Last Updated: Nov 19th, 2009 - 11:07:39 Newsletters : 2009 Newsletters : 5 June 2009 Thought for the Day When it comes down to it - our task is to help governments make people wealthy. The problem is that it is the government that is the problem. Everything they do makes people less wealthy. As soon as our modern government exists it takes from some people, consumes some wealth and distributes the remainder to people who might vote for them. Only the private sector can create wealth and it does this by producing a good or providing a service that people will voluntarily pay for using their own money. If this process is left alone then the natural capitalistic system will arise of its own volition. And, since the business owners can only sell to willing buyers who actually have the money it is also in their interest to have wealthy citizens in the country. Henry Ford knew this when he told Congress that he paid his workers as much as he could afford since he wanted every one of them to buy one of his cars. Governments seem never to have understood this and since we have always been governed we have always had continual interference from governments and bureaucrats. All of which reduces the wealth of the population. Nowhere on this planet have we ever had a pure and simple capitalist system. We have had pure socialism and that has always been a disaster as Russia so notably demonstrated and North Korea and Cuba are demonstrating today. The Chinese realised that socialism was doomed and decided to get in ahead of disaster by letting in a little bit of capitalism. Imagine what would happen if China really opened up the country to full freedoms and property rights. This will not happen. The world is slowly transferring from socialistic ideals to a sort of fascism. People can "sort of" own property but the government reserves the right to interfere whenever it chooses. Look how Obama is distorting property rights attached to General Motors. Look how Wellington City Council is interfering with the rights of property owners living in the suburb of Thorndon. The owners pay for the property but then must obey Council instructions as to what they can repair and how they must do it. Wikipedia has this to say about economics and fascism: "Fascists explicitly promoted their ideology as a "Third Position" between capitalism and communism. Italian Fascism involved corporatism, a political system in which economy is collectively managed by employers, workers and state officials by formal mechanisms at national level. Fascists advocated a new national multi-class economic system that is labeled as either national corporatism, national socialism or national syndicalism. Common aim of all fascist movements was elimination of the autonomy or, in some cases, the existence of large-scale capitalism. Fascist governments exercised influence over the economy differently than that of communist-led states, in that individual private property was controlled but not nationalized. Nevertheless, like the Soviet Union, fascist states pursued economic policies to strengthen state power and spread ideology, such as consolidating trade unions to be state or party-controlled. Attempts were made by both Fascist Italy and Nazi Germany to establish "autarky" (self-sufficiency) through significant economic planning, but both failed to make the two countries self-sufficient." So the world exists somewhere between socialism and capitalism - Is that fascism? Is it Tony Blair's Third Way? Perhaps we should forget "-isms" and just see how we can change some things which will make everyone wealthier. Is this Pragmatism? Jun 5, 2009, 15:22 Newsletters : 2009 Newsletters : 5 June 2009 The 20 Point Plan to Get Equal With Australia We are hopefully on the way to equality with Australia. The National "gab-fest" earlier this year to improve things, now that we see the extent of the economic devastation wrought on our small economy, came up with building a cycleway around New Zealand and working a nine-day fortnight. The other ideas didn't seem to get much traction. Visit the Web Site below and have a look at the "20 Things to get ahead of Australia" that the ACT Party campaigned on. I am very interested to know from you if we should take these ideas more seriously and actually just start down the list. Your thoughts please. . . [ Visit Website ] Jun 1, 2009, 12:59 Newsletters : 2009 Newsletters : 5 June 2009 Growing Unequal? Income Distribution and Poverty in OECD Countries With the recent election I have become aware of politicians and commentators saying that pensioners in New Zealand get 66% of the average wage. Actually this is somehow shorthand for "A couple of old age pensioners get 66% of the average wage." This is a disguised way of saying "Our old age pensioners only get 33% of the average wage." This started me thinking about poverty lines and what other countries are saying. It seems that, within the OECD, a generally accepted poverty line is defined as, "60% of the median equivalised household disposable income". Now I don't know what that means but 33% of the average wage does sound lower than 60% of the median household blah, blah, blah. Have a read of this OECD paper and see if you think our old age pensioners are below the poverty line or not. Should we worry about this? [ Visit Website ] Jun 1, 2009, 12:34 Newsletters : 2009 Newsletters : 5 June 2009 The US Debt Clock When the Romans ran short of money to run their bread and circus act they devalued their currency by putting less gold in the coins they minted. We are much more sophisticated than that - we just juggle some computer entries and print more paper money. Seemingly no-one notices. However someone has noticed the increasing debt in the USA and on this website they show the increasing debt in "real" time. I wonder what the Kiwi Klock would show? [ Visit Website ] May 31, 2009, 13:36 Newsletters : 2009 Newsletters : 5 June 2009 The Japan Baloney Can we learn something from the Japanese experiences during the 1980s boom through the 1990s (and beyond) slow bust? Yes, but all is not what it seems! May 28, 2009, 15:59 Newsletters : 2009 Newsletters : 5 June 2009 The Climate-Industrial Complex "Some businesses see nothing but profits in the green movement." May 23, 2009, 14:01 Newsletters : 2009 Newsletters : 5 June 2009 Can President Obama’s Policies Heal the US Economy? This article explains the nub of modern economics. If you understand this you will see why we are in such big trouble today and understand that President Obama is setting up for the next big bubble and crash. The problem starts with the first banker who lends out money that he doesn't have. All follows from this. Amazing. [ Visit Website ] May 22, 2009, 15:50 Newsletters : 2009 Newsletters : 5 June 2009 The Gold Price Question The evidence is mounting. The "Establishment" in America is suppressing the price of gold. Bill Murphy has the evidence and discusses it here. The truth is about to come out. Both China and Russia are buying gold for their reserves. They are also chasing real assets like mines and mining companies and OIL. Because of the size of the Chinese market it is now not possible for the Americans to win the "gold" wars. As they lose control of gold pricing, and the worth of the American dollar becomes more and more evident, the price of gold and silver will soar. Britain has sold all its gold. How much has America got left in Fort Knox? Things are getting interesting. You will find the interview under Recent Guest Interviews in the right hand column. [ Visit Website ] May 21, 2009, 14:08 Newsletters : 2009 Newsletters : 5 June 2009 Quote for the Week Nothing appears more surprising to those who consider human affairs with a philosophical eye than the easiness with which the many are governed by the few, and the implicit submission with which men resign their own sentiments and passions to those of their rulers. When we inquire by what means this wonder is effected, we shall find that, as force is always on the side of the governed, the governors have nothing to support them but opinion. It is, therefore, on opinion only that government is founded, and this maxim extends to the most despotic and most military governments as well as to the most free and most popular. David Hume, Scottish philosopher and historian, "Of the First Principles of Government" 1758 May 5, 2009, 15:18