World News (Fri 24th. June ’11)

US recessions past and present……and what to do about them~?



Links – 1. 2. 3. 4. 5. 6. 7.

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  • CSArichardo

    I guess we will see exactly how long the young will put up with being over taxed !  There is always increasing death taxes on the boomers !

    • http://overthepeak.com/wordpress/ Mystic

      There seems to be a strong reluctance to raise death taxes~!?

      • Stevo

        Won’t be much left to tax will there??  Not once those parasitic youngsters have drained their parent’s coffers and the care homes have taken the rest.

      • Carstars

        The theory is if you raise the taxes the economy would go in the toilet.  Odd thing is once the inheritance tax was reduced to 0% for everyone, the economy is going down the drain.   And when income taxes on the rich where 70% in the 1950’s and 1960’s it was the peak growth years for the US.   Maybe 0% taxes and a very week debt ladden government is the greenest thing possible.   As 99% will be living like slaves in debt and the remaining 1% will accrue all of the financial resources.  As the terminal end of unregulated ‘free’ financial markets, just like the game of monopoly is only a single person wins in the end and everyone else is bankrupt.    The economy will collapse – saving the planet from a CO2 hell. 

        Just think in the 1960’s the US having the highest income taxes in it’s history had booming industies, fighting a hot war in South East Asia, flying B-52 fully locked and loaded with H-Bombs 24/7 over the North Pole,  building and then flying men to the moon, completing the Massive Interstate Highway system, started the regulation of polution, wild life preservation,….what has gone wrong?    Maybe raise the taxes back to 70% for the very well off and solve some of the big issues.   Still would leave us with the over consumption problem…

        C  

        • http://overthepeak.com/wordpress/ Mystic

          Taxes go in the toilet, yes.

          Just because something was like something at some time…..don’t mean that it would be like it again today….Them things are a changin’.

          I think the main point, was on point – That is, that the world economy seems to be working out like a game of Monopoly.
          The difference being that you don’t `drop out`…….you have to work for the winners. 

          So (avoiding the taxes in the toilet), would `redistribution` be a go~?
          Yes, we could set the game back a while and then it would run on again towards a winner.

          My first thought would be that taxes would not work as any kind of `reset`…..I think it would have to be debt forgiveness.
          (which come with vast amounts of, `It’s not fair~!`)

          • CSArichardo

            It is all very complicated and yes debt foregiveness will be the ultimate part of the big reset.  Of course mostly US debt foregiveness after they convince everyone else that years of austerity are required first.

    • Anonymous

      Is there an inheritance tax in Europe?

      • http://overthepeak.com/wordpress/ Mystic

        Yes, there are inheritance taxes in Europe….varying degrees.
        (actual levels are complicated)

        One example I can give you – If I left you this house, on my death the French state would take two thirds. 

  • Stevo

    Charts 3 & 6 are almost geological in design.  The grey and blue areas in 6 look like a hardened rock defence against errosion.

    Being a computer person I could quite easily keep on working until retirement.  I sit in a chair, tap a few keys on a keyboard, and with every keystroke my knowledge and experience grows and out shines those young whippersnappers.  I could even work when I get to the point of sitting in a mobility chair with a urination bag suspended from it. 

    “I want your job!” shouts some member of the Sweet F’ All Generation. 

    “Feck off! Go flip a burger with your 14 year old Masters Degree in Zoology .” I respond.

    • http://overthepeak.com/wordpress/ Mystic

      You are sounding horribly deluded Stev0. 

      • Stevo

        You’ve picked the appropriate derogatory term there.  I’m working for a deluded organisation that manages thousands of deluded people using deluded concepts.  I produce the computer methods that manage this deluded process.  And I think there’s going to be a great expansion in delusion management into the future when the rest of the population also become customers.  The experience and knowledge I am gaining on delusion management systems could be quite marketable even when I’m 65 and shaking a stick at them young’uns.

        • http://overthepeak.com/wordpress/ Mystic

          If that is what you want….I hope it comes true for you.

          (it is my experience, that life never works out the way one thought/hoped it would)

          • Stevo

            The dellusion I speak of is the micro management of the public by health services and local councils.  Whilst i would be quite happy sitting in Spain, delluded people in the UK seem to want to pay me to provide them with the means of managing the delluded population.  It’s this manangement of the public which feels to me right now like a growing trend. 

            • http://overthepeak.com/wordpress/ Mystic

              ……and as everything spins out of control……I am sure they will try and grip harder.

  • Anonymous

    Dear Mr. Mystic:
     
    Per you last story regarding Social Security, and the ability of one group to extract wealth from another, isn’t that the underlying problem with socialism?  Wealth transfer schemes all involve taking wealth from one group and giving it to another.  Besides the obvious moral violations, this approach to “problem solving” always seems to lead to lots of people, whose only mistake it was to accumulate some wealth, taking it up the ass.  Sodomy is such an ugly crime, but socialists seem to have adopted it as THE key mechanism of their philosophy and methodology.

    • http://overthepeak.com/wordpress/ Mystic

      Why is sodomy such an ugly crime~?

      • Carstars

        Puritan roots of America likely has something to do with it.  Odd our nation drums a congressman out of office for sending messages on a telephone at the same time it is the center of the global porn business??? 

        “We the People of the United States, in Order to form a more perfect Union, establish Justice, insure domestic Tranquility, provide for the common defence, promote the general Welfare, and secure the Blessings of Liberty to ourselves and our Posterity, do ordain and establish this Constitution for the United States of America.”  

        This is the Preamble to the US constittuion.  Nothing in their against socialism.   In fact most of it is talking about the ‘common’ defense and ‘general welfare’ and ‘blessings of Liberty’.   The balance of the document tries to devise ways to weaken the powerful so they don’t oppress the balance of the population.  Trashes the idea that their should be any noble or special classes of people to rule over everyone else.  

        • http://overthepeak.com/wordpress/ Mystic

          Thanks for that.
          Yes, firing off programming (no thinking necessary).

          It is so easy to throw out the `accepted line`. 
          We may as well be robots most of the time. 

  • freemarkethippie

    sometimes these charts are kind of scary. The california employment chart looks like it’s going to dive even further. I thought we’d be in armagedon by now, but things seam to be puttering along. Makes me wonder if they are “medicating” people through tap water or something to keep people from going nuts. Crazy times we live in. I worry we are on the verge of a major world war. Some people are saying germany may be hit by a false flag attack. Who knows? I think the japan thing may have been man made to punish japan for nationalism or something. Given all that is going on in the world and what governments are capable of I think it’s a real possibility. Japan wants the US out and might warm up to china or something. So this could be a way for the US to warm relations by coming to their aid in a disaster they caused. I wonder the same thing about the indonesian tsunami. Devastate the most populous muslim country then come in and help out. Sick game really. When that happened some older russian lady told me on a train stop that god was telling her a bomb caused it. I really think there most likely weren’t gas chambers in nazi germany and the internet seams to be getting the argument out there. Makes me worry that the allies will have to start a major war to keep people in line and maintain integrity. I plan on doing a video about all this and the nwo stuff. I know people get put off when they here that, but it really seams like a lot of funny business is going on behind the scenes. I kind of think sometimes maybe suicide is the answer to some problems. Horrible to say, but it’s illegal here and in most countries. I just think it would be better to allow people to kill themselves rather than burden the system their whole lives. I just can’t stand all the social engineering and brainwashing that goes on. The youth of today are assaulted by the media and the educational institutions. Like this whole biological equality nonsense. Everything is the white mans fault. Jews can have exclusive schools for their kids, but caucasians can’t. Caucasians can’t have their one living areas. The government and ngos will subsidize blacks to get them into these areas. I can’t stand it any more. If they aren’t happy with their biological short comings just let them kill themselves rather than try and brainwash society into believing we are all the same. Brainwashing children. It’s a horrible agenda and I hope it doesn’t succeed. Anyway, a bit off topic, but somewhat related. 

    • http://overthepeak.com/wordpress/ Mystic

      *****NOTE********
      Do not comment as one great big slab of print………….if you want anyone to read it~!

  • The Dork of Cork

    Appreciate your vids
    Back in this Green Bog the GDP / GNP figures for Q1 2011 were published.
    GNP is a better metric for Irish economic activity as the multinationals repatriate the profits making GDP a joke.

    GNP @ current market prices : Q1 2007 = 40,650 million euros  
       @Stevo_disqus:disqus                                      Q1 2011 =  30,017 million euros
     @Stevo_disqus:disqus Thats a 26% drop !
    And the ECB is reducing base money !!!!

    • http://overthepeak.com/wordpress/ Mystic

      As I say….You better hope Germany doesn’t start over-heating, or that interest rate will go up as well~!

      Spunky effort by the Irish people to take this one on………Perhaps it is the only way, because them upper crusts have the upper hands.  Fair~!?   No…..but then it never was~!

      You have the same problem as the Greeks………..What the hell can you unite to demand~?

      Very, very tricky.
      Sorry. 

      • The Dork of Cork

        What to demand ?
        If the ECB does not flood the Euro system with cash soon and kill this enormous Euro private debt problem we are better off floating the Punt and hoping others will sink it.

        • http://overthepeak.com/wordpress/ Mystic

          The Punt punt is a very delicate calculation………but anyway, it will not be possible to sell that to enough people.

          I know that sounds like a really poxy answer, but it am a fact.  As much as a fact as the debt.

          (I also note that the fat controllers are now indirectly being paid via Brussels~!)

          • The Dork of Cork

            Yes I blame Yes Minister for the fad of outsourcing civil servants – whatever money saved in the short run has been gobbled up by usurious rates and bad advice in the long run.
            Just looking at private sector credit in Ireland – it peaked in the Autumn of 2008 at just over 400 Billion and is now roughly 76 billion less with not enough Goverment money to fill the hole.
            This interferes with the effiencent transaction of money in its medium of exchange function causing loss of productivity although perhaps less malinvestment.
            I can think of a few projects that need to be developed especially in a economy with so much slack but everything is on hold here which is not sustainable.
            I know you don’t like conspiratorial memes but Merrial Lynch has been replaced by Rothschild as the Government’s Bank “advisor” in 2009 and things have gone from bad to worse here.

            • http://overthepeak.com/wordpress/ Mystic

              I know what you mean………but quite frankly, it would take something `miraculous` (no, not goldman sachs) to sort things out (without vast amounts of pain shared around the `little people`). 

  • Anonymous

    Evening Nick.
    Been a bit busy lately, but had the time to properly view the links today….

    I have been looking at the Bar charts in link two, and something is immediately apparent…
    Since the Eightees, although the US have had recessions, they have not had such a negative impact on GDP…

    What is also interesting, is the same graphs show a “smoother” peak and trough spread since this 
    Eightees period as well, with lower highs and higher lows….

    All the Gov’t and central bank “meddling” appears to have created a more stable albeit more feeble economy, ( up until
    2008 obviously )….

    There are two ways of viewing this I suppose….

    Either the intervention is good for stability, but they got it wrong this time and were caught with their pants down….
    Or, all the past intervention actually led the foundations for this crisis….

    The truth, as always, is probably somewhere between the two..???

    • http://overthepeak.com/wordpress/ Mystic

      Hello Sned,
      I think it may be worth adding this to your observations……..that…..
      Every time they meddled…….people took on more debt.
      That’s it. 

      • Anonymous

        Yes, I neglected to consider that point, you’re right there…

        The meddling was designed to encourage more leverage of the people….

        This points to “all the past intervention laid the foundations of this crisis” I suppose…

        • http://overthepeak.com/wordpress/ Mystic

          Same in the UK (and other places).
          The Western economy has been going downhill since (what shall we say~?) 1972.
          The computer decade was real……but the rest has been borrow and spend (and hope it all turns out alright).

          It does not look like it will all turn out alright~!
          (not without another quantum (in the pub, not scientific, use of the word) leap, in……what could it be~?……Energy I guess~!)

          • Anonymous

            I am rather fond of those horse and carriage set ups….

            But on a serious note….How we address the energy problems with respect to heating, wholesale transport and farming etc without returning to slavery and burning down all the forests I don’t know….

            What I feel, is a gradual shift toward green, maybe nuclear and reverting to coal methods of electricity production, but this will probably not ( I am sure you will agree ) be anywhere near close to being as universally versatile and abundantly available ( if that is the correct phrases to use ) as oil and gas have proved to be….

            Still, any major shift may prove to be the catalyst for productive Gov’t deficit spending on new infrastructure..!!!???

            Think of all those projects waiting to be funded…. And all for “the people”…!!!

            • http://overthepeak.com/wordpress/ Mystic

              We have already done well `covering the bases` (what a quick run round we have done).

              So, let me start another go round with – “And where will the money come from for all these projects~!?”

              • Anonymous

                The Magic Money Tree…..????!!

              • Anonymous

                I assume you realised I was referring (below) to MMT with my Magic Money Tree…??
                I also assume you were angling at a different response from me…??

                What is on you’re mind Nick??
                Are you “seeing” a future stumbling block ( maybe in Eurozone ) that you were hinting at…???

                • http://overthepeak.com/wordpress/ Mystic

                  Stumbling block~!?
                  We just did one lap and started round again……The people who count haven’t even started to warm up for the first lap yet~!

                  • Anonymous

                    Ha ha, yes, I see……

                    Maybe they need a “crisis” to get the blood going….!!! ???

  • Windcutter

    Here’s a remarkable action.

    Japanese oldies are marching in to the radioactivity to help clean up the nuclear mess FREE OF CHARGE. It is inconceivable that this could happen in the UK or US. Some ‘concerned’ group would take it to the courts and get an injunction to stop ‘em.

    http://www.bloomberg.com/news/2011-06-23/pensioners-to-help-clean-up-nuclear-plant.html

    Aaah, but doesn’t it give a nice warm feeling inside to know that someone somewhere in the UK is ready to spring in and protect us from ourselves and others, that is unless you are male, white, middle class, employed and a saver. YOU have to PAY!

    • http://overthepeak.com/wordpress/ Mystic

      I read that a couple of weeks ago…….and have thought about it a lot since then.
      It brings up so many questions.

  • Windcutter

    Fantastic progress in the States.

    http://www.courant.com/news/politics/hc-malloy-must-cut-0625-20110624,0,7927579,full.story

    Make a decent offer under extremely difficult economic conditions that everybody has to be aware of, the unions get in the way and so 7,500 jobsworthies will be fired. Great.

    Wonder if the UK government could make Dannel a job offer?

  • Windcutter

    And here’s the result of the debts owed to the private sector by the public sector, which is funded by taxing the private sector, which is going tits up because of high taxes and unpaid bills. Geese and golden eggs comes to mind, no more golden eggs being laid in the private sector, the public sector is killing all the geese.

    http://www.bloomberg.com/news/2011-06-24/illinois-stiffs-vendors-from-mortuary-to-ibm-as-4-billion-debt-piles-up.html
    “In Illinois, you’re never too big or too small to get stiffed by the state, which is $4 billion behind in its bills.”
    People just have to get used to spending what they can afford based on today’s conditions and not some rosy forecasts of never-ending double figure growth.