Posted by: graemebird | August 10, 2011

The Structure Of Recovery From Recessions

IT ALL GOES BACK TO THAT MORON PAULSON:

All the main stories on the news today have the same cause. From the moment the imbecile Hank Paulson became treasury secretary, the Northern Hemisphere bankers and public servants began a co-ordinated policy of dispossession and disemployment. No empirical evidence exists supporting Keynesian doctrine. On the contrary, the disemployment began and continued with the stimulus he brought to the Americans. The joblessness further increased with the banking heist bailouts, and those stimulus measures and banking heists were taken to the Northern Hemisphere at large.

How Would YOU Have Beaten The Norwegians Logic?

A logical and calculating conservative decided around the time of the bailout heist that he was right, and that obviously working through democratic channels was a waste of time. Rather than crazily killing a few people with passion, he psyched himself up to do what he considered to be the right thing. He trained his mind to accept what he was going to do, even going so far as to take the right steroids and other drugs, which would allow himself to take these measures that were not natural for him and not motivated by some sort of excess of natural rage.  Formerly a very good-looking fellow, its hard for the usual suspects to psychologize the pants off the Norwegian and find deficits in his person that might explain his behavior. In fact his behavior was motivated by logic. Many people would come to the same conclusion as the Norwegian. Many people would say that political action on its own was now useless. And many people would cite 2008 and the banking heist as a watershed event. I would agree with about 90% of what the Norwegian has written. I would have advised him not to do it.  And I would have had a case. But what would have been your case. Should you agree that the enslavement, and willful farming of us by banker-elites and public servants is unacceptable, and must be stopped by any means necessary …… if you agreed with that much, then what would your argument have been?

Angelo Codevilla mentioned in passing the obvious. That we are not going to resolve our problems with the stupid and parasitical ruling class without civil strife, at this stage of the game.  He didn’t advocate violence. But we see that when matters get as far as they did in 2008, violence is inevitable. And so we see that violence on the streets of London, and across the UK. Some parts of which once were known as England, before England was abolished, without a single shot being fired.

The violence and looting you see ALSO goes back to Hank Paulson. If it is fine for bankers to steal trillions of dollars, then how do you expect this predatory ethic to NOT filter all the way down to the people this very stealing has dispossessed. Since the small-time looters we see on the TV, either have no jobs or are getting paid very little. If you think a rent-seeker like Paulson is fine to organize a Palace Coup, pay himself 500 million for totally unproductive rent-seeking behavior, and then start a racket where some 12 trillions were lent spent and guaranteed as a result of bribery, threats (open threats) and kickbacks aimed at politicians …. then who would begrudge a poor man putting on a mask and carrying away a humble wooden rocking-horse?

We have to get our moral compass straight and decide just who are the bigger criminals who don’t need to behave like that. And who are the dispossessed, who would steal a rocking-horse, just to feel like he wasn’t being made such a damn fool of.

Keynesian economic fallacies and fractional reserve bankers caused the “Great Depression” also. But then the people had the Christian-Athenian sense of restraint. We can expect the civil-strife/pain ratio to be much higher this time around. Many people will get killed.  Few of them will be bankers and high-paid public servants. And none of the bankers and high-paid public servants will give a damn.

That was the news I read in todays paper.  The Norwegian logician still making a few column-inches after all this time. ((((Actually a brilliant review of his writing by an highly intelligent female journalist I’d not seen before)))). Then there was the British rioting. Of course fueled by the unemployment that had been foisted on those girls and boys by the stimulus spending and bank-stealing.  And obviously fueled also by the moral example of the bankers stealing all that money after they had manifestly failed, and subsequently paying themselves bonuses to the bewilderment and wonderment of all those who witnessed the arrogance of it all. And the sometimes subconscious message has to be THAT THE CONTROLLERS ARE FAR MORE POWERFUL THEN WE THOUGHT. That we are being treated like farm animals to a much greater extent than even most conspiracy theorists would have deemed possible.

Also in the news today was another stockmarket crash. This stockmarket crash a harder ask for the assholes than the GFC related crash. “There was no recovery. There was just a cover-up” as Gerald Celente rightly said.  Europe and America never recovered. Because they never stopped the policies that were causing the problem. The deficit spending and the bank bailouts were the cause of the recession.  Some of the quantitative easing was actually vital, necessary, and should have got there earlier.  But some of it was part of what Celente would deem “the coverup.”. And me too. Me too.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>

Its not for you or I to take violent action or advocate violent action, cryptically or otherwise. Its not for us to try and egg these people on, choosing our words carefully so as to have an alibi.  Violence is inevitable. Our aim has to be to bring the violence/pain ratio down. And also to bring the liberation/violence ratio up …. supposing we were to halfway concede to the Norwegian, that someone, somewhere has to take physical action, even if only as a catalyst to get the right things done. Or as a way of forcing some of the arrogance out of the banker-public servant-covert operations hegemony.

Don’t do it. Don’t do it alone and most of all MOST OF ALL don’t let yourself get carried away with group behavior. Leave the mindless group behavior to our oppressors, and their “pampered-slave” (house-nigger) sycophants.

Don’t even start a fire of any building not a central bank building. Don’t even think about it.  When the fire dies down the long arm of coincidence may leave things done that cannot be undone.

Any hour or calorie you could possibly spend doing these bad things, could be better spent educating yourself so that you can educate others. No more excitement then.  We have to get down and grubby with the serious business of the nuts and bolts of getting out of recessions. Thats the topic you have to be expert on ….. well thats todays topic anyway ….. so that seismic social events will tend to see catalytic progress in the right direction, and for a fucking change.

>>>>>>>>>>>>>>>>>>>>>>>>>>>>

So what constitutes a worthy recovery?

Well there are some things we ought mention that DON’T constitute a recovery.

1. A stock market rally does not constitute a recovery.

2.  A few of the larger firms entering into a deal to put on more staff doesn’t constitute a recovery.

3. GDP artificially held up by new borrowing doesn’t constitute a recovery.

4. GDP rising two quarters in a row is no recovery.

5. Prices going up is no recovery.

6. Monetary expansion may often be necessary. But monetary expansion in itself is no recovery.

7. Saving banks from collapse is no recovery. The restoration of banker profits is no recovery.

8. The restoration of business profits generally is also no recovery.

9. Recovery is not something that happens as a result of people becoming “confident.” So much crap is being spouted about this right at the moment. But there was never any truth to this nonsense. Except to the extent that people are confident that if they keep pouring their efforts and resources into their small businesses the subsequent wealth they generated will not be looted.  Brainless journalists are right now dimly remembering their Keynes, and they imagine that all these consumers and businesses are hoarding cash. In this view people need to be spending on consumers goods and most particularly borrowing more to spend on consumers goods, in order for the recovery to be effected. So they have to be deluded with a lot of happy talk.  Really this is all so stupid that the journalists and economists involved in this foolishness are lucky not to be beaten with sticks everywhere they go.

>>>>>>>>>>>>>>>>>>>>>>>>>>>

So back to what constitutes a proper recovery:

A valid recovery is in effect when small business and new startup EMPLOYMENT (and private EMPLOYMENT more generally) is growing quickly, in the context of falling prices and even faster falling debt levels.

Thats about five requirements needed to be able to pat ourselves on the back and say that we have engineered a SUSTAINABLE and therefore valid recovery.  Without any of these factors, the alleged recovery is not sustainable, and therefore ought not be considered a valid recovery.

Lets make a numbered list of these requirements. Because they are those requirements which tell us that the recovery is both real and sustainable.

MORE LATER

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Responses

  1. “Jacqueline Kennedy thought LBJ “and a cabal of Texas tycoons” killed JFK.

    Daughter Caroline seem to agree:”

    We thought wrongly that if three or more people were involved the secret couldn’t be contained. But the historical record shows that the instigators got a bewildering range of people to take a knife to the Senate. Covert Ops, or the people who steer covert ops and “turn” covert ops to their will patiently involve EVERYONE, so that anyone can be blamed and everyone has a part in keeping the secret. Stupid mobsters who speak out, and brag, are killed very quickly. So the reality is that the conspiracy must be very large to work. NOT that it had to be very small. The total opposite of our natural assumptions.

    “Jacqueline Kennedy thought LBJ “and a cabal of Texas tycoons” killed JFK.

    Daughter Caroline seem to agree:”

    Its a fact of history that these people were involved. But then everyone was involved. Makes me think of Waiting For Godot. Everyone either participated or looked the other way. We know that chronologically speaking the plot spiralled out of Operation Mongoose. We even know the name of the Kennedy hit. It was called “The Big Event”. What we don’t know is if communist or hyper-banker influence got inside Operation Mongoose and “turned” that operation all around. But once it got going then everyone had to be slowly brought into the plot.

  2. From elsewhere:

    Jikky
    August 10, 2011 at 7:10 pm | Permalink
    This all started when the public servants and bankers joined hands to rip off, dispossess, and dis-employ people of this ilk in the Northern Hemisphere.

    So it all started with Hank Paulson. Hank organised the stimulus which let loose the Keynesian economic-fallacy genie and at the same time thru millions of Americans out of work as the statistics clearly show. He then went on to organize the bailout …. the greatest theft in all world history, which thru more millions out of work, and established that the rich will steal TRILLIONS if they can get away with it so why should not the working man, or the unemployed man, steal a rocking-horse.

    Those viruses that Paulson started went general in the Northern hemisphere. Wherever stimulus came thousands upon thousands were thrown out of work. This is what happened here also. As the statistics show without controversy.

  3. David Wilkie said:
    They aren’t acting wrongly. They are acting in accordance with the new ethics of the stimulus package and the banking bailout heist. Those ethics are that if poor people are hurting due to public sector parasitism DOUBLE DOWN on the parasitism citing Keynes. And should you be already rich and can steal 12 trillion dollars when you have manifestly failed: Do it. Do it. Just do it.

  4. Jikky
    August 10, 2011 at 7:38 pm | Permalink
    Absolutely it says something about the rioters. They were dispossessed and disemployed by this formentioned dual act of horrendous thieving. These are men. They aren’t going to take that sort of abuse and bottle it up and it not come out sooner or later. You can laugh and joke about scamming us with the stimulus package, and the bank heist. But there will be a reaction sooner or later.

  5. Jikky
    August 10, 2011 at 7:56 pm | Permalink
    Look if society says that being an apex predator is where its at thats a lesson that goes down to the people who do the work, and pay for the apex predator. Or to the people the Apex preadators dis-employ.

    So if public servant apex predators, in the public service promote stimulus packages, and if apex predators in the banking funny-money rort, promote bank-thieving heists, thats a LESSON LEARNED for the benefactors of these criminals, and for those that these apex predator criminals have thrown out of work.

  6. Pol pot he too baaa. Pol Pot he so baaa. He die he go to how. Pol Pot vely vely baaa.

    He too baa for how. He bish-slap Goh. He make Hiwa Cwy.

    Soon is excellent at character creation. He even gets the linguistics right. But one thing he will never get right is politely aggrieved female. He can do sorely aggrieved female easily. He can produce transcripts from memory and even if that let him down all he need do is keep a notebook on hand for two weeks maximum.

    But he aint never going to get politely aggrieved female happening because he can never relate to girls on that human level. He’s always looking at them upside-down.

  7. GRAEME WILL YOU BE RUNNING IN THE SEAT OF DOBELL THIS COMING BY ELECTION IF THERE IS A BY ELECTION

    YOU SHOULD DO THIS THANKS IN ADVANCE

  8. Hmmm. I couldn’t possibly afford to run a serious campaign within the next two or three years. I’d think about putting my name on the ticket and getting more serious in a future election. Always to me the main thing is education, education, education. And you may have noticed that lately I haven’t even been able to involve myself with that too much in terms of finishing posts and so forth.

    Keep me posted if it does go into by-election. But the most I would do is pay the fee, return any resultant correspondence, and set up a serious manifesto which would include the goals of each department for the near-term. Most of them being to simply clear their desks and with some suggestions for mitigation.

    • Come on Graeme you can’t let these mediocrities represent Dobell. Why not throw your hat into the ring? Get in touch if you need to talk about campaign strategies.

    • You cannot run a serious campaign without a lot of time off and a bunch of money. I’d like to do it but I’m not in that position right now. I’d like to put down a plan for every department that need not be wound up right away. But even completing an essay on each department as part of a manifesto is beyond me time-wise right now.

  9. “One in three jobs in NSW Health’s head office – up to 400 positions – are on the chopping block in a $30 million budget pruning, The Daily Telegraph can reveal.”

    That means that two thirds of these bludgers get to keep their jobs. Always you make progress by knocking out one public servant earning 160,000 and putting on two nursing aide trainees pocketing 40 000 each, and the rest going toward the surplus. But still its a very good outcome simply because someone has broken the spell of public sector jobs being untouchable.

    Thats been the really hard deal for me to accept people like Sinclair Davidson and John Humphreys. They’d talk up a storm on tax cuts. But you would hardly ever hear them talking about spending cuts, you’d almost never hear them talk about sacking public servants, and you’d certainly never hear them demand that departments be closed down outright. Yet its sackings and public department closures that are the only fair and humane way to deal with our problems.

  10. When did the left link bank PROFITS to the riots?

    When did I link bank PROFITS to the riots?

    Never and never. Yet still Jason Soon must put that distortion in. Way to much distortion to be mere shorthand. But why? Does he ever ask himself why? There are so many “no-go areas” in our thinking isn’t there? Sacking public servants was a no-go area until just about right now. It really was. Hard to believe but it really was.

    “I’m surprised Birdy still has free reign on Troppo.

    He seems to be peddling the lefty line that the rioters were provoked by bank profits”

    Become more zen Jason. I don’t know if being more zen will be helpful on a practical level but you ought to do it anyway. Because you should be able to explain yourself without this level of distortion.

  11. “THE Coalition could shut down entire government departments as its searches for $70 billion in budget savings to fund promises for the next election, including up to $8bn in cuts to personal tax.”

    Finally the spell may have been broken. If they can do this and get away with it the country may be salvageable after all. Since clearly we are being impoverished with every day that passes under the current cruise control.

  12. I don’t want to be mean to Jennifer Hewett but can someone tell her to right about subjects she has some clue about. We finally had a finance spokesman who knew what he was talking about and Jennifer went and asked that Tony ought to stand Barnaby down. Now that Barnaby is being proved right daily, she’s doubling down on this stupidity and chastising those incompetent rent-seekers, Standard and Poors, for all the wrong reasons. Instead of them being a ratings agency, a job at which they have manifestly failed, Jennifer would like them to fail even more and become some sort of happy-talk merchants. In her total misunderstanding of economics, Jennifer says that CONFIDENCE is a pre-requisite for economic recovery. Not the confidence to save or put every hour, and scrap of resources back into your small business. But rather the confidence to splurge and borrow. She’s got no idea.

    Jennifer undo the damage you have wrought, admit you were wrong, and call for Barnaby to be re-hired. Another complete loser when it comes to financial analysis is that fellow SHANAHAN. And notice these are Ruperts people. Why are conservative sheeple still supporting Ruperts empire. Nice old guy yes!. But we would be better off if he sold off his international holdings bit by bit, paid off every last penny of debt, and came back home to do what he does best. Run Australia. Maybe if he himself was out of debt, he wouldn’t be going along with what seems to be a new world order type of project to dispossess places like Australia and the US.

  13. “Bob Brown says proposed Coalition spending cuts could cause a recession”

    Why wouldn’t he say that? Thats what Catallaxy has been preaching all these years. Guided by the stupid Joseph Cambria, and by the Keynesian nutter, affecting to be in the rightist team (Sinclair Davidson) you all believe that reducing government parasitism hurts the private sector.

    Why put down Bob when he’s only going on your sayso? Only Kates knows what he’s talking about over at Catallaxy (well yes and Rafe, and CL has a bit of a clue). The rest of you actually believe the Shiite they teach at economics 101. Thats what Cambria believes. Thats as far as he got with economics in the degree he did and he’s a brainless moron and unable to learn anything beyond a sort of monkey-see monkey-do level.

    In the last 25 years we’ve really only had maybe 2-4 budgets involving pretty serious spending cuts. They have set us up well enough … .just these few budgets, to maintain the illusion of growth and wealth even as all our gear has been sold from beneath our feet.

    Had every budget been approached with the same sort of attitude, we would think of ourselves as owners of substantial overseas assets by now and we’d still be in possession of most of the local gear. We would just about be starting to build resentment because of our rentier status. .

    On the other hand no matter how well you save and no matter how wealthy you get you can still be undone by financial sector parasitism, as the Japanese ought to have found out in the 80’s.

  14. Everyone knows JC is a regurgitating twerp, Graeme. Time to learn something new. What is the best salve for every sorrow? Learn something. (T.H.White “The Once and Future King”.)

    Have you bred any good rooks lately?

    • Almost sounds like you are talking the talk to me in public. I’ll have to find out what that means.

      “Have you bred any good rooks lately?”

      Sounds fascinating.

    • Oh I get it. You weren’t making enquiries into matters I would lie to you about. You were rather engaging in Cockney rhyming slang. I can settle down again. After some deeper than the normal breathing. You were asking me if I’d read any good books.

      Well silly me.

      • Haha. Yeah well rhyming slang is a very Australian thang too, y’know.

        I was really wanting to tell you about a book I,m reading, as well as hear about what you’ve discovered.

      • I’ve read three books all by the same author. James McCanney.

      • Okay the books are:

        Planet-X Comets And Earth Changes
        Surviving Planet X Passage
        Atlantis-To-Tesla (The Kolbrin Connection).
        Principia Meteorologia.

        What I’ve found out is that we are far more cronyist than what I had imagined. And that the invisible hand was broken in three places even by the time that 1900 came around.

        I found out that we can pull electricity clean from the ionosphere, even without a satellite, from up on the northeast coast. And I found out that the main thing to worry about if we tried it would be sabotage, or NBN-style crazyness (investing too much, too quickly and not on ones own terms) and that the project would have to be socialist with ASIO protecting it from potential wreckers.

  15. What do you think of stem cell treatment on humans?

    • My understanding was that there had been more promise showed with adult stem cells, so that there wasn’t much case to be made for degrading our already course sensibilities by using fetus cells. But I could be wrong.

      Since I’m an advocate of the electrical view of how the body works, and since I think there are very good cheap cures for most ailments, as a result of this paradigm, I tend to think of most of the other stuff as an expensive diversion from what ought to actually work.

      But then again if people would damn well try things you would think you could use stem cells and advanced electrical therapies to grow new organs. You’d think so anyhow.

  16. A cat I know tore its cruxiate and nearby ligaments (knee) and had its kneecap basically surgically reconstructed. It’s only two so probably has a good chance of recovery except that all these injuries in dogs and cats even with surgery are likely to lead fairly quickly, i.e. months to osteoarthritis.

    However, Sydney University vet & medical depts will very soon be trialling stem cell injections for bone/ligament damage in cats that will, it’s claimed, make damaged joints “like new”.

    Amazing, eh?

    I’ve got the weird feeling this cat, given its age and the medical attention lavished on it, will one day in the not too distant future be a bionic cat living on Mars.

    • If it works it will be amazing. But they ought to be using the insights from “The Body Electric” to help with the project. But the paradigm is one of the many things that have been blackballed.

      The reason that a younger cat can repair better than an older one is probably mostly to do with the greater level of electrons that the younger cat can muster to create new cells. When you heal you don’t repair old cells. Rather you have to produce new ones. And to make good new cells you need the right fats and proteins … but also you need enough electrons to raise the pH of the affected area from about 7.3 to about 7.8.

  17. I never imagined I’d be entranced by a novel about an ornery Icelander sheep-farmer, but this book is the ant’s pants. His obsession is personal economic independence – aside that is from sheep.

    http://www.amazon.com/Independent-People-Halldor-Laxness/dp/0679767924

    • You have won me over. I’ll get it and start reading it so I can attempt to sound intelligent when I talk to you about it.

  18. Totally ahistorical, ignorant, and ridiculous comments about WWII by someone calling himself “Handyman.” He seems to be quoting someone, who actually knows what he is talking about, but Handyman appears to imagine incorrectly that the other fellow is wrong in every respect.

    Whats more the dummy has asked Cambria to back his ass up. Like not only does this fellow not understand WWII. Its as if he doesn’t understand a damn thing.

  19. test 2


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