Are you guilty of crimes against the younger generation?

The New Land of Opportunity

“This city is great. It’s beautiful. It’s cheap. The climate is agreeable. And it’s becoming a haven for Internet savvy marketers.

“I think they’re coming partly because it’s a great place to live. And I think young people want to get away from the U.S., too. It’s just not the land of opportunity that it used to be.”

So sayeth our dinner companion last night. He was the second young man in the last 24 hours to make the case that Medellín is a “buy.”

Medellin is Colombia’s second largest city and one of the country’s main economic hubs.
http://colombiareports.com/colombia-travel/medellin/

“It just seems to be catching on with people who work on the Internet. I guess because it is such a great place to live. People are helpful and nice here. And everything is unbelievably cheap.”

We can back him up on both points: Our taxi driver went far out of his way to help us find our hotel. (We had the wrong name.) And after driving us around for a half an hour, he was delighted to take the equivalent of $8 for the fare.

Medellín – city of the future

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Photo via turismoenmedellin.com

A Country for Old Men

Several readers have commented on the coming generational storm in the U.S., which was the theme in last week’s Diary.

“Billie Boy, I don’t like where your head is lately. Your writing depicts our debt situation as being caused by baby boomers when it is the Fed and the government who never listen or do what the public desires…”

Here’s another:

“You are beginning to sound like “Obuma” in his class warfare dialogue. I am one of those old people who is not benefiting from the greed and lack of morals evident on Wall Street and in particular in Washington, DC. Leave me out of it and do not blame all old people for the actions of the elites in DC and state governments…”

To clarify, we are not blaming innocent beneficiaries… or innocent victims. And we readily admit we couldn’t get a conviction for willful larceny. Most of the people involved stole unwittingly. They were just playing the piano; how could they know what was going on in the back room?

Few of us baby boomers exercised much direct influence on public policy. But most of us voted… and our elected representatives put in place a corrupt system that favors old people and old businesses at the expense of young ones.

They got the title wrong – it is a country for old men.

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Image credit: Paramount Classics

What Happened to Creative Destruction?

Everyone knows that most of the wealth gains of the “recovery” have gone to the One Percent. That those people are also old is more than a coincidence. Most large political donors are old. Most politicians are old. Most voters are old. Most special interests are old. Most media owners are old.

The entire system is old.

Over time, people find ways to game the system – any system – to get more of what they want with less risk and less effort. They use the government – the only institution that can force people to do its bidding – to help them.

According to a study we cited on Friday, the U.S economy would be three times larger today if Federal regulations had remained at their 1949 level. Had the rules remained as free and easy as they were when we were born, in other words, young people today would have a much higher chance of earning as much as their parents did.

We have shown this chart (by Competitive Enterprise Institute) in our recent article on the regulatory State – it illustrates the wild growth in regulations since the 1940s nicely – click to enlarge.

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Another study says those regulations seem to be working. “The business sector of the United States […] appears to be getting ‘old and fat,’” says the Brookings Institution. Entrenched businesses have been able to raise the ramparts even higher!

The business sector is getting old and fat because it has managed to stifle competition and stop the process of what Austrian-American economist Joseph Schumpeter called “creative destruction.”

According to Schumpeter, the process – whereby new innovations constantly replace outdated ones – was the “essential fact of capitalism.” But in 1992 – in the supposed epicenter of capitalism – the share of U.S. firms older than 16 years was 23%. Twenty years later, the share of old firms had grown by almost one-half to 34%.

And the share of private sector workers employed in these old businesses increased from 60% to 72%. Employment in younger firms declined. The number of new firms went down. And the number of jobs went down, too. The only increase being of old people working in old firms.

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Joseph Alois Schumpeter – Eugen von Boehm-Bawerk once called him his brightest student, who would definitely leave a mark on the science of economics. However, similar to other proponents of the free market, his influence has waned greatly. In today’s interventionist State, his concepts are at best given lip service.

A Disinherited Generation

Old businesses get loans, bailouts, revenues, and profits. Old people get jobs, pills, and medical services. They also get Social Security benefits. And when they leave this vale of tears, they also leave behind them more than $210 trillion in unpaid bills.

As economist Laurence Kotlikoff recently told the Senate Budget Committee, that’s the size of the current “fiscal gap” – the difference between Washington’s projected financial obligations and the present value of all projected future tax revenues.

Young people have been “disinherited,” says the Manhattan Institute:

“This is the first generation of young Americans that our government systemically disfavors and the first generation whose prospects are lower than those of their parents.”

Disinherited? That suggests they start out even. But their parents and grandparents have put them in the hole. Robbed? Cheated? Scammed? Flimflammed? Rolled?

Take your pick.

There is even a book on this very topic available as we have found out….

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The above article originally appeared at the Diary of a Rogue Economist, written for Bonner & Partners. Bill Bonner founded Agora, Inc in 1978. It has since grown into one of the largest independent newsletter publishing companies in the world. He has also written three New York Times bestselling books, Financial Reckoning Day, Empire of Debt and Mobs, Messiahs and Markets.

I am starting to like hackers

The B grade movie I watched in the prior post was Hackers Party…not that good in fact, not in the league of Sneakers, but then ones standards may be based on actors and age.

Upshot of that movie was to expose corporations and governments deceitful conduct.

But after this little spread on Sputniknews, starting to like them a lot more.

The Ukrainian hacking group CyberBerkut warns that possible “acts of information sabotage” may be carried out by US Psychological Operations specialists against the self-proclaimed republics of Donbass and the Russian-speaking population of Ukraine and has called on Ukrainians to be vigilant.
The Ukrainian hacking group CyberBerkut has released a warning of “acts of information sabotage” being planned in Ukraine.

Read more: http://sputniknews.com/europe/20150531/1022767765.html#ixzz3biXyK2AE

Note on Sputniknews, Russian Insider, RT.com, etal, read world news and avoid anything on Putin…. These sickly sweet expose’ one can do without, but full credit to their ability to ‘muckrake’ on other Countries….

I was watching a “B” class movie and I saw this quote from Malcolm X

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Then as is my process I followed a few leads,read a bit then this image came up.

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I thought it was apt… Not only Fox, but all news outlets …

Anyway I stumbled across this Blog, the image was listed in the essay, but covers a hell of a lot of what I am thinking.

Please take the time to read.

David de Ridder…

“As an opening post for this blog, I thought of this subject; We. Mankind, Humanity, Our existence. Something we get confronted with every single day of the time we spend on this planet. I chose this subject for the simple reason that I want to get this out of the way before I continue blogging on this site.

The man in the picture I used to open this post with is the late Bill Hicks one of the people who inspired me and also influenced me in my ways of thinking. He said in one of this shows that he, just like me right now is tired of this ‘Isn’t humanity neat?’ bullshit. And I’ll explain to you, my dear reader… why:

Pave the way for the future.

From the moment we are born, all of us in the western world at least, start on the same course. We pave the way for the future! We learn to walk, talk, take a shit on the toilet instead of on the carpet and get to understand it’s bad to throw an ashtray in someones face and it’s good to throw an ashtray in the bin because smoking is bad for you apparently. Then at the age of 4 we get into ‘the system’, school! We get forced to go to these institutions with innocent sounding names where we learn that in the western world.. you don’t matter. You matter a little bit more than you do in the 3rd world, but do not expect anybody to see any value in you. Do not expect to be heard or treated as an individual and fuck no, there is no time for fun, you got to be productive. You’re here to learn a few basics so you can feed the machine. Because that is you’re purpose. To wake up, go to work, go to sleep.. and die! Oh and don’t forget to procreate in the process… because they always need more people!

George Carlin on education:

“It will never, ever, ever be fixed. It won’t get any better. Don’t look for it….The owners of this country don’t want that… The real owners, the big wealthy business interests that control things and make all important decisions. They own you. They own everything… They own all the big media companies. So they control just about all the news and information you get to hear…. They want more for themselves, and less for everybody else…. They don’t want well informed, well educated people… They want obedient workers, people who are just smart enough to run the machines and do the paperwork…”

How we ruined our great gifts and potential.

We as human beings were gifted by nature, we truly are a gifted specie. We got a brain that works in ways we still cannot explain. It can distinguish yourself from the outside world. It can imagine and make the user of the imagining brain create. Create things that benefit to humanity and make life on this planet more bearable for the ones who need it.

But what have we done instead..

We have formed societies, where we as the same specie are complete strangers of each other. Where we are afraid for each other, paranoid, depressed and addicted. We have created our own reality that is 180 degrees different from THE reality. We have made ourselves believe that life only exists about living like everybody else does. To keep walking on the pavement, keep driving in the right lane, keep calm, obey, work, pay taxes and procreate. We have failed to organize ourselves as the same specie on the same planet and achieve greater things, explore outer space as a whole, as one people under the sun. We have failed to even have world peace in all the years we wander around this planet. For fuck sakes, we are apparently if I got to believe my manipulated news stations not even able to spread wealth equally.

Instead we have created an utopia where some have chances and opportunity and where most have nothing. Where we try to do everything to come through the day, one day at a time. An utopia where success gets measured with wealth and where consuming and producing is priority number one. A sickening place where once you speak out about these things either your head gets cut off or you get labelled as an idiot. A place where one specie oppresses itself through the ways of organized religion, politricks and money-wise.

I gave up.

I just like one of my greatest influences George Carlin have given up on this planet, its species and what it outcome will be. I detach myself from it all. I just feel like I’ve fallen for a scam, which I call human live. I think we should have be given a choice before being created inside the womb, you want to come out? Or you skip this chance. And I don’t want to talk any regret into my creators (My parents) but I think I would’ve skipped it.

This does not mean I am unhappy in life. I believe in family, friends in love and in doing good for each other. To help each other come through the day and end the day with a smile on your face. I just wanted to make clear that I am everything but impressed about ourselves as a whole.

– David de Ridder.

https://independentidiot.wordpress.com”

Control the money, control the game

Once upon a time in a place far far away (depending on where you live that is) was a banking haven. Laws protected Bank accounts and secrecy prevailed.

The has now ended.

The Swiss banking system is no longer private. Now some may cheer this move, but you should fear this move.

The institution of banking secrecy is on the brink of death. The destruction of the World Trade Center in New York on 11 September 2001 and the 2007-2009 financial crisis can both be considered fateful events for the future of banking secrecy.

The first event was the start of the fight against terrorism organised by Washington, under the pretext of which the US authorities began trying to obtain open-ended access to information about banks’ customers, their accounts and transactions.

The Patriot Act, passed after 11 September 2001, provided US intelligence agencies with full access to what had been classified banking information in America without having to obtain special permission from the public prosecutor’s office and the courts. Through various international organizations (the OECD, the IMF etc.), Washington later began to seek free access to banking information throughout the world.

The second event (the financial crisis) gave new impetus to the start of an active crackdown on offshore accounts and banking secrecy, and the campaign against banking secrecy and offshore accounts was lead by the United States.

These are the official grounds for Washington’s active campaign which began in 2009 to destroy the financial shadows in the US and beyond its borders. However, there is also an undeclared objective hiding behind the official statements, which is the establishment of direct control over the global financial and banking system by Washington (or rather the financial oligarchy behind the politicians in Washington).

http://m.strategic-culture.org/news/2014/05/15/what-behind-the-campaign-to-combat-banking-secrecy.html

Under the Swiss regulations “Each country in the EU will now receive an on an annual update on the names, addresses, tax identification numbers and dates of birth of any residents with accounts in other countries, as well as other financial and account balance information.”

A bad precedent has been set, why I say ‘bad’ is that the entire Swiss banking community, the Swiss Confederation, that had existed for at least three centuries was shattered. The simple fact of the matter was that the Swiss Bank secrecy laws were a godsend to a lot of people, those suffering persecution and through war.

Yes, the mere fact that these accounts were used for money laundering and tax evasion was the other side of the coin, the Swiss Government themselves are at fault here, by not regulating the account deposits to ensure ‘free and non tainted monies were in fact deposited and allowed a ‘laissez-faire’ attitude…

Mind you this did assist a lot of German people during the world wars, the restrictions by Germany on cash was quite onerous.

There goes everyone’s privacy through a two sided agreement that will see sharing of bank account data.

Then we have the EU stating that “it is not about tax harmonisation. It is merely about enabling Member States, in an increasingly globalised environment, to ensure that all their taxpayers pay their fair share of the tax burden..”

So the truth be known, it is all about taxation, collection of monies from every person and the EU now join the United States seeking funds for their bureaucratic largess.

http://ec.europa.eu/taxation_customs/taxation/tax_cooperation/mutual_assistance/direct_tax_directive/index_en.htm

Expect every Country to jump on the bandwagon, in the hope that their taxation revenue is increased to allow further spending.

The USArse has a second and even more powerful tool for eroding banking secrecy in the world and that is the US FATCA law, a law on the taxation of foreign accounts. It requires banks around the world to provide the US Internal Revenue System with information on clients who fall into the category of “US taxpayer”. The FATCA law can be categorised as an attempt by Washington to directly request, that every bank in the world eliminate banking secrecy.

FATCA is feared by Banks around the world, now when one opens a Bank account in the UK, regardless of your citizenship you must complete a FACTA document, legal advise is provided. No Banks technically will open an account for a Us citizen.

It is assumed that Russian banks will also have to comply with the requirements of the FATCA legislation. In light of the economic sanctions against Russia by Washington, however, for Russian banks to fulfil these requirements would be problematic, pointless, and even dangerous.

And no, there appears no longer to be any safe haven for privacy.

The EU commission is currently concluding negotiations with Andorra, Liechtenstein, Monaco and San Marino regarding similar agreements, which are expected to be signed before the end of the year, their statement said.

Singapore next?

The Swiss government joined Singapore in May 2014, in signing an international agreement sponsored by the OECD to end secrecy on clients.

Conspiracy theories of course abound, but please download this research paper and have a read, it will open your eyes.

It is an analysis of the relationships between 43,000 transnational corporations has identified a relatively small group of companies, mainly banks, with disproportionate power over the global economy.

http://arxiv.org/PS_cache/arxiv/pdf/1107/1107.5728v2.pdf

The study’s assumptions have attracted some criticism, but complex systems analysts contacted by ‘New Scientist’ say it is a unique effort to untangle control in the global economy. Pushing the analysis further, they say, could help to identify ways of making global capitalism more stable.

The idea that a few bankers control a large chunk of the global economy might not seem like news to New York’s Occupy Wall Street movement and protesters elsewhere (yes Pierre’ I mean you).

The study, by a trio of complex systems theorists at the Swiss Federal Institute of Technology in Zurich, the Orbis Group, is the first to go beyond ideology to empirically identify such a network of power. It combines the mathematics long used to model natural systems with comprehensive corporate data to map ownership among the world’s transnational corporations (TNCs).

http://www.newscientist.com/article/mg21228354.500-revealed–the-capitalist-network-that-runs-the-world.html#.VWlnNdoayK0

The Orbis Group further untangled the web of ownership, it found much of it tracked back to a “super-entity” of 147 even more tightly knit companies – all of their ownership was held by other members of the super-entity – that controlled 40 per cent of the total wealth in the network.
http://www.bvdinfo.com/Products/Company-Information/International/Orbis
As reported by New Scientist “In effect, less than 1 per cent of the companies were able to control 40 per cent of the entire network,” says Glattfelder. Most were financial institutions.

The top 20 included Barclays Bank, JPMorgan Chase & Co, and The Goldman Sachs Group.

http://www.newscientist.com/article/mg21228354.500-revealed–the-capitalist-network-that-runs-the-world.html#.VWlnNdoayK0

Maybe, just maybe, the politicians of this world may just grow some balls….I highly doubt that though as ‘money talks, bullshit walks’.

You have no freedom, you are or soon will be controlled by the totalitarian global economic system. The elite of this world are the politicians who systematically sell our souls for a payroll to the next election….

From he that I can find no fault with.. maybe because I don’t understand the math…

“It has been more profitable for us to bind together in the wrong direction than to be alone in the right one. Those who have followed the assertive idiot rather than the introspective wise person have passed us some of their genes. This is apparent from a social pathology: psychopaths rally followers.” – Nassim Nicholas Taleb,

The Black Swan: The Impact of the Highly Improbable

Edit:

And no not a introspective wise person, I have just opened my eyes and read.

Recommending the book, this time Taleb has no bloody relevant equations throughout.

Another rant at the dregs of society…no not economists this time…

Just getting my knickers in a twist

Then realized that it hurt, just thinking about the shit that I started to write down my thoughts. The article took all day and several pages of well researched notes.

But fuck it, it was all too hard tonight so I just deleted the post….happens.

Instead keep it simple for stupids sake..(me not you, although you can take that angle if you wish).

All the friggin taxes that you pay to allow politicians to spend, then a lot more that is borrowed, is in the main wasted. It is spent on political whims and not necessarily in any Country’s interest.

Where does all the bloody money go?

You have no idea….it just goes .. I can guarantee you that the politicians don’t know either…as long as they have their bigger budget…their expensive legacy.

This was sparked this morning about the costs for searching for MH370….the news article stated that “Australia was cutting a whole wheat field using a lawn mower”.. A friend emailed me to say that the politicians would by fully aware of the Dutch company’s inadequacy in this area, but proceeded anyway.

Okay, idiots they are, emotional strings are being pulled here so families need closure. One company dragging that lawnmower at your expense.

Then we have our spy agencies, like what do they do anyway?

Watch porn?

Spying on neighboring countries is kosher these days. At what cost?

Then, when that country finds out about it, then what bloody cost?

Now we are to collect metadata including porn… on that issue who authorized the countries political leaders to introduce the draconian legislation?

No budget, but it will be an astronomical costs

America … yes but no one will tell you that, nor the bloody cost to run this brilliant program. Anyone even think of asking the cost, before the legislation was introduced?

Ummmm NBN … another classic, just grab a couple of billion for arguments sake.

Defense spending on those American aircraft?

Not delivered and costs soar astronomically, no wonder debt required. Will not go into why fighters are sent to other countries for a conflict that has nothing to do with us…oh sorry America asked?

At what cost?

Foreign aid … okay will not go there, as some people now trying to pay a few rupiah back over a zillion years .. you do not know total amount, nor who it goes to for what.

Climate change, black hole, as with Keating’s Mabo legislation, on that latter score a lawyer politician and solely for the lawyers benefit and what was the total cost?

And no not being racist, it was a black hole and the vortex continues and you do not know the bloody total cost, as it is still ongoing….

I could go on and on (which I did … but deleted). The point that I am making is that astronomical monies are being spent on shit that has technically no relevance in governing the country. Oh yes politicians will come up with an excuse, the expensive propaganda machine will go into full swing and you…you will be paying more taxes.

Open your eyes, wake up to the fact that you are serfs, you are funding politicians rampant spending on ideals, their legacy which are irrelevant for governing the country….

And yes you are all apathetic PISS heads, brainwashed and conditioned that you can’t smell the stink emanating from the capital. . either fucking party…makes no fucking difference!

Bernanke = Bullshit

Bloody hell, it goes from bad to worse with Bernanke. In South Korea he made the following points during a private sector forum in Seoul and reported by Reuters (link below).

My comments in italics ..

Former Federal Reserve Chairman Ben Bernanke said that China’s economic slowdown should not worry markets as there was no risk of a hard landing, and emphasized that a move to raise U.S. rates should be viewed as a positive sign for the world’s largest economy.

China is stuffed, they have been misrepresenting data for several years and I refer to the prior blog

https://millermatters.wordpress.com/2015/04/10/china-is-not-the-savior-of-commodity-based-countries/

Take the time to watch this video as it explains very succinctly the hard landing that China is experiencing…. If you are still in doubt then read Professor Michael Pettis here:-

http://blog.mpettis.com/2014/12/how-might-a-china-slowdown-affect-the-world/

China has to adjust to an export based economy to a consumer based economy, they have to go through a depression similar to what America did in the 1931 Great Depression. They have the knowledge on how to rebuild, but it will take time. Then China will surpass the US, as the Worlds major economy.

Bernanke anticipates 10% growth rate for China, like bloody hell! what is he smoking, this from the same guru that stated that there was no real estate bubble in the US before the financial crisis, yet he and his predecessor created the bubble in the first place.

Bernanke, who participated in an open interview at a private-sector forum in Seoul on Wednesday, said the expected U.S. rate hike would be “anticlimactic” when it happens and that there would only be minor negative impact on South Korea.

Then on the impact of the interest rate rise, gee I hope that the currency wars do end when the impact of the interest rate is felt worldwide, pity that South Korea has so much debt though, that is their problem. That will have an enormous impact domestically.

Sorry I have no idea what Bernanke is thinking….His comments are contrived and he must not fully understand what is happening around the world..

http://www.reuters.com/article/2015/05/27/us-bernanke-economy-idUSKBN0OC07120150527

Now excuse me a minute whilst I have a chunder, to think this (…insert own descriptive noun here) gentlemen was actually in charge of the Federal Reserve Bank of the USA…. yep, definitely has upset dinner.