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Reverse Engineer's Explanation of Markets and Investing

Discussions about the economic and financial ramifications of PEAK OIL

Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby cube » Fri 12 Sep 2008, 14:20:16

$this->bbcode_second_pass_quote('mmasters', 'S')urprised more people can't see health care is one of the next things up for nationalization. When you look at it few at this point can reasonably afford it and that's not going to get any better. The positive aspect of it now is at least you have options. In a nationalized health care system there will be a standard procedure for everything.
I don't think government has the power to make things affordable.

They do have the power to take money from person A and give it to person B. That is unmistakable.
So in reality gov. can only make something affordable for one person only at the expense of causing a loss to another person.
I think a lot of the financial problems in this world begins when people turn to the government asking it to make things affordable.

my 2 cents
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby EnergyUnlimited » Fri 12 Sep 2008, 16:21:49

$this->bbcode_second_pass_quote('mmasters', 'I')n a nationalized health care system there will be a standard procedure for everything.

Lethal injection for everyone above 60?...
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby mmasters » Fri 12 Sep 2008, 19:49:56

$this->bbcode_second_pass_quote('EnergyUnlimited', '')$this->bbcode_second_pass_quote('mmasters', 'I')n a nationalized health care system there will be a standard procedure for everything.

Lethal injection for everyone above 60?...

LOL well it's sort of like that now just a slow poisioning that's profitable.
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby ReverseEngineer » Sat 13 Sep 2008, 03:57:03

$this->bbcode_second_pass_quote('MrBill', '
')Well, I have spent the better part of three years over 5000 posts talking about these and related issues. And I must say, learning from others about their own areas of expertise. There is no way I can sum all that information up in one neat paragraph. And besides as asset classes change in value relative to one another it is a dynamic process and not a static one. As well what works for the individual or a small number of investors is not possible for everyone. Therefore, there are solutions to various problems whether they are individual, community, regional or national, but they are not the same.


As someone who has spent more than 7 years writing over 30,000 posts in my particular area of expertiese on my own board, I am quite aware of the problem you have when new members join and haven't read all the material you wrote before. It gets tiresome repeating yourself, but unfortunately it is not possible for anyone to really go back and read everything you wrote before. As anyone here can already attest, I write in volume, I write daily, I write fast and while you might not agree with all my perspectives, I'm not particularly stupid either.

So, periodically you have to rewrite and make some digests to get your newbies up to speed. This post was something of a start, but it does not really answer the question I asked, its too much of a generalization.

The question I asked was not really about securing yourself through a diversification of your own ability to do things and survive if everyone loses everything on the financial level, its about what a given person with say $1M invested right now in a diversified portfolio of equities, commodities, bonds and currencies would do to preserve some protion of that wealth in a massive financial meltdown of the banking system, which with F&F, WaMu, Lehman et al going down one has to say is happening right before our very eyes.

So let me make it specific enough you can answer the qeustion without going into generalites. How have YOU diversified your portfolio to weather this storm, how much value was in that portfolio last year (you can normalize here to 100 if you don't want to talk absolute wealth) and how much is in it right now? How much of your wealth have you been able to protect through your investment strategies in your case in your neighborhood?

I will tell you for myself, to date at this point in the Financial and Social Storm, I have not yet lost a penny of my wealth, I am just as good today as I was last year, in many respects better off. I do not expect that to remain true in perpetuity of course, but so far I am doing OK.

I am looking here for a direct explanation of how you are weathering the storm, and your progress report on your total wealth as we spin down here. Is that a fair question to help bring me up to speed without trying to find all 5000 of your posts, read them, and then question you on them?

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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby ReverseEngineer » Sat 13 Sep 2008, 06:01:53

$this->bbcode_second_pass_quote('MrBill', '
')So you could say that labor has no intrinsic value. It is worth whatever we are willing to pay for it. High levels of unemployment are wasted labor. In comparison some labor we are apparently willing to pay a lot for like film stars, professional athletes and famous singers and performers. We assign that value to their labor each time we pay to see them perform or buy their films and music. Why they should earn more than a coal miner is not clear other than we have collectively decided it should be so.

As I listen to music, and know how to read and write, it should be possible to pen a half dozen Top 10 music hits in a day or so. If I could I would be able to live for the rest of my life without ever working again. It is not a question of my labor, but of my talent. Another wasting asset with no intrinsic value.


I wrote an analysis of the problem of labor versus property ownership a number of year ago for my board. It is apropos to this discussion, so I will share it here. I entitled this post "The Clan of the Copyright Bear", and its is basically an indictment of the concept of ownership of intellectual property. Fun post, IMHO.

-----------------

Sometimes, because we are so immersed in the values, social system
and laws of the post-industrial society in which we live, it is
difficult to see how some of the concepts we think are immutably set
in concrete really are not that way at all. The concept of
intellectual property and ownership of ideas is one of those cases.
The issue of Musical Ownership and Copyright provides an excellent
test case for the validity of some of our current concepts. Music,
because it does not have substance, is particularly easy to
reproduce. This makes it a very difficult thing to "own", and to
have "rights" to. Technology of course has made this easier, but
this has been the case since the dawn of time.

Lets say I am a tribal flute player in post-Neanderthal France, and
go to the annual gathering of tribes at the Summer Meeting to play my
latest tune. I worked all through the cold days of winter in the
cave composing this masterpiece. It is such a moving love song that
the birthrate in the spring for my tribe is huge :-) We are talking
a Double Platinum Chart Topper on the Cro-Magnon Billboard. All the
flute players from all the other tribes come to the Summer Meeting,
and the teenyboppers squeal when I arrive in camp toting my flute. Of
course since writing has not yet developed the other flute players
can't buy the sheet music from me, and it is darn tough to cut a CD
out of rock. The teenyboppers will have to come to my campfire to
hear the tune also, a major league benefit. (... and this one time,
at band camp...:-)

Reaching back into our human history, all music was heard, learned
and played by ear live, and in fact people who learn this way
generally have what we call today "perfect pitch". Anyhow, the
outcome of my performance is that now all the other flute players can
play my masterpiece. There is no way for me to "charge" them for
this knowledge. I could charge them to come listen to me around my
campfire, but I could not charge them for every time they played
their flute after that, or for teaching it to other flute players.
Of course, in a tribal society, I would have huge status from this,
and most likely I would get quite a bit of tribute, particularly from
the teeny boppers. Modern day Rock Stars have long capitalized on
this particular phenomenon as well. However, its not obligated,
because there is no way to do so. Even if I exclude people who don't
pay to hear my flute performance, they will eventually learn it from
the people who did pay. This is why traditionally, musicians earned
their money through performance, which is effectively manual rather
than intellectual labor.

On the other hand, lets say I am a first class spear point maker.
While my friend the flute player is composing his masterpiece, I am
toiling away making 10 razor sharp double edged press-flaked obsidian
blades a day, a totally revolutionary technique. With 50 blades I
can trade for a goat at the Summer Meeting. 200 blades will by me a
nice new wife. 500 blades will buy an even nicer horse :-) Spear
Points, unlike Music, have substance. They can be traded for other
things of substance.

Like the composer, however, I do have something about my blades that
can be copied. Other blade makers will figure out my cool double
edge technique. Before you know it, the market will be flooded with
double edge press-flaked blades. At next year's Summer Meeting, it
might take a whole winter of point making just to buy a goat. I'll
really have to save up for a couple of winters if I want to buy
another wife. I'll really need the wives if I want to buy a horse,
because I'm going to have to teach a slew of my kids point making to
have enough spear points to trade for one of those. Of course, if I
was real smart, I would have kept my special press-flaking technique
a secret, and only teach it to my kids, who I will have a ton of
because I bought so many wives :-)

The idea of copyright on music is a relatively modern one, as is the
idea of patenting an invention. Both of these ideas have stimulated
modern creativity and invention, because they make it extremely
profitable to have an idea. It is even very profitable to steal
other people's ideas, change them enough to make them look like
yours, and corner the market. Just ask Bill Gates.

In the world of academia, traditionally no one "owned" an idea. You
publish your work to further the total knowledge of human kind.
Other academics then use your ideas to create new ideas of their
own. Knowledge expands exponentially because of the free exchange
and use of ideas. However, in recent years academics have become
jealous of engineers and industrialists who patent ideas and become
rich, while they are pulling down a professor's salary. You now have
people patenting things like parts of the Human Genome, which clearly
they did not invent, just elucidated first. Does this further human
knowledge? I hardly think so. It just enriches those who get there
first and legally bind up the ideas.

While the concept of ownership of ideas has been good for our society
in some ways, in others it is not so good. It devalues individual
work of the manual kind, because you can be paid many times over for
having one good idea. It limits the free flow and use of
information. Finally, it creates an incredibly tangled legal concept
that is extremely hard to enforce. So in addition to outrageously
wealthy "owners" of ideas like Bill Gates, you have some extremely
well-to-do patent lawyers.

What goes around, comes around. The ability to "sell" idea oriented
stuff like literature and music worked very well when the means of
producing printed material or plastic discs required large industrial
style production facilities for the printing of books or the pressing
of record albums. However, because of technology, as in the days of
the Cro-Magnon when stories were passed on orally and music was
played and listened to live by individuals, protecting and charging
for these ideas has become impractical and unenforceable, for the
most part. On the large scale, the ownership concept can still be
enforced against a service like Napster, but it can't stop the
millions of individuals burning CDs, or establishing their own small
Napster-like trading systems on the web.

As a person who values thought and ideas, and who has quite a few of
my own, I certainly try to protect my material so that it retains its
value. But I recognize also that because of the nature of technology
and communication systems in the modern era, it is quite possible for
people to copy things I conceive of. JetAerial is particularly hard
to copy in its full form, because it has many aspects which only I
can personally provide, at least at the bargain basement price I
provide them. The software is custom designed for every individual
gym. Most people don't know how to REALLY use Access, so I have to
teach that. Many people don't have quite the repertoire of drills I
have worked up over 20 years, and certainly they don't have them in
searchable MPEG digital video form. Few people have the time,
ability or inclination to do graphic layout and write promotional
material for their custom gymnastic system. Few people give bang up
clinics for gymmies that are great fun. I protect my ideas not by
using the legal system, but by providing so many things that copying
it becomes at best impractical, and in many ways impossible.

Certainly musicians should be paid for their compositions.
Choreographers should be paid for their choreography. But how many
times should they be paid? Once you put your ideas out there, you
need some other means than the legal system to protect you from
copying. Evolution of technology has made this concept simply
impractical to apply.

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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby MrBill » Mon 15 Sep 2008, 03:10:25

Well, specifically, I have been very overweight cash in the past one year. I was/am afraid of inflation, but I was more concerned about a steep loss in the market. My equity portfolio is one third its normal size. I took profit on most of my open, profitable positions last summer. I was overweight the DAX and took profit after it was up some 20% last year. It is now down over 20% this year. I also cut all my dogs. Beware of value traps. Some look to get rich quickly. I am aim for a steady 15% return. That would double my money every five years. If an investor can do that over time then in my opinion that makes them a super star. But as I do not short stocks that is not possible at the moment.

I made only two serious mistakes in the past year. One I re-purchased the Citigroup stocks that I had sold earlier last year. Fortunately, I only bought back one half of what I sold, but still too early. My rationale at the time was their global exposure, but I would have been smarter to pick JP Morgan. And two I kept GE as a large cap that I hoped would weather the storm better than some other stocks. It has not, but it is only a small portion of my portfolio. I like it long-term, but it may need to shed some businesses to unlock some trapped value.

I am a big believer that no one position should be large enough to sink my portfolio. I took one large loss once in an ag-bio tech start-up that ran out of money at the wrong time. Since then I have kept myself more balanced. Some call it di-worsification, but I call it capital protection.

I bought Canadian oil & gas mutual funds back in the late 1990s. Those have done well, so I do not touch them. Ditto for the Asian growth funds. I got hurt during the Asian crisis, but since then they have done very well, so I leave them alone to grow. As I am sitting on too much cash, I allocated some to German bunds. Again for capital preservation. I went into euro early below $1.2000, so even a stronger US dollar now really does not affect me very much. My exposure to the US dollar is minimal. The bunds are insurance against a real fallout. I think at some point the ECB will turn to supporting growth versus fighting inflation out of need. But realistically with interest rates of 4% p.a. those bunds are not likely to outperform a recovering stock market or significantly outpace inflation. However, they are as good as cash, so I keep them for insurance.

Other than that I paid off a lot of personal debt last year and this spring. I looked around and found everything too expensive. So when everything is too expensive it makes sense to pay down debt. I did not have much, but now I have zero. I like real estate. I like to buy three-four story walkup apartment buildings in quiet, urban areas near schools, hospitals and public transport. Due to oil development in Alberta, I find Edmonton the best place to invest at the moment. That is long-term investing over decades. But we started buying back in the 1970s, so some of those buildings have been pure cash cows. Now the prices are quite a bit higher, but the price per door has been coming down approximately 20%, so perhaps in January we will look to buy another building at the right price.

I like farmland, too, but to be honest in Alberta it is simply too expensive. It cannot pay for itself based on what we can produce. So you can either afford it or not. As an insurance policy I would like to add to our home quarter, but as an investor I cannot afford to overpay. Eventually I would like to add a few more quarters, but not in the current environment. Post peak oil the farm is our ace in the hole.

But in the meantime, I like the energy sector and the Asian growth story, but many of those stocks simply got too expensive. The S&P Energy Index at 480 has a triple bottom in place since August of last year. That has been a good place to buy. I like oil service companies. But that is trading. Not investing. In the current environment I am more worried about capital preservation than missing the bottom. I am definitely convinced this is not The Bottom. I think on the S&P 500 we will see 1174/1078, yet. LB and ML should push us in that direction as the Fed/Treasury run out of bullets. Could it get worse and punch below 1078? I think it is a real possibility.

We have been very bearish since early 2007, so we were not surprized by this bear market. Even then back in June 2007 we postulated that this crisis would last until after the Beijing Olympics. And it has. Although at the time our bankers in London thought we were very pessimistic. I posted about the bear trap after the S&P 500 rallied late last year when the Fed started cutting in August. We knew there were problems, but we did not foresee how bad this credit crisis would become. The housing bubble popping, yes. The extent of this credit crisis, no.

So net-net I have not personally lost any money so far. However, professionally it does affect me as we have core, strategic positions in Russian oil & gas as well as the power sector, for example, and those stocks have gotten crushed since they hit all-time highs in May 2008. We did write some calls and buy some puts, but realistically the position is simply too large to hedge, so we have to ride this down wave out. We like those sectors long-term, so there was never the option to sell-out unfortunately.

On the funding side we have had to make a lot of cash and collateral margin calls as the market has slid. That has been quite painful. Fortunately, we have deep pockets. But it is still not very nice. Of course, we hope that no one defaults on the other side of those funding deals. It can happen. We got hurt when Refco went bankrupt. Another reason that we have counterpart limits and restrict our exposure to any one bank or client. We have no open positions at the moment with LB or ML. We do not have a relationship to BoA, so their purchase of ML does not affect us except that we have one counterpart fewer now.

So I hope that is detailed enough for you? I am certainly not going to post such a breakdown again. Basically this is the internet and what I am specifically buying or selling is no one's business but my own.
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby ReverseEngineer » Mon 15 Sep 2008, 03:49:37

$this->bbcode_second_pass_quote('MrBill', '
')So I hope that is detailed enough for you? I am certainly not going to post such a breakdown again. Basically this is the internet and what I am specifically buying or selling is no one's business but my own.


Actually, that is WAY more than I really wanted or needed to know :-)

Not too sure about the absolute value of those walkups as the tenants lose their jobs and you have the liability of the taxes and maintenance, not to mention the eviction headaches, but it does seem a little better investment than the rest of the stuff. I'd also wonder about the ability to liquidate your holdings in that real estate as the property values fall? Also, do you show the falling value of the real estate on your balance sheet?

Question more to the point of the latest news regarding Lehman and the precarious position of the entire global financial system holding up, just where do you see the positions you currently hold in your variety of stock and mutual fund holdings? As I see it from my admittedly uninformed position is that all of them are going to go down in value. The underlying wealth really is not there to support the prices such things sell at these days, any more than a house in San Diego really has a value of $1.4M even if you bought it last year for that price.

With as much as you have clearly accumulated, I am sure you will be left with SOMETHING as it spins itself down here, I just am not sure of exactly what the value of that something IS.

So what is your Plan B for the scenario of a total financial melt down? Are you Prepped? Have you gone Long on Food, Guns, Ammo? Got a plan for feeding the family in the absence of stocks and bonds?

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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby MrBill » Mon 15 Sep 2008, 05:05:57

I do not really appreciate it when you continuously ask me for more precise details and then when I provide them you say it is more than you want or need to know.

Yes, I have a Plan A, a Plan B and a Plan C. Compared with 99% of the population I am quite happy where I am at and where I am headed. I am personally not as worried as you are that all of my assets are all of a sudden going to become worthless. That my centrally located buildings will sit empty.

All of my investments have been made - or fit in - with my own personal philosophy of post peak oil resource depletion. The walkups close to schools, hospitals and public transportation. Not only our farm, but the large, mixed farms of our extended family and cousins. The complete set of hand and power tools and the knowledge of how to use them. The farm machinery as well as machine shop and sheds. The garden. The fruit trees. The wildgame. Hunting and fishing as well as grain farming and raising cattle. The access to fresh water and firewood. The ability to convert from gas and power to geothermal, solar and wind. Not that Alberta is going to run out of natural gas, power or coal any time in the near future, but there are plans to build Candu reactors in any case. The uranium is next door in Saskatchewan.

Stocks and bonds can be sold. It does not get any safer than German bunds. And I am diversified. But as I said I am overweight cash, so if those assets lose value then my cash becomes more valuable. As others lose money that they need or have to fund losing positions then the assets that I can afford get cheaper. My currency exposure is largely hedged. I know what risk is and how to mitigate it.

This is infotainment. At the end of the day I am going to go on doing what my family and I have been doing very successfully for the past forty some years. Sweat equity, discipline and sticking to what we do best. We are a family of farmers, welders, mechanics and gas well operators. And so are our close neighbors. None of us are afraid of hardwork. So I would suggest that you worry more about your own investments and financial security rather than argue about my own investment logic.

I am not going to waste any more time discussing this further. Thanks.
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby ReverseEngineer » Mon 15 Sep 2008, 05:19:22

$this->bbcode_second_pass_quote('MrBill', ' ')We are a family of farmers, welders, mechanics and gas well operators. And so are our close neighbors. None of us are afraid of hardwork. So I would suggest that you worry more about your own investments and financial security rather than argue about my own investment logic.

I am not going to waste any more time discussing this further. Thanks.


It was interesting infotainment while it lasted then :-)

Sounds like a very good plan to me overall, so who knows perhaps we will meet up someday in the aftermath.

Sounds like a big family too! Good community to work with.

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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby MrBill » Mon 15 Sep 2008, 05:45:02

Yes, as I see a future of local and regional solutions to our energy and environmental problems I think a large extended family and a group of close friends and neighbors is one of the best natural hedges against job losses, financial crises and economical turmoil. Being totally rural and living in the country means that we rely on our neighbors, but also the sense of community is also very strong. Unfortunately, I have not had the luxury of being a part of that community for quite some time now, but I hope within the next five years to be home permanently. God and my good health willing. A friend of mine died of a heart attack over the weekend and another friend from Lehman Bros. just got laid-off today. So at times like this I am reminded that nothing is permanent and that there are more important things in life than making money. Cheers.
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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby ReverseEngineer » Mon 15 Sep 2008, 06:05:03

$this->bbcode_second_pass_quote('MrBill', ' ') So at times like this I am reminded that nothing is permanent and that there are more important things in life than making money. Cheers.


It never took times like these for me to understand that concept. It has always been my philosphy that making money was the least of importance in true value of life. Quite capable of making money of course, always have made enough, but gave up the idea of trading at the expense of others to make more than I needed for myself. As you say in your tag line "Society is a wonderful invention whereby everyone can live at the expense of someone else". I try not to do that, but rather to benefit the lives of others. Unfortunately, my philosophy is not all too common, and so we are where we are now. So be it.

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Re: Reverse Engineer's Explanation of Markets and Investing

Unread postby mos6507 » Mon 15 Sep 2008, 10:42:32

$this->bbcode_second_pass_quote('ReverseEngineer', '
')I try not to do that, but rather to benefit the lives of others.


Give me a real life anecdote that demonstrates that.
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Solutions to Global Monetary System Meltdown

Unread postby ReverseEngineer » Tue 16 Sep 2008, 04:04:09

A bit out of character here, I'd like to start a thread for SOLUTIONS to a complete meltdown of the current monetary system.

Now, clearly a complete fiat monetary system does not work, we gotta base the value of currency on SOMETHING besides the "faith in the Gooberment".

Since ALL currencies EVERYWHERE, and all governments are going to be pulled down into this Black Hole, as a WORLD we have to Reboot and start over. All debts wiped off the books for everyone. We then need a new currency with which to work for Trade purposes. So all the World Leaders need to get together and establish a World Currency Unit, based on the equivalence of Work and Heat in thermodynamics, and call the new currency unit the Calorie.

Then we issue to each person in the world say Cal&1M Calories, enough to get them through the next year and since right NOW the world has enough calories in food to do that in storage and growing somewhere.

Now, long as you produce in some manner more Calories than you eat over the next year, as a human being you are a going concern. You could do that in any number of ways, from directly producing food calories yourself growing them on the land (for which you get a 1:1 Cal& Note), to providing energy calories which are accounted for by subtracting from the caloric energy of a gallon of oil actually needed to produce a calorie of edible foodstuff. So if the tractor and the transport process use up a big part of the oil calories, the oil producer only gets Cal& Notes for the end resulting food calories. While it would still be profitable to have a lot of oil in the ground, it would not be quite so profitable as it is now.

I DO realize many of the problems with the idea, such as how on earth would you distribute out the New Money to everyone? And how do you keep the corrupt Government leaders from issuing themselves more than their share of the extant calories? That of course is a very tough problem to solve, I would be interested in ideas on that one.

However, despite the obvious problems, clearly we will need SOME kind of currency to keep trade going. You can poke holes in this idea, or you can present an idea of your own as a potential solution. Looking forward especially to hearing from the knowledgable economists on the board what they think would be a good solution to a Global Monetary System Meltdown, obviously currently underway.

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Re: Solutions to Global Monetary System Meltdown

Unread postby alokin » Tue 16 Sep 2008, 04:18:44

there are yet systems in place, one I remember is LETS
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Re: Solutions to Global Monetary System Meltdown

Unread postby Quinny » Tue 16 Sep 2008, 04:30:59

I actually suggested this and proposed Energy Accounting to a political conference about 20 years ago. Some people understood the concept most looked at me as though I'd totally lost it.

What about kids, elderly etc.

The C of E (radicals eh) came up with the idea of a personal allowance that was given to everyone via tax and then there was a totally flat rate of tax after that to avoid distortions in demand, but one major drawback is the problem with population control. It was argued that once security of income was established that rates of population growth would diminish because of the elimination of poverty.
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Re: Solutions to Global Monetary System Meltdown

Unread postby americandream » Tue 16 Sep 2008, 04:58:45

Communism across the world and the dissolution of the nation state.
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Re: Solutions to Global Monetary System Meltdown

Unread postby ReverseEngineer » Tue 16 Sep 2008, 04:58:47

$this->bbcode_second_pass_quote('Quinny', '
')What about kids, elderly etc.


Well first off, since kids and the elderly all get their Cal&1M to tide them through the next year, they are OK for this period.

However, after that, if anyone wants to have kids, unless they can provide enough Cals to support them until they can be Cal producers themselves it would be a bad idea to have kids. Similarly, unless you are producing a lot of Cals, keeping around an aging grandparent would be a bad idea as well if said GP isn't producing enough Cals.

For 2 kids you currently HAVE who might be under the age of 5 right now, you have a tough problem. Unless you can produce enough Cals to keep them alive as well as yourself, you are going to have to let one of them go, like the mother in the Tsunami does. How you might do that is a matter of Choice, maybe you let the child starve to death or maybe you expose her on a mountaintop or maybe you sell her to someone else who has Cals to provide for her, if you opt for a life of slavery for the child as opposed to death as the better Choice. For the aging GP who no longer produces enough Cals, that oldster has the choice themselves of starving to death or going out and giving himself up to the Bear, giving his Crossbow and his Knives and his Red Fox Fur Mittens to one of his heirs before he dies.

I do believe I have answered the problem of Population Control with this system. How well it would play in an Economic Conference however is another story :-)

Remember I am a very strict Darwinist on most of these issues. its all about utility here when I make the analysis, I push out my moral dismay that such choices MUST be made. They must be made though, so be it. That is how it IS. I just constructed an economic system to reflect the reality.

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Re: Solutions to Global Monetary System Meltdown

Unread postby ReverseEngineer » Tue 16 Sep 2008, 05:12:14

$this->bbcode_second_pass_quote('americandream', 'C')ommunism across the world and the dissolution of the nation state.


Dissolution of the Nation-State yes, Communism no.

Its certainly a redistribution of wealth that currently exists, but thereafter its up to each individual to produce Cals, or perhaps trade for Cals, and said person could accumulate plenty of Cals themselves if they are industrious and a good food producer. Or a good trader. Or have some service or ability others need to produce more Cals.

I am NOT a Communist. I am a Darwinist. What wealth there is in the world has been scarfed up by a lot of very greedy folks who manipullated the market and the money supply basically since as far back as the Rothschilds. A ton of it just went up in SMOKE, and the fires are still burning. All I am doing here is Rebooting, leveling the playing field and giving everyone an even chance to start over. With REAL money, based on a REAL unit of currency, the thermodynamic equivalence of Work & Energy.

Don't accuse me of being a Communist, that is thoroughly incorrect. Read what I write more clearly please.

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Re: Solutions to Global Monetary System Meltdown

Unread postby Quinny » Tue 16 Sep 2008, 05:25:56

Like you said this is simply capitalism with a re-boot. Once you start trading someones gonna buy a gun.
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Re: Solutions to Global Monetary System Meltdown

Unread postby wisconsin_cur » Tue 16 Sep 2008, 05:28:15

$this->bbcode_second_pass_quote('ReverseEngineer', '')$this->bbcode_second_pass_quote('americandream', 'C')ommunism across the world and the dissolution of the nation state.




Don't accuse me of being a Communist, that is thoroughly incorrect. Read what I write more clearly please.

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AD will correct me if I am wrong but I think the comment was offered as a suggestion and not as an interpretation of your position.
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