I come from a land down under, as Men At Work sang but I am not sure I would wish to be counted as a citizen of that country. The politics of Australia have long been different but with the last twenty years or so they have devolved into the land of dumb and dumber as Labor and Conservatives compete to see who can come up with the most stupid politics. Now I realize that it took a while to finally get that problem with race resolved only to have another race problem crop up. Yes, a white continent in an ocean of Asians of most every kind. What would the Queen say? Not much, she has her own problems as merry old England is losing its white majority and possibly its English culture as the world once knew it. But I am not here to talk about problems of race and foreign populations and the trials and tribulations of integration. Eventually that will settle itself out, one way or another, without help from the UN, a most worthless institution that has its own corruption problems.
What I find scandalous is that in this world we really have only two real standards, behaviors of individuals and groups and economic activity. Politics tend to believe that it is the rule of the world and tends to consider its contributions to mankind in absence of all other human activities. My god, I was reading an individual who thinks that deliberation on the philosophy of Fascism is of importance. Is it really? Political theory doesn’t mean crap, to put it bluntly. My god, I have read a lot of political theories and most of them are concerned not with the reality of human behavior, both in groups and singularly but with this ideal that somehow it’s all about government structure and theory on how government is suppose to work. One of the ultimate fools was Marx who thought that his ideal of government would rise above the horry greed of capitalism and mankind would be guided in its relationships by the spirit of communism. Well, it the spirit of Christianity or Mohanadism doesn’t work, why should we trust to some politically pretty solution? Communism couldn’t make its own economic system work. It doesn’t take a genius to show that state economic planning, oligarchs, and all manner of government interference in economic activity does not work for long. How long did the USSR and its centrally planned economy last? Maybe eighty years and that was due to the military force that kept in it place. Look at Peron and Argentina, how long did that abortion last and how well has Argentina survived that legacy? Look at the socialist agendas in Europe and how long will they last. All that socialist government controlled economic activity is about to collapse in the next five years and I am being optimistic. Yes, I know, there are many who will say: But, but, but….and then it all collapses and no one learns from the failure. Yeah, tell me about it, that is the history of the world.
So what does this have to do with the land down under? Glad you asked. Labor was going to propose the legislation that would tax savings. You save money out of your paycheck, money you have already been taxed on and now some idiots in one political party seem to think it wise to tax everyone on their savings deposits. Of course the Abbott government now wants to wants to institute this tax policy come May. Tony Abbott, you blithering idiot and moran! Where do you thing the funds for investment come from? Oh, that’s write, corporations simply float a few bonds, issues a little more stock, the central banks does a little more quantitative easing and keeps rates near zero or below and all is well. My god, my grandmother has more sense than that and she’s been dead for forty years. Ah, but you live in the land of fiat money creation like most of the rest of the world and money just do magically appears. I mean, what point do you not understand that depositors provide funds for banks to invest in things like mortgages, auto loans, personal loans? Just where in the hell do you think much of the money that banks used to create investment comes from? Yes, there is the stockholder capital and the bonds issued by banks that borrow money at a set interest rate for a set duration of time. But if a bank is build on depositor funds, then how does taxing such funds encourage investment in the economy. I mean, if I have the choice of receiving very little interest on my savings and being taxed for even keeping it in the bank, what do you think I will do with my savings? I’ll put it under my mattress rather than give it to you, the government. Is that what you idiots want?
I suppose this might encourage the investment of savings in publicly traded stocks and bonds. But by doing so, you create an inflation for such investments. And if the publicly held corporations are over leveraged, if their earnings are decreasing, if their business models are less than successful, then what have you done to the middle class who normally would undertake such investments? The poor have a hard enough time paying the inflated price for their cigarettes and booze because you think they would be healthier not to smoke and drink so much. Thank you nanny state for your concern. But to kill your own middle class, what idiocy! Who are going to buy the washing machines and Apple iPhones. I don’t know too may rich people who buy half a dozed washing machines just because the economy needs to sell more of them. I mean, you already have a housing bubble that is starting to burst, you already have a great decline in raw material exports, you already have an increasingly higher unemployment rate, you already have a public whose personal debt levels are far to thigh, and now you want to tax savings? Who told you this was a good idea? You better take that man or men out the public square, blindfold them and then shoot them for being idiots. Frankly, if I were an Australian citizen I might start to believe that the only good politician is a dead one. I mean, the Germans and the rest of the EU are being excessively stupid when it comes to the Greeks and their problems. But this, my god, what are you thinking? And now you wish to join the AIIB? Tax, spend, and borrow, that’s the way to wealth and a healthy economy.