Blog description.
Liberty and freedom are two proud words that have been executed from the political lexicon: they were frog marched and stood before a wall of blank minds, then forcibly blindfolded, and shot, with the whimpering staccato of ‘equality’ and ‘fairness’ resounding over and over. And not only did this atrocity go unreported by journalists in the mainstream media, they were in the firing squad.
The premise of this blog is simple: the Soviets thought they had equality, and welfare from cradle to grave, until the illusory free lunch of redistribution took its inevitable course, and cost them everything they had. First to go was their privacy, after that their freedom, then on being ground down to an equality of poverty only, for many of them their lives as they tried to escape a life behind the Iron Curtain. In the state-enforced common good, was found only slavery to the prison of each other's mind; instead of the caring state, they had imposed the surveillance state to keep them in line. So why are we accumulating a national debt to build the slave state again in the West? Where is the contrarian, uncomfortable literature to put the state experiment finally to rest?
Comments Policy: I'm not moderating comments, so keep it sane and go away with the spam. Government officials please read disclaimer at bottom of page.
Monday, July 30, 2012
Taxing Language: A Question for the Politicians - Fair: What Do You Mean?
Thursday, July 26, 2012
1984 Comes To 2012: Children Nowadays Were Horrible.
"Nearly all children nowadays were horrible. What was worst of all was that by means of such organizations as the Spies they were systematically turned into ungovernable little savages, and yet this produced in them no tendency whatever to rebel against the discipline of the Party. On the contrary, they adored the Party and everything connected with it… All their ferocity was turned outwards, against the enemies of the State, against foreigners, traitors, saboteurs, thought-criminals. It was almost normal for people over thirty to be frightened of their own children."
School children are being encouraged by HM Revenue and Customs to tell their teachers if they know of anyone "in their local area" who is not paying their fair share of tax … One module, headlined “tax responsibilities of a good citizen”, aims to help teenagers “understand the obligations if being a good citizen and discuss what should happen to those who are not prepared to work under such obligations”. One lesson plan – targeted at 14 to 16 year olds … continues: “Show class the remaining factfile slides on tax evasion. What do students think of those who refuse to pay tax … ? “Can they think of any example they may have heard of in their local area?”
If you want a picture of the future, imagine a boot stamping on a human face — forever.
Wednesday, July 25, 2012
Tax Havens et al - Persecuting Rich Pricks Again / Dobbing in Daddy Dodger.
UPDATE 1:
And just when I wonder if I'm getting a bit beyond reason, I find that I'm not even keeping up with the statists. Above I wrote:
The next step is usually convincing children that's it's patriotic to dob in their parents.
And then, hattip Crusader Rabbit, I find the statists are already there - incredible:
School children are being encouraged by HM Revenue and Customs to tell their teachers if they know of anyone "in their local area" who is not paying their fair share of tax.
It's all there, I'm afraid, George Orwell's novel 1984 made real: we're living the nightmare.
Monday, July 23, 2012
Austerity is Not Discretionary: Inter-generational Theft A Last Time.
… you can't live beyond your means because it's pleasant. It's not sustainable. Clearly the level of debt that we have is not sustainable. We have a whole generation – the Baby Boom – that's about ready to retire, and they have no retirement savings. We have a federal government that is bankrupt, literally. Its [debt is] $16 trillion and growing by a trillion a year. Something's going to give. We can't pay for all these entitlements. There won't be the revenue generation in the economy to do it.So as a result of that, we are deluding ourselves if we think we can just continue to spend. Look at the GDP that came out in the first quarter of this year. It was only 2.2%. Most of it was personal consumption expenditure, and half of that was due to a drawdown of the savings rate, not because the economy was earning more income or generating more real output. It was because of a drawdown of savings. That is exactly the wrong way to go – an indication of how severe the crisis is going to be.
… the clamoring and clattering that you hear from the Keynesians (or even mainstream media, which is pretty clueless economically) that austerity is bad, forgets the fact that austerity isn't an elective course. Austerity is something that happens to you when you're broke. And yes, it is painful and spending will go down and unemployment will go up and incomes will be impaired, but that is a consequence of the excess debt creation that we've had for the last thirty years. So austerity is what happens when you break the rules.And somehow we have this debate going on. They're making a mistake. They chose the wrong strategy. Do you think Greece chose the wrong strategy with austerity? No. No one would lend them money. That's why they ended up in the place they were. Do you think that Spain today is teetering on the brink because they said, "Oh, wouldn't it be a good idea to have austerity?" No, they had a gun to their head. They were forced to do this because the markets would not continue to lend, and even now their interest rate is again rising. The markets are losing confidence, and unless the ECB prints some more money and bails them out some more, they are going to have austerity. So the austerity upon us is the backside of the debt supercycle we had for the past thirty years. It's not discretionary.
The Fed has destroyed the money market. It has destroyed the capital markets. They have something that you can see on the screen called an "interest rate." That isn't a market price of money or a market price of five-year debt capital. That is an administered price that the Fed has set and that every trader watches by the minute to make sure that he's still in a positive spread. And you can't have capitalism if the capital markets are dead, if the capital markets are simply a branch office – branch casino – of the central bank. That's essentially what we have today.
Postscript:
Stop the train, I missed Walker's best quotation:
This market isn't real.
Update 1:
As I said, we are witnessing a Western economic collapse: Spanish hemorrhage going terminal:
Spain is heading for a general bailout. It may not happen immediately, but that is what the figures suggest - that sometime in the autumn, maybe sooner, the country will need a full-blown rescue”
Friday, July 20, 2012
Headlines 2012 and 2022: Choice = Freedom. The Tryanny of Each Other.
Gang members, a grandmother and beneficiaries were all arrested in the country's largest cannabis bust which resulted in the seizure of drugs with a potential worth of $130 million.
More than 2500 people were arrested in the six-month crackdown, which has made a massive dent in New Zealand's cannabis supply, police said.
As well as arresting 2573 people, police also confiscated 280 kilograms of plant material, estimated at $5.6m, and destroyed more than 130,385 plants and seedlings with a potential street value (at maturity) of up to $130m.
Following 2009's Operation Lime, which targeted businesses and individuals selling cannabis-growing equipment, the latest raids were dubbed Operation National, which was the largest operation of its kind, Detective Inspector Paul Berry said.
Police targeted drug dealers working out of houses. The crackdown was complemented by Operation Kelly, which used aircraft to spot cannabis crops during the growing season.
When they raided homes police found multi-million dollar operations, including one which was allegedly run by a Wellington grandmother …
Every gang in the country was involved, including the Mongrel Mob, Head Hunters and Rebels, Berry said.
"This is bread and butter for the gangs. This is how they make their money."
Police also found 248 children, who would have watched their parents grow drugs and sell them at the door, Berry said.
Many of those children had been referred to CYFs.
They seized 14 properties, worth a total of $4.6m, eight cars, a boat, and cash and bonds worth more than $1m, some of which was seized under the Criminal Proceeds Recovery Act.
Supermarket owners, a grandmother and dairy owners were all arrested in the country's largest soft drink bust which resulted in the seizure of soft drinks with a black market potential worth $130 million.
More than 2500 people were arrested in the six-month crackdown, which has made a massive dent in New Zealand's soft drink supply, police said.
As well as arresting 2573 people, police also confiscated 280 kilograms of fat laden hamburger meat, estimated at $5.6m, and destroyed more than 130,385 packs of cigarettes with a potential street value (in the schools) of up to $130m.
Following 2009's Operation Squash-Choice, which targeted businesses and individuals selling soft drink selling equipment, such as shelves and refrigerators, the latest raids were dubbed Operation No-Choice, which was the largest operation of its kind, Detective Inspector Paul Berry said.
Police targeted soft drink dealers working out of houses. The crackdown was complemented by Operation Orwell, which used children to spot soft drink in their homes and dob in their parents.
When they raided homes police found multi-million dollar operations, including one which was allegedly run by a Wellington grandmother …
Every corner dairy in the country was involved, including On The Spot Dairies, and 4-Square supperettes, Berry said.
"This is bread and butter for the capitalists. This is how they make their money."
Police also found 248 children, who would have watched their parents selling soft-drink, and drunk it themselves, Berry said.
Many of those children had been referred to CYFs.
They seized 14 properties, worth a total of $4.6m, eight cars, a boat, and cash and bonds worth more than $1m, some of which was seized under the Criminal Proceeds Recovery Act.
Thursday, July 19, 2012
There Is An Inter-generational Theft: It Shows In The Tax System, And Government Debt.
I do think there is a generational theft, indirectly, though have never thought of it in relation to housing: you are pretty well right as far as that is concerned - and farm succession, for that matter. However, as in my Trotter blog of two days ago, especially the postscript quotation of Mauldin, regarding the chickens coming home to roost finally from 70 years of accumulating unsustainable government debt chasing an economic illusion (the welfare state), and we are the generation to witness the collapse of western economies because of this; plus the update of Mankiw who showed since 2009 the middle class in the US are net tax takers, not payers, in a manner similar to the middle class welfare we have here through tax transfers such as Working for Families; I focus this issue solely on taxation: that is, to support the baby boomers, on top of and due to the Keynesian train wreck that is crunching up all economies, progressive taxes/rates over the next twenty years are going to have to rise, and rise dramatically. Taxation is theft, and that theft is set to rise to the levels seen under Muldoon, and the 90p in the pound under Healey, and when Cunliffe has my wallet from 2014, he'll use the baby boomers as the excuse to empty it at an ever increasing rate to build a state I have no agreement with.Which is to say, to make my point succinctly; the welfare state has been, since inception under Micky Savage, founded on an inter-generational theft through the tax system, as the increasing government dollar spend has always outstripped current taxation: proof? Governments have always had to borrow to meet present unfunded commitments. If our welfare states had been affordable, not reliant on the deeper tax slavery of the next generation, and the next, then there would be no government debt. And we are the generation where the debt racked up is bankrupting entire western nations.
I will be paying more tax than my parents did, as well as financially supporting them. That's the 'theft'. I don't mind supporting my parents, but I sure as hell do the taxation that is making the whole problem of the welfare state worse, and paying for which I've lost my freedom to do with my money as I please, and my freedom per se.
Monday, July 16, 2012
Chris (The Fist) Trotter. Squeezing Freedom Until Its Pips Squeak.
If you want a picture of the future, imagine a boot stamping on a human face — forever.
George Orwell – 1984
Yeah, well think again, Matt, because we Baby Boomers are way ahead of you.
The moment you try that stunt, we’ll rediscover our socialist roots, reach out to the poor and marginalised members of Gen X and Gen Y, and join together in a festival of redistribution. The BBs will preserve their National Super, the majority of Gen X and Y will improve their standard of living, and well-paid capitalist apologists like yourself will be squeezed by the IRD until the pips squeak.
Like “Dragonfly” said, it’s who’s got the votes that counts, and for the foreseeable future we, the old and the poor, will remain the many, and you and your kind, Matt, will remain the few.
Ain’t democracy grand!
LOLOLOL “capitalist apologists”, good fun.
[Snip.]
So you are saying baby boomers are happy with free enterprise and choice for themselves, but are willing to subject future generations to a world of limited opportunities and enterprise. You seem to make baby boomers sound like even more selfish and evil individuals than I have ever imagined! I guess I’ve been lucky to meet generally well meaning and good natured baby boomers in my time
Unfortunately my advocacy of laissez-faire capitalism - noting the crony capitalism we have is to capitalism what sea horses are to horses - has never been about money; it's only ever been about that wonderful, evolutionary thing that capitalism, and only capitalism, is based on - the voluntary transaction. I'm a freedom freak: peace baby, the true sixties legacy, not those suited communists in the Greens Party whose every policy is the advocacy of force. Only on the voluntary transaction can there be a voluntary, free society. I said unfortunately because this has meant that while I'm comfortable, I'm not rich enough to build a space station. That's what I would do if I had money in real quantity. I'd build a space station and remove myself from the ugly, brute society we've created for ourselves, yet again. As generation text say, 'I'd be outa here'.
I'd just finished this piece and US analyst, John Mauldin's, weekly investment eletter has hit my in-tray, and it might have been a taylor made response to Chris (The Fist) Trotter's tantrum to Matt Nolan, expanding on the point made by Matt – again, it’s worth a longer quotation:
What I am bearish on, however, is governments gone wild with ever-increasing taxes and spending, and especially governments that take on too much debt. When governments decide to spend today more than they can collect in taxes; when they borrow ever-greater amounts to live a national lifestyle that is beyond their means, obliging our children to pay in the future for our spending today to maintain that lifestyle; we know that there will eventually be a day of reckoning.
That day comes when the debt is growing faster than the economy. The final Bang! moment happens when the total interest on the debt overwhelms the nominal growth of the economy.
When that happens, whether to a family, a company, or a nation, either spending must be slashed or taxes raised (which will hurt overall growth), or there will be a default. There comes a moment when investors start to worry more about the return of their capital than the return on their capital. Rates begin to creep upward and the process turns into an ever-tightening spiral of rising taxes and falling spending (which we currently call austerity), which hampers the growth of the nation and makes it ever more difficult to escape the debt trap.
In the course of human experience we have watched this process unfold literally hundreds of times, yet we never seem to learn. Somehow, we always manage to tell ourselves that this time is different. Someone else can pay more taxes. We can grow our way out of the problem, just like we did the last time. Or we settle for the desperate, cynical belief that future generations will sacrifice their lifestyles so that we can get paid our unfunded pensions and health care.
The most surprising fact to me was that the effective tax rate is negative for the middle quintile. According to the CBO data, this number was +14 percent in 1979 (when the data begin) and remained positive through 2007. It was negative 0.5 percent in 2008, and negative 5 percent in 2009. That is, the middle class, having long been a net contributor to the funding of government, is now a net recipient of government largess.
I recognize that part of this change is attributable to temporary measures to deal with the deep recession. But it is noteworthy nonetheless, as other deep recessions, such as that in 1982, did not produce a similar policy response.
You may not be aware, since you are too young to remember, that the expression "squeeze them till the pips squeak" goes back to Harold Wilson's Chancellor of the Exchequer, Denis Healey. I remember him saying it. At that time top tax rates were already in excess of 90p in the pound.
We began gently with an attempt, at my suggestion, to establish once and for all that Healey never came out with the quote that the Conservatives are still fond of digging up, namely that he wished 'to squeeze the rich until the pips squeak'.
'I never used it. I quoted something from the 1920s. That can happen. Jim Callaghan never said "crisis, what crisis?".' What the then shadow chancellor in fact said, at Labour's 1973 conference, was 'there are going to be howls of anguish from the 80,000 people who are rich enough to pay over 75 per cent on the last slice of their income'. The 'pips squeak' was originally used by First World War leader Lloyd George; Healey did quote fellow Labour Cabinet minister Tony Crosland, requoting it 'in reference to property speculators, not to the rich in general'.
Friday, July 13, 2012
Democracy: The Problem & New Symptom – Foetal Alcohol Syndrome.
Take the case of a social democracy that consists of just ten people: let's say four are black people, and the remaining six are white. This democracy decides to hold a plebiscite on the proposition that white people shouldn't have to work, as they have an entitlement to live off the efforts of black people, which they propose to do via the instigation of a special tax on the incomes of black people.Guess what? The proposition is won by six votes to four. A democratically made, majority decision has just taken away the liberty of black people, all in the name of the common good of the tyranny of the majority. Now, simply take away the emoting use of ‘black people’, and exchange that for ‘taxpayer’.
To me your question is a nice intellectual conceit for teenage undergraduates intoxicated at the first exposure to political philosophy and worrying themselves silly at the idea of the tyranny of the majority. So to me, If you have failed to advance from that first flush of giddy outrage to a deeper understanding of democracy that is your problem, and your loss, not mine.
It is the sort of absolutist question you often get from the intellectually immature - the rhetorical equivalent of a playground "nah nah nah so there." The great strength of democracy lies in its refusal to be weighed and measured, to provide a neat tick box solution for every problem, to excuse you from the bothersome and tiresome need for debate across numerous disciplines. Your question is nonsense, since it pre-supposes democracy is as rigid and nonsensical as your own philosophy. Democracy is a living, moving, warm blooded beast, when you yearn for a triumph of the taxidermist's art.
UPDATE 1
Just happened on a great quotation regarding the advantage a freedom stifling statism has in a democracy:
We must understand that there is an imbalance of power in the political system of any democracy in that the forces of statism have an innate advantage over the defenders of freedom. It takes but one legislative or administrative victory for statism to succeed in guiding society on an indelible path towards dependency. We cannot perpetuate the free-market, but we can perpetuate statism by creating inveterate dependency constituencies. Statism enjoys the inherent advantage of self-perpetuation through its own pernicious activities that engender a continued need for the government programs.
Thursday, July 12, 2012
Immigration: Cutting Off Our Noses Because The Law Says To.
Wednesday, July 11, 2012
Statism and Privacy: IE, You Have None. And Bossy Teenagers.
A major theme that readers will soon pick up in this blog is that civilisation is a movement toward privacy, the police state the reverse: that if you have no privacy, then you have no liberty. [Snip]. To carry out their program of theft, sorry, redistribution, the Left from the get-go had to destroy the privacy of every individual: for IRD to be able to take my earnings and my property, my privacy before state officials first had to be disposed of; it was a given from the time the first Left dictatorian decided it was better that they, not I, should decide what was to be done with my money, just like in every police state from history. [Snip] And don’t give me the Privacy Commission as a safeguard: a society only needs a Privacy Commission after it has first destroyed my privacy – it’s simply an admission of the crime already committed by the state, and the Commission is state run, so that’s no safeguard.
Staff at Immigration New Zealand are being accused of using a confidential client database "like a dating site", and of looking at information on wealthy applicants. [Snip] A former immigration staff member, who spoke to the Herald on condition of anonymity, said staff sometimes logged in to look at information on wealthy and interesting clients "just for fun".
Oscar nominated actress Keisha Castle-Hughes yesterday settled an acrimonious rental dispute by phone after she left a Tenancy Tribunal hearing upset.
The 22-year-old leased Roger McCracken's $1.4 million Mt Eden home with her friend Michael Graves for a year before moving out in November. Mr McCracken asked the tribunal for more than $5000, claiming damage to carpet throughout the house, fixtures and storage costs.
Early in the hearing adjudicator Amanda Elliott called for a 10 minute break after Castle-Hughes yelled "I go through f***ing hell", when told the matter would be reported.