Posted by: graemebird | October 20, 2011

Crash Program: Ending Australian Cronyism, Decisively-And-Fast.

Its been announced lately that some bludger is likely to get a 65 million dollar payout for leaving the company.  There is no way you can swing it that this is serving the shareholder interest.  We must set matters to rights for reasons of simple justice, and for utilitarian reasons.  But also we will have a whole bunch of kids growing up who must associate the voluntary society with dysfunction, poor performance, and gross unfairness, should this sort of thing continue.

The idea of capitalism is, in some senses a conspiracy against big profits and unjust enrichment.  But the mechanism is not a single step mechanism.  The companies were supposed to serve the shareholder. Now why would your average worker want that? How will that lead to a workers paradise? Well it was competition that would then lead to those shareholder gains being whittled down, and the net result was supposed to lead to lower prices, leading to higher real wages.

If anything goes wrong with this two-step then the social contract cannot be justified, to reasonable, hardworking people. Many who may have been able to be innovative within their company and yet see little rewards for this.

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The decisive tax moves to end cronyism, would also destroy the economy, if they were to be placed upon big business, without a lot of other conditions being met. This is all normal and according to Hoyles. One can never give ones support to some sort of short version of a scheme that sounds okay on the surface.

For example on the surface of things I’d want a congestion tax.  On the surface of things I’d kind of like all these free trade deals. But we don’t want to be like Jason Soon and just fall for everyone CALLING a vicious money grab “a congestion tax” and be supporting the vicious money grab on the basis of the nomenclature. Likewise we don’t want to be supporting a string of cronyist government-to-government deals, just because someone thought to call them a “free trade deal.”

Always we see this sort of bait and switch.  The idea is to never go along with the momentum, once the fix is in. The measures to end cronyism involve in part getting rid of the company tax, and foisting a 2% total revenue tax for companies with revenues over 100 million, and a 2% assets tax for companies with assets over a billion dollars.

Now clearly Catallaxy types will be lying if they were to claim I would support these new taxes without getting rid of the company tax.  But in fact merely getting rid of the company tax would not be enough.  We would need to achieve a lot of other things as well.

Supposing a company made 101 million in revenues? Under this scheme the revenue tax would be 2% of 1 million dollars. Supposing the company had 1 billion and 1 million in assets. The asset tax part of this scheme would involve only 2% of the 1 million excess.

Foreign-owned companies would pay 1% for each type of tax, but from dollar one. No threshold at all.

I would envisage this setup to be sunsetted after thirty years, then the tax rates dropped to 1% and the thresholds dropped to only 10% of what they were in the first ten years.

How could this not destroy the economy? You might ask. Good question.  The answer has to be in a myriad of measures to increase business spending as a proportion of gross revenues.

GDR= C+ (GROSS) I + G + X -M

This differs from GDP as GDP only deals with NET INVESTMENT.

Now to stop the anti-crony measures from  destroying the economy, we need to increase the proportion of :

GROSS INVESTMENT/GROSS DOMESTIC REVENUE

If we can guarantee this, we can be sure that the anti-crony measures won’t hurt the economy. But if we cannot guarantee this proportionate increase in business spending, then we run the risk of disaster.

This is only the start of the process of getting rid of cronyism. I’ll deal more with other changes in discussions.

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People should get a fix in their mind just how important business spending is. In ideal monetary conditions (ideal when debts are a lot lower than they are now) the situation is one of “growth-deflation.” This is where the average firm in the country expects that its revenues may grow, but that it must be able to sell its produce, or offer its services, at lower and lower prices.  The basic business improvement program is therefore to spend money now, to cut recurring costs later.

Now supposing we find that L.E.D lights can reduce our lighting-electrical consumption by two thirds.  We have 90 watt led lights that shine more brightly then the 250 watt alternative, and they cast nicer shadows, leaving a more pleasant, twilight-on-a-hot-summer-day feel to them.

If our purchasing department can cut a good enough deal for these LED lights, we can upgrade our lights, perhaps slowly over time, and that represents spending money now to cut recurring costs later.

Note in this example it costs extra labour to install these new lights. Here we can discuss two general principles:

1. That increasing business spending increases the REAL (not necessarily the nominal) demand for labour.

2. That if you can get unticketed, that is to say unqualified, people to safely do the extra work, that demand for labor will lead to higher incomes at the bottom end. But if you are forced to get formally qualified people to drive the cherry-picker, and install the lights, then the extra demand doesn’t help the people at the bottom of the heap all that much.

We are only using the light upgrade as an example. But the reality is that your people will have all sorts of possibilities open to them to improve the cost-effectiveness of their operations. However if the government is hitting them with a company tax, they will have less revenues to be able to put these schemes into effect. Less motivation too. Since they will be punished for their successful implementation.

How about debt? Cannot the use of debt-money increase the funds through which the company can improve its cost-effectiveness? For the individual company yes. But if we are talking fractional reserve; no this is not possible. Since the ponzie money doesn’t add to the available capital goods the net result would be cost-blowouts in capital goods purchases. But worse than that, the funds will tend to be employed in other ways. For example in schemes to get hold of capital gains. Or in excess consumption brought on by what is known as a “wealth delusion”.  So as a proportion of the resources available, fractional reserve can only reduce the amount of those resources being spent now to reduce recurring costs later.

How about increased debt based on authentic savings. Not debt ponzied up through fractional reserve? Yes the firms can borrow these funds and then spend them, to reduce future recurring costs, and so be able to produce greater cost-effectiveness each quarter. But unlike with the fractional reserve example, this trick can work for the nation, taken as an whole.

So here we see why it is so important to REDUCE C AND G. Consumer spending and government spending. That way more is left for GROSS INVESTMENT.  Gross investment includes the sort of spending that we are describing here.  But its more of a real and objective figure than net investment which, in light of funny-money, is a bit of an accounting fiction.

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Now can you see why it is that these 65 million dollar payouts are so harmful? About 62-64 million of that, could have gone into business spending. Spending money now to cut recurring costs later.  When we have these fractional reserve banking crunches, we could end the unemployment really quickly, if we could get wages to drop low enough, in order for the budget for this sort of spending to be restored.  But its pretty poor form to be talking about this too much when other funds, that could lead to recovery, are being ruthlessly looted by the higher reaches of the bigshot aristocracy. Some things can be quite true in economic science, but somewhat in poor tastes to emphasize, in a one-sided kind of way.

On the other hand its also poor form to deny that stagnating or falling wages, cannot increase employment, when total spending is rising. On this score the Howard governments “workchoices” was a success which lead to falling unemployment, even under tight monetary conditions. Whereas the stimulus package was a total and proven failure, leading to thousands been thrown out of work, even as monetary policy went from contractionary to expansionary.

We have to get beyond this sort of “which side are you on” type of thinking, when it comes to economic science.

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Consider in this context the effect of a two-thirds, one-sided jubilee? The jubilee would also leave more funds to spend now to cut recurring costs later.  The resources found via revenues raised by the selling off of bank assets. On the theory that the banks are bloated, this would also be a source of real resources, for improved productivity. I’d say that such a scheme was more than justified in the United States, just for example.

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So here we have the key metric that needs protecting and improving when we are trying to make radical change. If we make radical change while improving this metric, our luck, or at least the luck of the Australian people, is not likely to run out. But if we act irresponsibly, like Wayne Swan, Nick Gruen and other lunatics, and take measures that actually reduce business spending as a proportion of total spending, then we will end up doing grave harm.

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So how do we increase the proportion of  GROSS INVESTMENT/GDR?

Increasing savings, increasing the proportion of revenues retained in business. So we can make interest earnings tax free up to a threshold. We can of course get rid of the company tax on retained earnings. We see here that there is no great need at all to get rid of taxes on dividends. You see dividends are not profits retained in the business. So there is no dire need at all to make them tax free. Rather they ought to be taxed at the individuals income tax rate.

Another thing we can do is outlaw borrowing from any government entity. Federal, State and Local.  We can run big surpluses at every level of government.

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In the first few years of the anti-crony taxes we would see a rush for our biggest firms, to break themselves up into smaller legal entities. It could end up a real mess and a bit of an artificial undertaking. So after a few years grace we ought to have it that only individuals ought to be able to own shares of a company. Artificial persons ought to have no such privileges.

I would have two exemptions for this at the moment. We don’t have a history of good sound money. So for the moment we would need to exempt hedge funds and superannuation funds.  I would also exempt stand-alone management consulting firms. I would let such firms have the capacity to own shares and here is why:

In bringing this cronyism to an end we want the directors to be unpaid. And we would want them to be the first five top shareholders in the company, or if one of those five opted out then the sixth might volunteer. It would be better yet if it was some formula that was to do with the most skin invested in the company. But since you’d have to have clear laws about it, the first five largest sharedholders would have to be good enough.

The directors, under these proposed changes, would not be being selected on the basis of their alleged experience any more. The reality is that they aren’t been chosen on that basis even now. Its a rort now, and directors are chosen on the basis of their ability to shore up the rorters.  So we will continue seeing idiots like Ken Henry, politicians wives, people of great legal experience, all sorts of unproductive hangers-on, being chosen as directors, to be paid a great deal of money, to do fuck all, just to keep this rort going.

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In any case it is possible that a lot of directors could be inexperienced under the proposed changes. That ought not matter. We want them both motivated and with access to good advice. Here is where I would think an exemption for management consultants could be handy. We want the management consultants also to be invested in the company.  The anti-crony procedure consists of the directors, not being paid themselves. But being able to use the earnings of their company to hire management consultants.

This is a strategic move in a full-blown war, to wrench power off the hired help, and bring that power back to the interests of the shareholders.  You want the directors to be slashing the salaries of the bigshots, and directing the funds towards improving operations. If the shares are undervalued, we would want the directors to make sure the company is buying back some of those shares. You don’t want these funds going into huge salaries. Least of all do you want the directors committing the ultimate treason, and paying the bigshots in stock options.

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We were talking about some bludger who looks like he’s about to run away with 65 million dollars of loot.  Apparently a lot of this heist will be coming from stock options. Its a sure sign that the hired help have taken over the estate when directors, all over Australia, are granting their managers all these stock options. These are vehicles totally poisonous to shareholder value.

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Responses

  1. I got referred by an australian stock exchange website. But it was a bit of a cheat, since most of my article was a straight cut and paste.

    http://www.australianstockexchangeshareprices.com/australia-stock-exchange/australian-stock-exchange/shock-an-important-scoop-in-%E2%80%9Cthe-australian%E2%80%9D-business-pages-%C2%AB-a.html

  2. Good Henry Ergas article today. Some economists tried to argue that the science didn’t matter, since

    1. we were going to have CO2 abatement in any case,

    2. and they figured that the carbon tax was cheaper then spending money on abatement and

    3. Investors were holding off because without the carbon tax, they had no certainty.

    As it turns out the science really does matter. Since the implications of taxing a real negative externality, as opposed to a make-believe one based on lies are very different. The mooted adoption of the carbon tax has not lead to an unraveling of costly plans to spend money on horribly flawed attempts at abatement. And what Henry has pointed out today is that the investors cannot have any certainty. Since the science is lies (I’m saying this not Henry) we can have no assurance that the rest of the world follows our mindless and idiotic lead. So investors are left with uncertainty because they have every reason to believe that the carbon tax will be dismantled. In fact the person who has given investors more certainty then most is Tony. Because he has sworn a blood oath to dismantle this liars tax. And given the polls at the moment, that could lead to the resumption of investment in coal-electricity upgrades before its too late.

  3. you beauty

    http://www.abc.net.au/news/2011-10-21/endangered-birds-foul-mine-plan/3591660?section=business

  4. Its hardly likely that they’ll end up stopping the coal mining on that account. I’m of course at two minds about it. I would have thought you’d simply pay some fee, to get the birds resettled and some help with keeping the species afloat. But apart from the bad way of going about things, I’m actually a little bit happy that this may mean effectively setting aside some of our resources for a bit, to be held in reserve. Rather than just shipping it all off to China and the taxeaters using the royalties to borrow more and set up more bureaucracies.

    • NATURALLY IF I THOUGHT THAT OUR POLICY SETTINGS WERE OPTIMAL, AND WITH THORIUM NUCLEAR FISSION, AND TESLA TOWERS GOING AHEAD I WOULDN’T TAKE THIS POINT OF VIEW. BUT THE MARGINAL COAL THAT THIS WOULD BRING WOULD SCARECLY RELIABLY GO INTO AUSTRALIAN REINDUSTRIALISATION. RATHER THE COAL WILL LEAD TO MORE EXPORTS TO CHINA AND MORE MONEY WASTED AT THE STATE LEVEL. SO ITS ACTUALLY QUITE A RELIEF TO SEE THAT SOME OF OUR RESOURCES MAY BE HELD IN RESERVE, WHEN WE DON’T HAVE SANE POLICY.

  5. At the moment it appears that foreign coal-miners can mine above the protests of farmers who actually own the land. Well thats far from okay. I heard some of these laws went back to the emergency measures of world war I. I’m not exactly clear on these matters.

  6. Catallaxy’s advice to Nauruans with a time machine:

    You did everything right the first time. Go back and do it all again.

  7. “Nauru’s economic viability has historically rested on its phosphate reserves. Phosphate — in actuality a resource derived from a 1,000-year cycle of bird droppings—has been mined on the island since 1906. In the 20th century, the small Pacific nation generated healthy revenues from this lucrative—but finite—resource.

    The phosphate supply has virtually all been exhausted in recent years and as such, the future of the people of Nauru is uncertain, and the challenge for the country’s policy makers will be to determine a path of continued economic prosperity, without the benefits of this resource.”

    But just do everything you did over again. Because our crude economic models say you oughta … Here we have the level of sophistication of the Catallaxy crowd when it comes to resource economics.

  8. The problem is really that people like Sinclair, Jason, Kirchner, Cambria and the others are fundamentally quislings. Imagine Jason accusing me of being anti-development when its this crowd, that, by their own admission want us to lose all our manufacturing. So he wants us to lose our manufacturing, sell all our mines, lose all the shares from our mining companies, and go into debt.

    How do you develop from there? They won’t say. They will ban you from Catallaxy rather than attempt to answer the question. They would hate nothing more for our country to develop. Rather they are determined to turn us into Nauru. As all their policy advocacy attests to.

  9. Mr B

    You are so spot on. Sinclair just banned me for calling him out as a Quisling.

    Actually to be precise I called Kates a “lying troll”. So Sinclair banned me.

    Someone joked that my banning proved that the Shadow Government is controlling things. It’s actually true; whoever said that just doesn’t understand how the Shadow Government operates.

    The truth is that Sinclair has never seen an “economist” or a “scientist” he doesn’t admire. Sometimes he pretends to disagree with them but deep down he loves them.

    Sinclair IS the Shadow Government.

    Kates is an even more wretched figure. Davidson is a bankster-wannabe, while Kates just wants to be Sinclair which makes him a bankster-wannabe-wannabe.

    So anyway the echo chamber that is Catallaxy will roll merrily on, with no one of the calibre of me or yourself to call out the stooges and crony-capitalists.

  10. Excellent comments, Graeme.

    Environmental protection laws are really weak as piss and always have been. All ecological histories of this continent demonstrate this in practice.

    But to the extent they make us pause and consider the impacts of our economic decisions on such precious things as biodiversity and all that entails, then that is good and important.

    Bird species are very vulnerable to habitat destruction and the potential for mining in Australia is pretty much infinite as we are now seeing with coal gas prospecting plans.

    It’s not rocket science. Birds Are Us.

  11. The best thing I got from my otherwise god awful Catholic girls’ school education was a knowledge and love of poetry from primary level.

    Dorothea Mackellar aside (of “I Love a Sunburnt Country” fame) this is probably the most known and loved Australian poem. And unsurprisingly it is about birds. It helps for me too that I have heard bellbirds in the rainforests of southern Qld and northern NSW since before I could walk and I walk them every chance I get today partly to hear them again in their best habitat.

    Bellbirds

    By channels of coolness the echoes are calling,
    And down the dim gorges I hear the creek falling:
    It lives in the mountain where moss and the sedges
    Touch with their beauty the banks and the ledges.
    Through breaks of the cedar and sycamore bowers
    Struggles the light that is love to the flowers;
    And, softer than slumber, and sweeter than singing,
    The notes of the bell-birds are running and ringing.

    The silver-voiced bell birds, the darlings of daytime!
    They sing in September their songs of the May-time;
    When shadows wax strong, and the thunder bolts hurtle,
    They hide with their fear in the leaves of the myrtle;
    When rain and the sunbeams shine mingled together,
    They start up like fairies that follow fair weather;
    And straightway the hues of their feathers unfolden
    Are the green and the purple, the blue and the golden.

    October, the maiden of bright yellow tresses,
    Loiters for love in these cool wildernesses;
    Loiters, knee-deep, in the grasses, to listen,
    Where dripping rocks gleam and the leafy pools glisten:
    Then is the time when the water-moons splendid
    Break with their gold, and are scattered or blended
    Over the creeks, till the woodlands have warning
    Of songs of the bell-bird and wings of the Morning.

    Welcome as waters unkissed by the summers
    Are the voices of bell-birds to the thirsty far-comers.
    When fiery December sets foot in the forest,
    And the need of the wayfarer presses the sorest,
    Pent in the ridges for ever and ever
    The bell-birds direct him to spring and to river,
    With ring and with ripple, like runnels who torrents
    Are toned by the pebbles and the leaves in the currents.

    Often I sit, looking back to a childhood,
    Mixt with the sights and the sounds of the wildwood,
    Longing for power and the sweetness to fashion,
    Lyrics with beats like the heart-beats of Passion; –
    Songs interwoven of lights and of laughters
    Borrowed from bell-birds in far forest-rafters;
    So I might keep in the city and alleys
    The beauty and strength of the deep mountain valleys:
    Charming to slumber the pain of my losses
    With glimpses of creeks and a vision of mosses.

    Henry Kendall, 1869, The Great Dividing Range, Australia

  12. Another favourite, not learnt at school alas.

    Ode To Bird Watching

    Now
    Let’s look for birds!
    The tall iron branches
    in the forest,
    The dense
    fertility on the ground.
    The world
    is wet.
    A dewdrop or raindrop
    shines,
    a diminutive star
    among the leaves.
    The morning time
    mother earth
    is cool.
    The air
    is like a river
    which shakes
    the silence.
    It smells of rosemary,
    of space
    and roots.
    Overhead,
    a crazy song.
    It’s a bird.
    How
    out of its throat
    smaller than a finger
    can there fall the waters
    of its song?
    Luminous ease!
    Invisible
    power
    torrent
    of music
    in the leaves.
    Sacred conversations!
    Clean and fresh washed
    is this
    day resounding
    like a green dulcimer.
    I bury
    my shoes
    in the mud,
    jump over rivulets.
    A thorn
    bites me and a gust
    of air like a crystal
    wave
    splits up inside my chest.
    Where
    are the birds?
    Maybe it was
    that
    rustling in the foliage
    or that fleeting pellet
    of brown velvet
    or that displaced
    perfume? That
    leaf that let loose cinnamon smell
    – was that a bird? That dust
    from an irritated magnolia
    or that fruit
    which fell with a thump –
    was that a flight?
    Oh, invisible little
    critters
    birds of the devil
    with their ringing
    with their useless feathers.
    I only want
    to caress them,
    to see them resplendent.
    I don’t want
    to see under glass
    the embalmed lightning.
    I want to see them living.
    I want to touch their gloves
    of real hide,
    which they never forget in
    the branches
    and to converse with
    them
    sitting on my shoulders
    although they may leave
    me like certain statues
    undeservedly whitewashed.
    Impossible.
    You can’t touch them.
    You can hear them
    like a heavenly
    rustle or movement.
    They converse
    with precision.
    They repeat
    their observations.
    They brag
    of how much they do.
    They comment
    on everything that exists.
    They learn
    certain sciences
    like hydrography.
    and by a sure science
    they know
    where there are harvests
    of grain.

    – Pablo Neruda

  13. American poet e.e. cummings summed it up in his plain, inimitable way:

    may my heart always be open to little
    birds who are the secrets of living
    what ever they sing is better than to know
    and if men should not hear them
    men are old

  14. Yeah I just figure it was Cambria gloating about getting Tillman blocked.

  15. Charles Fort was writing about problems in science around a century ago. I had some long-standing suspicions, but essentially I didn’t have an idea of what a mess the world of science was in until 2005 or so. I thought it was just mainstream economics that was so terribly hopeless. Now in 2011 the state of science is so terrible that your average fool can be taught about force, mass and acceleration, but not see anything suspicious in the way the trade towers fell.

    “Overview and Fort’s thesis

    The title of the book referred to what he termed the “damned” data – data which had been damned, or excluded, by modern science because of its not conforming to accepted guidelines. The way Fort sees it, mainstream scientists are trend followers who believe in what is accepted and popular, and never really look for a truth that may be contrary to what they believe. He also compares the close-mindedness of many scientists to that of religious fundamentalists, implying that the supposed “battle” between science and religion is just a smokescreen for the fact that, in his view, science is, in essence, simply a de facto religion…..”

    Of course matters have to be a lot worse then when Charles Fort was writing. Any true scientists are now hidden amongst a bunch of frauds and nitwits, who have no idea at all as to what constitutes the scientific method.

  16. I was just thinking about the Catallaxy obsession against Australian development. How they want to turn us into post-birdshit Nauru. How they keep confusing our crony funny-money setup with a perfectly balanced capitalist setup.

    Well these dummies didn’t get the Monsanto problem either. So fucking dumb. Here you have old-time seeds which can regenerate themselves a thousand to one each season, and here you have the patent-crony-based seeds, that may be superior any one year, but that set us up for an international catastrophe.

    And this is too much for Catallaxy to understand!!!!!!! You cannot find a single one of these morons that will show the slightest sign that they understand the problem???? What can you say about people this moronic, and anti-social?

  17. Alan Jones has been pointing out the dangers of coal seam gas exploration, and coal mining, from prime agricultural land …. to the national press club. But its not really the dangers of coal seam gas itself. Coal seam gas is a particularly cool development, at least potentially.

    Really the problem is the uselessness of our economists. Can they understand that its not okay for taxeaters to be granting leases over huge amounts of territory THAT THEY DO NOT OWN in such a way as to favor these bigshots?

    Can Sinclair comprehend such a thing? Can Jason Soon get his head around such a matter? No I don’t think so. Its the taxeaters attempting to wet their beak at every stage of the process, that leads them, in ungodly haste, to team up with huge companies to cut these deals. Always the deals are biased in favor of the political patronage class of businesses. But you won’t get our economists blowing the whistle on this matter. They think we should lose our farming, and all the coal along with the farming.

    See how things would be if the government were only wetting its beak at a single stage of the process. Only insofar as royalties were concerned. If royalties were at the right level, then the businesses would move a lot slower, one farmer at a time, trying to get at the coal seam gas for sure, but without too much disturbing the farming activities above the ground. But instead we have the current mess. And the usual combination of the taxeaters, and the bigshots to blame for it, going forward in an environment of economist idiocy and obliviousness.

  18. Just think of the ungodly haste that these leases lead to? Imagine that? You’ve signed a lease, and you have to pay up, whether you go about exploiting the territory, slowly or quickly. What utter insanity. Contrast that to no lease fees, no company tax, perhaps not even any income tax up to 200 000 a year for your workers? But only royalties when you bring the gear to earth and nothing else.

    So a rational charging system, based on elimination of the conflict of interest, changes everything. All the concerns about coal seam gas can be dealt with and sorted, but not under a system which destroys farmers property rights, and produces a mad rush.

  19. The international banker crime wave rolls on with that bitch Merkel and that evil tawdry little frog, Sarkozy, fronting for their masters and doing the exact opposite of what they are supposed to be doing.

    Its a debt crisis. The debt is owed (not morally, but legally) to the banks. If it is indeed a crisis then the debts need to be lower. Ergo the banks need to be DECAPITALISED. But instead every time this evil anti-democratic filth gets together they go and do the opposite, therefore making the problem worse.

    Note how this could not now be happening were there no Eurozone, no Euro and no central banks. The central bank is the ultimate enabler to this international criminal enterprise.

    “During their meeting on Saturday, EU finance ministers heard from the head of the European Banking Authority, who told them that if EU banks were to raise their core capital ratios to 9 percent, and if the bad government bonds on their books were accounted for at current prices, then between 100 and 110 billion euros ($138.9 and $152.8 billion) was needed to shore up the banking system.”

    There is absolutely no rhyme nor reason to this. Its just the banks getting their gimps to steal for them, and they will turn around and give campaign contributions, or give massive contributions to their opponents if the this rolling thunder of criminal activity does not continue. As of necessity, debt forgiveness would bring down the core capital ratios of the banks. Maybe down to 2 or 3% so they were running without much margin for error. Where the government could help is in providing much more cash and a far higher reserve asset ratio. The banks could even go into negative capital, if there was a 100% backing, and a lot of cash out there. Another helpful matter would be good tax loopholes for new entrants into banking and particularly for the purpose of buying hard assets, like buildings and branches off the old banks, who have all manifestly failed.

    So its DECAPITALIZING of the banks we are after for fucksakes. DECAPITALIZING. Re-liquifying the money supply. But decapitilizing the banks.

    These fucking meetings that the Germans and Frogs keep going in for are only there to plan one heist rolling into another. The crisis cannot end this way, except that it has to be recognized, that the rest of the public could possibly work so very hard and save so very much that they overmatch the stealing rampage.

    Everyone with any intuition knows vaguely that they are being scammed. But the economists, monetary cranks, and bankers always step in to practice obscurantism, when it comes to explaining banking matters to them. House-niggers of every shape, also get into the act, because they have intuition to and must on some level know who their real masters are and which way the wind is blowing.

  20. This is actually a very important thread (and also Philomena is in good form) and for that minority out there, who have the intelligence to have some sort of residual faith in my prescriptions for a better world ….. my urging is for you to read the thread-starter many times. Read it over and over until you see what I’m driving at.

    I’m going to formalize my position as SMALL-GOVERNMENT EGALITARIANISM. As with all short-form descriptions, its a big over-simplification. But I want to get matters to the stage where the only people that we need to take seriously are people who attest to being advocates of some form of small-government-EGALITARIANISM.

    I think under the circumstances of the next 100 years this is the only moral, serious, and worthwhile advocacy to be spending time on.

  21. Well it‘s pretty obvious cunt, that you‘ll never get a million dollar payout for being an incompetent psychopathic dick. Maybe they‘ll give you some copper wire. You know to replace the wire you stole from your own house. Fuckwit. Idiot.

  22. Right.

    Well I want my copper wire back for sure. I went out the first time they tried to burn my house down, and after some sleuthing I found the kids involved and they paid the price.

    Then the second time when my tenant, burnt my house down I went back there, and I appraised the situation, talked to the Police and its at least possible that I sewed some sort of seed in their minds. In the end a fellow is doing three years in the big house for burning my SMALL house down so don’t try it on. Because it just isn’t funny. The whole incident and the insurance fiasco thereafter really hurt my girl, and in a delayed fashion damaged my marriage, and then my family taken as a whole.

    Its not a simple of matter of some asshole doing the damage and then we all claim on insurance. Actually that WAS pretty much the matter in the movie “Do The Right Thing” but thats a special case.

    The property is an extension of our arms and our legs. And to do damage to a humble couples property is to hurt them right to their very core.

    So we’ve caught them all and they are all paying the price ………. except we haven’t and they aren’t……….

    “Maybe they‘ll give you some copper wire. You know to replace the wire you stole from your own house.”

    So we caught them all but we didn’t. We caught them all but I lied. I fucking want to MURDER those fuckers that stole my copper. But thats what I want. That is not what I am seeking. Because I’m a RIGHTEOUS white man and so I’d be quite happy if the copper-stealers redeemed themselves by way of seeking (with great sincerity and motivation) to make it up to me ……. or failing that I would see their BAD KARMA catch up to them.

    • Just like you, talk the big talk and then go racing off like a fat whiney girl to the cops. I expect you‘ll be dressing up as QEII this weekend? Freak.

      • Ha ha. I think you are being a bit unreasonable here. Once the vandalism on a house starts it doesn’t stop until there is rubble. So you have to establish a vengeful presence if you owe nearly a quarter of a million dollars on an asset that these people can trash.

        Secondly the fellow doing three years jail, burnt down my house, when there were three adults and at least three young children in the house. TWO OF THEM HIS OWN. So the judge and the rest of us would have to consider that the motive was so malicious as to perhaps want to murder his own kids. It was 4.00 a.m in the morning. Jade is running out of the house with the baby and has to run back in again to get the toddler. And here is this asshole standing in front of the house and he didn’t even so much as lift a finger to run in and save his other child, or the third child that he had been a virtual stepfather to.

        Jade told me this. Not over the phone but right to my face.

  23. How do you know It wasn’t the NO BABY TALK YOU FUCKING MORON. YOU ACTUALLY THINK BABY TALK CHANGES REALITY DON’T YOU? YES YOU DO YOU FUCKING USELESS CUNT. SO YOU HAVEN’T SEEN THE THREE BUILDINGS COME DOWN DUE TO TWO PLANES ALLEGEDLY. I’D JUST BEAT YOU UP IF I SAW YOU. YOU ARE JUST SO STUPID YOU DON’T DESERVE TO LIVE.

    • That’s wonderful, I wonder what it would worth under Birdian economic conditions.

      • Maybe a little bit more at first thanks to exploding economic conditions. But slowly it would be worth less and less over time as the investment in land substitutes really took off. The Bird economic policy mix leads to cheaper and cheaper land over time.

      • What are “land substitutes”?

  24. I don’t think I’m on their radar except to the extent that some keywords can lead to computer problems. But that would be an automated affair at this stage, for the most part. If it was them, they would have had to get this clown outside my house two hours prior to where he was to have driven past to go to work. Which means the whole thing would have to have been done on three days notice, since it happened on the Tuesday and Jade had booted him out of the house that Friday prior……..

    …..(((((((( What is notable about shadow government plotting is that it shows signs of working years, if not decades in advance. For example it was the American shadow governments most well-known crime family that built the twin towers in the first place. They built it in such a way, that once you get in the lift system, you have total privacy and can start planting bombs and mini-missiles at leisure, taking as long as you like……..)))))

    ……. It was an extraordinarily cold night that it happened. It was the Tuesday after the Monday holiday for Queens birthday two years ago. It was a notably freezing morning, and damp with it. So I knew it couldn’t be about some homeless person sleeping under the house and lighting a cigarette.

  25. The banana republic known as the USSA now has 30 drones in the air over the USA, in order to desensitize the public to their presence. So at some later date, when they feel the time is right, the shadow government can assassinate anyone that displeases them. Of course Catallaxians will pretend that this is not happening. Because its wall to wall idiocy over there.

    • 30 drones over the area of the US works out at 1 drone per 300,000 square kilometres, I doubt anyone is going to notice that too much.

      • You idiot. It means that one day, not too far from now, they will be able to assassinate anyone they want, which means they will be able to intimidate totally, all 300 million Americans. This is just one part of a comprehensive program for Stalinist control. Good fucking lord you are a moron mate. Of course you won’t be intimidated by such a system, because you are a belly-crawler who never had a thought of your own in your life.

      • Of course they will. Just get it through you thick head. They have 30 in the air NOW. If they aren’t for murder right now they are for intimidation and usurpation AND OBVIOUSLY SO.

        And I don’t expect to be fucking contradicted on this most obvious matter.

  26. Land substitutes are high-rise, basements, multiple basements, high-rise buildings in general (that are sufficiently robust under potential disaster), the M5 tunnel, tunnels in general, greenhouses and other capital goods that can produce massively higher agricultural production, hydroponics generally, aeroponics, aquaculture …. particularly aquaculture that that leaves both the surface of the water, and the ocean bed alone, high-rise buildings that straddle the road such that big trucks and busses can still use that road even though there is massive volumes of living and working space above those roads …….

    And so forth.

  27. I may have to come clean with the girl about the other women in my life. One of them being this one:

  28. RIP Nev Kennard
    Another victim of cancer and a principled libertarian businessman

    http://jennifermarohasy.com/2012/06/eulogy-neville-kennard-had-unconventional-wisdom/

    • Another victim of the shadow government money-making cancer racket. One of my wifes friends just died as well. I had been meaning to ring her. This carnage, along with the massive social pressure against helping your friends, has to stop. Its one of the worst scandals of the twentieth century.

      • WELL THE REAL PROBLEM WAS THAT MY WIFE DIDN’T HAVE HER NUMBER, AND WOULD HAVE HAD TO RING AROUND TO GET IT. CULTURALLY IT IS THOUGH BETTER TO MIND YOUR OWN BUSINESS. BUT ITS TRUE I OUGHT TO HAVE PERSISTED A BIT.

      • So she wasn’t really a friend of your wife’s and certainly not a friend of yours. Basically someone that you knew of died of cancer.

        And what was this “massive social pressure” against helping a friend (in reality a virtual stranger) that you found so overwhelming that you ended up doing nothing at all?

        You are so full of shit. You talk a demented talk but when it comes to “walking the walk” ou show your true colours.

      • Try it some time. Its an absolute social faux pas to try and help anyone with cancer. I tried it with mum and the reaction of some family members was pretty strong. Yeah she was basically a stranger to me. Nonetheless her husband (a titled British fellow) had invited me to go stay at his farm with me and her. And I took a liking to her. But its true I only briefly met her.

        My Aunty’s sister talked to my mother on the phone twice a week for 50 years. I found out later that her sister made and sold colloidal silver. No-one once suggested to mum to use colloidal silver. Its an incredibly strong social prohibition that the American medical maffia have produced.

  29. Mr B

    I have always wondered about the meaning behind Spector’s remixing of Paul II in the Long and Winding Road. Your recent commentary is Insightful. Thank you.

  30. did you read the obit, Graeme?

    you would’ve loved Kennard, the dude was a genuine capitalist and he promoted Austrian economics and agreed with you on fractional reserve

    • Its a shame he didn’t find out about the cancer scam.

  31. Its depressing watching Soon and Cambria talking about Science Spying. Its like when they read the word “Spy” they start thinking about telescopes and periscopes:

    “So even when the Chinese spy, it’s mostly about how to make more $$$, not how to detonate more bombs?

    I don’t think we need to be worried here”

    Of course we need to be worried. Spying is about the control of human populations. Its about defacto slavery. What we are talking about is a systematic attack on our sovereignty.

  32. There goes Cambria again. Good Lord he is an idiot. Terminally ignorant:

    “I did say the US has more to worry about. However there isn’t much here that is so secret it’s game changing.

    A lot of these Chinese spy idiots are basically here when 95% of the collection could be done by reading the web.”

  33. Think of the idiocy of Cambria here. His thinking goes like this? Why go everywhere, taking pictures, renting rooms and using powerful telescopes …. why break in to rooms and set up listening devices …. when you can stay in Beijing and get all the information on your computer.

    Its as a said. He reads the word spy and he sees telescopes with an eyeball showing at the fat end. He’s fucking childish is what it is.


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