An article in the Telegraph (referred to by today's Daily Reckoning) says that the pound sterling could drop about 14% against the dollar by 2009.
Which one is the basket case economy?
Friday, October 05, 2007
Wednesday, October 03, 2007
"How much money do we need?" revisited
The Daily Reckoning supports the drift of my question:
Our old pen-pal Jack Lessinger has a new book out: “Change.”
...His book outlines the development of the US property market over the past two centuries in terms of what he calls “paradigmatic economic changes.” He notes that the shrewd investor always had to stay ahead of the trend. That meant, looking beyond what the then-current paradigm to what people were likely to want in the future. Instead of investing in the old colonial regions along the East Coast, for example, an investor in the early 19 th century should have looked to the frontier. There, he would have found cheap land…and could have watched it soar for the next 50 years. He should have seen the huge development that would take place in Chicago and St. Louis, for example.
Later, after WWI, the landscape changed dramatically. New technology had created a new idea about how people should live – in the suburbs. For the next 50 years, fortunes could have been made simply by anticipating the growth of the suburbs – further and further out from the urban centres.
Our consumer economy did not exist before 1900, says Lessinger. Since then, it has grown and grown – “Sexy young women, smiling from the billboards , urging strait-laced and penny-pinching citizens to save less and spend more. Buy, buy , buy screamed the advertisers. Buy Coca Cola and be happy. Buy Dentine gum and be kissable. Buy Camels and be manly. The consumer economy blossomed. Houses grew bigger and more lavish, cars roomier, faster and more comfortable. What a great time to be alive!”
But buy, buy, buy is going bye-bye, says Jack. The consumer economy is unsustainable. People don’t have the money for it. It is based on cheap energy and cheap credit, both of which are running out. He thinks it will disappear by 2020.
“Get ready for an existential leap…” he warns.
The next Big Thing in American society will be a huge interest in downscaling, downshifting, and simplifying. When the baby boomers realise that their houses won’t allow them to Live Large, says another friend, they’ll begin to appreciate Living Small.
Jack comes at the subject from a different direction than we would, but his book made us think. You can find out more at jacklessinger.com.
I've been thinking how to "get out from under" for a long time. Maybe I'd better act before it becomes the fashion. Jim Puplava thinks the Fed has just bought us another two years, at a cost - to those who stay on too long.
Besides, I like beer and darts.
Our old pen-pal Jack Lessinger has a new book out: “Change.”
...His book outlines the development of the US property market over the past two centuries in terms of what he calls “paradigmatic economic changes.” He notes that the shrewd investor always had to stay ahead of the trend. That meant, looking beyond what the then-current paradigm to what people were likely to want in the future. Instead of investing in the old colonial regions along the East Coast, for example, an investor in the early 19 th century should have looked to the frontier. There, he would have found cheap land…and could have watched it soar for the next 50 years. He should have seen the huge development that would take place in Chicago and St. Louis, for example.
Later, after WWI, the landscape changed dramatically. New technology had created a new idea about how people should live – in the suburbs. For the next 50 years, fortunes could have been made simply by anticipating the growth of the suburbs – further and further out from the urban centres.
Our consumer economy did not exist before 1900, says Lessinger. Since then, it has grown and grown – “Sexy young women, smiling from the billboards , urging strait-laced and penny-pinching citizens to save less and spend more. Buy, buy , buy screamed the advertisers. Buy Coca Cola and be happy. Buy Dentine gum and be kissable. Buy Camels and be manly. The consumer economy blossomed. Houses grew bigger and more lavish, cars roomier, faster and more comfortable. What a great time to be alive!”
But buy, buy, buy is going bye-bye, says Jack. The consumer economy is unsustainable. People don’t have the money for it. It is based on cheap energy and cheap credit, both of which are running out. He thinks it will disappear by 2020.
“Get ready for an existential leap…” he warns.
The next Big Thing in American society will be a huge interest in downscaling, downshifting, and simplifying. When the baby boomers realise that their houses won’t allow them to Live Large, says another friend, they’ll begin to appreciate Living Small.
Jack comes at the subject from a different direction than we would, but his book made us think. You can find out more at jacklessinger.com.
I've been thinking how to "get out from under" for a long time. Maybe I'd better act before it becomes the fashion. Jim Puplava thinks the Fed has just bought us another two years, at a cost - to those who stay on too long.
Besides, I like beer and darts.
Tuesday, October 02, 2007
Secret taxation
This is a payslip for a supply teacher, showing income and deductions. On an emergency tax coding, tax is levied at basic rate (22%) on all earnings after pension contributions have been made. National Insurance is paid at the reduced rate of 9.4%, because the teacher is in his/her occupational pension. Total tax and NI: £399.61 / £1,472.20 gross pay = 27.14%.Oh no, it isn't.
The tax that dare not speak its name is employer's National Insurance, which would be around £93.37. It's an extra cost that the employee never sees, but it's money that could be paid in wages if it were not deducted at source. Therefore, the gross (pre all stoppages) pay is higher than shown, and so are the deductions.
So why don't we see payslips that tell the whole story, say something like this? ...
The reason is obvious, isn't it? Especially when you show the appropriate marginal rate. And if this was a payslip for someone not in an occupational pension, the marginal rate of N.I. would be 11% for the employee, and 12.8% for the employer. In other words, £100 extra payslip-declared salary would actually cost the employer a total of £112.80, with marginal-rate deductions of £22 in income tax and £23.80 in N.I. ! In that case, the real effective marginal rate of revenue-raising would be 45.80/112.80, or 40.6%.
The average wage earner is, in fact, a 40% taxpayer, without knowing it.
Is it illegal to show the truth on your employees' wage slips? Don't you think it would make the ordinary person start to take the taxation issue seriously?
Gold price manipulation: Mylchreet backs Veneroso
I've previously noted Frank Veneroso's theory that central banks have been offloading gold to keep its price down, a ploy that obviously cannot work forever. Now here's Paul Mylchreet saying the same thing:
"Central banks have 10-15,000 tonnes of gold less than their officially reported reserves of 31,000" the Chevreux report announced. "This gold has been lent to bullion banks and their counterparties and has already been sold for jewelry, etc. Non-gold producers account for most [of the borrowing] and may be unable to cover shorts without causing a spike in the gold price."
In other words, "covert selling (via central bank lending) has artificially depressed the gold price for a decade [and a] strongly rising Gold Price could have severe consequences for US monetary policy and the US Dollar."
The conclusion? "Start hoarding," said Paul Mylchreet...
"Central banks have 10-15,000 tonnes of gold less than their officially reported reserves of 31,000" the Chevreux report announced. "This gold has been lent to bullion banks and their counterparties and has already been sold for jewelry, etc. Non-gold producers account for most [of the borrowing] and may be unable to cover shorts without causing a spike in the gold price."
In other words, "covert selling (via central bank lending) has artificially depressed the gold price for a decade [and a] strongly rising Gold Price could have severe consequences for US monetary policy and the US Dollar."
The conclusion? "Start hoarding," said Paul Mylchreet...
The United States Federal Reserve: why the secrecy?
Two most interesting blog articles by the jokily-pseudonym-ed "Lord Higham-Johnson".The posts themselves are far from jocular and those who may be tempted to dismiss them as conspiracy theorising must still recognise that there is nevertheless a case, of sorts, to answer; or at least, the scent of a story for the financial bloodhounds.
The first, from March this year, looks at the process by which the Federal Reserve came to be proposed, named and brought into being.
The second, today's, is a restrained fisking of an attempt by a teacher of economics to discount conspiracy theory in relation to "the Fed".
Monday, October 01, 2007
Lasting Power of Attorney: the next step in the Long March
The great day has arrived. The Mental Capacity Act 2005 is now in effect.
Though I'm not sure how many people who take out an LPA are aware that the withdrawal of "treatment" includes denying water, so patients in hospital can be made to die slowly of thirst ("Since a landmark House of Lords judgment in 1993, providing food and water to those who cannot eat or drink for themselves counts as treatment as well."). And no-one can be certain what is felt by someone who is apparently in a coma.
Doesn't this conflict with the Hippocratic Oath?
What oath? Wikipedia says:
In the 1970s, cultural and social forces induced many American medical schools to abandon the Hippocratic Oath as part of graduation ceremonies, usually substituting a version modified to something considered more politically up to date, or an alternate pledge like the Oath or Prayer of Maimonides.
A Catholic scholar details the Oath and its history here.
The Act is here; the government's own take on it is here.
We seem to be approaching a time when anybody except a criminal may be lawfully killed.
Though I'm not sure how many people who take out an LPA are aware that the withdrawal of "treatment" includes denying water, so patients in hospital can be made to die slowly of thirst ("Since a landmark House of Lords judgment in 1993, providing food and water to those who cannot eat or drink for themselves counts as treatment as well."). And no-one can be certain what is felt by someone who is apparently in a coma.
Doesn't this conflict with the Hippocratic Oath?
What oath? Wikipedia says:
In the 1970s, cultural and social forces induced many American medical schools to abandon the Hippocratic Oath as part of graduation ceremonies, usually substituting a version modified to something considered more politically up to date, or an alternate pledge like the Oath or Prayer of Maimonides.
A Catholic scholar details the Oath and its history here.
The Act is here; the government's own take on it is here.
We seem to be approaching a time when anybody except a criminal may be lawfully killed.
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