The End

I write this for those few who have maintained consistent watch of this site over the years. I was diagnosed with lung cancer this past week, and will likely not contribute more to this site. I am in Hospice right now, as the combination of low blood flow through the heart and the active nature of cancer rule out any pleasant scenarios for Chemo or Radiation treatments. I wish All well, and that the nature of this blog will be maintained elsewhere by others. lgl

Money mystifies Me

I will tell my Readers to consider this Post, and even study the graphs. I confess that I have a real problem with Stimulus overall. Stimulus, by its very nature, must be significantly effective as to swing the entire economy; when One hopes to draw the economy out of a Recession. Discussion of Stimulus in the context of the 1930s economies implies far less inertial weight to swinging the economy, as does shaking an economy many times that size. Stimulus could well be a economic policy which has reached its limits. Like Karl Smith, I really doubt a Zero Interest rate when Corporations are not spending, and Banks are not lending. I hate to pick on a particular, but the rise in Stocks could honestly express the real Inflation rate, and nothing else. I once long ago argued with a group of friends on the value of outsourcing any Government program established to promote Employment. Outsourcing leads to lobbyist demands to continue funding after the need for extra employment has passed, and the Government could layoff Workers at a proscribed rate; economically justifying the reduction. There is the added problem of Outsourcing costing more than in-house cheap Labor rates, with a Profit for the outsourcing management. I am terribly afraid that this Dog does not Bark, and even does not Hunt. The Fed cannot spread Cash into the economy without having real effect on the Pricing. The hesitation in Market Prices immediately after Fed movement on Cash release consisted of Everyone adopting a ‘Wait and See’ attitude about Price movement, before releasing any valuable Commodity in possession; this means that there was not that much for Sale, while Buyers awaited knowledge of how rising potential Commodity Pricing could affect their Sales structure. Remember this comes from a man who drove a Ford for ten years with a poor Heater in cold Weather; never have bought any Ford stock; I might have missed a real opportunity since the last Recession. I will now delve into Rachael Carson’s ‘Silent Spring’ with the ritual of getting a Banker to admit anything on the Record. We conceive that the Fed adopted the same casual attitude of debt acceptance that the Banks who were borrowing previously had to abandon. This poses a Question for myself: Under what Conditions could a central banking system fold up? I ask ths because Everyone said the big Investment banks were too big to fail. What happens when a few central banks have to admit that they have no real assets, only default Paper? I never claimed to be a Banker, but what are the Options from there? lgl

All that Nit-Picking

I am not one capable of agreeing with the Austrians, Some consider that I do not even understand their Thought processes. I here bring you a Post which I think is important coming from an Austrian, the major purpose of which is to present a Counterpoint to my own Thought, which is truly at odds with all other economic thought. My idea states that Recalculation cannot possibly take place without a fall-off in the Aggregate Demand. Austrian or Keynesian, they all have got it wrong. Recalculation requires that policymakers, whether Private or Public, clearly identify the failures within the current system. What must be fixed cannot be found accurately without the drain of Cash down the Losses hole. Reestablishing the AD simply places a Band-Aid over the Skin Cancer, as We await the deadly fiber to sink to Crisis levels and crippling state. Give me an AD curve which is 20 points below normal, and everyone agrees that Changes have to be made. I find this Post which soothes my achy, breaky Heart. I have long surrendered any goal to become the next great American author, and even to develop a committed online Readership. It is why I am starting to enjoy blogging more than ever. They tell me that what is put on the Internet never really disappeared, simply loses View rate. Now I can play Nostrodomus without Anyone laughing at me, and I might be found to be accurate in a couple of Centuries. What are the Odds? Probably less than I having achieved real Notice on the Internet today, but what the hell, why not go for It? I will finish with this Post today. Everyone wants less taxation, but does Anyone actually deserve it? I am talking about lower Incomes as well as higher Incomes. Would it not be wise to demand a set Tax rate, and collect from All? Here are some of my reasons: the Union and Labor movement would be much more powerful under a set tax rate, and overall Wages would be much higher; the bonus system currently in force would include all Contributors to the Profitability, not just Those at the top of Management; Stockholders would demand a fair share of the final take, and not be left with undistributed Dividends, which are held until upper Management can find methods to absorb most of those Profits; and tax revenues could be stabilized at high levels, and Politicians could be forced to spend within necessary limits. Your Guess is as good as Mine! lgl