Undocumented Aliens Take Twinkie Jobs?

With the shut-down of Hostess Twinkie-dom, there have been empty shelves at AMPM Minimarts. Yes, eBay has plenty for sale, but not the Minimarts. Now that has changed. I went into Minimart for a caffeine fix and I noticed the shelves once laden with Hostess products are now groaning with sponge and cup cakes treats.  I took a second look!  Aye Caramba!

SnoBalls and Twinkies

Since these seem to be not properly labelled, or so to speak, undocumented, then do they not labor on the shelves illegally?  They look even nastier than Hostess products, if that is possible, but perhaps that is why they are selling well. De gustibus non disputandem est.  Perhaps we'll see joint FDA/Immigration raids on the Minimarts, and Jesuit Peace and Justice committees holding candlelight vigils in protest.

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King of the Beggars

I received an email asking me if it is best to leave USA to find opportunity.  I replied there is more opportunity here than anywhere else on earth.  For example, at a freeway off ramp I hired a beggar to pray for me.  I think charity is extremely hard to do right,  it usually makes things worse,  so I try not to attempt it except with extreme caution.

Now, in Hong Kong there is a person called the King of the Beggars.  Beggars must apply for where, when and what role they play as beggar, and pay into a sort of social security network.

But there is more, whereas the UK has cameras everywhere, Hong Kong has the beggars who see all.  When the cops need an eyewitness, the King of the Beggars, for a reasonable donation, can provide eyewitnesses to much that goes on.

A policeman once told me there are no homeless people, just crackheads.  They have homes, but they prefer the streets.  Crack is a lifestyle, and best lived out in the open.  You are not going to fix some problems.  But you can realize how the world works, and make it pay.

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Reservations as the New Hong Kong in USA

Now this is interesting:


L: Yes. It's too late now, but for years I've had a fond fantasy that Russell Means would persuade some band or tribe somewhere to exercise the sovereign independence they truly and legally have, and tell the US government to go get stuffed. The US can keep its welfare checks and other "help." Instead, once acting independently, they could set up a free-trade zone and invite businesses to lease land for a dollar for 99 years – sort of like the original Hong Kong setup – and levy no taxes. Businesses would gladly move to South Dakota – or wherever – to enjoy a real tax haven without having to leave the continental US. Even without the taxes, the businesses would create countless jobs and benefits for the tribes –work with dignity. If there were also fewer regulations than in the US, technological progress and innovation could happen faster. Instead of being romanticized welfare projects, such reservations could become shining beacons of liberty, prosperity, and progress…
I'm sure he must have tried – a pity the idea never caught on.
Doug: Absolutely. It worked for China; it should work even better for Indians, who are not burdened with the legacies of Maoism. But I guess INTJs are just as rare among American Indians as among Americans of European descent. Perhaps even more so.
Worse, native culture has been all but destroyed, not just by the wars and decimation of their population, but by the welfare mentality foisted upon natives by the Bureau of Indian Affairs. The BIA since its founding has been the most notoriously corrupt of all government agencies, which is saying something. It still spends billions per year, largely keeping Indians dependent and on their reservations – hanging around the fort, as Russell said. The BIA is one agency that should be abolished tomorrow morning, and then a thorough criminal investigation launched for malfeasance and misfeasance among both its current and retired employees. It's time Indians controlled the property they own and are stopped being treated like wayward children.
But to answer your question, going back to something I said earlier, as much as I respected Russell, his greatest failing may have been that he did not educate himself deeply on the philosophical matters that concerned him. He never read enough of the classics and current literature to gain a thorough theoretical understanding to back his gut libertarianism. He could argue from the heart, but not as effectively from the head – he was quite capable of it, very intelligent, but he just didn't bother. This may be why, as passionate and impressive as he was, he couldn't talk any of the tribes into doing as you say.
L: Reminds me of the king telling Mozart in Amadeus: "Herr Mozart, you are passionate, but you do not persuade."
Doug: [Laughs] Exactly.
The last thing Russell got involved in some was project in the Dakotas – I wrote about it in theInternational Speculator at the time; it had to do with setting up a free country, just as you described. I meant to get in touch with him about it, but urgent things got in the way of important things. Anyway, he had some health problems at the time, and I didn't think he was the sort of guy who'd want to go out with a bunch of tubes stuck up his nose in a white man's hospital. I thought he might look to pick a fight with the Federales and go out in a blaze of glory. It didn't end up that way, and that may just be the greatest tragedy of Russell's life.


I've always wondered why American Indians do not form their own "Hong Kong" here in the USA.  For example, the Puyallup Indians have prime port land of their own, and it appears their lands run all the way to include Mount Rainier.

The Indians in the Northwest were keen on alliances with the paleface immigrants, but were given genocide instead.  Alliances presume a change in policies as well, so fundamental freedom as an operating system, free from force or fraud, might be a good idea right now.

And certainly, as far as the USGovernment is concerned, we are all Indians now.

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Capitalism Critiqued More

Here is a follow up on the article below...

Here is a bit of history:

In 1879, journalist Henry George published the immensely popular Progress and Poverty, in which he argued that private ownership of land is the cause of many of the world’s evils. “To extirpate poverty,” he wrote, “to make wages what justice commands they should be, the full earnings of the laborer, we must therefore substitute for the individual ownership of land a common ownership.”

***Error #1, the labor theory of value.***

 George arrived at this conclusion by declaring that “Land is the source of all wealth.”

***Error #2, that land is wealth.  Land is an asset, that can be property if worked by the owner.***

Consequently, a man who is denied land is denied the right to earn a living.

***No, a man denied his property (means of production) is denied the right to earn a living.***

A man has a natural right to the products of his labor, George argued, and therefore should not be forced to pay rent to a landowner, who contributed nothing to production. To George, the capitalist was an exploiter, who got rich on the backs of the workers.

**** I could not agree more.  If you can actually work the property you rent out, horses, hotel rooms, cars, then they are your property.  If you must hire people to work them, then they are homesteadable, in a free market.  Sell before they are homesteaded.***

To ensure that people would be rewarded for their efforts, George devised a system in which an individual would be guaranteed the right to use a specified parcel of land. However, rather than owning that land, the individual would be little more than a rent-paying tenant. This, George assured his readers, would provide opportunities for all and bring a quick end to poverty.

***Hong Kong is proof of this today. It is possible to have your premises dead wrong and your conclusion to be correct.***

But, if George’s system were fully implemented, such assurances would amount to idle promises. If all land were publicly owned, the public would have the power to determine its use. A man would have no guarantee that the factory he built this year would be allowed to stand the next year, if the public should decide on another use for that land. 

***In practice, that is not the case.  In capitalistic USA, no one has any idea if they will be evicted tomorrow, as we see in recent Supreme Court decisions.  If Costco wants your lands, Costco gets those lands.***

In 1894, a Chicago journalist named Henry Demarest Lloyd published Wealth Against Commonwealth, an attack on the Standard Oil Trust. Lloyd believed that Standard Oil and its founder, John D. Rockefeller, represented everything wrong with society in general, and capitalism in particular.

***Yes.***

To Lloyd, the capitalists were as evil and tyrannical as King George III had been prior to the American Revolution. They were individualists, he declared, who placed their own self-interests above the public interests. Individualism, he believed, had served its purpose. “The laissez-faire of social self-interest,” Lloyd wrote, “if true, cannot conflict with the individual self-interest, if true, but it must outrank it always.”[4] In other words, the individual is to be subservient to society.

***Yes, he is right, but then he goes left, he goes off the rails.  The individual is beholden to the customer, that is the free market, and the solution to these bad policies and philosophies.***

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Apple Follows Lenovo Onshoring to USA

China has decided to take advantage of cheap USA labor and build its ThinkPads in USA.  Wait.  That can't be right.  Let me try again.  Since assembly is mechanized intensive, and labor is not a factor in international trade, Lenovo's Chinese management has realized that since management costs are now similar,  ThinkPads can now be made in USA.

Apple is following suit, and they will be making some models in USA.  Now we may find in time it is tax give-aways that is causing this reshoring, but I doubt that.  Apple wouldn't play that game.  What is motivating this is after 25 years of development, Chinese management is no less expensive than USA management in this narrow category.

Although some Chinese labor is nominally lower paid than USA labor, in this category the difference is negligible.

Labor rates have never been a factor in international trade.  The reason you believe labor rates to matter is that you have not studied it, you just believed what you were told.  You were told labor rate were too high in USA so the labor movement in USA could more easily be crushed.

With more management than opportunity, the cost of management is dropping fast in USA.  This is very good news, because we cannot have a recovery without falling costs.  And a healthy economy always experiences gradually falling prices.

So reshoring here looks good.

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A Defense of Capitalism

Here a fellow outlines the conflict between the capitalists and the communists, and comes down for capitalism, for its putative generation of wealth:

The populist/reform movement was concerned primarily with the distribution of wealth, not its creation. Lloyd and his fellow reformers viewed wealth as a static quantity, and rather than encourage further production, they preferred to advocate more equal distribution of that which already existed. However, they overlooked the fact that when production is discouraged, the amount of wealth available to distribute ultimately falls. This is why plans to achieve equal wealth invariably result in equal poverty.

So the capitalists create wealth and the communists distribute it, but they are mutually exclusive in his view.  Distributionism leads to poverty.  No doubt, but I doubt capitalism creates wealth.  There are some elements of what seems to be free markets in capitalism, but in toto it is no such thing.

Free markets on the other hand, both create wealth and justly distribute it.

Here is a serious mis-definition:

In a capitalist society, in which the government has no control over the economy,


I've seen many definitions of capitalism, even the laughable one above, but no definition that condemns charging interest (usury).  What evils capitalism engenders is directly and almost exclusively the result of usury (interest) which is a practice not sustainable without government protection.

The article continues:

However, American society was the first in which that wealth was attained, not by conquest or confiscation, but by production and trade.

True, true.  If you do not count people of some African heritage.  And the pre-columbian peoples here.  But if you do count the people conquered, slaughtered and lands confiscated, then USA is no different.

And the article summarizes:

But the Founding Fathers were political philosophers, not moral philosophers; therefore, capitalism was never provided with the proper moral justification.
 

What?  Adam Smith was specifically a moral philosopher, his title at the university.  He wrote plenty leading up to "Wealth of Nations" published in 1776.  Perhaps the lack of proper moral justification comes from an impossibility to provide one.

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All Hail Chinese Communist Party Reform!

The people of China have had it, and the Communist Party is leading the way in reforms!

The newly-elected leadership of China's ruling party has pledged to reject extravagance and reduce bureaucratic visits and meetings, in a bid to win the trust and support from the people.

The leadership of USA should compete with China on this point.

"The spending on officials' trips and inspections should be kept at the minimum necessary level," according to a statement issued after the meeting.

In USA this would mean a 100% reduction.

"There should be fewer traffic controls arranged for the leaders' security of their trips to avoid unnecessary inconvenience to the public, and inspection tours as a mere formality should be strictly prohibited," the statement said.

20,000 of us roasted in the hot sun as Obama tied up traffic during rush hour to attend a fundraiser with a Costco founder.  I've quit Costco for it (and Costco has managed to avoid hundred of millions in taxes, in return for raising about one million.)  Make officials take the bus.

Political Bureau members are not allowed to attend all sorts of ribbon-cutting or cornerstone laying ceremonies, as well as celebrations and seminars, unless they get approval from the CPC Central Committee, according to the statement.

Yeah, and add American officials to that list.  We should make American officials get permission from the Communist Party before they can visit anywhere.  Let's outsource bureaucrat management to China.

Official meetings should get shortened and be specific and to the point, with no empty and rigmarole talks.

Well, then, what would USA officials talk about?

It also asked the senior officials to keep a frugal lifestyle and strictly comply to regulations on housing and vehicles.

The Chinese Communist Party runs Hong Kong, and if an official cannot explain all of his money, he goes to prison until he can.  Again, outsource the Inspector General job to The Chinese Communist Party.  I like the part where they shoot embarrassing officials.

Xi Jinping said in his speech when meeting the press after being elected general secretary of the CPC Central Committee that the new leadership had taken on an important responsibility for the people and the party had to solve problems such as "corruption, being divorced from the people, going through formalities and bureaucratism."

The guy sounds serious.

Two members of the Standing Committee of the Political Bureau of the CPC Central Committee recently asked officials not to read their prepared reports at meetings to save time in order to speak about more concrete contents.

That means no more teleprompter for you, president Obama!

It also stressed that the Party "should make determined efforts to improve the style of writing and the conduct of meetings, and reject undesirable practices such as mediocrity, laziness, laxity and extravagance, the practice of just going through formalities, and bureaucratism.

In USA, that is part of the job description for officials.  We voted for hope and change and all we can hope for now is some spare change.  Let's implement the correct political views of the Chinese Communist Party in the USA political class and its appointees.

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International Trade Growing Again

September Trade Data looks good...


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Low Taxes, Stable Money

Forbes has some advice on the economy: low taxes, stable money.

The United States was founded on the principles of the Magic Formula. Until the introduction of the income tax in 1913, taxation was almost nonexistent. The principle of a gold-based currency was defined in the Constitution. The result was magical: the United States was the most successful country of the 19th and 20th centuries.

Just so. And then goes on to explain...

Today, the Magic Formula is best exemplified by Hong Kong and Singapore. Both have very modest tax rates. Both provide a full spectrum of government services, including universal healthcare. Both adhere to the principle of Stable Money. They don’t use a gold standard – that would introduce an intolerable degree of instability of exchange rates and the conditions of trade – but they have a policy of maintaining their currencies’ value at a stable and predictable level with major international currencies.

In Hong Kong, this is done by way of a currency board arrangement with the dollar. In Singapore, it is done by way of a currency-board-like arrangement with a basket of major currencies. The result is that both governments abandon any significant form of discretionary “domestic monetary policy”.

Yes, Hong Kong has a stable money supply, because yes Hong Kong allows only private companies ot issue the currency.  (Money is still gold.) Those private companies realize the 800 pound gorilla is USA, and that although the system is rotten, it is tradable.  So Hong Kong has private business has elected to have a temporary system that takes advantage of foolish USA policies.  George Soros, currency manipulator extraordinaire, say his job is to exploit foolish government policies.  Just so.

Hong Kong is on a gold standard for money, but it is also taking advantage of the other side of the currency bet that USA has placed.  We need to see how things are so we can plan accordingly.

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Holland Returns to Anarchy, Admits It Works

The deal-breaker question when it comes to anarchy is "who is the cop?"  People so badly want to be oppressed that they demand to know who will be the cop to oppress them.  The answer is you are the cop.  No way!  People want someone else to fight their battles.

Being "cop" does not literally mean fighting your own battles.  It is enough to merely shun evil doers.  Evil enough, shunned enough, evildoers starve or mend their ways.  That is how it is done when there are no cops.

The state introduced prisons which keep evildoers off the streets for a while, then then sends them back.  Evil doers have no fear of upsetting their neighbors due to state protection of evil doers.

Holland is realizing this is not working.  So the state, both the left and the right, is considering the solution to malefactors, the solution being shunning.

Amsterdam is to create "Scum villages" where nuisance neighbours and anti-social tenants will be exiled from the city and rehoused in caravans or containers with "minimal services" under constant police supervision.

Wait, we had that.  And you ended it.  So now you want to restart it?  Why not just eliminate the state? And then shunning will return.  No cops necessary, since we all fight our own battle, collectively.

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Make A Crazy Rule, Good People Get Around It

http://dollarvigilante.com/

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Sandy, Climate Change & Damage Assessment

On the radio a fellow was earnestly urging the President to do something about "climate change" because the damage done by Hurricane Sandy is just the beginning.  What? Does not everyone know the losses were caused by federal government economic policies?    We have a flood insurance program, mandatory, that passes the risk of flooding from developers and owners to taxpayers.  This great idea was introduced in 1969.  Therefore, little or no effort is made in planning to worry about flooding.  Why bother?  Get land that floods dirt cheap, build developments on it, and then when it floods every 2 decades or so, hit the taxpayers with the bill, and do it again!

Let's run through the worst damaged places with the HuffPo - South Ferry Whitehall subway station.

Formerly two unconnected stations, the 2009 completion of the new South Ferry IRT terminal added a free transfer between the 1 train and the N and R trains at the older Whitehall Street station.

This station complex is the third on the site to bear the name South Ferry. The second, open from 1905 to 2009, served the IRT Broadway – Seventh Avenue Line and Lexington Avenue lines. The first was an elevated station open from 1878 to 1950, and served the former IRT Ninth, Sixth, Thirdand Second Avenue lines.

2009.  Take a wild guess why they elected to make it a elevated stop in 1878?  And no worries, make it underground now? The other big expense is the Bay Park Sewage Plant:

A 2010 Long Island Press investigation into Nassau’s Cedar Creek Water Pollution Control Plant and Bay Park Sewage Treatment Plant exposed myriad public health and safety hazards at both facilities including: gross mismanagement by local, state and federal officials; unintentional or willful neglect by plant supervisors; critical, multi-million-dollar taxpayer-funded equipment in disrepair; a near-complete lack of preventive maintenance, the equivalent of changing one’s oil in a vehicle so it doesn’t completely break down; a culture of retaliation against those who spoke up.

Breezy Point got hit hard. It started as a few beach bunglows in the early 1900s and in 1960 a private group bought it and began developing it.  It was a community of 3500 tight packed homes when Sandy hit.  It was fire at Breezy Point, a place difficult for back-up fire crews to access.

Too bad too, since it was a fairly anarchistic township.

Breezy Point is patrolled by its own private security force that restricts access to owners, renters and their guests. It also features three of New York City's ten remaining volunteer fire departments.^[7]

On September 8, 2012, the community was struck by a tornado shortly before 11 a.m. that started as a waterspout over the Atlantic Ocean and came ashore at the Breezy Point Surf Club.^[8]

Yeah?  Californians would have surfed it.

But flood insurance makes people do foolish things, like build where no one should build.  No legitimate insurance company would ever insure such structures, so the only thing that would be built would be say bungalows, which it wiped out, would be easy to replace.

The storm impacted not only people's homes but also their businesses: On Staten Island, the Italian restaurant Puglia by the Sea, which had just moved to its prime waterfront location a year ago, was washed into the ocean. Across New York state, businesses were hit with $6 billion in damage by Sandy.



Still, he said he will do whatever it takes to bring his restaurant back to life. "I am going to build bigger and better," he said. "Another storm like this, it's not going to happen again."

How?  Are you going to build it to such specifications that it is stormproof, like a nuclear power plant?  Sounds expensive. And wait, wasn't Fukushima a nuclear power plant on the ocean? People can talk this way only because the taxpayers will be there to pick up the tab when it happens again.

Playland has been around 100 years and it got hit hard.  But what is this?  It is not a private park, but a government owned park?  It's a money loser so the authorities have been kicking around the idea of "privatizing" it.  Wait, it was private.  Then it got taken over by the government.  Now here again, the taxpayers are on the hook.

Have you noticed anything travelling the world?  How most places those groovy little restaurant on the water are grass shacks or clapboard cabins?  Wanna guess why?  Storms.  Who in their right mind would build something expensive where it is guaranteed to get wiped out every so often?  Puglia should be rebuilt cheaper so he can make enough money selling food and drinks and rebuild the shack every decade or so.  But when free credit and cheap interest are on offer at taxpayers expense, the economic calculations get foolish.

Here a climate-change-delusional cites architects plans for redesigning New York to meet the challenges of climate change.

Look at the map of where the most damage was done.  I wish there was an overlay of newer developments to make the point, but I believe native New Yorkers will see pattern, the more damage, the newer the development.  Also look at all of the places where damage was nonexistent.  Again, less development and better construction (or worse, but design.)

And look at the Battery Street area.  That is all reclaimed land.

This quote from Forbes:

One man rescued from near the Teterboro airport told a reporter, “It was like an ocean all around,” he said. “That place always gets flooded, but this time was the worst because the level of the water reached the floor of my trailer.”

Always gets flooded.  And taxpayers always cough up the disaster aid.  When is this going to stop? Note this, how Forbes describes the force of the storm by the damage done.

This super storm will certainly go down as one of the greatest ever to hit the United States, with damage amounts well in excess of Irene’s $10 billion hit in 2011. EQUECAT has estimated that the damage will be on the order of $20 billion, which would put it in the neighborhood of Hurricane Ike, which struck Texas in 2008. Insured losses will likely be more than $7 billion.

Well, Yes.  Damage in Manhattan will rack up higher losses than damages just about anywhere in Texas.

Perhaps we can help out the climate-change-delusionals with a slogan; "Solve climate change, get rid of federal flood insurance."  The damage is to property built on the malinvestment caused by federal flood insurance.  We've always had weather, bad and worse.  We do not have climate change, we have policy changes.

Yes, we have pollution problems, and they need to be solved, but they are not caused by "climate change."  They are caused by economic policies.  And then some government policies cause pollution directly, such as whatever is going on with the contrails work.  Yes, we need to address pollution, by making those who cause it pay for it.  We need to address storm damage cost, by making those who risk it pay for it.  Coming up with some delusional cause means the problem will never be solved.  But then, no problem, no government.

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Government Chaos vs. Free Market Anarchy

Mario Monti is the Goldman Sachs minion the powers-that-be tapped to run Italy. Since in capitalism bankers cannot operate without bailouts, and bailouts require tax receipts, Monti is actively shaking down productive Italians to gather more money for Goldman Sachs.  If they cannot steal it one way, then another.

Like Google, Boeing, Apple, Microsoft, Fiat and countless other businesses, Dolce and Gabbana structured their operations to avoid taxes, according to the law.  They were investigated starting in 2007, and found nothing amiss until Monti became the Italian prime minister.  Now they are on trial.  As the article states:

"Some measures adopted by the government against tax evasion may seem like war measures and, in reality, they are," Mr Monti said last month.

His predecessor, Silvio Berlusconi, was famous for his soft stance on tax evasion, even suggesting that it was justified if tax rates exceeded a certain level.

There you go.  Productive members of society, the ones who generate goods and service in season and out, not matter what happens in Washington or Wall Street, or in the case of Italy, Rome or Milan.  There is no rule of law.  The government brings only chaos to what would otherwise be the spontaneous order of the free markets.  And it is selective enforcement, going after only high profile people, trying to terrorize everyone else (recall the war comment above?)  The tax collectors actually relieved a soccer foreign soccer player of his Rolex watches on some charge of evasion.

In ancient Rome, as it fell, Italians escaped to the anarchy of the barbarian lands.  If they were captured, they were sent back to work their farms or trade, so they could be taxed.  Here is a delightful history by a tax lawyer, who is misapprehends the relationship between taxes and civilization, but is an excellent reporter of the facts.



Our economies are simply a reflection of the health of our country.  We cannot pay back the debts, which means they will not be paid back.  The way out is freedom, but some 54% of the American people scream "more war! more taxes! more surveillance! more free stuff!" because they can always find a job there.  The other 46% knows they will always be outvoted, such is the nature of democracy.  If things get worse, they vote for a strong-man.  And things will get far worse.  The way out is freedom, freedom to contract, freedom from force or fraud, or both.  If you examine any unit of the United States currency, you'll realize it is both force and fraud.

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O! Great!

The places with the most potential for free trade development are targeted to be rife with an additional force of USA spies.

The total includes military attachés and others who do not work undercover. But U.S. officials said the growth will be driven over a five-year period by the deployment of a new generation of clandestine operatives. They will be trained by the CIA and often work with the U.S. Joint Special Operations Command, but they will get their spying assignments from the Department of Defense.

Among the Pentagon’s top intelligence priorities, officials said, are Islamist militant groups in Africa, weapons transfers by North Korea and Iran, and military modernization underway in China.

What happened to Geo. Washington's warning?

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A Good Example

Alfred sends in an excellent example of a real world start-up, and any student of mine will see the pattern, it is what I teach.  It is also a point I have to make, what I teach is not "copy John" but "How to." And what I teach is no secret, it is just the right way to proceed.  In this instance:

“I remember one of those trips to Fargo,” Shelby laughed. “There was a really good-looking guy in line and we were chatting. And then I had to pull off my boots and I realized how stupid I must look. Suddenly that cute outfit didn’t seem so cute anymore. I just hoped he didn’t notice. I spent that entire flight thinking, there had to be a better way.”

And by the time Shelby’s plane touched down, she’d come up with one. She decided someone needed to create a pair of tights made specifically for women like her -- women who wanted a fashionable look that would also keep them warm. And she decided that someone was going to be her.

Very good... read the article and it is replete with experience.  But the best part is the comments, where people tell her how stupid her idea is.  AFTER she is at a million in sales!  Ummm... folks,

1. Where is your success?

2.  Your opinion does not matter, the only opinion that matters is that of her customers.

3.  After someone succeeds is a little late to be criticizing and idea.

It does show how so very often people are keen on criticizing anyone who steps out of line and tries to make the world a better place.  Count on it.


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Tito & Tarantula

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