Kraemer Vs Kramer - The Environmental & the Social

Kraemer Vs Kramer - The Environmental & the Social

(A Transaction-centered Paradigm for Aural Sustainability Capital and Global Externality Resolution)

GangaPrasad Rao, MSc, MTech, MS, (PhD)

Energy, Environmental and Mineral Economist

gprao64.blogspot.com; gprasadrao.blogspot.com

Disclaimer:

No two Architects would ever come up with the same design; the global macro-economic - macro-environmental paradigm presented here is but one vision of the ‘vasudhaiva kutumbakam’! 

Gold Markets, Beware ! All errors and omissions, unless induced by social activity around, are indeed mine.

Click here for the pdf: KraemerPDF

Introduction

It doesn’t take an avid social observer to perceive the atrocit… err, the strategies that the Nominal adopts, in a conspiracy with the Political apparatus, to enlarge its capital returns at the expense of the gullible masses. When sustainable and efficient technology comes at a high price, or even otherwise, Capitalists do not mind the less efficient, polluting technologies that they may pursue within an expanding, per-capita society to enlarge Private profits. The consequent Nominal exacerbations generate, on one hand, concentrated but remote externality streams (solid waste dumps), and on the other, exact a diffused and distributed toll on the masses in the form of SESH externalities (such as Soil Pollution, Noise Pollution, Climate change), some of which wreak damage on flora and fauna as well, for which many members of the society have significant values for. However, a Real society comprises innumerable members within, who display very different values – some avowedly Green and ESH-knowledgeable, and who display a high WTP to obtain egalitarian environmental sustainability, and those others who’d rather society focus attention on the inequities of opportunities and outcomes within, possibly at the expense of egalitarian ESH standards, some of whom even go so far as to make anticipatory (religious-), social-, or political deals prior construction of polluting sources. Such subjective schisms within the society that concern hard-to-perceive, diffused inter-temporal public risks, and concentrated opportunities around them, are exploited by right-leaning Capitalists, who leverage their power on the Political Government to obfuscate the issue, and substitute what is politically-palatable and nominally-aggrandizing for return-attenuating egalitarian SESH increments. Such private arrangements between the Political and the Capitalists find resonance in electoral strategies that divide the masses in to apposite niches, and placate each niche with a certain social and monetary resolution within a mirrored financial paradigm. Across decades, such strategies aggrandize Capitalists, weaken the Real society, and reduce the Quality of Life for the masses who must not only bear the brunt of diffused externalities cumulated upon them, but also dovetail their lives to the designs of Rich Capitalists and the politically-empowered. Such divisive, unsustainability-exacerbating paradigms bring about a perverse situation in which externalities of the Nominal Privates are served - whether in exposures, damage, or remediation, by sections of the Real society either to the extent they are ignorant, insensitive, or meek, or have FV-consistent ESH values, or, for various surreptitious family- and social favors and ‘processes’, or pecuniary considerations. Given the nature of ‘Nominal Capture¹’, such underground, deep-funded strategies are difficult to anticipate, engage, and attenuate, far less eradicate. This manuscript explores the seemingly impossible – a design that untangles the Environmental Left from the Socio-political Right within the society, and which offers a Gold-funded, Bond-based financial mechanism to reveal camouflaged, but antipodal preferences, untangle, and pro-actively manipulate them through a Gold Exchange, to obtain a society with higher ESH standards and QoL within a sustainable, per-capita, Dividend-yield economy.

1Read Blog: https://gprao64.blogspot.com/2018/01/fax-corporate-tax-avert-regulatory.html

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A Socio-Economic Dialogue

The Nominal paradigm and the Capitalists within, have long been stigmatized as causing an unsustainable and divided society for pursuing their private profiteering strategies. It has oft been claimed that, frontier advances excepted, Private returns have been obtained at the cost of environment, natural endowments and the current (and future) society. Regardless the truth of these accusations, it is a fact that the Nominal paradigm leverages technological advances to exploit the natural resource endowment, and ‘hatch’ the Real potential of the society. However, the very nature of the Nominal – competition at the unknown, and untreaded frontiers of Technology, leaning on distant societies to obtain its professional expertise, and the distribution of its products across geographies, causes it to engender many an externality, some an exacerbation of current externalities, and yet others entirely new and unknown. Despite these externalities, it is the Nominal that expands the FV frontiers of the society, and though obliged to the society for the SESH externalities it imposes, is deserving of a share in the increment to the Real Half of the societal sphere that accompanies its technological gains. And though many nation-specific strategies exist to combat externalities, there isn’t, with the exception of cross-boundary Treaties and Carbon Permit Schemes, an integrated strategy to address externalities of the Nominal paradigm.

This proposal seeks to simultaneously engage many issues: a) a resolution to the joint phenomenon of Real externalities, and the Nominal share of the increment to the Real FV Half-sphere consequent to incremental transactions in the Nominal PV economy, b) the design of an IMF-WB ‘Balancing Gold exchange’ that punishes SESH externalities, that incentivizes innovation and efficiency, which creates apposite Sustainability Capital for an expanding per-capita/PQLQ, Dividend-yield economy, and which funds nation-specific externalities, and externalities in the Commons, and c) the design of a Cause Bond that permits the society to parse between the ‘Environmental’ and ‘Social’ in the Political Left arena, and which pre-emptively anticipates and corrects temporally-cumulating diffused, or remote externalities by offering a platform for expression of concentrated Environmental and Social Preferences among the impacted members of society, reinforced with funding toward externality resolution.

The Compact between Capitalists and the Political Coterie extends to the various Real Futures and Social streams associated with Nominal transactions. Often times, the Political Coterie, claiming to act on behalf the Public, exploit their political mandate to relax standards on externalities associated with both, the existing economy, and its incremental expansion. In such instances, Political parties may well divert Environmental Cause funds as Political payoffs to various social entities, particularly political channels camouflaged as Social NGOs. Such under-hand transfers pull the rug from activities aimed at environmental sustainability and jeopardize the long future of the society. The mechanism proposed here offers a comprehensive, globally-networked solution that anticipates such diversions. It co-opts international, multi-lateral organizations to address the long, temporally- and spatially-diffused environmental externalities caused by the global nominal economy. It generates two distinct Aural Capitals – Aural Sustainability Capital and Aural Social EO Capital – to populate the Nominal (and Real) socio-economy, that together bring about resolution of past externalities and obtain a socio-economically-balanced society in to the future.

As suggested earlier, the proposed design facilitates a sustainable macro-resolution to a maturing growth economy by issuing Aural Sustainability Capital that displaces ‘Old’ OpCy Capital in firms that operate in mature Sectors and Technologies, and facilitates its reconstitution in to ‘New IPO’ Capital. This schumpeterian recycling of Capital is consistent with a PQ economy and obtains a smooth transition to a sustainable Dividend Yield economy.

A word of caution. Despite the elaborate statistical and econometric tools that exist, the quantitative elicitation of SESH externalities is very much an art, with results contingent upon the detail, and quality of data, model specification, the technique applied and the instruments used. Since the entire proposal rests on the correction of quantified externalities, the reliability of the estimated Transaction-imbued externalities is fundamental to the succesful operation of the rest of the model. The proposed mechanism, though innovative, is remedial in the sense it operates to resolve externalities associated with past transactions. However, and although Externalities are better apprehended at an earlier stage, the same is anticipated through the creation and distribution of Aural Sustainability Capital, and the foresight of the Externality Cause Bond. There are also theoretical and statistical issues concerning C_TE, the FVPVSM and r_ASC, the hedonic estimate for SESH_kt, subjective calls in the design of hedges and bets at the Private SX, in the division, issue and operation of Externality Cause Bonds specific to the Nation, and its global component. For these reasons, the design would be subject to further review and tests, prior acceptance and implementation.