Comments by "" (@jmitterii2) on "Stoic Finance"
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CCP made these oligarchs granting them monopolies... these oligarchs debt binged. And now they're concerned.
The entire global financial system is... at the breaking point.
Race to the bottom my dear boy.
An idiot with the brain the size of a walnut could explain:
Oh, you're going to "globalization" or whatever new or recycle term you want to describe this... recycled term in the 1920's... prior it was called colonialism recycled throughout the 1600 thru 1875. Until a new term was made.
But it just means exploitation the most destitute nations and if you can't find that many find the destitute AND tyrannized nations... inauthentic comparative advantage of slave/serf/destitute/tyrannized labor.
Other nations' labor that's better off... fall in wages and thus so does aggregate demand.
In financial periods where bankers run the roost, this nonsense carries on well beyond its natural inevitable collapse via debt binge... and oh have we debt binged since the 1970's globally.
But that only kicks the aggregate demand decline down the road until the debt just simply cannot be repaid.
Ding dong. The witch is dead. Again and again and again and again.
Results... collapse economically, malaise, outright misery (US has both with millions living in tents, cars, and RV's instead of actual homes and those numbers are increasing at parabolic rates), then there is famine in food scarce areas particularly harsh should harvests not be decent due to climate and weather... then add the civil and boarder unrest with war... Arab spring with famine all through the not that "fertile" crescent region... famine in Sudan and Somalia and Yemen... war continuing with the oppressive Saudi Kingdom of pure unadulterated evil, Syria disaster, Libya disaster with open slave markets.
Now we move forward, Turkey falling apart with hyper inflation. Russia invading the remaining former Russian Empire regions like Georgia and Ukraine... now back at it to finish the job I guess.
S. America is nothing but a basket case, only made worse with US attempting it's own "globalization" attempts of installing various ridiculous murderous dictators so that our oligarchs have access to resources and cheap cheap cheap labor... with the cherry on top that they're tyrannized... must work or else....
Again... a moron with a brain the size of a walnut could figure this mess out.
To be serious, though... just a somewhat comprehensive understanding of recorded history would suffice to figure out where we were all headed... what cycle we were in.
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The only thing we know is that this pandemic only killed elderly and those with chronic issues and the brunt was mostly on the same category who were mostly poorest of the poor.
Should we ever have a pandemic that is less discriminating... we know the panic would be severe.
The gambling on stocks, joke stocks, and fake money for real money and the extension of NFT's and other hair brain stupidity would never have happened... the concept of quick recovery because "I wasn't effected because I have no chronic problems, I'm younger than 59, and I'm not poorest of the poor." Instead, it'd be fuck I'm sick as shit... and already been to the hospital twice... the hospitals are full and they sent me to an old folks home and make shift hospitals in now many dormant vacant retail outlets, and several friends, family members, and former coworkers (former coworkers because they just laid us all off) recently died.
With even bigger deaths, a general worldwide population reduction would correspond with a huge demand hit along with loss in 95% who must work not being able to work and needing savings not to gamble in stupidity, but to ensure they can buy necessities. In the US, those necessities include medical costs because unlike essentially all other countries, we lack a healthcare system... instead forced to play the hustle under a bridge and confront even with so called insurance, bankruptcy, should the prognostic be prolonged and expensive... no job, huge medical bills, little to no savings, and economy falling apart with bad prospects on finding another job, inflation due to supply drastically going down without rationing of essentials a run on more than just toilet paper (we kind of got a little run on other foods... recall partially empty shelves at grocery stores on foods particularly canned foods).
The way this was handled was moronic... and we can only be glad it wasn't a indiscriminate and with a much higher fatality rate.
We get a "real" pandemic... at least one that's more vicious... we're looking at the chaos that happened during the Justinian plague 541-549AD which lasted 8 years or the Black Death 1346-1353 which lasted for 6 years plagues.
Just like then, we'd enter into a great depression and mimic similar famine and insanity that happened around the world in 1929.
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This isn't about Biden. Biden's an absurd ass hole and caught way too frequently being a liar pants on fire.
This has to do with your dogmatic view on "how simple the answer is"
You stated:
"Allowing more companies to enter the market, reducing the barriers to entry, let the entrepreneurial spirit and capitalism take hold and actually drive prices down because that is what capitalism ultimately does."
Funny you say this: let's compare US vs UK healthcare system vs our US healthcare hustle stands as great testimony to your falsehood that magical capitalism will resolve anything.
Firstly:
1) Price mechanisms for many sectors of the economy simply doesn't work.
a) Judicial
b) Police
c) Fire service
d) Natural monopolies like utilities: water, sewer, trash collection and placement, electrical distribution and generation, transportation infrastructure, etc.
e) Education
f) Healthcare
2) Why does "magical capitalism no work for these sectors and some others as well?
a) Inelastic demand curve such as that in healthcare... no matter the amount of quantity supplied (suppliers), and those able or not able to afford the prices (demand) people will pay any price to not suffer or die.
b) Economy of scale: utilities like sewer, water, electricity, transportation infrastructure has a barrier to entry in that the expense to duplicate water systems or electrical grids or provide more airports or more and more ship yards cost even more money per user with no added margin. It requires a large number of customers to use these items to just break even, and duplicating this would make that break even cost even higher thus raising prices per each new supplier added... doubling tripling quadrupling water works or electrical grids or adding 10 airports or flooding 5 or 6 areas along a coast of a city with ports and more ports makes each break even cost that much more expensive raising just the break even margin price per customer. Not reducing the price.
It's why even in the US, most cities have mostly city owned and operated water and sewer and garbage and even power systems and where there are a few private owned utilities in operations they are required to provide services when and where it might not be "profitable" in the immediate term or ever just off those few additional add ons into their service area, they cannot just increase whatever price to the point that people are going bankrupt (okay certain parts of Texas does with electricity and well we saw that stupidity play out, several deaths due to inability to pay for electricity and keep their power on thus no heat and well they died of hypothermia). For the few for profit utilities (in the US most private utilities are electric distribution companies... water and sewer is largely a city ran enterprise), most states, even good red state of Idaho, has a Public Utility Commission regulatory body that also takes on public petitions and determines rate cases on lowering or increasing the utility bills.
Since there is essentially no actual competition on these grids: water, sewer, trash, etc. they get margins no matter what. That margin is established to ensure enough money is provided to run the operation as well as grow as needed. And still leave left over for owners of the power company to have a cash cow (as they often call them)... because they're always profitable. They're just not allowed to ever mark prices to whatever the market will bear... because the market can bear death. Literally, take a peak at Texas. Was horrible.
But don't stop there: take a peak at our mostly non-regulated no universal healthcare system in the US. Medicare isn't allowed to negotiate prices, instead medicare can only take prices that were negotiated via private insurance companies... and well the insurance companies are often extensions to the very pharma and large health conglomerates of clinics and hospitals around the country.
c)spill over costs like those if one person can afford fire service or police service for protection... well there goes the fire blazing out of control and the entire area burns down and some deaths along side. Some one is burgling, can't pay the police bill... well looks like you're about to be robbed.
Let's determine guilt or innocence in court to the highest bidder to the jury! Enough said here.
Price mechanism doesn't always work in certain periods (times of war or natural disaster like earthquake, hurricane, tornado, etc. etc.) as prices will not provide more supply into the market to bring prices back down when goods are needed. So a period of rationing is often used to prevent an complete breakdown in society from looting to rioting... a hungry, desperate populace unable to get at least what they need to not be hungry, not to be un-sheltered, etc. will not provide you with any civilization to let your magical dogmatic entrepreneurial spirit take flight... well it might turn it into a spirit as it kills it in the flood of violence.
Price mechanism as mentioned prior does not work in many sectors of the economy. Healthcare chief among many others. Due to the inelastic demand curve and economies of scale required in these sectors... competitive market principles simply don't exist and if forced to exist don't provide the benefit rather they become an unnecessary burden and cost in providing the natural monopoly good and/or service.
You above all people living in the UK, with a medical system that is the envy of the world with the NHS, should know the utter bullshit you're propounding.
NHS gets its funding via the UK income tax.
Not as we do it in the states with a payroll tax that taxes ALL gross income of 1.49% for medicare/medicaid.
Their version of Federal income tax actually pays for something they all need... and not a ridiculous useless military industrial complex.
On top of our taxes being more, and we in the US getting less for those taxes, we also spend another $2,400 per person per year on employee sponsored health insurance that still doesn't provide essential coverage... out of pocket expenses can still even with so called insurance exceed $7,000.
No sir, your living in dogma stupidity.
And that must end. Or we will never address the real problems we have.
Inflation we are suffering today won't be solved by magical blood sucking entrepreneurial spirit of exploiting whatever the market can bear fairy dust.
Inflation is and always is a monetary phenomenon. The Fed Reserve must raise their overnight funding fee to exceed the inflation rate to end inflation. They additionally must end any other monetary loosening policies.
Otherwise inflation will continue, because low interest rates and other loose monetary policy literally expand the money supply. The money supply is too much... too much money is chasing to few of goods.
And the shortages we face is brought to you by imperialism, colonialism, globalism, name it whatever you wish, they're the same thing, different name to buzz the masses with magical thoughts of "entrepreneurial spirit" and other nonsense... causing supply chains that were never rational, always costing more resources in terms of transportation resources including energy, etc. into a pretzel. Inefficiencies covered up via reliable servitude labor often under tyranny of a despotic regime, but sometimes just facing a weak and destitute region of the world... and often spurred on by subsidies by those nations (no pollution controls, no labor protection requirements, no wage/salary rules, etc. etc.)
I mean this structure of the economy isn't new, keeps popping up since the late bronze age collapse... and since then this moronic economic structure always comes down in a bust.
So the monetary system must get tightened. Or the inflation will continue.
Additionally, the race to the bottom imperialism, colonialism, globalism whatever you want to call it, must end. Genuine authentic comparative advantage supply changes must be established. Not ones wildly distorted via exploitation of a tyrannized people of one nation or another, and subsidies of the same.
And some actual planning on economic necessities. No planning... let it be to the market... well it'll fall apart faster than Terra did when it lost it's peg.
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