Keen makes an amazing statement that parallels the “End of History” statement of neo-Hegelian Francis Fukiyama&lt;a style="mso-endnote-id: edn40" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn40" name="_ednref40"&gt;[xl]&lt;/a&gt; that Fukiyama has since repudiated:&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;“At the beginning of the third millennium, there is no competing social system against which capitalism must prove its superiority. Feudalism is long dead, and those socialist societies which remain are either socialist in name only, or bit players on the world stage.”&lt;a style="mso-endnote-id: edn41" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn41" name="_ednref41"&gt;[xli]&lt;/a&gt;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Neoclassical Theory and Time&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In his essay “Let’s Do the Time Warp Again: Why Economics Must Finally Treat Time Seriously” Keen basically rehashes the central points made elsewhere in other essays: a) analyses based on statics and comparative statics do not work well to illuminate or predict aspects of an inherently dynamic economy in which ongoing changes, that take time to occur are the norm; b) small deviations from some supposed equilibrium will not set up morphostatic processes to move the economy back to that equilibrium; c) conventional theory ignores the time-based process through which deviations from equilibrium trigger back-and-forth or negative (morphostatic) reactions leading to a new equilibrium or restoration of a previous one; d) at “higher” levels of analysis, neoclassical theory relaxes the partial equilibrium and “ceteris paribus” assumptions to deal with “all things interrelated”; but instead of a more dynamic and realistic narrative that allows for disequilibrium as well as equilibrium, students get a general equilibrium model purporting to show how all aspects of an economy can be simultaneously in equilibrium—yet they wind up showing that general equilibrium is unattainable within their own paradigm;  e) change in price in one market will affect consumer demand (and thus trigger disequilibria) in other markets especially if trades occur, as they will in the real-world, at non-equilibrium prices&lt;a style="mso-endnote-id: edn42" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn42" name="_ednref42"&gt;[xlii]&lt;/a&gt;;  e) Walras’ vision, solvable with simultaneous linear equations totally falls apart when non-linear difference or differential equations, plus abandonment of the fiction of everything happening at or tending towards equilibrium, are employed&lt;a style="mso-endnote-id: edn43" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn43" name="_ednref43"&gt;[xliii]&lt;/a&gt;; f) Debreu’s general equilibrium model, a parallel of the linear Leontief matrix is inherently unstable as the system cannot reproduce itself on a simple or expanded level (e.g. if the required inputs of iron for year 10 exceed the output of iron in year g) and because prices must be feasible in reality—e.g. non-negative prices;  economics needs to focus on dynamics and not merely as processes between and tending to static equilibrium states; h) economic analysis should be concerned with rates of change not absolute levels of various variables; i) mathematically unstable systems do not merely cause fluctuations around equilibrium states, they may cause break downs and implosions or, they may simply produce chronic disequilibrium (cycles, Chaos Theory and weather/climate systems); j) more than two variables in a system of non-linear differential equations yields no possible analytic solution and simulations must be conducted to see what complexities may happen; k) butterfly effects (with merely three differential equations) in weather modeling yield order-out-of-chaos complexity with three equilibriums all diverging systems away from equilibrium with even small disturbances; l) if equilibria of a system are unstable, then neither the initial nor the final position of the model will be in equilibrium and thus the notion that dynamic analysis plots movements from one equilibrium to another is simply wrong and equilibrium tells you where the model never will be; m) static analysis cannot be used as a proxy for dynamic analysis; n) non-linear relationships in differential equations will lead to complex but bounded behavior.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Neoclassical Theory versus Institutionalists versus Marxism: Aggregation,  Growth, Crises&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen applies to Marx, the Goodwin model of cyclical economic growth first suggested by Marx. Marx noted that in a highly simplified economy made up of only capitalists and workers, there would be recurring cycles of income and employment shares. During high rates of economic growth, associated high levels of employment would lead to higher wage demands eating into profits, causing reduced investment and recessions, which would then produce the opposite conditions of higher unemployment, reduced wages, higher profit levels that would trigger new recovery of higher growth rates, employment levels and wage demands eating into profits… This model reduces down to two central equations:  a) rate of change of workers’ share of output = workers’ wage demand minus (-) the rate of productivity growth; b) the rate of change of employment = rate of growth of output minus (-) population growth and technological change.  &lt;br /&gt;These two equations of Marx’s simplified model are linked as workers’ wage demands depend upon rate of employment while rate-of-growth determining investment depends upon income distribution (higher ratio of wages to output reduces profit and thus investment). These two equations yield cyclical patterns similar to that envisaged by Marx as workers’ share of output and rate of employment both cycle indefinitely and do not tend towards oscillate around some kind of equilibrium. When the variables debt-to-output ratio and government spending are added for more realism, cycles in all variables continue without any exogenous shocks being introduced.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;In his essay on “The Sum of the Parts: Why Keynes’s Criticisms of Conventional Economics are Still Relevant Today”, Keen takes on the origins and history of macroeconomics&lt;a style="mso-endnote-id: edn44" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn44" name="_ednref44"&gt;[xliv]&lt;/a&gt; in overall conventional economics. Macroeconomics was criticized for a long time as a patchwork of ad hoc assumptions, some contradictory, about phenomena at the macro or aggregate level. It was accused of lacking the “logical rigor”, supposed tight foundations and internal coherence of microeconomics&lt;a style="mso-endnote-id: edn45" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn45" name="_ednref45"&gt;[xlv]&lt;/a&gt;.  Since its foundation, macroeconomics has been under siege to more clearly and tightly build its analyses and models on the foundations of microeconomics (micro foundations of macro) no matter what the methodological problems in treating collective social welfare as the product of aggregating or summing of individual welfare situations. But problems of aggregation, along with some other methodological problems, led to the fiction of the supposed “single representative agent” or single producer/consumer as a model of the whole macro economy&lt;a style="mso-endnote-id: edn46" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn46" name="_ednref46"&gt;[xlvi]&lt;/a&gt;. Keynes’ and Marx’s critiques of conventional economics are still appropriate critiques of modern economics.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Neoclassicals, like political conservatives in general, see the whole or macro as, and equal to, a mere summation of its parts or micro elements. This stands in contrast to the Institutionalists, who see the whole as greater than the sum of its parts (due to synergy or the potential energy embodied in complementarity and synchronicity of parts of a system). Marxists and Marxians see systems as wholes that can be greater, or less, than the sums of their parts due to progressive and regressive roles and balances of contradictions within, defining and driving, all systems. Neoclassicals see “causality” as linear and unidirectional with ultimate independent (exogenous shocks) and dependent variables (final effects) with endogenous (internal) morphostatic (self-equilibrating) processes between causes and effects. Complexity theorists, Institutionalists and Marxists see “over-determination”, non-linearity, order in chaos and chaos in order, and chronic disequilibria of systems&lt;a style="mso-endnote-id: edn47" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn47" name="_ednref47"&gt;[xlvii]&lt;/a&gt;. Neoclassicals assume that the economy can be meaningfully analyzed as a separate sphere of society, without any reference to socioeconomic and politico-legal or environmental contexts or history, whereas Marxists and Institutionalists make no such assumptions. Neoclassical theory assumes a separate and “pure” science of “Economics” is possible and “scientifically” more useful than the approaches of “political economy”. The Neoclassicals assume an abstract model of universal humanity, Homo Oeconomicus, (free of gender, age, race, ethnicity, social class, educational background etc) or the “representative agent” that is used to predict human behavior. Institutionalists and Marxists assume many variables (some biological, social, historical, contextual and stochastic) govern and shape forms and content human behavior in diverse contexts. Neoclassicals see the test of the scientific worth and validity of all theory (including validity of the logic and assumptions of theory) is predictive validity. Marxists assume a dialectical unity of theory and praxis, each informing the other, with the purpose of theory not only to predict and guide action, but to explain the essences of things and to provide useable foundations for further theory and praxis. And where Neoclassicals claim their science to be “value-free”, Marxists openly proclaim their science to be developed and applied and “biased” in the service of the oppressed and against oppressors.  In Neoclassical theory, the focus is on individuals, consumption, and exchange.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Say’s Principle or Walras’ Law: Marx vs Keynes&lt;br /&gt;- &lt;/div&gt;&lt;div align="justify"&gt;Say’s Law, sometimes called “Walras’ Law” or “Say’s Principle” is an example of a notion of the macroeconomy as morphostatic system where “Supply creates its own demand” or in modern terms “The Sum of all notional excess demands is zero.”  It is based on the supposed “Income-Output Identity” that says since all expenditures are costs, and all that are costs for some, are also revenues incomes for someone else, thus the nominal money value of all costs of total output must equal the sum of the various forms of incomes earned producing those goods and services that make up total output, “therefore” Supply (output) will always create sufficient incomes to demand that which has been supplied and in the aggregate, there will always be sufficient demand to justify supply. This model assumes a highly competitive economy in which prices are as free to fall as to rise. Individual agents may be net buyers or sellers of various goods and services but in sum their excess demands will be zero carrying over to the whole economy when all agents are aggregated. All of this implies that intervention of any forms, in a supposed “self-regulating and self-equilibrating economy would lead to cures worse than the diseases they were intended to treat. Since prices (wages, interest rates, rents, product prices) were assumed to be perfectly flexible upwards and downwards, any short-run deviations or notional excess demands were assumed to be zero in the long-run. If Savings(S) &gt; Investment(I), then supposedly, according to Neoclassical theory,  interest rates were too high, they would fall, causing increased quantity demanded of loanable funds to be used for increased investment, and quantity supplied of loanable funds would fall until S = I. If demand for consumer goods fell (notational excess demand negative), demand for investment goods would supposedly rise (notational excess demand positive) and offset the fall in demand for consumer goods. If Tax revenue were greater than Government Spending, the economy would slow down, rising unemployment and falling incomes would cause both falling tax revenues and rising government expenditures on transfer payments, until T = G. If imports (M) &gt; Exports(X) then net outflow of money supply would reduce the general price level (Quantity Theory of Money) which would then make exports cheaper and stimulate export demand, make imports relatively more expensive and reduce import demand, until, voila, M = X. And finally, if unemployment is on the rise, it “must mean” that real wages are too high and thus when wages fall and those unemployed are willing to worker harder for lower wages  they will no longer be “voluntarily unemployed”. This was the narrative and vision of “Says Law” or “Walras Law”.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Here Keen first brings in the voice and critique of Say’s Law by Keynes who divided the economy into consumer goods and investment goods sectors. If for example, notional excess demands for consumer goods goes negative, then instead of notational excess demands for investment goods being positive to offset the rising surpluses of consumer goods as Say’s or Walras’ “Law” would predict, then, since investment is based on profit expectations, then a fall in demand for consumer goods and rising unemployment, more than likely, leads to general pessimism. The net result will more likely be more, not less, negative notational excess demands for investment goods as well as for consumer goods, and thus a cumulative-change-based downward and general slump of the whole economy.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Marx’s critique of Say’s Law was more penetrating than Keynes’ according to Keen. Marx took on the central implicit assumption of Say that commodities are sold to acquire money to be used to immediately purchase other commodities and none is used to accumulate wealth. But the central desire, and indeed systemic and contextual imperative of capitalists and thus capitalism, is to accumulate surplus-value, wealth and market power, and expanded reproduction of the system itself, at risk, of loss of market power and competitiveness, and thus of eventual failure of the business, for failure to do so relative to competitors.  If every agent’s intended excess demand were zero, then capitalists, would not be able to produce surplus value.&lt;a style="mso-endnote-id: edn48" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn48" name="_ednref48"&gt;[xlviii]&lt;/a&gt; Say and Walras envisaged an economy with no production, only pre-existing commodities exchanged with each agent striving to covert commodities of “fair” and “equal” values. (C1 ----M-----C2) where C1 and C2 are commodities with different use values but equivalent exchange values and M = Money. But capitalists, according to Marx are governed by capital circulation circuits that violate Say’s/Walras’ ‘Law’: M----C----M’ where M is the money advanced to purchase commodities (C) labor-power and raw materials that produce value greater than the costs of the labor power and other inputs to be sold at a sum M’ &gt; M. The capitalists are driven to supply more (product commodities) than they demand (input commodities)  with the difference accumulated surplus-value, which means their excess demand is negative and the sum of all excess demands is negative not zero violating Say’s/Walras’ Law.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Further this is all happening over time ignored in the neoclassical analysis even with comparative statics. Economic growth requires sustained and rising aggregate demand to trigger and justify rising investment, employment, aggregate supply, incomes etc. This requires, according to Keen, citing Minsky that summed-up over all sectors, current spending plans be greater than current received income.  This means that production, exchange, and credit, be seen as integrated and holistic aspects of all capitalist economies. &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Several Neoclassical notions are taken on by Keen: a) of the rate of profit being driven down by competition to “normal profit”; b) the marginal product of capital (marginal contribution of capital to output and treated as a “cost” of capital or zero notation) taking profit (or even super-profit in the short-run) as a variable out of economic theory in the long-run; the notion of Walras’ Law on the sum of notational excess demands equal to zero providing a sort of center of gravity around  which the economy and its sectors oscillate. Marx’s analysis and critique of Say’s Law was far more penetrating than was Keynes’ and Keynes actually embraced Marx’s critique after becoming aware of it. But Keynes did add to the discussion according to Keen with his introduction of the difference between uncertainty and risk in investment and the imperative for “rules of thumb” and heuristics in investment planning. We project our highly imperfect understanding of the present on to the future (e.g. liquidity preference) leading to highly volatile investment, employment and output structures and patterns. Keynes also took on the concept of marginal efficiency of capital (MEC or MEI = ratio of yield of capital to price of capital) as ‘indeterminate’ because of volatile asset prices and a different MEC for each asset price. Instead of the MEC being a determinant of investment, it may be better regarded as a by-product of investment and current expectations&lt;a style="mso-endnote-id: edn49" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn49" name="_ednref49"&gt;[xlix]&lt;/a&gt;. Thus, according to Keynes, because of risk versus uncertainty, expectations about the future based on the present, liquidity preference determining the rate of interest, speculative capital asset prices, Saving and Investment could well be out of balance for protracted periods&lt;a style="mso-endnote-id: edn50" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn50" name="_ednref50"&gt;[l]&lt;/a&gt;.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The demise of the IS-LM rendition of Keynes by Hicks led to other paradigms and models such as the “Rational Expectations” school and then the “representative agent” model of the macroeconomy.  The Rational Expectations School was a reaction to the 1970s stagflation and the undermining of the so-called Phillips’ “trade-off between inflation rates and unemployment rates by both falling real output and rising unemployment (stagnation) and rising inflation rates.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The Phillips’ Trade-off: Unemployment or Inflation&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;The Phillips’ Trade-off between unemployment and inflation rates was partly based on the Classical assumption, embodied in the Quantity Theory of Money, that inflation was due to excess rates of growth of money supply and thus was demand-side based. To reduce unemployment required stimulating aggregate demand the price of which would be higher inflation. To reduce inflation meant reductions in aggregate demand the price of which would be higher unemployment. But how to explain both rising unemployment and inflation rates and save the cornerstones of Classical/Neo-classical theory? The “Rational Expectationists” (RE) argued that the predictions of all economic agents would correspond with the predictions of the IS-LM model and that those predictions would be correct. If not-expected, an increase in money supply would reduce unemployment with a lag in time until the inflation occurred. If the inflationary effects of an expansionary monetary policy were correctly predicted and anticipated, then according to the RE school, then they would raise prices immediately to get ahead of the predictable and predicted inflation, with the result that rising general costs with rising prices, would only cause decreases in aggregate supply, exacerbating inflation, and also mitigate any unemployment reducing effects of an expansionary monetary policy. This theory diminished in the 1980s with repeated demolition by empirical evidence; but it shows how traditional economics will attempt to rescue core postulates of a theory of a self-adjusting/equilibrating macroeconomy, when under assault by reality and empirical evidence, by creative “adjustments”, utilizing totally bogus ancillary and rescuing ad hoc assumptions.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Market Efficiency and Asset Pricing&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen’s final chapter in Part II, the whole section of which is on complexities or issues that should be part of a sound education in economics, deals with market “efficiency” and asset pricing in financial markets: “The Price is not Right: Why Finance Markets Can Get the Price of Assets so Badly Wrong. Here Keen takes on the assumptions and “logic” of traditional theory on financial markets: 1) the assumption that all financial investors have identical expectations about all financial prospects of all companies; 2) that these identical expectations of all investors are correct; 3) that all investors have unlimited credit; 4) the markets clear with respect to every interval of time; 5) all debts must be paid. These core assumptions are employed to argue, or rather summarily assert&lt;a style="mso-endnote-id: edn51" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn51" name="_ednref51"&gt;[li]&lt;/a&gt;, that competitive financial markets will correctly (“efficiently”) price assets even with uncertain future earnings.  &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen then takes on the conventional theory with a critique of the work of Irving Fisher whose own failure to predict the 1929 stock market crash and later Great Depression led to his own personal financial ruin. Here some of Keen’s critiques are prophetic with respect to the current global financial crises and meltdown as he walks through Fisher’s 15 determinants of stock price levels and Fisher’s own failure to apply them, along with the failure of his own models, in the sudden evaporation of his wealth. Instead of being in or tending toward equilibrium, Fisher saw financial markets as deviating further from supposed equilibrium if disturbed, and even fully imploding depending upon debt loads, how many debtors were totally broken, over-investment, over-speculation, deflation, rising real value of debt, pessimism, hoarding, and reductions in the money supply set off chain reactions leading to the Great Depression and modifications of Fisher’s pre-Depression work. Keen critiques here of any notions of financial markets being inherently efficient and self-equilibrating. They are, he argues, inherently unstable, inefficient, highly speculative vehicles in an uncertain environment and volatile ‘fractal markets’ that overreact to good and bad news, generate cycles in asset prices and drive speculative booms and bubbles along with debt-driven busts and implosions.&lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Keen and Reforming Capitalism&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Part Three of his book of essays ends with proposals for “Alternatives” to the menu typically served in most undergraduate programs in Economics. In his essay “Finance and Economic Breakdown: Why Stock Markets Crash, he suggests the need to explore some of the central constructs of Chaos Theory, the Fractal Markets Hypothesis&lt;a style="mso-endnote-id: edn52" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn52" name="_ednref52"&gt;[lii]&lt;/a&gt;, the Inefficient Markets Hypothesis (endogenous instability accounts for ¾ of all volatility with real impacts on the real economy in crowding out investment etc), the Financial Instability Hypothesis of Minsky (how finance interacts with the real economy to produce booms and busts via Ponzi schemes and deleterious debt-to-asset ratios) and proposals for regulatory reforms of financial markets. Here Keen notes that:&lt;br /&gt;- &lt;/div&gt;&lt;div align="justify"&gt;“ Reform, of course, cannot make capitalism stable; but it can remove the elements of our corporate system which contribute most strongly to instability.” &lt;a style="mso-endnote-id: edn53" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn53" name="_ednref53"&gt;[liii]&lt;/a&gt;&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Here Keen suggests exploring some proposed reforms to reduce the volatility and casino-like atmosphere of the stock markets and appears intent to show that such proposals&lt;a style="mso-endnote-id: edn54" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn54" name="_ednref54"&gt;[liv]&lt;/a&gt; are not that “radical”. Why he would avoid the use of the word radical or find radical solutions problematic we can only speculate if we dare.&lt;a style="mso-endnote-id: edn55" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn55" name="_ednref55"&gt;[lv]&lt;/a&gt; But I do find, in his general focus on internal logical inconsistencies of Neoclassical theory, an absence any discussion of the real world consequences, on real people, of the bankrupt and contrived assumptions of Neoclassical theory when they are taught, accepted, acted upon and embodied/applied in real-world policies.  The words “imperialism”, “genocide” and “racism” are not even mentioned in the index to his book. &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Keen, who describes himself as a “critic of neoclassical economics who likes mathematics”, provides an interesting discussion on the uses and misuses of mathematics in his essay “Don’t Shoot Me I am Only the Piano: Why Mathematics is not the Problem”. Complaints about the misuses of mathematics he argues, is like blaming the instrument (piano) for the discordant playing of the piano player. He argues that new approaches to the teaching of Economics should focus on math not only as a tool to illuminate reality, but also as a tool to identify, critique and expose the contradictions and misuses of mathematics in neoclassical theory. He explores “Bad Mathematics”&lt;a style="mso-endnote-id: edn56" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn56" name="_ednref56"&gt;[lvi]&lt;/a&gt;; “Limits to Mathematics”&lt;a style="mso-endnote-id: edn57" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn57" name="_ednref57"&gt;[lvii]&lt;/a&gt;; “The Recurring Nightmare of Straight [and smooth or continuous] Lines”&lt;a style="mso-endnote-id: edn58" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn58" name="_ednref58"&gt;[lviii]&lt;/a&gt; and a slight discussion on the future of mathematics .   &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;Keen and His Views of Marxism&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;In turning to some alternatives to neoclassical economics, Keen makes the following statement:&lt;br /&gt;-&lt;br /&gt;“We now turn to some of the alternatives to conventional economics that do exist—warts and all.  We begin with the most radical alternative—Marxian economics.  You may, if you have typecast me as ‘left-wing’ expect me to praise Marxian analysis. If so, you are in for a surprise.”&lt;a style="mso-endnote-id: edn59" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn59" name="_ednref59"&gt;[lix]&lt;/a&gt; &lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen’s essay or chapter on “Marxian Economics” has the provocative title “Nothing to Lose but Their Minds: Why Most Marxists&lt;a style="mso-endnote-id: edn60" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn60" name="_ednref60"&gt;[lx]&lt;/a&gt; Are Irrelevant But Most of Marx is Not.” Here he argues against Marx’s theory of surplus value and the notion that it comes from labor alone and is the difference between the value of output created by activated labor-power (labor) and the commodity labor power (capacity to labor). Keen claims that Marx did not understand his own logic and had proposed a theory on the foundation of reasons that he himself had previous shown to be erroneous. He also argues that “Marxian economics” still remains a powerful tool for understanding the essence and dynamics of capitalism as long as one does not accept the inevitability of the demise of capitalism to due self-implosion from its own defining and internal contradictions.  But Keen does argue that Marx was far more than as Samuelson characterized him: “a minor Post-Ricardian” and notes that Marx’s theory of value&lt;a style="mso-endnote-id: edn61" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn61" name="_ednref61"&gt;[lxi]&lt;/a&gt; actually liberates classical economics from the centrality of the labor theory of value providing a deep and critical understanding of capitalism.  Here Keen goes through and dismisses the Physiocratic notion that “Land” (which existed/exists prior to and without Capital and Labor) is the source of “Value”.  He dismisses Smith’s labor theory of value on the grounds that a theory or model of labor as a sole source of value, could not determine price, yet ratios of values (of only direct forms of labor) were supposed to determine exchange ratios and thus no allowance for profits and rent in pricing. Adam Smith was left with an adding-up (of “costs”) theory of price determination and thus no strict relationship between value and price.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Ricardo, who accepted Smith’s labor theory of value differentiated between “labor embodied” (direct labor time) and “labor commanded” (labor time plus profit and rent or both direct and indirect labor time) with embodied labor being less volatile than commanded labor in price determination. Ricardo, unlike Smith, argued that machinery created no net value or value in excess of its own value or the value lost in depreciation.    &lt;br /&gt;-&lt;br /&gt;Marx critiqued Ricardo for understanding, on the one hand, that the value of labor-power (wages) is less than the value of output produced by that activated labor-power (labor) while on the other hand not asking why the difference that gives rise to surplus value. Marx rejected Smith’s notion of possible “productivity of capital” arguing that value ‘created’ equals value lost (depreciation) by capital. But Marx was careful to avoid any theory of surplus-value or profit that depended upon buying cheap and selling dear in exchange and assumed that on the average, commodities sell at their real values (socially necessary labor times) and profits are the result of selling them at real values (real values of output produced by labor and value of labor power or capacity to work that is utilized for labor) on the average.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen’s critique of Marx includes the so-called “Transformation Problem” (values into prices) which he treats relatively lightly.&lt;a style="mso-endnote-id: edn62" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn62" name="_ednref62"&gt;[lxii]&lt;/a&gt;  He also takes on Marx’s “Labor Theory of Value and Surplus Value” with the claim that three of Marx’s central assumptions violate his own general approach to commodities: a) that with respect to means of production, purchasers make use of exchange but not use value; b) that their use-values cannot exceed their exchange values; c) that the use-values of commodity inputs (machinery, intermediate goods and raw materials) are transferred to the use-values of the commodities they create as long as they lose their exchange value. These assumptions, Keen argues violate Marx’s general approach to the analysis of the commodity&lt;a style="mso-endnote-id: edn63" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn63" name="_ednref63"&gt;[lxiii]&lt;/a&gt;. He argues that in attempting to rescue his theory of value and surplus-value from internal contradictions, Marx wound up in compromise with his own principles and postulates&lt;a style="mso-endnote-id: edn64" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn64" name="_ednref64"&gt;[lxiv]&lt;/a&gt;. Keen argues for an abandonment of the labor theory of value and the notion that only labor can create value or surplus-value. He also argues that the appreciation and usefulness of the full richness of Marx’s contributions, often misunderstood or caricatured by Marxists and Marxians themselves according to Keen, can only be restored by differentiating between Marxism and the works of many Marxists driven by ideology to rescue Marx from internal contradictions in the same fashion as neoclassicals are driven by ideology to attempt to rescue neoclassical economics from its own contradictions. Yet it was Marx himself, who urged in a letter to Arnold Ruge, not the utopian “construction of the future for all time”, but rather the “ruthless criticism of everything that exists; the criticism being ruthless in the sense that it neither fears its own results (even if in opposition to Marx’s results) nor fears conflict with the powers that be.”&lt;a style="mso-endnote-id: edn65" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn65" name="_ednref65"&gt;[lxv]&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;-&lt;br /&gt;I fear that Keen, who decries some of the alleged inconsistencies Marx’s unfinished work, some of the alleged errors of applied Marxism and the alleged self-absorption of some Marxists, even Marxians, does not understand that Marxism represents far more than the unfinished manuscripts of Marx or many of the self-proclaimed Marxists and Marxians that inhabit the halls and journals of Western academia with which he is familiar.&lt;br /&gt;-&lt;/div&gt;&lt;div align="justify"&gt;Keen’s final essay/chapter is entitled “There are Alternatives: Why There is Still Hope for a Better Economics”. He gives a very brief overview supposed strengths and weaknesses of Austrians&lt;a style="mso-endnote-id: edn66" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn66" name="_ednref66"&gt;[lxvi]&lt;/a&gt;, Post-Keynesians&lt;a style="mso-endnote-id: edn67" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn67" name="_ednref67"&gt;[lxvii]&lt;/a&gt;, Sraffians&lt;a style="mso-endnote-id: edn68" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn68" name="_ednref68"&gt;[lxviii]&lt;/a&gt;, Chaos-Complexity theory&lt;a style="mso-endnote-id: edn69" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn69" name="_ednref69"&gt;[lxix]&lt;/a&gt; and Evolutionary economics&lt;a style="mso-endnote-id: edn70" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_edn70" name="_ednref70"&gt;[lxx]&lt;/a&gt; none of which he claims can take over as the dominant paradigm for the 21st century, which he said, in 2001, awaits a global crisis of capitalism.&lt;br /&gt; &lt;br /&gt;&lt;a style="mso-footnote-id: ftn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ftnref1" name="_ftn1"&gt;&lt;/a&gt;&lt;br /&gt;&lt;a style="mso-endnote-id: edn1" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref1" name="_edn1"&gt;[i]&lt;/a&gt;.Keen Steve Debunking Economics: The Naked Emperor of the Social Sciences. Zed Books, London, 2003; see his essay in this book entitled “Nothing to Lose But Their Minds: Why Marxists are Irrelevant But Most of Marx is Not” pp. 269-99; see also support for the book at &lt;a href="http://www.debunking-economics.com/"&gt;http://www.debunking-economics.com&lt;/a&gt; &lt;/div&gt;&lt;div align="justify"&gt;&lt;a href="http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/"&gt;http://www.debtdeflation.com/blogs/2009/01/31/therovingcavaliersofcredit/&lt;/a&gt;  www.stevekeen.net&lt;br /&gt;&lt;a style="mso-endnote-id: edn2" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref2" name="_edn2"&gt;[ii]&lt;/a&gt; Keen critiques what is typically taught at undergraduate levels not some sophisticated modifications of neoclassical theory taught in graduate schools.&lt;br /&gt;&lt;a style="mso-endnote-id: edn3" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref3" name="_edn3"&gt;[iii]&lt;/a&gt; Keen Steve, Ibid Zed Books, London, 2003, p. 4&lt;br /&gt;&lt;a style="mso-endnote-id: edn4" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref4" name="_edn4"&gt;[iv]&lt;/a&gt;  Keen, Steve, Ibid. cite of Lancaster, K and Lipsey, R.G. “The General Theory of the Second Best”, 1956, “Review of Economic Studies” Vol. 24:  11-3. The  theory of second best notes: a single step to an ideal situation reduces net social welfare if two or more  steps are required to move from a present to ideal situation—all or none ideal solution.&lt;br /&gt;&lt;a style="mso-endnote-id: edn5" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref5" name="_edn5"&gt;[v]&lt;/a&gt;  Keen notes in his opening essay “No More Mr. Nice Guy”: “Clearly then, my target in this book is not economics in general, but the dominant school of thought within economics.” Keen,  Steve, op cit. p. 10 &lt;br /&gt;&lt;a style="mso-endnote-id: edn6" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref6" name="_edn6"&gt;[vi]&lt;/a&gt;  “Marxians” are typically academics who study and appeal to some of the core concepts of Marx, mostly on the basis of the superiority of Marx’s theories or theoretical system in terms of empirical support for core constructs and/or in explaining and predicting—more than in transforming—reality. Often their objections to the core postulates and axioms of neoclassical economics are as “a-priori” as are the postulates and axioms of the Neoclassicals to which they take exception; and they are often based on what is of particular interest intellectually to them personally, rather than on any documented practical utility (in concrete struggles, under concrete conditions, of concrete oppressed peoples), of the theories they develop. Marxists, on the other hand, are guided by the notions of unity of theory and praxis, seeking truth from facts, and Marx’s 11th Thesis on Feuerbach that is the inscription on his grave at Highgate cemetery in London:  “The Philosophers have only interpreted the world in various ways; the point, however, is to change it”. Marxists are thus very concerned with how theory advances and is in turn tested by application in concrete praxis.&lt;br /&gt;&lt;a style="mso-endnote-id: edn7" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref7" name="_edn7"&gt;[vii]&lt;/a&gt;  Some of the American leftist academics have found themselves at places like the Santa Fe Institute doing work in non-linear dynamics, Chaos-Complexity theory, “ordinary differential equations” (e.g. third-order non-linear differential equations) applied to issues. Although Chaos-Complexity theory contains some parallels with core postulates and approaches of dialectical materialism (unstable equilibriums;  perpetual change; cumulative change via positive feedback loops; morphogenetic instead of Newtonian-like and self-equilibrating morphostatic systems;“negation of the negation”; order underneath chaos and potential chaos in all order due to fundamental contradictions; non-linear change; etc), some call Chaos-Complexity theory “faux” or “mechanical” or “vulgar” or “academic” dialectics” because of an emphasis on a-priori model building and testing outside of real-world praxis to apply and test the theory.  Keen himself calls Chaos theory and evolutionary economics “alternative religions”.&lt;br /&gt;&lt;a style="mso-endnote-id: edn8" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref8" name="_edn8"&gt;[viii]&lt;/a&gt; Keen, Steve, op cit. p. 14&lt;br /&gt;&lt;a style="mso-endnote-id: edn9" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref9" name="_edn9"&gt;[ix]&lt;/a&gt; Some critics of neoclassical economics see it as an essentially coherent  and internally consistent theoretical system founded on three basic meta-postulates, composed of several sub-postulates, that are fundamentally bankrupt: I Methodological Individualism; II Methodological Instrumentalism; III Methodological Equilibration Arnsperger, Christian and Varoufakis, Yanis, “What is Neoclassical Economics?”, Post-autistic Economics Review  Issue 38, July 2009 cited in Craven, James in “Neoclassical Economics and Neo-liberalism as Neo-imperialism”, paper presented to The Academy of Marxism, Chinese Academy of Social Sciences (CASS), August 11, 2009. Beijing, PRC.&lt;br /&gt;&lt;a style="mso-endnote-id: edn10" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref10" name="_edn10"&gt;[x]&lt;/a&gt; Keen, Steve, Ibid. p. 8 Here Keen asserts that it is the lack of internal consistency in the neoclassical theories and neoliberal policy prescriptions, rather than the class-nature of the values, approaches and objectives of the theories and policies, that prevent their usefulness in illuminating, understanding and transforming the aspects of the real world that they model. He does not appear to allow for a logically internally consistent and coherent theoretical system that is totally bankrupt in its ability to understand or transform the real-world because the class it was designed to serve, against the interests of other classes, is a doomed class from its own internal contradictions, imperatives and balances of forces in the real world.&lt;br /&gt;&lt;a style="mso-endnote-id: edn11" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref11" name="_edn11"&gt;[xi]&lt;/a&gt; Giffin goods are inferior goods whose actual consumption declines as income increases. Necessities are goods whose consumption as a share of income declines. Luxuries are those goods whose actual consumption and share of total income rise as income rises. Representative goods ate those whose share of income spent on them is constant regardless of level of income (do not exist). Engels curves, which map the changes in spending patterns as incomes change, can assume any shape. For Bentham’s postulate (the whole is a simple sum of its parts) to hold true, Engels curves would have to have a constant slope (fixed distribution of income which violates the assertion that relative incomes are determined by the price system) or, they must all have a constant slope (which means Engels curves must be linear straight lines and thus goods are neither necessities nor luxuries) and the same slope (all have identical tastes). These are known as ‘homothetic’ and ‘affine’ Engels curves (meaning that Bill Gates spends every dollar the same way as everyone else and no one’s structures of consumption vary as a function of age, income or other factors). These assumptions needed to derive social utility from the sum of the individual utilities—that all individuals are identical and unchanging, or, that society is made up of only one individual consuming one good, are absurd on their face yet are employed in neoclassical analysis which attempts to get around the absurdity with the construct of the “representative consumer” or ‘SMD conditions’, another absurdity).&lt;br /&gt;&lt;a style="mso-endnote-id: edn12" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref12" name="_edn12"&gt;[xii]&lt;/a&gt; According Stanley Jevons one of the founders of neoclassical economics, behavioral motives from compassion, conscience, religious or other sources, that cannot be simply reduced to utility maximization and pain avoidance, also play a role in human behavior but cannot be easily, if at all, mathematically modeled).&lt;br /&gt;&lt;a style="mso-endnote-id: edn13" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref13" name="_edn13"&gt;[xiii]&lt;/a&gt;  Conventional consumer indifference curves assume: a) Completeness (various possible combinations of two goods, A and B,  can be rationally, consistently ranked at the ordinal but not cardinal level (qualified as more, less, or equal but not quantified)  in terms of utility they yield to a particular individual; b) Transivity (If A preferred to B and B to C then A to C preferred); c) Non-satiation (more preferred to less); d) Convexity (“Law” of Diminishing Marginal Utility gives rise to convex shape of indifference curves); e) All income is consumed in the present with saving simply treated as consumption of future goods; f) individual demand curves derived from individual indifference maps as budget constraint lines pivot with changes in relative prices with income constant, and uncritical parallel shifts with relative prices constant and income changing; g) labor supply is simply a choice between income and leisure with the slope of the budget constraint line equal to the real wage; h) choices between present and future consumption of goods are indifference curve maps with relative prices replaced with the rate of interest or rate of time preference.    &lt;br /&gt;&lt;a style="mso-endnote-id: edn14" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref14" name="_edn14"&gt;[xiv]&lt;/a&gt;  This is analogous to someone with size-10 feet putting on a size-7 shoe and when the shoe does not fit, that person elects to amputate his toes to make the size-7 shoe fit rather than seek a properly-sized shoe.&lt;br /&gt;&lt;a style="mso-endnote-id: edn15" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref15" name="_edn15"&gt;[xv]&lt;/a&gt; Keen, Steve, op cit, p. 52  cites the work of Alan Kirman on “collectively coherent” group behavior;&lt;br /&gt;&lt;a style="mso-endnote-id: edn16" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref16" name="_edn16"&gt;[xvi]&lt;/a&gt; Traditional neoclassical theory, which defines short-run as a time period in which at least one factor of production is fixed (say land or “capital”) while others vary (say “labor”) and “factor crowding” of the fixed factors; this leads to diminishing marginal productivity and thus rising marginal and average costs as output increases. This perspective tends to weigh the factor-crowding effects stronger than the offsetting, synergistic and cost-reducing effects of increasing specialization and division of labor coupled with the human capacity to learn and adapts to reverse emerging conditions like diminishing marginal productivity. Thus, in the real-world, unlike the textbook diagrams done by graphic artists for aesthetics, marginal and average cost curve are gentler, L-shaped rather than u-shaped, and less steeply rising; and thus supply curves may be flat or even downward sloping. The only way that the marginal cost curves could rise so slowly, while average costs curves rose so steeply, as neoclassical theory assumes and the textbook diagrams illustrate, is if only “trivially small” quantities of output were being produced.&lt;br /&gt;&lt;a style="mso-endnote-id: edn17" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref17" name="_edn17"&gt;[xvii]&lt;/a&gt; Piero Sraffa argued, as early as 1926, that the so-called “law of diminishing marginal returns” will not apply in general to an industrial economy where constant marginal returns, and thus constant marginal costs and a flat market supply curve would likely prevail. This was a direct attack on neoclassical theory of production in which diminishing marginal returns is the central “law or axiom” to analysis of all of production. In the event of constant marginal returns being the norm, then both the output and total revenue functions would both be straight lines through the origin with the slope of the total revenue line being greater (hopefully for the producer) than the slope of the cost curve. Once fixed costs were covered, there would be additions to total profits with every unit sold with more output adding more profits to infinity. Mainstream economists when given the Sraffa critique respond with even if it works in practice, does it work in theory?” which is the opposite of what science asks: “Even if it works in theory, does it work in practice?”&lt;br /&gt;&lt;a style="mso-endnote-id: edn18" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref18" name="_edn18"&gt;[xviii]&lt;/a&gt; Sraffa, Piero, “The Law of Returns Under Competitive Conditions”; “Economic Journal”, 40: pp 538-550; “The Trees of the Forest: A Criticism”; “Economic Journal, 44: pp 89-92; cited in Keen, Steve, op cit. p 317.  If, increasing supply in agriculture, relative prices of land and labor change, then this changes the distribution of income and thus demand curve with a different demand curve along each of the points of the supply curve and thus it is impossible to draw independent supply and demand curves that intersect at just one place.&lt;br /&gt;&lt;a style="mso-endnote-id: edn19" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref19" name="_edn19"&gt;[xix]&lt;/a&gt; The notion of a smoothly falling demand curve and a smoothly rising supply curve intersecting to determine market price becomes an illusion. Where MC = MR, the MR of the last unit sold will be substantially greater than the MC of producing it and thus output is constrained not by MC but by costs of expanding sales at the expense of competitors. Instead, according to Sraffa, in the real-world, firms have a target output level they try to exceed and a target mark-up or profit margin they try to maintain with the size of the firm constrained by its market niche and access to favorable credit for expansion.&lt;br /&gt;&lt;a style="mso-endnote-id: edn20" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref20" name="_edn20"&gt;[xx]&lt;/a&gt;  With a flat production function, the MRP will be constant in pure competition (constant MPP x constant P = MR) and thus will never intersect the real wage and thus the firm’s output level cannot be explained by cost or real wage of employing labor-power.&lt;br /&gt;&lt;a style="mso-endnote-id: edn21" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref21" name="_edn21"&gt;[xxi]&lt;/a&gt; Neoclassical theory has three notions of time: market period in which no factor of production can be varied; short-run with at least one factor of production constant so that increasing output is subject to diminishing returns; and long-run in which all inputs can be varied; this is still a comparative statics approach. &lt;br /&gt;&lt;a style="mso-endnote-id: edn22" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref22" name="_edn22"&gt;[xxii]&lt;/a&gt; Keen, Steve op cit. p.80.  Keen gives a useful metaphor to illustrate his point. If deriving a car over a given distance, to calculate optimum speed to maintain to achieve optimum fuel consumption over a given distance., One would need to know lowest gas consumption per unit of distance traveled per second because if you work out the optimum speed first, then the lowest gas consumption is at zero km per hour which means zero distance. Since time is an essential aspect of economic behavior as distance is an essential aspect of travel, both problems have to be worked out simultaneously. The economic analogy  for finding total profit maximization is equivalent to finding first optimum speed for gas consumption then multiplying it by distance traveled which winds up saying that the cheapest way to get from point A to point B is at zero miles per hour.&lt;br /&gt;&lt;a style="mso-endnote-id: edn23" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref23" name="_edn23"&gt;[xxiii]&lt;/a&gt; Problems in the neoclassical theory of monopolies are illustrated via a metaphor of trying to convince someone that the earth is flat starting from the premise that it is a sphere. A small plot of land on which someone is standing appears flat for all intents and purposes and any curvature is not noticeable and thus would be treated as zero curvature for all intents and purposes. When adjacent plots of land are brought into the discussion, larger segments also appear flat so that when all are aggregated, the earth appears flat. &lt;br /&gt;&lt;a style="mso-endnote-id: edn24" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref24" name="_edn24"&gt;[xxiv]&lt;/a&gt; In neoclassical theory, as it is taught typically at the undergraduate levels, demand curves of monopolies and other imperfect competitors, are presented as linear, smooth and downward-sloping and thus, marginal revenue curves are also shown as linear, downward sloping, smooth, and intersecting the x-axis at half the distance from the origin to the x-intercept of the demand curve.   &lt;br /&gt;&lt;a style="mso-endnote-id: edn25" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref25" name="_edn25"&gt;[xxv]&lt;/a&gt; According to Keen if individual firms operate where MC = MR, then collectively, at the market level, the pure competitors will be operating where collective marginal costs exceed marginal revenue. Here Keen’s explanation of the rationale of the MC = MR rule in neoclassical economics needs further elaboration. The MC = MR rule is based on the notion that the central imperative for all capitalists is maximization of total profits (actually of real, after-tax, risk-adjusted total profits) not marginal profit or unit margin which would be where the MR &gt; MC gap would be greatest. Thus up to but not beyond where MC = MR, although unit profit margins are falling with an increasing marginal cost curve and a flat MR curve, even the last unit of output before where MC = MR yields “infinitesimal” profit which “ain’t zero” (Keen’s point on aggregation problems) and thus adds to total profits just as minimizing losses, deductions from total profits, minimize reductions of total profits. This point is not made clear in treating MC = MR as a “term” of zero. &lt;br /&gt;&lt;a style="mso-endnote-id: edn26" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref26" name="_edn26"&gt;[xxvi]&lt;/a&gt; Here the Neoclassicals may argue, as Sweezy argued with the kinked demand-curve of the individual oligopolist, that the demand curve of the individual perfect competitor is an expositional/pedagogical/heuristic model of likely behavioral reactions, imperatives, interests and constraints, not a model of market or individual price determination, under given market structures.&lt;br /&gt;&lt;a style="mso-endnote-id: edn27" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref27" name="_edn27"&gt;[xxvii]&lt;/a&gt; Here there is a proverbial “chicken-and-egg” (cause and effect) problem. Which comes first: the intersection of market supply and demand setting price for the individual pure competitor, or, the individual competitors equating marginal costs to price? Why should a level of output which partly involves a loss according to Keen (the part where MC &gt; MR) determine where the individual sees price as being set? In the case of monopoly, MC = MR determines output level and demand determines the maximum allowable price at that quantity (price and quantity are not determined by the intersection of market supply and demand curves as in the case of pure competition). Here it must be noted that the Neoclassicals do not assume the flat or horizontal demand curve of the individual pure competitor solely on the basis of the assumption of no individual firm large enough to affect market supply, they also assume homogenous products and freedom of entry and exit as responsible also.  Keen goes on his website to show: in perfect competition: a) where MC = P = MR profits are not maximized; b) MC curves must be horizontal or constant for a definitive comparison of perfect competition and monopoly.&lt;br /&gt;&lt;a style="mso-endnote-id: edn28" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref28" name="_edn28"&gt;[xxviii]&lt;/a&gt; In characterizing neoclassical theory, perhaps because of using shorthand notations Keen makes some mischaracterizations of the theory. For example he notes that as price rises demand falls when he means that quantity demanded falls not the whole demand function (at least not according to neoclassical theory) and he notes: “Here we will consider the argument that wages equal the marginal product of labor.”(Keen, Steve, op. cit. p. 110) Actually, the theory says that to maximize total profits in production, the firm should hire up to but not beyond where wage for labor-power equals the marginal revenue product of labor. The marginal revenue product is a result of both the marginal physical product of labor (amount of output or change in total output due to a marginal addition of one particular worker) times the marginal revenue (or price in the case of pure competition) that the output sells for. No one gets paid a wage greater than the market “value” of the output they produce. This was the central point made by Marx in explaining the origin and nature of surplus value except that Marx did not seen land or capital as “productive” but only as factors that may enhance or inhibit the productivity of labor.   &lt;br /&gt;&lt;a style="mso-endnote-id: edn29" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref29" name="_edn29"&gt;[xxix]&lt;/a&gt; Given that an attack on diminishing returns, diminishing marginal productivity, and fixed factors of production in the short-run are repeated over and over and central to Keen’s overall critique, I am surprised he missed one argument he could advance against the notion of fixed factors in the short run. Land and “capital”, like labor, have both quantitative and qualitative dimensions that are interdependent. The quantity and quality of some machine (noting that capital is a social relation not a stock of things) or of an acre of land is, in market terms, meaningless, if not turned on, used and maintained, by labor skilled in its use and maintenance, while the quantities and qualities of land and “capital”, (noting capital is a social relation and not a ‘stock’ of things) if activated, can augment the productivity of the quality and quantity of labor employed. Thus, application of the quantity and quality of labor, activates the qualities and quantities of land and capital (not productive in and of themselves as they are idle and commercially useless without labor) that may or may not (land and capital of certain quantities and qualities may actually sabotage rather than enhance productivity of labor) augment the productivity of labor. Thus the notion of “fixed” land and capital mixed with variable labor is highly problematic if not total nonsense.&lt;br /&gt;&lt;a style="mso-endnote-id: edn30" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref30" name="_edn30"&gt;[xxx]&lt;/a&gt; Remember this notion was previously debunked: that a perfectly competitive supplier can sell more units without having to reduce price.&lt;br /&gt;&lt;a style="mso-endnote-id: edn31" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref31" name="_edn31"&gt;[xxxi]&lt;/a&gt;  This is a debate (“re-switching”) that has been raging between MIT economists at Cambridge, Massachusetts and economists at Cambridge University in England over some twenty years.&lt;br /&gt;&lt;a style="mso-endnote-id: edn32" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref32" name="_edn32"&gt;[xxxii]&lt;/a&gt; The discussion of “capital” as an embodiment of social-power relations is not mentioned or discussed here. Keen brings in Sraffa’s vs. neoclassical theory’s treatment of aggregated capital. Socially necessary hours of labor can be aggregated after correcting for skilled labor as multiple of relatively ‘unskilled’ labor to reflect higher productivity; and acres of land can be aggregated after adjusting for acres of varying levels of fertility; but highly diverse, in many ways, machines, buildings, etc, have no common property except price, the yardstick used by mainstream theory to aggregate capital. But this involves meaningless circularity in aggregation, as the price of the machine is a function of the profit expected from it, yet the rate of profit, the ratio of profit to price, varies as prices change.  Sraffa reduces value of “capital” to “building blocks” of dated (embodied direct and indirect) inputs of labor hours with/times wages rate (fraction of surplus) as an inverse linear function of rate of profit. The “Value” of a machine assumed to be value of inputs (machines and labor) times a rate of profit to reflect passage of time; this is applied repeatedly to all machines and labor inputs to produce their inputs, yielding a set of labor hour terms and declining but never zero residual of machinery inputs. Thus, Sraffa treats the “value of a machine” as the product of the sum of the labor inputs (direct and indirect, living and dead) to produce it with each sum representing the physical quantity of labor employed times terms for the wage (an inverse function of the rate of profit) and the accumulated impact of profits over time (a direct function of the rate of profit and raised to a power to reflect passage of time in years) yielding opposing effects as the value of an item of capital may rise as the rate of profit rises only to fall as the rate of profit rises further.  &lt;br /&gt;&lt;a style="mso-endnote-id: edn33" title="" href="http://www.blogger.com/post-create.g?blogID=3449323876485291163#_ednref33" name="_edn33"&gt;[xxxiii]&lt;/a&gt;  The assumption that changes in the output of industry A do not affect the costs of many other industries which in turn affected the costs of industry A
