The U.S. Economy: Stand by for more worse news

[Michael]

In case you MISSED the obvious: Our Central Planned Government-Regulated LOST decade.

 

[Michael]

Protection or Free Trade
Henry George (1886)

Protection, as the term has come to signify a certain national policy, means the levying of duties upon imported commodities for the purpose of protecting from competition the home producers of such commodities (p. 25).

Protection, as the word has come to be used to denote a scheme of national policy, signifies the levying of duties on the importation of commodities (as a means) in order (as an end) to encourage domestic industry (p. 75).

The absurdity of Protectionism was obvious over 120 years ago. For "Protectionism" to work:

We must not only forbid foreign commerce, but restrain internal commerce. We must not only prohibit any new applications of labor‑saving invention, but must prevent the use of the most important of those already adopted. We must tear up the railway and go back to the canalboat and freight‑wagon; cut down the telegraph‑wire and rely upon the post‑horse; substitute the scythe for the reaper, the needle for the sewing‑machine, the hand‑loom for the factory; in short, discard all that a century of invention has given us, and return to the industrial processes of a hundred years ago. This is as impossible as for the chicken to go back to the egg (p. 240).

 

[Michael]

America’s new trillion-dollar fighter jet under fire again

The F-35 fighter jet will find itself outmaneuvered, outgunned, out of range, and visible to enemy sensors, says a new report by think tank National Security Network.

It’s tough being the world’s most expensive weapon system. Years behind schedule and billions over-budget, the F-35 Joint Strike Fighter program has had to absorb its fair share of critiques. Over the past several years, it’s been described as too complex, too reliant on high-tech sensors and software, and—at $400 billion for development and procurement—far too costly.

Nice to know the Government can sell 30 year T-Bonds and Tax the prosperity out of the Worker's great great grandchildren (by the hour) to pay for this trillion dollar example of Governmental incompetence and graft.

 

[iceaura]

She didn't 'earn wages' she was paid for her labor, which she sold.
She sold labor.
She paid tax on that sale.
It's that simple.
Try not to get confused.

She was taxed on her wages, not her labor. It's not confusing - you are wrong.

Before I waste any more of my time, again, let's be sure of your argument. You're arguing in favor of Protectionism. Is this correct?

No, I am pointing out that you are trying to run the same silly crap you ran before, apparently thinking we had all forgotten about it.

Sorry, but an analysis of the 1800s has shown protectionism DOES NOT WORK.

You, not me, chose the period of maximum protectionism, greatest expansion of Federal governance, most severe government interference in the markets and redistribution of wealth, and establishment of national (soon to be central) banking in the US, as the best and most prosperous economic time.

Again. You never learn anything.

 

[Michael]

She was taxed on her wages, not her labor. It's not confusing - you are wrong.

What did she sell?

 

[Michael]

So? What did she sell? She must have owned something in order to sell it. What did she own and what did she sell?

 

[Michael]

Financial Times

The Federal Reserve will pursue another round of quantitative easing before it increases interest rates, according to economist Jerome Booth, who said a premature rate raise would trigger a recession in the US. The former head of research at Ashmore, the emerging market fund house Mr Booth co-founded in 1999, said the Fed was right to keep interest rates unchanged at its last meeting and predicted it would begin a fourth round of bond-buying before rates were increased.

“What we have had is a jobless recovery in the US and so the Fed could not afford to cause another depression by raising interest rates. QE4 will be their next move, which is now much more likely than a rate hike.”

QE4-eva Pro Air

Welcome to Central Planning 101: The Great Recovery from The Great Recession and when that fails and the richest 1% are even more SlumLordier, then we'll get The Great Redistribution and eventually The Great Dear Leader who is Too Big To Term Limit for the good of The You Use The Roads.

 

[Michael]

The Great Recovery, remember? From the Great Recession the Central Planners both caused, and 'saved us' from. Green shoots coming up all around us. Yup, liftoff.

Mission Complete

Next we can start The Great Rebuild where we borrow $3 trillion to give to crony well connected crooks to build low quality infrastructure projects that will cost 10 times more than initially projected and need replaced in a quarter of the time proposed. But think of all those Jerbs! And when these roads degrade, buildings collapse and bridges fall down - there's even MOAR Jerbs! Think of the prosperity!

 

[joepistole]

Financial Times

QE4-eva Pro Air

Welcome to Central Planning 101: The Great Recovery from Tthe Great Recession and when that fails and the richest 1% are even more SlumLordier, then we'll get The Great Redistribution and eventually The Great Dear Leader who is Too Big To Term Limit for the good of The You Use The Roads.

Well here is the deal, if your economist expert whose degree is in geography had been paying attention, he would know this hasn't been a "jobless recovery". And there is nothing wrong with redistribution. Every time you buy something or earn something income is being redistributed. It's called capitalism.

 

[joepistole]

The Great Recovery, remember? From the Great Recession the Central Planners both caused, and 'saved us' from. Green shoots coming up all around us. Yup, liftoff.

Mission Complete

Next we can start The Great Rebuild where we borrow $3 trillion to give to crony well connected crooks to build low quality infrastructure projects that will cost 10 times more than initially projected and need replaced in a quarter of the time proposed. But think of all those Jerbs! And when these roads degrade, buildings collapse and bridges fall down - there's even MOAR Jerbs! Think of the prosperity!

Except that isn't consistent with reality.

 

[Michael]

Every time you buy something or earn something income is being redistributed. It's called capitalism.

Every time you FREELY choose to spend your own money, your income is being distributed. Redistribution is when a group of people point a gun in your face and coerce you to give them your money and then THEY spend it as they see fit. Generally bailing out the richest top 1% for "The Good of Society" because if we didn't bailout the criminally insane, why, Hell would open and Satan herself would suck everyone down into the Hades... oh, and the Sky Would Fall too.

 

[joepistole]

Every time you FREELY choose to spend your own money, your income is being distributed. Redistribution is when a group of people point a gun in your face and coerce you to give them your money and then THEY spend it as they see fit. Generally bailing out the richest top 1% for "The Good of Society" because if we didn't bailout the criminally insane, why, Hell would open and Satan herself would suck everyone down into the Hades... oh, and the Sky Would Fall too.

Oh, well good. .I've never been the victim of an armed robbery.

And you think your definition makes sense?

 

[Michael]

Oh, well good. .I've never been the victim of an armed robbery.

More like a shakedown. When politicians decide it's time for you to pay your 'fair share' and that 'share' is a 99% tax, just remember you've never been the victim of an armed robbery.

 

[iceaura]

So? What did she sell? She must have owned something in order to sell it. What did she own and what did she sell?

Nobody knows. The tax was assessed against her wages, and the government did not asses whether she even showed up for work, let alone what she did.

 

[Michael]

Nobody knows. The tax was assessed against her wages, and the government did not asses whether she even showed up for work, let alone what she did.

Riiiight. Or..... Or, she sold her labor by the hour and was paid for her labor by the hour.

Prior to the 16th amendment to the US Constitution, was it legal to tax the profit made by laborer's when they sold their labor (by the hour, or day, or job)?

 

[Michael]

In a sign of the Great Recovery our Central Planners engineered for them... errrr, us: State-owned coal mining firm to cut 100,000 jobs

Heilongjinag Longmay Mining Holding Group, the largest state-owned coal mining firm in Northeast China, will cut its roughly 240,000-person workforce by 100,000 over three months,Caixin reported, citing the company's Chairman, Wang Zhikui. Longmay will also sell its non-coal businesses and work to collect debts it is owed by other firms in a bid to resolve its shortage of cash,

It must be interesting being an oligarch aristocrat. You can do whatever, safe in the knowledge that the State will sell a few trillion dollars more in debt obligation bailing you out. T-Bonds that The Worker (and It's offspring) will be forced to repay. Not only that, but The Worker will demand the Oligarch do so.
Demand the Oligarch rule over them - oh, I mean "Regulate" and "Licence" them. You know, for the Good of You Use the Roads.

Government Schooling, it certainly get's one thing right.

 

[iceaura]

Riiiight. Or..... Or, she sold her labor by the hour and was paid for her labor by the hour.

Or she didn't. It doesn't matter to the government - the taxes are levied on the wages, not the labor if any.

Prior to the 16th amendment to the US Constitution, was it legal to tax the profit made by laborer's when they sold their labor (by the hour, or day, or job)?

There is no provision in the tax codes for calculating the profit (the gross minus expenses, etc) - again, the wages are taxed without inquiry into what was done to earn them.

 

[Michael]

Or she didn't. It doesn't matter to the government - the taxes are levied on the wages, not the labor if any.

There is no provision in the tax codes for calculating the profit (the gross minus expenses, etc) - again, the wages are taxed without inquiry into what was done to earn them.

Yes, the Mafia is happy to take your money any way it can. That's not my point. The woman SOLD her labor hours. The State taxed her for what? Selling her labor. She's taxed on something she already owns - her body and its actions. If her body murdered someone I'm pretty sure an IRS agent of the State doesn't offer to take 35% of her prison sentence. No, then she owns 100% of her body's actions.

She's being taxed on her labor. She sells Labor AND she pays tax on that sale. It's really that simple. To make this thievery legal, the US Constitution had to amended.

And, now that the State outright controls the money supply itself - and can conjure trillions of fiat notes out of the ether to bailout the richest top 1%, it's not even about money. It's about control. Which is exactly how The Worker like's it - being controlled. Being told what they can do and can not do. Tell them that they have to ask permission and obtain a permission slip from the State to sell arranged flowers, drive people about town, let out a room for the night, consume a substance, fix a computer, etc.... and they will.

It's what they are.

The only reason, and I mean ONLY reason, you think it's perfectly 'normal' for Workers to pay tax per hour to a group of people called 'The Government' is because it IS normal. Had you been born in the 1860s, you'd be arguing against yourself. And for good reason. Only someone normalized to violence would accept such rule without hesitation - support it even. Kind of reminds me of what it must be like for a North Korean to wave a flag in dying support to Kim Jung Il.

All very normal. And hey, I bet they Use the Roads too.

 

[Billy T]

It's almost like a perfect shit storm. {Post3, made 28 Nov. 2010}

Now perhaps, but the DJIA is up 45% since your post. Amazing what a few trillion of thin air money production can do.

Bloomberg Business Page has top with current Dow. I copied it a couple of minutes ago. Here is that copy:

DJIA -318.25
15,996.42 -1.95%
3:29PM EDT

Typically large movements are long up ramps then sudden sharp falls.

 

[iceaura]

The State taxed her for what? Selling her labor. She's taxed on something she already owns - her body and its actions

It's the wages received being taxed, not the labor provided. If she labors, but receives no wages, she pays no tax. If she performs no labor, but receives wages, she pays tax.

This is very simple - it's written right there on the tax forms. Denying this obvious fact of the matter is seriously delusional.

To make this thievery legal, the US Constitution had to amended.

No, only to make it legal for the Federal government. States and cities and towns and so forth have always been able to tax income if they chose.

And of course in the days before Government provided currency was the normal proxy for the fruits of labor, taxing the fruits of labor directly was standard procedure. A share of the crops, of the wine, of the stonemasonry built, to the government, has always been completely normal.

Is there some property of government supplied currency that creates special exemption from the normal forms of taxation?