Chaos Is Money

Dear friends,

It seems to me that Chaos is money. That is an old saying in the telecommunications industry, many others too, I assume.

What it means is that when management creates chaos. (In the methods and practices or in the plant itself). This chaos requires the intercession of a technician. That technician then spends a huge amount of time sitting on hold, usually on overtime, or struggling to make the unworkable work, again, on overtime. Whenever this is the case gobs of overtime money is earned. So despite the complaining and grousing about the chaos created by mismanagement and incompetent engineering, the technician would be better advised to promote chaos.

Of course it isn’t in his or her long term interests to promote mismanagement and incompetent engineering, because the company would eventually go under, and the corrupt employee would loose his or her job and pencion. But the corrupt employee that sees it this way is no different than the lawyer or judge that “finds” a loophole in a contract. They promote chaos in the legal system. Thus putting their personal best interests and the interests of their faction above society as a whole.

Loopholes are simply a means by which a party to the contract can be “legally” corrupt. In most contracts, even if they must be broken down into flow diagrams, can be summed up pretty succinctly. Understood by both parties the contract is implemented. But reams of paper must be made out and signed for a modern contract to be implemented to insure the virtue of both parties. When one or the other party’s interests has changed, and it is no longer in his or her interest to fulfill their part of the contract, they bring in a lawyer.

So attorneys give the corrupt a leg up on the virtuous. And as a result are the defense of the virtuous against the vulgarities of the corrupt. Sowing chaos, then “fixing” it, is the role of the modern “advocate”.

Well, you might say, everyone sees problems but what do you propose to do about it?

I think that it may be too late in the USA to really fix the underlying problem. But in a newly forming republic it would be easy to insure the problem doesn’t crop up. Or at least is minimized.

The underlying problem in the USA is that law is adjudicated as “letter of the law”, and as Confucius’s disciple said, “people will argue to the head of a pin that the law doesn’t apply to them.” By enforcing “definition or terms” rather than “honesty of intentions or general gist” lawyers insure that chaos will reign.

First of all it is patently impossible to foresee every possible way in which a person could break a law or “find” a loophole in a contract. The attempt has resulted in enough paper to orbit the Earth and block the sun. With no end in sight in the growth of this behemoth, where it will go, and what it wil consume, is far from certain.

In a new republic however, the founders might envision a better way to interpret law, to interpret the “general gist” not the “particular wording” of law and contracts. If a party to a contract claims that he or she should be able to get the other party, to do work for free for example, because the contract didn’t specify a certain incidental thing, therfore the contract should be considered null, but, Since the work had been completed etc… Should be interpreted by the general gist that work would be done and payment would be made. Not particular wording that forgot some clause or sentence to close some “loophole”.

By adjudicating in this way shady business practices would be curtailed to some extent. Removing some friction in the business climate of a country. When a contract can be written simply and understandably, and most importantly, adjudicated fairly by the general gist, the workings of businesses would be smoother and more efficient.

The lawyers would loose out in such a nation. They would have much less acreage to sow the seeds of chaos. But, they are smart people, I’m sure they’ll find a way to make a decent living…

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Coming Election

Dear Reader,

It seems to me that in the present debate about the economy real Capitalist thought has no seat at the table.

The Legislative Branch is firmly in the hands of the more socialistic of the two major parties and apparently, (according to the “unbiased” media), gaining ground in the next election . And moreover that party will have a filibuster and veto proof majority.

The “unbiased” media has lurched leftward, like a zombie, and are ‘en masse’ staggering that direction. The foolish witticism of the day is “ Is this the end of capitalism?” As if that were possible. Even where capitalism has been discouraged the most, North Korea, there is some vestiges of capitalism. Some people sell , under the table, some of the food they grow. Everyone wants to get ahead, so until the Elite figure out a way to erase this attribute from the human race, they will have to make contingencies… Capitalism.

Even the media is recognizing the bias. On McNeil Lehrer Report last night they reported that some people have the misguided notion that there are more ‘negative’ stories about McCain than Obama. In fact it was reported that 80% of the news items about Obama were ‘positive’ and only 20% of the news items about McCain were ‘positive’. They then went on to assure the viewers that they were not in fact biased at all. They were only mirroring the public poll numbers. For a week after the Republican Convention the press apparently had more ‘positive’ stories about McCain than Obama. Then they spent the remainder of their important time on the air… ridiculing Sara Palin’s wardrobe budget.

The people who brought us the economic disaster, staggering gas prices, loss of home values, and the “bailout” are benefiting and those that fought them are being vanquished. The “Bailout” has amounted to exactly what I thought it would… to punish the virtuous, reward the corrupt and pour more fuel on the fire.

With this as the present paradigm, the prospect of capitalist ideas being brought up is unlikely, let alone, being implemented… Unless the unbiased media is wrong?

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Do We Have a Right to Healthcare?

Dear Friends,

It seems to me that to say that health care is a right is to say that someone’s right to healthcare supersedes someone else’s right to property.

The State lives at cost to the taxpayers. Those that pay taxes pay for government… Everyone pays, in some way, cigarette taxes, gasoline taxes, income taxes, etc… Therefore when government pays for something i.e.; healthcare, it is not government that bears the cost, it is the taxpayers. The money is taken, at gunpoint if need be, against another’s will to be used for government, denying them the free use of their property. So to fund a right to healthcare, someone must be denied his or her right to property.

Government never thinks about how a tax increase is going to effect the people who will bear the tax. The fact that taxes always lower the standard of living of the people taxed is of no concern to the State. In fact the State has an interest in making and keeping the people dependant on the State. Dependants are at the mercy of their benefactors. But, like a skunk, when we see an easy meal we willingly walk right into the trap. Then we gaze about in amazement that we are caged, and lament our predicament.

Regardless of the future consequences of present questions, we are faced with the conundrum as to, what is the quantifiable level of “right” people have to their personal property, real and chattel,, or, even if a person has a right to his or her own property. However I can not see a way around the question that if a person doesn’t have a fairly high quantity, if you will, of rights to his or her personal property, how then can you say that anything less than the right to personal property, can be a right.

To say that a person has no right to his or her own property, is to say that everything we have, we are allowed to keep at the suffrage of the government. If that is the case, we survive at the behest of government. Because food is a form of property and if the State decides to withhold food, we die, naturally. (As was done to over ten million Ukrainians in the 1930’s by the government). So, if our very lives are at the mercy of the State and can be taken from us at the State’s whim. To say that we have no right to life but we have a right to healthcare? It seems to me to be a non sequitor. What good is healthcare if the State decides we have become a burden?

Now we come to the other question, does a person have a right to healthcare, and if so, to what quantifiable level? It depends on at what magnitude you want to set the term rights. The more things that are encompassed by the term rights the lower we hold them in the aggregate. When we qualify things like We have a right to foot massages, as rights, we lower the definition of the term. The lower the definition the less we esteem them. The lower the level of what you refer to as rights the easier it is for tyrants to take them away. So to ensure that we always have basic rights we must necessarily keep the definition high.

Another problem with calling things rights that may or may not be is that the term has been used as an excuse for atrocities in the past, Strum Drang Osten comes to mind. That philosophy ended in the Crimean War. Later the idea was resurrected as “The German people have a RIGHT to feed themselves!” culminating in the invasion of the Soviet Union in 1941. The term rights has a history of being a lever to get people to do things that they otherwise would never have done.

So my inclination is to hold the value of a possible right to healthcare lower due to it’s effect on the value we hold other rights, and the slippery slope of it’s possible use as a lever, than what I perceive to be a true right, the right to have and to hold property, to my own benefit and freely held.

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Regulate Early and Regulate Often ???

Dear Friend,

I remember a quote form Confucius, When asked what he would do if put in charge of a province Confucius said he would “rectify terms”. When asked why, he responded, when terms are rectified the measure will be accurate and the people can trust one another. It seems to me that this is one of the best analogies for the legitimate role of government in regulating markets.

Stability in rule and regulations is like loam to markets. Government that is constantly regulating it’s markets, trying to improve one aspect or another, are like the farmer who, when checking his fields saw that his corn wasn’t growing as fast as he wanted, so he pulled it all up.
Upon returning home his son seeing the fatigue in his father’s continence, asked what he had done that was so tiring. His father replied “ I was helping the corn to grow.” The son ran out to the field to see all the corn pulled up.

Like a good farmer, government that wants a strong economy, stays in the background. He provides the means and the keeps the weeds from the crops The crops job is to grow. Clear and consistent rules concerning conduct, not business practice, is like keeping weeds from the crops. By that I mean that every dishonest business practice is based in dishonesty. It is impossible to foresee all the potential deplorable business practices. So you cut the bad practice at the root. The root is always in dishonesty. Hold businessmen to a high level of honesty and virtue. The higher the level of the business man the higher the level of honesty to hold him or her.

Lack of crime is like sunlight. When asked what a duke could do to prevent crime in his province Mencius said that the duke should stop being corrupt. Live by the laws and customs that he imposed upon the people. The amount of reasons to participate in crime are innumerable but men want to be good, it is when their personal good come against our morals does our morals give way. If we see our superiors being corrupt we loose our will to be virtuous. The best and most effective means, to promote crime, is to have corrupt public officials. There can be no better incentive for crime than that.

Markets that are subject to plunder is like salting the fields. When an industrialist is making investments in a country he or she must be confident that the government won’t plunder his or her largess. A fair shake is all an industrialist should get and all he or she deserves. If a gambler looses his shirt with the roll of a die, he is content. If he discovers the die were loaded, he is angry, and will not participate again. Plundering assets is like loading the die at a craps table. Those stolen from won’t come back and those that are not see the corruption and wisely don’t participate.

If a government keeps these principles in mind when they are considering regulating markets, like growing a plant, markets thus cared for will grow to be giant and healthy. Markets otherwise cared for may grow but can never reach the potential that it otherwise would.

Posted in economy | Leave a comment

Bailout’s Effects

Dear friends,

It seems to me that now that we have had a few days for the “bailout‘s” effect to sink into the markets the markets have reacted with a deafening stampede for the door. The “bailout” that we were told by the talking heads was essential appears to have been a waste of money. An 850 Billion dollar waste of money.

Now the governments of almost every country have tried to “Bailout” their markets. With the same success rate as the US government. Iceland is teetering on the verge of bankruptcy. Europe is nationalizing banks as fast as they can. England’s government has just spent almost a third of it’s annual GDP nationalizing banks today alone. Yet we keep hearing that the economy just needs a jump start.

If I have killed the battery trying to start a car. Then burned up a set of jumper cables. At some point I try something different. Maybe seeing if there is gas in the tank. Or checking the plugs. I don’t keep putting the juice to it. Especially before I have checked the oil. Maybe by putting more and more juice to the engine the government has damaged the engine. Every time I hit myself in the head it hurts? Maybe if I do it enough…

That is exactly what I worried would happen with this “bailout.” The government keeps proving to the jittery markets that there is  more of a problem than there was. Now however the problem has worsened because of the intercession of the government.

The only thing government needed to do was to buy new loans, keeping money flowing into the economy. By buying bad debts that some corrupt rich bankers screwed up has only helped the corrupt rich bankers. At the expense of everyone else. That is the definition of bad government. Government that works for one faction of society instead of society as a whole.

By helping the corrupt rich bankers protect their portfolio’s the government has done the rest of us a great disservice. The wealthy investment bankers are not loaning money as the government had ‘hoped‘. Hoping that people will be virtuous who have never demonstrated virtue is plain old stupid… stupid as a box of rocks, or maybe just corrupt legislators bailing out corrupt investment bankers.

But what can we expect from the corrupt politicians that we continue to elect. Then hold to absolutely no standard what so ever. The corruption is on display for all to see if only we open our eyes. The corrupt legislative branch of the US government is holding hearings on the failure of Lehman Brothers. The only investment bank that the government didn’t bail out. What the hell??? Wouldn’t it be reasonable to hold hearings on the other investment banks that the government did “bailout”? The ones that cost us money?  Like Fannie Mae, Freddy Mac, or Bear Sterns… oh, that’s right, they were playing ball with the corrupt politicians. They have nothing to fear, the corrupt politicians will protect them. Else the corruption will have the light of day shone on it. That is completely unacceptable… to the corrupt politicians!

I think it’s time to have a “special prosecutor” look into the Legislative branch of government’s role in this fiasco. What did the legislators know and when did they know it? Especially the members of the Banking subcommittees. How did their acts effect this problem. Have a good unbiased investigation into the whole affair. Let the Congress and Senate twist in the wind. They like to put others in the hot seat. Its time they were subjected to the same investigative powers they have subjected the executive to.

Like that will ever happen…

Posted in economy | Leave a comment

Perhaps a Better Bailout?

Dear Reader,

It seems to me that there is a better way to spend $700 billion dollars on fixing the economic mess than the one chosen by the US government.

The problem actually is that the trouble on wall street is drying up business, and personal loan access. The local bank or credit union would love to lend us money but there is none to lend because of the present mess. Without access to credit people can not do business or buy property, (chattel and real). Businesses can’t upgrade, expand, or sometimes even get through a lag in the business year. The banking system must function in the aspect of keeping the machine of the worlds economy supplied with fuel (money).

Taking this as the premise the government has chosen to free up the money supply by paying off the bad debts of large banks to shock the system back into working. This time it’s supposed to work better than the last few tries. This time it’s much bigger… So the logic goes.

Perhaps a better way would be to use the money to back new loans only. Set up a trust or some such instrument, fund it, and make the money available to the Fed at the going interest rate. Using the existing mechanism but bypassing the troubled spot. Troubled because of it’s own foolishness.

Let the problems work themselves out in the free market. As the system behind the government’s loan program comes back online, the government can reduce and stop altogether, it’s intercession into the market. This way those that were conniving will be ferreted out by the free market and the companies that were weak will be devoured by the strong. The system would emerge stronger. Capitalism will take care of the problems.

The government’s way will only let the miscreants escape the light of day. Their misdeeds will largely go unpunished. Escaping justice to connive again. Oh there will be some ginning up of public outrage at the pay of some of these people, but the worst offenders will undoubtedly slip under the radar, with the cloak of crooked politicians guarding them.

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Bailout Mania

Dear Reader,

It seems to me that the best thing that could come of the proposed “bailout” would be the vast devaluing of the dollar’s effect on the US balance of trade. To expect the “bailout” to be any more effective than the “bailout” of Morgan Sterns is folly. It will enrich a few people. Empower the Elite to a new level. And insure that the problem will grow.

NPR reported on Morning Edition that as much as 2% of the riskiest loans are in default. Those loans are spread over the entire collateralized loan instruments all over Wall Street. That doesn’t seem on the face of it to be such a problem only 2% of a small percent of the total loans. Especially since they are spread out. We must keep in mind that price is only a factor of opinion.

The value we place on anything is due entirely to opinion. If we see something as rare we value it highly. Gold for example. Yet gold has little intrinsic value, (industrial not withstanding for purposes of our discussion), yet it has great value. Water on the other hand has great intrinsic value. We must imbibe it several times a day else we die. Our very life depends on it. Yet it is cheap. The answer is in it’s perceived rarity. Were potable water rare it would be more valued than gold. Both examples rest on our opinion. We all know that opinion is as much based on emotion as on reason.

Market opinion has turned violently against any financial instrument that even may have the tinyest exposure to the sub prime market. Emotion has run wild. Cold cash will not quench emotional reactions. Cash only serves to prove the emotional, group think. As such, it will only add fuel to the fire. A fire that was intentionally set.

This is a political year. It is undeniable that an economic downturn would benefit one party over the other.
There are many powerful actors on both sides. These actors try to serve the interests of their respective parties. With no real consequences for their actions they move with virtual impunity. Only when the searchlight of public opinion is on them are they held to any standard at all. So it is with this arrogance these people have engineered this fiasco.

As I have stated long before now in my blogs and in the International Capitalist Party BBS the “unbiased” media has been talking down the economy for years. An economy that until this year has been growing at an unprecedented rate in recent US history. With the growth of the Chinese economy and subsequent rise in demand for commodities, linked with the real estate bubble bursting, actors had the chance to push the economy into what they thought would be a minor recession. Affect the election, make some money on the upturn, and get away with it again. The spark has turned into a conflagration however…

How do we find out if this is true or simply the raving of a lunatic. Well I am probably a lunatic… but, lets open our minds to the possibility.

We cannot rely on the consequent, the financial meltdown, it may have come about by some other means and begs the question. We must look at the antecedent, the conspiracy theory. It is undeniable that there are people of great wealth and power, power even to do just as I have iterated. It is also undeniable that some of these people have political positions that put them into one camp or another. Further they have historically never been held to task for anything. The question comes down to, are those people who have the power and the political motivation so utterly bereft of any concius that they would in fact put into action such a plan? We can then reason that if the motivation was sufficient, and the moral character deficient, such a plan would almost certainly be put into action.

So… what do you think? Are they morally deficient enough?

Posted in economy | Leave a comment

Lets Bail Out the Elite!

Dear Friends,

It seems to me that the money spent on bailing out the wealthy corporations would have been much better spent keeping people in their homes last year.

It’s economics 101. The problems started with people’s mortgages turning upside down and for a great many a balloon payment that they hadn’t counted on. (They planned to sell the house before the balloon kicked in). Were the money spent on a temporary program to keep people in their homes the vacancy rate in some neighborhoods would have been greatly reduced. Had that happened, the price free fall wouldn’t have been as large. Had that happened fewer people would have been caught in the pinch. Less mortgages in delinquency and fewer institutional repercussions.

Another positive side effect of this means to action is reigning in of the criminal or simply unscrupulous element. The price of housing would have stabilized at a higher level. The people who simply turned in the keys because they were too far upside down in their mortgage would have been dissuaded by the higher price level. This was undoubtedly a cause of further financial distress.

The worst thing the US government could have done is to protect the capital of the elite at the cost of society in general. Protecting the elite helps them but does nothing to address the underlying problem. I believe that the goal of right government is to protect the capital of society in the amalgam. In doing so right government encourages growth in GDP. Helping the elite escape the consequent of their folly only perpetuates the folly. Leading us into more and greater downturns in the economy.

Like Ricardo meant when he said that unless the corn laws be overturned the productive good of the Capitalists and the workers will go to the landlords. (Because the landlords controlled the apparatus of government)! It is my contention that when government serves the interests of one segment of society, instead of the good of all, it serves the interests of no one. The lot of all is reduced. It is only pragmatic to be an International Capitalist.

I think 45 billion dollars would keep a lot of people in their homes. The benefit would trickle up through society. Buoyed by the release of vacant homes, the housing market could adjust with less friction. In keeping people in their homes the crisis on the banking industry would have been reduced. The weakest of the pack would be hunted and killed by the strongest. Thus the banking industry would have been strengthened. Now it has been weakened with a cancer. The weak but politically connected have been protected.

The market will see the best course of action to maximize profits for themselves. They will take the course of action that has now been shown to be best at personal enrichment. Screw the stockholders, screw the customers, screw the whole planets economy, but, give enough money to the right politicians and your sins will be forgiven and you will be bailed out… Economists claim to believe that there are always tradeoffs…

Posted in Mercy | Leave a comment

Financial Meltdown

Dear Friends,

It seems to me that I heard on NPR’s Morning Edition last spring that some woman, I don’t know where, had bought a house at some high price and now that the market for her house has decreased she had stopped payments and is putting the money away for a new house after she is finally ejected from hers.

That is out and out fraud! She can make the payments but chooses not to because it will benefit her financially. By taking this course of action she is screwing over, all her neighbors, the stockholders in the bank she got her loan from, and society in general. Not only that but she was totally unabashed about it.

But, what can we expect? She was only taking her cue, or marching orders from her betters in Washington. Charlie Rangel apparently owes the IRS for $70,000 (seventy thousand dollars)? We’ll see what sort of punishment will be meted out to him for it. I remember a man and a woman in New Hampshire last year that didn’t pay the IRS, (probably for less than $70,000). They were surrounded in their house at gunpoint. Federal agents with sniping rifles aimed at them day and night. In the end they went to jail. Them and everyone they knew who admitted to being their friend. Well we’ll see how Charlie…

So with Washington being so totally corrupt why should we expect better behavior from the people? We are only a reflection of the elite. When we see the elite so totally unabashedly corrupt, saying things like “There is no overriding legal authority.” Calling place in a legal matter. What are we to assume is the norm for behavior?

Where will this eventually lead?

Perhaps to a financial meltdown?

Oh wait…it has.

Posted in Mercy | Leave a comment

News is News?

Dear Friends,

It seems to me that what passes for news now days is opinion and drama. It may be that people who consume the news want opinion instead of news. I personally like some information to go with opinion.

Jim Lehrer News Hour is about ten minuets news thirty minuets opinion. Outrage at what this or that person has said. But we don’t get to hear, in context, what the offender in fact did say. There was no coverage at all about the MILF gorillas in the Philippines, the unrest in Bolivia or the Canadian elections.

Instead coverage focused on whether or not one politician lies more than the other. I can tell you a fool proof way to tell when a politician is lying, look to see if his or her lips are moving. We all know that politicians lie. I would expect that a news organization worth it’s salt would at least give passing coverage to world events.

That is the reason that the American public is so often caught off guard when a major news event happens. John Q Public has only been watching weather people stand in the rain and wind of a hurricane telling us not to stand in the wind and rain of a hurricane. Hours of this mindless tripe. Then an allied government is attacked. The American people are aghast and exclaim “ why does this keep happening to us?” meaning why didn’t we know about this before it erupted into a full blown crisis. The Georgian crisis was brewing as far back as April, as I talked about in one of my BBS posts, http://incapp.org/yabb/YaBB.pl?num=1209305651 but the American people were caught off guard when Russia invaded Georgia.

Our “high quality” and “unbiased” main stream news organizations leave a lot to be desired. Perhaps they could try reading the Taipei Times. America’s news organizations could learn a thing or two about what is news and what is opinion. Then perhaps label them as such.

Of course the media provides what the market demands. Otherwise the firm providing the service will loose market share and eventually fold… Aren’t the major news media outlets in decline though?

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