Category Archives: Economics

What is the worst that could happen?

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Given the abundant historical data we can ask some interesting questions that should prove enlightening to people that have an interest in being enlightened.

  1. Based on the historical record what has been the best possible outcome from a country adopting a predominantly Marxist political philosophy? Where and when is this example?
  2. Based on the historical record what has been the best possible outcome from a country adopting a predominantly free market, free minds political philosophy? And where and when is this example?

Compare those two scenarios and highlight the advantages and disadvantages of the outcomes due to one philosophy over the other.

  1. Based on the historical record what has been the worst possible outcome from a country adopting a predominantly Marxist political philosophy? Where and when is this example?
  2. Based on the historical record what has been the worst possible outcome from a country adopting a predominantly free market, free minds political philosophy? Where and when is this example?

Now compare these two scenarios and highlight the advantages and disadvantages of the outcomes due to one philosophy over the other.

If you country were to have a complete political reset and have the option to chose between a Marxist and a free markets, free minds, political philosophy which would be the lowest risk of catastrophe?

Which political philosophy would be the most likely to result in the greatest good for the greatest number?

What is your choice for the political philosophy for your country as it comes out of reset? What are the critical factors in your choice?

Discuss.

Quote of the day—Alice Smith @TheAliceSmith

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Socialism shifts wealth around at a loss.

Capitalism creates more.

Alice Smith @TheAliceSmith
Tweeted on August 20, 2022
[This is why socialism ends in universal poverty and capitalism (free markets) doesn’t appear to have an end.—Joe]

Citations needed

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With great eagerness I read the article, Crypto’s Decline Was Inevitable, Because It Is Based on a Classic Money Myth. I’ve been struggling for a long time to understand whether Bitcoin (and/or other cryptocurrencies) are the future or a Ponzi scheme:

I expected the author to make everything clear to me.

I was extremely disappointed.

While I tend to believe the main conclusion, the decline of the cryptocurrency market is inevitable, is true, I am exceedingly annoyed that he does not back up his claims. He merely asserts that, as a psychoanalyst, he knows his claims about the nature of money are true.

Even highly credentialed economists are not so arrogant as to make sweeping claims about the nature of money or the inevitable decline of cryptocurrency without detailed explanations and/or numerous citations. This guy is not even playing in his area of expertise and claims complete mastery of it.

That’s really, really lame. This discredits his entire profession. And, for a psychoanalyst, that is no easy task.

Quote of the day—Brian Riedl

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The progressives demanding new debt-financed programs to take advantage of low interest rates did not acknowledge that Washington is already on course to borrow $114 trillion over 30 years just to finance current programs.

Brian Riedl
September 20, 2022
Expected Interest Rate Hike Will Add $2 Trillion to the Deficit
[Prepare appropriately.—Joe]

Quote of the day—John Robb @johnrobb

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21st Century planned scarcity.

As in, “let’s not expand into space for energy and resource acquisition, or take the actions on earth necessary in the short term (nuclear power), because scarcity induced totalitarianism is much safer, just, and deserved.”

John Robb @johnrobb
Tweeted on August 28, 2022
[It’s the ongoing conflict between centrally planned and free markets.Or the zero-sum versus non zero-sum mindset. There exist people who crave and even insist on control. These people believe there MUST be someone, organization, or something in control. They are certain they and the world are a better place if control is exerted over a wide set of peoples action.

Some people believe the world would be a better place if most property and (possibly “or” instead of “and”, but this would be rare when you get down to the details) economic decisions are controlled by some supposedly superior being. This superior being is typically a government controlled by a committee and/or a dictator. These people fall in a spectrum that can generally be considered socialist to communist.

Some people believe the world would be a better place if social position and activity decisions (particularly sexual behaviors) are controlled by some supposedly superior being. This superior being is typically a government controlled or at least guided by a set of religious leaders. These people fall in a spectrum that can generally be considered democratic theists, many monarchists, to theocrats.

In the more general case people can be classified as being on a scale from anarchist to authoritarian. Here I am referring to the somewhat less common definition of anarchist as the organization of society on the basis of voluntary cooperation, without political institutions or hierarchical government rather than a state of disorder and chaos.

All social organizations have tradeoff. And under various situations some organizational types are vastly superior to others. For example an anarchist society does not do well against a communist society in search of hosts to satisfy their parasitic requirements. Yet, not too far up the spectrum from anarchist a society with government formed for the protection can economically and technologically, hence militarily defeat a similarly sized society near the authoritarian end of the spectrum.

I find our current political climate annoying because, as Robb indirectly points out above, a frightening number of people are demanding “progress” toward authoritarian government. There is actually a “sweet spot”, by many measures of societal “health”, which lies far closer to the anarchist end of the scale. This is an old, and mostly ignored, observation. History appears to be nearing another catastrophic rhyme.—Joe]

Quote of the day—Adam Kotsko @adamkotsko

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My ideal land use distribution (based heavily on KSR): all agricultural land is collectively owned and scientifically managed to balance quantity, quality, and variety of food against sustainability and ethical practices. No single-family or corporate for-profit farms.

Adam Kotsko @adamkotsko
Tweeted on August 22, 2022
[I think “KSR” means “Knowledge and Social Responsibility.”

As collective farms have always worked out so well when and wherever they have been attempted.

As Robb Allen @ItsRobbAllen said:

My God, the hubris & ignorance to believe this level of central management is even possible is simply breathtaking.

Prepare and respond appropriately.—Joe]

This is what they think of you

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I don’t identify as Republican but for those of you who do. This is what New York State Governor Hochul thinks of you:

Gov. Kathy Hochul, who hasn’t proven shy about issuing orders, had one for the state’s Republicans this week — all 5.4 million of them: “Just jump on a bus and head down to Florida where you belong, OK?” she said. “You are not New Yorkers.”

If you can move beyond the frankly disgusting political partisanship and intolerance, her message is fiscally irresponsible, even dangerous. The governor probably already knows this, but the state’s extensive public sector is heavily reliant on personal income taxes paid by residents, and with nearly $14 billion in projected budget gaps over the next five years, it can’t afford to lose any taxpayers, let alone 5.4 million of them.

The Empire State has already lost 1.5 million residents in the past decade, and there’s no sign of that trend letting up. In fact, more than 350,000 New Yorkers relocated during the 12 pandemic-plagued months leading up to July 1, 2021.

I suspect she cares even less for “my type” of people than she does Republicans.

I find it interesting that parasites, left unchecked, destroy their hosts. However some, such as your gut bacteria, evolve into a symbiotic relationship and are kept under control by the host.

This appears to be true at all level from a virus all the way down to communists. Hochul apparently doesn’t know the number of known cures for her type of parasitic infection are limited and don’t involve a long term symbiotic relationship.

Quote of the day—Damion @commiedamion

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If your family “suffered under communism” that says a lot more about your family than it does about communism. Good people don’t suffer under communism – slavers and exploiters do.

Damion @commiedamion
Tweeted on August 19, 2022
[Wow! Just WOW!

Evil cannot flourish without believing it is doing good.

Prepare and respond appropriately.—Joe]

Quote of the day—Nina Turner @ninaturner

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Student debt cancelation isn’t paid for by the taxpayers, the federal government is the lender.

It’s costlier for the government to hold on to the debt.

Nina Turner @ninaturner
Thought leader. Activist. Senior Fellow at @RacePowerPolicy. Former Ohio State Senator & Professor.
Tweeted on August 21, 2022
[“Thought leader”? Yeah, I can see that. She is thinking of things almost no one else thinks of. Of course that is because she is delusional and/or evil, but still, it is “leading”.

I wonder which political party she identified with to get elected as an Ohio State Senator. Having crap for brains apparently isn’t a disqualifier.

Prepare appropriately.—Joe]

Quote of the day—Keith M. Bellizzi

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“Facts First” is the tagline of a CNN branding campaign which contends that “once facts are established, opinions can be formed.” The problem is that while it sounds logical, this appealing assertion is a fallacy not supported by research.

Cognitive psychology and neuroscience studies have found that the exact opposite is often true when it comes to politics: People form opinions based on emotions, such as fear, contempt and anger, rather than relying on facts. New facts often do not change people’s minds.

Keith M. Bellizzi
August 13, 2022
Cognitive Biases and Brain Biology Help Explain Why Facts Don’t Change Minds
[This is probably a big part of the reason that Mao Tse Tung coined the phrase, “Political power grows out of the barrel of a gun”. Facts and reason are nearly irrelevant in politics. The only reliable means of changing people’s minds regarding politics is with a bullet.

Socialism and communism are so inefficient they cannot tolerate slackers or doubters. They need a very high compliance rate to sustain themselves.

Prepare appropriately.—Joe]

Quote of the day—Alice Smith @TheAliceSmith

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The big socialist talking points are justice and compassion.

The big socialist motivations are resentment and revenge.

The big socialist results are labour camps and mass graves.

Alice Smith @TheAliceSmith
Tweeted on August 15, 2022
[I would like to add that it seems the word “equity” is showing up a lot. And as I have pointed out before:

Full equality can only be approximated by everyone being in extreme poverty. Full equality comes with death. And it should come as no surprise the political left is well acquainted with death on a very large scale.

Prepare appropriately.—Joe]

Class struggle to culture war

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Via Alice Smith:

image

Sounds plausible.

Quote of the day—Egon von Greyerz

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In 1971, when Nixon closed the gold window, global debt was $1.5T.

After 50 years of irresponsible monetary policies debt has grown 200X. When we reach a total debt of $3 quadrillion in the next 5 to 10 years, with the assistance of the derivative collapse, the increase will be 2,000X since 1971.

Egon von Greyerz
July 13, 2022
BEWARE OF MARKETS FULL OF FOOL’S GOLD
[We live in interesting times.

Prepare appropriately.—Joe]

Quote of the day—Egon von Greyerz

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Debt is likely to grow exponentially in the next 5-10 years, as the world experiences hyperinflation. But we must also remember that as commodities such as food and energy plus many raw materials like precious metals go up exponentially, all the bubble assets (stocks, bonds and property) will implode in real terms.

Egon von Greyerz
July 13, 2022
BEWARE OF MARKETS FULL OF FOOL’S GOLD
[We live in interesting times.

Prepare appropriately.—Joe]

Quote of the day—Michael Snyder

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A historic economic nightmare is here, and the guy in the White House is all out of answers.

So buckle up and try to enjoy the ride.

The months ahead are going to be quite chaotic, and you probably don’t even want to think about what is coming after that.

Michael Snyder
June 2, 2022
Americans Will Never Forget The Historic Economic Collapse During Joe Biden’s Presidency
[I want an underground bunker in Idaho.—Joe]

They want you to die shivering, hungry, and in the dark

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This is fascinating in a horrifying sort of way:

Why we must nationalize Big Oil

… the government should nationalize Big Oil. That would allow the government to manage the industry’s drawdown, a process the private sector is ignoring.

…

“We will likely need to take over and decommission the large fossil fuel extraction corporations that are both one of the leading causes of climate change and one of the primary institutional impediments to addressing,” Hanna concludes.

…

The federal government typically nationalizes companies to save them. In this case, it must nationalize Big Oil to save us all from a future we don’t want.

“Drawdown” is this character’s euphemism for controlled destruction.

They are referring to the manufacturer of a product that provides the energy to produce and transport food to billions of people who would otherwise die. This product is the basis of the worlds greatest triumphs over poverty, hunger, shelter, transportation, and pestilence. And these people want to deliberately destroy access to it.

To the best of my knowledge nothing of this sort has ever before been advocated, not even by the most evil communist regimes the planet has ever seen. This would be the deliberate murder of the vast majority of the world population.

Yes, people have been saying the deliberate and violent extinction of humans is what the environmental fascists “really want”. But prior to this the worst I have actually seen is the Voluntary Human Extinction Movement.

Prepare appropriately.

Another economy has collapsed

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Nightmare becomes reality in Sri Lanka as govt has no choice but to declare economy has ‘collapsed’:

After months of shortages of food, fuel and electricity. Sri Lanka’s prime minister said this morning the country’s debt-laden economy has “collapsed.”

Prime Minister Ranil Wickremesinghe told Sri Lanka’s parliament today that the South Asian country is “facing a far more serious situation beyond the mere shortages of fuel, gas, electricity and food. Our economy has completely collapsed.”

I didn’t see the exact words but I strongly suspect the high price of oil on the world market contributed.

There are other economic stressors out there. The most obvious are wheat and fertilizer from the Ukraine/Russia region. There are countless others. Some are ripple effects from the war. Others are from other areas of the world and less direct such as the chip shortage and inflation.

There will be more collapsed economies in the coming months and perhaps years. The ripples and, perhaps even, tidal waves are just over the horizon.

We live in interesting times. Prepare appropriately.

Dark times ahead

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Via Chuck Petras @Chuck_Petras:

Changes at a QFC store — apparently for security reasons — have some customers say the store is going too far. Some are worried about safety and exiting in an emergency.

Two Seattle QFC stores now have extensive plexiglass inside, directing traffic for shoppers and limiting how people can exit. The grocery chain told KIRO 7 the changes are “to maintain a safe shopping environment,” but customers believe the goal is to thwart shoplifting.

“It’s like shopping in a dystopian novel or something, it’s really bizarre,” said Chris Mobley, a shopper at the store. “Seems to be a way to annoy customers — it’s really hard to navigate the store,” he said.

A few days ago Barb was at a store (not QFC) not far from our home in Bellevue, a suburb of Seattle, and the clerk commented, “There goes one of our regulars. He comes in every day.” It was a shoplifter.

Also, The police aren’t coming, but now in Seattle, they have a name for that:

It’s well known that Seattle police are struggling to respond to 911 calls in a speedy manner. But the notion that “the cops aren’t coming” has become such a routine of city life that they’ve created a new way of tracking their nonresponsiveness.

It’s called the “Z protocol.”

I have to wonder how much of inflation is the result of “defund the police” and related nonsense.

My greatest concern is that at some point many people will to conclude they are stupid for not stealing whatever they want. That will bring some very dark times.

Quote of the day—Goldmoney Staff

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Roman silver and gold coins were the principal money for the known world. The US dollar is the world’s reserve currency today, and nearly all the other 170-odd government fiat currencies are aligned with or refer to it. An accelerating dollar collapse will take most of them down, just as surely as the Roman currency collapse propelled the world into the Dark Ages.

Goldmoney Staff
May 26, 2022
A Roman lesson on inflation
[I know people preparing for a version of the Dark Ages. IIRC, they were planning on surviving with mid-1800’s technology. Among other things they were making hard copies of important books which explained the everyday tech to make and preserve food, build homes and barns, raise farm animals, create and care for tools, etc.

If I were seriously concerned about a major reset I would target the late 1950s or early 1960s. This would be the era just before semi-conductors because tubes aren’t that hard to make compared to semiconductors. Internal combustion engines with electric starters and instruments should be doable. Oil wells and refineries, even if operating at much lower production levels, with output prioritized for agriculture production, processing, and distribution should be able to prevent a die-off that sends us back to the true Dark Ages. This preserves enough tech to get us back to present day capabilities before the highly skilled people are all gone.—Joe]

Quote of the day—Richard Curtin

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Adam Smith’s legendary invisible hand describes how individuals acting in their own self-interest can create unintended benefits for the entire society. Unfortunately, the country now faces the potential for an inflationary hand that can transform self-interested decisions into losses for the entire economy.

Richard Curtin
April 7, 2022
Inflationary Psychology Has Set In. Dislodging It Won’t Be Easy
[We live in interesting times. Prepare appropriately.—Joe]