Saturday, December 12, 2015

Capitalism and Fisheries

A loan is by proper definition ethically always a charitable event.  In capitalism, a loan is a business deal, and no definition of capitalism excludes the loan at usury under its ethical claims.  Capitalism could not exist without the loan at usury as its central feature.  Only the free market obviates the loan at usury.

Example 9,384,701,283 of how capitalism destroys peace and prosperity is the harm done to fisheries.

Two core problems have emerged. The first is that governments who can afford to do so lavish subsidies on their fisheries sectors. This leads to overcapacity and overfishing. Experts estimate that some 60 per cent of existing stocks are overexploited. That means they risk depletion and eventual extinction.
The second problem has come to be referred to as illegal, unreported and unregulated (IUU) fishing. This blight hits poor countries that lack effective means to protect their seas (in some cases fresh waters) and the livelihoods that depend on them.

Well, subsidies, contra-market hegemon intervention, is only possible by the capitalist process of lending credit at usury, privatizing the profits and socializing the losses.  The first paragraph is a result of this.

The second paragraph, example 9,384,701,284 of how capitalism destroys peace and prosperity, is a a follow on effect.  After subsidizing the chosen winners, the WTO steps in and outlaws a people from fishing where they had for thousands of years peacefully and prosperously in a free market before the capitalists showed up.

Now, I don't say overthrow the capitalists, any more than I say overthrow the Casino operators.  Just make usury (interest bearing contracts) unenforceable in law.  Usury will wither away, except among the delusional, who deserve what the get.  Like at a casino.

Feel free to forward this by email to three of your friends.


Yahoo and Yum

So the game is no longer working, and whereas Yahoo is planning to unload its core to keep its Alibaba stock (a reverse of its earlier plan), Yum (KFC/Taco Bell/Pizza Hut) is unloading its China division.

Yahoo did a 180 when they realized selling yahoo would be a hammering on taxes, and who knows why Yum is spinning off...
As for Pizza Hut, it has been dealing with greater competition from upstart online ordering businesses that aggregate pizza sellers, a slowing Chinese economy and misguided promotions that didn't emphasize affordable prices. "There has been dramatic activity in the aggregator sector we have seen venture capitalists come in and Chinese internet players are backing some," said Pant. According to Pant, Pizza Hut is now listed on aggregator sites, but will proceed cautiously in developing a strategy to compete with the new companies. 
Since when can start-ups cut into the sales of those with mass market buying power? Since deflation.

the fact is uncle sam needs to mulct his cut from the only people with receipts they can track, and the "get big or get out" malcredit driven model is over.

It will make sense in time...  but banks giving up too big to fail status (GE),  and restaurants splitting up to save themselves...  my my my... what does it all mean?

Feel free to forward this by email to three of your friends.


Friday, December 11, 2015

What Does Bezos, Ma, Gates and Buffett Have In Common?

Yes,  they are all billionaires, but they also all buy newspapers.  How come?  Why buy the dying, dead tree media?  The land underneath the legacy media mountains?  
...Alibaba agreed on Friday to buy the media assets of ...Hong Kong’s most influential English language daily newspapers, The South China Morning Post. ... that for decades has reported aggressively on subjects that China’s state-run media outlets are forbidden to cover, like political scandals and human-rights cases....
 Alibaba said the deal was fueled by a desire to improve China’s image and offer an alternative to the biased lens of Western news media outlets. 
Well there you have it...  to protect the system that picked them as winners.  At once, eliminate any controversial voices by buying the newspaper with the independent voice, and then use the same newspaper to publish what the hegemon wants said.

AS if newspapers did not already do that, and get paid to do so.  But...  better people admired for their riches do the job, and make money at it (capitalism) than what we have had, the government do it (socialism).  Yay! Socialism is dead!  We will be so far better off now.

Under no circumstances can there be a free market in information.

update:  and Shelley Adelson...

Feel free to forward this by email to three of your friends.


Thursday, December 10, 2015

Bitcoin is a Tally

I've explained Bitcoin as a tally for years now, and it seems the bankers agree.
 Financial Times reporter Kadhim Shubber wrote that the new additions are "a sign the industry is gathering behind R3 in one potential implementation of the distributed ledger technology behind the currencybitcoin."[10]
Feel free to forward this by email to three of your friends.


Tuesday, December 8, 2015

Trillions Sloshing Around

J. K. Galbraith: ‘The study of money, above all other fields in economics, is the one in which complexity is used to disguise truth or to evade truth, not to reveal it.’ Money, p. 5

Here I am trying to figure it out, and it turns out...  nobody knows.  New territory.  Mish summarizes -

Instead the BIS speaks of "dislocations", "unthinkables", "uneasy calm" and how "low interest rates fuel instability."
Yes, that's a pretty damning indictment of central bank policy. 

So yes, that much we know... the policy is nuts.

The Bionic Mosquito is relying on Tyler Durden and Dr. north for some ideas, and coming up with his own.  One factor...
...Fed will be helpless to raise rates with some $3 trillion in excess liquidity sloshing around,...
Well, "liquidity of what sort?  Certainly not cash, even funny money.  This has to be tallies, claims to pay...  whom for what?  Here is my rough draft of the problem...



this is a graph representing my memory of what Stockman, etc say, so if anyone has actual figures and breakdown plus can create an accurate (not my estimate) graph, I'd certainly show and credit it.  I'll use it in my next book, too.

But back to my point...  whatever happens, the end result is, whether fast or slow, when it ends. it will be at least in USA, if not worldwide, a conflict between those who believe they have claims on the productive capacity for promises made (welfare, corporate and otherwise, pensions, obligations, etc) and those who have title to the USA productive capacity (equity and bond holders).

You cannot squeeze blood out of a turnip.  But we have seen how the hegemon will parcel out assets.  The Exim bank was overwhelmingly re-authorized.  All banks first.  That is USA capitalism.

Your only safety area, come what may, is self employment.  Realize now you'll get nothing promised to you, and act accordingly.

I am.

Feel free to forward this by email to three of your friends.


Monday, December 7, 2015

WalMart and the Future of Puerto Rico

Puerto Rico is managed under USA laws.  It has a welfare culture that is now part of its DNA.  This was genetically engineered about 25 years ago, when massive tax breaks were given to USA big business  ...
 “They were very large incentives for folks who set up shop there, produced things there and resold them somewhere else. Over the years large Fortune 100 companies set up very big installations in Puerto Rico to research things and develop drugs. Pharmaceutical companies were there in droves, and some of them still are there. Those benefits were phased out and largely eliminated with some legislation in 1996. Many people point to that as the beginning of the end for their economy. When those incentives went away, those companies didn’t necessarily pull up stakes, but they didn’t make any further investments and they sort of let things trickle away. In the course of all these years, we’re starting to see the effect of that in a major way.”
Now,  It is a mess.
The increase comes as the U.S. commonwealth struggles to restructure $70 billion in debt, more than every U.S. state but New York and California. This week, the U.S. Supreme Court agreed to consider reinstating a law that would let Puerto Rico’s debt-ridden public utilities restructure their obligations.
After ramping up energy infrastructure to support the pharmaceutical industry and others given welfare, once the welfare is gone, so is the business activity.  So Puerto Rico passed a law that can apply to only one company, WalMart.
The new levy raised the estimated cumulative income tax on Wal-Mart Puerto Rico Inc. “to an astonishing and unsustainable 91.5% of its net income,” according to the company’s complaint, filed in federal court in San Juan Friday.
This strikes me as one of those wonderful mistakes, like making the Berlin Wall fall.  Walmart must ever grow its top line to support its model, and its bottom line to pay off investors.  This tax on the bottom line will enslave WalMart.  They can't quit, but they cannot make money?

When taxes no longer fulfill the obligations, then they need to tax more.  When there is no middle class to tax anymore, for WalMart wiped it out, then the hegemon only has WalMart to tax.    The revolution, at the outskirts, Puerto Rico, is starting to eat its own.

if Walmart were ever to fold, then there could be a small business renaissance in Puerto Rico (Rich Port) with small farmers selling quality eggs as they once did, but were driven oout of business by WalMarts low quality cheap eggs.

It is not only bad money drives out good, but bad eggs drive out good eggs.

Usury and malcredit is the mechanism for driving out the good and gaining personal accumulation at others expense.  BUT...  it only works with the victim's cooperation.

It will only get worse if the hegemon destroys Walmart and the victims are not ready to start up their own businesses.

Feel free to forward this by email to three of your friends.


Sunday, December 6, 2015

MalCredit: You Cannot Give it Away

So the EU has now officially introduced negative interest rates.  So what does this mean?

The ECB pledged on Thursday to continue its €60bn-a-month bond buying quantitative easing plan until March 2017 and cut a key interest rate to a fresh record low of minus 0.3 per cent. But the measures disappointed investors that have come to rely on Mr Draghi to smash expectations, with a broad market sell-off after the ECB failed to deliver deeper cuts and an increase in the pace of QE.

If inflation is a monetary event in which the currency, warehouse receipts for gold or silver (or salt), are printed beyond the stock of money backing the currency, then prices rise in terms of the currency inflated.

The reason inflation is a hegemon policy (2%) is the bankers who create the inflation use the money before the prices rise in response to the mal-currency introduction.  The burden of the inflation is borne by the retail customer, who experiences a price rise with an income rise.  This is the heart of capitalism as practiced, and only the Austrian School of economics condemns this practice. (Although they have no objection to usury).  All hegemon policies are inherently evil, for they pick winners and losers.

If inflation is a monetary event involving money, and deflation is a monetary event involving...?  Money?  When there is less currency to go around, then less will be needed to buy a loaf of bread, or in other words, when a loaf of bread was $5, in deflation, a loaf of bread can be had for $1, since there are fewer dollars around to make purchases, those fewer dollars buy more.

My brain aches trying to wrap around that truth.  But that is how it works...  but now let's look at the credit twist and deflation.

Currency represents an asset, money, gold or silver or salt sometimes.

Debt represents something owed, and in its beneficial form it is backed by an asset, and in its malicious form it has no asset backing it.  Most of the world debt today has no asset behind it, the great unknown, to be discovered, is just how much mal-debt there is.

So cutting the interest rates paid on mal-debt to negative is deflation, but how so?

The practical reason for negative interest rates is proposing investors lose only 97% of their tallies come the next crash, when the popular alternative, equities, will see a 40% loss.

But what is happening as an economic phenomenon? Credit deflation has to be the mirror image of monetary inflation, so... deflation is a monetary event in which the debt,  receipts for currency loaned, is generated beyond the assets backing the bonds, then prices fall in terms of the assets underlying the bonds (debt).

Whew!  My brain aches... it take less Euros to buy a EU10,000 bond today than it did yesterday.  Clearly that is deflation.  Do I have the mechanics right?

As far as I can tell, no one is trying to figure out the mechanics of this, only looking at how to trade the event.

Feel free to forward this by email to three of your friends.


Jeremiah 15-10

Once you have the definition of a loan as a charitable event, and only a charitable event, then it's possible to begin to see more clearly business dealings.  As an aside, here is this:

I have neither lent on usury, nor men have lent to me on usury; yet every one of them doth curse me.

Anyone who lent money as a business was iconically despicable.  Has anything changed?

Feel free to forward this by email to three of your friends.