In a world full of niggas

  By Mystic | May 23, 2013 - 07:04 | , , , ,
8 Comments

This financial crisis was brought on by things that started in the 70′s.
As in – People, back then, did bad things; because they thought the `bad things` were all they could do to get out of thier bad situation.
It would be fair to say, that the `bad situation` they were in, was brought on by other things … that were probably bad.
That is to say – This financial crisis is not just an odd `one off`, brought on by a strange confluence of various swirling, modern, temporary, bad things.
This has been a comin’ for a long, long time.

Let me get my crayons out again -
Let’s base this round `the middle income trap`.
Back in history, some in the West got through the `mit` by various methods.
Since `history`, other countries have officially gone through the mit (off the top of my head, I know I should check, by my head is full of can’t be bothered) South Korea, Taiwan, a couple of places you’ve never heard of, oh … and our old friends Portugal, Ireland, Spain and Greece.
Here, it should be clear, that getting through the mit does not mean life will be roses from then on in.

I remember now that I should have spoken of Argentina first.
There was a time that it was projected to be, if not as big a thing as the US, but not far off.
What happened to them~?
They did not get through their middle income trap (just like a hundred odd others didn’t either).

A big question, about ten years ago (actually they still go on about it (re: INET Hong Kong conference)) was/is … “How will China get through their mit~?”
The answer from me is simple … they won’t~!
Well, not only will China not get through, neither will India, Brazil, Russia, Indonesia, Turkey or any other country you want to list. … And, speaking of lists – The countries that were ticked through, will all fall back out … It has started with the PIGS and will eventually pull Taiwan and South Korea back into the common muck.

One way of saying it, is that to get through `mit` you have to move into a service based economy (which I call the `hairdresser economy`). It is a happy little place with everyone living in a mutually loving society (or something like that). It might be necessary that millions of poor people in other countries are willing to sweat buckets for your local currency bits of paper (but that is all part of their `growing` into a big mature country).

Let’s take a break -

It all goes into a bit of a swirl here … something like – Them yellow niggas would make us stuff in exchange for our paper,, but we didn’t even have us enough paper to give ‘em,,, So we had to get us some more paper.
Where does the paper come from~?…The `paper shop` duh~!!
So we trooped on down to the local paper shop and got us some piles of paper, swapped it between each other for to buy houses and spent the rest on yella nigga shit. Say what~!

The world is full of niggas … and they will work for paper.
If you got you some good paper, then you got you some good niggas.

Nice Lord Turnups from yesterday is likely to wake up dead one day, if he keeps on pointing out that even `good paper` is … after all … only paper.

Da niggas should really demand `quid pro quo` for their blood sweat and tears; but they dont no wat dat iz, doo dey… duh~!

OMF

  By Mystic | May 22, 2013 - 07:29 | , ,
6 Comments

Six years in and not many `experts` have impressed me.
Most of them are so close to their particular detail, that they miss most of the rest of the picture.
Others wear their pet `meta concept` like GoogleGlass and refer to it constantly. People like this (most all economists and politicians) fail to `the other side` of anything/everything.
Adair Turner, for me, has been a stand-out star.
Luck has been with him. He got the big overseer job when things had already gone bad … so he did not have to play defensively. He got the job in England, where it was in-your-face obvious that it was the banks that had screwed up. This got him zeroed in on the big problem of `where does the people’s money supply come from` … and he had not been brain-controlled into not talking about it in public.
He never said `fresh-air-money`, but would go with things like `issue new credits`.
He was put, by circumstance, into the position of being incapable of ignoring the clown that was running round everyone else and tweaking their noses.
For me, what he is doing in this lecture is saying – “Central bankers are now being forced into new, wild behaviour … almost like they are clowns … Let’s take some time to work out the difference between saving the western world and running away with the circus~!?”
ADAIR TURNER
DEBT, MONEY AND MEPHISTOPHELES: HOW DO WE GET OUT OF THIS MESS?
CASS BUSINESS SCHOOL. 6th. February 2013

The speech. 46 page pdf.

The slides. 73 page pdf.

Fixing It #17 – Debt, Debt Flows, and Debt Acceleration

  By Richard from Canada | May 21, 2013 - 16:23 | ,
2 Comments

I thought I would create a Mystic inspired table. You know that debt is really about keeping money lubricated and not stuck, but that debt itself just sits there and is stuck, although well lubricated and ready to move. The debt flow is the “GO” that utilizes the lubricated debt and keeps it moving. The debt acceleration is the “GO GO Juice” and includes asset bubble creation.
Flows

So to fix it requires another asset bubble. Maybe more than one. Bond bubble, stock market bubble, housing bubble, gold bubble, highway construction bubble, education tuition bubble, green energy bubble, etc?!

Big Daddy

  By Mystic | May 21, 2013 - 09:42 | ,
5 Comments

Japan, as we know, is the `one to watch`. But … while waiting for something to happen, I’ve done me some thinking about this JGBond Vigilantes meets MMT.
Basically, it is not a fair fight, the government/CB can win by using super powers. The question to ask may only be, will the audience get together and beat the shit out of ‘em for cheating~!?
And here, I think the answer is a clear – NO.
So, JapGov wins … round one (the first twenty year round).

This win will reveal a bigger, older picture – The old Keynes vs. Hayak fight.
The Japanese Government will be Japan. No private investor will jump down, turn around or pick a bail of cotton without the nod from the Big Daddy.
So, JapGov pays for bottoms to be whipped and the bottom whippers buy food and pay taxes … and I believe the Japs are the only people in the world who could make a success out of this. (their main problem would be buying in foreign labor). Basically, if it looked like Big Daddy had it all under control, their only problem may be the Yen getting stronger again.

What we would have is the price of money at zero.
The chance of making money out of money at zero (the rentier euthanazed).
Money is seen as a token for swapping shit.
The government gets to say who swaps what shit with what shit.

They all live happily ever after … or, until China invades them for being smarty arsed bastaaaards~!

What I is….

  By snedmeister1 | May 19, 2013 - 15:07 |
13 Comments

 

Hello all.

I recently found a remarkable documentary from the BBC ( which I have added here via “The secret You” link at the bottom ), in which the question of what or where the “I” is, was approached.

Many of you here would have done this topic to death and I am aware that it is not economically related, but I was inspired to post the link here for you to ponder or discuss.

In the past, I have regularly avoided the ‘I’ subject, mainly due to an opinion that it doesn’t matter one way or the other – I have the perception of myself with an ability to choose, and that was always good enough for me.

Watching this documentary however, was quite an interesting experience. Some of the experiments really do make you think about consciousness and free will.

For those that are new to the subject, it is easy watching.

For those more rehearsed in the field, you may or may not have bits to add or disprove..??

 

The secret You

 

Enjoy,

Sned.

It could work~!?

  By Mystic | May 18, 2013 - 09:16 | ,
13 Comments

I think I see the big picture something like this -
The Great Depression was because money couldn’t make enough money investing in the real world.
The real world was stuck on the farm, with food products hitting their demand ceiling.
By 1950 the shift had been made to manufacturing. Investment was worth while, with no demand ceiling in sight.
Today, manufacturing is in the same place as agriculture was a hundred years ago.

On the strict understanding that people will always have to work for their keep … what is to replace manufacturing~?
Something else may turn up, but all I can think of is `services`.
Here we have a problem – Will investing in services ever be `a good investment`~?
I don’t know why not, but I think not.
This means that countries that want to stick with manufacturing and/or capitalism are going to run into a brick wall.
Not everyone can win the export game (and anyone who tries, will be on a race to the bottom, when it comes to wages).

Services must be the way to go … but who will pay~?
The answer must be – the state.
Where will they get the money from~?
The answer must be – the central bank.
States will expand education and health-care sectors and the CB will pay with fresh-air-money.
It could work~!?