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Toshio Masuda


Toshio Matsuda, Commentator & Intl Economist

Straight from the Shoulder

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(This issue is submitted to a Washington D.C., Seattle, and Zurich think-tank as the English edition of “Straight from Shoulder”.)

"Straight from the shoulder " by Toshio Masuda June 20, 2016
( Free of charge to the people I met)
Reverse Psychology ? “The Beginning of History”

Wars prior to the Industrial Revolution (17th-18th centuries) that occurred in England were basically seen as zero-sum engagements with the idea that everyone was fighting for the same size pie, so as the wealth of one country increased, the wealth of others necessarily decreased by the same amount.
It was natural for absolute monarchies to become entrenched on the basis of the growth of domestic economies and rigid class systems in an age with no expansion, and for conservatism (seeking to maintain the state as it existed at that time) to become entrenched as mainstream governance.

Beginning with the invention of Watt’s steam engine (1769), Fulton’s (US) steamboat (1807) and Stephenson’s steam locomotive (1814), as well as the mechanization of the means of production through their applications,
transformed human societies of the time.
This was a transition from an age of competing for the same pie to an age of vying to increase the production of the pie.
From an age of unchanging balance in supply and demand that had lasted more than 1000 years, the era of a seller’s market to “produce and sell” began, and so began an age in which factory managers held the power and the banks bowed down to them.
The subsequent Industrial Revolution spread immediately from England to all of Europe, and the great powers of Europe successively colonized large swaths of Asia, South America, Central America, the Middle East and Africa in the quest for raw materials and new markets.
Both the wars of colonization following the Industrial Revolution and World War I were wars to increase production and wealth.
The demand for industrial capital in response to the demand for growth internationally continued to increase, and an age where factory owners bowed down to the banks (monopolistic capital) began.
Meanwhile, nations also began to bow down to the banks as the balance sheet worsened with frequent wars.
Monopolistic capital then began to supply funding to the governments in England, Germany, France, and Italy, as well as the US, so central banks in a form independent of the government were established and naturally became the big shareholders.
The transition from an age of industrial capital to an age of financial capital occurred on December 23, 1913 when the Federal Reserve Bank (FRB) was established in the US.
The age where finance (central banks, creditors) dominated the economy (governments, debtors) had arrived.
This was truly “an age where gold talks” and the beginning of “the age where monopolistic capital talks.”
I call the period from when the FRB was created and monopolistic capital became rooted in the US (December 23, 1913) until US President Nixon abandoned the system for conversion of dollars to gold (gold standard) on August 15, 1971 (the Nixon shock) “the age where gold talked,” and the period from the Nixon shock to the Lehman shock (October 2008) “the age where notes = paper money talked.”
It was not possible to print additional money without actually possessing gold in the gold standard age, so actual demand = the real thing is what talked, and an age when paper money talks is an age where imaginary demand (fakery) talks.
If the US economy has overcome the Lehman shock and made a self-sustaining recovery so that the age of fakery has ended, we may now face “an age where who knows what will talk.”
Will we return to the age of the real thing, or will the age of fakery continue? Discussion of an international standardized system to replace dollars and based on the pegging of SDR (special drawing rights) to gold has been set by the IMF beginning in 2020.
The age of the real thing may return with the revival of the gold standard.
There is activity by monopolistic capital that supports this.
Monopolistic capital, which controls the issuers (central banks) of fake notes and other paper money, is unjustly lowering the value of gold using price fixing and buying up fake notes (paper money).
The strategy of monopolistic capital is to swap (switch) fake notes (paper money) into the real thing (gold), understanding that neither the world economy nor human nature will be moved by imaginary demand (booster shots, fakery) in the future.
This is because the master of fakery will become the master of the real thing. If it’s no problem for you to eat for the next year, wouldn’t you be inclined to provide enough money for a person who only has enough to eat 1 day, so that he or she can survive for 10 days?
What would you think if you saw someone with less income than you had given them enough for 20 days?
We may from here on see the start of competition where things that are not smart take place between smart people.
Mass communication, which manipulates public opinion, is all about scandal and profit, so what would you do if the good things that someone does for someone else were reported?
If monopolistic capital dominates the real thing, mass communication that manipulates human nature under monopolistic capitalism will also be oriented toward the real thing.
Humans have fought to climb the hill, continually scrambling, and have finally reached the summit.
We are now competing to descend unburdened while discarding what we’ve obtained.
Contraction will naturally occur while both nations and citizens reduce paper money assets and the value of real assets is raised, and monopolistic capital will expand along with the real thing that is increasing in value.
I am currently preparing an epic -- “The Beginning of History” -- to succeed “The End of History” by Francis Fukuyama, and I’d like it to be a worldwide blockbuster.
I’d like to publish it in the US, so I’m looking for worthy collaborators.

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Written by Toshio Masuda