Friday, September 21, 2012

QE and the Promise of 2012

As the conjunction of 2012 heralds the ending of one baktun, a mathematical observation replicable in visible space a change is predicted.  The previous baktun of 394.26 years encompassed the glory of the Americas and the ascendency of man to the beginning of the space age.  The next baktun must continue the exploration of our visible universe and the Earth population must be stabilized at a size compatible with usable resources while preserving quality of life and employment.  If War burgeons, a descent into barbarism will be deserved and will occur.  We must plan for the future, not just let it happen to us. 

As the new Baktun approaches in December 2012 there are choices to be made.  September 2012 has brought to the world an outbreak of anger and the possibility of war on so many fronts the world would be devastated if they all occurred. 

Rioting Muslims blame the USA for the ugly production by a Coptic Christian Egyptian immigrant criminal who abuses our trust in freedom of speech.  He yelled 'FIRE' in a crowded theater and people have been trampled to death.  I think he should be deported to his native Egypt.  We don't need criminals like that here.  Netanyahu and Ahminjad are trading threats again.  Riots bloom in Lisbon over austerity measures 'needed' to address debt payments.  China and Japan disputing islands.  Hassles all over the world amid rising food prices again.

It is time to choose.

The cause of many of these disputes are historical of long time standing.  The insistence of Muslims that everyone abide by their code of conduct does not have the fresh breath of freedom.  Are they so insecure in their beliefs that they cannot weather criticism or even ridicule?  Are they afraid that an alternative world view will have credence?  If their beliefs are so strong then no alternative opinion would be noticed as a credible threat.  Instead, every possible infraction of their own code of conduct by outsiders, is responded to as if it were a mortal wound.  Muslims should have so much strength of belief that they are steadfast, no matter what is said.  They cannot control the world.  Nothing will allow Muslims to control the world and force all populations to say what they decree.  I would hope the peoples of the world are free of such barbarism.  That is the meaning of freedom of speech is that you will hear what you do not like but you must respect the right for it to be said above all else, lest you lose your freedom of speech also.

Controlling responses to ridicule and cultural differences is necessary in a civilized society that respects freedom of speech.  So if somebody makes a video you disagree with, make your own answering video.  Ridicule the religion of the maker, if you must.  That is how conflict is resolved.   I don't want the world to flame out over such intolerance and avarice fueled disagreements.

The shallowness of 'leaders' never fails to amaze.  QE will now be extended in an attempt to return the economy to bubble betting on real estate, which is falling flat due to actual lending standards in place, the paucity of jobs and a wariness on the part of investors.  Tech is the new moneymaker but our leaders cannot cut back on union construction worker demands.  Construction can no longer rule the economy.  The retreading of construction workers should be encouraged through the use of cut rate tuition.  The excess of workers in the construction industry must be recognized.     

Encouraging the trading of equities before any new businesses  upon which equities are based are created is even more bubble talk.  I think Dr. Bernanke is making a mistake in that he does not know that the economic succession must begin with the creation of a usable object, the trade or sale of the object, the investing profits back into the business to improve it, and the paying of an affordable wage for workers.  That is the process by which real equities in businesses that produce jobs are created.  No other way will suffice.  Anything else is bubble talk.  Think Apple!

In today's economy, the production of a very real IPhone is producing jobs.  The trading of derivatives produces no tangible object and produces no jobs but creates huge income for a few while tying up money.  In today's economy innovation of a new object will create jobs.  I think the mortgage backed securities should be banned, along with all the derivatives.  At least give them status in Vegas, where that kind of betting is encouraged. 

As for the government, why not fund innovation?  I remember the fifties, when the Russians orbited above us and suddenly the schools went all scientific and government backed research and development because of the cold war and the threat of attack from outer space.  We were the first to the moon and the space program created many jobs over decades.  I like the current meld of government and private enterprise development of off planet resources.  I believe that tangible assets are to be had in the form of mineral resources off planet.  We are like humans wading across the straits and looking towards Alaska and all to the South.   They did not turn back and nor should we.  This is an opportunity for investment in the future that would pay off for our descendents and the younger ones among us.  We must consider the future if there is to be one.