Poverty the deledefs way

Just see the following there is a construct called relative poverty. And it’s “definition” is that those are poor which earn less than half of the average income.

So let’s see an example. Our world is simple we have 1/3 earning 1000 GE, 1/3 earning 2000 and GE 1/3 earning 3000 GE. So our average is 2000 GE and we do not have one “poor” soul.

Now the middle earners get 10 GE more so our average is now: 2003,33. And now we suddenly have 1/3 poor people. Nothing has really changed for the “less much earning parts” but still now they are considered poor. So if the average climbs for whatever reason especially if those above average earn just a cent or whatever more the poor parts raise.

Even more absurd. Imagine just one person with an earning of 6000 GE enters the scene. Suddenly there are “more” poor souls. In Germany we have absurd laws for people considered especially true. If they live divorced and the partner does not live in Germany they even get the right for a flight tickt to the other country. If you are a little above this poors and you can not afford to buy this ticket you have to stay home. The idea that this is this way does not feel “right” for most of the Germany but a few say it’s unfair to those regarded poor that they are not “unwilling” to work but just unlucky or whatever.

However the deledefs of course ride on thiis definition and take that as a permission to steal more from the not “poors”. If you can read german just type in “Armut in Deutschland” and then read the entries.

Having to think about an absolute limit on where poverty strikes, is of course a difficult undertaking. And So why bother? Just use the relative definiton and thinks turn out “brutally”. If the average income raises much more poors have to be “fed”. ….. That’s deledefs logic….

The reason vor poverty are mentioned on:
http://de.statista.com/statistik/daten/studie/182080/umfrage/meinung-zu-gesellschaftlichen-gruenden-fuer-armut/

The main reason found for 54% of the asked people is that the wages are too low.

Now this suggests an immediate answer from the deledefs the minimum wage. This means we open a new chapter in the never ending story of “How deledefs raise the poorness. Minimum wages suggest a demand for work that can not be fullfilled by the markets. And so people do start learning a certain job, just to recognise there is not “work” to be done any more. The jobs simply vanish and instead of raising wealth. We have more people unemployed, so either the tax or debt have to be increased and it all lend to a death spriral of even more unemployment. I do not know where the level is of a rate of unemployment which can be sustainable. But I doubt it’s m uch above 25%. And surely it must be well below 50%.

The problems of raising unemployment will yield an extension of bueraucrats jobs and this have to be paid by less and less productive corporation. We slide down the spiral faster and faster….
At the same time the industry is searching for skilled workers. I wonder why it is not possible for the somewhat 3 Millions jobless people here to get skilled. With minimum wages in every area the incentive to do so
will just vanish like snow in the sun……

If we see that their are less and less children nearly everywhere in developed countries we’ll find another problem that of higher unemployment and more payments to the elder generation. This gap just can be filled by immigration and that’s another very hot area, in which deledefs never ever got it right. I’m not very optimistic about the outcome. I expect that “real” poverty will raise it’s ugly had. This usually has meant war and starving in the past…..

I never will understand how people are able to think that more “regulation” will be the cure. The more the markets are hampered the worse the end effect for all will be. But they are trying this route over and over and over and over again…. I can not find another expression as “stupidity” for that….

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There's not much to add

to
http://mises.org/Community/blogs/morley/archive/2011/05/02/osama-39-s-death-changes-nothing.aspx

But does that really is the most urgent problem? Terrorism? Or isn’t it the ruthless money printing of the Fed?

Does the death of Osama means that the soldiers are called back or won’t the war just go on? Really how much threat can be put on a “normal american citizen”? How likley is it to die in an
terrorists attack and how likley to die just be “normal criminals”. The above mentioned link gets it right (IMHO) the fear will be raise, and well how could anyone think that fanatics will be stopped by the killing of one of their idols.

There are much more thing to fear, among is the bankrupt of such country as the US. So is there any reason to celebrate? I can not see it, another men was killed and tens of thousands will “follow”….

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Just a few things I found

Today. One of my sites I visit regularly is:
http://www.memeorandum.com/

Today I found this two entries:

Obama’s Medicare Appointee Has Accidental Encounter with Reality, Learns Nothing


and

http://www.nationalreview.com/articles/266028/discredited-mark-steyn

and there are at least to more entries about “sense” and “no sense” maybe one should write nonsense, but at least something funny is usually around nonsense.

The points made are the extreme prices for health care (and their raising) and well on the other hand the “debts”. And believe it or not markets are taken as “beeing” efficient will day where there is market there hardly is much inflation, but if there is state induced “social fairness” all hell breaks loose. And guess what. If anyone complains about the debts collected by government and not willing
to allow even more debts, than this one is a terrorist. You can see how far away these guys are from sanity. There is not excuse for such lies. It just shows the path we follow if we believe in
“more government” as a solution.

Fact ist government just life on the expenses of those producing wealth. And states are just there to “lower” wealth. They start with laws, bring in more an more bureaucrats and more and more regulation and more and more ineffician work. Which is just there to keep the bureaucrats busy and show to everyone how important those are. But in fact the bureaucrats live in a world of “no customer” they do not serve anyone but themselves and they influences is just destructive. But then in the TV shows some “bad” thing is shown and then the usual answer is we need more control. It would be simple to just have judges which would sentences those wrong-doers to pay for their wrong-doing. But that does not happen, theay get limits and caps and all this from bureaucrats. And there we go the more bureaucrats the more stupid “laws”. So we are circling upwards in spiral.

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Lybia and Syria

Well “nice” to see if two do the same it’s not the same.

Ghadaffi kills his population and all but a few come with planes and bombs.

Assad kills his population and it’s not even mentioned.

I wonder what will happen if the population will walk the streets in Germany and USA. Maybe in Germany we start another war for “freeing” the poor population?

One can not believe this. The most important thing yesterday has been some totally unimportant wedding but the killing of a few dozens or even hundreds. Who cares?

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Reputation of the Fed

Well I just can conclude it sinks faster than ever for me.

Now they want to stick to their program of printing money. And well if you have savings you got robbed day by day, monthy by month year by year. The inflation raises (just remember:
http://mises.org/Community/blogs/fdominicus/archive/2011/02/03/my-predictions.aspx. And more an more of them are getting real

We’re not yet in the common over 4% inflation rate, but just in a few areas. The politicians start blaming whomever for “unfairness”. Especially unfair are those more successfull ones. Subsedies are paid
but do not yield the proper cash-flow. And the large corporations do whatever they can to not pay taxes (I wished everyone could afford the tax specialists of this corporations). And so the government does not get any earnings and starts printing money. With the “circle of “money””. The government issues bonds, the feds buys this bonds and the new money is spend in anything having some worse. Inflation raises and so on.

I doubt that ever in history a failure of a world champion has happened in such short time. In just 3 years the USA turns from a free system in a government controlled nightmare. They overextend their means and are now paying dearly, but currently the deledefs lovers “gain”. And I’d not be suprised to see more of them buying land. I bet they are preparing for the after-crash. And then they will claim themselves to be the “true” americans. The question is are thieves the “true” americans or aren’t they?

Maybe not all is lost at least some states remember what value means. And maybe this will save them. We just have to wait and see what the bureaucrats in washington and everywhere will do….

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Oh yeah

That’s an awful message:

http://blogs.law.harvard.edu/philg/2011/04/27/biggest-u-s-economic-story-of-the-year-federal-government-v-boeing/

You can not produce where you want any longer? Or how else does one has to understand it.

Well one can see it the US is deledefs land of plenty….

Maybe it’s just an example on the how bad subsedie really are. I’m not sure, I can not see why the government should sink money in Boeing. But if they did and
Boeing just tooks the money well then I can understand the troubles. But it would be easy to fix. Just ask Boeing to pay back the subsedies….

However one might see it. It’s big business and big government and both usually are catastrophes in itself. Put them together and it’s fourth as worse…

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The three golden deledef rules

Translated from: http://fdominicus.blogspot.com/2011/04/das-mochte-ich-hier-festthalten.html

1) a politician never is guilty

2) if a politician is guilty 1) takes immediate precedence

3) if a politician is guilty an lying, it has to be blamed on the markets

Just have a look at a few entries on the mises log in the past few days:
http://blog.mises.org/16587/when-in-doubt-blame-the-speculators-%E2%80%93-again/
Just an example from Germany, The taxes on fuel are well beyond 70% IIRC they are even near 80%. Who get’s blamed the oil companies. Well they are responsible of 1/3 of the price but
with every cent more the deledefs get 0.7 cent more robbed cents. That’s the “truth” and no-one can deny it, but the deledefs do over and over again….

Keep that in mind and you have much easier times to understand, their actions.

I like it it subsumes everything nicely what’s happening in EU or US country. Strange enough one does not hear such garbage from Neu Zealand, or Australia. Well the Japanese are
similiar and the Chinese are well “different”. We know the lie (but how does not) but they are culitvating their own bubbled. I can not see a city without population as a good investement..
See e.g:
http://blog.mises.org/16436/the-inevitable-result-of-central-planning-chinas-ghost-cities-and-malls/

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War in Lybia

Well someone pointed me to:
http://econlog.econlib.org/archives/2011/04/applied_ignoran.html

That’s worth spreading and has to be considered.

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The US creditability

Well how interesting that the verdict of the rating agents still is on AAA for the US. They just have a few trillions debt and they “just” another 1.4 trillion during this year.
And still the blame the rating agents and call it a “politicial” decision. I wonder what does it mean? Is S&P a unknown party? Are the democrats and republicans not the only
parties everywhere else.

Are the owners the democrats or the republicans or what?

No it’s very easy the deledefs are fucking afraid. They know they are just playing on time and it seems there only desire is being pensioners if their own build card-house will collapse.
They fire out money as mad and never hardly anytime in history there was such a fiat-money flood. Just in and around the finances are devastated. And this was all done by the politicians of the both parties.

If AAA gots lost the debtors can not count on getting money for nothing (and the taxes for free). No they will have to offer higher interest. And this means it will get more expensive and still there is no plan for “paying” back the debts. Just the “plan” to reduce the amount of new debts. So we translate this kind of saving into our world.

Problem 1. The debt of a rate is measured against GDP so there is no GDP for use. That’s bad so we must calculate differently. I found this as “official” values for paying the debt. It’s 10% of the budget we need to use it for the “income” of our family so let us assume our debt are as official told 50 000 ME (money equivalents (read dollar)) . So we’d have to pay pay (we are not the government so we have “real” interest of let’s say 5%. BTW having this as interest rate would break the US.) So we’d have 2500 ME to pay for debs. So our budget is 2500 / 0.1 = 25 000 ME.

We are still lacking our GDP. So we need some help. Because the GDB is nearly exactly 100% of the debs we have GDP of 50000 ME. Great so we need new debts at or around 10% of it, that are 5000 ME.
Just let us assume this stays for “let’s say 3 years. Let’s compare it with how much it is for our budget. The the 5000 ME are 20% of our budget we had before taking the debt. So in reality we’d just have 20 000 ME at our disposal (- the interest which we must pay) . But we spend 25 000.

So in three years we’d have a debt of around 65 000 ME and have to pay 3250 ME interest /year. Now how much does our budget grow? This is hard to tell, but I have calculated with constant 5000 ME extra debts each year. And so our budget still is the same 25 000 three years ago we’d have to pay 2500 for the debt (the 10%) and three years later 3250 / 25000 = 13% of our budget. We’d have not paid bake one cent of our debt and we still are spending 25 000 ME (which is not possible because we can not spend the amount we pay for interest. So in fact we are taking new debts to pay old debts. And that means we have pay on interest of interest of our debt and we extended our whole debt around 30% !!!

If you can see you can stand that. Well you’re right. You can stand that for roughly 10 or so years, then you are fully broken. And well now see the US they are doing something similar for more than 10 years. And yet they still should have a rating of triple A? Hard to believe that something so obvious unsustainable should get a rating of “being” save….

You can see however how besides reality this kind of debt calculations are. We do not have any GDP which can help us, we can not tax away other. We just have our income as the “only” calculation base. I can not see and accept that this should be different for states. Just imagine the following all the pension payments are not covered in the budgets of today, although we know there will be some expenses in the future. In private you must save to have something, but the states do not do that. So the pension payments have to be beard from the current budgets, and you still have to pay for zillions of other things. There is nothing comparable in the private sector. (GM was broken by their pension plans BTW)

States should not be allowed to use GDP for calculations but their own budgets, and if they promised for pension payments this money has to be “saved”. If that is not possible no pension promises can be given an the money should be left to the people… They have to take care that they have enough for later. If you think how different the rate is comparing GDP and budget. Now let’s see what really is our income. We have a budget of 25 000. We have new debts of 5000 ME and 2500 ME interests payments. So that are 25000 – (5000 – 2500) = 17500 ME that’s your “earned” money.

And yes I have used official numbers, there are so many shadow budgets etc around that this may be just the tip of the iceberg…

I write “earned” because the earning of states are in fact robbed. You have to pay tax and you have no choice…..
With everyone else you pay what you ask for with governments you pay what you asked for and everything else also…..

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Very interesting to read

Here on the Mises blog:
http://mises.org/daily/5170/The-Myth-of-Japans-Lost-Decades

That is interesting and we can really build on it.
Let’s assume the production stays the same for one year. Let’s say it#s 100 PP (Product Pieces) now we just have the amount of 100 (money units) for paying this services.

Now the “stimulius should” start with more “money” . Well we increase the amount of money to 105. nothing will happen to PP. So we have 105 MU for 100 PP and so what happens to the +5 MU?
Well in the end the prices will have to rais to 1.05 MU/PP.

f

But in fact nothing more was produced. And still we’d an GDP growth of 5%. Which would imply that there are more goods. But it’s just an illusion. We have the same products just more money
so we did not get richer by any means. We could not have saved more nor could more be consumed.

I’m quite aware that the “illusion” of having more money makes a difference. If you think you have more money. You either consume more or of you are a producer you think about expanding your production. And here comes the base for the boom/bust. You invest in something under the impression that there is “really” more demand. But it’s not there really. And you investements will make you more poor.

So our problem always is to figure out if there really is more demand or just more money. I have though about it today and written down my ideas here:
http://fdominicus.blogspot.com/2011/04/welche-art-von-aufschwung-haben-wir.html
Sorrry it’s in German but I concluded from all the surrounding that we here in Germany see a boom driven mostly by thinking the demand is higher. It’s not fully clear because our car makers produce much more than before, but you have to see they had a sharp decline the former years. I’M not fully sure if we are on the same level of production as in 2008. But even if we’d have we do not know if all the cars really get sold.
So the above articles makes it very clear on how difficult this areas is. And it’s getting worse with every other non-market driven action like tax reductions or tax raises or new laws for social security etc.

Anyways the link gives us an idea. We can take e.g the car output as measure. Cars are real and so we’d have at least some better base. If we than see the raise in the in money valued growth, We can see if we really got “richer” by the means of more production or the “production of” money…. From this I think one can draw better conclusions as from any money valued growth alone…

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