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

[joepistole]

In more signs of "THE" Great Recovery.
From: The Guardian, San Francisco tech worker: 'I don't want to see homeless riff-raff'

I am writing today, to voice my concern and outrage over the increasing homeless and drug problem that the city is faced with. I’ve been living in SF for over three years, and without a doubt it is the worst it has ever been. Every day, on my way to, and from work, I see people sprawled across the sidewalk, tent cities, human feces, and the faces of addiction. The city is becoming a shanty town… Worst of all, it is unsafe.

This holiday weekend, I had my parents in town from Santa Barbara and relatives from Denver and Rochester New York. Unfortunately, there was three separate incidents and countless times that we were approached for money and harassed.

The first incident involved a homeless drunken man in the morning coming up to their car and leaning up against it. Another bystander got frustrated with the drunken man, and they got into a heated pushing and shoving altercation.

The second incident occurred as we were leaving Tadich Grill in the financial district. A distraught, and high person was right in front of the restaurant, yelling, screaming, yelling about cocaine, and even, attempted to pull his pants down and show his genitals.

Finally, last night Valentines, I was at Kabuki Theater inside watching a movie. About two hours into the film, a man stumbled in the front door. He proceeded to walk into the theater, down the aisle to the front, wobbled toward the emergency door, opened it, and then took his shirt off and laid down. He then came back into the theater shielding his eyes from the running projector. My girlfriend was terrified and myself and many people ran out of the theater.

What are you going to do to address this problem? The residents of this amazing city no longer feel safe. I know people are frustrated about gentrification happening in the city, but the reality is, we live in a free market society. The wealthy working people have earned their right to live in the city. They went out, got an education, work hard, and earned it. I shouldn’t have to worry about being accosted. I shouldn’t have to see the pain, struggle, and despair of homeless people to and from my way to work every day. I want my parents when they come visit to have a great experience, and enjoy this special place.

I am telling you, there is going to be a revolution. People on both sides are frustrated, and you can sense the anger. The city needs to tackle this problem head on, it can no longer ignore it and let people do whatever they want in the city. I don’t have a magic solution… It is a very difficult and complex situation, but somehow during Super Bowl, almost all of the homeless and riff raff seem to up and vanish. I’m willing to bet that was not a coincidence. Money and political pressure can make change. So it is time to start making progress, or we as citizens will make a change in leadership and elect new officials who can.

Democracy is not the last stop in politics. In-fact, the order of progression according to Socrates via Plato in the Republic goes: timocracy, oligarchy, democracy, and finally tyranny. Socrates argues that a society will decay and pass through each government in succession, eventually becoming a tyranny.

“The greater my city, the greater the individual.”


--o--
Don't worry Joe, we're almost to Tyranny. Then we can finally have "The Great Redistribution" where those with some, have it taken and given to those with none. Beginning with SlumLords. Why SlumLords? Because everyone hates them, so they make for the easiest ScapeGoat. Sure, we can toss "THE" Kochs in there too. One big fat Redistribution for The Good of The Roads.

Dictator Sanders? Executive in Chief Trump? How about Redistribution Czar

LOL...oh poor baby. He/she has only lived in San Francisco for 3 years...poor baby. I lived and worked in the Bay Area for 12 years. I worked and lived there back in the days when transient hotels were commonplace. San Francisco and the Bay Area at large is very gentrified today thanks to the influx of tech workers. There are only a few places in San Francisco where the poor and transients are allowed to live to live these days. It was much worse a few decades ago. I lived it and worked it. I had to go into those old transient hotels...nothing like the smell of aged piss, poop and vomit or a dead body which as rotted for a few weeks.

Things in San Francisco, the Bay Area, and New York are better now than they have every been. I know, I was there. Sorry Michael, that shit doesn't fly. I was there.

 

[Michael]

LOL...oh poor baby. He/she has only lived in San Francisco for 3 years...

LOL

Don't worry Joe, The People (most of whom read at the 5th grade level) are calling for "The" Great Redistribution. Then poor little Baby's will get all that they deserve Time to pull together, for the Good of Society. Those with some must give to those with none.

 

[Michael]

--o--
Surly a sign of "The" Great Recovery from "The" Great Recession. A few more stops and then Americans elect "The" Great Redistributor and finally "The" Great Redistribution begins

Won't THAT be fun?

That's where those with something, have it "taxed" away from them and given to those more deserving. As an added bonus, I heard that Redistributor The Great was going to send any ex-Banksters having 'profited' from the "The" Housing Scam to work in "The" Mines

Could you imagine the cheers from The People as ex-Banksters are carted off to work in The Mines?! For the Good of Society! ....and "The" Roads. I imagine it'd only be eclipsed by SlumLord-chain-gangs....LOL



Anyway, let's see how long Government Schooled-into-compliance-America, with its fifth-grade reading level, remains pacified when faith in the Economic-Snake Handlers Saint Bernanke and Cardinal Yellen breaks. What will the New Religion be? I believe it'll be Progressive "Democratic" Socialism. Which will require one hell of a Police State. You know, for the Good of Society.....

As they say, interesting times....

 

[joepistole]

LOL

Don't worry Joe, The People (most of whom read at the 5th grade level) are calling for "The" Great Redistribution. Then poor little Baby's will get all that they deserve Time to pull together, for the Good of Society. Those with some must give to those with none.

Well fortunately for mankind most people don't want to go back to the stone age as you do. Has it not always been the case, that those who have must give to those who don't? That's how we were born. Were it not for that giving you nor I would be here today. At various times we all take more than we give. It's how we have survived. That's one of the many unfortunate facts you like to ignore Michael.

 

[joepistole]

--o--
Surly a sign of "The" Great Recovery from "The" Great Recession. A few more stops and then Americans elect "The" Great Redistributor and finally "The" Great Redistribution begins

Won't THAT be fun?

That's where those with something, have it "taxed" away from them and given to those more deserving. As an added bonus, I heard that Redistributor The Great was going to send any ex-Banksters having 'profited' from the "The" Housing Scam to work in "The" Mines

Could you imagine the cheers from The People as ex-Banksters are carted off to work in The Mines?! For the Good of Society! ....and "The" Roads. I imagine it'd only be eclipsed by SlumLord-chain-gangs....LOL



Anyway, let's see how long Government Schooled-into-compliance-America, with its fifth-grade reading level, remains pacified when faith in the Economic-Snake Handlers Saint Bernanke and Cardinal Yellen breaks. What will the New Religion be? I believe it'll be Progressive "Democratic" Socialism. Which will require one hell of a Police State. You know, for the Good of Society.....

As they say, interesting times....

Except as usual with you Michael, most that is crap. The problem faced by the world economy is the lack of demand. Supply exceeds demand, and why is that? It's directly attributable to excessive capital accumulation. There is only so much demand the wealthiest among us can generate. The solution is and must be capital redistribution. It really is that simple.

Unfortunately, at this point, fiscal policies have been sorely lacking and the burden has been entirely born and carried on the backs of central bankers. At some point, we need fiscal policy makers (e.g. the American congress) to step in with some responsible fiscal policies. Unfortunately, if Republicans retain control of congress, I just don't see that happening.

 

[Michael]

WSJ: Japanese Seeking a Place to Stash Cash Start Snapping Up Safes

“In response to negative interest rates, there are elderly people who’re thinking of keeping their money under a mattress,” one saleswoman at a Shimachu store in eastern Tokyo told The Journal, which also says at least one model costing $700 is sold out and won’t be available again for a month.

“According to the BOJ theory, they should have moved their funds into riskier but higher-earning assets. Instead, they moved into pure cash that earned nothing,” Richard Katz, author of The Oriental Economist newsletter wrote this month.

Meanwhile, in Switzerland, circulation of the 1,000 franc note soared 17% last year in the wake of the SNB’s move to NIRP.

“One consequence of the decision to cut the Swiss central bank’s deposit rate into negative territory in late 2014, and deepen the negative rate to -0.75% early last year, may have been to increase stockpiling,” WSJ reports. “Holding money in cash would protect it from the risk of Swiss banks at some point charging a broad range of customers to deposit money.”


--o--
Looks like the State will just have to ban cash altogether. You know, for the Good of Society. How about this? The State takes all of your assets. Determines what your 'fair share is' and you're given that as an allowance to live on. Nanny will give you some money. You be a good little Citizen and go spend it now - on State approved items made by Friends of the State. Now, if you think about it, if you're past your productive years, maybe you could move into one of the State's "Happy Happy Villages". Nanny Knows Best. And, its for the Welfare of Society.
How about you let a Government "Servant of The People" move into your home - you know, because you use The Roads.
Don't worry, you'll be given some State credits so that you can watch State Approved TV in Happy Happy Villa Welfare Home

That free University isn't going to pay for itself now is it?

Done and Done.

Socialism, For the Good of The Roads.

 

[Michael]

Bloomberg: Negative Rates Advocate Fujimaki Says BOJ's Kuroda Got It Wrong

This was interesting:
Japan has ballooning debt and the BOJ is financing debt, that’s the problem,” Fujimaki said. “The yen will weaken further and the risk heightens of a hard landing. There is no debate on an exit policy, so once the economy improves, it will bust and there will be hyperinflation. ”


--o--
Thank the Gawds we bailed out the crooked bankers instead of sending them to jail.

 

[Michael]

Well fortunately for mankind most people don't want to go back to the stone age

Haha, nuking Japan and firebombing Germany didn't send anyone back to the stoneage, I'm sure jailing crooked bankers and taxing slumlords won't either.

 

[iceaura]

Haha, nuking Japan and firebombing Germany didn't send anyone back to the stoneage, - -

Yeah, it kind of did.

But government handouts dug them back out before the knowledge was lost, and were paid back in short order. It's called "Keynesian" economics.

 

[Michael]

Yeah, it kind of did.

But government handouts dug them back out before the knowledge was lost, and were paid back in short order. It's called "Keynesian" economics.

Knowledge was lost???

Come on.

Germans and Japanese mathematicians, physicists, lawyers, teachers, surgeons, aviators, etc... all these people existed before the war and after the war. I do agree that access to American markets and free market trading did allow for prosperity to be generated a bit quickly, but even without America, Germany and Japan would have recovered and probably be at the same level (maybe even better) today. As a matter of opinion, Keynesian economics allowed for misallocation that is the reason why both societies are unable to produce enough offspring to continue paying for all the Keynesian magic thinking.

Which brings me to one point, Central Banks can be thanked for one thing: Us. Society would have never grown at the pace it did without Central Banks. So, our being alive, is thanks to Central Banks. Of course, it's totally unsustainable. But, we exist, and that's what counts

 

[iceaura]

Germans and Japanese mathematicians, physicists, lawyers, teachers, surgeons, aviators, etc... all these people existed before the war and after the war. I do agree that access to American markets and free market trading did allow for prosperity to be generated a bit quickly, but even without America, Germany and Japan would have recovered and probably be at the same level (maybe even better) today

About thirty years, and all that educational wealth is gone. People die, leave, forget, and are bypassed by development.

And it wasn't just "access to markets", but great piles of cash and resources, that proved necessary.

Your fantasies seem to comfort you, but the ruins of destroyed Greek, Roman, Byzantine, Meso-American, Polish, Jewish, and various other cultures indicate that loss of intellectual capital - as some term it - is thorough and rapid in such circumstances. Japan and Germany were reduced to rubble, stone, and without a basis to rebuild. But with competent State intervention, they were restored.

 

[Michael]

About thirty years, and all that educational wealth is gone. People die, leave, forget, and are bypassed by development.

And it wasn't just "access to markets", but great piles of cash and resources, that proved necessary.

Your fantasies seem to comfort you, but the ruins of destroyed Greek, Roman, Byzantine, Meso-American, Polish, Jewish, and various other cultures indicate that loss of intellectual capital - as some term it - is thorough and rapid in such circumstances. Japan and Germany were reduced to rubble, stone, and without a basis to rebuild. But with competent State intervention, they were restored.

Japan was not 'reduced to rubble' and you can find many 1000 year old buildings. Likewise, Germany lost WWI and within a generation was posed to defeat all of Europe in WWII. Particularly had they invented the atom bomb, which they were close to doing. Yes, the USA helped, but the best part of that help was access to our markets.

Socialism is much more effect at destroying society when compared to being bombed out.

 

[iceaura]

Japan was not 'reduced to rubble' and you can find many 1000 year old buildings. Likewise, Germany lost WWI and within a generation was posed to defeat all of Europe in WWII

Germany surrendered in WWI, before being razed - or even invaded. It's infrastructure was largely intact. The Armistice agreement required the German army to withdraw to positions inside Germany - it was signed in France.

The aftermath of WWII was much different. Germany had been destroyed.

Neither Japan nor Germany had any way of "taking advantage of markets" at the end of WWII. They were both without the infrastructure of industrial civilization - Germany much more severely than Japan, as Japan was never invaded, never had foreign tanks rolling across its landscape. So Japan needed much less in the way of Keynesian stimulus - Germany was a third world country, with no way to dig itself out. Not only the Americans, but the Russians as well, poured big money into Germany to get it back on its feet. Socialism on the Russian side, Keynesian capitalism on the American side, restored a bombed out country.

 

[Michael]

Flash from the past.......
Social Progressives over at Salon: Hugo Chavez’s economic miracle
2013

The Venezuelan leader was often marginalized as a radical. But his brand of socialism achieved real economic gains.

For instance, according to data compiled by the UK Guardian, Chavez’s first decade in office saw Venezuelan GDP more than double and both infant mortality and unemployment almost halved. Then there is a remarkable graph from the World Bank that shows that under Chavez’s brand of socialism, poverty in Venezuela plummeted (the Guardian reports that its “extreme poverty” rate fell from 23.4 percent in 1999 to 8.5 percent just a decade later). In all, that left the country with the third lowest poverty rate in Latin America. Additionally, as Weisbrot points out, “college enrollment has more than doubled, millions of people have access to health care for the first time and the number of people eligible for public pensions has quadrupled.”

So? How did Progressive Socialism work out for them in the long run?

WSJ: Venezuela is on the brink of a complete economic collapse
2016

The only question now is whether Venezuela's government or economy will completely collapse first.

The key word there is "completely." Both are well into their death throes. Indeed, Venezuela's ruling party just lost congressional elections that gave the opposition a veto-proof majority, and it's hard to see that getting any better for them any time soon — or ever. Incumbents, after all, don't tend to do too well when, according to the International Monetary Fund, their economy shrinks 10 percent one year, an additional 6 percent the next, and inflation explodes to 720 percent. It's no wonder, then, that markets expect Venezuela to default on its debt in the very near future. The country is basically bankrupt.

 

[iceaura]

So? How did Progressive Socialism work out for them in the long run?

Compared with the reactionary capitalism of Argentina? Pretty well, actually. But no commodity based economy that gets on the wrong side of the US banksters is going to enjoy peaceful prosperity for long - and all of Latin America is currently in the crosshairs.

 

[Edont Knoff]

Knowledge was lost???
Germans [...] mathematicians, physicists, lawyers, teachers, surgeons, aviators, etc... all these people existed before the war and after the war.

Many scientists have been deported, at least for some time:

https://en.wikipedia.org/wiki/Operation_Osoaviakhim
https://en.wikipedia.org/wiki/Operation_Paperclip

So after the war, the most advanced scientiest and engineers were no longer "there" but in the winners countries. Along with some of the few remaining factories and machines, which the winners took too.

This is a view of my home town after the war:
http://cdn1.stuttgarter-zeitung.de/media.media.e674e556-fd9f-411e-b638-20ac57a08934.normalized.jpeg

There wasn't much left to work with. And other cities looked worse, even if it might sound hard to believe.

Stone age, as mentioned above, quite nails it.

 

[Billy T]

Flash from the past.......
Social Progressives over at Salon: Hugo Chavez’s economic miracle 2013
So? How did Progressive Socialism work out for them in the long run? ...

As your first quote notes the first decade or so made fantastic improvements in the welfare of the people. Mainly by breaking up the vast land masses owned by the few, so the people ceased to be serfs, but could farm their own land. Also very wise was the formation of new small towns,* each with one or two industries (much like Israeli kibutitz) that produced one item efficiently in large volume to trade with other new towns for items they needed.

But Chavez was becoming a dictator, interested in growing his personal wealth and power and not interested in making an educated population and institutions for a Scandinavian style democracy - so now most of that progress is lost, and economic collapse is rapidly approaching. You can not blame democratic socialism, for Chavez's destruction of it.

* Each had a small, low powered, government controlled radio station – That let Chavez easily become the self-serving dictator without significant resistance.

 

[Michael]

As your first quote notes the first decade or so made fantastic improvements in the welfare of the people. Mainly by breaking up the vast land masses owned by the few, so the people ceased to be serfs, but could farm their own land. Also very wise was the formation of new small towns,* each with one or two industries (much like Israeli kibutitz) that produced one item efficiently in large volume to trade with other new towns for items they needed.

Land ownership is one of the most interesting and important aspect to social organization.

Obviously, those massive land owners gained property rights through force. It seems reasonable to have their property rights revoked, mainly because they stole that land and then used the State to enforce their ownership rights (or private militia, same difference). But, what happens if this happened morally? That's interesting. It's reasonable to assume that if the majority of people would support a dictator, that this same majority may also support using non-violent means to pressure a large landholder (for example, social ostracization). Particularly with technological advancements. If a robotic farm can, in a medium high-rise, produce enough food for a large city, who'd want to hold large acres of land unproductively?

Anyway, that's an interesting topic.

 

[Michael]

But Chavez was becoming a dictator, interested in growing his personal wealth and power and not interested in making an educated population and institutions for a Scandinavian style democracy - so now most of that progress is lost, and economic collapse is rapidly approaching. You can not blame democratic socialism, for Chavez's destruction of it.

The two go hand in glove. It's no surprize that highly socialistic societies, like the USSR, E. Germany, N. Korea, Cuba, Venezuela end up either imploding economically, electing a dictator or both.

 

[Billy T]

The two go hand in glove. It's no surprize that highly socialistic societies, like the USSR, E. Germany, N. Korea, Cuba, Venezuela end up either imploding economically, electing a dictator or both.

Most consider the Scandinavian countries to be "socialist" so you are over generalizing.