Gee, I wish someone on a podium with Trump would just lose it during a press conference and yell at him "Mr President, you are simply wrong. Shut up and listen to experts in the field.":
On another note an economy of cashed up tooled up low debt sole tranders and small businessmen would be able to relate to a crisis like this SO FAST. And we have empirical evidence.
Warnie is cashed up surely? Shane Warne is a small manufacturer. Shane Warne wouldn't have need to overuse debt. And then when the rubber met the road Shane Warne was right there for us. Spun on a dime, adjusted the tools, and he's pumping the gear out there.
On another note an economy of cashed up tooled up low debt sole tranders and small businessmen would be able to relate to a crisis like this SO FAST. And we have empirical evidence.
Warnie is cashed up surely? Shane Warne is a small manufacturer. Shane Warne wouldn't have need to overuse debt. And then when the rubber met the road Shane Warne was right there for us. Spun on a dime, adjusted the tools, and he's pumping the gear out there.
An old school friend started up a business and all he had was a rudimentary beta software package which over 20 years he developed into a full package now being sold in various countries. He never borrowed a cent. A year or so ago he sold the company and the new owners immediately took out a huge loan for the company. My guess is so that the new owners can pay themselves fat salaries.
I agree the economy has been become far too debt dependent. The banks love it. Hopefully recent times will engender a more frugal financial attitude. It is even tempting to think that perhaps something like Norway sovereign fund could be adopted in Australia and used to provide cheap start up capital for promising enterprises but I'm doubtful about that because public servants are the last people we should trust to assess the future profitability of a private enterprise.
"I agree the economy has been become far too debt dependent. The banks love it. Hopefully recent times will engender a more frugal financial attitude."
Yes but it must start with a halt to the commercial bankers getting the seignorage. Or the money creation benefit. If we have cash at home, or cash on-call, they must get to use that cash only as a term loan.
As to loaning directly to sole traders ...... While modern banking may seem complicated wealth creating banking is fantastically easy. The idea is to not allow the loan recipient to speculate in either intangibles, or things in limited supply (chiefly land). The wealth creating loan is the loan that is invested in a producer good, or otherwise business renovation, for the purpose of improving cash flow. There are exceptions. (Such as swaling all the hills ..... which is more of a long-term undertaking).
So in that light the best loans virtually pay themselves back. Hence a benchmark can be deduced for the purpose of rating the sole trader for his next loan. If he buys producer goods, and pays the loan back quickly, his loan has likely been a wealth-creating loan. Particularly as the fast payback makes his loan less inflationary. So he should go to the front of the line for a second larger loan.
Permaculture loans that relate to land hydration would fall out of this category. So there will be strategic more publicly minded loans that cannot be categorised on fast payback alone. But they ought to be fairly readily identifiable. Banking was actually meant to be easy under the right conditions. As soon as the ponzi-money and the land inflation starts going, its then that it all becomes complicated.
Now the place to stick the zero interest loan money is not at some poor bum on the street. The place to put it is where you get a fellow that already has an established cash flow, and where he can show that he has the reasonable expectation to improve that cashflow if given an interest free loan to buy these producer goods, move into a bigger place or something of this nature. When you do things at this level extra employment is virtually guaranteed.
Here we are talking about a situation where the only tax rort is retained earnings of the sole trader. So there is a notional interest rate to this loan even though its face value interest rate is zero. Once he employs another person that person cannot help but pay taxes, and have reduced welfare. And pay extra GST. So the government can go on making these loans and they don't even need to be usurious about it.
More evidence that a cashed up small business economy would be a triumph comes 31 minutes into this video. Where a small sewing company with 30 employees in Los Angeles is moving to save all our butts with extreme inventiveness:
Another thing I want to emphasise. If a loan is made from new cash created by the government that loan will of course be inflationary. But if its a wealth-making loan, involving fast payback it is less inflationary.
1. The sole trader will try to reduce his own personal consumption knowing that fast payback means a bigger loan in the future.
2. A truly wealth-creating loan leads to greater output.
Economics is the science of telling people that there is no free lunch. But if there is a free lunch it involves 1. Cutting bullshit jobs in the public sector 2. Clawing the money creation benefit back of the banks AND 3. Fast payback of genuinely wealth creating loans.
We don't have many opportunities for a magic pudding. But if we see them its time to grab them and run like a thief in the night.
Soon. As a paid economist its time for you to write this all up as a nobel prize-winning thesis. You know I'm right.
Another explanation of the actions of Chloroquine in fixing this virus problem. This is a good one because of a proposed secondary problem with the virus in that some people think its dumping iron from the red blood cells out into the bloodstream and the iron is actually toxic. But in this view of things this is robbing people of the capacity to absorb oxygen. The Chloroquine, if its acting akin to its anti-malarial qualities will get inside the red blood cell and stop these catastrophes from happening. That side of things is proposed but I don't yet think its proven.
I think the author of the video has got it the wrong way around. But this is a March 17 video. The side of things that he thinks HASN'T been proven has actually been fully proven now.
18 comments:
Trump is really a danger to those idiots who believe in him and remember those voting for him believe HE is the best person to believe on this.
On another note an economy of cashed up tooled up low debt sole tranders and small businessmen would be able to relate to a crisis like this SO FAST. And we have empirical evidence.
Warnie is cashed up surely? Shane Warne is a small manufacturer. Shane Warne wouldn't have need to overuse debt. And then when the rubber met the road Shane Warne was right there for us. Spun on a dime, adjusted the tools, and he's pumping the gear out there.
RESPOND to
On another note an economy of cashed up tooled up low debt sole tranders and small businessmen would be able to relate to a crisis like this SO FAST. And we have empirical evidence.
Warnie is cashed up surely? Shane Warne is a small manufacturer. Shane Warne wouldn't have need to overuse debt. And then when the rubber met the road Shane Warne was right there for us. Spun on a dime, adjusted the tools, and he's pumping the gear out there.
An old school friend started up a business and all he had was a rudimentary beta software package which over 20 years he developed into a full package now being sold in various countries. He never borrowed a cent. A year or so ago he sold the company and the new owners immediately took out a huge loan for the company. My guess is so that the new owners can pay themselves fat salaries.
I agree the economy has been become far too debt dependent. The banks love it. Hopefully recent times will engender a more frugal financial attitude. It is even tempting to think that perhaps something like Norway sovereign fund could be adopted in Australia and used to provide cheap start up capital for promising enterprises but I'm doubtful about that because public servants are the last people we should trust to assess the future profitability of a private enterprise.
"I agree the economy has been become far too debt dependent. The banks love it. Hopefully recent times will engender a more frugal financial attitude."
Yes but it must start with a halt to the commercial bankers getting the seignorage. Or the money creation benefit. If we have cash at home, or cash on-call, they must get to use that cash only as a term loan.
As to loaning directly to sole traders ...... While modern banking may seem complicated wealth creating banking is fantastically easy. The idea is to not allow the loan recipient to speculate in either intangibles, or things in limited supply (chiefly land). The wealth creating loan is the loan that is invested in a producer good, or otherwise business renovation, for the purpose of improving cash flow. There are exceptions. (Such as swaling all the hills ..... which is more of a long-term undertaking).
So in that light the best loans virtually pay themselves back. Hence a benchmark can be deduced for the purpose of rating the sole trader for his next loan. If he buys producer goods, and pays the loan back quickly, his loan has likely been a wealth-creating loan. Particularly as the fast payback makes his loan less inflationary. So he should go to the front of the line for a second larger loan.
Permaculture loans that relate to land hydration would fall out of this category. So there will be strategic more publicly minded loans that cannot be categorised on fast payback alone. But they ought to be fairly readily identifiable. Banking was actually meant to be easy under the right conditions. As soon as the ponzi-money and the land inflation starts going, its then that it all becomes complicated.
Now the place to stick the zero interest loan money is not at some poor bum on the street. The place to put it is where you get a fellow that already has an established cash flow, and where he can show that he has the reasonable expectation to improve that cashflow if given an interest free loan to buy these producer goods, move into a bigger place or something of this nature. When you do things at this level extra employment is virtually guaranteed.
Here we are talking about a situation where the only tax rort is retained earnings of the sole trader. So there is a notional interest rate to this loan even though its face value interest rate is zero. Once he employs another person that person cannot help but pay taxes, and have reduced welfare. And pay extra GST. So the government can go on making these loans and they don't even need to be usurious about it.
More evidence that a cashed up small business economy would be a triumph comes 31 minutes into this video. Where a small sewing company with 30 employees in Los Angeles is moving to save all our butts with extreme inventiveness:
https://www.youtube.com/watch?v=cNDE12HymYc&fbclid=IwAR07o4krOkjixAAkuKd5E4mbdcnApEfGnbG4S2o9Z8HGoJk1v7G5KDHJU48
Meanwhile all these bigshots have been shown to be almost useless post bailout.
Another thing I want to emphasise. If a loan is made from new cash created by the government that loan will of course be inflationary. But if its a wealth-making loan, involving fast payback it is less inflationary.
1. The sole trader will try to reduce his own personal consumption knowing that fast payback means a bigger loan in the future.
2. A truly wealth-creating loan leads to greater output.
Economics is the science of telling people that there is no free lunch. But if there is a free lunch it involves 1. Cutting bullshit jobs in the public sector 2. Clawing the money creation benefit back of the banks AND 3. Fast payback of genuinely wealth creating loans.
We don't have many opportunities for a magic pudding. But if we see them its time to grab them and run like a thief in the night.
Soon. As a paid economist its time for you to write this all up as a nobel prize-winning thesis. You know I'm right.
Another explanation of the actions of Chloroquine in fixing this virus problem. This is a good one because of a proposed secondary problem with the virus in that some people think its dumping iron from the red blood cells out into the bloodstream and the iron is actually toxic. But in this view of things this is robbing people of the capacity to absorb oxygen. The Chloroquine, if its acting akin to its anti-malarial qualities will get inside the red blood cell and stop these catastrophes from happening. That side of things is proposed but I don't yet think its proven.
I think the author of the video has got it the wrong way around. But this is a March 17 video. The side of things that he thinks HASN'T been proven has actually been fully proven now.
https://www.youtube.com/watch?v=Y_fMjwR3uO0
Post a Comment