3rd November 2016
There has been a lot of talk over Economic inequality, and wealth concentration, in other words the difference between absolute poverty and extreme wealth, and how this wealth gap will lead to unrest.
There is not a shred of hard evidence, except from some loony Socialists who want to make this a reality, usually by beating up innocent people, or killing and murdering a few dissenters, which is the Socialist stock in trade, to convince the world of this unrest?
The so called inequalities are not producing unrest, well not in functioning Democracies.
around Christmas 1989, due to Socialism
Wealth inequality is due to corruption and a lack of opportunity in some developing countries. There is plenty of evidence of unrest in Socialist Venezuela, or in developing Countries with despots or dictatorships in charge. Roumania had a little local unrest around Christmas 1989, due to Socialism and inequalities of earnings, but that only proved, that the citizens in general, were not allowed to join the ranks of the privileged Socialist hierarchy, so it had to go.
There is a simple reason for this lack of unrest, people on the whole, do not resent others who have apparently made a lot of money, not that is, if they see the opportunities and openings for themselves to do the same.
A young kid who let’s say has a grasp of computer programming, and lives in one of the functioning Democracies, hardly resents Bill Gates or Mark Zuckerberg, for their $billions. By and large they try thinking of ways to become the next computer $Billionaire, they see Gates and Zuckerberg as pioneers, so the young stripling tries figuring out what is going to be the next knockout ‘thing’ on t’interweb. And can they be the one to build or write the next knockout program, to enthral the world and make those $billions.
Do they resent those super wealthy $billionaires. No in the most part, they admire ‘celebrity lifestyles’, and try figure out how to join them.
in the 90s, three girls replied to an advert
Back in the 90s, three girls replied to an advert for auditions to join a ‘girl band’ via “The Stage” magazine, after a few months of living in the same house, they came to the conclusion they were more capable than the management handling themselves, they decided to break away on their own. They were able to do this due to English Common Law, basically they could take and sell their talent, to whom they wished, to their best advantage. They had the ambition, they figured they had the talent, and the Spice Girls wanted to be the next BIG sensation.
They lived in a functioning Democracy, they sought and were able to get, legal advice, which basically released them from any loose commitments they had previously had. One of the girls, Victoria Adams married David Beckham, and went on to be an international designer of renown in her own right, there were no barriers of the State to stop her. And here we come to the nub, of why all these so called ‘Experts’ on economic inequality and its debilitating effects on society, are not experts, they are shit cake bakers, peddling brown smelly stuff, they personally resent what they see as the concentration of wealth.
They are idiot half wits, who one suspects, their mother’s still have to spoon feed them and wipe their noses, and I cleaned that last comment up, in deference to the amount of dung I spelt out clearly in the previous paragraph lol.
State intervention that stops Democracies functioning
It is State intervention that stops Democracies functioning, and leads to a lack of Democratic process, reflecting the will of the people, that leads to unrest. It is not the fact Warren Buffett, had a few $Millions back in the early 1970s and spotted a way to become a multi $Billionaire, that creates unrest. If you want to try and gain the same wealth in a functioning Democracy, one can. Just buy one of the books on the subject and follow his methods.
On a personal note in this my first full year, I had a 6% increase in the number of shares I own, on my modest ISA, (in USA for ISA read Roth IRA) his system works, and is there for all to use, no big brother Socialist telling you which shares to buy, do it wrong, you fail, or do not perform as you hoped, succeed and you have a big smile on your face, and wealth concentration continues, in Socialist Venezuela you don’t have those opportunities, you stay poor?
Do I a person currently on UK minimum wage, resent Buffett, no. I could easily criticise Berkshire Hathaway the company he formed, don’t buy shares in it, he is somewhat hypocritical is Buffett, and doesn’t allow any dividend payments, but you need, to know how his wealth creation works, to understand that last comment.
Wealth creation is NOT about one person making money, at the cost to others, that is Socialist lying, or more correctly Karl Marx’ fantasy economics.
It is a Karl Marx lie, that for the rich to get richer the poor must become poorer, it has no basis in reality. It was just an inane comment, made by an economic half wit, that on the surface appears to have some truth. One person has spent money and so is poorer, another received that money so is richer. What utter cobblers. The same with wealth concentration and economic inequality, banal balderdash.
No, that person spent money receiving something, that they thought was worth the money spent. If that is spent on food, then the person buying has sustenance, they are not poorer, they are alive and now living longer and not starving, they are not poorer.
The reason so many refugees head for Germany and UK is the chance of work, but also along with work, is the chance to improve their lives through hard work, or the alternative, finding a smarter way to make more money, each and every one is looking to increase their wealth concentration.
Ask those Mexicans, Syrians, Ethiopians if they resent $billionaires
It is this, that is the main reason these refugees don’t like semi Socialist France, where is the work, where are the opportunities to make lots of money and become wealthy, the immigrants don’t see them in France, they see them in Germany and especially in UK. They see favourable conditions to make lots of do$h in UK, it is likewise all those Mexicans trying to cross the border into USA, they see opportunities to make a better life. Ask those Mexicans, Syrians, Ethiopians if they resent $billionaires and they will look at you blank, why should they resent people they wish to emulate?
A person becomes richer by finding an efficient way to do something. Adam Smith used the term division of labour, in fact division of labour was merely a manifestation of efficiency, and efficiency pays wages and creates wealth. Indeed it is smarter ways of accumulating money and efficiency that has created nearly ‘ALL’ the really rich. There are a slight number that inherited wealth, but holding on to it through generations requires fresh accumulations, or a continuation of savvy investing and not spending or frittering away more than one earns.
A note on this last, wealth lost, is due, more to people just frittering it away, than any other means of becoming poor. Most of the poor in any country are poorer than others, because they cannot handle money as well as the next person. Witness the so called poor in Western Countries, in UK there is a Lottery £Millionaire called Michael Carroll, he won £9 Million, he is now on the poverty line, he managed to blow an amount he could easily have lived on in luxury for the rest of his life. Next time the Rowntree trust, pontificate about the poor, can someone ask them if £9 million is enough to relieve poverty. The answer is no. But then we are dealing with stupid Socialists, of which the Rowntree trust has them in buckets full?
These do gooders claim to be working on behalf of those stuck in the poverty trap. No they aren’t, they are looking to their fat wage packet, they don’t examine the people earning less than the ones prattling on they are poor. They don’t look closely at why a large section of society should be on the poverty line, but are doing quite nicely thankyou and ‘getting by’ mainly because it would blow out of the water all their petty socialist/fascist prejudices.
they don’t splurge it on some useless consumer good
Many people are earning less than the so called ‘Poor’, but just get on with their lives, and look for ways to earn a little bit more, to make their lives easier. When this happens, they don’t splurge it on some useless consumer good, they stop and ‘Think’, how can I use this extra to my best advantage.
It is those on low wages, but happily getting by, that could teach the other ‘Poor’ really what to do. Learn to harness ones income to the best advantage.
Ooh I hear the odious nasty elite Socialists, one can’t do that, it doesn’t fit our agenda of keeping all the minions in wealth inequality. Next goes the Socialist cry, you ‘Tories’ (even ‘None’ Tory voters are Tories in the eyes of the prejudiced Socialists, who are too dim to have a brain?) will be suggesting bringing back Grammar schools, and allow those not in privileged positions, but with ambition, to better themselves. We in the hypocrite Socialist elite who love creating wealth inequality, and have been to private schools will try and stop people with no wealth, being able to decide how to run their own lives. As Nasty Socialists (note Nasty in this context maybe misspelled?) we can’t allow poor people to become wealthy and reduce wealth inequality, it isn’t right?
Well stupid, (sorry, that should read Socialist, the two words are interchangeable) many people just want to better their lives. They do not resent people who are super rich and so called wealth concentration, and if anyone wants the poor in the developing world to have real wealth, then stamp down on corruption, that is the real enemy of wealth disparity.
SOCIALISM IS IN RETREAT
17th November 2016
Socialism is on the retreat, the Socialists have been getting themselves in a right tiswas over the Trump victory.
And the indications are that President elect Trump has now won both the Electoral College and the ‘Popular vote’, My twitter post on final result, note has to be confirmed at time of posting?
Quite right too, the Socialists extreme fantasy politics has had its day. For too long the Socialists have supposedly been fighting a class war. No they haven’t, they were creating false divisions within society, these divisions, had either already become none existent, as in the case of the working, middle and upper classes, which started disappearing in the 1960s, and by the 1980s gone completely? Or were quite nebulous, and so could never be quite pinned down, but Political Correctness exaggerated many aspects of so called inequalities, women in work and the glass ceiling etc.
Centre Politics is back, ordinary hard working people are having their say, through the ballot box, it’s called Democracy and is smashing Socialism, the none violent way.
Let’s be clear those ordinary people who voted for #Brexit, were wanting freedom from a pseudo Democratic entity, the European Union, they are not extremists.
Donald Trump isn’t an extremist, and neither are his supporters, he has merely become stalled off, with a nasty venal Political class that has no connection with most ordinary hard working people, and Hillary Clinton represented the worst aspects of that Political class, she is Fascist lite.
The Socialists have created their own class division, either one toed the Politically Correct line, or was labelled racist, homophobe or Xenophobe, or any-other-phobe, it is all in their extremist imaginations.
The extremists of both Left and Right in Politics are Socialists, as I keep having to correct silly people on Twitter, and informing them that the term Left and Right wing with regards to politics, is French. What happened was, the two strands of Socialism, Communists and Fascists refused to sit next to each other in the French Parliament, which was and still is horseshoe shaped, the Liberals sat on the left the Conservatives sat on the right.
As it turned out the Communists were the first to have seats in Parliament, and promptly took up their position on the far left of the curve. Later when the Fascists gained some seats, although they were also Socialists they refused to sit next to their hated comrades. So they promptly sat on the far right, even though their Politics is even more extreme?
In UK the term is used to indicate Conservatives and Labour, although in actual fact, it soon breaks down. Edward Heath was well left of the Conservative party, Mrs. Thatcher was a tad right of centre, but has been demonised by the BBC and other Socialist media, so that today most people under 40 are brainwashed into thinking Mrs. Thatcher was extreme far right, what a load of Bolshevik tripe.
The problem is, Left and Right is such an easy shorthand, I use it. In fact I suspect most people use it, as just that, shorthand, but unfortunately it fails to do the job. When it comes to Communists, Socialists and Fascists, it does not reflect the facts, they are all Extreme Right Wing in that they are against freedom of speech, and promote fantasy Economics, which for want of a better term I will say is Left wing, it has no value, because it is ignores some hard economic facts, the main one being as the rich become richer, the poor become LESS poor.
But the Economics reflects the insanity of Socialism, Trump can be labelled extreme right wing because he speaks without thinking, which is always incautious. But when it comes down to the nitty gritty he is quite moderate, and sits somewhere close to the majority of peoples thinking. The Socialist leaning media in both USA and UK don’t allow this facet to be shown, there is too much nuance required, and many pundits in the Main Stream Media regard the general mass of the population as dunderheads, and never look in the mirror to see who the real dunderheads are, namely themselves. In USA the main left wing media is CNN, in UK it’s BBC and Channel 4, both riddled with Politically Correct (and hence totally wrong) Socialists.
The general perception of hard right wing is engendered by the left wing media, but it is because there has been a slow drip, drip, of what is deemed to be centre ground politics.
Socialism is not centre ground Politics that is certain, Socialism is extreme Politics that represses freedom of speech, and is against Democracy, it has used Political Correctness as a club to beat to death freedoms, it is now deemed unacceptable to voice opposition to anything deemed so called mainstream thinking.
If you are not PC then you are demonised, for having freedom of thought.
The fight back has started, and should be carried to its conclusion, trample on extremist Politics, namely Socialism, it’s nasty, venal, impoverishes, leads to an unfair society, represses freedom of speech and re-writes History. White British are the heroes of anti slavery, Black Africans and Muslims continued to enslave and deal in slavery long after it was abolished in the British Empire, Modern Democracy, Freedoms, stem from Magna Carta, the Glorious Revolution and the Bill of Rights, the US constitution, and Adam Smith’s Wealth of Nations.
Britain, USA and the other G7 Countries, were NOT made great by the odious parasite Karl Marx, and his rantings, nor was Britain made great by the British Labour party certainly not empty head Clem Atlee (by far Britain’s worst Prime Minister), and his failure Government of 1945, which with Wilson and Blair nearly bankrupted the Country on three occasions.
I note that Marine Le Penn has dropped her Father’s extreme views and become largely mainstream, her concerns are over numbers of immigrants and integration, if she keeps to that and looks to relaxing the extremist Socialist French employment laws, she will win the next French Presidential Election.
The Socialists will be even more dismayed, which will only show how arrogant and stupid they are.
Mainstream centre Politics is seeing a resurgence, the left should be crushed, then stamped on, then made a joke, because largely that is what it is, a sour joke.
Socialism has nothing to offer, it is based on hate, and creates unfair society, by trying to pull everyone down to their venal level, just what it supposedly, is against, which also shows what lies Socialism creates.
1st December 2016
Phillip Hammond has announced the budget deficit will remain past 2020. The Chancellor of the Exchequer delivered his first and last autumn statement.
It makes more sense, changing the Autumn Statement into a full blown Budget, and just having the review in April. I did notice that what would have been the next Budget, will be just a statement, thus not having to make vague outlines at the start of the #Brexit negotiations.
The Budget Deficit should be lower
The budget deficit should already be lower, but the way ‘all’ UK Governments have run the economy since 1945, has been to concentrate on consumer spending, not on saving and investment. This is part of the problem, there are too many retailers, not enough savers and hence too little saved capital, to increase investment in Capital goods to make UK Plc more efficient and hence more competitive in the world market. This would of course increase tax revenues, and we would be in less of a mess than we are.
Let’s start at the beginning, the budget deficit, is the shortfall in tax revenues against what the Government spends. To offset this, Her Majesty’s Government sells the debt in the form of Bonds and Gilt edged securities, Gilt edged merely means the Government will guarantee to pay you back the principle amount, no matter what. The Debt management office While you hold these bonds, usually referred to as coupons, each six months or year, they pay you interest. They are usually issued for a set period of time, say a year, ten years etcetera. Some of the original consolidated debts (Consols) are open ended and still outstanding from the Napoleonic wars?
Remember the Government does not have any money, nil, zero, all the money the Chancellor of the Exchequer spends is from the tax payer. Or alternatively is borrowed, and has to be paid back, through extra taxes.
Socialists brain washed to think Governments can create money
The number of Socialists brain washed to think Governments can create money is embarrassing, at least one turd in the form of Fidel Castro is no longer around keep trying to peddle their fantasy economics.
This borrowing is the National debt, and is mostly owed to UK citizens, the US has a similar model. By and large the National debt is bought by insurance and pension funds, it is generally not owed to foreign countries.
The current levels of National debt, are not really something to worry about, it would need to be over double the current amount, before it would start to be a real burden. Not that we want it to go higher, the lower it is, the less tax we pay to keep it running, and the upshot of less tax is UK becomes more competitive in the world’s markets.
The National debt first really came into being during the Restoration or 1660s onwards, before that it was the problem for the Monarch. In 1694 with the formation of the Bank of England, meant there was a steady flow of money, and something neat was found to happen. When the Bank of England was formed it leant all its initial offering of £1,200,000 to the Government. Those who had invested, had basically deposited their money in the Bank, the Bank then loaned the money to the Government at 8.333% interest (most books, t’interweb etc say 8% but the figure was £100,000 on the £1.2 million). In the meantime the depositors could of course have access to their deposits, £1,200,000 had been created to spend out of thin air, and with hardly any inflation, or plus 8.333% if one saved ones do$h invested for the whole year. The term win win situation springs to mind.
Needless to say the Government soon spent the do$h on building up the Royal Navy, and a war with the Dutch soon had His Majesty’s Government back for more, so the Bank had a second offering, which of course sold out. By the time of Queen Anne, the National debt was around £36,000,000, an astonishing amount at the time, a few more wars with the French and it ballooned even more. But we did win, well its traditional?
Tax payer money does not increase wealth
In point of fact, there is a problem with the National debt, in that 300 years later it is monies tied up, and not in circulation, this is both good and bad, good it reduces inflation, bad, in that Tax payer money does not increase wealth, it merely circulates around. It is why Gordon Brown caused the boom and bust, he used taxes to fund the finances, which just circulate and make people feel better off, but private monies are made to work efficiently and create more wealth. Less boom, but also less bust, and in that less bust we are better off, because of efficiency gained investing that money, with less boom, but the capital (another word for money) works harder.
Hence my banging on about savings, the higher the savings ratio, the more investment there is in industry and Commerce. Japan had a fantastically high saving ratio for the decades after 1945. Today Japan runs a Trade surplus (not to be confused with a Budget surplus) and hence even after twenty years of deflation, Japan still has a super high standard of living, and the Japanese invest in their own ideas, turning them into the money making products of tomorrow, and why are they making profits and running a trade surplus? Because they are more efficient.
In UK there is a regular gnashing of teeth over small startups being funded overseas, of course there is, we don’t have the spare Capital as individuals to invest. Just this week, there has been a report in the Daily Mail about the amount of debt on credit cards that is currently being run up, 11% increase on last year.
Here is the point, on the face of it there is little harm in this. In fact just like the Budget deficit, it means UK individuals don’t have the spare cash savings, to invest in commerce, industry or trade.
lower chance of creating or investing
The Budget deficit means we pay more tax, and so hinder ability to sell our goods and services. The personal debt means we have a lower chance of creating or investing in that next big thing.
The Budget deficit is manageable and the Chancellor doesn’t feel the need to reduce it more quickly, because interest rates are so low, savings are so low because the interest rates are low and there is a lack of incentive from H. M. Treasury to save.
If May and Hammond want to improve Britain’s Trade performance on the World stage, they have the opportunity to do so, while Sterling is so low.
They won’t, because it is not on the agenda, and they lack the imagination to change. The continued reliance on consumer spending will be maintained. Which will hold UK back, more than any #Brexit negotiations.
M’LUDS PLUS M’LADY
15th December 2016
M’Luds plus M’Lady are now deliberating on whether before triggering Article 50, MPs need to vote, or whether it can be triggered by Government prerogative. The UK Government was given a mandate by the people, it is the people who rule the Country, currently the elected Politicians are not reflecting the will of the people, so asking whether they should make the decision makes it the wrong question. The people want Article 50 triggered, whether the Politicians like it or not, that was the point about having a referendum.
In other words, the M’Luds and M’Lady may think they look fine wearing a silly 18th Century fashion statement, but their deliberations need to take account of the fact neither the House of Commons and certainly not the Lords, reflect the will of the people in 21st Century Britain.
If the #Remoaners want to see real anger, let them try stopping the break from European Union happening, by trying to stop Article 50 being triggered.
There are more people now want the break, due to the lies that #Remain peddled, than voted for #Brexit, on June 23rd.
there will be some inflation
There has been no collapse in trade, there has been no emergency Budget, UK trade is flourishing, due to the fall in the value of Sterling. Yes there will be some inflation due to price rises, currently 1.2% and may well hit 3%, which will be no bad thing, short term.
Yes commerce will have a hard time at some indefinite point in the future, but it would not have been plain sailing eve had we voted to #Remain in European Union, EU is dying on its feet, this became clear with the #Brexit vote, when suddenly, the fractures all over European Union were shown in sharp contrast. Also the arrogance of EU officials was shown, plus many people living in Britain had highlighted the lack of Democratic process within European Union. While the referendum is being fought in the British courts, on the European mainland there was nothing but vague threats of diktat.
The EU is a sclerotic mess, the Euro is seeing to that. Yes Germany has boomed for the past fifteen or more years, but that was due to the fact the Euro was low valued for Germany, it shipped its unemployment onto Portugal, Italy, Greece, Spain the so called PIGS Countries. That should read PIGIES because Ireland also suffered.
The large majority of people do not see any Laws being broken in triggering Article 50, purely because it is the will of the people. The previous three Law Lords had quoted Sir Edward Coke, back in the 17th Century, he had said about Parliamentary prerogative that the MPs voice was to be heard. There is a serious problem with Sir Edward Coke’s pronouncement, he meant the MPs as representing the will of the people, which in 1630s they did.
MPs were not elected to decide whether we should stay in Europe, the people have spoken.
out of touch #Remoaners
The fact is, Article 50 could have been triggered, immediately, however the Cabinet, decided that it would be best to be a little more prepared for the exit, Mary Creagh MP and her fellow out of touch #Remoaners, are trying to manipulate the will of the people. Socialist equals stupid, I will let the reader decide on whether Mary Creagh is Socialist or not?
As it turns out I believe the vote in the House of Commons last week, (Mary Creagh MP, abstained) has really outwitted the #Remain camp and will make the decision of the Law Lords and Lady, largely redundant.
If the #Remain group within the Commons seriously try blocking Article 50, the Country will raise such a stink, the #Remoaners won’t know what hit them. However, giving #Remain a flavour of the way the Government will handle #Brexit, along with continued pressure by the many over the few, will I think be enough to avoid any serious upsets.
29th December 2016
So what are the prospects for 2017, nothing as exciting as 2016, I’ll be bound, although the real work that #Brexit and the Trump result have caused are yet to be set in motion.
In the UK the change in trading due to the lower pound is largely still to show up in the figures. Really this will happen in the Spring 2017, by then any new business, gained by a lower pound will start to show through, although we may start to get indications with the December 2016 figures.
I’ve been reading through the Office for National Statistics (ONS) Trade figures for the last few months, (Yes, OK someone has to be that sad, lol) and it was clear, EU was exporting more and more to UK, confirming the suspicion, they need us more than we need them.
Euro is undervalued for Germany
There are many passionate #Remain supporters, who genuinely believe that it will be catastrophic for UK to leave the European Union. This belief is based on the point of free trade within the EU. They are correct, but only up to a point, and many do not understand that the Euro currently is over valued for the PIIGS countries, who as a consequence have high unemployment. The Euro is undervalued for Germany, that exports and booms as a consequence of the fact its own goods are relatively cheap. This was especially so before #Brexit as they could sell into UK at big profits to German companies, and a continuing trade deficit to UK.
The UK balance of trade deficit is the reason foreign firms are able to buy so many UK companies. Flip the deficit into surplus and UK will start taking over foreign concerns.
a return to the Democratic process
But the main benefit of UK leaving the EU, will be a return to domestic control of our own destiny, or put another way, a return to the Democratic process, all that has to happen then, is abolish the House of Lords and replace it with an elected House. That however is not in prospect for 2017.
The pound will hopefully remain weak, unfortunately Mark Carney will try and ensure this happens for different reasons than the ones it should be. Mark Carnage is hell bent on getting the inflation figures into the 2% range, no bad thing from a savers point of view, but the emphasis from HM Treasury, will be on spending not on saving. This is because all Governments since 1945 have been obsessed with the notion the Country is about to go into recession, unless the Government keeps consumer spending going, not unrealistic, but over egged most of the time, plus with welfare as it is, now totally unnecessary, however this spending culture will be maintained to the detriment of the UK economy.
There will be no real change in savings policy, so there will be no real jump in efficiency of the UK economy. The second effect of the lower pound will be to allow existing companies to keep exporting, which they will do, but with less and less to the sclerotic, indeed nearly stagnant EU economic sphere, and more and more to the dynamic and growing economies of the rest of the world.
fun if the Right wing take the Presidency
Meanwhile coming over the political horizon, are the French presidential elections, expect sparks, followed by the French parliamentary elections, which will be lots of fun if the Right wing take the Presidency? The German Federal Elections, which are not fixed to a specific date, but can be no later than 22nd October, will be good fun? Also the Netherlands have Parliamentary elections in March, so expect them to be the usual Dutch independently minded fun and games. New Zealand, will be worth noting, but also, Iran has Presidential Elections.
I have only just seen this, and it occurs in May, the thing to watch here is if the current President Rouhani, can gain a second Presidency, Ahmadinejad, the previous incumbent, left a poisoned chalice in the form of house ownership, which Rouhani had no chance of following or fulfilling. This has left a sour taste in the mouths of many Iranians, and Rouhani also has a knife edge relationship with the Ayatollahs. I suspect the people of Iran will either re-elect Rouhani, or go for a more radical Presidency, which will set the people on a collision course with the Ayatollahs, interesting times we live in.