Tuesday, 12 November 2013

Germany needs to continue to restructure socially in order to help others and Germany realize the European Dream

My colleague and economist Rene and Walker's World asks the question whether Germany is right in having such a great trading surplus. It is an important question and at least one analyst proposes that German pensions be paid only to Germans willing to retire in the countries further south in Europe desperate for tourist or retiree cash flow. That is obviously not something German politicians would entertain, but the possibility that the German growth rate might act as a dynamo for the whole of Europe pulling it forward both to the benefit of Germany and its neighbours is just something that now needs to be seriously entertained if Germany is to remain competitive against China while remaining financial in balance. Having surplus is not a bad thing if it can be used to grow the real economies of Germany's European partners. They must be willing to have German direct investment. 

It's curious that I should be asked this question having just had an earful from an individual at Poole Harbour here about how the UK should leave Europe; how key British assets such as expensive yacht building firms are being sold to the Chinese; how British industry and its politicians after the Thatcher era have bled the country of its valuables through dishonest dealing, etc. the list of negatives is so long that I am totally confused as to validity or what can or should be done about the UK situation. Seems pretty hopeless and mixed up. There is no longer any homogeneity or policy framework and all the key policy variables seem to have vanished. The situation almost seems ungovernable.

I for one am not convinced the problem Europe faces is because of Germany. It most certainly isn't something that Germans seem capable of analysing logically even though it requires a uniquely German solution, that of opening wide its doors to the very sort of rainbow mix of people that it eliminated in the  early 1940s. The fact of German trade surpluses arises because Germany does a better job of manufacturing and it's efficiency is a result of its willingness to challenge the notion German firms could not be competitive viz-a-viz the Chinese and Asian manufacturers. Inward investment into German thrives on the German work ethic that is absent in Britain. The sleazy nature of current British banking, stock market, housing industries, and political backhanders / cronyism hinders Britain as a destination of ethical finance, rand d, and investment. Get rid of corruption please, it's not helping Britain, Canada, and America. 

It is claimed that Britain is absorbing more than its share of foreign resettlement because it is more socially hospitable compared with Germany. English firms benefit from very cheap labour from Eastern Europe that Germany should be absorbing!  So there are a number of things going on. German firms as more competitive and enjoying economies of scale and highly trained German workers, but absorbing enough of the enlarged community workforce has its eye on social benefits more than working benefits. 

Barriers to entry into German employment of workers from the rest of Europe needs to looked at as well as improvements to the German social benefits streams to encourage inward migration. The security aspects of what happened 70 plus years ago obvious is a scary proposition for those who lost a previous generation to genocide. The consequences and advantages of history are serious facts of life that cannot be easily overlooked. The experiment of Europe will fall short unless Germany is more genuinely willing to develop the social benefits of others resettling in Germany with strong guarantees of long term security. 

Germany can grow its economy even faster. Europe's problems are the sleazy nature of American banking capital and not Germany. More on that another time. 







Why is the German economy so strong relative to that of the UK?

When one looks at real economic growth not that funded through wasteful credit expansion one is drawn to the fact that some countries do better than others. Could it be that real incomes in Germany are generating the savings needed for long term growth? One has to ask whether the key to success has something to do with the quality of real consumption. In the UK, which is a member of the EEC and can trade on equal terms with Germany, there is no doubt that the build up of real savings in Germany has been greater than the UK. 

These higher real savings have meant greater real investment and competitiveness. It has little to do with interest rates as much as how financial markets and banking in Germany work for industrial investment rather than against it. While David Cameron fritters away at the housing industry in an endless pursuit of phoney growth through consumption by credit expansion and wasting of valuable resources, the Germans are actually saving for the long term. Had Britain not opted for the gamblers approach to growth, it might see some industry want to locate there, but now it seems the profits in Britain are artificially created by credit. 







Monday, 11 November 2013

Taking the Sparkle Out the History of Big Bangs of Financial Markets

What was once hailed as progressive financial reform benefiting the growth and development of key financial markets worldwide needs to seen for what it really is, an unmitigated disaster. Not that this would be admitted by those who have benefit from financial 'reforms' and the slew of associated policies that these ushered in to the benefit of the high risk 'gambling' community challenging the very sound basis of traditional economic structures by which politically stable economies could approach growth and sustained takeoff soundly based. We sacrificed sound economics to the dictatorship of right wing politics that ultimately threatens a severe implosion and deflation of economic values worldwide. How long can patches be stuck on this failed balloon design for the benefit of those harnessed to the power of credit creators. We are riding on the backs of teams of wild horses that will lose steam and collapse below the clouds of their own indifference. 

Instead of good practices, the Big Bangs have had central banks roll in predatory structural reforms that lead to currency and monetary crisis after crisis running from Mexico, Brazil, Argentina, Thailand and the rest of Asia, United States, The UK, Greece, Italy, Portugal, Iceland Ireland. Start eating shit style political policies and parade them as sound economics and your economies turn into shit style economies without the benefit of sound politics. You watch a fair income distribution and full employment get replaced with skewed income distribution and job search forever. You grow too fast and you overprice and watch the market fall, so you do nothing but provide liquidity forever. Man your economy is in the shit hole of the worst form.

The Big Bangs of Financial Markets were the death knolls of sound financial and economic policies and have resulted in income distributions that threaten to produce political revolutions that will make the French Revolution over two hundred years ago seem like a picnic. The problem with financial reforms is that they destroyed the solid links between savings and growth in the stable economies of the Western World with the economic conditions that brought on World Wars One and Two. If we are to avoid the flights into economic policy fantasy that characterise conditions that create massive social instability and the preconditions to Demand for a major World War, we need to reverse the direction taken with the Big Bangs and rebuild the key relationships between work and reward, savings and life cycle economic optimisation, presently missing. 

The new policies would separate away short term banking and gambling finance from the basic economic requirements for savings and pension funding. Rather than use the money creation process as the source of finance for acquisitions and stock market success, these should be based on growth of income and profitability long and short term. In essence, we direly need a return to traditional economic structures otherwise the brave new world won't be one worth living in.







Samsung Tips $100 Million IoT Strategy | EE Times






Help to Buy scheme take-up praised by David Cameron | Money | The Guardian

Would that the so called experts advising Cameron even knew what constitutes conditions to worry about. They obviously don't! Locking into low interest rates and funding housing at the short end may not be good long term policy. It helps inflate stock prices and endangers the health of bond markets.  Bad policy, bad strategy, bad tactics, bad stuff to come, bad for Conservatives, period. 







Perhaps Bill Gates Really Shouldn't Be Concentrating On A Malaria Vaccine - Forbes

Tim Worstall in his comments about the mechanisms for the role of economics and health affecting malaria victims misses the point that networking and advanced technology doesn't really create a basis for economic growth. I find his ideas surprising and frustrating as they come from a plausibly intelligent business analyst. But, perhaps I should not be surprised given how far Wall Street has strayed from sound economics and common business sense over the past two decades. I am inclined to think a major correction is coming because of such ignorance of the basic economics of employment.

It would wrong to assume that because computers are widespread, networked and fed into an educational system or that wireless systems are in place that this somehow means local populations experience better economics. One has to ask how these systems are paid for. Who saves to buy.  Who earns income to buy, and what is the quality of what is purchased. Is there a long term process of transformation into self sustained economic growth that would reduce the malaria spreading mosquitos because of its impact on household size? 

On the contrary, there could reason to believe that they experience the worst form of shallow consumerism and unemployment frustration. The link to technology change and household size has to be tenuous were technology be relied on to be the kick off to economic growth. It simply isn't / can't be / wasn't. Neither in America nor anywhere else in the world. Socialism is. Concerted effort by focused government programs are. Not capitalist market surprises. Government intervention that produces infrastructure is. Development assistance from the World Bank is! Special poverty reducing employment programs are.

In my view, it's best to tackle the question of health and disease immunity first, then that of economic development and subsequent growth. In the case of having good health, there is a chance of a healthy child performing work and contributing to a community. The necessity of governments concerned to assist over the long haul is there for all to see and to observe in the data. 

A sick child will only force its dependency on the cost structure of the community. Poverty reduction comes from giving the basics then allowing the child to fight for survival rather than waiting for the parent to somehow get the income that leads to a reduction in household size. 

The correlation Worstall alludes to seems to me to be unsustainable as a model. The fall in household size is at best a consequence of a long period of health within the spawning family, not something that happens within a household.

Is this model put forward by Tim Worstall as a conservative style agenda that somehow poverty is the fault of the poor. Perhaps, instead, poverty is the fault of the rich who take from the community rather than giving back. It certainly was before the revolutions in France and Anerica and before the American civil war. Market size grows with health and basic infrastructure provided by the state not by private industry. If one waited for the private sector to establish growth one would have an economy like that of the United States that has disappointed the world with its abysmal performance over several decades. We all know that this is due to a weak infrastructure in America, particularly it's health system which was primarily geared to the haves and whites. The war on the poor in America is there for everyone with eyes to see and interpret. American stock market dynamics and Republican politics represent a betrayal of America's poor. The American banking system is a disgrace to a so called advanced economy.

Racism continues to exist in America as a potent force and is at the forefront of its economic sluggishness. American benefited from social reforms affecting its poor and can continue to benefit as long as it shows leadership in the socialisation of its medical and educational fields. The notion that private industry does other than plunder the economy is somewhat ludicrous in a society that cannot save worth a bean and still demands, rather, beggars the world by borrowing against the future of its poor and unborn. Is it not enough that America spreads ideals of self reliance, but has rapidly become the most dependent state in the world. 







Silver Springs Smart Meter Recall Halted







DOE Unveils Plan to Spur Solar Adoption







Kyocera's large 70MW solar power plant inaugurated in Japan







SunPower Builds Solar at California Community Colleges | Green Energy News







India's Mars Mission among top five most tracked satellites | Business Standard







Sunday, 10 November 2013

Housing bubbles and Keynes General Theory - What modern Federal Reserve Bank economists in America have missed in the General Theory - A lesson for Central Bankers

Sad state of economic science when modern economists don't read nor really understand their own science.

It's too bad most, like 99 percent of economists don't know Keynes General Theory and don't realise what causes a housing bubble. A bubble arises when housing is financed using short term money market funds rather than long term savings. Given that definition, bubbles are built into our system and are almost inevitable. The link between incomes / savings and house prices having been broken means new housing bubbles will continue to make the average individual poor and unemployment the order of the day. Read this in Keynes General Theory.







Zapped: Why Your Cell Phone Shouldn't Be Your Alarm Clock and 1, 268 Ways to Outsmart the Hazards of Electronic Pollution: Ann L Gittleman: 9780061864285: Books - Amazon.ca







IPad 5-in-1 Connection Kit - RnD Gadgets Deals - London, ON







Chemical Giant Monsanto opens up and offers rare opportunity for its opponents to engage it | National Post







Saturday, 9 November 2013

Landlords seek changes to new immigration bill - Telegraph







Mortgages: landlords face interest rate rise - Telegraph

Everything, even housing being funded at the short end plays into the hands of gamblers who bet on variability. While investors gamble with short money the next major economic crisis gets built into this new system. It's like an addiction that has captivated governments and private concerns alike. Woe is us!







New polymer bank notes released | CityNews

Greener? They don't look very green. 

Do they somehow deteriorate over time?



Rich Tea



The nature of EMF

      The problem as I see it is that as long as you think that you can excuse EMF radiation nearby, you will do little to participate in the wider discussion about whether, like in the case of smoking, those who are damaged most can be just present where the smoke wafts around. Likewise, those who might be damaged by radiation might have nothing to do with wireless devices and antennas. 
      'Methinks he doth protest too much' becomes recognisable on both sides of the debate with little being done to remove / understand the new element in our environment, that of overwhelming EMF radiation, ubiquitous, everywhere almost. 

    This is not a marginal issue. It may be the issue that defines the next fifty years.







War on the poor is defining issue

Crazy as it may seem, the poor are not fitting into the conservative idea of how society works. Rather than correct the issues that are at the root of the problem, the conservatives are blond to the issues of poverty that their own actions promote!






Friday, 8 November 2013

Samsung to stop making screens for Apple | Business Recorder







Keep Your Email Private! - Home







Census: Medical Expenses Put 10.6 Million Americans In Poverty - Jordan Weissmann - The Atlantic







Does Your Professor Have a Wikipedia Entry? Congrats! It Means Nothing - Robinson Meyer - The Atlantic

Hum?

Perhaps, the use of other systems such as Linked in and Facebook would mitigate the overall results, after all, Wikipedia is free! What could one expect for nothing? Nothing! 

Well, not exactly. Who really knows where academic reviews are going and how much the consumer student reads Wikipedia. Maybe there is a hidden price effect of Wikipedia benefiting the non-peer review process. 

Peer reviews will be mired in tradition!







The $100,000 Battery That Could Help Hotels Save Bundles of Money - Todd Woody - The Atlantic

Cool..







The Myths Of Falling Solar Costs - Forbes

Lynch assumes the market is correctly judging the risks of not moving away from fossil fuels. He is very mistaken....







Taxing waste and pollution

There is little doubt that combustion systems lead to pollution, noise and effluent, disease, waste and macro changes in weather and migration. 

Such pollution needs to be properly taxed.  America's fling with free capitalism is rapidly coming to an end as ordinary people want great say in policy and more than vacuous promises and debt magnification. Witness the election in New York. 

Battery technologies need to be implemented and public policies need to usher in new tax systems to enable clean, quiet, safe systems of transport. 

We are still living in the dark ages of potential energy technologies and it is daily killing the weak. They are better informed and are generally disgusted at waste and unnecessary pollution. Such revulsion could lead to Pareto style 1790's events with demands for saviours of the Robespierre variety. America is rapidly evolving politically and not to see that leads to very dangerous economics. 







EXCLUSIVE: Steven Minnihan: Lithium-ion To Take The Lead As Battery Technologies Focus On Backup/UPS Markets | Benzinga







MIT Battery Startup Ambri Finds Early Customer and Christens Factory : Greentech Media

This is only the tip of a wide stream of new technologies that will overwhelm us all with possibilities, what with BMW committed to electric driven vehicles, etc. 

It would seem appropriate to alert consumers and manufacturers to the real as well as financial costs of not switching away from all fossil fuels, especially on the early adoption of non polluting technologies. 

We continue to drive combustion / gas / petrol vehicles when seeing everything around us that this has macro economic effects. Late adoption will ultimately mean jobs lost when new taxes and prohibitions of polluting energy sources are demanded by ordinary people. 

Out for a penny, out for a pound, means that time for action really is being wasted in Canada while the Federal boys get things wrong big time. 







Electric charge: BMW is betting on the EV market - The Globe and Mail

Of course, an appropriate tax on all forms of pollution by fossil fuel use might help. It's time the costs were assumed at the consumer level to accelerate the necessary switch to electric only. 







United Technologies Research Center Wins R&D 100 Award for Breakthrough Energy Storage System - WSJ.com







Typhoon Haiyan batters Philippines with winds of 195mph, | World news | theguardian.com




I think it is important to be frequently optimistic and thoughtful! 

RT

Concerned about cell towers? ... http://southcott.blogspot.com 
  
As put by Charles Darwin to Francis Galton: ' […] I have always maintained that, excepting fools, men did not differ much in intellect, only in zeal and hard work; I still think this an eminently important difference.'"

"Truth and reality, once told or experienced, is only a stranger before the first instance. One must learn to recognise one's ephemeral friends very soon. Some experience, sense and recognise both the truth and reality before it happens, while others never at all." 

Thursday, 7 November 2013

queen meets carney - Google Search







Governor Of The Bank Of England Mark Carney Meets Queen… News Photo | Getty Images UK | 187091231







Tesla Motors (TSLA) hits sales record. Investors hit sell button. - CSMonitor.com

So?







Netherlands demand release of Greenpeace activists as Russia boycotts tribunal (+video) - CSMonitor.com

Cold War returns in earnest?







Rjukan sun: the Norwegian town that does it with mirrors | World news | The Guardian







Tim Berners-Lee: encryption cracking by spy agencies 'appalling and foolish' | World news | The Guardian

Tim, you are spot on! 







Tim Berners-Lee: encryption cracking by spy agencies 'appalling and foolish' | World news | The Guardian

Yes, they probably used tax payers money to pay for it.







YOU HAVE REACHED WOOH'S STREAM
The Internet User's Best Kept Secret

Sketches from scratches is a provocative blogspot that has grown out of the Wuh Lax experience. It is eclectic, which means that it might consider just about anything from the simple to the extremely difficult. A scratch can be something that is troubling me or a short line on paper. From a scratch comes a verbal sketch or image sketch of the issue or subject. Other sites have other stuff that should really be of interest to the broad reader. I try to develop themes, but variety often comes before depth. ... more!