Posts Tagged ‘numa’

The Real Problem In Europe

Thursday, October 27th, 2011

Dear Friends,

It seems to me that what makes the Greek sovereign debt problem, so problematic, is that no one is looking at what is really the problem. Let alone fixing it. The Elite in Europe only look to “solutions” that keep the ball rolling. They seek to “Shore up” the Greek finances and to “Reassure” the investing public that they have things “Well under control“. But no one is buying that tripe any longer. Like the buggy whip it has become redundant. Everyone knows in their hearts, what the problem is, but no one will face it.

A very good friend of mine once said “in the land of the blind, the one eyed man is king.” This situation is applicable to that saying. Economists all point in different directions; like blind men. They claim, “Revenues must be increased, no spending problem can be effectively addressed, unless you first increase revenue.” They chide, “They have to hit it hard with a giant fund in the trillions of Euros.” Some opine, “No that’s foolishness, Greece should be kicked out of the Euro zone so it can print it’s way out of debt.”

But no one says what the real problem is. Because it is too big to look at. Like the leviathan it is too scary to even consider. Great lengths are made to avoid even talking about it. Those who bring it up are labeled with the most horrible monikers. So no one wants to openly say, the problem is that the Greek government spends too much money. It sounds simple but it has deep ramifications to the body politic.

The Income tax and social welfare spending are the corner stones of welfare state capitalism. This has been the paradigm in Europe and the America’s since WWII. The welfare state was seen as a means to change the ratio of wealth or the gap between the rich and the poor. As we have seen empirically it does no such thing. It does lower the growth in GDP tremendously but has no effect on the “Gap.“ In fact, where it has been put into the most practice, it has produced the worst results. Greece is only one shining example.

But where the welfare state has been fought most, by the populace, the standard of living has increased the most. The US is the best example of this. In 2010 the GDP per US citizen was around $47,000, while in Europe it was around $30,000 and that includes Lassez Faire Luxembourg with a per capita GDP of around $81,000 per person. With further proof to our conjecture, that now the US has changed course and is running fast to socialism, we see that the dynamic economy that characterized the US has been hobbled. Encumbered by ever changing welfare state regulation and the threat of more taxation around the corner… inevitably, American companies are panicked. They are hording cash and getting as much business offshore as possible. It is virtuous behavior, (in a bourgeois way), to protect the assets of your investors. To do otherwise is corrupt.

States must face the ogre of reforming the welfare state. It must be done, because sooner rather than later it, it will collapse. The World economy will breakdown long before it totally runs out of money. If the monetary system survives a total Greek default, (they have already defaulted 50%), there are time bombs planted all over in Europe. Not to mention the ticking time bombs in the US ala Social Security and Medicare/Medicaid.

Throwing trillions more good Euros after the trillions of Euros that have already been lost is simply bad business. But there again we are not talking about businessmen are we? We are talking about politicians. People who seek power as a good above all others. To them a good deal is one that lets them keep all their power. A great deal is one that gets them more power. No matter the cost to society. The career politician will bristle at this. But I notice very few did when doctors were accused of removing people’s legs for the insurance money. For logic to be logic, it must be consistent, else it is rhetoric.

So, have rotated our one eye, and focused it on the real problem. No, the thing is not a tax problem, nor is it a question of how much largess and no, printing money is no solution either, it is the welfare state. The solution is to reform welfare state capitalism. The place to start is to throw out the much misused metric of the gap between the rich and poor. Instead measure societies by their sustainable material standard of living. If a society existed where everyone was equally destitute and another where everyone was fat but a few had more money than they could ever spend… which one would be voted for, by immigration? Which one has historically?

And no, the answer is not to eliminate capitalism, to measure socialism’s outcomes by.

Fast and Furious; a Despicable Act of War.

Monday, October 10th, 2011

Dear Friends,

It seems to me that the US Constitutional Right to keep and bear Arms is under insidious assault along with the entire suite of Constitutional controls on the government. Take Fast and Furious, the US Justice department program to put guns in the hands of Mexican drug gangs. While the US government was arming the Mexican drug gangs, an existential threat to Mexico, an ally, Obama was accusing innocent Americans of it, and calling question to the Second Amendment because of the flow of guns into Mexico. Anytime a Constitutional Right is under assault, let alone the whole Constitution, we as Americans and as interested observers, should pay close attention to the reasons, the tactics and the logical outcome… If we are indeed self interested rightly understood.

Eric Holder, under oath in Congressional testimony, claimed no knowledge of Fast and Furious; but there were records of his getting memos regarding it prior to his acknowledging… his knowledge. In last Friday’s document dump. In his defense he has claimed the Bush administration did it too. However, records indicate the Bush administration’s program tracked the guns from the place of purchase, locating way points and eventually picking almost all the guns back up… before they reached the hands of the drug lords. Fast and Furious intentionally sent the guns, into the dark, and only tracked them when they showed up at crime scenes.

Eric Holder also claimed; that the Congressmen who is pushing the issue was briefed. Which the Congressmen admits. But records indicate that the person sent to brief the oversight committee didn’t know about the guns being let “walk.” So in fact the Congressman was not fully briefed. The problem with the “He does (did) it too” defense, is that it channels valuable time and resources into investigating something other than the crime at hand. Giving the alleged criminal time to hide, destroy and change evidence. This is a form of sophist attempt to focus attention elsewhere, like a magician, so the criminal can escape justice. As such it should be unacceptable. Unfortunately it is one that the democrat party uses all too much.

I would remind the reader that Skooter Libby was sentenced to jail for lying under oath where no crime was actually committed (The person who actually did the alleged crime had already admitted it to the prosecutor but was not prosecuted). Roger Clemons is being bankrupted by legal fees for allegedly lying to Congress. I am very curious if Eric Holder, who came into office wanting to prosecute every Bush administration official, will be prosecuted himself, for lying to Congress under Oath. The likelihood seems remote.

The Obama administration is in favor of the UN treaty on small arms. This treaty would bypass the normal Constitutional process, because in the US Constitution, treaties supersede Amendments. (Treaties were never meant to pertain to the US government’s internal law only to foreign relations, thus the term, treaty). But the UN small arms “treaty” would, at the stroke of a pen, outlaw gun ownership in the US. Bypassing Constitutional restrains. Does anyone think that the assault on Constitutional rights would stop there? Of course not! Banning guns would be only the small edge of the wedge. In short order the US Constitution would cease to exist as a viable document. Treaties superseding every restriction on governmental power. With programs like Fast and Furious providing the rhetorical fodder.

The death of US citizens and the death of a US Boarder Patrol agent, by criminals armed by the US government, is a crime of the highest order. The Government is tasked with ensuring the security and safety of it’s citizens… Not fomenting discord, providing weaponry to criminals destabilizing our neighboring country and using the results to undermine Constitutional rights! Mexico is a friendly country. Why would the Obama administration provide weaponry to Mexico’s drug cartels? Seems to me this is an act of war. I am amazed that the peaceful Obama administration would commit an act of war, against an ally, who is fighting an existential conflict with the drug cartels, by arming those drug cartels? This is not the way the US has historically acted to an ally.

But what if there was a working NUMA in place? There would already be a power in place that would look into it. A properly functioning NUMA would investigate not only Eric holder but the entire Obama administration as well. The Obama administration has apparently been caught, arming the Mexican drug cartels, essentially committing an act of war against Mexico, then using the violence the guns enabled, to justify and all out assault on the US Citizen’s right to keep and bear arms, while senior officials were denying it under oath. If senior Obama administration officials did indeed send thousands of powerful weapons into the hands of Mexican drug cartels then at least those officials should face jail time. But if Obama knew, covered it up and condoned it, while he was vilifying gun ownership… covering up potentially criminal acts was what Nixon was impeached for. A NUMA would see it done.

Crony Capitalism and Distributive Justice

Sunday, September 4th, 2011

Dear Friends,

It seems to me, that the just distribution of societies goods, is of paramount concern to everyone who lives on the planet. The debate has been going on as long as humanity has strode the globe. Today the anti capitalists shout social justice as an vacant moniker. An empty bucket the listener puts whatever idea or notion of what he or she believes justice to be. Never actually defined except with emotionally charged rhetoric and slogans. Our collective lot is lowered thusly.

Social justice, most often, really means the distribution of the goods of society… through political favor. Another term for this is crony capitalism and/or oligarchal capitalism. Everyone knows, at a gut level, that crony capitalism is wrong but few actually understand why. It is the why of it that lets us effectively argue against crony capitalism and understand it‘s effects.

One reason distribution of goods through political favor is bad is that it sets up a whole host of pernicious incentives. These all create the conditions that make people despise work and despise the wealthy. No society becomes wealthy or even well fed that eschews work and hates the wealthy. Veblen said in America people don’t hate the rich because everyone in his heart believes that someday he might become rich. A more human hearted ethos I cannot imagine, But as poverty and deprivation are the wages of indolence, comfort and wealth are the wages of capitalistic virtue.

Lets say that a country is effective at protecting some native industry against competition. Innovation in that industry will slide. It is simply the nature of business and humanity. As the efficiency and innovation slips openings will appear, that other countries economies can take advantage of, where the protector counties laws are not in effect. When this happens, the industry protected will move very quickly, to the competing country. The workers laid off will be only trained to work in the old, formerly protected, industry. They will be expensive to retrain and what will they be retrained for?

In most countries where oligarchal capitalism is the primary means of distribution we see a few families have all the wealth of the country the rest impovershed. These few families are the only people allowed to open businesses. As a result the most competent people in those countries are kept out of business. Keeping competent people out of a counties economy puts that country at a disadvantage to the rest of the World in competitiveness and innovation. This naturally results in the lowering of the mean standard of living in a country… even for the few families!

Protectionism also protects competing counties from your products. Take the example of Brazil in the 1980’s. They sought to protect their nascent computer industry from competition and foster it’s growth by implementing protectionist measures. Imports of foreign computers was discouraged. The result was that every other industry in Brazil suffered slower native computers and less efficient software just as all their competitors were advancing quickly in efficiency from the implementation of state of the art computers. Every other industry suffered and the nascent computer industry collapsed. The lowered GDP will effect every Brazilian for generations.

The ideal for a capitalist society is to create the conditions for perfect competition to thrive. Industries that have perfect competition have low profit margins and high innovation rates. Low profit margins mean the products are available to the majority of working people. Television sets and computers are examples.

Unfortunately it is in the nature of democratic governments to lean towards crony capitalism. The elect who get power always owe some powerful faction or other. The rewards for support are always political protection of the supporter’s goods and despoiling the goods of the supporter’s competitors. Otherwise why support a politician to the tune of millions of dollars, and thousands of man-hours of donated labor. If we accept that people are rational maximisers then we must also accept this fact about the nature of democratic government.

Since democratic government is at the core of every efficient capitalist republican government then we must find a means to control this natural behavior in our elected officials. We here at the International Capitalist Party have the means at hand. It is a NUMA. Were it implemented in Oligarchal Capitalist countries, their economies as well as their standard of living, would be greatly improved.

My Day at the Bank

Sunday, July 31st, 2011

Dear Friends,

It seems to me that:

The bustling city street glistened from the recent rain. Walking down the lane, the sun was poking out from behind the clouds, and my shoulder, turning on the drops still clinging to the leaves into diamonds. I turned and walked into the bank. The banker had called me and wanted to talk.

His mahogany office smelled of paper and ink. A primitive computer sat on his desk. The Banker sat on a overstuffed leather chair. I strode to the chair opposite and plumped down crossing my legs and leaning back. The Banker looked up and smiled, “Sam,” he said, “I wanted to talk over your finances.” He looked down at some papers then continued, “It appears that you have been increasing your spending at 10% or more every year, while your income has only risen 2-3% a year.” He flicks through some papers and shakes his head, “You even project spending increases at 8% for the next ten years while income is projected even lower.”

Furious I spat, “Are you stupid? In that projected budget I cut spending over ten years!” The Banker was aghast and responded, “Your debt to income ratio is getting so out of control that your credit rating is being effected. Some banks down the road have even downgraded your credit” I immediately snapped back, “Are you threatening me? I have lawyers that will look into your finances and believe me, they will find something, and don‘t worry about them, I have already filed lawsuits…” The Banker sat back, breathed out a long sigh and said, “Well, It’s your call.” I stood and walked out. How could he have the audacity to say such things! I went to my CPA.

He sat typing on his laptop, his phone cradled in his shoulder, the smell of cigarettes in the air. I sat down and looked around. His office was cluttered with papers piled and books stacked. “Ok, I’ll get back to you tomorrow.” The accountant Hung up the phone and looked up, “Well, I guess the Banker talked to you.” I stared at him for a few seconds, “I will just take more revenue from the business.” “But if you talk more from your business, you will diminish it’s yield.” He responded, then went on, “The best answer is to establish a budget that you must live under.” “You are acting childish,” I said, “You keep acting like I can cut spending, too many people depend on me, and the dependants are growing every day!” “That is because you buy everyone a free lunch. Most of your debt today, and projected, is for going out to eat.” The accountant replied dryly.

I sat back, again confronted by an imbecile, and said, “Ok, If I have to cut spending I’ll eliminate the security service.” But the fool accountant said, “You live in the most violent neighborhood there is, if you do that, you will certainly be robbed and maybe even killed!” I responded, “You really are dumb aren’t you, if I eliminate my security service, it will demonstrate to the hoodlums and gangs that I pose them no threat and they will like me.” I went on, “they are just people who are misunderstood.” The idiot accountant said, “But a few of your neighbors are building bombs and claiming they want to kill you.” I responded, “I will never be at war with them.”

The accountant sighed and said, “Whatever, but your business is already straining under the draining your giving it. I project your spending will start to increase exponentially due to you promises of future free lunches to more and more people.” I replied, “You keep singing the same old tune, I’ll cut the security service and take more income from my business, stop being such a child and make it work.” I got up and went home.

When I got home my wife met me at the door. “We have to talk about the finances, I don’t like the idea of shutting off the security service or taking more from the business. I want to establish a budget!” She bitched. I had had about as much as I could take, so I slapped her down, right on the doorstep, to the applause of the people I had been feeding. It made me feel so strong, and the cheers, so good.

Too bad my house was broken into, my wife was killed,, my business failed and the people I was supporting starved to death. I just don’t understand how that could have possibly happened?

On Somalian Famine

Thursday, July 21st, 2011

Dear Friends,

It seems to me, if the Romans had fed, clothed and housed the civilian population of Carthage, history would not have been written in Latin and we might be worshipping Baal. Had the Allies fed, clothed and provided medical care to the German people during WWI or WWII then we would probably be speaking German. It is patent folly and moreover stupidity to provide logistical support to an enemy in wartime. The side that engages in providing logistical support for the enemy’s civilian population may be more civilized, on some level, but is it really civilized to facilitate barbarians wiping out civilization? I, for one, like civilization!

To be human hearted is noble and civilized. We all seek human heartedness in our lives and the good among us seek to bless society with human heartedness. To have empathy for the suffering of others is the table facet of human heartedness. The suffering of people, is the worldly manifestation of evil, and so it is unconscionable. We should all seek to lower the level of suffering in the World. It is in our personal interest to do so even when that suffering seems far away.

Lets say you have a full water skein. You notice it has a leak. Does it make sense to put your hand in and plug the leak? No, your hand will displace far more water than the small leak will loose in an hour. With dubious results of actually fixing the leak. We can safely say that the repair will do more harm than the problem. If we can adhere some material to the outside, temporarily, we can use the skein until it is empty then we can repair it properly.

The same is true of human suffering. It doesn’t make sense to magnify suffering, to diminish it, especially when it creates much more misery then the original problem would have. The intervention in Libya is an example. Had the war ended months ago, (as it would have), the suffering would be over and the people would be rebuilding. But the intervention, to fix a problem of suffering, has led to far more suffering, now the Elite must save face, so the war goes on…

Lets examine the misery in Somalia today. The war and a drought have led to… hard to believe… a famine. Apparently, a state of perpetual warfare and a people who rely on a mix of subsistence farming and international handouts, is not a path to prosperity. The International community is sending aid. Mostly Britain and the US. But the war with the radical Islamic movement, Al Shabab, is hampering efforts to feed clothe and provide medical assistance to the civilians under the control of Al Shabab.

Meanwhile people are starving who are not within the sphere of influence of Al Shabab. Why not simply feed the people who do not support Al Shabab? Why is it so important to provide logistical support for the radical Islamist movement trying to conquer the country and instill Sharia? Why not defeat them first then feed the people who emerge. To provide medical supplies, food, and other essentials, to the civilians under a tyrannical military is not feeding the people, it is feeding their tormentors. The supplies will never get to the people and if some does it will be seized and sent to the fighters extra will be sold to provide ammo and guns.

The food sent to Al Shabab will also be a terrific recruitment tool for them. Join and you will be fed. Not hard to comprehend. No way that could be a bad thing huh? Until the war is over and the country has a functional State, that can protect the property of the people, there will be no end to the famines. Providing logistical support to the civilians within the sphere of influence of Al Shabab will only lead to more war, famine and suffering and perhaps, Al Shabab’s victory. Doesn’t it make sense to provide support for the free people of Somalia and eschew supporting Al Shabab?

In the longer term the answer to permanently ending the cyclic famine in Somalia, is to defeat Al Shabab and establish a stable government. Then keep regulation low, taxes low, and keep a tight grip on public servants and government with a NUMA. If this is done the economy of Somalia will grow rapidly. Industrializing Somalia will break the cycle of famine there forever. What could be more human hearted than that?

When a country or ideology is engaged in an existential war then that ideology or country must engage in war. This is simply the framework of reality we have to work within. Civilized suicide is a sin. The loss of civilization to barbarism compounds the vice and is no virtue no matter the intentions. Clausewitz would be indignant at the notion of providing logistical support to the enemy population during wartime. Hsun Tzu would be clicking his tongue like a school marm at a rascally student…

By the way, “Death to Carthage!”

My Confession

Thursday, June 23rd, 2011

Dear Friends,

It seems to me that there can be an effective ad homonym attack made on me and my motives in writing my blogs. The assault could be that I stand to gain materially if the ideas that I write about are implemented. Unfortunately this is true. I do stand to gain if the ideas that I write about are implemented. Lets look further into it…

Take for example if the NUMA were implemented in some country other than the one I live in. The people of that country would enjoy genuine liberty because their government would be actually yoked. The Elite would be harnessed to the interests of the society as a whole instead of a faction only. This would indirectly benefit me in that if the tyranny of the World’s people is lowered then, as a member of the human race, I stand to gain as well. So in this example I can be vilified.

Another example is if Capitalist Social Security were implemented in some other country than that which I live. The people in that country would start building societal/generational wealth. The prosperity and economic stability that such a system would provide would boost the economy of that country. As the years go on and the fund builds the amount of money available for starting a firm would grow to be enormous. This would allow large projects to be initiated locally with local resources. The increase in economic activity this would generate would directly benefit every one ion the planet and I live on the planet…

As the economy of any country is improved World aggregate demand is driven up. As World aggregate demand is driven up supply must necessarily be driven up to meet the demand. This is the basis of the aggregate supply aggregate demand model of macro economics. So even in this I would directly benefit. Again opening me to criticism that all I do is try to get people to implement ideas that are actually in my self interest.

Woe to me if regulation was periodically washed of redundant rules. This would again drive up economic activity in any country that did it. Again opening me to the criticism that I write in my self interest only. Regulations being as pernicious as they are a source of friction.

Greece being the poster child of stupid regulation. When regulation in a country becomes so onerous that economic activity must cease people go around it. When they do, as they must, they become more and more egoistic and less and less individualistic. This is the fundamental problem in Greece. The corruption in the society is manifested in endemic tax evasion, scoff law behavior, etc… All because regulation is out of control. The first step to repairing the problem is to overhaul regulation in Greece. Until that is done the Greek sovereign debt crisis will be combed over with less and less hair.

So here is another example of me writing in my own self interest! If the Greek sovereign debt crisis is solved I stand to personally gain money! Yes it is true. If the Greek sovereign debt crisis is actually resolved the US stock market would rise dramatically. I am invested in the US stock market so I stand to materially gain if my idea is implemented.

Never mind if my ideas are implemented in my own country! The added prosperity for the entire country would go up. I am a member of that society, so I would gain from it, directly and materially. Damming evidence to be sure.

Even my posterity would directly benefit from the implementation of my ideas. So even in this I have potentially corrupt motives. To improve the lives of my family and extended family. But even the lives of people that I know and even friends would be better off. You see; there is no bottom to my corrupt motives.

So in the glaring light of scrutiny, of my motivations in writing this blog and founding this party, I must be found guilty. Yes I admit it. I am guilty of wanting to personally benefit from improving the lot of Mankind. It is unfortunately true, that if my ideas are implemented the lot of humanity will improve, and I being a human will have my personal lot improved as well. I beg your forgiveness and understanding.

But the blogs will continue…

Romantically Involved with Revolution

Thursday, March 24th, 2011

Dear Friends,

It seems to me that we all romanticize that which we know nothing of. Those that know nothing of war romanticize it and think they would emerge strong and heroic from one if they were involved. But whenever the real chance to become involved appears we recoil at the stark horror of what war really is. We romanticize marriage… until we are married… We romanticize many things but the reality of them always fails to meet our expectations.

Like the anti capitalists romanticize the worker. To a man, from Marx and Moser through Toonies and Marcuse, they worshipped work and eschewed it at the same time. Not that Moser was lazy like Marx or that Marcuse was the hypocrite Toonies was, but none of them had any real hands on knowledge, of manual labor. Yet they, and today’s anti capitalist like Obama, have never labored and would never labor yet they claim to worship the laborer.

But is it really a form of worship to subject a person to servitude? How many times have the romantic anti capitalists gathered sufficient masses to lever the reigns of government to their own ends. Whenever this has happened it has always resulted in economic stagnation, widespread poverty and outright starvation, but most importantly, political repression. History shows us one thing, that the Market System can exist under both tyrannies and republics but socialism and communism can only exist under tyranny.

Romantic anti capitalists have always used, as their willing pawns, the youth. Led by upper middle class youth, (the most dangerous people on Earth). The romantic anti capitalist revs up the youth to rise up and revolt. A few misled but bright young kids killed in smashing capitalism is a small price the anti capitalist is willing to let them pay.

Look at Mao’s cultural revolutions in the 1960s. What was the point of that? To instill in the people the political ethos of the right to revolution? Or to so demoralize the people they expended their will to fight on each other instead of examining their own lot. It was effective at culling the population and terrorizing the people. Mao used the youth, the most dangerous people in any society, to do his handy work.

Because they have no experience. Knowledge without experience to temper it is very dangerous, it has led to the attempted extermination of more then just the Gypsies and the Jews at he hands of the Nazis, communists and socialists have murdered tens of millions of people. Che and Castro praised the willingness of the youth to kill in the name of the revolution. I have read, Che was fond of killing people tied up and begging for their lives, what a big hearted man.

Today the youth of the World have been urged to rise up… demand you be heard, and take back power from the tyrant! They are being wound up to run into the meat grinder of tyrannical politics. For their own good? Or for the mischievous purposes of a few Elite who would be kings. Do you think the kids running the revolutions around the World might be a tad wide eyed?

We all want liberty for the people of the World. Everyone deserves the right of self determination and is sovereign. The only system that has ever been devised that raises the lot of Man is the Market System. The youth who are rising today should instead seek market reform, lifting regulation, stomping down corruption in the civil service corps and strong protection of the property of every person with no exemptions. This would serve to raise the standard of living and more importantly teach the people of the middle East how to live in a republic, (what the unbiased media calls “democracy”).

The recent election in Egypt calling for immediate parliamentary elections and a rewrite of the Egyptian Constitution will certainly bring the Moslem Brotherhood into power to write the new Constitution and rule for the meantime. Does anyone think that regulation reform is on the agenda for the Moslem Brotherhood? Or that the wide eyed youth have the experience to force them to?

NUMA

Thursday, February 17th, 2011

Dear Friends,

It seems to me that history, and the present, show us that the Elite in all societies need to be policed. Perhaps the societal upheavals we are witnessing lately could have been avoided, or maybe even stopped, by wise establishment of a Fourth Branch of Government, I am of course talking about a NUMA.

A NUMA would be a place for the people to express their dissatisfaction with the State. The NUMA would be tasked with following up “consumer” complaints against government or it’s services. If, for example, a person thought their property taxes were too high they would go to the local NUMA. The NUMA would look into the problem. Siding with the consumer in court if it came to that. One of it’s functions would be as a consumer complaints department against the government.

Another of it’s primary responsibilities would be to police government officials, with draconian measures, if necessary. Cameras in the parliamentarian’s chambers, recording all the time to be released in 20 years. No matter the hubris of an official, he or she loathes to be seen by history, as a fink. The threat of history and the more immediate threat of prosecution is what faces the corrupt politician.

Another important facet of the functioning of a NUMA is that, in the amendment chartering a NUMA, there would need to be a provision against any member or branch of government carving out some loop hole in Law. Allowing Congressmen to engage in acts legally, i.e. “Insider trading” that would be illegal for the citizen to engage in. Or for a member or branch to exclude itself from any legislation they pass on any segment, faction, coalition or any other grouping of people.

Pit a faction of government against the rest of government, make it their job, give them incentives to be active in their jobs and you have the means to reign in the avarice of corrupt officials. It is also important to keep a NUMA under control and not let it coerce other officials to enrich it’s interests or the interests of it’s members. This could be done by the regular police having police function over the NUMA. Cameras in their offices and the whole lot.

There is no question that if a person knows he or she will be held to every Law they pass, to the letter of that Law, they will be skeptical in their judgment. They will read the law and understand it before they vote, and be reticent to pass Laws, that will have a detrimental effect on themselves. Because no matter how thoughtful the individual, they are more thoughtful of their own personal interests, then they ever could be of another’s. It is human nature.

Elections would be where a NUMA would shine. The NUMA would have volunteers stationed at every polling booth. At least 2 from each of the main political parties. They would see that election laws are followed. They would inspect boxes as they came in, tag and release the boxes to be filled with ballots then seal the boxes with a number, equating to the polling station location, or some other convenient way. The NUMA along with international observers would insure a free and fair vote count.

A NUMA would enhance the economic wealth of a nation that is wise enough to adopt one. An official who is reported to the NUMA as requesting or taking bribes would meet immediate prosecution and if found guilty would go to jail. The replacement would be a little more wary of bribery. This would unfetter the market forces in that nation and would inevitably result in more small businesses. More small businesses would inevitably result in more employment. The chain of causality, no bribes leading to more small business leading to more employment, is clear as spring water.

The enacting of a NUMA would be a win win for any country. Change the paradigm and you change the outcome. Follow the same path as others have taken and the outcome is obvious. Confucius said, “A fool follows a dangerous path when a safe one is at hand.” Tyranny follows tyranny and that is the normal course of human events.

Perhaps, just once, the Elite could take us on the safe path?

Revolution and It’s Natural Outcomes

Monday, January 31st, 2011

Dear Friends,

It seems self evident to me that a thing that has happened in the past is possible in the future. To argue otherwise is to argue history has no meaning and empirical evidence cannot be relied upon. This would require all science and knowledge to be thrown out logically. Since this is not possible then what has happened in the past is possible in the future. Both to the good and to the bad.

A good set of examples are the peaceful revolutions of the Eastern Bloc. The Velvet revolution in Czechoslovakia and the Solidarity movement in Poland were peaceful and led to stable republics. Even the nationalist breakup of Czechoslovakia into the Check Republic and the Slovak Republics were peaceful and led to little bloodshed. They are shining examples of how to move from a tyranny to a Republic.

Bad examples have been far more plentiful. From the revolutions in South America that led to “President’s for life” through revolutions that led to communist governments that murdered millions of their citizens to revolutions that ushered in theocratic regimes, with an end times philosophy that they shout from the rooftops, but the rest of the world is too scared to face and turn their heads in shame and willful ignorance.

Revolution usually means the ushering in of a new tyrant instead of replacing him with a true republic. The new tyrant is afraid, that the public outcry that brought him into power might oust him as well, and is vicious in keeping the people sufficiently down, to prevent this from happening. Then the people are shoved from mere tyranny, into being subject to the whims of a panicked despot, terrified of his people and willing to do anything as a result.

History shows us that when there is not a viable oppositions party the government devolves into tyranny. In the worst case scenario the government devolves to Lebanon in the 1980’s or Somalia today. In these cases we see the result of factions who are not interested in the good of society but only their own good. Willing to do any amount of harm to others to get their desires met, they show themselves to be the worst kind of child… The screaming brat. They scream at the injustice they feel and mete out far worse injustice on others without batting an eye. The people who control these factions are evil incarnate.

When historical conditions and decisions are revisited the results are always the same. For the good or for the bad it is the people who suffer the most. Possibly because the people are a blunt weapon in the war of tyrannical politics. Too blunt to force their will but powerful enough that no tyrant can stand it for long. This blunt weapon is perfect for the use of a potential tyrant. The potential tyrant convinces the people or at least a small cadre that they will be a benevolent tyrant and will serve the people… As fodder.

But if a new means were employed necessarily a new outcome would occur. If we add vinegar to soda then a chemical reaction occurs that boils over the container. But if we mix neutral water in the soda then we get a different reaction. It may seem like we must immediately change from base to neutral but that may cause negative side effects and this is exactly what we have been talking about. Changing an input to a situation changes the outcome.

What if, in cases where the people are fed up with a tyrant who has been in power for 30 years, what the people really need is a NUMA. A branch of government that is powerful enough to force the tyrant to follow his own laws. Chain the tyrant and he becomes a dog. Placid and protective. Unchained and roaming in packs, tyrants are subject to rabies and can turn on their masters, (the people). Dogs and tyrants require a chain. The best chain for tyrants, both benevolent and malevolent, is the NUMA.

International Competition for Jobs

Sunday, January 23rd, 2011

Dear Friends,

It seems to me the fundamental misconception, that world leaders and the public at large have about jobs and the world economy, is that the various countries of the world are in competition for jobs, when nothing could be further from the truth. The reality of the situation is, as more people move to specialization within the market system and away from subsistence farming the more demand for jobs grows, around the world. The flow of labor is like water always seeking a low point. It is the actions of government’s in their futile attempt to marshal the forces of the market, to get jobs within their countries, at the expense of jobs in another, that government‘s effect competition.

Most all economic historians agree that the depression was in large part caused by the Smoot Hawley act and other similar laws and tariffs passed around the world at the beginning of the 1930’s. Those anti global trade laws resulted in the collapse of international trade. Jobs were lost in every country. The unemployment rate rose to staggering heights despite the willingness of people to work. International trade is empirically, historically, even if counter intuitively, proven to create jobs.

The demand for low skilled employment is supplied from a giant pool of uneducated people on the planet. However, as jobs flow into an area the work force inevitably becomes more educated. Even the lowest skill job is civilizing. The need to meet a schedule, the need to be dutiful in time, money and personal management, gives people the sense of what it is to be “self interested rightly understood.” As the workforce in a low educated area become more and more active in the market the level of education rises.

As all this happens the demand for what was formerly “luxury” items increases. This demand must be filled from abroad. The increased trade grows the need for workers to handle the logistics and so forth. The demand for labor not only rises but the demand for educated labor goes up as well. When employment has neared saturation, of those that want to be employed, the cost of labor rises. This drives the demand for new low skilled labor to the next lowest area.

The point is, that the jobs don’t move, they evolve. Low skilled low paid jobs, evolve into higher skilled higher paid jobs, that are better suited to increase the expectations of the people… thus aggregate demand. Even the evolved jobs are not in direct competition, in the international marketplace, unless government regulation drives them away.

Here is the crux of why the Elite have a problem with international trade and globalism… It gives people and businesses, the ability to leave onerous regulation, and go where government policies are more favorable to free enterprise. The Elite want to pass poorly thought out regulation along with insane legislation, that the Elite carve out exemptions for themselves, with impunity. They want there to be no consequences to their actions, legislatively, to reflect the lack of consequences to their personal actions. All of which would be corrected with a NUMA.

So it is not that countries are in competition for jobs within the international arena of demand but the Elite want impunity for their actions on the job markets in their countries. That is why Smoot Hawley was enacted, to give the progressives in America, at the time, the ability to grapple the markets under control, without people and business fleeing to other countries. The market turned out to be far more slippery than the progressive Elite thought it would be, and the Constitution kept getting in the way, forcing the Elite to go back to international trade.

The countries that reengaged with international trade in the 1940’s, after the war, did very well economically, those that didn’t became Brazil, Venezuela, Mexico, Argentina etc… Their countries government’s became more introverted and more focused on protecting what they had than in opening up to international trade. They have made the same mistakes over and over. Enacting legislation in the 1980’s to protect their fledgling computer startups hobbled the rest of the economy is only one example.

We see over and over, everywhere we look, that countries that open up to international trade become more wealthy. As a nation, as a people and individually, the wealth of a nation grows. The modern example of China shows us the advantage to opening up to international trade. The fact that China has huge subsidies and is running down the road to oligarchal capitalism, headlong into the brick wall that blocks that road, is not in any way confounding. It is not the subsidies, the tariffs or the currency manipulation that has brought so much new wealth into China, it is international trade.