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ESSENTIALS OF PHYSICAL ECONOMICS AN OUTLINE ON PHYSICAL ECONOMICS

2010

Albert Jansen Yang En University

2010-08-12

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Albert Bernard Jansen, eMBA

ESSENTIALS OF PHYSICAL

ECONOMICS

YANG EN UNIVERSITY 2010

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ESSENTIALS OF PHYSICAL ECONOMICS

© 2010 Albert Bernard Jansen & (not yet published)

ISBN…………………………………………………….

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ESSENTIALS OF PHYSICAL ECONOMICS

CONTENTS

I. Preface………………………………………….………………………………………………5

II. Physical economics definition………………………………………………………..9

III. Physical economics need & conditions………………………………………..10

IV. The fusion process and its advantages………………………….……………..19

V. Mathematical approaches to apply physical economics………………22

VI. The development model……………………………………………………………..29

VII. Developments start and end and some striking consequences…...35

VIII. The Harmonic Division Bridging Development’s Opposites………….40

IX. Health……………………………………………………….…………………………………42

X. Practical applications………………………………………………………….…....…43

XI. China’s progress in the sense of physical economics……………………46

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I. PREFACE

Today’s world needs to reassess the scientific approach and methodology of economics in order

to enable itself from the established conception based on monetary policy theory using

mathematical approaches and linear data analysis that – along with the financial market’s

misuse of principal monetary resources - led to the collapse of firms and nations around the

globe.

Huge assets in financial market investments were controlled by a software system called

"PTOLEMY" — the most sophisticated computerized market analysis and projection system ever

devised. "PTOLEMY" combines multivariate analysis, higher-order correlation functions,

stochastic integrals, the Merton-Scholes partial differential equations and advanced neural

network pattern-recognition techniques, to a data base incorporating the last 3000 years of

market developments, and updated on a nanosecond basis. And despite the use of these

advanced technologies, the collapse of many financial institutions became sad reality.

Obviously the mechanisms and systems of the financial and economic world got out of control.

This raises the question for a fundamental review of our perception i.e. understanding of

economy as a scientific issue in its core. An application of such a review indeed would as well

imply the rewriting of our economy books as a valid reference of study for tertiary education.

In order to restrict this study about physical economics as a fundamental new approach it is not

intended to shed light on those fields in society that marked the practical introduction of

physical economics. These issues are mainly political and would inevitably derail from the topic

as a scientific approach. We however will highlight the fundamental principles of physical

economy as a scientific hypothesis and compare them with the logic of the mathematically

underpinned monetary principles in situ.

Physical economics in its fundaments is based on the notion of a curvature of the sort studied

by Riemann, and which corresponds for instance to Johann Kepler's understanding of the way

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A

B

an orbit determines the motion of a planet. This notion is based on observations of many

scientists like Riemann, Bernoulli and Kepler. It countervails the concept of linear approaches

and measures as a linear and formal basis on economics as a process.

What is a curvature and in what way can it be applied as a measure for leveraged perception of

economic activities, processes and trends? The best way to describe such a curvature and to

compare it to linear – cost benefit - approaches is the brachistochrone curve. The

brachistochrone curve (Gr. βραχίστος, brachistos - the shortest, χρόνος, chronos - time), or

curve of fastest descent, is the curve between two points that is covered in the least time by a

body that starts at the first point with zero speed and is constrained to move along the curve to

the second point, under the action of constant gravity and assuming no friction.1 (See Fig. 1, 2a,

Fig 2b)

Fig. 1

These curves describe the least time an object would reach the lowest point compared to the

time an object would reach that lowest point by the use of a straight line or an inverse curve.

Fig 2a 2b

The scientific proof of this experiment states this as congruent to the first thermodynamic law

of mass energy conservation which includes the living principle or Vis Viva according to

1 http://en.wikipedia.org/wiki/Brachistochrone

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Gottfried Wilhelm von Leibniz2. We can derive from this curvature the following assumptions: A

ball – unleashed from point A and moving to point B on a linear path – is not the most effective

one. The ball that first reaches point B is the ball using the curvature of the brachistochrone

through the law of the least time for such a motion. Applied to economics this would mean that

the straight line approach is not a valid presumption used as a main principle for economic

science which assumes the distribution of scarce resources from point A to point B in the most

effective and efficient way by the use of a linear construct. A most efficient and effective

distribution will use the curvature as motion as exemplified by the brachistochrone and not the

motion along a straight line. This was also the result of Johannes Kepler’s study as laid down in

the second of his three laws. What were the three laws of Kepler?

In astronomy, Kepler's laws give an approximate description of the motion of planets around the Sun.

Kepler's three laws are:3

1. The orbit of every planet is an ellipse with the Sun at one of the two foci.

2. A line joining a planet and the Sun sweeps out equal areas during equal intervals of

time.

3. The square of the orbital period of a planet is directly proportional to the cube of the

semi-major axis of its orbit.4

2 http://www.eoht.info/page/Vis+viva

3 Kepler's life is summarized on pages 523–627 and Book Five of his magnum opus, Harmonice Mundi (harmonies of

the world), is reprinted on pages 635–732 of On the Shoulders of Giants: The Great Works of Physics and Astronomy (works by Copernicus, Kepler, Galileo, Newton, and Einstein). Stephen Hawking, ed. 2002 ISBN 0-7624-1348-4.

4 The figure is a highly exaggerated illustration of Kepler's three laws with two planetary orbits. In reality the planets

show only tiny eccentricities. (1) The orbits show ellipses as a standard of measure, with focal points ƒ1 and ƒ2 for the first planet and ƒ1 and ƒ3 for the second planet. The Sun is placed in focal point ƒ1. (2) The two shaded sectors A1 and A2 have the same surface area and the time in unit of numbers for planet 1 to cover segment A1 is equal to the time in unit of numbers to cover segment A2. (3) The total orbit times for planet 1 and planet 2 have a ratio of potencies: a1

3/2 : a2

3/2.

Derived from: http://en.wikipedia.org/wiki/Kepler%27s_laws_of_planetary_motion.

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Fig 3. Illustration of Kepler’s three laws

What kind of force comparable to the curvature can mankind use to apply this law of

conservation of energy as demonstrated by brachistochrone in economics?

In other words: Since the vast amount of mass in universe does not change other than being

transformed into energy in organized solar systems and vice versa, we can ask ourselves the

following question: Is there any “mass” available on Earth that can in the most effectively way

be transformed into “energy” –congruent to the first law of thermodynamics – applicable and

disposable as a vital resource in the field of economics?

A second question: If so, to what extend can this vital resource contribute to our apprehension

as a fundamental solution to the current problems in economic and financial fields and what are

the core hindrances to fully adapt such a solution for economy – if practicable?

A third question: How can such an economic theory be outlined and be communicated that

fully accommodates to such a hypothesis on economics as an alternative draft compared to

the existing apprehension of economics as demonstrated in the established literature on

economics?

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II. PHYSICAL ECONOMICS DEFINITION

Physical economics is an approach to improve the living standards of nations on a global

scale by economic development of under- or undeveloped regions of the Earth as well as

connecting these regions as well to high developed countries for reasons of commercial trade.

To achieve this objective, it aims to:

1. Upscale nuclear research for enrichment of physical resources through fission and

fusion technology and its application by way of building nuclear reactors necessary

for substantial provision of energy.

2. Spread out a network of transportation and industrial infrastructure, and to

affiliate high technology firms in primary, secondary and tertiary industry by

creation of economic development zones in under- or undeveloped rural areas

containing high mineral or other resources and a low population density.

3. And the redistribution of existing clusters of urban high density population to

these new build economic development zones.

EMPHASIS:

Ad 1. Emphasis is the research on hybrid reactor technology containing the advantage

of fission as well as fusion possibilities for water and other industrial projects.

Ad 2. Emphasis on the development of a continental network of maglev high-speed

trains.

Ad 3. Such emphasis on maglev high-speed train networks and nuclear energy

distribution would enable the shift of the dense population areas towards new

economic development zones.

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III. PHYSICAL ECONOMIC NEED & CONDITIONS

It is a fact that – in net physical terms – the USA economy has had no significant growth since

the middle of the 1960s. This real-world fact is at odds with conventional economic analysis

stating that GDP grew three times beyond this economic number and that average earnings and

income skyrocketed to a substantial degree since that same period.

However, using GDP as an indicator for economic growth is a rough indicator – to say the least –

since all economic activities are included. Yet it is fairly known that not all economic activities of

a nation contribute to an increase of a citizen’s wealth, a raise of his living standard or even an

increase in overall productivity, for which GDP assumes to stand for as key indicator. Activities

for maintenance of hospitals, jails, defense, security, recovery measures in case of natural

disasters and so on are all included in the GDP key indicator. Also, increase of average earnings

and income are mainly due to speculative trade with financial products in all existing varieties

on the world’s financial market.

But an example in US’ industry will clear up to what extend GDP is not only a rough indicator but

with respect to the citizens’ welfare no indicator at all.

If we look at a statistical table for instance of the productivity of the US coal mine industry from

1923 to 2008 we see an 18-fold increase in total productivity but a significant decrease of the

amount of coalminers.5 In 1923 total number of miners in the US was 704,973 and productivity

564.6 in millions of tons. However 85 years later in 2008 the number of miners decreased to:

86,859 and productivity rose to 1171.8, a decrease of miners from 100% to 12.5% while we see

a doubling of total US production. But a per capita miner increase of productivity of 18 times the

amount of the year 1923. Now the following question can be put up:

If this statistic analysis is an indication of increased productivity then what happened to the

huge number of miners that became obsolete and either were simply laid off or not contracted

5 http://www.nma.org/statistics/coal.asp - see map of trends in “US coal-mining 1923-2008” downloadable as pdf.

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anymore? Clearly, new, and more advanced, mining machines took over the main part of

production output. But increase of machine productivity is by no means a measure for increase

in wealth and optimization of living standards, at least for all those that became unemployed

and – together with their families – were deprived from their source of income. Income from

18-fold increased productivity however went to the few that remained–a great percentage to

management officers. Most of this income is transferred to provide basis for–leveraged–

financial transactions for further increase of individual income. Clearly, income from those

financial actions is no basis anymore for physical productivity. We quote Lyndon Larouche6:

“Speculative gains in financial markets are sustained by diverting monetary flows out of the real

economy, into financial markets. This is sustained, increasingly, by looting the economic basis

through large-scale attrition in basic economic infrastructure, and by driving down the net after-

inflation prices paid for wages and production of operatives. Thus, we have a "hyperbolic"

curve, upward, of financial aggregates; a slower, but also hyperbolic curve, upward, of monetary

aggregate needed to sustain the financial bubble; and, an accelerating, downward, curve in net

per-capita real output.”

Economy obviously does not have the purpose to indicate the increase of growth in overall

productivity but to indicate the increase of the well-being of all nations’ citizens – be this in

justified proportions. And seen from this point we can conclude that with respect to the mining

industry, physical economy has declined to a substantial amount. Now, this is an already known

fact among economists. With lean management approaches and costs-benefits tools many

people were deprived from their source of income. There must be something wrong with our

indicators and that’s why other measurements indicating citizens’ well-being came into use. This

all however is not the main point of physical economics as will be introduced in this study.

To introduce physical economics we will not only have to look at the decreased input of the

labor market and the consequent loss of skills and concentration of monetary values in a few

6 Lyndon LaRouche|Economics: At the End of a Delusion, EIR Feb. 8 2002

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hands, but also at the input of raw materials. That is to say, at the level of technology with

which raw materials are mined, preprocessed into finished or half-finished products as an added

value.

Our model obviously is incomplete. What has to be completed in this model is what can be

called here the fission-fusion model for basic research.

In order to achieve this, we will have to start from scratch and go back to some very basic

principles to understand. Arithmetic data can be graphed by a line as the simplest illustration.

We can increase an amount of numbers for example by illustrating this with two straight lines

differing in length.

However, input of more variables like volatility or speed (time) or in more complex systems

indicating creative action indeed requires the introduction of the curve or the curvature. This

extends our possibilities substantially for illustration of growth or development processes by

way of graphing.

An example: If a baby becomes its deciduous dention (baby teeth) then this will take about one year for its

development as measured in time. However for a child in order to build up its permanent

teeth it needs approximately seven times the time it needed to build up the deciduous

dention. Howe can we illustrate this relation in an integrated graph? By using two curves:

Fig. 5

1

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4

5

67

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Here a creativity process is illustrated, since the deciduous dents are build up by intake of milk

from the mother in the first year apparently this serves as a “template” for the development of

the permanent teeth by intake of firm nourishment, that thus need a period seven times longer

than the growth of the first set of teeth. Thus with a curve we can adequate illustrate processes

in time – in this case two processes over two periods of time.

Now we wish to invert the length of the greater curve so that it may fit into the smaller curve.

The total length of the surrounding curve line is placed inside the small curve. The tiny blue

curve of Fig. 5 is extended in Fig. 6. This time we need insert more circles linked to each other in

form of a double lemniscates which length is seven times the ambit of the small curve and thus

equals in length the greater curve. This is not done exact - so it only serves as an illustration.

Fig. 6

We see a system that can be an abstract illustration of the blood circulation and respiratory

system of a human being. From this lemniscates we can assume that, over a period of 24 to 72

hours and by way of metabolism, “mass” (nutrition) is digested two times: by a process of

fission and fusion.

1. The process of fission is breaking down molecules into smaller units and minerals

coming from the food by metabolism into monomers that serve all the organs and

tissue nutrition - physical vis viva in the sense of Leibniz (catabolism).

2. The process of fusion by converting the fine units into new molecules (anabolism)

transported by the blood into the lungs (aerobiosis) and further towards the brain

mainly to create two energies for refined vis viva, and chemical processing the synapses

of neurons of the brain for mental energy.

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And the center of all these activities is the heart. Yet the heart is the opposite of the general

view of a “pumping machine” – it is the organ that coordinates mass to energy processing

driven by emotions. Equally the brain, which is a highly complex system where chemical

elements are converted into energy and electro-magnetic activity. Thus elements coming into

the systems are primary “matter” and – over time – the system converts this matter into energy

of all kinds. This is congruent to the relation of mass in the sense of matter to energy over time

according to Albert Einstein: E=Δmc2. Energy is a relation of the change of matter and speed 2.

Equally the solar system. Mass influx into the system comes from the galaxy and is converted

within the solar system for stepwise creation of live and energy through the atmospheres of the

seven planets. Within this system the Sun serves as the hollow space for first conversion of mass

by fusion into energy and light. The Sun therefore shows the opposite characteristics of gravity

as was presumed by Isaac Newton. It does not show 99.85% of all matter in the solar system but

the opposite. The Sun sucks matter for further forwarding towards constructional energy.

An interesting comparison: The nuclear fusion process makes use of the same ratios as can be

derived from the rhythmic system of a human being. In the lungs (2-, 3-fold lung lobes) oxygen

is converted into carbon (by reducing iron FE3 into FE2) whereas the blood takes over a “logistic”

function. Our respiratory system is in average four times delayed with respect to the speed of

blood pulsation speed. So the ratio is 1: 4. Similar the fusion process in nuclear reactors:

Deuterium (1 proton and 1 neutron) and Tritium (1 proton and 2 neutrons) is by way of fusion

converted into Helium (2 protons and 2 neutrons) and 1 neutron. Ratio of the conversion of the

atoms thus is 2 : 3 →1 : 4 + 17.59 MeV energy and radiation (light). The issue to remember is

the fact that “matter” is not created in the center but in the periphery of an organized system.

Within the system however “matter” is gradually converted into energy and radiation of light by

way of a shift from potential to kinetic energy by fission and fusion processes. Fission is splitting

of former boundaries of mass out of their original and primary context. Fusion creates

constructive energy through conversion of basic chemical elements into “vis viva” in the sense

of Leibniz or centers of energy and radiation.

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Fig. 7

Fig. 7 shows that Jupiter is big, it has the highest level in mass, Mercury the

lowest level. Note the level of mass for Mars. Density is at the highest level

for the Earth while Saturn shows the lowest level. Note the density of

Mercury.

As a basic rule for the solar system we can state that: The mass of planets at the periphery of

the system proportionally decreases, whereas their innate energy proportionally increases. It

holds for all planets of our solar system that mass and consequently gravitation (weight) is

higher at the periphery of a system, be it that the gas-planets follow another order with respect

to the Sun than the terrestrial planets: - Mass will be converted into its opposite in the center of

that system. This however, is not a smooth conversion. It occurs in separate stages according to

DENSITY of the planets

Earth: 5.52 g/cm^3

Mercury: 5.43 g/cm^3

Venus: 5.20 g/cm^3

Mars: 3.91 g/cm^3

Moon: 3.34 g/cm^3

Neptune: 1.64 g/cm^3

Jupiter: 1.33 g/cm^3

Uranus: 1.32 g/cm^3

Pluto: 0.70 g/cm^3

Saturn: 0.69 g/cm^3

MASS (circumference) of the planets

Jupiter: 1900,00 x 10^24 kg

Saturn: 570,00 x 10^24 kg

Neptune: 100,00 x 10^24 kg

Uranus: 87,00 x 10^24 kg

Earth: 5,98 x 10^24 kg

Venus: 4,87 x 10^24 kg

Pluto: 0,7 x 10^24 kg

Mars: 0,65 x 10^24 kg

Mercury: 0,33 x 10^24 kg

Total: 2700 x 10^24 kg

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harmonic principles and laws. All this becomes more clear with the help of quantum physics.

Quantum physics states that an atom is not some dull matter but an organized (harmonic)

space-time fixed energy system. An atom is actually a frozen concentration of interrelated

energetic forces (nucleus or nuclei, neutrons, protons) in a kind of “resting-potential”.

A quantum leap (Planck constant) will occur when frictions through incoming photons cause a

tension that – if high enough – will lead to an “action potential”. If this tension exceeds the

highest possible quantum leap of the system of the atom, ionization will occur. Electricity is also

the result of chemical processing. Likewise, the thinking-process. It creates electrochemical

pulses called action potentials caused by an electric membrane potential creating a tiny jump,

radiating a small amount of mV. Our thinking process is an activity of mental concentration in

order to bring to the point of what is spread out in all energetic parts of the periphery. It is the

focal law of relation between point and circumference. This also occurs according to the law of

quantum leaps.

We then need to concentrate on the following:

1. The law of the curve through: point – circumference (mirroring).

2. The threefold connection: mind – electricity – atoms (mass).

3. The crucial difference of: fission - fusion (plus its application).

We may expect that the Sun will eventually transform its inner planets by fusion-like processes.

This also explains the differences of the twofold creation process of inner and outer planets: Gas

planets went through an early stage development in which the Sun as a fixed center was not yet

developed. The outer atmosphere of Saturn f.e. consists of two gases: 96% Hydrogen and ±4%

Helium. Helium (4He) is the result of fusion merging two chemical elements of Hydrogen:

Deuterium (2H) and Tritium (3H). In the outer atmosphere of Saturn as well as Jupiter we already

have all what is necessary for fission and fusion processes.

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We can’t exclude mankind and its research from the innate creative laws of the universe

through sole application of linear mathematics to explain economic trends like productivity,

growth, and development. And as stunning the examples and comparisons given above are, we

can’t get physical productivity and creative ideas by neglecting fundamental laws of the

universe as mirrored in the human system, because the universe is the only mirror for scientific

research for all projects converting static energy (mass) into dynamic energy. The laws of

Einstein and Planck remain core principles of creative development. If we only perceive these

two quintessential laws;

1. Energy equals a change in mass times speed squared (E=Δmc2)

2. A change of that kind occurs in quantum leaps following harmonic principles,

ascertained that they play a pivotal role in creation and development, then it is justified to make

attempts to apply them in other fields like in the progress of economic development.

Economic activities of individuals are all man-made and consequently don’t seem to listen to

universal laws, but mankind’s profile and cachet can’t be excluded from universal intrinsic laws

and their overall application. We can by times presume that development means steady growth

in the sense of a growing index key figure of say GDP, but in reality this is beside all truth and

observations. Economic development is a stepwise progress in quality of physical productivity,

of technology and education, consequently of technological advanced input- output-products,

leading to increased living standards. The main economic problem with respect to development

comes in, when money is assumed to have a distinct intrinsic value and can be separated from

the value of physical production. Any increase in value of money should reflect the same

increase in physical production, if not, we are dealing with perceived or unperceived gambling

practices that are destined to create money “bubbles”. Money as a unit may be of potential

value for accumulating financial growth, but money separated from physical production doesn’t

increase quality in any field – unless brought back in to the system of physical production.

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FROM THE WEB

Nuclear Fusion-Fission Hybrid Could

Destroy Nuclear Waste And Contribute to

Carbon-Free Energy Future

January 27, 2009

AUSTIN, Texas — Physicists at The University of Texas at Austin have designed a new system that, when fully developed, would use fusion to eliminate most of the transuranic waste produced by nuclear power plants.

The invention could help combat global warming by making nuclear power cleaner and thus a more viable replacement of carbon-heavy energy sources, such as coal.

"We have created a way to use fusion to relatively inexpensively destroy the waste from nuclear fission," says Mike Kotschenreuther, senior research scientist with the Institute for Fusion Studies (IFS) and Department of Physics.

"Our waste destruction system, we believe, will allow nuclear power—a low carbon source of energy—to take its place in helping us combat global warming."

The process would ultimately reduce the transuranic waste from the original fission reactors by up to 99 percent. Burning that waste also produces energy.

Read the whole article:

http://www.utexas.edu/news/2009/01/27/nuclear_hybrid/

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IV. THE FUSION PROCESS AND ITS ADVANTAGES

By enrichment of plasma (isotopes of Hydrogen) by heating gas up to 100 mil C°, we merge both

the isotopes together into one atom. This atom becomes heavier. It’s a conversion process that

radiates energy together and creates Helium (4He) and one extra neutron. This is the process

that provides energy powering the Sun and other stars, where Hydrogen nuclei are combined to

form Helium.

To keep the hot plasma away from being contaminated and cooled by contact with material

surfaces it is contained in a magnetic confinement system, which controls the hot gas with

strong magnets. The most promising device currently is the tokamak a Russian word for a

ring-shaped magnetic chamber (the small yellow band-shaped space in the reactor – see

image on page 17 and fig 8). Such a fusion releases 17.6 MeV (Mega-electron-volt) of energy

per reaction. This is approximately 10,000,000 times more energy than is released in a typical

chemical reaction. A commercial power station will use the energy carried by the neutrons to

generate electricity. The neutrons will be slowed down by a blanket of denser material

surrounding the machine and the heat this provides will be converted into steam to drive

turbines and put power on the grid.

Fusion power would provide much more energy for a given weight of fuel than any

technology currently in use, and the fuel itself (primarily deuterium) exists abundantly in the

Earth's ocean: about 1 in 6500 hydrogen atoms in seawater is deuterium. Although this may

seem a low proportion (about 0.015%), because nuclear fusion reactions are so much more

energetic than chemical combustion and seawater is easier to access and more plentiful than

fossil fuels, some experts estimate that fusion could supply the world's energy needs for

millions of years. An important aspect of fusion energy in contrast to many other energy

sources is that the cost of production is inelastic. The cost of wind energy, for example, goes

up as the optimal locations are developed first, while further generators must be sited in less

ideal conditions.

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With fusion energy, the production cost will not increase much, even if large numbers of

plants are built. It has been suggested that even 100 times the current energy consumption

of the world is possible.

Some problems which are expected to be an issue in this century such as fresh water

shortages can actually be regarded merely as problems of energy supply. For example, in

desalination plants, seawater can be purified through distillation or reverse osmosis. However,

these processes are energy intensive. Even if the first fusion plants are not competitive with

alternative sources, fusion will become competitive if large scale desalination requires more

power than the alternatives are able to provide. Further as refining suggested, fusion fuels

(deuterium, and tritium) via distillation of hydrogen or electrolysis from seawater would

produce a waste product of pure hydrogen the fusion plants themselves could produce a

small amount of drinking water by reclaiming the lost energy. At perfect conditions this would

be to produce 1g deuterium per 30 kg of water worth of hydrogen. Fusion power has many of

the benefits of long-term renewable energy sources (such as being a sustainable energy

supply compared to presently utilized sources and emitting no greenhouse gases) as well as

some of the benefits of the much more limited energy sources as hydrocarbons and nuclear

fission (without reprocessing). Like these currently dominant energy sources, fusion could

provide very high power-generation density and uninterrupted power delivery (due to the

fact that it is not dependent on the weather, unlike wind and solar power).

Fig. 8

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Summarizing some advantages connected to this kind of technology:

No carbon emission

The only by-products of fusion reactions are small amounts of Helium, which

is an inert gas that will not add to atmospheric pollution.

Abundant fuels

Deuterium can be extracted from water and Tritium is produced from

Lithium, which is found in the Earth’s crust. Fuel supplies therefore will last

for millions of years.

Energy efficiency

One kilogram of fusion fuel can provide the same amount of energy 10

millions of fossil fuel.

No long-lived radioactive waste

Only plant components get radioactive and these will be safe to recycle or

dispose of conventionally within hundred years. Now already the ultimate

radioactive waste can be reduced to just 1 percentage.

Safety

The small amounts of fuel used in fusion devices means that a larger-scale

nuclear accident is not possible.

Uninterrupted power supply

It does not depend on weather conditions.

Hydrogen-2 or Deuterium = an isotope of hydrogen Hydrogen-3 or Tritium is also an isotope of hydrogen, but it occurs naturally in only negligible amounts due to its radioactive half-life of 12.32 years. Consequently, the deuterium-tritium fuel cycle requires the breeding of tritium from lithium. The supply of lithium is more limited than that of deuterium, but still large enough to supply the world's energy demand for thousands of years.

Fig 9.

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V. MATHEMATICAL APPROACHES TO APPLY PHYSICAL ECONOMICS

A mathematical approach to apply physical economics for exact short-term forecasting is

extremely difficult if not impossible, but long-term trends and cycles in the sense of Kondratieff

can and should be forecasted and observed. The difficulty of forecasting also arises for reasons

that historic economic trends available for research are highly orchestrated by external factors

like government interventions and stimulus, central bank policies’ induced economic recoveries

and depressions, and as well by smoothing out data for statistical analysis such a way that – to

date – natural physical economic trends are not really coming to the upside.7 What we see is the

more or less distorted result of human intervention on occurring trends. Moreover, the financial

market is a broad field reacting on psychological based stochastic analyzes that as a side-effect

have an enduring juggling influence on economic performance as stated above.

However, unrigged physical economic trends by and large do can be traced and it is worth an

attempt to analyze them in a way that can turn out to be useful as a mathematical sketch for

further research.

In order to enable such research we have to introduce the development model. And for better

comprehension of this development model, we will first have to introduce the law of quantum

mechanics both as related to the field of spectral analyses and the nuclear model discovered by

Niels Bohr. J.J. Balmer Rinck – a Swiss mathematician – discovered the spectral lines of

Hydrogen. Using Ångströms measurements of the hydrogen lines, he arrived at a formula for

computing the wavelength as follows (for reasons we don’t take the Rydberg formula):

λ = C ·

λ = wavelength, C = is a constant with the value of 3.6456×10

-7 m or 364.56 nm

m = an integer such that m > n, n = principal quantum number equal to 2.

7 http://www.marketoracle.co.uk/Article4871.html, http://www.marketoracle.co.uk/Article18343.html.

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Balmer-Rinck discovered the second of a total of six spectral series from n = 1 to n = 5. Balmer

series shows n = 2. We now decompose the algebraic quotient of this formula into the following

expressions:

Before continuing, the next step is an approach to put the primary harmonic division , which

can be derived from the Pythagorean triangle into an algebraic formula.

What is this harmonic division?

Here is how wiki.org explains harmonic division: “A harmonic division is about a specific dividing

of a given line segment. In geometry, harmonic division of a line segment AB means identifying

two points X and Y such that AB is divided internally and externally in the same ratio. In an

algebraic equation shown below, the ratio is two (2/1):

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YB

YA=

XB

XA

Harmonic division of a line segment is reciprocal as well; if points X and Y divide the line

segment AB harmonically, the points A and B also divide the line segment XY harmonically. In

that case, the ratio is one third given by:

AY

AX=

BY

BX

which equals 1/3 in the second example above? Ratios (2/1 and 1/3) are not equal!” So far

wiki.org. Here comes a third possibility to build a ratio (=2/3): YA

YX=

AB

AX

This third ratio makes perhaps more clear that there are two o p p o s e d points of view. The

left side term of the equation starts at point A (line segment AX), the right side term at point Y

(line segment YA). The ratio is the same (the right side terms doubled), but, we view the scene

from opposite sides. A few graphs illustrate the harmonic division:

The divided square with Pythagorean triangles drawn:

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The same triangle derived from the harmonic division:

As a next step we introduce to the reader the three means which can be derived from the triangle as well as the harmonic proportion 6 : 8 = 9 : 12:

26

2

AB (Cathetus 3),

2

XY (Adjacent 4),

22

XYABAY (Hypotenuse 5).

The principle of primary division (Pythagorean triangle) with variables m/n: 8

2222222 2 nmmnnm

(4 – 1)2 + (2 . 2 . 1)2 = (4 + 1)2

and we all compare this with the inherent opposition of forces:

We don’t need much calculus at first to perhaps get an idea in what compound “harmony” is

actually embedded shown in terms of basic algebra and geometry. Let’s just take cognizance of

this and proceed while decomposing the quotient in Ballmer’s formula:

We decomposed the formula into its basic quotients to enable bridging them with the harmonic

division. For the deduction we use m = 2, and n = 1 equalling the value of the first of seven of

spectral lines signatures discovered by Johannes Rydberg:

λ= C (

λ

Filled out with the Rydberg values:

8 Helmut Reis: „Harmonie und Komplementarität“ Verlag für systematische Musikwissenschaft GmbH, Bonn- Bad

Godesberg 1983. S. 135 ff.

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λ= C

λ

λ

Ballmer quotient with Lyman values

Thus the squared term in the equation indicates the result of the harmonic linking of that

inner and outer division as is shown by the harmonic division. From the quotient of Ballmer’s

formula and the harmonic division (again: m = 2 and n = 1), we can derive the Pythagorean

triple: 3 : 4 : 5.

To get this extension we simply draw two semicircles on line segment AY connecting all four

points AXBY. As can be seen there is a clear relationship: All development starts with a

potential controversial situation, shown as linked semicircles. It is this energetic, tenseness,

and intertwined situation, which the ancient Greek called ‘harmonic’. Of course from this

archaic point of view we nowadays differ in opinion about how to define harmony.

So, to summarize some conclusions: A geometric harmonic division divides a given line

segment like AB harmonically into two different line segments. If this is done in a manner to

really show the innate opposites we will get the same ratio. From segment AB segment AX =

2/3 and from YA segment YX = 2/3. From starting point A (AB) there is a ratio directing to AX

and from the ending point Y (YA) there is a same ratio directing to YX. In both cases the ratio

is the same (2/3), but each time we take the opposite point to start. It is important to realize

that:

The law of harmonic division is the result of an – ephemeral – linking of opposed forces at

starting point causing ‘harmony’.

It is now but a small step to the atomic model of Niels Bohr. Bohr used the theory of the six

spectral series to create his quantum atomic model, which was later revised and extended by

Maxwell (four Maxwell equations). In the Bohr model of the structure of an atom electrons

orbit a central nucleus. The model says that the electrons orbit only at certain distances from

the nucleus, depending on their energy. In the simplest atom, hydrogen, the distance

between an electron orbiting the nucleus and its smallest possible orbit, with lowest energy,

is called the Bohr radius. The Bohr model has become obsolete and a much better approach is

the valence shell atom, but the quantum idea is still untouched. A main extension was further

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research on ionization of the atom. Sequential ionization - for the moment we exclude

quantum tunnel ionization - is the physical process of converting an atom or molecule into an

ion by adding or removing charged particles such as electrons or other ions. The energy

required to release an electron is strictly greater than or equal to the potential difference

between the current bound atomic or molecular orbital and the highest possible orbital. If the

energy absorbed exceeds this potential, then the electron is emitted as a free electron.

Otherwise, the electron briefly enters an excited state until the energy absorbed is radiated

out and the electron re-enters the lowest available state.

We tried to find a bridge between the spectral series theory and the principle of harmonic

division relating this with the arithmetic, harmonic and geometric means as with the

Pythagorean triangle. A next step was bridging this knowledge with the quantum atomic

model of Bohr (extended by Maxwell and others), the occurrence of ionization as a leap of the

atom from its kinetic energy field into potential energy field while trespassing the potential

barrier into the continuum and the subsequent reoccurrence of this atom into a new and

richer chemical element with its new spectral series.

Question remains: Can we assume a certain development pattern that could illustrate this

enrichment process in a somewhat broader or more meaningful context or are these forces

acting for the mere joy of conversion by way of externalities from kinetic to potential energy

and vice versa?

To approach this “principle of sufficient reason”9, we will see that the occurrence of the three

means – especially the geometric mean – is pivotal. We will proceed with an introduction of

the development model.

9 http://en.wikipedia.org/wiki/Principle_of_sufficient_reason,

http://www.qsmithwmu.com/a_defense_of_a_principle_of_sufficient_reason.htm

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VI. The Development Model

In order to introduce the development model with the occurrence of its three mathematical

means: the harmonic, arithmetic, and geometric mean, we will go way back to the time of the

Greek mathematicians. We will use three acronyms: →AM for arithmetic mean, →HM for

harmonic mean, and →GM for geometric mean.

The Greek Archytas of Tarentum was a mathematician, statesman, and philosopher of Magna

Graecia (now Italy) and died about 530 B.E. He was one of the few ancient mathematicians

informing us about the three means.

The means are basic to the harmonic division as well as to the Pythagorean triple 3 : 4 : 5. We

know that Babylonians in the third millennium B.E. were known with these principles already.

Here is an Archytas quotation (fragment B2):

“…There are three means; the first is the AM, the second is the GM, the third is

the reciprocal, which is called HM. The AM exists, when the three terms are in

a relation of analogical excess, that is to say, when the difference between the

first and second is the same as between the second and third; in this

proportion, the relation of the greater terms is smaller [9 : 12 = 3 : 4] and the

relation of the smaller is greater [6 : 9 = 2: 3].

The GM exist when the first term is to the second, as the second is to the third;

here the relation of the greater is identical with the relation of the smaller.

[1 : 2 = 1 : 2], [2 : 4 = 1 : 2]

The reciprocal mean, which we call HM, exists when the first term exceeds the

second by a fraction of itself, identically with the fraction by which the second

exceeds the third; in this proportion, the relation of the greatest term is

greater and that of the smaller, smaller.” [8 :12 = 2 : 3], [6 : 8 = 3 : 4] (Brackets

added)

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These means are expressions of the three not yet denominated development forces. We will

have to uncover the existence of the three means at the start, during the nodes and at the

end of development. For the start this is already done by showing how the three means are

embedded by the mathematical principles of the Pythagorean triangle and the harmonic

division. The Ballmer formula —in its basic shown by the first spectral lines signature of

Rydberg—showed that the creation of all nature (i.e. all matter) is a result of the coming into

existence of opposed forces, linked by the harmonic division. Starting with Hydrogen the

periodic system of all elements can be derived or traced back as well as the emergence of

spectral light.

It is our task now to show how the harmonic division with its three means are as well part of

the other or opposed side of development—it’s end—as well, in the regular dodecahedron.

Though the following could become a bit complex. In the end we hope it will convince the

reader of the context in which development is embedded; how it looks like—at least in

theory, in what way it works encompassing main conditions as discussed before.

With respect to the three means entering the dodecahedron two additional mathematical

conditions are to be introduced in order to be compatible with the principles of the regular

dodecahedra. We give them here:

The greatest term of the triple is the sum of the two smaller terms.

This is not valid in the rational context at developments start.

The greatest term of the triple represents an entirety (= one)

on each of the three levels: number, measure, and potency.

Tracing the different entireties we can distinct between the means in

the regular pentagram.

In the rational realm the three means don’t show these conditions (f.e. 6 + 8 ≠ 12).

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This is rather abstract, therefore we look at what these alterations with respect to the regular

dodecahedron mean. As an example we take the discrete proportion 6 : 8 (= ) 9 : 12 depicting

the three means in the rational world presented by the solid of the cube.

The HM: 6 : 8 : 12

Where the difference between the first and the second term ( 6 : 8) and between the second

and the third term (8 : 12) is in both cases the quotient ⅓. (⅓ of 6 = 2, ⅓ of 12 = 4)

The AM: 6 : 9 : 12

Where the difference between all three terms is the integer 3 (or 3/1)

The GM: 6 : 12 : ? or ? : 6 : 12.

It is clear, that the GM lacks the third term. It needs to be completed to appear as a mean not

as a ratio. At first, to derive the three means from the proportion we split the quadruple up

into two parts:

6 : 8 : 9 : 12

6 : 8 : 12 6 : 9 : 12

(HM) (AM)

6 : 8 = 9 : 12

(GM)

As can be seen the second term of the GM is not an integer, but a ratio 8 : 9 with an inherent

difference of one integer (entirety). The GM can only complete itself temporarily during

activation: It adds the lacking third term only during the act of jumping into the realm of the

‘continuum’. After being excited, it falls back into the discrete equation as shown above.

However by this activation of its potential through jumping, the GM already anticipates the

end of all trajectories in the final stage of developments process. In this final stage it doesn’t

need to complete itself by a third term anymore—consequently further jumps become

obsolete. As we shall profess further on.

Characterizing the three means as expressions of number, measure, and weight we can say

that:

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Number as an entirety —being nominator of quotient (1/1)—is represented by the

AM.

Measure as an entirety—being denominator of quotient (1/1)—is represented by the

HM,

Potency as an entirety—being a root or log of quotient (12/1), (1/12)—is represented

by the GM.

At the start of development the first of its three forces is represented by the AM and the

entity is number starting all further progression with the smallest entity possible, the quotient

1/1 (going up to 2/1, 3/1 and so on) as its least common multiplier. The second of its three

forces is represented by the HM and the entity is measure starting all further progression with

the greatest entity possible, quotient 1/1 (going down to 1/2, 1/3 and so on) as its greatest

common divisor. The third of its three forces is represented by the GM and the entity is

potency starting all further progression with the smallest root or greatest log entity possible,

quotient 11/1 (going up to 12/1 13/1 etc.) or quotient 1/11 (going down to 1/12 1/13 etc.) given

by any exponent or any logarithmic.

It is obvious that any potency’s or logarithmic progressing can’t come into appearance since

they are bounded by a single arithmetic entirety, number one. To appear, the nominator or

denominator needs a change into number two or any other subsequent number like is the

case in the fission of a nucleus. We at first need splitting of the entirety of nominator or

denominator of the quotient to get the third or GM activated. So to enable development start

forces require exit out of the entirety one. In order to do so forces thus need division. As soon

as a nominators or denominators number is split up (multiplied) potency i.e. logarithmic

forces are empowered to appear in development. In order to induce this division, sufficient

excitement potentials of the forces is needed for the leap or the jump out of the entirety one.

In the course of developments process this ‘inflammation’ of energies and subsequent

diverging of forces is gradually—after each critical situation—made ineffective and a fusion

process takes place, forces converge again until all three reach the status depicted in the

regular dodecahedron or at its final stage in the pentagram. In this end stage, all three means

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are represented. Though they do not oppose each other anymore. All together they perform

an ongoing chain of accumulating series. If in the pentagram line segment M = number 1, than

line segment m = 0,618 being the golden ratio.

And thus we can derive from this the arithmetic mean;

(M-m) : m : M = 0,382 : 0,618 : 1.

(The greatest term is an entirety represented by number 1).

We can also derive from this the harmonic mean;

m : M : (M+m) = 0,618 : 1 : 1,618.

(The greatest term (M+m or 1,618…) is an entirety represented by measure 1).

We can derive from this the geometric mean:

(M-m) : m : M : (M+m) etc. = 0,382 : 0,618 : 1 : 1,618 etc.

(All terms are an entirety represented by either potency’s 1 or logarithmic 1)

1/√5 — 1/√4

— 1/√3 — 1/√2

— √ — √2/1 — √3/1 — √4/1 — √5/1

A close look at the last series will bring us to a stunning discovery: All division is transformed

back into one sole and single entirety in constant dynamic processing: Any nuclear research

that is successful in accomplishing this final stage within the pentagram will meet a chain

reaction of potentials. Since this is an abrupt and instant leap over all creative possibilities,

the result is lethal for all creature. The chain of gradually accumulating quotients of potencies

or the inverse logarithmic in itself like is the case in the final stage of the pentagram but also

in all former leaps is separated from three dimensional space and thus also from physical life.

In the pentagram or the dodecahedron, development has completed all possible levels of

potentials and at the end has reached its envisioned target—set out even before kicking off at

the start. Adding the winged “rod of mercury” with its two serpents – which is the crucial

intermediate for all sound development – between start and end of a developments process

however means creating possibilities for life and health. And it is this aspect which we would

like to emphasize with this paper.

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Therefore we presume that fission and fusion processes are directed by forces going along

with the three means. The GM is the dynamic variable inducing the action potential, the AM

and the HM are both static variables inducing the rest potential whereas during this static

moment the GM is present yet as a distinct proportion and in a passive state.

Activation of the potential in the GM would explain the quantum-leap effect of an electron

within the atomic system (falling back into the previous state while emitting obsolete energy

in the form of light emission) or at the moments of ionization by which nuclei change their

mass.

From this it should be obvious that:

The potential of vital creation is evident when conversion of initially opposed forces

takes place gradually proportioned in several quantum leaps.

The potential of lethal destruction is evident when such a conversion of initially

opposed forces takes place instantly in one all other potentials overleaping jump.

- Acknowledging these statements is the first step in mastering development conditions -

From this it should also be obvious that:

Any individual or institution aiming to entice an action-potential sufficiently in energy to

overleap any contiguous development situation is to be regarded as acting in terms of

destruction. And again: Any individual or institution that hinders the quantum leap into a next

contiguous development situation will create a status quo asphyxiating all vital forces for

progress. In consequence, any individual or institution driving development that allows for

universal laws of development as outlined above proceeds in stepwise quantum leaps.

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VII. Development’s Start and End and Some Striking Consequences

Seen from this extended point of view with respect to development conditions together with

its harmonic background, one realizes that this ‘principle of sufficient reason’ as an issue to be

briefed by way of education is still due and currently insufficiently identified – not only in

economics but in all fields of business.

Today, people are not really capable to master their ‘nodes” of development (crises) properly.

More or less stumbling through the critical stages of their development, men seem

inadaptable to assess the gradual changing environment of development. As a result they

often get distracted with respect to their expectations. Policymakers finally try to violate all

development conditions to push their individual aims forward—despite the damage and the

harm. A main reason is not to realize the conditions that gradually changing towards

developments end. One such condition is for instance is, that, once a developing entity like an

individual or a firm approaches the final stages of development, society seems to gain decisive

influence for these last stages of any development in order to let such development proceed

successfully.

However this increasing exogenous power is just half an illusion, not a full fact. Due to the law

of entropy it is not society’s energy that is increasing, but an individuals or a firms kinetic

energy is decreasing. This is called ‘system fatigue’. These circumstances imply that, if any

individual—say an entrepreneur—wishes to proceed with development, he is forced to take

into account society’s interest and influence for his individual development in order for him

and his firm to let development proceed. In terms of thermodynamics we use to speak of

entropy for final stages. On higher levels of development where mankind is the hub we can

not really speak in physical terms of entropy. It is better to use the expression: accumulated

increase of dependency with respect to society’s interests which in turn should get full

attention.

Development is an individual as well as a social phenomenon. As such it is highly connected

with the coming into prominence of economy in society. In the past three centuries it were

entrepreneurs that, in the field of business, gradually liberated the resources they needed to

develop their firm gradually changing the infrastructure of culture and nation.

36

By liberalization we mean that input of factors of production like land, labor, capital,

information, were subject to a process of freeing or of democratization on a local, national

and international scale.

Products (tangible and intangible) have an intrinsic and extrinsic value. Products can have a

very high intrinsic value (high cost); still for society the value can be very low. In such cases it

has a low extrinsic value and will not be purchased. This does not only hold true for the firm’s

products but for the firm itself as well. Input can only be transferred to output economically

by way of effectiveness. Yet if—due to entropy—throughput gets ‘fatigue’ and doesn’t run as

it should then ineffectiveness is an increasing part of the game, and a big problem for firms to

reach the finish and to survive at the same time. In the SME10 sector only a proper distinction

between young firms that still have a relative long way to run and developed firms that

experience innate fatigue of weakened throughput can give clearance. Grown up firms—

situated in the SME sector—of age say 10 to 20 years need not necessarily be large seized, but

in this sector there are many of them. They stay relative small, focussed on their own high

quality products. Especially governments should appreciate the value of these grown firms of

the small and middle class with respect to the extrinsic value of labor force employed.

Therefore—again within the SME sector—extrinsic value added policies are to be kept up at

the focus centre for grown firms to survive, continuing their production by keeping up their

quality of output. For grown firms business strategies towards extreme production

effectiveness with efforts to uphold ‘vital throughput’ should not be regarded as a merely

managerial luxury and actually society (i.e. government) should protect them for the stress as

long as extrinsic value is maintained. By their proven ability to provide jobs, to take care for

rents and to pay taxes developed firms have contributed to stability and therefore created an

extrinsic value to society. By not reducing their labor force to the most effective production

level any such grown firm can accumulate extrinsic value significantly if they get support by

government. On the other hand for start up firms following strategies for production

effectiveness mainly with a core strategy on quantity i.e. production effectiveness is the

10 SME= Small and medium-sized Enterprise.

37

wisest strategy to follow. So, we can argue that, spoken in terms of development: Upper-end

manufacturing, or producing products which require a highly complex production process is

not the best output portfolio of start-up firms for generating a satisfying ROI. And, by the

same rule of development: - High quality products, or products requiring a highly complex

production process are the ideal output portfolio of matured firms generating a satisfying

individual as well as a social or environmental ROI.

And the same is true for all services, be it that these intangible products are at any

development stage strongly linked to quality providing human resources. Regarded as a next

factor of production only human resources can generate quality (capacities, skills) and

consequently can bring firms to the end of their development. But this ‘factor of production’

may not be classified as a firms input. This would depreciate the value of human resources. In

fact a human resource is not a production factor. With respect to man—i.e. to human

resources—we should speak of “quality generators” and classify labor force necessary for

improving throughput quality. All other factors of production can be handled with machines

and the like. However, in real world practice of matured firms, business strategy is often not

in line with the principles mentioned above. In practice every firm—no matter what age—is

f.i. doomed to benchmark with all others. Here lays a task for government. By inducing

appropriate policy, government can give incentives for small and medium sized firms not to

lay off employed labor force for reasons of production effectiveness which means for reasons

of competition. Society should see the high value of grown firms correspondingly. Gaining

intrinsic value is a feature for young firms to serve the interests of private owners and CEO’s

to power growth. Maintaining extrinsic value is a feature for matured firms to survive serving

the meritorious interests of society. However at the moment we experience that mainly for

political reasons this outweighing of intrinsic and extrinsic values of firms itself with respect to

a firms ‘age’ in the process of development is not well embedded in society. Individual

interests often soar up enormously and aims go far beyond the ‘cap’ of any level achievable

within boundaries of a sound economic development. This creates war. And by inducing war,

sound economic development comes at an abrupt, unintended end. Despite the fact, that few

nations would gain from war, other nations perish. War is the race for supremacy and power.

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From this we can learn, that development is not a matter of just materializing any individual

target. Human beings are individuals but individuals can ‘blow up’ themselves arguing in a

very self-centred way, even at governmental level. In all those cases governments behave and

perform like powerful and mighty individuals as we can experience from several nations.

Sound development is always ambiguous in value. It is ambivalent, not easy to comprehend.

Governments are but regulating institutions—not individuals—and, by definition, institutions

can never be subject to any moral behavior.

Yet, not governmental institutions are the main focus, but prosperity of the society they

represent, and, again not society is important, but any individual embedded therein. We

stated already in other words that only individuals can materialize their aims with respect to

integrity and morality if they transfer their acquired quality into the output to make it

absolutely unique—and therefore profitable—in a even global environment.

IT-possibilities, like databases and their systems, milliards of pc’s, global spread LAN and WAN

networks and the like do can provide in an increase in quantity and they are ancillaries for

striving productivity effectiveness, but they as well can’t provide in an increase of quality. Due

to the uniqueness of the species—and as a global conglomerate of milliards of individual

beings—only mankind can provide in the creation of i.e. an increase in quality. In germ and

principle every single individual is made absolutely unique – and, if handled properly by way

of development, so will his product be at developments end. Therefore restricting ourselves

to sole development with its terms and conditions we can also conclude that:

The final aim of all development is to transfer the innate unique range of qualities of

individual beings into their activities and thus their products as an added value for growing

global demand for quality.

In principle this aim is a potential realized at the end of any development up started by

entities like individuals. All survival in development rest upon the pillars of the creation of

quality and—much more important—upon the innate individual capacity of transforming

quantity into quality for a particular development as well as for contiguous developments by

way of creation of germs – as an innate ‘fertility’.

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In the concept of physical economy, money of course is a mere ancillary. It can’t be a main

developments aim, because money can substitute the value of assets, the quantity or quality

of products and services, but it can’t create quality. It creates a certain convenience yet such a

standard of comfort becomes unrelated to development. It’s a pure development gridlock

and an economic offside likewise. As the saying goes: “We are fine off.” Individuals may of

course get wealthy, it’s an individual aim for many. Yet development has no part in it, unless

these monetary assets are some way reinvested. There is no judging aspect in stating these

facts, but physical economics has the purpose to discern, to make clear distinctions between

the aims of those acting in the financial market and in all other interrelated markets.

For business starters, liquidity and increasing capital assets remain a core target for all

enterprising. For matured enterprisers, a firms capital assets are but a medium enabling the

transformation of quantity into quality and to perform sustainability through endogen

innovation capacity. Also the practice of mergers & acquisitions and similar activities don’t

necessarily involve or imply such sustainability and this is a main risk to their successful

transition. Individual beings inducing development are at start confronted with terms and

conditions of all kinds of transparency: i.e. of a demand for rationalized and straight out and

long term planning, for logical reasoning, of adaptations to the customer to define output

kind and specific quantity. Individuals and firms the like experiencing matured development

are confronted with an increasing demand for quality towards developments end. In the

course of development they also experience an influence in the fields of ethics and morality

and react on it in their personal way.

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VIII. The Harmonic Division Bridging Development’s Opposites

We will call the harmonic division which can be find in the rational realm the static harmonic

division or SHD and the harmonic division to be find in the regular pentagram the dynamic

harmonic division or DHD. A short swf movie (http://www.swfcabin.com/open/1274918098)

can show the difference between the SHD and DHD. At first the file shows the SHD. We already

showed that this is result of a ratio of the inner and outer section of a line segment. The SHD is

basic to every start of development and in the natural realm fundamental in the crystalline

range. Next, the file shows you the DHD through the so-called golden ratio visible in the regular

pentagram or dodecahedron. This DHD is fundamental to development’s end. The outbalancing

process between SHD at the start and DHD at the end reflects sound development. As soon as

development starts with SHD, DHD is induced as well in its first stage and the jump creates live.

It is the way all living creatures go starting out from SHD, striving towards final DHD as an ideal

end situation to achieve. (With your mouse you can right click to control the film or you can

hover a bottom screen button in this movie to pause or continue. In the film as a measure rod

or unit we used the ancient cubit for reasons that do not matter yet in this context. Zoom to full

screen ctrl + f; press esc on your keyboard to return.)

What this file shows the reader near the end—having the opportunity to repeat the motion by

clicking a button—was a smooth transition between the Pythagorean and the golden triangle or

between SHD and DHD. However it didn’t show the next striking feature; namely the appearing

of a cleft on the middle axis.

Let us explain this: If two triangles like the golden and the Pythagorean triangle have the same

right angle of 90°, but their sides nevertheless have different lengths, then of course their

hypotenuses are not parallel to each other. Let’s see how we can make this clear: We first draw

a pentagram √5 in a circle connecting three points to build the shape of triangle11, such a way

11 Draw a circle with diameter 40 cubits (1 cubit = 52,5cm) the pentagon—drawn in this circle—will show lines with a

length of 20 meter each. The ratio 1 : 1,05 between a pentagon line and the diameter of the circle enclosing the pentagram in metrical units is proven to be correct. So if we take the royal cubit measuring 52,5cm for the length of the diameter we get the ratio 1 : 2. The cubit / metric measure system is taken to make number comparison clear.

41

that the hypotenuse is vertical and thus equal to the middle axis. If we next draw a Pythagorean

triangle within the surface and using the sides of the golden triangle then the hypotenuse of

that Pythagorean triangle is not equal to the middle axis, because the Pythagorean triangle has

slightly different lengths compared with the sides lengths of the golden triangle. Look at this

graph:

The cleft is a result of the difference between the Pythagorean triangle build according to the

SHD and the golden triangle (basic to √5 and therefore not with sides 3 : 4 : 5) build according to

the DHD In the figure above we constructed a double dome according to the DHD using √5. As

can be seen clearly, developments process will transform the rational SHD into the irrational

DHD. This transformation will nevertheless tear apart the Pythagorean structure because of the

basic principle of irrationality of development at the end.

42

m n

The entirety

development start development end

m n

The entirety

(m-n) : m : (m+n) = AM

(m-n) : n : (m+n) = HM

(m-n) : n : m : (m+n) = GM

If m = 1 then golden ratio = 1.618... measure '1' or the entirety

then:

AM = 0.382... : 1 : 1.618... entirety stands for number 1

HM = 0.382... : 0.618... : 1.618... entirety stands for measure 1

GM = 0.382... : 0.681... : 1 : 1.618... entirety stands for potency 1

IX. Health

Fundamental to sound development is the fact that it proceeds gradually. The cleft is a result of

forces fully and unhindered appearing in the regular pentagram. The transformation process

rhythmically coming into appearance with the dynamic laws of √5 (DHD) that supersede the SHD

is fundamental to all healing and recovering processes as has always been the doctrine of the

ancient Pythagoreans and others. All living creature starts within the SHD, but immediately tries

to achieve the perfect state of the pentagram by inducing the DHD on their quest of live to find

the perfect state as a final target at developments end without having awareness of these laws.

Therefore to achieve a sound processing until appearance of the cleft, the fissure can’t be a

sole and sudden occurrence, but is apportioned, spread out and emerges in small healthy

though critical portions. These portions of small changes turn up during the subsequent

development nodes. Each time a crisis in development appears a small change of basic and

for the period fixed variables emerges towards the dodecahedron realm and away from the

first cube realm. This is the real background of what we call ‘crises’.

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X. Practical Applications

“The "metabolism" [“catabolism” and fission, “anabolism” and fusion] of the physical economy

encompasses is the totality of the physical processes, organized by man, by which the human

population maintains its continued existence on this planet: the generation and distribution of

energy, the vast network of interconnected productive processes of agriculture, mining,

industry and construction, transportation, distribution and consumption of goods; plus

necessary semi-productive activities like education, medical care, scientific research, state and

cultural activities, etc. is the physical-economic activity [to be studied and which we call physical

economics].

Of crucial importance is the relationship between increase in the potential population density of

a given territory, and improvement of key infrastructural parameters, measured both per capita

and per square kilometer of territory. These include: 1) supply of energy, in various forms; 2)

capacity and performance of transport systems; 3) supply of fresh water and other water-

related infrastructure; 4) access to communication education and health services. The growth

of productivity of a physical economy is strongly correlated with an increase in its power

density—the density of infrastructure (energy, transport, etc.), combined with the density of

population and economic activity. In particular, the per-capita cost of supplying essential

infrastructural services decreases as the density of infrastructure and population increases. This

is one of the main reasons for the high productivity of cities, where the per-capita cost of

providing energy, transport, water, and essential social services is much less, than for the case

of a population spread out over a large area. The concept of an infrastructure corridor applies

the same principle to development of a relatively dense, band-like region around main transport

lines, thereby providing an efficient means to extend development into the interior regions of

Eurasia.”12

12 http://larouchepub.com/other/2005/site_packages/vernadsky/3207noosphere_jbt.html

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Physical economy – thus – attempts to improve the potential of population density per km2 by

improving the potential of energy- and energy-flux-density per capita per km2. The potentials of

energy (= generation of energy) and energy-flux (= transportation networks) density are the

main potentials to be created first. This can be achieved by improving infrastructure networks

and the launch of nuclear technology projects. Gradually this will have a positive effect on

building new economic development zones and cities. But there are some crucial challenges:

1. It is obvious that the launch of such nationwide projects can only be executed by astute

governments. Governments holding nuclear technology knowledge and related assets

are empowered for application and its correct use. The misuse of such knowledge on a

governmental level through corrupt behavior, a laissez-faire attitude, or governments

guided by strategies based on religious misinterpretations is the greatest challenge for

physical economics and its appliance in economy.

2. A next challenge is the influence and misuse of monetary policies on physical economy

and the absence of a clear legal and regulatory distinction between commercial banks –

supporting physical economy investments - and all other financial investment banks and

related institutions.

3. A third challenge is the fact that governments and other international institutions can

and do unscrupulously exploit resources at the cost of the population of a nation, which

however can be substantially reduced by correct policies towards improvement of

nuclear technology projects. But economy can’t change malign attitudes.

Of great advantage would be the political situation in which a nation is governed by principles of

virtue and moral attitude towards all of its residents, and of serious partnerships with other

nations guided by long-term strategies for improvement of economic performance also on a

global scale, while taking into account the value of and respect for differing cultures. Fortunately

we have few examples for the existence of such a positive political and societal strategy in

nations. The most important of all examples is China.

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While gradually introducing the main development projects in China, we will provide an

overview of the possibilities that can be created by way of physical economy:

1. Building a grid of hybrid nuclear reactors over all regions with high mineral resources

and low density population. We refer to the article and weblink on page 18. China has

the most aggressive nuclear power expansion program of the world!13 Mainland China

has but 12 nuclear power reactors in operation, yet 24 more are under construction.

Additional reactors are planned, including some of the world’s most advanced, to give

more than a tenfold increase in nuclear capacity to 80 GWe by 2020, 200 GWe by 2030,

and 400 GWe by 2050. China is rapidly becoming self-sufficient in reactor design and

construction, as well as other aspects of the fuel cycle.14

13 http://www.bloomberg.com/apps/news?pid=newsarchive&sid=a2lUkzmYNGWI,

http://www.cctv.com/program/bizchina/20090724/101260.shtml

14 http://www.world-nuclear.org/info/inf63.html

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2. Improving the transportation sector with the use of nuclear or other high technology

with outlets for potential international junctions and transport connections.

3.

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