Cash dam

October 27th, 2011

Cash dam

~ Busy beavers have been busy ending the cash flow.

A lot of theory has been written over the years explaining how money works (it doesn’t) and about “cash flow management” and how savings and investment create a better life for all.  It’s all BS.

If one had to choose which would come first, the end of history or the end of money, I bet a full 99% of everyone would accurately predict “the end of money”.  It’s not that they could predict why or how or even when (exactly), but based on life experience “they” would know that something was going on that was terribly wrong and that when you get (daily) less for what costs (daily) more then at some point (soon) money will be worth nothing as it will acquire nothing regardless of how much of it you have.

In such circumstances an intelligent person would dump all their money as fast as they could, exchanging the cash for something with greater weight or usefullness than paper printed with holograms and fancy ink.  The “bottom line” is that money must “flow” to be useful and when it stops flowing because of cash consolidation (too much money in too few hands) then the whole idea of money seizes up and cash stops being King and and the cash kings are soon reduced to pawns or paupers or something worse than being just dead.

In the process every entity and institution that is dependent upon cash and cash flow soon seizes up, shuts down, goes underwater or otherwise enters demise, which means “fail”.  So the end times (of money) is characterized by seemingly wild and irrational spending AND the hoarding of cash as though the green stuff actually had a future.  In this environment debt and cash are equal, they both can “buy things”, all moral compunction about ever paying either back is lost as everyone realizes that all money is just “debt” and having money is not evidence that anyone will ever honor it by parting with ANYTHING of value.  Oh my.

Things change very fast in this danger zone.  Fixed value items, like food and water and electricity remain the most fluid and stable.  Optional and discretionary items don’t stand a chance.  One day donuts or bangles may be the latest fad, the next day they are too expensive and are soon gone.  “Just in time” manufacturing needs just a moment to change direction and send the product message “kill”.  Consumer “demand” can create nothing when all real manufacturers are used to and expect to “make a killing”.

In this scenario almost all cash spent ends up in the hands of the richest, being the hands where the money will “do” actually the absolute least good.   The rich are always the most conservative, don’t need the money, and are the most cautious about parting with the money that they have unless they KNOW that they will make MORE MONEY before they even think of spending it.  Money in the hands of the rich is like DEAD MONEY, its stopped revolving, doesn’t have a heartbeat, and already has rigor mortis setting in.

The good thing about this end times process is that with each passing day there is noticeably less money in the publics pocket and that means that the pace of money contraction can only increase and will probably start increasing DRAMATICALLY.   Ask the cops, they DO LOVE the DRAMA!

The three signs of a collapsing society are (1) loss of trust in government, (2) loss of trust in businesses, (3) loss of trust in things.  The cause of (1) is “big government, too big to fail”.  The cause of (2) is “big business, with too little real competition”.  The cause of (3) is a society hellbent on a consumption that far exceeds any real need.  After the collapse life returns to something based on “simple”.  Simply put, it means that only those who can do something both basic and useful have a future, the money part is NOT a part of the equation.

So take your money out of the banks by November 5th (or earlier, or later).  Save it or spend it.  Give the greenbacks back to Caesar, retire the debt, cancel the loan – get something for the hours of labor you put in when you exchanged all that hard work for “just a piece of paper”.  It’s like a game of musical chairs, too much money and not enough products to make it meaningful – someone (many) will have to lose.

2011.10.28 – 04:13.

The disappearing present

October 25th, 2011

The disappearing present

~ What we want is not “we”.

“The younger generation don’t have a future,” says Mr Kedikoglou. “They don’t even have a present.”

The above quote is from an article about the latest crisis in Greece.   The bottom line is that there is a new crisis (there) every day, perhaps two or three times a day.  The situation is NOT getting better.  Things can (and WILL) only get much worse.  There are no solutions, there is only MONEY and money can’t and won’t solve anything when the concentration of wealth has gone critical – which it has.

There are certain myths that are dying daily, like the one about how it takes “the rich” to create jobs.  No, the rich destroy jobs by their “wealth creation”.  They destroy the jobs created by small businesses and those who farm and fish and hunt and gather and fend for themselves and help other people at the same time while fending.  Planting 160 acres in wheat or corn, harvesting a few trees from a forest, fishing in the coastal waters is all “work” and constitutes the best of jobs.  It is only when the wealth of man and nature is consolidated in the hands of the few when these good jobs disappear and when people are forced from their homes to work for others.

The factory town is capitalism, not America.  America was not found on the backs of banks, not found on finding loans and borrowing money and credit cards and debt.  Look at the output of Currier and Ives and you will see how America once lived when its people were happy.  There is no commute to work, no “happy banker”, no engravings of loan collectors repossessing the family riverboat or farms.  There is no Currier and Ives picture of the best of prisons, of “America’s finest” clamping down the cuffs and chains on other Americans driven to the need to protest.  The nation was different then, or at least the American Dream.

Every city, every town in America is now a factory town.  The smokestacks are gone, the only pollution is the incessant smell of paper.  The friction of the financial rubbings (robbings) create the obnoxious scent on nostrils of a nation in collapse, free-fall and despair.  It is not our future that we’ve lost; like Greece, it is the present.

The chain-mail that is the chains and chain-store malls and chain store businesses that are a poor substitute for real jobs and a real life of interaction with community and nature are the only ties left that bind us.  We shop at Walgreen’s or Trader Joe’s or Wal-Mart, we eat or drink at Burger King or Starbuck’s.  We trade at Safeway or the A&P, buy our gas at Chevron or Shell.  We are the captains of consumption when each last little bit of nature consumed is but a bit of plastic gouged from the earth to create just chemicals and pain, and there is nothing green in the process, nothing “earth friendly” about all the waste.

We can not rally round the flag (boys), cannot want and relate to “others” when all the others are just the same as us, or we, or what we have all become in our collective embrace of this madness.  There is no joy in disemboweling Wall Street and your local (national) big bank when all you get is a sleepless night in another factory town when the party is over.  There is no “back to nature” when all the land is owned by the government and big industry and the 1% of idle rich. and they are always idle when the people can still eat “cake”.  The only device capable of really changing things is the guillotine, just ask the French.

So, don’t look now, but America is not just changing, it is disappearing faster than a Wall Street minute.  It is the PRESENT that’s going, not the future, not the past.  The future is just fantasy.  The past is the only place that’s real.  “Be here NOW,” I don’t think so.  There is no NOW on which to base anything.  Get used to the new reality.  Can you dig it?

2011.10.26 – 00:40.

Fear of Winning

October 24th, 2011

Fear of Winning

~ Wealth distribution shouldn’t be dependent upon “re”.

I was drinking in the Blind Lemon (in Berkeley) long ago and among the peanut shells on the barroom floor the conversation turned to wealth redistribution.  You see, I was conversing with someone very rich, someone descended from ancient whale oil money and more recently electricity.  To say this person wasn’t schooled by the advent of student loans is to restate the obvious.  Being a part of the 1% alleviates one from the humdrum life of deficit, debt and want.

“She said”, as I said, that it would do no good to give away my money, to the poor or elsewhere as If I did, the money that I gave up today would tomorrow by redistributed to the hands of the few as ordinary “people” are neither wise nor proud nor inclined to thrift or patient industry when it comes to wealth.  The foregoing is seen best as almost a quote.

The point was perhaps that the rich are wiser than the common folk and thus should be “by God above and circumstance” be custodians of most if not all of the money.  The rich do get richer, and the poor (obviously) must get poorer, and THAT is the way things ARE and of necessity should be.  Amen, or perhaps just Hail Mary and praise be to Buddha – so be it.

I (of course) was in a conundrum.  If I valued wealth I should support this girls inclination to keep it.  If I trusted the common man or woman or person or whatever to be wise I should speak up forthrightly and say, “give your money away and risk your life to starting over and starting equally with the unequal advantages that you have had”.  I didn’t (say that).  I agreed (instead) that the poor and wanton under-class was unwise and unschooled in the ways of wealth and money and fortune and good fortune were it to come.  The system may be flawed (I admitted), but it is flawed to favor the rich and that flaw is not so bad as to force a remedy that would disfavor the rich whom disfavor the poor and the justice that equal distribution of wealth would uplift to equality if not equanimity.

So, thus began my flirtations with the rich and landed and the love of the life that they sought or begot or somehow “had”.  It was not a lasting romance.  It was a love left unrequited in that the love of money can not be replaced by the love of just a man.  But it is an old, if not ancient, theme – it is Cinderella and the crystal slipper and the story of Fort Knox – it is the idea that wealth moves from person to person and does not just stay forever in basically the same hands.

So what is wrong with a little wealth redistribution now and then?   Maybe once every 100 years (or so) a nation should try it.  Maybe everyone should start from “scratch” and find out how wise and wonderful they really are and not how wise and wonderful “grandpa” or “grandma” or Uncle Scrooge or Uncle Amos might have been.  You take ALL the money and divide by the population and then each person gets their share, the land too, the shares, the factories, the oil underground and the gas resources and the gold – each person on July 4th starts EQUAL, economically and Under God.

Oh sure, some would still have the “gift of gab”, a silver tongue, a wagon load of potions and snake oil remedies to rob the wealth of the masses and put it into the hands of the few.  A few would be gullible, not savvy; would let their fair share of fortune go and rue the day of weakness and confusion and greed and want.  They would be the poor whose children would be raised in poverty and filth and unkind circumstance for a hundred years beginning on that day.  A sad story, but NOT a life eternal.  100 years can pass so fast, then there is a second chance, a new chance at redemption (financial if not just moral).  The “sins of the father” should only have to last so long.

There is a wickedness in the current financial system.  It assumes that “wealth” in the hands of the few should last forever.  It assumes that the poor should just get poorer and that bootstraps are the way to wealth and not just strips of broken leather.  If one person “poor” became “rich” who would not recognize the story as a fairy tale, as Cinderella, as Horatio Alger on speed?  Earning $500,000 per year is NOT like owning property worth $500 million; you’re doing quite well, but you are still just so damned poor.  Below you are just more of the ever poorer.

The “game” is not just keeping up with the Joneses.  The point is that equality is GOOD.   Starting on an equal footing now and then is not just a dream, it is probably a RIGHT!  The world that the rich have created is not just bad, it’s deplorable.   The bottom line is that even the worst of the ignorant could do much better.  Let’s have at it.  Let’s give the “B” Team an equal chance.

2011.10.25 – 03:24.

Life, Death & Taxes

October 7th, 2011

Life, Death & Taxes

~ It’s a lot like a new game of Clue.

I was going to write a post the other day about “Clue Revisited”.  It was about a new version of the game, devoid of the biases of Miss Marple.  It would update the old parlor game, the house, the usual suspects, the weapons; everything would be new “and global”.

“Obama did it in the Gulf with a controlled demolition.”  Next game:  “Bush did it in the Towers with Corexit.”   “Cheny did it in Yemen with Weapons of Mass Destruction.”  The clincher:  “Pelosi did it in Wall Street with a Drone.”  You get the idea, the game would be a lot of fun – Clue for the New Millennium.  What is life without a little treachery, blood & guts, destruction and mayhem?

So it took hitting the “younger generation” in the pocket book to get them started, to get them off their “too comfortable arses” and out of the buildings and into the streets.  Let’s hear it for the power of unforgiveable student loans and the great expectations of college educations providing more than a Wal-Mart stockers pay.  There’s hell to pay when the masses learn that the only American Dream that there is is borrowed and that there are no banks that can make that type of loan.

The Republican Party will arrive on the proverbial trash heap of history as the 312 million Americans realize that they will NEVER get rich, be rich, or even want to be rich.  The Republican Party will arrive on the proverbial trash heap of history as the 312 million Americans realize that all the “1%” positions (the role of being rich) are taken, and were taken a long-long time ago by a system of great inherited wealth, corruption, insider connections and power.

Yes, I read the headlines, “Jobs is DEAD”.  And the economy is dead, and hope is dead, and so too are all the day dreams of any shared wealth or power.  They aren’t making any new millionaires or billionaires in America, all “those” jobs have been moved out to overseas.

There is a quiet dignity in being middle-class and poor.  It is the ONLY dignity that America has left in this poor old world.  How can you have “class-warfare” when the rich “class” is so class-less and so crass, so degenerate and vulgar?  “Envy the rich?”, I don’t think so, not everyone aspires just to be a “fuc*er”.

Americans are waking up to the FACT that the only ones that benefit from any taxes are those that are feeding at the public trough, meaning the businesses, the corporations, those that “benefit” from public expenditures and public funding and public spending on missile plants, on bridges, on Boeing.   Sure “food stamps” are nice, but they are a pittance compared to the cost of endless war that provides endless wealth to the 1% who profit off human misery.  End food subsidies and the revolution starts the very next day.  Are all the Republican candidates that dumb?  Do they all have the same death wish (or something)?

I (personally) would not mind paying MORE taxes and more in taxes.  But there is a caveat of course.  The deal is this – FAIRNESS.   I want every millionaire and billionaire to pay tax rates on the same percentage as me.  Calculate TOTAL TAXES (as a percentage of everything) on everything.   Don’t just tax sales, tax the money that one could spend on sales.  Don’t just take real estate, tax all property, and tax it once or twice or how ever many times it goes around.  Tax the sales of a stock or bond as a purchase – then let’s see who wants to make a thousand “trades” a day.  Why should the “buyers” on Wall Street go tax free?

If an average “shares traded” on wall street were 170 billion dollars per day, a tax rate of 8.875% would yield about 15 billion dollars a day in sales taxes, about 300 billion per month, about $3.5 trillion dollars per year.  And this amount does NOT include any tax on the purchase price of bonds, on derivatives, or on other financial instruments; all of which are now purchased “tax free”.  This is WRONG.  I want FAIRNESS.  Let’s have real reforms on Wall Street NOW!  If “investment” is really “for the long term” why would a one-time sales tax be a real problem?  It is what I pay on the investment decisions that I make.

So get a clue, the new game.   Don’t be clueless any more.  The rich and their spokesperson minions have had you buffaloed for all these years, and I don’t mean bisoned.  There is no free range and there is no free grass.  Earn money the old fashioned way – pay your taxes, pay the way the common people do, NO special rules for the special ways of the rich.  It’s not envy, it’s just old fashioned common sense.

Talk to your friends, this thing can happen.

2011.10.07 – 17:01.

Rain & Taxes

October 4th, 2011

Rain & Taxes

~ I’m back for a visit, which is maybe better than nothing at all.

In these turbulent times it is perhaps understandable that I am on the roof, meaning “not posting”.  A hard rain is coming, last night it was just chemicals from Texas.  The throat burned, the Texas news said it was “nothing“.  They lie.  They don’t live downwind.

The “new roof” will be a shield against everything; radiation, BP corexit, chemical fires and terrorist threats from President Obama.  The new roof will seal out the smoke from fires and forest fires.  The new roof is the panacea if not the cure.  It’s a sure fire hit against the rain.

The new roof will not solve the problems of Greece and the Euro and the big bang of banks collapsing.  But money invested in a better roof sure beats money invested in a stock market about to fail.  There I go, postulating about economics and all.  The question I ask is, “Who does not see it all coming?”

The 0nly real thing that really threatens the new roof is the taxes, the “property taxes”.  They go with the house.  The taxes are what the middle class pays on wealth that the wealthy are (mostly) free of.  Observe.

When wealth is NOT consolidated in the hands of a few very rich the majority of wealth (equity) of an average person is the home and the home is taxed as “property”.  The tax (in Albuquerque) is about 1% per year.  On 80% of everything one has the tax adds up.  If one has a $250,000 home the tax is $2,500.

Why do the “uber rich” not pay this same tax?  If Bill Gates paid a 1% tax (each year) on his $56 billion dollars of net worth (at 80%, like “property” taxes) he would contribute an extra $560 million each year to the public coffers, to the retirement of bonds and debt, to the supporting of teachers and public servant salaries.  But NO, the uber rich don’t pay these taxes.  They are (largely) “property tax” tax free.  And this is WRONG!

The “emergency property tax” in Greece is about an additional 1% of the value of property.  It would be like Bill Gates having to come up with an “extra” $1.1 Billion dollars per year in extra taxes.  It’s the IMF, World Bank thing, taxing the poor as if they were rich.  If the poor were the rich they would pay none of these taxes.

So two things.  One, I should not have to pay “property” taxes on my home until the rich pay their same fair share.  It’s a “wealth tax”, who cares the kind of property.  My $2,500 could go into helping the economy, not just helping teachers and garbage collectors and the mayor and all his rot.  I pay for my own “home” (not land) security, I pay for my own roof, I don’t rely on the “roof” provided for by others (meaning by taxing the poor to get and stay uber rich).

So BP, Tepco, Magnablend Inc. and others can (and WILL) continue to pollute MY LIFE without the slightest bit of accountability.  The government will keep covering for them, will lie and cheat and steal and report falsely on the news.  It’s “them” or me, the way I see it.  Pray that Wall Street and the bankers are brought down, that politicians become defendants in the courts, that corporations PAY for all their greed.  I do. AMEN.

My heart goes out to Greece today.  I wish every Greek in Greece, well.  Stay the course, don’t buy the bailout offer, the debt offer, the need for NEW loans.  It’s war, pure and simple.  It’s ECONOMIC WAR, and the enemy is out to kill you, and to TAKE everything you have.  It’s the old rich thing – poor thing / the rich hate the poor and middle class just because they are not also RICH.  It’s not pure, but it IS simple.  That’s why the rich are laughing.

So hey, try and run the economy on an END to TAXES on all property.  See what “trickle down” really looks like when the local economy is not supported by the fed.  The real Tea Party starts here!  Let’s get rid of ALL taxes, not just the taxes on the rich.  And remember, sales taxes too are so regressive.  And automobile tax registrations ARE the worst.  End them ALL.  End them NOW!

Each day my roof gets stronger.  It is the better to weather the coming storm.  Up on the roof is perhaps not just a metaphor, perhaps it has to do with survival.

See you next week maybe.  I have a lot of work to do.

2011.10.05 – 02:47.