Showing posts with label Economy. Show all posts
Showing posts with label Economy. Show all posts
December 4, 2013
January 24, 2013
Is There Such A Thing As Morals In Capitalism?
January 13, 2013
Where's The Next Sector?
But then the topic of automation also came up. Reminiscing about my teenage years I pointed out that in the 1980s I often visited the local library and there were at least 5 women working there throughout the day. In the 1990s that changed dramatically. No longer did you hand your books over to a person. They had made machines for that which scanned barcodes. No longer were there many people there. Just 1 or 2.
Just this afternoon I came across an article in the Daily Mail that shows a restaurant operated by robots. Women who worked at libraries might have transferred to the service sector as waitresses but if this particular job is replaced by robots then where is the next sector?
Often I have had discussions on the internet with proponents of Chicago or Austrian Economics and I'm amazed at how stubborn they can be. They have this notion that the market will create jobs again and again, seemingly oblivious to the fact that with every new step in automation you lose jobs and working hours. Technology and automation will render capitalism obsolete. Time to face the facts...
December 4, 2012
Quote Of The Month
"Growth for the sake of growth is the ideology of the cancer cell."
- Edward Abbey
- Edward Abbey
July 22, 2012
May 18, 2011
Fight Market
Some interesting information surfaced here in Holland about the state and privately held companies. The 'Gasunie', the state-owned corporation that has the monopoly on gas in Holland made a slight miscalculation with supplying its clients such as Nuon and Essent, two major privatized companies and players on the Dutch and international market. Since 2006 and up until now they made some miscalculations with the transport of gas to their clients, at least that's what the VEMW (organization of energy retailers) claims. It's estimated that the companies paid around 1 billion Euro too much.
Naturally, companies such as Nuon and Essent transfer their costs unto their clients, the normal citizen. As a note to the side, you wont believe the taxes people have to pay here in Holland with their energy bill. If my memory serves me right, at least 33% of the energy bill consists of state imposed taxes. 'Environment tax', CO2 emission tax, energy tax. Then the companies themselves charge you with transport costs (which is a derivative from the Gasunie process), administration costs. To top it off there's the VAT (value added tax). One giant cluster frak if you ask me.
Next to the 'gas-cost upheaval' article in the newspaper there was another article which is worth mentioning here. The Dutch I.R.S. (state tax revenue service) conducted multiple investigations in the construction and real estate sectors. 1300 investigated cases revealed that half of them weren't in order and that an amount of 1 billion Euro's was not listed as revenue. Fraud of course. Some 600+ companies are going to be taxed and fined, which will generate 330 million Euro's once more for that state.
These 2 articles show of course the manipulation of the 'market' by both state and companies. I've heard a number of people claim on the internet that 'state interference' should be less and 'small government' should be the norm - because this would 'purify' the system and result in fair prices. (Quite often these people come from the Austrian school of economics.) I couldn't disagree with that concept more. Regardless of the fact that these people are advocating a type of 'economic survival of the fittest' which produces its own cost (socially and environmentally), both the State and private enterprise are equally corrupt when it comes to economics. Both are oriented into maximizing their income whenever and wherever possible. In a system based on competition and profit, everyone is going to bend the rules or outright break them when it suits their purpose.
Naturally, companies such as Nuon and Essent transfer their costs unto their clients, the normal citizen. As a note to the side, you wont believe the taxes people have to pay here in Holland with their energy bill. If my memory serves me right, at least 33% of the energy bill consists of state imposed taxes. 'Environment tax', CO2 emission tax, energy tax. Then the companies themselves charge you with transport costs (which is a derivative from the Gasunie process), administration costs. To top it off there's the VAT (value added tax). One giant cluster frak if you ask me.
Next to the 'gas-cost upheaval' article in the newspaper there was another article which is worth mentioning here. The Dutch I.R.S. (state tax revenue service) conducted multiple investigations in the construction and real estate sectors. 1300 investigated cases revealed that half of them weren't in order and that an amount of 1 billion Euro's was not listed as revenue. Fraud of course. Some 600+ companies are going to be taxed and fined, which will generate 330 million Euro's once more for that state.
These 2 articles show of course the manipulation of the 'market' by both state and companies. I've heard a number of people claim on the internet that 'state interference' should be less and 'small government' should be the norm - because this would 'purify' the system and result in fair prices. (Quite often these people come from the Austrian school of economics.) I couldn't disagree with that concept more. Regardless of the fact that these people are advocating a type of 'economic survival of the fittest' which produces its own cost (socially and environmentally), both the State and private enterprise are equally corrupt when it comes to economics. Both are oriented into maximizing their income whenever and wherever possible. In a system based on competition and profit, everyone is going to bend the rules or outright break them when it suits their purpose.
December 11, 2010
Green Sonja
Take a look at this beauty. The pin up of the banking world from Austria, miss Sonja Kohn. Besides from being a banking pin up Ms. Kohn is sought for damages of $19.6 billion in a civil lawsuit regarding the Madoff Ponzi scheme. (It's tough these days being a banker.) Although she portrayed herself as being one of Madoff's biggest victims she's also accused of conspiring with Bernie for 23 years and funneling more than $9 billion. Uh oh. What is the world coming to when a banker can't do his or her business and raise a few bucks? You can read more about our worlds finest here. I'm sure she also did her bit for charity, mostly herself, of course.
May 7, 2010
Banking Games
More and more I wonder about the current state of the economy globally but also in my own country. Read today on the news that Holland will loan Greece a sum of 4.7 billion. Greece is in trouble and needs a huge cash injection. What politicians over here don't talk about (these days) is the conduct of Greece officials in the not so distant past. Basically what they did was covering up the negative balance sheet, that's against the European Union treaty which states that all the members should keep their balance in check. Greece plainly lied, and here is the Dutch government happily loaning them billions. Of course the underlying motives here are keeping the European economic block intact and to make sure the Euro itself doesn't devaluate (that much).
What many people complain about over here regarding the loan to Greece, is the fact that Holland has about a 30 billion deficit. (That was more or less money loaned to 2 big banks over here - and the banks were nationalized!) What the politicians did next was raising taxes (of course), cutbacks and there's a plan to raise the pension age from 65 to 67. Many of my fellow countrymen are starting to realize that economic downfalls are always billed to the normal, hard-working citizen. Banks make a mess, governments follow and the ultimate clean up has to be done by ordinary people who had nothing to do with the mess in the first place. Awareness is growing. Reading comments on the internet it was plainly visible that not many people expect the Greek government to pay back the money any time soon, or at all! They expect more of the same. Higher taxes, less government assistance.
The IMF loans Greece a further 30 billion, other European countries forwards loans as well. Even when countries loan money, they expect a little something in return: interest! I seem to recall that Greece will get a total amount of about 100 billion. To be honest, I'm thinking, they are totally bankrupt. How are they going to pay back that money? With interest! The Greek people are screwed for decades. Loaning money costs money and it's easy to figure out who will get the 'bill' in the end. The normal hard-working people.
I'm starting to wonder what kind of banking games are being played here. Who will benefit from the current economic turmoil? Because in the end it's the banks that make the loans and who will insist they get their money back with a little something extra of course.
Another thing I noticed is that the politicians in my country don't take into account that the 2 banks they nationalized (bought) will eventually be sold again. That was the plan anyway. Yet now they are acting like if that money will never come back and therefore taxes have to be raised. It's like we immediately have to repair the damage. And maybe we get something back. Dutch people seem to notice more and more who will get screwed in the end.
What many people complain about over here regarding the loan to Greece, is the fact that Holland has about a 30 billion deficit. (That was more or less money loaned to 2 big banks over here - and the banks were nationalized!) What the politicians did next was raising taxes (of course), cutbacks and there's a plan to raise the pension age from 65 to 67. Many of my fellow countrymen are starting to realize that economic downfalls are always billed to the normal, hard-working citizen. Banks make a mess, governments follow and the ultimate clean up has to be done by ordinary people who had nothing to do with the mess in the first place. Awareness is growing. Reading comments on the internet it was plainly visible that not many people expect the Greek government to pay back the money any time soon, or at all! They expect more of the same. Higher taxes, less government assistance.
The IMF loans Greece a further 30 billion, other European countries forwards loans as well. Even when countries loan money, they expect a little something in return: interest! I seem to recall that Greece will get a total amount of about 100 billion. To be honest, I'm thinking, they are totally bankrupt. How are they going to pay back that money? With interest! The Greek people are screwed for decades. Loaning money costs money and it's easy to figure out who will get the 'bill' in the end. The normal hard-working people.
I'm starting to wonder what kind of banking games are being played here. Who will benefit from the current economic turmoil? Because in the end it's the banks that make the loans and who will insist they get their money back with a little something extra of course.
Another thing I noticed is that the politicians in my country don't take into account that the 2 banks they nationalized (bought) will eventually be sold again. That was the plan anyway. Yet now they are acting like if that money will never come back and therefore taxes have to be raised. It's like we immediately have to repair the damage. And maybe we get something back. Dutch people seem to notice more and more who will get screwed in the end.
April 30, 2010
Gordon "Gekko" Brown Part 2
Have a second look at what politicians like Gordon "Gekko" Brown are all about. Jon Stewart, as usual, made a funny sketch about it.
Just goes to show you what politicians are all about, no matter what orientation.
And people accuse Jon Stewart off throwing softballs to leftists... Right.
| The Daily Show With Jon Stewart | Mon - Thurs 11p / 10c | |||
| ||||
Just goes to show you what politicians are all about, no matter what orientation.
And people accuse Jon Stewart off throwing softballs to leftists... Right.
Gordon "Gekko" Brown
Today I watched British prime-minister Gordon Brown make a speech on television, they are having re-elections in the U.K. The thing that struck me is that he basically was saying: 'if you want someone reliable to handle the economy, vote for me because I've done it up to now.' Quite frankly, I'm getting sick and tired of this. Every channel you watch on tv or every newspaper you open is about "the economy," like that is the holiest institution of everything that exists in the Universe. Money clearly proceeds the needs of people, and where does it eventually end up? With the ones who made it in the first place.
People in the governments of the world are nothing but economic managers if you ask me. They are not there for the people, they are there for the money. Maybe Brown should change his last name in to 'Gekko.' That suits him much better and gives a more clearer indication what it is all about.
People in the governments of the world are nothing but economic managers if you ask me. They are not there for the people, they are there for the money. Maybe Brown should change his last name in to 'Gekko.' That suits him much better and gives a more clearer indication what it is all about.
March 15, 2010
Double Whammy
You know, when I read articles like these I get more then a little upset. The same people that were responsible for the credit crisis go happily on their merry way and collect bonuses like they are starving for money. Taxing the hell out of such people sounds like a fine idea to me. Lets not forget that often these were the same people that needed bailout money from their respected governments, and now when things are rolling again it's back to groping as usual. It's just staggering to see how much bonuses are given to the top executives of the banks and going down to middle management.
But what do the top-earners actually do with their money? Ever given that some thought? Sure, they buy a big house with a couple of sport cars in the garage. Maybe a new set of breasts for their wife, a boat and second home. Maybe something for the mistress, and so on. Yet they still have a ton of cash to spare. Do you think they give all that money away to charity? Nope. Maybe something that helps with the tax return. Think again. They invest that spare money most likely in stocks, precious metals and property.
Who do you think has the most stocks and are the biggest shareholders of companies? Your average blue collar worker 'Joe Six-packs' or the $2000 suit wearing 'Mr Big's?' Of course the latter is the type of person that holds the most stocks. What else are they going to do with their money? Give it to you? The rich hold the most stocks and the rich are the bonus receivers. Not only do they get the most income, they also hold the most stock. This is a double whammy if you ask me. When you work for a major corporation you're not just working for yourself, you're working to make other people richer then you.
And this is the world we live in. Once you develop eyes that can see you'll notice the pyramid structure of our 'modern' society and where the rules work just a little better for the upperclass. You do realize who makes the rules, don't you?
In my country 2 ministers quit their jobs last week. They wanted to spend more time with their families. The politicians over here have a funny sort of arrangement when they quit their jobs; it's called "wait-money." Basically what that means is that their income is guaranteed for the next 6 years. The first year they get 80% of their previous income and the second year 70% (for 5 more years). Their income as politicians was 140.000 Euros a year. Should they find a new job which pays less, then the government pays the shortage to the level of their 'normal' income (as a politician). And as a final insult; they are not obligated to apply for a new job...
You know what the normal employee gets when they quit their job? Nothing. You can apply for welfare but if you have some money on the bank or you have property, you can use that up first. When you get laid off (without your fault) there's an arrangement. You get (from the state) 70% of your previous income for a maximum of 3 years (and there's also a maximum income of 186 Euros [without tax] a day. Plus you have to apply for a job once a week or you'll get fined on your benefit or lose it entirely. Isn't this a marvelous example of double standards?
Take a hard look at the world you live in.
But what do the top-earners actually do with their money? Ever given that some thought? Sure, they buy a big house with a couple of sport cars in the garage. Maybe a new set of breasts for their wife, a boat and second home. Maybe something for the mistress, and so on. Yet they still have a ton of cash to spare. Do you think they give all that money away to charity? Nope. Maybe something that helps with the tax return. Think again. They invest that spare money most likely in stocks, precious metals and property.
Who do you think has the most stocks and are the biggest shareholders of companies? Your average blue collar worker 'Joe Six-packs' or the $2000 suit wearing 'Mr Big's?' Of course the latter is the type of person that holds the most stocks. What else are they going to do with their money? Give it to you? The rich hold the most stocks and the rich are the bonus receivers. Not only do they get the most income, they also hold the most stock. This is a double whammy if you ask me. When you work for a major corporation you're not just working for yourself, you're working to make other people richer then you.
And this is the world we live in. Once you develop eyes that can see you'll notice the pyramid structure of our 'modern' society and where the rules work just a little better for the upperclass. You do realize who makes the rules, don't you?
In my country 2 ministers quit their jobs last week. They wanted to spend more time with their families. The politicians over here have a funny sort of arrangement when they quit their jobs; it's called "wait-money." Basically what that means is that their income is guaranteed for the next 6 years. The first year they get 80% of their previous income and the second year 70% (for 5 more years). Their income as politicians was 140.000 Euros a year. Should they find a new job which pays less, then the government pays the shortage to the level of their 'normal' income (as a politician). And as a final insult; they are not obligated to apply for a new job...
You know what the normal employee gets when they quit their job? Nothing. You can apply for welfare but if you have some money on the bank or you have property, you can use that up first. When you get laid off (without your fault) there's an arrangement. You get (from the state) 70% of your previous income for a maximum of 3 years (and there's also a maximum income of 186 Euros [without tax] a day. Plus you have to apply for a job once a week or you'll get fined on your benefit or lose it entirely. Isn't this a marvelous example of double standards?
Take a hard look at the world you live in.
June 29, 2009
The Madoff Benefactors
The last 6 months we saw many people on television who lost a lot of money because of Bernie Madoff's Ponzi scheme but what you hardly see are the persons that benefited from it. Yes, there are folks who got out in time and made a lot of money, but do you see those folks on television? Not really, right? Here's an article from MSNBC which details one person who in fact profited heavily from the scheme.
Allegedly Jeffry Picower withdrew $5.1 billion from Madoff's accounts.
Between December 1995 and December 2008, Picower and his family withdrew from their various Madoff accounts $5.1 billion more than they invested with the self-confessed swindler, according to a lawsuit filed by the trustee who is trying to recover money for those Madoff defrauded.What people tend to forget is that besides people who lost money because of Madoff, there are some people who made a lot of money because of Madoff. Yet, not surprisingly, those people don't come forward. You can wonder just how much of the $50 billion that investers lost wound up in the pockets of people like Picower, and if they would be willing to return their investment. They are pretty quiet right now. . .
June 24, 2009
The Controllers
From the world wealth report 2009;
The number of high-net-worth individuals grew by 6% to 10.1 million worldwide. This is also a slower pace than the 8.3% increase seen in 2006, due to weakening global economic conditions. The combined wealth of these individuals is now estimated at over $40 trillion, with the average HNWI wealth surpassing US$4 million for the first time
The number of ultra-high-net-worth individuals (people with net assets of at least $30 million, not including their primary residence) grew by 8.8% to more than 103,000. This group also saw a 14.7% jump in their combined wealth to $15 trillion.
North America remains home to the highest number of wealthy people, with 3.3 million high-net-worth individuals, but the wealthy populations in some emerging markets continue to grow at impressive rates.
In 2007, India, China and Brazil saw the biggest increases in the number of wealthy people. India was the leader with an impressive 22.7% increase in the number of high-net-worth-individuals. China also saw a 20.3% jump in its population of high-net-worth individuals, while Brazil¹s population of millionaires increased by 19.1%.
The projection is 7.7% for the annual growth in the number of high-net-worth individuals globally until 2012.
February 20, 2009
What's Wrong With The Economy?
Just read this article on CNN.com and I wasn't surprised in the least. These are all just symptons of the same disease which seems to manifest quite profoundly in financial markets and companies around the globe. That disease would be greed. Have a look at what attorney general Andrew Cuomo had to say;
If you pay close attention you'll see that this is a pyramid system. The top, lets call it for what it is, (barely staying legal) steals the most and the lower you are in the pyramid the less you get. This is the mindset of the top executive branch, enrich yourself at the expense of everything else. What's wrong with the economy? People like that!
"Merrill Lynch's decision to secretly and prematurely award approximately $3.6 billion in bonuses, and Bank of America's apparent complicity in it, raise serious and disturbing questions," Cuomo wrote in a letter to Rep. Barney Frank, D-Massachusetts, chairman of the House Committee on Financial Services.
In his letter to Frank, Cuomo said Merrill gave bonuses of at least $1 million each to 696 employees, with a combined $121 million going to the top four recipients. The next four recipients were awarded a total of $62 million, and the next six received $66 million, he said. In all, the bonuses for 2008 totaled $3.6 billion.
"While more than 39,000 Merrill employees received bonuses from the pool, the vast majority of these funds were disproportionately distributed to a small number of individuals," Cuomo wrote. "Indeed, Merrill chose to make millionaires out of a select group of 700 employees."
If you pay close attention you'll see that this is a pyramid system. The top, lets call it for what it is, (barely staying legal) steals the most and the lower you are in the pyramid the less you get. This is the mindset of the top executive branch, enrich yourself at the expense of everything else. What's wrong with the economy? People like that!
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