The Chinese and others are calling for a new currency.
Yes! Great! but you cannot allow an exchange rate between the old dead USD,EURO,Sterling currencies. I'll gotten gains from economic terrorism cannot be allowed in any new currency. Therefore normal people who create wealth should be allowed a 1:1 exchange rate indefinitely, Those who have vast fortunes of ill gotten gains would have exchange rates 100,000:1.
Not many people are alive that remember the collapse of the Reichsmark. It suffered the same fate as its predecessor the Papiermark. Hyper inflation caused by incompetant management and greed caused the currencies to become valueless.
It cost trillions to buy a loaf of bread. That is exactly what the capitalists have done to the old currencies. When a currency is so scarce that common people cannot use it it becomes worthless. Wealth hoarding by people who usurp the people who create value caused this and have caused the same situation again. The next holocaust will not be against the Jews it will be against the poorer swathe of people on this planet. The next prejudice will be the haves hating the have-nots somehow treating them as a lower race to be despised. However, when that happens that will be their own undoing. Without the common man creating wealth, fixing machines, building things the value destroyers will be destroying themselves because they have no real skills.
Lets create a global currency, without central banks, print it on your printer and use it. "I promise to work to create enough value for the bearer to the sum of...."
Once it reaches critical mass it will crush the old currencies and become a new benchmark. Its just a belief system. Look at gold. Its just a piece of metal. People believe its worth extra value because it is scarce and a "safe haven"
Once people believe in a new currency it will be accepted everywhere.
Thursday, February 25, 2010
You can't be both.
It has been a while since my last post but the markets and polytrick-ians are still showing their ignorance.
If you are a true capitalist and you believe that the markets will rebound you will be spending big now on plant and machinery and infrastructure renewal now. Because now everyone is scrambling for business and good deals on Capital Expenditure, labour and goods can be had. It will be cheaper to build a factory or a bridge now than later. That means that you can take a bigger advantage (profit) when the market bounces back again. However, the capitalists and polytrick-ians obviously do not believe their own propaganda.
They fear inflation and try and hammer it out like Reagan and Thatcher tried to do.
Batten down the hatches! Downsize! Make vast swathes of their staff redundant!
Remember from earlier posts, inflation is GDP growth which is profit. It is the same force at work, not a different one. The economies are trying desperately to inflate and the polytrick-ians and central bankers are trying their best to hold it down which in effect is only a temporary measure because it is going to explode.
A little off base here, but I want to try and explain that the market dynamics in an inflationary economy are not the same (indeed opposite) to those dynamics in a deflationary economy. I will use the analogy of the first supersonic test flights.
In the early days we did not have jet engines powerful enough to send planes at supersonic speed horizontally, so they climbed to great heights and use gravity to assist the acceleration to the sound barrier. However there were some fatal crashes. By radio the test pilots reported that they couldn't pull out of the dive and indeed it seemed that their attempts to pull out were putting them into an even steeper dive. Lives were lost. Planes crashed.
Nowadays physicists specializing in the aerodynamics field understand airflow at supersonic speeds and indeed the control surfaces on an aircraft have reverse effects. Pulling up on the joystick was in fact helping those planes go into a steeper dive. Yet all the test pilots had to do was push the stick down.
I think it is a similar with deflationary economies. The market dynamics are different. Rather than do the keynesian things that are mis-taught in our universities and colleges, we should be doing the opposite.
Every company head, every polytrickian they are all trying to do the obvious. Micro management with a bucket trying to bale out the Titanic. Its corner shop mentality. Apples were in demand last week, lets get lots of apples. SO they buy lots of apples only to find that the next week is warmer and people prefer citrus fruits for refreshment and are buying oranges and tangerines instead. The apples go mouldy, the store keeper looses money, in a desperate attempt to stay afloat he fires half his staff so he can only open until 6.00pm instead of 10.00pm.
Going back to the first point of this post, since the capitalists are not taking advantage of spending at truly low levels, they cannot believe in capitalism. Instead they are the corner shop trader. Not businessmen but people who are in business by chance. Have climbed up the company ladder by stabbing everyone in the back and schoolboy bully tactics.
Therefore capitalism not only doesn't work, it doesn't exist either. Its a ponzy scheme and as such they should all go on trial.
If you are a true capitalist and you believe that the markets will rebound you will be spending big now on plant and machinery and infrastructure renewal now. Because now everyone is scrambling for business and good deals on Capital Expenditure, labour and goods can be had. It will be cheaper to build a factory or a bridge now than later. That means that you can take a bigger advantage (profit) when the market bounces back again. However, the capitalists and polytrick-ians obviously do not believe their own propaganda.
They fear inflation and try and hammer it out like Reagan and Thatcher tried to do.
Batten down the hatches! Downsize! Make vast swathes of their staff redundant!
Remember from earlier posts, inflation is GDP growth which is profit. It is the same force at work, not a different one. The economies are trying desperately to inflate and the polytrick-ians and central bankers are trying their best to hold it down which in effect is only a temporary measure because it is going to explode.
A little off base here, but I want to try and explain that the market dynamics in an inflationary economy are not the same (indeed opposite) to those dynamics in a deflationary economy. I will use the analogy of the first supersonic test flights.
In the early days we did not have jet engines powerful enough to send planes at supersonic speed horizontally, so they climbed to great heights and use gravity to assist the acceleration to the sound barrier. However there were some fatal crashes. By radio the test pilots reported that they couldn't pull out of the dive and indeed it seemed that their attempts to pull out were putting them into an even steeper dive. Lives were lost. Planes crashed.
Nowadays physicists specializing in the aerodynamics field understand airflow at supersonic speeds and indeed the control surfaces on an aircraft have reverse effects. Pulling up on the joystick was in fact helping those planes go into a steeper dive. Yet all the test pilots had to do was push the stick down.
I think it is a similar with deflationary economies. The market dynamics are different. Rather than do the keynesian things that are mis-taught in our universities and colleges, we should be doing the opposite.
Every company head, every polytrickian they are all trying to do the obvious. Micro management with a bucket trying to bale out the Titanic. Its corner shop mentality. Apples were in demand last week, lets get lots of apples. SO they buy lots of apples only to find that the next week is warmer and people prefer citrus fruits for refreshment and are buying oranges and tangerines instead. The apples go mouldy, the store keeper looses money, in a desperate attempt to stay afloat he fires half his staff so he can only open until 6.00pm instead of 10.00pm.
Going back to the first point of this post, since the capitalists are not taking advantage of spending at truly low levels, they cannot believe in capitalism. Instead they are the corner shop trader. Not businessmen but people who are in business by chance. Have climbed up the company ladder by stabbing everyone in the back and schoolboy bully tactics.
Therefore capitalism not only doesn't work, it doesn't exist either. Its a ponzy scheme and as such they should all go on trial.
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