in commenting about cap and trade on my facebook the other day, i posed a simple question wondering what exactly the end result of such a program would be- carbon reduction or capital market bubble creation?
my friend mike replied:
"Cap and Trade is a good concept, but can it work in the real world? who decides the total carbon amount? Who is grandfathered in? It is an incentive to reduce your carbon usage through technology by increasing the monetary compensation. Carbon commodity trading!! Will the government or free market control it?"
monetary compensation as an incentive to modify behavior? like giving my kid an allowance to clean her room?
so i thought i'd have a little fun with this one... my commentary:
i hear what you're saying mike; i suppose there are two ways to accomplish compliance- incentive or penalty.
for instance, speeding and other laws are enforced through penalty. but if we were to follow the logic of modifying behavior through monetary compensation... how about simply paying drivers not to speed?
of course, this would never happen in our world because speed limits are designed for public safety, right?
actually, i'd argue we've allowed speeding to be turned into a municipal revenue generating monster!
so following the logic any good "small-government/free open market/damn the public good/get mine now" proponent would employ... we should be wondering why cities and states get all the money from speeding!?
ok, just for fun, lets dive into this speeding thing...
why not open it up, and create a "street and driving market"? just like cap and trade will issue the original "permits" to polluters for free, simply issue all drivers permits to go fast! maybe all drivers should be allowed "x" number of speeding credits (the mechanics of this are unimportant for the current discussion; lets just say every driver gets "some").
this way the people who don't want/need to speed- even though they now have the right to speed because of the way the system is set up- can sell/trade their permits to others who want/need to go fast. the market pays them not to speed!
in turn, the "speeders" are in essence "pre-paying" the ability to go faster than posted limits.
and the seller of the permit, having been paid not to speed, won't speed because they no longer have the permit to do so... right?
come on... who's to say they won't speed at sometime in the future? do they go back to the market and buy a permit when they need to speed? and if they speed without a permit, who's to say they will actually get caught and be made to pay a penalty! do we need more speed traps and gestapo-like policing? or do we just trust people to do the right thing?
lets go one step further, and put the middle-man in place here; the broker of speeding permits. this guy matches speeders and non-speeders... for a fee. ah... economic growth!
how about this one... permits to kill people! we already permit for fishing and hunting wild animals to control population and generate revenue, why not permit human murder?
now you're speeding (because you have a permit), get in a wreck and kill someone... ok, simply use your speeding and murder credits to get out of it!
or maybe you truly hate someone, or are just really pissed off... buy a permit to knock-em off!
maybe you don't have the stomach for killing, so you SELL your permit to a professional assassin and have them do the dirty work. and lets say professional assassins buy up a bunch of killing credits. now they can legally operate their business! ah... more economic growth!
simply make it legal and generate revenue from it, rather than having it be illegal, and a financial burden on tax payers paying for prisons?
i can see all kinds of ways to make money on this thing; now the market supports brokers who specialize in bundling groups of assassins for, i don't know... hire by governments? special, military contractors? oh wait, we already have this!
of course, this is all absurd (or is it?)
if you really stop to think about it, aren't some things just too important for the common welfare? isn't our human health/well being too precious to allow it to be compromised by "permiting" something harmful, especially through profit seeking activity?
just like speed limits, carbon and other pollution regulations are designed for public safety (health and environment).
we don't get paid to drive the speed limit... why should there be a monetary incentive to do the right thing with pollution?
because it cuts into profits?
you see where i'm going with this. free markets and unregulated capitalism have limits on their ability to benefit the common welfare.
at some point, they become counter productive, reckless, bubble making implosion machines. and this typically happens at the detriment of society as a whole while benefiting a very select few. in other words, something/someone suffers great inequality or destruction.
examples of this go on and on: extinction of species, depletion of resources, loss of human life/quality of life, and greater spreads between socioeconomic status.
the bottom line... just because something can become a market, doesn't necessarily mean it should become a market.
therefore we use penalties- financial and physical (fines, fees, tariffs, surcharges, taxes, incarceration... and even death) for keeping things in check.
now lets look at cap and trade again...
just because a polluter no longer has enough credits to pollute, how do we know they won't continue to pollute?
just look at how enron was able to cook the books with off-balance sheet accounting! someone, somewhere is going to figure out a way to skirt the system, keep the "real" measure of emissions off the books, and be able to pollute/profit.
maybe they get caught, maybe not.
IN THE MEAN TIME... "WE" (THE PEOPLE OF THE WORLD) SUFFER ENVIRONMENTAL DAMAGE INCLUDING HEALTH ISSUES... LEADING TO MEDICAL PROBLEMS... LEADING TO INCREASED MEDICAL COSTS... LEADING TO DENIAL OF CLAIMS... LEADING TO LOWER QUALITY OF LIFE... LEADING TO MEDICAL INSURANCE PROFITS... LEADING TO GREATER DIFFERENCES IN SOCIOECONOMIC STATUS... LEADING TO UNIMAGINABLE HUMAN SUFFERING, IMBALANCE AND INEQUALITY.
is this the world you want to live in?
lastly...
THE BIGGEST EMITTERS OF CARBON EMISSIONS ARE LOCAL, STATE AND FEDERAL GOVERNMENT INCLUDING THE MILITARY.
are these guys EXEMPT? or do they need carbon permits too? and if they have extra (print up a few more because they can!), should they be able to "sell" them on the open market?
if so, do these revenues REPLACE OR REDUCE some taxes, or become an additional "tax" on the people? or maybe the revenues are used to reduce the national debt or deficit?
or does this government activity in open markets actually aggravate the ability of markets to work freely, thus creating more of a bubble (just like fannie mae and freddie mac aggravated the housing bubble!)?
these are the tough questions and considerations we MUST address going forward in our global economy, global governance and global stewardship.
without dealing with these things, we are destined to repeat the failings every society from the beginning of time has eventually suffered... only worse, i fear.
all i know is cap and trade is a bad idea. anytime you put a for-profit motive above the common welfare, the welfare will suffer. period. peace.
Showing posts with label economy. Show all posts
Showing posts with label economy. Show all posts
Saturday, January 30, 2010
Monday, September 14, 2009
first cost vs. lifecycle cost analysis
so i get an email today from an old friend who passes along some thoughts composed by someone i can only imagine is a kool-aid drinking, right wing nut job. after reading it a couple times, i felt compelled to draft a rebuttal. see the below exchange:
Original email
>
> I guess I must be on the wrong page on this "clunker" stuff ...
> A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
> A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
> The average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
>
> They claim 700,000 vehicles – so that's 224 million gallons per year.
> That equates to a bit over 5 million barrels of oil.
> 5 million barrels of oil is about ¼ of one day's US consumption.
> 5 million barrels of oil costs about $350 million dollars at $75 per bbl.
> So, we all contributed to spending $3 billion...to save $350 million.
> Hmmm! How good a deal was that?
>
> I'm thinking that they will probably do a great job with health care though!
>
And now it's my turn
Great analysis. But like most conservative and short term (instant gratification) mentality, the author is missing the point.
Lets talk about "first costs" vs "lifecycle costs", and do the same analysis. The basic premise for this analysis says your investment in the first 20% of your "project" (whatever it happens to be) determines the overall costs of the lifetime (remaining 80%) of the project.
For instance, by planning and spending wisely when constructing a house, building or other structure (efficient windows, roofing material, earth contact, insulation, appliances, hvac, smart grid circuits, geothermal/ground source, solar/battery/inverter, proper geographic positioning, good use of landscaping and shade, rainwater recovery, etc., etc., etc.), the overall costs of ownership in terms of utility, maintenance and other "operational" expenses are greatly reduced. Additionally, the resale value isn't dependent on market bubbles for increased valuation, but is inherently built into the property. And note, we haven't even talked about the GLOBAL implications such as reduced energy consumption necessitating less energy production and thus lower carbon emissions.
This mindset looks at overall sustainability of an effort and it's impact far beyond today's bank account balance and any short-term gain.
OK, now lets look at the clunker program in the same light.
The average age of the car being traded in was +/-14 years (http://www.autoobserver.com/2009/07/cash-for-clunker-trades-show-59-percent-fuel-economy-boost-hyundai-says.html )
So lets say the new, more efficient vehicle is going to be on the road for 14 years (not necessarily with the same owner, but at least for that many years.)
Note that one 42gal gallon barrel of crude oil yields 19.5 gallons of gasoline (http://en.allexperts.com/q/Oil-Gas-3147/Gallon-gas.htm )
So 19.5/42 = 46% yield.
Next, 14 years of better mileage * 224 million gallons = 3,136,000,000 gallons saved.
3,136,000,000 is 46% of what number? 6,817,391,304 (barrels)
At $75 per barrel = $511,304,347,800
So we spent 3 billion to save 511 billion over 14 years? Seems pretty good to me!!!
AND WE HAVEN'T EVEN CONSIDERED THE ENVIRONMENTAL (LIFECYCLE) SAVINGS OF BURNING 3.136 BILLION LESS GALLONS IN TERMS OF CARBON EMISSIONS...
AND WE HAVEN'T EVEN CONSIDERED THE ENVIRONMENTAL (LIFECYCLE) SAVINGS OF NOT HAVING TO FIND, EXTRACT AND REFINE 6.817 BILLION BARRELS...
NOT TO MENTION THE BENEFITS OF REDUCING OUR DEPENDENCY ON SAUDI ARABIA/FOREIGN OIL WHICH "CONSERVATIVES" SAY THEY ARE ALL ABOUT DOING!!!!
Now lets say that the buyers of the 700,000 new vehicles only keep them 5 years, then sell to someone who is still driving a clunker. But first, lets concede that 30% of these are taken out of commission due to wrecks and/or other salvage. This still takes ANOTHER 490,000 CLUNKERS OFF THE ROAD in 5 years! And since those 700,000 buyers will most likely need a replacement vehicle, you know they are buying one that gets at least as good or better MPG. Do the math, and that saves a bunch more gallons, barrels, emissions, and dependency on foreign oil!!!
HERE'S THE POINT...
TYPICAL SHORT TERM, NARROW MINDED AND INSTANT GRATIFICATION AMERICAN THINKING WILL KEEP US IN THE STONE AGES.
STOP A MOMENT AND CONSIDER SOMETHING BEYOND YOUR OWN DOORSTEP, AND YOU MIGHT SEE THAT THERE'S A WHOLE WORLD OUT THERE THAT IS YOUR RESPONSIBILITY TO PASS ON (IN GOOD SHAPE!) TO THE NEXT GENERATION.
And as for the comment about healthcare... before anyone points fingers, you better take a look within as to WHY we are in the shape (physically) we're in. The concept of "healthcare" in the US is the biggest BS of the century! We need "well care" in terms of promoting nutrition, eating locally and in season, physical fitness, clean environment, lower consumption and pollution, and REAL education standards/values that enable sustainable, common sense living in terms of these considerations.
Get it?
Original email
>
> I guess I must be on the wrong page on this "clunker" stuff ...
> A vehicle at 15 mpg and 12,000 miles per year uses 800 gallons a year of gasoline.
> A vehicle at 25 mpg and 12,000 miles per year uses 480 gallons a year.
> The average clunker transaction will reduce US gasoline consumption by 320 gallons per year.
>
> They claim 700,000 vehicles – so that's 224 million gallons per year.
> That equates to a bit over 5 million barrels of oil.
> 5 million barrels of oil is about ¼ of one day's US consumption.
> 5 million barrels of oil costs about $350 million dollars at $75 per bbl.
> So, we all contributed to spending $3 billion...to save $350 million.
> Hmmm! How good a deal was that?
>
> I'm thinking that they will probably do a great job with health care though!
>
And now it's my turn
Great analysis. But like most conservative and short term (instant gratification) mentality, the author is missing the point.
Lets talk about "first costs" vs "lifecycle costs", and do the same analysis. The basic premise for this analysis says your investment in the first 20% of your "project" (whatever it happens to be) determines the overall costs of the lifetime (remaining 80%) of the project.
For instance, by planning and spending wisely when constructing a house, building or other structure (efficient windows, roofing material, earth contact, insulation, appliances, hvac, smart grid circuits, geothermal/ground source, solar/battery/inverter, proper geographic positioning, good use of landscaping and shade, rainwater recovery, etc., etc., etc.), the overall costs of ownership in terms of utility, maintenance and other "operational" expenses are greatly reduced. Additionally, the resale value isn't dependent on market bubbles for increased valuation, but is inherently built into the property. And note, we haven't even talked about the GLOBAL implications such as reduced energy consumption necessitating less energy production and thus lower carbon emissions.
This mindset looks at overall sustainability of an effort and it's impact far beyond today's bank account balance and any short-term gain.
OK, now lets look at the clunker program in the same light.
The average age of the car being traded in was +/-14 years (http://www.autoobserver.co
So lets say the new, more efficient vehicle is going to be on the road for 14 years (not necessarily with the same owner, but at least for that many years.)
Note that one 42gal gallon barrel of crude oil yields 19.5 gallons of gasoline (http://en.allexperts.com/q
So 19.5/42 = 46% yield.
Next, 14 years of better mileage * 224 million gallons = 3,136,000,000 gallons saved.
3,136,000,000 is 46% of what number? 6,817,391,304 (barrels)
At $75 per barrel = $511,304,347,800
So we spent 3 billion to save 511 billion over 14 years? Seems pretty good to me!!!
AND WE HAVEN'T EVEN CONSIDERED THE ENVIRONMENTAL (LIFECYCLE) SAVINGS OF BURNING 3.136 BILLION LESS GALLONS IN TERMS OF CARBON EMISSIONS...
AND WE HAVEN'T EVEN CONSIDERED THE ENVIRONMENTAL (LIFECYCLE) SAVINGS OF NOT HAVING TO FIND, EXTRACT AND REFINE 6.817 BILLION BARRELS...
NOT TO MENTION THE BENEFITS OF REDUCING OUR DEPENDENCY ON SAUDI ARABIA/FOREIGN OIL WHICH "CONSERVATIVES" SAY THEY ARE ALL ABOUT DOING!!!!
Now lets say that the buyers of the 700,000 new vehicles only keep them 5 years, then sell to someone who is still driving a clunker. But first, lets concede that 30% of these are taken out of commission due to wrecks and/or other salvage. This still takes ANOTHER 490,000 CLUNKERS OFF THE ROAD in 5 years! And since those 700,000 buyers will most likely need a replacement vehicle, you know they are buying one that gets at least as good or better MPG. Do the math, and that saves a bunch more gallons, barrels, emissions, and dependency on foreign oil!!!
HERE'S THE POINT...
TYPICAL SHORT TERM, NARROW MINDED AND INSTANT GRATIFICATION AMERICAN THINKING WILL KEEP US IN THE STONE AGES.
STOP A MOMENT AND CONSIDER SOMETHING BEYOND YOUR OWN DOORSTEP, AND YOU MIGHT SEE THAT THERE'S A WHOLE WORLD OUT THERE THAT IS YOUR RESPONSIBILITY TO PASS ON (IN GOOD SHAPE!) TO THE NEXT GENERATION.
And as for the comment about healthcare... before anyone points fingers, you better take a look within as to WHY we are in the shape (physically) we're in. The concept of "healthcare" in the US is the biggest BS of the century! We need "well care" in terms of promoting nutrition, eating locally and in season, physical fitness, clean environment, lower consumption and pollution, and REAL education standards/values that enable sustainable, common sense living in terms of these considerations.
Get it?
Thursday, April 16, 2009
shifting our thinking about economic concepts
What is an economy? By definition, good old Webster tells us it is the arrangement or mode of operation of something, specifically a system of interaction and exchange. It is also said to be the structure or conditions of economic life in a country, area, or period.
OK, then... in the strictest sense, an economy is the structure of exchange for a given environment.
In our world, when talking about "the economy", this exchange is most often assumed to be trading money for "something" like goods, services, experiences, whatever. In other words, commodities.
But an interesting thing happened to me the other day. I was participating with some friends in our sailing club's annual work day and as conversations occur, my friend John and I began to talk about... gasp... Facebook! He and I had connected online a few weeks before, but this was our first in-person meeting since.
The conversation progressed to discussion of the enormous, nearly biblical, availability of information online, how we access that information, and how we are able to apply what we've learned.
He shared with me a story of his friend that had been having muscle and dexterity problems in his hands. The ailment was causing him to loose the ability to do any number of common hand movements without significant pain and/or discomfort. None the least of which was the inability to properly hold a golf club! While I'll be the first to admit golf isn't my cup of tea, I have been known to knock a couple buckets of balls around the range from time to time. Nonetheless, I concede that golf for some is serious (Tiger). And not being able to play well, in anything we enjoy, is a bummer.
So John explained how, as a physician, he goes straight to google these days and plugs in some search parameters.
In this particular case, his search yielded an obscure medical journal from some Asian country that not only outlined the exact ailment he was dealing with, but gave it a name and discussed possible treatment protocols that have had good success rates.
John, armed with this info, selected a treatment for his “patient”, implemented the treatment, and awaited the results.
Here's the kicker... the treatment was not medicinal or surgical. It was procedural. It was exercise and technique! The treatment was simply to hold the club in a different manner. And it worked.
Let's look at what really happened here; two people interacted, exchanged information, and implemented actions to solve a problem.
This IS an economy! Money didn't change hands, but a common "need" was met; John realized his need to practice his trade and help a friend, and the friend realized relief for his ailment. Both were satisfied.
As I listened to this story, I instantly recognized a concept I’d been studying recently- the idea of a resource based economy. An economy not based on monetary gain or achievement, but on satisfying needs as necessary to promote a fulfilling existence.
On a small scale, this seems to work well. But in a global sense, could we ever move from a commodity/consumption/acquisition based economy to a resource based economy?
This is something that only time will tell. But it’s a concept that can work, ultimately, if we wean ourselves off concepts such as monetary gain, suppression of underdeveloped cultures, pillaging of natural resources and general wasteful consumption.
How’s that for something to think about!
OK, then... in the strictest sense, an economy is the structure of exchange for a given environment.
In our world, when talking about "the economy", this exchange is most often assumed to be trading money for "something" like goods, services, experiences, whatever. In other words, commodities.
But an interesting thing happened to me the other day. I was participating with some friends in our sailing club's annual work day and as conversations occur, my friend John and I began to talk about... gasp... Facebook! He and I had connected online a few weeks before, but this was our first in-person meeting since.
The conversation progressed to discussion of the enormous, nearly biblical, availability of information online, how we access that information, and how we are able to apply what we've learned.
He shared with me a story of his friend that had been having muscle and dexterity problems in his hands. The ailment was causing him to loose the ability to do any number of common hand movements without significant pain and/or discomfort. None the least of which was the inability to properly hold a golf club! While I'll be the first to admit golf isn't my cup of tea, I have been known to knock a couple buckets of balls around the range from time to time. Nonetheless, I concede that golf for some is serious (Tiger). And not being able to play well, in anything we enjoy, is a bummer.
So John explained how, as a physician, he goes straight to google these days and plugs in some search parameters.
In this particular case, his search yielded an obscure medical journal from some Asian country that not only outlined the exact ailment he was dealing with, but gave it a name and discussed possible treatment protocols that have had good success rates.
John, armed with this info, selected a treatment for his “patient”, implemented the treatment, and awaited the results.
Here's the kicker... the treatment was not medicinal or surgical. It was procedural. It was exercise and technique! The treatment was simply to hold the club in a different manner. And it worked.
Let's look at what really happened here; two people interacted, exchanged information, and implemented actions to solve a problem.
This IS an economy! Money didn't change hands, but a common "need" was met; John realized his need to practice his trade and help a friend, and the friend realized relief for his ailment. Both were satisfied.
As I listened to this story, I instantly recognized a concept I’d been studying recently- the idea of a resource based economy. An economy not based on monetary gain or achievement, but on satisfying needs as necessary to promote a fulfilling existence.
On a small scale, this seems to work well. But in a global sense, could we ever move from a commodity/consumption/acquisition based economy to a resource based economy?
This is something that only time will tell. But it’s a concept that can work, ultimately, if we wean ourselves off concepts such as monetary gain, suppression of underdeveloped cultures, pillaging of natural resources and general wasteful consumption.
How’s that for something to think about!
Sunday, March 22, 2009
has all common sense left the building?
It’s no secret that I have been intensely angered by the financial meltdown. Not because of the loss of "money" as it were (as if any of it even exists!), but for the culmination of intense greed and self-serving behavior perpetrated by PEOPLE entrusted with the public welfare (and I don't mean welfare in terms of a government hand out, I mean welfare as in the general public good). It is my intention to share my views- right or wrong- in an effort to spur MEANINGFUL conversation and hopefully a deeper, real understanding of what's happening, why it's happening, and not for determining who's to blame, but rather, determining who should/will take responsibility in making sure our government is returned to the people, and out of the hands of well-paid corporate lobbyists acting only in the interest of their employer's balance sheet.
To understand money, banking, investment, capital markets, and the notion of "earning something for nothing" simply by trading debt, we really need to have a handle on how "money" is crated and why we think it has value. A very good resource for this is, "The Ascent of Money", a PBS expose detailing the history of the monetary system and why control of it is so important to those in power (http://www.pbs.org/wnet/ascentofmoney/).
And before I go any further, I suggest one simple bit of advice to anyone reading this ... don't take my word for anything. Do your own research. Take time to look into our government (and I don't mean the presidency, I'm talking about the legislative branches- our representatives, and the judicial branch- our trusted, "unbiased" elders.), monetary system, the FED, Treasury/IRS, tax code (20 volumes, 16,000+ pages!!!), and every other cog in the machine which is ultimately "in charge" of our lives. Just remember, the only power any of these things have over us is that which we allow:
" When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
Think about these words. They are more important than just about any other concept in our country’s history.
Next, we need to have a good handle on the FED, (http://en.wikipedia.org/wiki/Federal_Reserve) and what that organization is all about. The fed is a quasi-public/private FOR PROFIT corporation that has been allowed to not only control the supply of money, but remove any safe guards such as the gold standard (http://en.wikipedia.org/wiki/Gold_standard)
Take a good, hard look at a document put out by the FED called Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion: www.rayservers.com/images/ModernMoneyMechanics.pdf
http://en.wikisource.org/wiki/Modern_Money_Mechanics
This is a detailed explanation of how money is created.
And if you don't think gold is more valuable than cash (Federal Reserve Notes), look at the rise in popularity of "cash for gold" businesses. Over the last couple years (the apex of the financial/capital market implosion), and most recently exhibited by infomercials and traveling trade-shows, there has been a significant increase in businesses setting up shop to aggregate "unwanted" gold and other precious hard goods. Of course they are willing to give you cash for it! Cash, is literally worthless, but you can't very easily buy groceries or gas with gold. So these businesses are more than happy to take your tangible items of worth, transfer "money" to your bank account, let you withdraw "federal reserve notes" from your bank, and go buy your consumables (gasoline and such). In the end, you have no "money" AND no gold. There is a reason people are trying to get their hands on as much of this stuff as possible.
Onward, lets discuss our legislative representative’s roll in all of this. Much of what is happening now can be traced back to the end of 2000 including the Omnibus spending bill passed by the 106th congress (REPUBLICAN MAJORITY) and forced down the throat of then lame-duck Bill Clinton: http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000
The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on December 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.
The companion bill (S.3283) was introduced in the Senate on December 15, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.
Another look at legislation from this REPUBLICAN MAJORITY congress is here: http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Financial_Services_Modernization_Act
Both of these repealed regulation originally designed to prevent financial monkey-business dating back to THE FIRST GREAT DEPRESSION! Regulation that was originally enacted to mitigate the risk of future depressions. The kind of oversight designed to prevent the exact type of CRAP we're dealing with now.
These bills are the genesis of the financial "engineering", wizardry and capital market manipulation that has allowed PEOPLE to take advantage of unregulated opportunities- specifically merging banking and insurance.
Be sure to take some time to look into Phil Gramm, the good-'ole-boy from Enron, um, I mean the great state of Bush, um, I mean Texas, (http://en.wikipedia.org/wiki/Phil_Gramm) and find out which lobbyists/corporations contributed most to his opinions. FYI, Gramm was one of five co-sponsors of the companion bill to the Commodity Futures Modernization Act of 2000[5]. One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.
OK, after all this, don't forget to take a look at the SEC, and their complete inability to function in the capacity for which it was intended. Think Bernie Madoff and Allen Stanford... and Enron... and Worldcom... and...on and on.
Lastly, look at where the MONEY actually went: banks. Goldman Sachs, Deutsche, Chase, Citigroup, Bank of America, etc, etc, etc. The recent consolidation of banking through bailouts has done nothing but bolster the DEBT, put more money in fewer people’s hands, and created a globally dominant economic force that if left unchecked, will drive further the divide between the haves and have-nots.
Now, some have suggested that the way to "fix" everything is to throw more money at it. Bailouts, tax breaks, whatever.
COME ON! "Buying" the perpetuation of a broken system is not the way to fix things.
And then trying to "fix" misallocated bailout funds by creating a new tax? A 90% tax on bonuses?
I don’t believe AIG made the right call in offering such extravagant retention, holiday and other bonuses, nor for their actually using bailout money to pay them, but this new tax is just as criminal!!! And unconstitutional.
How is taking away money going to do anything but hurt the PEOPLE who NEED it to support our monetary based society?
The fix isn’t to bailout and tax, but to foster a fundamental shift in socio-economic thinking. That greed isn’t good, and corporate profit isn’t the end-all, be-all of our existence.
And those who argue we might be heading towards socialism, bigger government, and other "dangerous" roads that will lead to the destruction of our society...
I say to you that our government has never been as big as it is when lobbyists push corporate agendas, constitutional rights are "suspended" or even stripped away, and more power is put in fewer people's hands specifically with judicial activism, no-bid contracts, and unilateral "secret" decisions that are made “for our own good”.
When we as a nation can allocate trillions of dollars and resources toward efforts in global domination of fossil fuel energy resources and suppression of autonomous societal development, but cannot find it within ourselves to protect, WITHOUT TRYING TO FIND A WAY TO MAKE A BUCK, endangered ecosystems, see that everyone on the planet has adequate food and clean water, and understand that over-consumption, pollution, burning heavy metals and EXCESSIVE carbon emissions are BAD, then there is something fundamentally wrong with our development and value system.
Just as important in all this is the fact that we as a society don't promote healthy living choices in terms of nutrition and exercise... unless we can make a buck at it.
Everyone worries about leaving too much debt to future generations. Well here's an eye opener... ALL MONEY IS DEBT! OUR GOVERNMENT BORROWS MONEY IT CAN NEVER REPAY... EVER.
THE SIMPLE FACT THAT INTEREST IS BEING CHARGED ON DEBT SOLIDIFIES THE FACT THAT THERE WILL NEVER BE ENOUGH "MONEY" TO EVER PAY BACK WHAT IS BORROWED.
HOW CAN YOU EVER PAY BACK MORE THAN WAS ORIGINALLY ISSUED?
Oh, I forgot... go back and read Modern Money Mechanics. Money (debt) that is issued miraculously becomes "more" money (and consequently more debt!), when it is lent with zero gold standard and a 10% reserve requirement.
BTW, our income taxes currently do not even provide enough revenue to our treasury to cover the INTEREST on the national debt! Do the math. Think about that for a minute.
If you want some real reading, real information... real forward thinking, study up on the concept of “resource based economy”- an information, technology and knowledge based intelligent society where the pursuit of financial gain is no longer the primary driver, but rather the development of a global economy without debt. You can’t have a debtless society when people rely on “money” and “interest” Go ahead, google it and see what you come up with.
I'm not saying there is no wealth building with this system... I'm saying that everything is wealth building. And it’s done without the need to put anyone else down to get there.
Utopia? No... just people acting in the best interest of everyone else. Each of us needs all of us, and all of us need each of us. What a concept.
You argue that a corporation is a living, breathing, independent, legal entity. We always hear of, “Washington” did this, and “AIG” did that, “the church” says this.
Here’s another eye-opener… these institutions/corporations are made up of groups of PEOPLE. People do and say things. People guide organizations and institutions. People are responsible.
I submit that corporations are nothing but RULES MADE UP BY PEOPLE. And if we made the rules, we can change them.
Best business practices, standard accounting principles, tax code… it all needs an enema!
We need to open our eyes, get weaned off our cool-aid drinking, war-mongering, terror and fear-instilling, NASCAR watching, lottery playing, “American Dream” believing, subsidy driven, celebrity obsessed, American Idol-Dancing With The Stars-Biggest Loser- MTV watching, got-to-have-it-now, consumption based, unaccountable, irresponsible, dumbed-down barely smarter than a second grader, blinders-on society and GET WITH THE PROGRAM.
This country was built on principles of no taxation without representation, religious freedom, uncorrupted leadership, all created equal, and the rights of life, liberty and pursuit of happiness.
It’s time to get pissed-off! We don’t have to take it. The “government”, the “corporation”, the “institution”… it’s all MAN MADE (and you too, gals!). Nothing happens without people doing something. We’d don’t have to take it, you know. It’s time to get pissed.
Peace.
To understand money, banking, investment, capital markets, and the notion of "earning something for nothing" simply by trading debt, we really need to have a handle on how "money" is crated and why we think it has value. A very good resource for this is, "The Ascent of Money", a PBS expose detailing the history of the monetary system and why control of it is so important to those in power (http://www.pbs.org/wnet/ascentofmoney/).
And before I go any further, I suggest one simple bit of advice to anyone reading this ... don't take my word for anything. Do your own research. Take time to look into our government (and I don't mean the presidency, I'm talking about the legislative branches- our representatives, and the judicial branch- our trusted, "unbiased" elders.), monetary system, the FED, Treasury/IRS, tax code (20 volumes, 16,000+ pages!!!), and every other cog in the machine which is ultimately "in charge" of our lives. Just remember, the only power any of these things have over us is that which we allow:
" When in the Course of human events, it becomes necessary for one people to dissolve the political bands which have connected them with another, and to assume among the powers of the earth, the separate and equal station to which the Laws of Nature and of Nature's God entitle them, a decent respect to the opinions of mankind requires that they should declare the causes which impel them to the separation.
We hold these truths to be self-evident, that all men are created equal, that they are endowed by their Creator with certain unalienable Rights, that among these are Life, Liberty and the pursuit of Happiness. --That to secure these rights, Governments are instituted among Men, deriving their just powers from the consent of the governed, --That whenever any Form of Government becomes destructive of these ends, it is the Right of the People to alter or to abolish it, and to institute new Government, laying its foundation on such principles and organizing its powers in such form, as to them shall seem most likely to effect their Safety and Happiness. Prudence, indeed, will dictate that Governments long established should not be changed for light and transient causes; and accordingly all experience hath shewn, that mankind are more disposed to suffer, while evils are sufferable, than to right themselves by abolishing the forms to which they are accustomed. But when a long train of abuses and usurpations, pursuing invariably the same Object evinces a design to reduce them under absolute Despotism, it is their right, it is their duty, to throw off such Government, and to provide new Guards for their future security."
Think about these words. They are more important than just about any other concept in our country’s history.
Next, we need to have a good handle on the FED, (http://en.wikipedia.org/wiki/Federal_Reserve) and what that organization is all about. The fed is a quasi-public/private FOR PROFIT corporation that has been allowed to not only control the supply of money, but remove any safe guards such as the gold standard (http://en.wikipedia.org/wiki/Gold_standard)
Take a good, hard look at a document put out by the FED called Modern Money Mechanics, A Workbook on Bank Reserves and Deposit Expansion: www.rayservers.com/images/ModernMoneyMechanics.pdf
http://en.wikisource.org/wiki/Modern_Money_Mechanics
This is a detailed explanation of how money is created.
And if you don't think gold is more valuable than cash (Federal Reserve Notes), look at the rise in popularity of "cash for gold" businesses. Over the last couple years (the apex of the financial/capital market implosion), and most recently exhibited by infomercials and traveling trade-shows, there has been a significant increase in businesses setting up shop to aggregate "unwanted" gold and other precious hard goods. Of course they are willing to give you cash for it! Cash, is literally worthless, but you can't very easily buy groceries or gas with gold. So these businesses are more than happy to take your tangible items of worth, transfer "money" to your bank account, let you withdraw "federal reserve notes" from your bank, and go buy your consumables (gasoline and such). In the end, you have no "money" AND no gold. There is a reason people are trying to get their hands on as much of this stuff as possible.
Onward, lets discuss our legislative representative’s roll in all of this. Much of what is happening now can be traced back to the end of 2000 including the Omnibus spending bill passed by the 106th congress (REPUBLICAN MAJORITY) and forced down the throat of then lame-duck Bill Clinton: http://en.wikipedia.org/wiki/Commodity_Futures_Modernization_Act_of_2000
The "Commodity Futures Modernization Act of 2000" (H.R. 5660) was introduced in the House on December 14, 2000 by Rep. Thomas W. Ewing (R-IL) and cosponsored by Rep. Thomas J. Bliley, Jr. (R-VA) Rep. Larry Combest (R-TX) Rep. John J. LaFalce (D-NY) Rep. Jim Leach (R-IA) and never debated in the House.
The companion bill (S.3283) was introduced in the Senate on December 15, 2000 (The last day before Christmas holiday) by Sen. Richard Lugar (R-IN) and cosponsored by Sen. Peter Fitzgerald (R-IL) Sen. Phil Gramm (R-TX) Sen. Chuck Hagel (R-NE) Sen. Thomas Harkin (D-IA) Sen. Tim Johnson (D-SD) and never debated in the Senate.
Another look at legislation from this REPUBLICAN MAJORITY congress is here: http://en.wikipedia.org/wiki/Gramm-Leach-Bliley_Financial_Services_Modernization_Act
Both of these repealed regulation originally designed to prevent financial monkey-business dating back to THE FIRST GREAT DEPRESSION! Regulation that was originally enacted to mitigate the risk of future depressions. The kind of oversight designed to prevent the exact type of CRAP we're dealing with now.
These bills are the genesis of the financial "engineering", wizardry and capital market manipulation that has allowed PEOPLE to take advantage of unregulated opportunities- specifically merging banking and insurance.
Be sure to take some time to look into Phil Gramm, the good-'ole-boy from Enron, um, I mean the great state of Bush, um, I mean Texas, (http://en.wikipedia.org/wiki/Phil_Gramm) and find out which lobbyists/corporations contributed most to his opinions. FYI, Gramm was one of five co-sponsors of the companion bill to the Commodity Futures Modernization Act of 2000[5]. One provision of the bill is often referred to as the "Enron loophole" because some critics blame the provision for permitting the Enron scandal to occur.
OK, after all this, don't forget to take a look at the SEC, and their complete inability to function in the capacity for which it was intended. Think Bernie Madoff and Allen Stanford... and Enron... and Worldcom... and...on and on.
Lastly, look at where the MONEY actually went: banks. Goldman Sachs, Deutsche, Chase, Citigroup, Bank of America, etc, etc, etc. The recent consolidation of banking through bailouts has done nothing but bolster the DEBT, put more money in fewer people’s hands, and created a globally dominant economic force that if left unchecked, will drive further the divide between the haves and have-nots.
Now, some have suggested that the way to "fix" everything is to throw more money at it. Bailouts, tax breaks, whatever.
COME ON! "Buying" the perpetuation of a broken system is not the way to fix things.
And then trying to "fix" misallocated bailout funds by creating a new tax? A 90% tax on bonuses?
I don’t believe AIG made the right call in offering such extravagant retention, holiday and other bonuses, nor for their actually using bailout money to pay them, but this new tax is just as criminal!!! And unconstitutional.
How is taking away money going to do anything but hurt the PEOPLE who NEED it to support our monetary based society?
The fix isn’t to bailout and tax, but to foster a fundamental shift in socio-economic thinking. That greed isn’t good, and corporate profit isn’t the end-all, be-all of our existence.
And those who argue we might be heading towards socialism, bigger government, and other "dangerous" roads that will lead to the destruction of our society...
I say to you that our government has never been as big as it is when lobbyists push corporate agendas, constitutional rights are "suspended" or even stripped away, and more power is put in fewer people's hands specifically with judicial activism, no-bid contracts, and unilateral "secret" decisions that are made “for our own good”.
When we as a nation can allocate trillions of dollars and resources toward efforts in global domination of fossil fuel energy resources and suppression of autonomous societal development, but cannot find it within ourselves to protect, WITHOUT TRYING TO FIND A WAY TO MAKE A BUCK, endangered ecosystems, see that everyone on the planet has adequate food and clean water, and understand that over-consumption, pollution, burning heavy metals and EXCESSIVE carbon emissions are BAD, then there is something fundamentally wrong with our development and value system.
Just as important in all this is the fact that we as a society don't promote healthy living choices in terms of nutrition and exercise... unless we can make a buck at it.
Everyone worries about leaving too much debt to future generations. Well here's an eye opener... ALL MONEY IS DEBT! OUR GOVERNMENT BORROWS MONEY IT CAN NEVER REPAY... EVER.
THE SIMPLE FACT THAT INTEREST IS BEING CHARGED ON DEBT SOLIDIFIES THE FACT THAT THERE WILL NEVER BE ENOUGH "MONEY" TO EVER PAY BACK WHAT IS BORROWED.
HOW CAN YOU EVER PAY BACK MORE THAN WAS ORIGINALLY ISSUED?
Oh, I forgot... go back and read Modern Money Mechanics. Money (debt) that is issued miraculously becomes "more" money (and consequently more debt!), when it is lent with zero gold standard and a 10% reserve requirement.
BTW, our income taxes currently do not even provide enough revenue to our treasury to cover the INTEREST on the national debt! Do the math. Think about that for a minute.
If you want some real reading, real information... real forward thinking, study up on the concept of “resource based economy”- an information, technology and knowledge based intelligent society where the pursuit of financial gain is no longer the primary driver, but rather the development of a global economy without debt. You can’t have a debtless society when people rely on “money” and “interest” Go ahead, google it and see what you come up with.
I'm not saying there is no wealth building with this system... I'm saying that everything is wealth building. And it’s done without the need to put anyone else down to get there.
Utopia? No... just people acting in the best interest of everyone else. Each of us needs all of us, and all of us need each of us. What a concept.
You argue that a corporation is a living, breathing, independent, legal entity. We always hear of, “Washington” did this, and “AIG” did that, “the church” says this.
Here’s another eye-opener… these institutions/corporations are made up of groups of PEOPLE. People do and say things. People guide organizations and institutions. People are responsible.
I submit that corporations are nothing but RULES MADE UP BY PEOPLE. And if we made the rules, we can change them.
Best business practices, standard accounting principles, tax code… it all needs an enema!
We need to open our eyes, get weaned off our cool-aid drinking, war-mongering, terror and fear-instilling, NASCAR watching, lottery playing, “American Dream” believing, subsidy driven, celebrity obsessed, American Idol-Dancing With The Stars-Biggest Loser- MTV watching, got-to-have-it-now, consumption based, unaccountable, irresponsible, dumbed-down barely smarter than a second grader, blinders-on society and GET WITH THE PROGRAM.
This country was built on principles of no taxation without representation, religious freedom, uncorrupted leadership, all created equal, and the rights of life, liberty and pursuit of happiness.
It’s time to get pissed-off! We don’t have to take it. The “government”, the “corporation”, the “institution”… it’s all MAN MADE (and you too, gals!). Nothing happens without people doing something. We’d don’t have to take it, you know. It’s time to get pissed.
Peace.
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