Monday, May 14, 2012

Whew, France will be fixed

According to Liberal Bloggers Rich, Terry and Rich, we are just a soak the rich away from prosperity.

Austerity...writes first to blame for Europe's woes.  They, the voters, agree and vote in....wait... Socialism!  (Course Obama's not a Socialist...course not).  They promise to tax high earners at the hardly significant 75% rate. 

As an aside Terry texts me today complaining about the JP Morgan trader getting sympathy for getting fired after earning $14 M.  No one who is a high earner should ever get any sympathy!

Anyway, so France has promised more than it has (kind of like us but at a more advanced stage of disease) and their solution...same as Rich 1, Terry and Rich 2....and the REST of the Liberal domain...TAX THE RICH!  They never...ever...except for spending cuts (remember how they protested the $ 15B in spending cuts out of a TRILLION budget?)

OK, so they have (OK, have proposed) a 75% tax rate on the rich...and that...all you dumbshit Conservatives... should take care of everything.  No austerity...(meaning living with what you have, not what your children are going to produce), no delaying retirement until the ungodly age of 62 (how uncivilised) hour work we just vote to tax the rich.

OK, now my Liberal brethren, this is your nirvana, France got they way you desire for our country. (kind of like when you held the Presidency, both houses of Congress and passed pretty much what ever you the current mess is...YOURS!)

So this should work...solve the austerity.

OK, but I think the rich are going to... move to  Switzerland.  They are going to say (close your ears)...FUCK a big way.  They are going to say..."I'm not working my ass off for you to take 75% of what I make."  The French high earners are just the same as American earners.

But...Dear Readers:  I'm sometimes too passionate...too opinionated...this could work...France could solve its woes...........  OK, but if it does not...and...if it inflames the French people, who after driving away their creators of wealth and are left with nothing except debt and then blame the German's who get pissed for getting blamed for helping them by their work (kind of like the French high earners who will be living in Switzerland at the time) and this starts another war.........don't blame Capitalism.

Rich, Terry and Rich...Warren Buffet is wrong...if we took $100B and  left it in his do as he pleased... or gave that same $100B to our government, more prosperity, less poverty and more taxes would be gained from Warren.

Saturday, May 5, 2012

Keynesian's are leading us to world war.

Even among the non-deranged is a habit of ignoring constraints. Good ideas that can't be put into effect aren't good ideas. Bluntly put, the Keynesian remedies (borrow, spend, adjust later) require things of Germany that German politicians cannot deliver.

Governments engage in austerity not because they want to, but because they have nowhere to get the money they'd like to spend and spend. The German people don't want to tax themselves—or indirectly tax themselves with inflation—so Spaniards, Greeks and Italians can spend the money.   Or Obama's rich vs poor.

And inevitable is the half-spoken argument about the size of government. Whether or not Europe's governments are too big, they are certainly too big for the euro. Fixed exchange rates between sovereign, democratic countries may be practical in a world of atomized businesses and individuals who don't conceive of an alternative to organizing their lives by price signals. The gold standard certainly worked well for the better part of a century.

But that's not our world and never will be again. In France, 56% of national income is controlled by the state. Across Europe, the first recourse of every interest group and voting bloc is to expect the state to protect them from inconvenient adjustments dictated by mere price signals.

To say Europe walked blindly into monetary union is an exaggeration. Bureaucratic Europhiles hoped it would necessitate a march toward a United States of Europe. Pro-business Europhiles hoped it would force a return to the market.

Broad growth of government in Europe (56% of total spending in France), it's Socialism, is imploding, as it always does.  Opportunistic leaders, such as our President, will inflame and blame.  Ever greater cradle to grave government care creates a lazy citizenry, it has to.   The industrious Germans are not going to pay for the lazy Greek's and Spaniards.  The lazy will protest the providers (like Obama is doing right now) and the providers will be angry in return.  There are already accusations of Nazism.

Inflation or austerity which is necessitated by overly generous spending will spark protests, violence, nationalism....war.

It will be the Keynesian's fault.  It will be the socialists faults.  It will not be the fault of those who said to live within our means.  Unfortunately they again will be blamed.