china will be a vast poor country that will find chaos as the worldwide correction ends world trade
Source date (UTC): 2020-04-16 06:32:28 UTC
Original post: https://twitter.com/i/web/status/1250673394770677763
Reply addressees: @Croneta1
Replying to: https://twitter.com/i/web/status/1250610281056620544
Notes…
Jim “Biggest financial collapse since the fourteenth century… the data lags… we won’t know until july … but it’s a depression” (I dunno)”We’ve been in a depression since ’07.” (Agreed) “Because keynes’ definition is a sustained period of below trend growth with no tendency to collapse or return to growth.” (agreed) “20-30% declines”…. no models are useful… we’ve never seen anything like it. It’s outside living memory … we’ve never recovered from the crash of 08. And now we’re in a huge crisis.”
Pippa “the economy … a bit like humans getting covid … the disease isn’t what kills you it’s the immune system attacking itself. …. so biz will kill their biz before it kills the owner … there won’t be an average for anyone. everyone will be touched by it differently and personally. those that are in the massively more efficient economy may be in better shape, but those that are no longer needed will be (screwed). now that I work outside the office, I se it works, so why do we have all this overhead. but with less fat (overhead) to maintain the physical plant. It’s not enough to have a skill set. Policy makers were on the back foot and slow to respond and they’re doing the same with the economy. … they think you can put the economy in snooze mode. That’s not how it works ’cause of cash flow. If you don’t, then people and biz won’t make it – like 60% of people in industrialized countries depends on next month’s paycheck, and 30% depend on next week’s paycheck. …. second is throwing money at it … but the mechanism … was thru the tax office or bank loans. So there is no government mechanism. … how bad is it going to be increases rapidly with every two weeks that pass.
UK: no mortgage, no rent, no tax, for three months. USA hasn’t done this, which is what they should have done.
… The human psychology question is open…. what did people do with all that damage to the world economy? They said, I just wanna live, and we had the roaring twenties. And it’s possible that this next would be like it. But at that point 60% of people were in poverty, which gave rise to the 30’s….
Actually, the politicians prolong the slowdown if the market can clear out the broken assets…. how quickly can we clear it..
( CD: that’s the right answer. The answer is to spend on re-domestication of industry and automation of it – and infrastructure and public works administration style commons production. )
… etc…
Source date (UTC): 2020-04-15 20:28:00 UTC
Well, because there is a limit to to those benefits, and no limit to market income other than one’s age and health. https://twitter.com/PeterSchiff/status/1249005341884461058
Source date (UTC): 2020-04-11 22:47:06 UTC
Original post: https://twitter.com/i/web/status/1249106731441049602
DEAR NOOBS: “RENT SEEKING”
Has nothing to do with rental properties. 😉
RENT-SEEKING
In public choice theory as well as in economics, rent-seeking means seeking to increase one’s share of existing wealth without creating new wealth.
Simple Version: “Corruption from outside the government inside of inside the government.”
NOUN
1. the fact or practice of manipulating public policy or economic conditions as a strategy for increasing profits.
“cronyism and rent-seeking have become an integral part of the way our biggest companies do business”
ADJECTIVE
1. engaging in or involving the manipulation of public policy or economic conditions as a strategy for increasing profits.
“rent-seeking lobbyists”
Rent-seeking results in reduced economic efficiency through misallocation of resources, reduced wealth-creation, lost government revenue, heightened income inequality, and potential national decline.
Source date (UTC): 2020-04-10 16:04:00 UTC
FED ACCUSERS ARE PROTECTING THEIR MALINVESTMENTS AND RESISTING NEW INVESTMENTS
by John Mark
My standard response to the fed-post accusation is to:
a) mock anyone who says using 2A for its primary intended purpose is “bad” (were the founding fathers “feds”? lmao), and;
b) demand they produce and articulate a solution: “What is your plan for when the Right can’t win any more elections?”
Often these groups/individuals that countersignal are either consciously or subconsciously trying to hold on to their “market share” of right-wing audience – they have invested significantly in what they are doing, and many people even on the dissident right are still hoping in vain that there is some other way to win without force.
P kinda makes everybody else look bad and threatens to make them irrelevant because we are a) describing the situation with brutal honesty (force or at least show of force will be necessary) while they are not, and b) P is so stunningly well thought out, with such thorough coverage and breakthrough insight both in explanatory power and recommended solutions, that it is impossible for anyone else on the Right to compete with. (Simply put, no other group has Curt on their team.)
P also requires a decent amount of time investment to understand well enough to say “yeah, I get how this could work”. And time is something leaders have very little of – I have very limited time to invest in learning details about what other leaders/movements/packs are doing.
We are also slaying the sacred cows of libertarianism/ancap etc., and correcting a bunch of failed strategies all around. (For example, we say persuasion & voting can’t be the Right’s primary strategy – but most groups on the Right are built around that primary strategy.)
All this results in the leaders of other “packs” sometimes having an initial negative reaction toward us.
One way to mitigate this without compromising on the truth, may be to invite people like this on my show and genuinely try to promote them (cuz many of them are doing great work in many ways), and then also ask them what they think of our basic solution proposals (policies etc, not in-depth P stuff), and have that discussion.
Propertarians are the adults in the room on the Right. And we’re figuring out how to deal with/work with the other “packs”.
Source date (UTC): 2020-04-06 11:37:00 UTC
I think the price sounds about right. Manufacturer markup generally must be something like 100% in order to cover all costs of borrowing, manufacturing, inventory, administering, marketing, sales, distribution, and sufficient profit to adjust to shocks. (think: Patent not price)
Source date (UTC): 2020-04-05 15:25:05 UTC
Original post: https://twitter.com/i/web/status/1246821165273960449
Reply addressees: @EricLiford
Replying to: https://twitter.com/i/web/status/1246817655253880834
Grow up. The market is what outsourced production of medicine supplies and equipment overseas at the expense of lives today. The market is what financialized the economy so that nearly half of mortgages will fail. The market is what caused immigration so we can’t even automate.
Source date (UTC): 2020-04-04 02:26:39 UTC
Original post: https://twitter.com/i/web/status/1246262879663382528
Reply addressees: @EthanBoyle @JulieBorowski
Replying to: https://twitter.com/i/web/status/1246171636434259970
BLACK ROCK’S ROLE IN THE FED TRANSACTIONS
by Herbert Hackett
BlackRock was the broker between the Fed and the Treasury. The Treasury owns the assets, the Fed provided the money at zero interest, BlackRock brokered the deal for free.
—Would you if you can, explain what broker means in this context for the audience.—
Well, the most layman term I can use is that BlackRock was the middleman. The Treasury instructed what it wanted to purchase, BlackRock went out and arranged the deal, and then using funds from the Fed (at zero interest) the Treasury gave the money to BlackRock, who then gave the money to the other party to transfer the assets over to the Treasury.
The most important detail of course, is the fact that BlackRock did this without receiving any sort of commission or “cut” of the money that it was transferring for the purchases. In other words, they were in a way “commandeered” or “conscripted” to fulfill this role.
Once the deal is done, BlackRock no longer has any part of the deal. They didn’t make anything from it, they don’t own any of the assets.
—Why would a broker like Black Rock want to do this?—
More likely than not they didn’t have much choice. The treasury and by extension the Executive branch, with the permission of the legislative branch (remember this whole thing was approved by Congress) enabled the government to compel BlackRock to do this by law.
Not that it’s any detriment to them, of course. At worst it could be seen as a waste of time, but at best they can use this as an opportunity to say, “Look at the deal we arranged! Trillions of dollars and assets transferred without a single hitch. You too could benefit from our services!”
Before this event, BlackRock was already the biggest in the world at what they do. If nothing else this has only solidified their name in that respect.
Source date (UTC): 2020-03-31 15:45:00 UTC
https://www.cnbc.com/2020/03/30/coronavirus-job-losses-could-total-47-million-unemployment-rate-of-32percent-fed-says.htmlI GUESS THAT MEANS WE HAVE A POOL OF MEN TO WORK WITH
https://www.cnbc.com/2020/03/30/coronavirus-job-losses-could-total-47-million-unemployment-rate-of-32percent-fed-says.htmlUpdated Mar 30, 2020, 9:06 PM
Source date (UTC): 2020-03-30 21:06:00 UTC
UNDERSTANDING THE NEW FED-TREASURY
by Daniel Roland Anderson
(CD: Note: this is why I bait these things. because external confirmation is more persuasive than my prognostication.)
SUMMARY: “Trump has just built a system to collateralize the Fed with underlying real hard assets from the private sector.”
From Daniel:
I ran this by a contact with a solid background in banking and finance. He’s not as hard right as I am, but here’s his analysis:
Oh, this is interesting. I glad you shared it! We knew the Fed was buying assets to provide liquidity to investment funds but not like this. Even the Communist infiltrators that formed the Fed in 1913 never intended for the Fed to do this. The Fed was formed to:1) Serve as the government’s own central bank, and 2) Monitor and regulate the banking system by implementing mandated monetary polices. In other words, the treasury decides what needs to be done for treasury operations and the Fed executes the directives while accounting and reporting back to the treasury.
BlackRock is a huge, and historically excellent, fund creator/manager. What it appears Trump has done is appended a new huge division to Fed operations. Let’s call it “Private Market Asset Repurchase Operations”. Apparently up to $1T of private fund assets may be “purchased” by the Fed each month. That’s a huge number. So, if a mutual fund, ETF, etc. experiences a run on its fund by investors who want out, they just sell the underlying assets to the new Fed operation.
Trump has hired BlackRock to run the operation and use the Fed’s balance sheet to account for the transactions. BlackRock will surely be paid a customary fee, like 375% annualized, to manage the new operation.
The Fed has just been privatized in a sense because the direct private asset repurchase operations will ultimately dwarf traditional Fed operations. Somebody (or is it more accurate to say, “some buddy”) at BlackRock is really happy right now they stayed in Trump’s good graces.
BTW, if the term “Repo” is being used in a traditional sense, the buyer (the Fed) gives the seller (the fund needing liquidity) a contract allowing the fund the repurchase those assets at some point in future according to agreed upon conditions. Hence the term “repo”.
This is pure genius (and scary) at every level. There is also NO WAY Trump and Co. just dreamed this up. It has to have been in the works for a while.
Genius? Yes. Here are a couple of thoughts.
The Fed( now Trump), can decide what funds to let fail. Pissed Trump off in the past but now need liquidity? “Sorry Joe, the underlying assets in your fund don’t meet out investment standards. And when your fund fails? We are going to put you in prison for bilking your clients out of their money.”
“Hey Chi-na! Need cash to rebuild and want to sell the Treasuries back you bought and thought would cause us to default when you demanded your capital back? Well, here you go, paid in full! We’ll just add them to our new BlackRock Treasury Fund.”
Trump has just built a system to collateralize the Fed with underlying real hard assets from the private sector.
How’s that for a primer?
Source date (UTC): 2020-03-30 17:26:00 UTC