David Merkel asks Us all what economic stories are not being told. I agree that China is way overinvested in stimulus, with their publicly owned companies being a complete loss with no possibility of repayment–either in financial return or in economic production generation. Eastern European nations are deeply in Debt, but possess the residual capacity to eventually repay their loans; something which western European nations may have great difficulty in fulfilling such a program. David says there are Water shortages in China, but does not include the United States, Europe, and Latin America; understand that the Fresh Water problem is looming, affecting almost Everyone, and will not go away easily. He tries to say that Bailouts equates to the ‘Kiss of Death’, a subject which cannot be proven or dis-proven as yet; I still would not bet against him though. Principal forgiveness in mortgages is the "kiss of Death’, a slippery slope where all financial contracts face exterior revision–most undesirable. The insinuation of some banks being insolvent is totally unnecessary, as they eventually must recapitalize, or blow away in the Wind. Study of just these Stories indicate that the world economy is in much deeper trouble that pictured by most Pundits, and much retributive reconstruction must be done.
I asked myself what major Stories are not being discussed on the Internet. The first is my decision that Employment declines remain unscored, and there is no rational scenario for it to increase in the next decade. Stimulus packages are actually counterproductive, and especially further Tax Cuts. Actual Stimulus cannot work without expansion of the Tax base, and there will be none. Tax Cuts themselves remain quite destructive, simply denuding Us of necessary public funding, while likewise disabling business operations; I am trying to set up a economic model expressing the fact that Tax Cuts do not help new business ventures, and aid established business to actually curtail labor assets profitably; allowing them to only offer Specialty Products of limited Production runs, all without loss of overall Profits. My difficulty here in lack of information access, and failure of Time resource–I am quite lazy by most standards (I do have alternate Time sequencing which adsorbs my availability).
Case in Point is my current attempt to finish this Post, as I am already about 15 minutes behind Schedule. I will conclude by telling the Reader that most of the actual Conversation which should be taking place is not being conducted, as there is substantial efforts being made to buy off All who would introduce debate about Issues not desired by Government and Corporation. One cannot fault poor Bloggers for acceptance of Advertising or Job opportunities. I continue only because no one has thought to advance a bribe sufficient for myself to change my general themes. lgl
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