tag:blogger.com,1999:blog-64192237944006248802024-02-07T19:53:10.967-08:00Not a ToryLand value tax supporter. Also, I don't like the Conservative party very much.Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comBlogger43125tag:blogger.com,1999:blog-6419223794400624880.post-53521892213525902962016-09-09T12:49:00.002-07:002016-09-09T12:49:32.757-07:00Grammar schools<div style="background-color: white; color: #222222; font-family: -apple-system, "San Francisco Display", "Helvetica Neue", Helvetica, Arial, sans-serif; font-size: 14px; line-height: 20px; margin-bottom: 0.357143em; padding: 0px;">
According to the unimaginative left you can only have Grammar schools with a single 11+ exam design. There are no possible other designs that allow academic individuals to be schooled in a school focused solely upon academic achievement. And that's Hitler so no to Grammar schools.</div>
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Well no. We can easily design a sensible Grammar school system.</div>
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Firstly the whole test is a massive pain and you do have to spend ages preparing for it. It would be much better if the primary system started to stream earlier and individuals moved up and down between the schools.</div>
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So you then have a virtual comprehensive system with streaming.</div>
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But to get anywhere further down the achievement scale you have to spend <em style="font-weight: inherit; margin: 0px;">more</em> resources on the middle layer than you would on the high academic achievement grammar schools.</div>
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Grammar schools should have class sizes of 40 because you can efficiently teach cleverer kids in that sort of group size. Class sizes up to what you have in university would make it less of a leap. That then allows you to get group sizes down to <em style="font-weight: inherit; margin: 0px;">15 or lower</em> at the other end of the scale and make a real difference.</div>
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The failure of comprehensives was simply to merge the academic grammar schools into secondary moderns to make the averages look better. They never fixed the problem. They just masked it.</div>
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That's the real problem - why did the secondary modern concept fail the middle tier so badly?</div>
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But despite that the leftist approach of 'all must have prizes' and "let's bring half the nation down to the average' (I know this is impossible, its called a joke) is insane. T<span style="color: #333333; font-family: "Guardian Text Sans Web", "Helvetica Neue", Helvetica, Arial, "Lucida Grande", sans-serif; line-height: 22px;">he Tories have been somewhat critical of the 11-plus exam, but not the funding inversion. So if you want good policy come to this blog.</span></div>
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<span style="color: #333333; font-family: "Guardian Text Sans Web", "Helvetica Neue", Helvetica, Arial, "Lucida Grande", sans-serif; line-height: 22px;">You would have thought this was obvious. </span><span style="color: #333333; font-family: "Guardian Text Sans Web", "Helvetica Neue", Helvetica, Arial, "Lucida Grande", sans-serif; line-height: 22px;">It's the same division of labour point the Adam Smith made - two specialists combined will always outperform a set of generalists.</span></div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-47954722163766230022016-08-26T04:48:00.002-07:002016-08-26T04:48:17.495-07:00So remember all the 'referendum causing uncertainty' in early 2016If as the Remainers now say, the UK's hasn't exited the EU yet, and the (presumably) negative effects of Brexit will happen then, what of all the claims that even calling the referendum would cause a crash?<br />
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As a commentator at Bill Mitchell's blog puts it:<br />
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<span style="background-color: white; color: #333333; font-family: "Lucida Grande", Verdana, Arial, sans-serif; font-size: 12px; line-height: 24px; text-align: justify;">"No, no, no. You cannot have it both ways. You cannot simultaneously have an orgy of propaganda and misinformation on a daily basis by the mainstream media outlets and the ‘serious’ financial press about the already occurring deleterious effects “of Brexit” (even though it has not (yet) taken place) AND claim that the ‘serious’ argument in favor of remain by ‘serious’ people (economists, politicians, financiers) was ONLY about what would happen AFTER the actual official exit of the U.K. from the EU AND assuming that the U.K. government will take no appropriate fiscal and monetary actions (i.e. expansionary ones) to counter-act any reduced injections or increased leakages that may result from no longer being a member of the EU."</span>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-82381071273829878332016-07-28T21:20:00.001-07:002016-07-28T21:20:55.732-07:00What the USA needs... in 2020<div style="background-color: white; color: #333333; font-family: 'Guardian Text Sans Web', 'Helvetica Neue', Helvetica, Arial, 'Lucida Grande', sans-serif; font-size: 14px; line-height: 22px; margin-bottom: 0.5rem;">
Now that Bernie has flopped I thought I would that I would make an idealistic series of policy proposals for the good old USA.</div>
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They have to abandon the current destructive line of thinking in economics, regulate the banks and recognise government is only constrained by real resources. Until they sort out the material problems nothing else matters really.</div>
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<br />It comes down to this. The U.S. government can give direct legal commands to the private banks to create or destroy credit and private banks are required to execute them. They can also impose tax obligations that can be required to be paid in dollars on pain of some punishment (e.g. jail time.)</div>
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If there are resources free in Dollars, the U.S. (federal) government can purchase them.</div>
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<br />And that's fundamentally all you need. Everything else (Fed, govt bank accounts of its own IOUs, messing with interest rates etc) is smoke and mirrors and stupid voluntary constraints hiding, complicating or crippling(!) this simple operational system.</div>
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<br />The general line should be that increased spending is to be ‘paid for’ by increased production, and that any price rises will be treated with ‘competitive measures’ – the state investing to set up competitors that price compete, breaking up cartels or increased corporate taxation in extremis. Get that right and you’ll go a long way before you actually fill anything up. Just regulate the bloody companies and 'stir the pot' via sharing IP and so forth. It is not hard.</div>
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<br />If you go to the hairdressers with a newly minted note, do they turn you away or work longer/harder/faster to cut your hair and earn that note?</div>
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<br />The resources are generally there. The estimates of output gaps are wildly low because of the way classical economists think, and in fact we run economies practically on tickover because of the way they see things. Certainly in the service sector. And are they really running manufacturing on maximum overtime?</div>
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<br />They also need to introduce 'asset side' regulation of banking - basically if you make loans outside of certain very narrow criteria they are unenforceable. So make criteria that serves the public purpose.<br />In my view the *only* reason we should pay bankers to do anything is if they can demonstrate the skill of underwriting capital projects against a prospective income stream.</div>
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<br />In simple terms this means somebody going into a bank with a proposal that requires a certain amount of money. The bank staff considers whether the prospective income stream proposed to repay that money is adequate to repay the loan and pay the wages and costs of the bank.<br />Note that there is no asset collateral involved in this process.</div>
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<br />The way I would narrow banks is to offer them an incentive - an unlimited cost free overdraft. 0% funding costs. In return they must drop all the side businesses and just do capital development lending on an uncollateralised basis - probably in the form of simple overdrafts. In other words they become an agency businesses delivering state money to those that require it.</div>
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<br />That way instead of banks not lending to businesses they *only* lend to businesses and drop all the crap. That also frees up a bunch of bright people working in the financial sector and a huge amount of space inappropriate private lending took up for the government.</div>
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<br />Finally, they need to offer full employment and universal healthcare. The private sector's job is not to create jobs. It is to automate and get rid of them. To eliminate BS jobs and replace people with machines:</div>
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<br /><a class="u-underline" data-link-name="in body link" href="http://www.3spoken.co.uk/2015/11/job-guarantee-jobs-for-people.html" rel="nofollow" style="background: transparent; border-bottom-color: rgb(220, 220, 220); border-bottom-style: solid; border-bottom-width: 0.0625rem; color: #005689; cursor: pointer; text-decoration: none !important; transition: border-color 0.15s ease-out;">http://www.3spoken.co.uk/2015/11/job-guarantee-jobs-for-people.html</a></div>
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<a class="u-underline" data-link-name="in body link" href="http://www.3spoken.co.uk/2015/11/job-guarantee-jobs-for-people.html" rel="nofollow" style="background: transparent; border-bottom-color: rgb(220, 220, 220); border-bottom-style: solid; border-bottom-width: 0.0625rem; color: #005689; cursor: pointer; text-decoration: none !important; transition: border-color 0.15s ease-out;"><br /></a>Living wage jobs in local communities by sampling what needs doing. In addition to things such as open source programming.</div>
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<br />Zero unemployment and underemployment must be the goal. Anyone who wants a Job must get one. Only frictional (voluntary, between jobs) unemployment must remain.</div>
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<br />Further America can lead the way on pharmaceuticals. The state can fund whatever drug research is required, and then issue the results on an open patent.</div>
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<br />There is no need for large pharma companies and private intellectual property. In fact as drug development gets more and more risky inevitably it will have to be socialised.</div>
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<br />That then leaves manufacturing and distribution of the drugs as the way the private sector can deliver drugs to the medical system.</div>
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So who is going to sell it then?</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-807087793489640942016-07-11T04:15:00.000-07:002016-07-11T04:15:46.505-07:00I forgot this was still going on<a href="http://www.bbc.co.uk/news/uk-wales-36754836"><span style="font-family: inherit;">More tata steel news</span></a><br />
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<span style="font-family: inherit;">And more talk of nationalisation.</span><br />
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<span style="font-family: inherit;">Steel making from iron ore is a very silly thing to be doing in the UK. We no longer have supplies of Iron Ore and there is sufficient diversity of steel supply from elsewhere. So why is there a difference between importing steel and importing the ore? UK steel works should be about recycling steel that is already here – and it should be near fully automated.</span></div>
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<span style="font-family: inherit;">But what should the steel workers do then? Simple - you just find an alternative job that is suitable. My suggestion is that the engineering the steel workers should be doing is constructing automated housing production lines – creating energy efficient houses that can be simply bolted together on site.</span></div>
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Your thoughts, dear readers?</div>
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Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-38233447036978943632016-06-30T06:47:00.002-07:002016-06-30T06:47:13.620-07:00Richie has banned me from commenting on his blog<a href="http://www.taxresearch.org.uk/Blog/2016/06/20/the-states-may-dump-trump-but-we-cant-exit-brexit/#comment-758463">Here</a><br />
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"With the greatest of respect, if you really think I am not about effecting change then I have no interest in reading any more of the nonsense you have offered over a long period</div>
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You are the second long term contributor to hit the spam list today"</div>
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Savage.</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-60208400299135271862016-06-28T06:12:00.001-07:002016-06-28T06:12:15.220-07:00Brexit strategy - be aggressive<div style="background-color: white; color: #333333; font-family: "Guardian Text Sans Web", "Helvetica Neue", Helvetica, Arial, "Lucida Grande", sans-serif; font-size: 14px; line-height: 22px; margin-bottom: 0.5rem;">
<a href="http://www.independent.co.uk/news/uk/home-news/article-50-brexit-eu-referendum-result-german-eu-latest-news-leave-european-union-a7105946.html">These people are in no position to demand anything</a>.</div>
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The longer we leave it, the better. We take our time. We make our plans. We talk to the *opposition* leaders in the EU countries about how best the UK can help them get into government. We can talk to leaders around the world and get deals in place to start once Brexit is sorted.</div>
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Generally in this negotiation, if the EU wants something, then the UK is probably best advised to do the opposite.</div>
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With elections in France and Germany next year, I would ask for discussions with Hollande and Merkel and if rebuffed, start talking to the political opposition in those countries instead. Why talk to the monkeys when you can talk to the organ grinder?</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-64913057216502320142016-05-25T14:11:00.002-07:002016-05-25T14:11:24.736-07:00All EU studies I have seen so far get the null hypothesis wrong<div style="background-color: white; border: 0px; color: #404040; font-family: 'Open Sans', sans-serif; line-height: 24.3px; margin-bottom: 24px; outline: 0px; padding: 0px;">
<span style="font-size: large;">All the studies get the null hypothesis wrong. They fail to separate out those who would get a Visa with those who wouldn’t. So they are simply wrong.</span></div>
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<span style="font-size: large;">Leaving the EU is only about the latter category of worker.</span></div>
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<span style="font-size: large;">So unless the remainers can provide a study on that category, then they are useless in evidence. Because the issue is not migrants *as an aggregate* as the whole EU debate is about migrants who wouldn’t get a Visa.</span></div>
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<span style="font-size: large;">Unlimited immigration of *unskilled* workers may well suppress the wages, housing and public services available to equivalent skilled (and unskilled) workers in the UK.</span></div>
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<span style="font-size: large;">The trick the Portes of the world use is to aggregate the skilled and unskilled immigrants together and *refuse to talk about that set of people that would be excluded outside the EU* – those who wouldn’t otherwise get a work visa.</span></div>
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<span style="font-size: large;">We don't need *unskilled* immigration, and we don't necessarily need the skills of the EU.</span></div>
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<span style="font-size: large;"><br /></span></div>
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<span style="font-size: large;">We need access to a world market for skills on an equal basis. The UK immigration system should work like most in the world - a skills based system.</span></div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-29335513771415631962016-03-21T14:41:00.001-07:002016-03-21T14:41:03.042-07:00Donald Trump has wonHe's dragging people down to his level.<br />
<br />
<a href="http://www.nbcnews.com/politics/2016-election/elizabeth-warren-feuds-donald-trump-n542816">Here</a>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-13093330491455664892016-03-17T10:15:00.003-07:002016-03-17T10:15:43.796-07:00Excuse me, but who the fuck do these people think they are?<a href="http://www.independent.co.uk/news/uk/politics/george-osbornes-biggest-spending-cuts-are-probably-yet-to-come-ifs-warns-a6936181.html">Here</a><br />
<br />
From the supposed 'public finance experts' the IFS. Perhaps these people should fuck off instead of forcing us into a depression?Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-31206112395202786742016-03-12T14:06:00.003-08:002016-03-12T14:06:58.212-08:00A reply to Mark Wadsworth - on MMT and designing land value tax<div>
MMT does *nothing more* than sweep the excess savings of the non-government sector back into the circulation because, contrary to popular belief, it doesn't do that automatically. To clear 'naturally' you have to have a depression and capital destruction.</div>
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So if government budget deficits are 'dangerous' and 'debt is still debt' then so is non-government sector borrowing and spending from saving. But apparently the mainstream are comfortable with that.</div>
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You have to see excess saving as voluntary taxation. So the correct calculation for the government injection is</div>
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Government Spending - Taxation - Excess non-government savings</div>
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which will be zero.</div>
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The anchors are the automatic stabilisers which ebb and flow counter-cyclically. Job Guarantee enhances those to provide superior price anchoring capacity - flattening the inflation curve as the economy tightens. </div>
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So in terms of circulation, the auto-stabilisers reduce government spending and increase taxation volume automatically as the economy heats up. </div>
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And we know they work, because they are doing their job right now.</div>
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<br /></div>
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So the trick of policy is to set main taxation/spend policy relatively tight and let the auto-stabilisers loosen it to the correct level.</div>
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The way I would do this in practice is to create a counter-cyclical fiscal authority (CFA) as a separate balance sheet from HM Treasury and reportable to parliament as a whole. HM Treasury remains as a creature of the Executive as it is now.</div>
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Once you have a tri-party design then the Executive budget *can* be required to balance - it must tax to spend on discretionary projects. To borrow it must apply to the central bank with a project plan just like you or I would have to.</div>
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CFA 'funds' the automatic stabilisers, via an overdraft with its central bank subsidiary, and possibly it could be given discretionary powers to vary a land value tax by a certain percentage for fine tuning (chargeable to the freeholder, payable by the mortgage chargee if there is one).</div>
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So you have the central bank on a ZIRP - which removes the incentive to excess save for income purpose.</div>
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You have the CFA fine tuning the gross taxation policy via a land value tax, and letting the auto-stabilisers do the main work.</div>
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Then you have the Executive taxing and spending via the Treasury on their political goals.</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-51009741610084586952016-02-26T07:27:00.004-08:002016-02-26T07:27:36.480-08:00Comedic interruptionI David Cameron, do not subscribe to your "good and evil" I am above such puny nonsense NOW PUT ON A PROPER SUIT!Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-22593098037865764622016-02-19T14:10:00.002-08:002016-02-21T14:39:40.253-08:00Meet the new boss, same as the old boss<a href="http://www.smh.com.au/federal-politics/political-news/turnbull-warns-property-prices-will-fall-under-labor-negative-gearing-policy-20160219-gmyq2k.html">Turnbull here</a><br />
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Home owners across the country will see the value of the family home "smashed" under Labor's "very blunt, very crude" negative gearing policy, Prime Minister Malcolm Turnbull has warned.</div>
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In a blistering political attack on the opposition's policy, which was unveiled last weekend and which restricts negative gearing to new properties while also reducing capital gains discounts available to investors, Mr Turnbull warned " this should put concern into the minds of every single house owner".</div>
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And in a clear sign the federal government is prepared to launch a massive scare campaign in the lead up to the 2016 election over the Labor policy, which is designed to save $32 billion over a decade, Mr Turnbull warned "Bill Shorten's policy is calculated to reduce the value of your home".</div>
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"The Labor Party's negative gearing policy and its wind back on the capital gains discount – its increase in tax on capital gains – is a very dangerous one. It's been very, very poorly thought out," Mr Turnbull said.</div>
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"The consequence of it will be a decline in property prices, every home owner in Australia has a lot to fear from Bill Shorten."</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-89115233196049987352016-02-01T13:55:00.003-08:002016-02-01T13:55:51.904-08:00Grexit. Done.You get a new currency in Greece the instant the ECB closes the Greek central bank’s TARGET2 account. At that point all transactions across that interface will simple fail.<br />
<br />
So all you need to do is put in place correspondent banking arrangement with commercial banks to do the *exchange* between Greek Euros and German Euros. And that simply requires a bank with a leg in both camps – a reserve account with Greece and a reserve account elsewhere in the Eurozone. Or a correspondent between two banks that achieves the same thing.<br />
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The problem here is a bunch of people over thinking the problem. Get down to the essence of the issue – exchanging Greek Euros for German Euros in a float situation.<br />
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Then you keep everything else *exactly the same as it is now*.<br />
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Done.<br />
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Of course the Greeks won't do it.Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-31455294626956758742016-01-24T06:05:00.002-08:002016-01-24T06:05:35.988-08:00Logic<span style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;">Let's see now. Russia "invaded" Ukraine although it did not send its troops across the border. (The Russian force in Crimea was there by prior arrangement a base leased from Ukraine.)</span><br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;" /><br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;" /><span style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;">The US and Turkey, which have declared the intention to overthrow the legitimate government of Syria, have cross a national border with regular troops and equipment and set up bases there, and it is not an invasion.</span><br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;" /><br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;" /><span style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 25.2102px; line-height: 32.1279px;">Right.</span>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-9983283820093553362016-01-05T12:08:00.003-08:002016-01-05T12:08:47.528-08:00Dave on housing<a href="https://www.youtube.com/watch?v=BvfhjFf_oTA">Umm...</a>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-68076978715539851192016-01-02T18:35:00.001-08:002016-01-02T18:35:07.480-08:00MMT - Banking in a nutshell<div style="background-color: white; color: #222222; font-family: verdana, arial, helvetica, sans-serif; font-size: 14px; line-height: 1.42857em; margin-bottom: 0.357143em; margin-top: 0.357143em; padding: 0px;">
Firstly a bank creates a loan. So the loan is to person A, and firstly the deposit is to person A as well. At that point the bank is still fine and still fully funded.</div>
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What happens then though is that person A wants to pay person B.</div>
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If person B is at the same bank, then there is NO problem. The deposit is switched to person B and the bank is still fully funded.</div>
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The fun starts when person B is at another bank :o</div>
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What has to happen that is that bank 2 has to take over the deposit in bank 1 from person A. That increases the assets of bank 2 which then creates a new deposit for person B.</div>
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That’s how payment works. Somebody has to take the place of the original depositor in the source bank before you can create anything in the target bank.</div>
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Of course at that point bank 2 is taking a risk on bank 1 and will expect to be paid by bank 1 an interest rate to compensate for that risk.</div>
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And it also means that if bank 2 isn’t prepared to take a risk on bank 1, that nobody in bank 1 can pay anybody in bank 2.</div>
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It’s this latter point that caused the creation of central banks – to make sure that the payment system clears. The theory being that all the banks trust the central bank ‘in the last resort’ and therefore the central bank can ensure payments always clear.</div>
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So the cost of funding is really the payments bank make so they can be part of a payment clearing system.</div>
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It is the same with cash. Reserves are debited and a deposit no longer exists.</div>
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Central banks can then add regulations and drains, reserve ratios, capital ratios, discount windows and all sorts of other things to increase the cost of funding. This is ‘discipline on the liability side’ to try and limit what banks lend for. It doesn’t really work as we saw in 2008 – because the first thing that fails is the payment system.</div>
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MMT suggests that this is counterproductive and that the central bank should just provide the liabilities necessary at no cost to ensure the payment system clear. Instead banks should be ‘disciplined on the asset side’, i.e. specific regulations as to what sort of loans a bank can make. If the loan isn't up to standards it becomes a bad debt. Too many of those and the bank goes bust.</div>
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This description is somewhat simplified (no equity and capital), but I hope it gets over the essence of what is going on. BoE doesn’t provide reserves when commercial loans are made. They provide reserves as loans to the commercial banks at a high price with quite a lot of restrictions to encourage banks to borrow from each other, as described above, first.</div>
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And banks don’t need deposits. But they tend to be cheaper overall and more sticky than the alternative forms of funding – capital bonds and equity.</div>
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And if the bank is big enough, it can make a few bob charging for customer transactions within its own balance sheet.</div>
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If a Barclays customer pays another Barclays customer, then all that happens is a few numbers change position on the Barclays computer. But Barclays can charge for that and earn income literally from doing nothing.</div>
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Full MMT Banking reform proposal <a href="http://www.3spoken.co.uk/2013/05/making-banks-work.html">here</a></div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-34552445857757116802015-12-08T11:58:00.001-08:002015-12-08T11:58:09.448-08:00Blatant Lies from the BBC <a href="http://www.bbc.co.uk/news/business-34996922">Article here</a><br />
<span style="background-color: white; color: #404040; font-family: Helmet, Freesans, Helvetica, Arial, sans-serif; font-size: 18px; line-height: 16px;">"The overnight </span><a class="story-body__link-external" href="https://www.ecb.europa.eu/press/pressconf/2015/html/is151203.en.html" style="-webkit-tap-highlight-color: rgba(17, 103, 168, 0.298039); background-color: white; border-bottom-color: rgb(220, 220, 220); border-bottom-style: solid; border-width: 0px 0px 1px; color: #222222; font-family: Helmet, Freesans, Helvetica, Arial, sans-serif; font-size: 18px; font-stretch: inherit; font-weight: bold; line-height: 16px; margin: 0px; padding: 0px; text-decoration: none; vertical-align: baseline;">deposit rate was cut</a><span style="background-color: white; color: #404040; font-family: Helmet, Freesans, Helvetica, Arial, sans-serif; font-size: 18px; line-height: 16px;"> from -0.2% to -0.3%, to push banks to lend instead of parking money at the ECB."</span><br />
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<span style="background-color: white; color: #404040; font-family: Helmet, Freesans, Helvetica, Arial, sans-serif; font-size: 18px; line-height: 16px;">And here it begins. Banks don't lend reserves. Loans create deposits. Of course most readers don't know that and our 'national broadcaster' knows they don't.</span><br />
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"The cut in the interest rate on overnight bank deposits means that banks in effect pay more to the ECB for holding their reserves.</div>
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The policy is designed to make it more profitable for banks to offer loans to consumers and businesses, ensuring a free flow of money."</div>
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OK, BBC how does it make it "more profitable for banks to offer loans to customers and businesses"? It doesn't.</div>
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"Instead, Mr Draghi said it would go on longer but at the same monthly rate. And the markets expected a bigger cut in the interest rate on banks' deposits at the ECB. It's already below zero which means the banks are being charged to park excess funds at the central bank.</div>
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A bigger cut would have given them an even bigger incentive to lend more rather than sit on idle cash."</div>
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Nope. Again, when banks lend they create a deposit (an IOU of the bank) and a loan (your IOU to the bank.) The reserves needed <a href="http://www.3spoken.co.uk/2014/07/on-nature-of-banks-payment-clearing.html">pop into existence</a>. Banks lend when there are profit-worthy customers at a certain price of money. This will do nothing, except perhaps slightly reduce bank profits. How people think this will boost lending is beyond me.</div>
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This isn't really separate lies - just repeating the same lie over and over!</div>
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As the <a href="http://www.bankofengland.co.uk/publications/Documents/quarterlybulletin/2014/qb14q1prereleasemoneycreation.pdf">Bank of England say</a>:</div>
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"The reality of how money is created today differs from the
description found in some economics textbooks:
• Rather than banks receiving deposits when households
save and then lending them out, bank lending creates
deposits.
• In normal times, the central bank does not fix the amount
of money in circulation, nor is central bank money
‘multiplied up’ into more loans and deposits."</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-30986856554213363902015-12-02T13:47:00.002-08:002015-12-02T13:52:07.358-08:00Quote of the day - suck on it oldies!From <a href="https://www.blogger.com/comment.g?postID=2994501167730292263&blogID=1879770534244304287&isPopup=false&page=2">Neil Wilson</a><br />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">""But that all changes when you have a JG. So is it reasonable to expect an unemployed person of 60+ to work for a fraction of his previous wages or salary? What about 55+?"</span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">Yes. It's called obsolescence. </span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">Your 'higher wage' is only there because you have multiple bids in a market to drive the wage above the living wage. If that stops happening then your wage drops as well. That's what redundancy and economic shrinkage does in the actual job market that most people operate in (the secondary job market), where economic pullback and the effect on wages is a fact of everyday life. And you've recently seen it with the steelworkers in Redcar, etc. </span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">In the current system you drop onto JSA at £73.10 per week - where you will likely stay until you get to state retirement age or finally come to the realisation that a minimum wage job at B&Q is your only option. </span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">In the new world you will get a JG job at the living wage where you can do stuff that makes you happy and add great value to society. A significant improvement.</span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">There are far too many people who think they get higher wages because they are somehow magically brilliant or wonderfully skilled. Nope. It's simple supply and demand in a market alongside unionised activity to help keep that in trim. </span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">Nobody has any right to a higher payment than anybody else regardless of how wonderful they think they are. The JG is very much an equal pay employer - and it needs to be because that wage fall is part of the reset mechanism of capitalism. It is one of the auto-stabilisers. </span><br />
<br style="background-color: white; color: #202020; font-family: arial, sans-serif; font-size: 13px; line-height: 18.2px;" />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;">The JG changes an unemployed buffer stock into an employed buffer stock. It deliberately tries to avoid disrupting the private sector wage structure and in particular changing anything so that it artificially maintains boom or obsolete skill wage rates."</span><br />
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;"><br /></span>
<span style="background-color: white; color: #202020; font-family: "arial" , sans-serif; font-size: 13px; line-height: 18.2px;"><span style="line-height: 18.2px;">""The introduction of a JG will give the neo-liberals , the not-so-innocent fraudsters, a very powerful weapon indeed to force down wages. We need to be careful about that."</span><br style="line-height: 18.2px;" /><br style="line-height: 18.2px;" /><span style="line-height: 18.2px;">One person's forced down wages is another person's greater equality. </span><br style="line-height: 18.2px;" /><br style="line-height: 18.2px;" /><span style="line-height: 18.2px;">Try telling the 20 something struggling in the private sector 'gig economy' that a 50 year old is worth paying until they retire on a six figure salary they no longer provide the output to cover. </span><br style="line-height: 18.2px;" /><br style="line-height: 18.2px;" /><span style="line-height: 18.2px;">You will get cycles of the right forcing down wages, and the left forcing them back up by raising the living wage. It's a useful tension that keeps things where they should be - about equal. </span><br style="line-height: 18.2px;" /><br style="line-height: 18.2px;" /><span style="line-height: 18.2px;">Those who want a higher waged public sector job are very welcome to put the proposal to council tax payers (via their unions if they have one) - including the increase in council tax necessary to cover it. If your peers agree that you are a Very Valuable Person doing something Really Useful then they will pay the council tax necessary to cover your increased salary expectations. </span><br style="line-height: 18.2px;" /><br style="line-height: 18.2px;" /><span style="line-height: 18.2px;">So you have a democratic way of getting what you want. You just don't get it 'by right'."</span></span>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-22242905565477712302015-11-26T01:13:00.001-08:002015-11-26T01:13:22.590-08:00Who are Genel Energy?<a href="https://medium.com/insurge-intelligence/britain-s-secret-ties-to-governments-firms-facilitating-isis-oil-sales-210d21470e65#.uipfzws59">Here</a><br />
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>"Key allies in the US and UK led war on Islamic State (ISIS) are covertly financing the terrorist movement according to senior political sources in the region. US and British oil companies are heavily invested in the murky geopolitical triangle sustaining ISIS’ black market oil sales.</i></blockquote>
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>The Kurdish Regional Government (KRG) in Iraq and Turkish military intelligence have both supported secret ISIS oil smuggling operations and even supplied arms to the terror group, according to Kurdish, Iraqi and Turkish officials.</i></blockquote>
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>One British oil company in particular, Genel Energy, is contracted by the KRG to supply oil for a major Kurdish firm accused of facilitating ISIS oil sales to Turkey. The Kurdish firm has close ties to the Iraqi Kurdish government.</i></blockquote>
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>Genel operates in the KRG with the backing of the British government, and is also linked to a British parliamentary group with longstanding connections to both the British and KRG oil industries.</i></blockquote>
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>The relationship between British and Kurdish energy companies, and senior British politicians, raises questions about conflicts of interest — especially in the context of a ‘war on terror’ that is supposed to be targeting, not financing, the ‘Islamic State.’…"</i></blockquote>
<span style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">Of course, the Western explanation is that ISIS is selling the oil to Assad.</span><br style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;" /><br style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;" /><span style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">Worse —</span><br />
<blockquote class="tr_bq" style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 13.2px; line-height: 12.32px;">
<i>“Turkey has sponsored Islamist groups in Syria, including ISIS, since the beginning, and continues to do so. The scale of ISIS smuggling operations across the Turkish-Syrian border is huge, and much of it is facilitated with the blessings of Erdogan and Davitoglu, who see the Islamists as the means to expand the Turkish foothold in the region.”</i></blockquote>
WTF??<br />
<span style="background-color: white; line-height: 22.4px;"><span style="color: #252525; font-family: sans-serif; font-size: x-small;"><b>https://en.wikipedia.org/wiki/Genel_Energy</b></span></span><br />
<span style="font-size: x-small;"><b style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;">"Genel Energy plc</b><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;"> is an oil company with a registered office in </span><a href="https://en.wikipedia.org/wiki/Jersey" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: none; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #0b0080; font-family: sans-serif; line-height: 22.4px; text-decoration: none;" title="Jersey">Jersey</a><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;"> and field office in </span><a href="https://en.wikipedia.org/wiki/Turkey" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: none; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #0b0080; font-family: sans-serif; line-height: 22.4px; text-decoration: none;" title="Turkey">Turkey</a><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;">. It has its exploration and production operations in </span><a href="https://en.wikipedia.org/wiki/Iraq" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: none; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #0b0080; font-family: sans-serif; line-height: 22.4px; text-decoration: none;" title="Iraq">Iraqi</a><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px; line-height: 22.4px;"></span><a href="https://en.wikipedia.org/wiki/Kurdistan" style="background-attachment: initial; background-clip: initial; background-color: white; background-image: none; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #0b0080; font-family: sans-serif; line-height: 22.4px; text-decoration: none;" title="Kurdistan">Kurdistan</a><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;"> with plans to expand its activities into other Middle East and North African countries.</span><sup class="reference" id="cite_ref-upstream080911_1-0" style="background-color: white; color: #252525; font-family: sans-serif; line-height: 1; unicode-bidi: -webkit-isolate;"><a href="https://en.wikipedia.org/wiki/Genel_Energy#cite_note-upstream080911-1" style="background: none; color: #0b0080; text-decoration: none; white-space: nowrap;">[1]</a></sup><span style="background-color: white; color: #252525; font-family: sans-serif; line-height: 22.4px;"> The company owns rights in six production sharing contracts, including interests in the Taq Taq, Tawke, and Chia Surkh fields.</span><sup class="reference" id="cite_ref-upstream211211_2-0" style="background-color: white; color: #252525; font-family: sans-serif; line-height: 1; unicode-bidi: -webkit-isolate;"><a href="https://en.wikipedia.org/wiki/Genel_Energy#cite_note-upstream211211-2" style="background-attachment: initial; background-clip: initial; background-color: initial; background-image: none; background-origin: initial; background-position: initial; background-repeat: initial; background-size: initial; color: #0b0080; text-decoration: none; white-space: nowrap;">[2]</a>"</sup></span>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-28246733070674181252015-11-23T02:47:00.004-08:002015-11-23T02:47:26.188-08:00It warps the mind<a href="http://zoomism.com/">First, this is the coolest website design ever. Zoom!</a><br />
<a href="https://upload.wikimedia.org/wikipedia/commons/5/55/8-cell-simple.gif">Then look at this 4D Cube, loyal readers</a>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-12767083937061412542015-11-14T06:29:00.001-08:002015-11-14T09:40:47.262-08:00On Steel<div style="background: rgb(255, 255, 255); border: 0px; color: #333333; font-family: 'Lucida Grande', Verdana, Arial, sans-serif; font-size: 12px; line-height: 24px; margin-bottom: 10px; padding: 0px; text-align: justify; vertical-align: baseline;">
Steel making from iron ore is a silly thing to be doing in the UK. We no longer have supplies of Iron Ore and there is sufficient diversity of steel supply from elsewhere. So why is there a difference between importing steel and importing the ore? UK steel works should be about recycling steel that is already here – and it should be near fully automated.</div>
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The engineering the steel workers should be doing is constructing automated housing production lines – creating energy efficient houses that can be simply bolted together on site.</div>
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What I find annoying about the ‘save the steel’ campaign is that there wasn’t a ‘save the wool spinning’ campaign when all the spinners shut down due to competition from Turkey. Is that because it was a female/immigrant industry?<br />
<br />
UPDATE: Bill Mitchell has a blog on the structure of jobs in the steel industry <a href="http://bilbo.economicoutlook.net/blog/?p=31974">here</a>. It makes for interesting reading.</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-8180659763234256782015-11-09T12:49:00.000-08:002015-11-09T12:49:15.963-08:00Well done lads...<a href="http://www.independent.co.uk/news/uk/politics/anti-eu-protesters-created-fake-firm-to-heckle-david-cameron-during-cbi-speech-a6727041.html">Excellent news here</a>Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-42943261552147162172015-11-07T13:18:00.002-08:002015-11-07T13:21:18.921-08:00Hmm...Dodgy Dave <a href="http://www.theguardian.com/politics/2015/nov/07/david-cameron-exit-warning-eu-reform">may be backing the out campaig</a>n. Although probably not.<br />
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 21.8182px; margin-bottom: 1rem; padding: 0px;">
"David Cameron will issue a dramatic warning to fellow EU leaders this week that he may have to recommend a UK exit from the European Union if they reject his demands for reform.</div>
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 21.8182px; margin-bottom: 1rem; padding: 0px;">
Turning up the pressure on the other 27 EU heads of state, the prime minister will formally table his list of demands – including a four-year ban on EU migrants claiming in-work benefits after entering the UK"</div>
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 21.8182px; margin-bottom: 1rem; padding: 0px;">
Hmm, and will this "four year ban" apply to young people? Probably!<br />
UPDATE:<br />
<span style="font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 21.8182px;">Senior government officials have indicated Cameron may think again about granting a vote to 16- and 17-year-olds, if, as is expected, the Lords backs the move in a vote on 18 November.</span><br />
<span style="font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 21.8182px;">Haha. Turkeys voting for Christmas!</span></div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-65567641674812774212015-10-31T14:24:00.005-07:002015-10-31T14:24:46.816-07:00Who is behind the EU?<i style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15.84px; line-height: 20.592px;"><a href="http://ragingbullshit.com/2015/10/31/the-cia-connection-how-euro-federalists-were-financed-by-us-spy-chiefs/">At Raging Bullshit</a></i><br />
<i style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15.84px; line-height: 20.592px;">"During research for an article on Brexit, which will be published on WOLF STREET in the next day or two, I stumbled across an undetonated bombshell of a pìece from the Internet 1.0 era. Written by the DT’s Ambrose Evans Pritchard, the article reveals documentary evidence of historic U.S. covert (read: CIA) support for Europe’s federalist project. Part of that support was funded by (cue drum roll…) the Ford and Rockerfeller Foundations.…"</i><br />
<i style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15.84px; line-height: 20.592px;"><br /></i>
<i style="background-color: white; color: #222222; font-family: Arial, Tahoma, Helvetica, FreeSans, sans-serif; font-size: 15.84px; line-height: 20.592px;">Remember:</i><br />
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 24px; margin-bottom: 0.75rem; padding: 0px;">
In the interview, Obama said Britain was the US’s “best partner” because of its willingness to project power beyond its “immediate self-interests to make this a more orderly, safer world”.</div>
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 24px; margin-bottom: 0.75rem; padding: 0px;">
A No 10 source said: “It’s right for Britain to have this renegotiation and this referendum to address the concerns that the British people have about <a class=" u-underline" data-component="in-body-link" data-link-name="in body link" href="http://www.theguardian.com/world/europe-news" style="background: transparent; border-bottom-color: rgb(220, 220, 220); border-bottom-style: solid; border-bottom-width: 0.0625rem; color: #005689; cursor: pointer; text-decoration: none !important; transition: border-color 0.15s ease-out;">Europe</a> and to make sure the British people have the final say about whether we stay in a reformed European Union or leave.”</div>
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 24px; margin-bottom: 0.75rem; padding: 0px;">
Obama also welcomed Cameron’s commitment to continue meeting the Nato target of spending 2% on defence. He said: “We don’t have a more important partner than Great Britain. For him to make that commitment when he has a budget agenda that is confined, a budget envelope that is confined, is significant.”</div>
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Egyptian Web', Georgia, serif; line-height: 24px; margin-bottom: 0.75rem; padding: 0px;">
The US administration has previously expressed concerns about the UK’s commitment to military spending and had pressed for Cameron to commit to the target.</div>
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In June, US defence secretary Ashton Carter said the UK had always “punched above its weight” militarily and it would be “a great loss to the world” if it cut defence spending in a way that suggested it was “disengaged”.</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.comtag:blogger.com,1999:blog-6419223794400624880.post-79876005381500831772015-10-29T10:03:00.001-07:002015-10-29T10:03:08.285-07:00The natural rate of interest debunkedSteve Keen post <a href="http://www.forbes.com/sites/stevekeen/2015/10/28/the-unnatural-rate-of-interest-ultra-wonkish/2/">here</a> (multiple parts) debunking the "natural rate of interest" BS. Also compares and debunks the Marxist "labour theory of value." This is a key weapon in the arsenal of bullshit economics and models.<br />
The "natural rate of interest" is zero. Unless the Bank of England offers interest on reserves or the Treasury issues Gilts banks will try to lend out excess reserves in the interbank market but won't be able to in aggregate. The rate will fall to zero.<br />
<br />
As Neil Wilson says:<br />
<div style="background-color: white; color: #333333; font-family: 'Guardian Text Sans Web', 'Helvetica Neue', Helvetica, Arial, 'Lucida Grande', sans-serif; font-size: 14px; line-height: 22px; margin-bottom: 0.5rem;">
"If you and I have only £10 between us then there is a limit to how fast we can move it between us in exchange for goods and services. That's the natural friction within the system (and is lower in the financial sector which is how it appears it generates so much money. Really its just a velocity shift).</div>
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However if there is more money in the economy - say £1000 then we can each have savings and still have enough liquidity to move real goods and services between us as fast as a possible in the real sphere.</div>
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Which is actually what we need.</div>
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The belief that is wrong is that the system naturally has enough liquidity. It doesn't. The unemployed have insufficient liquidity to demand the goods and services they need, which if they could would actually result in them being employed.</div>
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And the paradox of thrift caused by financial saving just isn't automatically offset by sufficient loans from banks. The market doesn't 'clear' at full activity, the quantity wanders up and down dependent entirely upon its own dynamic and with little direct connection with the real activities that need financing.</div>
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Money is made round to go around. What matters in turnover of money stock, not the size of the money stock."</div>
Randomhttp://www.blogger.com/profile/04445772572707818311noreply@blogger.com