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Economy


Sinking Slowly Beneath the Waves

Nobody quite knew how much trouble we were getting into with our fantasy that Financial Markets that are free are also unregulated. Now Iceland and Ireland are succumbing to a wave of global proportions. The wave of zombie banks will not recede until the Recession becomes a severe Depression in those two tiny nations. It is likely that damage will spread far beyond their borders. If they are the canaries we are the miners in this scenario.

The Wealth of Any Nation Belongs to the People Who Create It

Any sweeping statement about wealth is bound to be wrapped up in controversy and tied up in arguments both relevant and irrelevant. The people who create wealth and those who destroy it are often one and the same. Outside of war, the world has never seen destruction of wealth on the scale of what has happened in the current Depression.

The Weapon of Class Destruction is Merit

Watching the Queen of England and Michelle Obama on TV reminds me of how far we actually have come in human affairs. Since the Henrys ruled in that small nation, long before the British Empire was built and then released back into the wild, class has become quite a bit less meaningful.

The Market is a Nasty Master and a Disrespectful Servant

I hear paeans of praise every day from both sides of our political fence for something called The Market. Few fellow humans have ever been able to satisfactorily explain just what they mean by that incomplete phrase.
 
I'm here to help you out. A market is a place where buyers meet sellers for the purpose of both going home satisfied that they cheated the other.
 

The Creation of Value and the Value of Money

MonopolyWe have suffered a huge destruction of value in the last eighteen months; or have we? It seems more and more as if the years of our recent bubble inflation should teach us some lesson, as painful as the deflation has become for most of us. Doesn’t pain always teach us something? Otherwise the purpose is somewhat missing in the process of experiencing all of that anguish and sense of loss.

Leader Less or Leaderless

We are a people working on a disaster recovery plan today. I am working on disaster recovery here at home at one A.M. in the morning by typing away. My daughter who just lost her job is working at disaster recovery in her dreams at her house. My friend and neighbor is pushing dogs over the fence while counting them and trying to sleep. He is working on disaster recovery too.

Why This Downturn May Last Longer

Or Why Depressions Happen During Times of Changes in The Mechanisms Used to Transfer Wealth

Distribution not creation of wealth makes the greatest economic impact. No matter how much you grow the wealth of a nation unless it is distributed widely it does not make the economy stronger. If wealth grows only in the hands of a few wealthy families the economy is stagnant. It is only when economic growth is widely distributed through work and investment that new wealth makes its greatest impact on a society.

Dear Mr. President The Mattress is All We Have Left

Dear Mr. President The Mattress is All We Have Left

President Obama, The real problem with the banking institutions of the USA is not just bankruptcy. It is the amount of drainage the managers of the banks pull out of the system of money management. Every dollar drained off for bonuses and salaries seriously impacts the depositor. It is the imbalance between our interests and those of the people running those institutions that is driving us to put our money under the mattresses.

Let Them Eat Snake (how to cow de cuss of medicine)

Or How Little Private Health Insurance Has Done For This Country

So far our health coverage in this nation has gone from emetic to pathetic. In my early life my mother was our family's only doctor. She dispensed emetics and other bad tasting medicine as needed. She also bound our childhood wounds and we healed the rest of the way by ourselves. I had one visit to a doctor between one and twenty and he saved my life with a penicillin shot.

Where Has all of the Money Gone?


Or how Much all of the Savings Going to the Mattresses Matters

The world is experiencing a savings glut! In the latest gospel according to Paul, Krugman, a newly minted Noble Laureate lasso's the truth with his trusty lariat. The world is experiencing a savings glut! Duh!! I know explaining all of this is complicated. That fact is exacerbated by the publics' ignorance of accounting principles, business principles and the basis of Economic theory. But good grief Paul, just give us a clear path out of here.