Gloom, Doom, and Agony on Me!

The mentality of Military Procurement almost dictates the creation of Corruption in the process. Two companies are vying for the Contract–too few in number to actually be competition. There is no competition in Price–living as these Companies do with only lack of Add-On imagination as limitation of Cost. No one in the Military imagines that Congress will ever fund more than 18-20 of these planes per year. No one in the Military believes either Tanker model is actually superior in design or performance. Everyone in the Military expects the Companies to demand Cost Overruns with the Award of the Contract, likely almost double the Bidding Prices. No one, in the Military or Congress, suggests that Duplication would increase the Cost of Maintenance of the Craft; which functionally would have to be sent back to the factories involved for such servicing along with any Upgrades. Still, it seems that federal Tax dollars must be locked in to the tune of 180 billion Dollars over 15 years, rather than buying yearly based upon adequacy of provision within the Time allotments necessary.

Tyler Cowen will always make a person worry, basically because he presents actual viable Scenarios; I must say all of the listed Components are likely to operate. What then? Humanity is likely doomed, at least I am; Tyler should get a Job with the History Channel. I believe some young, astute Economist should design a smoking volcano model, where emitted Carbon emissions by humanity are equated with volcano emissions; I believe We would be somewhere around 3.5 smoking volcanos. Is humanity eventually going to die off this Earth–Certainly! Is degradation of our civilization going to occur–equally certain, and probably much quicker than eventual extinction. The History Channel will relate that the average lifespan of a human civilization approximates about 300-700 years of existence, and We are getting to be an elderly Civilization; maybe the Mayan prediction of 2012 Apocalypse is correct. Now if We only had another five smoking volcanos.

Mish has a somewhat confusing Post on the relationship (or lack of it) between Commodity prices and Inflation. Readers should keep this Thought in mind when reading: Commodity prices restrain Household budgets, and Inflation equally restrains Household budgets; but that there is no connection between the two forces, until there is an inflation in Household Incomes. Sitting on Household Income will reduce Consumption Sales, and the Business Profits based upon those Sales; without the expansion of Credit. The main Point is that a financial suppression of Credit will present Recessionary conditions, but One has also to remember, that Recessionary conditions will have little effect on the Economy, unless and until Household Incomes are cut. Japan is living proof that a long Recession can be endured with rising Living Standards. lgl