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Tuesday, 21 April 2015

Life Copies Satire

For my ginger friend, Mr Wadsworth, and a reminder to not use South Park for actual policy. I mean WTF?? But it is even more extreme than that as they have banned daywalkers as well. Is this not a hoax? Says 15 April. And the 'vast majority' of parents support this as well. If it true then seriously WTF?
http://www.mirror.co.uk/news/uk-news/redhead-banned-school-just-weeks-5525832
Some quotes:

was told she cannot return to lessons until she dyes her hair a more 'natural' colour

"I've had the same colour for the past three years, and nobody at school has commented on it.
"Trinity School sixth-form students are role models for the rest of the school.
"We have a policy of maintaining high standards.
"The vast majority of parents are very keen on our high standards."

Saturday, 4 April 2015

Just needs a few adjustments...

The new homeownerist anthem...
Boy! 
Boy!

Now in the street, there is violence
And-and a lots of work to be done
No place to hang out our washing
And-and I can't blame all on The Sun

Oh no, we gonna rock down to Electric Avenue
And then we'll take house prices higher
Oh, we gonna rock down to Electric Avenue
And then we'll take house prices higher

Workin' so hard like a soldier
Can't afford a thing on TV (homes under the hammer)
Deep in my heart, I abhor ya
Can't get food for the kid

Good God, we gonna rock down to Electric Avenue
And then we'll take it higher
Ho, we gonna rock down to Electric Avenue
And then we'll take it higher

Oh, no
Oh, no
Oh, no
Oh, no

Oh God, we gonna rock down to Electric Avenue
And then we'll take house prices higher
Ho, we gonna rock down to Electric Avenue
And then we'll take house prices higher

Who is to blame in one country?
Never can get to the one
Dealin' in multiplication
And they still can't feed everyone

Oh no, we gonna rock down to Electric Avenue
And then we'll take house prices higher
Ho no, we gonna rock down to Electric Avenue
And then we'll take house prices higher

Ho, out in the street
Out in the street
Out in the daytime
Out in the night

Oh, we gonna rock down to Electric Avenue
And then we'll take house prices higher
Ho, we gonna rock down to Electric Avenue
And then we'll take house prices higher

Out in the street
Out in the street
Out in the playground
In the dark side of town (near all the council houses)

Ho, we gonna rock down to Electric Avenue
And then we'll take house prices higher
Hey, we gonna rock down to Electric Avenue
Oh yeah (And then we'll take house prices higher)

Rock it in the daytime (We gonna rock down to Electric Avenue)
Rock it in the night (And then we'll take house prices higher, Electric Avenue)
Rock it in my ya-tee-pa-bombay (We gonna rock down to Electric Avenue)
Whoa, in the Brixton, yeah (And then we'll take house prices higher, Electric Avenue)

Sunday, 29 March 2015

MMT- where is the money going to come from to pay for cuts?

Dear Mr Osbourne,
Where is the money going to come from to pay for your austerity measures? Your plans are not credible Mr Osbourne, not credible.
The cuts target overwhelmingly people in poverty-http://www.centreforwelfarereform.org/library/by-date/briefing-on-how-cuts-are-targeted.html
These people are broke.

Wednesday, 11 March 2015

Killer Arguments Against Range Voting, Not

Complete fail of anti range voting organisations:
http://rangevoting.org/RVcrit.html

Wednesday, 11 February 2015

Oh no...

Once upon a time, a government decided to spend some money on a school. It built it, paid the teachers' wages, etc... These people had to pay a property tax so they needed the money. They couldn't pay it in bitcoin or gold.
But something terrible happened. The teachers and builders, etc decided to save some of the money. As a result, the teachers didn't spend all the money into the economy. And the people who got the money after them saved some too. As a result, after several taxes (VAT, property taxes, etc) the government didn't get all of its money back. Or perhaps people spent money on net imports. This led to real goods and services being given to the country for pieces of paper. The foreign central bank is running export led policy and prints some money and swaps it for our money to keep the exchange rate constant, and then stores the money forever for as long as they have export led policy.

This is part of the 'export led recovery' mantra advanced by the IMF that forgets that for every exports there is an input.

I know this is all terrifying, but that could lead to a deficit in the "public finances" (!!!) It is OK though because politicians say the have the 'deficit under control' and can 'cut useful spending or raise harmful taxes' to get rid of it. If we don't we could end up like 'Greece' (except for the borrowing in a foreign currency part.)
We can't have Scandalnavian spending at American taxes you know. The markets will punish us.

This is the story told by the current UK government since 2010. They have used ridiculous tactics like comparing the UK government to a credit card and say the UK should have ran surpluses (to increase household debt hopefully, along with even more financial deregulation) prior to 2007.




Monday, 2 February 2015

Where money gets its value from

Have you ever stared down at a pound bill and wondered why it has value? Why does a worthless piece of paper have value?

Is it because you can exchange it for gold? This was true until the 1970s, where there was something called the Bretton Woods System, where you could convert other currencies into the US Dollar which could be converted to gold. Some people would say it has value because others think it does. If we all have faith in the currency, it has value. And this is partially true - look at bitcoin for example. Money also has value as legal tender, the only way to pay debts.

But what is the main reason currencies have value. It is surprising. The main reason is taxation. Taxes require people to find money to pay for them. Otherwise, they go to jail. This is not the only thing needed though - governments need to carefully manage their currency and not print too much or it will cause inflation, and there has to be proper enforcement.

This is the real reason for taxation - not to "fund" spending. Where will the money come from? The taxes come first, then when there is demand for the currency, the government spends money on stuff - infrastructure, public sector workers, social programs, etcetera...

Let's take a teacher's wage for example. The teacher pays some income tax and NI on the money. The teacher pays some Council Tax. The teacher will save and spend money. When the money is spent, it attracts VAT. The money goes to a corporation and they pay wages and corporation tax. It is invested, attracts capital gains tax, etcetera... The point is money is a flow.
The only money that the government does not get back as tax is saved. In a closed economy, this is what is meant by the "deficit." The deficit is the private sector's surplus. As long as the government is a currency issuer, there is low default risk (the government could go mad and default) Of course you need to include the external sector (foreigners) and the banking system.
With a foreign sector, a government running a trade surplus (imports less than exports) can run surpluses while a trade deficit nation can't without private sector deficit (going deeper into debt.) You also need to take into foreign investments, foreign aid, remittances, etc to get a current account surplus or deficit.
Banks can create money. Say you borrow £100,000 from a bank. The bank enters it as a "deposit" in your account (a promise to pay money.) Although it does not create any money, the bank's credit money is accepted by most (i.e. non cash only) stores. These Bank IOUs are treated like real money. When you pay back the loan, the money is destroyed.
You get an equation:
Private deficit + Public Sector Deficit + Rest of World Deficit = 0
So for a country with a trade deficit like the UK it is a silly idea to aim for a budget surplus.



Tuesday, 30 December 2014

Location, Location, Location

http://www.theguardian.com/education/2014/dec/31/labour-class-war-private-schools
In today's Guardian, Alun Jones (I think his name is Alan, but what can you expect from the grauniad, not that I am any better), says the Labour party are declaring "class war"  by getting rid reducing the relief on business rates independent schools get for some reason. Business rates are a kinda-quasi-LVT.  His argument is a red herring on how state schools our insane system of taxing income and not land/location value (although he does not know it.)
In the same article, Alun lets call him Al, has some golden quotes:
“Eighty per cent of the educational apartheid that we see is actually due to geographical location,”
“What’s the most privileged – being able to afford a £750,000 house and live in a catchment that takes you to what is defined as an excellent state school, or parents who want to make huge sacrifices and choose to opt for the independent sector?” The notion that private schools are elite is outdated, he argued.

Why are the houses expensive? Do they have better improvements? Bigger house? Or is it because, hmmm, I don't know, the LAND is worth more. SO the "educational apartheid"(whatever that means) is actually because the houses that benefit from the better location, schools, etc are worth more.

Also, this (another red herring but what do you think of it):
Jones also joined many fellow heads in lamenting the impact social media can have on the well-being of pupils. Schools needed to work closely in partnership with parents, who should take phones and other electronic media away from youngsters before bedtime to ensure “quality down time”, he said. Parents should also be sure to know the passwords of their children’s Facebook and other accounts and ensure the youngsters knew they could potentially access them.