Note 46

Development is driven by the needs, aspirations and abilities of human capital; the producer is the vanguard of development.

We embody a society where the producer consumes as a function of the developments required to unleash the productive capacity, the development of a community of producers as consumers.

In a static society, that is, a society which consists of non producers, where the fundamental driving force is not the will to produce as a living creator, yield and interest rates would tend toward zero, as capital is accumulated and demographic and productivity growth stagnates.

The high savings rate, the manifestation of an actual example of social organisation, results in a high capital asset, low yield economy.

Macroeconomic imbalances are society's way of adjusting the conditions of supply and demand to each other, and therein a given form of social organization. The adjustment process is the macroeconomic system.

Global imbalances renders the domestic mechanism - the macroeconomy as a tool of social adjustment - impotent. It exacerbates domestic systems of social organization that creates global imbalances. These are not inherently unhealthy, but a fundamental tension is created, which is resolved one way or the other.

What is required are more opportunities for social and political change and arbitrage, a more diverse and flexible kind of domestic society and its institutions, in order to preserve the society as a unit.