Shallow False Readings

Alan Blinder goes on record as stating that corporate compensation should be limited to discouragement of excessive risk-taking, as recorded by Mark Thoma. What Mark, Alan, and most Others fail to draw attention remains the fact that Executives allow little Risk to penetrate on their positional employment, and that they are always risking other peoples’ money. I would favor a Junior Partner compensation schedule, where Executives are paid only a small minimal base pay, and the rest of their compensation comes from a reverse Mortgage system where they are paid monthly out of the Profits from the programs of which they were an initiative or supervisory force–of only Thirty years duration, and missed month payments are waved Goodbye from the Stands as they permanently leave the Game. It is a cruel World indeed, and Executives may join the rest of Us in search for a safer environment.

I will let the Readers examine this Post, and ask themselves at which point did the author go wrong. Recaltiant debt consists of such debt which can be justified or paid–think of the current crisis in California. The debt itself becomes an industry, and like any money-making venture, attempts to maximize its Return. Funding is dependent upon subscription of the debt, said subscription bound to lessen upon available Investment elsewhere of greater safe Return. The Interest rate will increase faster than the Inflation rate, else there will be loss of subscription. The Government cannot permanently limit the Interest rate, or risk loss of subscription, a process which devolves into the Government printing their own money simply in mode alternate to Currency. I should write a Paper on the instability of sustained debt over Time, but my own Pay Scale is so low it is not worth the effort.

The Baltic Dry Index has been increasing rapidly; it being a good measure to evaluate the stability of industrial production. I do not know that I would use the term ‘Capesized’ in the discussion of Ships as the FT.com, something which is close to ‘capsized’ in nautical terminology. The Cargo loads awaiting outside Chinese harbors, in itself, may be a worrying factor; this occasioned by a potential Downsize of harbor personnel, a factor analysis should be advanced on unloading speed at the harbors. I would not call this Index a ‘Green Shoot’ until I see an equivalent fill of these Ships in Chinese harbors; a process I find unlikely without extensive Chinese recruiting of industrial labor. lgl