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Archive for the ‘Open Source Economics And politics’ Category

British Bank Bailout: Why It Will Fail, Offshore Havens, Rich Stealing Everything – How To Solve The Credit Crunch, And Why You Must Wake Up.

February 26th, 2009 No comments

The bank bail outs will fail for a simple reason. Their intention is to get lending flowing again. Unfortunately markets have inherent innefficiencies and one of them is the corporation. The corporation is selfish. The bail out money being used by stronger banks is being used to consolidate and expand portfolio’s whilst offloading toxic assets to the government – and ultimately you. Meanwhile neither you nor your employer are finding easier access to money. Why? Because you are a bad credit risk. The bank has been saved but you are still stuffed.

The efficient route to solve this issue would have involved two steps:

STEP 1) For the last twenty five years huge sums of wealth have moved beyond any scrutiny. The wealth of the wealthy is underestimated and the discrepancy with the poor understated. Tax havens such as Panama – where it is illegal to ask who owns a company – are used by the British Crown and all other super wealthy people and organisations. This tax avoidance has resulted in a redistribution of wealth from the rich to the poor and from the government to the corporation. This is the only reason the differential has worsened constantly and considerably and why governments are bust.

This redistribution has to be reversed. All offshore havens should be subjected to international law to reveal the ultimate owners of all assets immediately. After collating the account data, identified persons with an excess of $10 million liquid assets or greater should be subjected to a progressive taxation of liquid assets starting at 50% and rising to 99% at $100 million. This would raise a one off tax levy in the trillions of dollars. Anyone caught avoiding or aiding persons in avoiding the incorporation of their assets and income into the tax base in any way must get a mandatory 10 year gaol sentence with no luxury.

STEP 2) Redistributing this revenue by writing down all debt on a progressive basis of individuals and businesses would achieve:

a) Allowing people to stay in their homes, feel secure and participate in the economy.

b) Revalue the toxic securities immediately – even the most toxic would be almost fully paid down by the debt write off payments and restored to 100% value.

c) Restore banking confidence, support underlying asset markets including bonds, stocks and commodities.

d) Facilitate banks to lend to business in moderation.

e) Keep small, medium and large businesses in operation whilst allowing a slow re-structuring of innefficient business over time.

f) Not leave the government – and ultimately you – with huge debts.

g) Not increase the money supply leading to inflationary pressures and bubble effects.

This will not happen because the actual plan of the people making the decisions leading to government action is to enrich the banks, collapse the middle classes, tread down the poor and consolidate global power over energy, communications, food and information – through the consolidated banks.

Such an integration of industry and government is called national socialism, or fascism. It is a dangerous beast. Especially when the public government is merely a puppet of the real government, which is the case unless you live in one of a very few places on Earth.

The way out is to take sovereignty over your life. Learn to meditate, centre yourself, then take right action. Reduce spending, pay debts, then whilst stocks remain on shelves buy those things you can grow, eat, barter or use to survive and defend yourslef if the system is deliberately collapsed in order to fully wrench all semblance of freedom from your life.

Liberty will prevail and tyrrany will fall because they are few and we are multitude. Wake up.

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Mathematically Perfected Economics: Predicted World Monetary Collapse by 2010.

January 11th, 2009 No comments

From perfecteconomy.com:

But by simply calculating periodic interest as any bank statement must, by re-borrowing interest and principal to replenish the circulation — and even allowing for the accumulating sum of debt to be (usually) negligibly diminished by factors such as bankruptcy and consumption of usually little of our production in the course of exploitation — those models not only forecast the Reagan Administration’s tripling of previous national debt, but further projected ultimate world wide monetary failure at approximately 2010 AD.

Is this why the bankers needed to explode and implode the monetary supply and economy right now? At present the money supply is expanding still as Central Banks and Governments in thrall to the robber-bankers throw money at them and their failed institutions. Some are complicit in this massive Ponzi scheme of debt-based economics, others merely ignorant that they are fuelling the fires of the inevitable collapse of consumer-capitalism.

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Rational Vs Irrational Economics: “I don’t like reality”.

October 16th, 2008 No comments

Now what has this got to do with Buddhism? A lot actually. The rational economics viewpoint assumes people make rational thought out decisions based on their own calculated best interests.

Buddhism tells us that most of the time most people have no idea why they are doing what they are doing: Out of the boiling pot of their unconscious mind some thought bubbles float up into consciousness, the mind clings to them, makes a story around them and this leads to action. Modern psychological theories of cognitive dissonance agree and so does M. Scott Peck in his seminal work “The Road Less Travelled”. Actually he says 99% of people don’t know why they are doing what they are doing 99% of the time.

Buddhism tells us that people are conditioned by their upbringing, society, culture, language and experience into who they are and identify with a false identity, sense of self or “ego”, that consists of these false identifications or clinging.

Irrational economics tells us people are irrational in their decision making but that this irrationality is predictable. Buddhism agrees. This makes sense. We can predict irrational behaviour in around 99% of people most of the time according to M. Scott Peck and he’s a very well respected Psychiatrist and writer.

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Is the “death of capitalism” also the death of consumerism?

October 15th, 2008 No comments

A good article from Rob Horning at popmatters.com

It seems as though nothing was going to make us give up consumerism voluntarily—not global warming, not the recognition of the hedonic treadmill, not the tech crash, not the blight of hipsterism, not the forced nostalgia, not the hypermediation of every aspect of life, not anything. Now that we may have no choice but to abandon consumerism, it feels as though it’s too late—that there is no redemption in a forced choice, only misery.

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Bank Rescues: Capitalism Fails, Depression Coming.

October 15th, 2008 No comments

On July 26th 2007 I predicted the current state of global markets in this post.

There is a false idea in the market now that the worst may be over but I promise you it has just begun. The long term support levels for the Dow Jones Industrial Average are in the range of 2,500 – 4,500 points. We are very likely to see the Dow Jones under 7,500 by Christmas – if not under 5,000. This may happen much more quickly than that – the ostriches have mostly lifted their heads from under the stand and are looking around them wondering what to do. Most seem to quickly turn into lemmings and jump off the cliff when they take in the landscape.

Every time the market rises a little the sellers will arrive.

The problems with the economy are structural, deep-rooted and will not be solved by each country nationalising it’s banking industry or part thereof. Though this surely marks Capitalisms’ greatest failure point yet it merely delays the inevitable in terms of economic downturn by a matter of days or weeks.

The current state of the markets recognises that – the gains made since the weekend are quickly being lost as wise investors are continuing to sell, whilst the sheep who think “it can’t get worse” pour good money after bad into the dying markets.

There will be significant global economic hardship over the coming two years.

Equities are still significantly overpriced in major markets, asset values having divorced from reality in 1992 or thereabouts and having never returned to an appropriate level.

What is an appropriate level? An ordinary family needs to be able to buy an ordinary house without being mortgaged to an impossible level. On this basis the UK and US housing markets are something like 50% overpriced.

The equity markets are going to yoyo for a while – but do not be in doubt – the trend will be strongly downwards, and for some time to come.

Super-Bank-Bail-Out-Rescue-Man will not do the job.

Super Bank Bail Out Man

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