Archive for the ‘economics’ Category

Bloomberg speaks truth to power

Saturday, March 2nd, 2013

Bloomberg speaks truth to power
When I was in Sunnyvale in 2005 November, the vast majority of people who were buying million dollar houses were no-hablo-english hispanics on foodstamps with no regular job buying houses no money down. As far as I could tell, every person buying a house for over a million dollars was an unemployed underclass non white. Earlier there had been some whites buying, but by November, anyone with a credit rating or an employment history had given up on buying or was trying to sell.

I don’t have any direct evidence that Bloomberg’s cover accurately displays the way things are now, but it accurately displays what I saw with my own eyes in Sunnyvale California in November 2005. It was million dollar welfare handouts back then, and I doubt that things have improved under Obama.

You may ask who gets to lose the money this time around. The answer, this time around, is instead of the fed indirectly, it is the fed directly. Instead of bailing out those who irresponsibly buy mortgage backed securities, it has been buying mortgage backed securities directly – which means those who foolishly treat dollars as money will, eventually, be those paying.

The pile of hundred dollar bills that the dog is using for its bed were freshly printed up by the federal reserve, which obtained in exchange mortgage backed securities, hence reports no loss. Indeed, it has reported no loss on any of the very large pile of mortgage backed securities that it now owns, even though, for the most part, no one has made any payments on the mortgages underlying those securities. This is your off the books deficit, which outweighs the on the books deficit to the same degree as off the books welfare outweighs on the books welfare – your deficit, in the sense that if you are one of America’s rapidly diminishing minority of taxpayers, people think you are going to pay it. You are going to be making that dog’s bed.

Mestizos in California drive cars even though no one really expects them to have a driving license or third party insurance, and not all of them know how to drive a car. To deny them the right to drive a car by imposing white centric standards of licensing on them would be raaaaciiisssst. Similarly, expecting them to make payments on the mortgage would be raaaaciiisssst.

Equality before the law obviously is not equal if the law reflects white behavior. And so, equality before the law quietly transforms into statistically equal impact of the law. Expecting mestizos to make mortgage payments would impact them more severely than it impacts whites. Mestizos are a voting majority in California. Californian blacks, who are a voting minority, still need to pay their mortgages and get driver’s licenses. Theoretically Hispanic privilege extends to all Hispanics, to anyone who claims to be Hispanic, and that is federal law and practice, but suspiciously white looking Hispanics find that they do not get some of the more outrageous Hispanic California state privileges. Now that Hispanics have a majority in California, it is becoming harder to qualify as one of this privileged group.

Sequestration

Friday, March 1st, 2013

The US Government is launching a big propaganda offensive on how hurtful sequestration will be, and keeps issuing lists of the horrible horrible horrible harms sequestration will cause.

What the sequester reveals is that the great majority of government expenditure consists of paying people to support the Cathedral and the Democrat party.  (more…)

Postmortem on Warmism

Thursday, February 14th, 2013

We are always moving leftwards, but not every leftwards program succeeds. Should one fail, they try something different.

I have not published much on warmism lately, because they were defeated by Climategate, even though every academic institution, every government institution, and every group of organized scientists swore fealty to Warmism, officially proclaimed that Climategate was no big deal, and have been trying to carry on as if Climategate was no big deal. But now they are subsiding, so time for a post mortem on the warmist movement, which has pretty much gone the way of the communist movement, where fans of the proletariat have shrunk down to few little academic circles holding reality at bay from behind their little Berlin walls, while the rest of the communist movement substitute females and minorities for the proletariat, and continue business as usual. (more…)

Civilization: Hold back the darkness

Sunday, February 3rd, 2013

It is often said, and is true, that progressivism is in revolt against nature, but it is only true because progressivism is in revolt against the past and past knowledge, and a large part of our accumulated wisdom is knowledge of the nature of man, what humans naturally are.  Progressives are not only in revolt against nature, but revolt against civilization. (more…)

People of negative economic value

Friday, February 1st, 2013

The racial problem is that stupid people can vote, that incentives for good behavior are weak or nonexistent, and that some people are unresponsive to incentives.  Stop voting, ensure that everyone has good incentives, and then the problem is reduced those people unresponsive to incentives, a markedly smaller problem.

Nations with slightly higher IQ are markedly wealthier than nations with lower IQ, but individuals with markedly higher IQ are not markedly wealthier than individuals with markedly lower IQ.

The difference between nations is well approximated if we suppose that people with an IQ above 105 all have roughly comparable productivity, and are responsible for producing almost everything, and people with IQ below 105 have negligible productivity, and are all parasites.  But individual wages do not fit this picture. Obviously a low IQ person who is working for a living in private enterprise must be producing value at least equal to his wages.

Moving from a nation with low average IQ to a nation with high average IQ substantially benefits the migrant.  No one wants to move in the other direction.

This only makes sense if people with high average IQ produce large benefits to those around them, and people with low average IQ produce large costs to those around them, negative externalities.  (more…)

Radish defends slavery

Tuesday, January 29th, 2013

As usual, good reactionary stuff.

You favor abolishing welfare: What do propose to do with all the able bodied people that are too lazy or too violent or have too short a time preferance to hold down a job?

Once upon a time, such people were put on the chain gang. Progressives did not like private individuals owning slaves, but they just love governments owning slaves. Look how they loved communist china, and look how bitterly outraged and indignant they became when the Chinese government realized that most people do better work as employees, rather than slaves.

Fed has no gold

Friday, January 25th, 2013

Supposedly, the Federal Reserve has mountain of gold, seven thousand tonnes stashed in various places in the US.  By an astonishing coincidence, it owes banks in other nations seven thousand tonnes of gold.

The Fed owes the German government fifteen hundred tonnes of gold.  Germany asked for its gold back.  The  Fed did not want to give it.  So Germany asked for three hundred tonnes of gold back.  The fed agreed, in principle, to return three hundred tonnes of Germany’s gold – over seven years.

Why so long?

This only makes sense is the fed has considerably less than three hundred tonnes left and they hope to quietly purchase three hundred tonnes over the next  seven years using freshly printed money.  Stalling is going to create fear.  If the fed is stalling, it can only be because it has absolutely no alternative but to stall.

Recall the bank run scene in “It’s a wonderful life”.  Imagine if the bankers had said, “No problem, we have your money, but, alas, due to postal delays and that our clerks a bit slow counting it is going to take seven years.”

Kill their leaders and convert them to … progressivism

Monday, December 17th, 2012

Ann Coulter famously said “Kill their leaders and convert them to Christianity”.  Regrettably, all the versions of Christianity that once upon a time would have been capable of implementing such a program have replaced the worship of Christ the Redeemer with Jesus the community organizer.

The “Arab Spring” was the Cathedral deluding itself that it was installing progressive “Muslim” regimes in the Middle East – only to discover what was obvious to everyone else, that it was installing “progressive” Muslim regimes in the Middle East.

For a long time the Cathedral has been promoting a transformation of Islam, promoting progressive Islam, which I parody as “There is no God but Allah, and Mohammed is his prophet, and Mohammed, rightly understood, was a feminist and gay rights supporter who only commanded killing Zionists, not killing Jews as such, and furthermore opposed terrorism, except when conservatives and Jews who won’t get with the program get terrorized.”

They believe they are succeeding, but this belief is deluded.  They think that they defeated Christianity by persuasion, by the self evident truth of progressivism, and don’t realize that they crushed Christianity by theocratic state power.  (Any Christian commenters who think their Church is still doing fine, how is your church treating divorced women who want to remarry?  If your church has yielded on several major points, it will soon be yielding on several more, until Christ the Redeemer becomes Jesus the community organizer, and the Father, Son, and Holy Ghost become the spiritual force, so as not to discriminate against parishioners who believe that Jesus gay married Buddha and visits earth from time to time in a flying saucer.)

Progressives gravely underestimate the amount of violence required convert Muslims to progressivism, because they gravely underestimate the amount of violence they used to convert Christians to progressivism.

Progressives think that sincere Muslim believers are rural rednecks, people living in mountain compounds, and that is where they send the drones to blow up terrorists.  They think that people like themselves – urban, privileged, affluent, highly educated in all the correct elite schools – must be progressives and cannot possibly be terrorists, cannot possibly take religion seriously, but, in a Muslim country, that is exactly where you find the Muslims, aka “terror”. In a theocratic state, belief in the official theocratic beliefs is strongest among the products of the elite schools, and affluent people living close to the center of power, such as, for example, Barack Hussein Obama and Osama bin Laden. We are a progressive atheocracy, the Middle East is full of Muslim theocracies.

The reason that in America, the Christians tend to be in the backwoods and away from the center of power is that the official religion, progressivism, dominates and is more passionately believed, the closer you are to the center of power.  Obviously, in a theocracy, faith is centered on the capital, the government bureaucracy, the elite schools, the privileged, the powerful, the wealthy.  School attendance is church attendance at the official church.

There are moderate Muslims but there is no such thing as moderate Islam.  Moderate Muslims are Muslims who don’t take Islam seriously. And you find them in the backwoods and rural areas, in the same sort of places as in America you find Americans who don’t take progressivism seriously.

If you want to make war on “terror”, you are going to have to make war on Islam, which means you are going to have to start by blowing up the leading schools and think tanks where the children of the privileged hang out.  Progressives are losing against Islam because they are blowing up the wrong Muslims.

When Sunni Muslims are in power, they persecute Alawites in the same way they persecute Christians and Jews, since they don’t believe the Alawite claim to be Muslim.  To avoid persecution, Alawites seized power in Syria.  The Cathedral perceived this as soldiers snatching power from priests, or, as they phrased it, “undemocratic”, though Alawites are Muslim enough that the distinction between soldiers and priests is small, thus the distinction between democracy and military dictatorship is small. Alawites claim to be Shia Muslims, a claim barely tolerated by Shia Muslims and generally rejected by Sunni Muslims. Alawite ruled Syria allied itself with Shia Iran, allowing Iran to project force against Israel and hostile Sunni Muslim powers, whereupon Iran found it convenient to give credit to the Alawite claim to be Shia Muslims.  Because Iranian aid to Hezbollah and such was channeled through Syria, the Cathedral defined the Syrian regime as “terror”.

And so, the Cathedral set to overthrowing the Syrian government, intending to replace “terror” with progressive “Islam”

The Alawites fought back with unexpected ferocity, knowing that if the Sunni majority gained power, they would be enslaved, and so the war went on inconclusively.

Syrian Christians support the Alawites, and are fighting beside them, which tells me that Alawites are less dreadful than most Muslims, which is probably the reason that Sunnis don’t count them as Muslims.

Indeed, the fact that there are a reasonable number of Syrian Christians still alive tells me that Alawites are less bad than most.  America should not be fighting on the other side from middle eastern Christians.

After the murder of America’s Libyan ambassador, the Cathedral suddenly realized that in a genuinely free and fair Syrian election, an al-Qaeda franchisee would likely be elected.

Moderate, which is to say insincere, Muslims seem to be in short supply in Syria.  So now, in Syria, we have a three cornered war, the Cathedral versus the Alawites versus the Sunnis, the Cathedral versus just about everyone in Syria.

Kissinger said of the Iran Iraq war

“It’s too bad they both can’t lose.”

Whereupon Reagan proceeded to make sure they both did lose.

I hope that in the Syrian war, all three of them will lose.  Indeed, chances are, all three will lose.  The Alawites have their backs against the wall, and no alternative but to hang on to power, so in the end, will probably do so, but pay a very high price for doing so.  Everyone says that the Assad regime, which is to say Alawites, are on their last legs.  Perhaps they are, but they have been on their last legs for a long time.  The next most likely outcome is that Al Qaeda gets Syria, while progressives continue to piously pretend that progressivism is winning.

The Syrian government, which is to say the Alawites, agreed to hold free and fair elections, under supervision of China and Russia, but with the Alawites organizing the election. This was of course entirely unacceptable to the Cathedral, which wanted the Alawites to first be thoroughly removed from any power, and then elections held under the supervision of the Cathedral.

The Cathedral proposal resembles the “election” whereby it installed Aristide in Haiti. Not only are the Alawites unlikely to fall for that one, the Sunni majority are not going to fall for it either.  If the Sunnis win, there is going to be a genuinely democratic election, one man, one vote, once, and then an Al Qaeda franchisee will be in charge, while New York Times optimistically rationalizes that Al Qaeda franchisees contain moderate elements.

Derivatives did it!

Wednesday, December 12th, 2012

Bernie Madoff steals from his depositors. An evil Jew did it! Punish the evil Jew Bernie Madoff. Jon Corzine, pillar of the progressive establishment, senior financial regulator, steals from his depositors. Derivatives did it!. Poor Jon Corzine. We must punish derivatives by regulating them further. (more…)

China more capitalist than the USA

Monday, December 3rd, 2012

With the USA becoming more socialist, and China more capitalist, it was inevitable that they would cross over.

And so today we see that private property rights in China are more secure and respected than in the USA.

Which means that in a little while, the average Chinese will be richer than the average North American.

At present, Chinese cars per capita is 21% of the US, electricity per capita is 29% of the US, and most middle class goods are roughly similar, which suggests that Chinese GDP per head is somewhere around a quarter or so of US GDP per head, despite optimistic US figures to the contrary. Since Chinese GDP is rising at about 10% a year, while US GDP per head is probably falling, despite official figures supposedly showing that it is rising, individual Chinese should be richer than individual North Americans after 2026 or so, assuming both countries continue on their current paths for that long, China continuing to head towards capitalism, and the US continuing to abandon it.