Showing posts with label Free trade. Show all posts
Showing posts with label Free trade. Show all posts

Sunday, July 24, 2016

Not God Damn Vietnam but God Bless Vietnam

Believing it is countering China and acting strong and bold Washington is attempting the old western approach of divide and conquer and has ended an arms embargo placed on Vietnam five decades ago. This is supposed to be a counter to China’s territorial ambitions but the reality is the same old search for markets and partners for western corporations, that is the reality, hiding it behind some mystical reasons, there, India and China have not gone to war as was anticipated by Western experts, instead they have strengthened relationships, just as Hanoi and Beijing will become stronger, Japan alone has the know how to defend itself, a coalition of Tokyo, Hanoi, Seoul, and Manila is enough to force Beijing to think strictly about trade without Washington, Donald Trump seems to understand that.

Forbes has an interesting headline, “Arming Vietnam: Ideology Takes A Backseat To Pragmatism In Obama’s Foreign Policy.” Pragmatic is a word that was invented to confuse people. The very definition of pragmatic suggests a situation that can never exists, it suggest taking action without thought, an impossibility, even wild beasts think and pass knowledge of how to survive the wild to their offspring. Webster’s dictionary defines pragmatic as “dealing with problems that exist in a specific situation in a reasonable and logical way instead of depending on ideas and theories,” as if you can take any action without an idea, the action one takes, even if covered up with words whose definitions contradict themselves, the action one takes shows their underlying ideas and theories about life, that is why they took that action.

Pragmatic is a word that is used to cover hypocrisy, that is how people who claim to be genetically superior, their lies are uncovered whenever they are tested, bankers gave themselves trillions of dollars in the name of pragmatism. They can steal trillions, and a poor man from the ghetto pushed to the limit he must steal a loaf of bread spends twenty years in jail. The one who stole a loaf of bread has been tested severely, the banker loses money and then steals, not willing to accept the reality that there are thousands of janitors who could do a better job and the market had decided they are dispensable, but their tools the likes of Presidents Obama and Bush, look at the reality in front of us, where ordered to use the word pragmatic.

According to Loren Thompson the author of the article in Forbes, “not only is Obama adding a partner to his strategy of containing Chinese expansion but he is helping create thousands of U.S jobs in the process”, totally ignoring the fact with all these trade deals, not one of them has anything to do with the free market, 51% of American workers make less than $31 000 a year and stock market is near record highs. What the elite and their minions refuse to acknowledge in public is that America has been what they consider pragmatic for over a long time, anybody willing to do business even if they are butchers has always been afforded the red carpet by Washington, just like London, Beijing, Beijing supported the Khmer Rouge of all people, Moscow, Washington has never been different when it comes to foreign policy.

But to be fair to Obama, he did give wise counsel to his audience in Vietnam, he can at least say he was pragmatic, true meaning intended, hypocritical, but, he gave a true view of the world as it is happening now with the technology available, at least he did not confuse jihadists with men of liberty.

The counsel that Obama gave to his audience in Hanoi was that “as a friend of Vietnam allow me to share my view, why I believe nations are more successful when universal rights are upheld. When there is freedom of expression and freedom of speech, and when people can share ideas and access the internet and social media without restriction, that fuels the innovation economies need to strive. That’s where new ideas happen, that’s how a Facebook starts. That’s how some of our greatest companies began, because somebody had a new idea that was different and they where able to share it.”

If the elite understands this fact, why does it undermine it at every turn, the only possible answer is because they willingly promote fascism in order for their profits to grow. Thus a company seeking profits will retrench workers in it’s home base and set up shop in a dictatorship. That dictatorship does not have to worry about liberty because they know the Western elite are there for them. It’s hardly a crime if a company sets up shop n another country because of expansion and no workers are laid of at home, it’s when labor is retrenched at home and production moves abroad, that undermines the concept of liberty everywhere. That dictatorship no longer needs people to be able to access the internet and social media, it merely needs cheap labor, the elite in that dictatorship and elite in the west are the winners, everybody else a loser, that is why 51% of Americans can not make more than $31 000 per year.

What Vietnam needs to understand that those 3 million Vietnamese who died in Vietnam war was only so that KFC, and McDonald open shop in Hanoi and Ho Chi Minh City, it had nothing to do about some concept of freedom and liberty, Rambo was killing and crying for McDonalds, well Rambo won, there is a McDonalds in Hanoi.

It will be sad if Vietnam does not understand that for people to strive and expand their minds, they must be allowed, Vietnam fared badly economically with communism, if they accept Washington’s remedy, fascism will only take them so far, look at America shaking, the elite swim in wine they can’t see. Liberty will carry not only Vietnam, but all of us to our full potential.

Friday, May 27, 2016

Africa must crawl to the IMF: reality of rejecting liberty

The commodity slump has affected the commodity dependent continent Africa badly. Antoinette Sayeh head of IMF Africa had this to say about the situation in Africa, “we project growth to be even slower this year, at about three percent, about half of what has been customary over the last decade, and barely above population growth. Indeed, both last year and this year, GDP per capita growth will be below one percent -- something that has not happened since the late 1990s.” The late 1990’s was the beginning of the last commodity bull market.

The Africa Economic Development Institute based has this to say about the current dilemma facing Africa, “If economic conditions continue towards its downward path, IMF projects that 48 developing nations would need an additional $138 billion in financing.” Paul Wallace and David Malingha Doya jointly wrote an article for Bloomberg aptly entitled “Africa Turns to IMF as Commodity Slump Exposes Poor Policy.”

This should be no surprise to anybody who understands economics, in an article written back in 2009 entitled “Think for Tomorrow”, it was written “One must not forget that capital is created by human beings, the basis of creating capital is knowledge. Capital is good for up cycles, but a society that follows the basic laws of knowledge will be fine when the commodity boom is finally over, if ever that happens, some are talking of a fifty-year boom.” If people are allowed to use their knowledge they will use it, liberty, the best system for any society.

Instead of freeing up the market in good times, African despots stole the money, from Angolan president gave his family lucrative monopolies, undermining the future of Angola, this corruption was occurring everywhere in Africa. Believing the good times would last forever this was common occurrence in Africa, they plundered the diamond fields in Eastern Zimbabwe. It was at that time when commodity prices where high that it was time to introduce more free markets, more justice, more liberty.

It is incredible that a continent that never forgets imperialism and colonialism, always talks about the people yet fails to acknowledge that the market is the people. What else can the market be? When you control the market you are controlling people. People are controlled so that they can be robbed blind, there is no other reason to control people. As we understand more about our existence we appreciate the concept of liberty even more. Liberty allows us to be what we desire, to use our talents as best as possible to contribute that little to our existence and our futures. There are ruins in Southern Africa that are 200 000 years old, making the pyramids a modern phenomenon, lack of liberty makes it impossible to honor those genes that built cities 200 000 years ago.

Liberty is about contributing to the full in ones chosen way, that is the only way to honor one’s genes, one’s complete history. That is the idea of being alive, to use the full information package of our genes without harming other people who need to also utilize the maximum information available to them thanks to their genes. We after all going to die, nobody’s time on earth should be robbed. Any meaningful reforms lead towards liberty and freeing people, in freeing the markets, it’s people who purchase goods from apples to 3D printers, as it is people, people must be given the choice in deciding what goods and services are available and who produces them, that is what a free market is, an impossibility under current fascist doctrines espoused by World Bank and IMF, and current global order in general, where the elite have access to vast rewards from corruption.

In the boom times Africa of course thought times would never end, the IMF and World Bank where viewed with the correct suspicion and Africa turned to China, but never pressed its advantage with China. The real reason why African leaders moved away from IMF is because they correctly rejected IMF reasoning, but instead of freeing up the market, they wanted to hold on to their access to corruption. Dealing with China offered that opportunity, China would pour in money to get access to raw materials, and African leaders remained with their corruption loopholes, a win for China and Chinese industry, a win for African leaders, a complete loss for the African people as time has proven. There is no need for I told you so, peoples lives are being wasted.

With high commodity prices, large Chinese investments, Africa should have demanded more for its agricultural sector, the little Africa has to spare in terms of agriculture should have tariff free access to the Chinese market, that is now including the African people. However, liberty in individual African countries is far more important.

If back in 2007 reality had sank in the minds of the African elite, Africa with this current slump would well be on its way towards using its own enormous resources for the benefit of Africans instead of giving its wealth for the West or China to utilize in their industry but unwilling to accept meat from Africa implying the black man is dirty, his food is dirty, clearly not friends. Yet the same people would love to “buy” land in Africa and create agriculture but will not buy same agricultural produce from a black man.


Experience has taught us that race is the major language, but there was wishful that race was usurped by humanity but that is far from the reality. Africa needs liberty for the African to survive, humans need liberty to avoid great misery. The old order of kleptocrats and gangsters has to be wiped out and Africa takes the road of liberty. Guaranteed if Africa takes the road of liberty the IMF would be borrowing money from Africa. 

Bhekuzulu Khumalo

Saturday, October 3, 2015

Kondratiev Wave, Knowledge, Free Markets, and Society

source: wikicommons

What is society? Dictionary.com gives an acceptable definition of society, “a highly structured system of human organization for large – scale community living that normally furnishes protection, continuity, security, and a national identity for its members: American society.” A society is basically a community. When talking about economics, we generally are talking about how a society organizes itself in order to produce and distribute goods and services.

A citizen is defined by the same dictionary as “a native or naturalized member of a state or nation who owes allegiance to its government and is entitled to its protection (distinguished from alien).” Societies are run by governments, and citizens owe their allegiance to that government and in return have privileges that are greater than non-citizen members of that society. Citizens it is assumed would all have equal rights and protections from the laws, otherwise other citizens owe greater allegiance to the government as it treats them better. Therefore by definition from the dictionary as citizens owe allegiance to a government, if citizens have greater rights than other citizens, those with the greater rights owe greater allegiance to the government.

As those with greater rights should in theory owe greater allegiance, it is with this reasoning that in times gone by they were expected to be in battle to protect the government and its ideals. That is why we had knights and samurai class the most privileged went to battle. When you see those being privileged by the government but sending mercenaries to battle whilst they enjoy greater privileges, be sure soon that society will be under pressure, the government must be run by con artists. An important part of being a citizen is the right to bear arms a privileged for knights and samurais in certain societies. In Zulu society every man was expected to be armed, everybody owed equal allegiance to the government and expected to protect it.

What is a citizen? What makes up members of a society? People are citizens and members of societies. A person can be understood and its most basic as an information package made up of particles like all other information packages. Particles being the most basic information package. The information package of a human being is such that if we took out say skin color, sex, human beings are basically all similar information packages. Religion, ideology, mental composure, sexual orientation are not physical attributes but mental. As the information packages are basically the same except for tiny differences, a society should not discriminate over one information package over another.

In reality, if we look at the genes of human beings, there is so little difference in the information package represented by genes, that a even if we include mental attributes the law should not treat any human being differently. This is why humans have been calling out for liberty, this is why even tyrants use liberty to defend their actions. Thus a Stalin would casually throw around the word liberty, defending liberty as he sent millions to the gulags. Liberty is merely the law treating everybody equally. This means that those with ability should be the ones to undertake a task. The law then has no right, and if it is a true society, the culture should not allow others to not take a similar task to fulfill their life’s because the State believes that it should protect some privileged members of that society.

An individual who is a citizen of a society should have same rights as all other citizens, that is all liberty is defended by science. It is defended by science because if we are all just information packages, which we are, then what right has a system to treat similar information packages differently. As information packages we should have the right to choose and our choices will reflect where we fit in society, if we culturally are allowed to make those choices. Then as information packages we fit into society because of what we are able to do.

There are those of course who claim to believe in liberty as well as having the state regulate our life’s more. They claim that too much rights for the individual is bad for the collective, or the society. The word collective has been used to understand that finally when they talk of collective they are merely meaning society, but those believing in the state just enjoy being fancy as they believe they are smarter, collective to them sounds smarter than saying society, there is some sort of mystery to collective.

Everybody is a member of this collective, there should never be a conflict between the individual and the collective. There is only a real conflict when the state favors others over others, thus creating an aristocracy, a word that has been replaced by the more accurate term of elite.

The free market merely says that anybody should be allowed to do without being protected by legislation, this has been called competition for us to understand, but it is not a competition as such, it is the highest form of collaboration as society decides how we must collaborate and who should contribute what in this collaboration. If you take it as a competition, well nobody likes to lose, one will end up cheating, and the best way to cheat is to get the government on your side.

What then is competition. The best way to answer this is to take a homogeneous society. Everybody is of the same race, ethnicity, and cultural norms.

There are many ways to argue about the best way to undertake an activity, or the best way to do something. A society can have great debates about this best way, this best method, best quality, affordable quality, but who is to answer these questions, a committee, talk about elitism, or all of us, those who want to be involved in answering the question. Liberty would say all of us. Liberty is a far deeper concept than merely voting for a government, liberty is about the package of rights that each individual has. True, all of us should determine who controls the government, as again all of us should decide what is art, goods, services, culture in general, mode of living to talk as an economist.

As we all have the right to answer societies questions in a society that believes in liberty, who ever wants to answer must be allowed to answer the questions.

How does society decide the best t – shirt for example. Well we choose the answer by purchasing the t-shirts. Anybody can buy the t-shirts if they decide so, or have enough desire for the t-shirt. There should never be a law saying some people have no right to buy those t-shirts if they are citizens, anybody has the right to buy those t-shirts that is liberty. This might seem like a trivial point to make because who has ever heard of people not being allowed to buy a t-shirt. But this point is important to understand liberty.

What is the best method to make a t-shirt, what is the best organizational method is the best way to make a t-shirt? What is the best quality of t-shirt to make? Well if anybody is allowed to buy t-shirts, then anybody should be allowed to make those t-shirts. Imagine the injustice that sure, everybody can buy the product, but only a favored few can offer that product?

The t-shirts that are bought answer the question what is the best t-shirt to make for society. The t-shirt style that sells the most determines the popular culture for t-shirts. It is popular culture because it is the most common t-shirt. Outside popular culture you will have t-shirts considered to be inferior, they will be for those few who can not afford popular culture, the povo – culture, povo from the word poverty. There will also be t-shirts considered of a superior quality to t-shirts of popular culture, they would be pricey and considered elitist culture t –shirts.

The best t-shirts for society are those that sell the most. In todays world a car like a Toyota Corolla is a far better car than a Rolls Royce. But for the top 1 000 000 wealthiest of the world, a Rolls Royce is a far better car than a Corolla, elitist and popular culture differences. It is good however to understand popular culture for what it is. A smart phone is part of popular culture for the wealthiest of societies, but they are part of elitist culture in the poorest of societies. Popular culture is determined by gross domestic product, gdp, as well as income distribution. The greater the liberty the higher the gdp, the higher the income distribution.

Of course the people who believe in the statism, and that they should control as they are smarter will say that gdp is not a good measure of anything, they will talk about some concept like quality of life, variables like literacy rates, doctors per thousand people, hospital beds, television sets, access to high speed internet, other such variables. Most of these variables, if not all are largely determined by income levels of a society, these smart people do not understand gdp, let alone liberty. Liberty will then determine the level of income distribution, and here of course the smart people will rise up, but are they sure their examples of income distribution prove the free market wrong, or do they prove the existence of an oligarchy, the answer can not be both.

Having thought out the unfairness of not being allowed to sell your t-shirt, or how unfair it would be for some villagers not to be allowed to bring their bananas to market. These are revolting things, the principle behind that revolting feeling goes up all the way to the most sophisticated of business organizations. Who gets casino licenses, if casinos are so vile nobody should be allowed to own one, why should they alone have the right to dirty their souls. If the banana villagers are allowed to go broke because of poor harvesting techniques, or by the simple fact that no matter how hard they worked, their efforts are in vain because of lack of rain, they go broke because of lack of rain.

As the banana sellers are allowed to go broke, how more vital is it for the vibrancy of society if banks are allowed to go broke, otherwise a massive robbery has taken place. If you are allowed to be inefficient and you supposedly control the economy, you are so vital to everybody’s existence, but you can’t go broke and must be prodded up, liberty is in reality dead and must have been dead for a very long time but was exposed by the Hurricane of a steep economic downturn.

We have talked of a homogeneous society because humans have great difficulty in realizing that they are similar information packages, information should be differentiated somehow all the way to the simplest information packages that exist. Now as humans have great difficulty in realizing this simple fact of similarities being greater than differences they take events as competition and brutalize information that they consider is different. These tiny differences have enforced a zero sum game and the destruction and wars we see around us, the cultural segregation, once it is cultural in reality it might as well be in the statute books. Culture is a mental concept not a physical concept.

Society was defined earlier on as “a highly structured system of human organization for large – scale community living that normally furnishes protection, continuity, security, and a national identity for its members: American society.” Society are those you owe allegiance to, they have given you continuity, security, and allowed you to be what you are. If you are oppressed, you are not part of that society even if statute books say so. If you have less rights, you are not an equal citizen.

Enter the Kondratiev Wave

If a society for example has allowed you to nurture an organization for the pursuit of profit, a business, and you identify with that society, then by reality you should protect that society first, your base before protecting another society. Protection is more than just guns, warplanes, it also must include jobs, security is a deep concept. Jobs, non discrimination, the right to do, this is all part of security. Once you discriminate you have introduced insecurity. Discrimination is a far deeper concept than just colour, discrimination also includes who owns a casino, who gets bailouts, who gets to own a gun, these are all concepts of discrimination. When they are official that is absolute, culture can be changed over time if people just look at evidence. It is just that race and sex are different as they are based on physical discrimination.

We all belong to a society, one way or another. It is important to recall the different class of t-shirts, the different class of goods and services, goods can be defined as elitist, popular or povo. In societies with heavy government involvement, meaning there is a powerful elite, power is always political, it is who finally has the ability to control the standing military structures of a country. In such societies an economist will be considered successful if they can appeal to the elite, but why the elite? It is the elite and those who operate their offices who will have the time to read economics. Those of popular culture will generally not have the time to read detailed economic theory, it is exhausting. Those of povo goods already understand things are amiss and waiting for the results to fall on popular culture, then they will have large numbers. The povo class most accepts government intervention as they see no way across the discrimination barriers.

There are economists for the elite, and economists for the underground who talk of liberty and others talking of killing the elite and having a new social order whereby government is in total control believing naively that is what a government for the people is. The underground always has two distinct battles, those who want to reform the government and reduce the power of the government. Reducing power of the sate in any form means that power has to go somewhere, it goes to the members of societies. The other group wants to usurp the state but the state remains with its power or they increase it more, concentrating power with those controlling the armed forces. But for economics to work properly we need to look at society objectively.

One man who could do this was Nikolai Kondratiev. The Kondratiev Wave needs to be more than glanced to call oneself somebody who understands economics. The Kondratiev wave and its implications are so clear that men who believed in total control of the state could not allow the man who thought of it to enjoy life and pursue his happiness, they had him shot.

Sadly what is called mainstream economics, the stream of those putting forward the way for economics is so small, that one would actually believe that is what the entire population wants, no, it is no more than 5 000 000 people globally, and of those who have understanding of liberty or even truly acknowledge it will not be more than 100 000, no way near what they think of themselves in numbers, and sadly this small group is completely run by those who believe in the state as that is where the funding ultimately comes from. A banker’s private foundation is only the result of government intervention. They do not understand the implications of the Kondratiev wave, because if they did they are absolutely evil.

Economics can completely be explained by knowledge and information. This is the beauty of knowledge, knowledge being information that has been revealed to us by our disciplined look into the laws of the material. Information is the only standard across all disciplines. All disciplines desire to know information and turn it into knowledge.

Nikolai Kondrtaiev realized that progress of economies can be described in waves. Crucial enough innovations, crucial enough laws of information, laws of the material being discovered will lead to a new economic phase, leading to enough change in the mode of existence for a new wave of economic growth to takes place in society. The crucial word here is society.

Kondratiev noticed that the age mechanization brought about waves of new growth and that is what the ages was about. The waves lasted around 60 years. The waves only lasted 60 years because we had developed enough to see them. Before the crucial enough knowledge to create industrialization the same phenomenon was lasting minimum a century and the spurts in economic growth where not vast because there was not enough knowledge for industrialization.

What is accepted by those who read about Kondratiev waves is that new knowledge growth, greater innovation leads to a change in kondratiev waves. By its name a Kondratiev wave is talking about society. To the horror of the Communists around the world this meant that whatever system they where fighting they where fighting it the wrong way, as whatever they where fighting, and they named it capitalism as their primary opponent. Capitalism being the ownership and exploitation of private property. Nobody has a permanent place, everybody is a rent payer, in the case of the communists everybody is a rent payer to the state as nobody owns anything. Understanding rent helps one to understand communists in another way. This capitalism that they where fighting will always resurrect itself because to compete they had to be innovative. How can a society of landowners exist when they do not have to pay rent and the most exploited are always paying rent?

The capitalism invented itself by allowing anybody to be allowed to own property. Aristocrats allowed this and allowed themselves and the state to make available land, adapting for survival. Obviously the elite would wish to collect rent from the whole world. But smart elitist allow private property and allow a man to call his home his castle.

Even if Kondratiev shouted from the top of his voice that he really is a communist, the discovery of the Kondrateiv wave means he cannot ever be trusted to fully believe in the state, it was better to shoot him. It is like racists will never believe a black that discovers that any human is superior to another even if he shouts at the top of his voice that the imperialist is superior, they will never believe it, it would then be a waste of time to even say imperialism is superior. That Kondratiev waves exist what further insights can they give us.

We can say a Kondrative wave lasts 60 years, that is four to five generations depending on medical technology. Let us take the implication of the Kondratiev waves further than merely scaring Stalin and international socialism, but to warn of the actions about the current global elitist economic thinking. The thinking of course is to completely care about their wealth over and above society and the Kondratiev waves proves that.

Each generation is conceived by the generation before and that generation depends on the foundations built on by the previous generation. That is how society operates. Even if you have the wealthiest society, that is how society operates, generation to generation. Now what happens if the wave is interfered with before the next generations are ready. If that happens the next generations have been cheated, as the generations before did not act as a society and used the name of the free market to defend this betrayal, it had nothing to do with free trade or society.

The free market is about society, trade in a free market means that a society if it is free can trade with any other society. Remember the free market is the best way to organize a society. It does not matter what another society is doing, it is about societies. The free market says for society to reach its optimum individual rights must be protected as well as the incredible concept of equality before the law. Everybody has the same rights and protections from the law, including the State. If the state can have arms, so can individuals, every body has equal rights. It is about a society.

When the Kondtratiev wave is disrupted it means that the generations can not adapt fully to the next stage. Moving industry from the West for example to cheaper areas has enormously disrupted the Kondrateiv wave. The cycle is complete when old industries die naturally in the society that they where born in. The society must naturally outgrow the wave that has already started. When Ford moves a plant to Mexico it is extremely disruptive to the American society. The society worked to getting those higher wages. The wages are higher because the rent is higher, food prices are higher, the standard of living is higher built on a generation at a time. The next wave they say should include a high proportion of very technological industries as well as beginnings of space exploration. Is the population ready.
The vast majority will not be ready because high paying jobs where lost at a whim by those claiming to be the same society. What is society, providing security for each other, security as explained above is more than a military, it includes standard of living, quality of life, being ready for the next phase of the economic wave, of the Kondratiev wave. What then is the point of freeing the individual if when it comes to clear choices, they will choose to put society into insecurity by moving a plant that was paying good wages in the society that made it possible, to a society that could never make it possible with its socio political structures that demonize the individual openly.

This insecurity of course will lead to real danger as it is in these times that demagogues rise. The demagogue promises security, they will provide the security for you. With more and more people supporting a possible military coup in countries like the USA, misunderstanding the individuals are part of societies has caused massive tensions. It is a misunderstanding of how communities operate and that individual rights, and that individuals are given powers that in intolerant societies would belong to the state for a reason, that we all understand we are part of society and the best must produce because we want the best. When the best having being nurtured by the society pack up and leave, are they part of that society when they complain fellow citizens who accept the best must produce for them are suddenly told by the best they are asking too much, you will end up with an uprising.

A kondratiev wave is over when firms start going bankrupt as new industries, as firms for a new industry rise. This would be natural through the process of competition, domestically and internationally. If international firms are better then so be it, be that better include lower wages. But the international competition must come from firms born in different societies. Cheap labor without capital transfers from one society like when a plant moves from one society to another is incredibly useless. That society will have no choice but to introduce great liberty. By introducing liberty capital will be created domestically, international capital will only be in the most liquid form of capital, credit. Transfers of other forms can only ever be fair if labor also has the same mobility.

We have to be mature. We are talking of industries and jobs that can exist domestically. If an oilfield is in another society and they do not have the capability to extract that oil, or copper efficiently, a domestic company can send capital overseas, but it should not be allowed to send labor unless labor from that society can come in, unless the two societies sign open borders and residency between the societies.

Think about it, if capital had not shifted in search of cheap labor, would countries that have recently industrialized have had that ability to industrialize. They would not have had that ability because of the political structures that follow a rigid hierarchy. When society is organized in such a rigid manner whereby everybody knows their place there is not enough liberty to create real capital. This is cheated by introducing enough liberty that allows capital transfer from a capital intensive society like the USA, and Western Europe including Japan and Canada. Therefore when a plant transfers from a country with greater liberties and thus able to create capital to a country that is run with what some call tyranny and could never create capital under a tyrannical system, they have actually cheated, but, those cheated more are the ones who accepted greater individual rights as it is good for society. It is the best way to organize society.

What they have built is disrupted. Once great importers off immigrants, now hating immigrants because societies have now become more elitist, a government run for a few but demanding allegiances from many. The evidence of this are the trade deals. Trade deals that disrupt the Kondratiev wave, thus liberty fails to be seen as a necessity, a point of view that will end badly, as intellectuals for the elite have said liberty can be cheated as long as their sponsors competition of who is the richest man in the world is promoted as a symbol of freedom.

The Kondratiev wave is one of the greatest discoveries in economic thought. It needs greater intellectual investigation, it is more than just proof of the free markets ability to re invent itself, it also gives dire warnings against fighting the principles of knowledge, of fighting liberty. Having disrupted the Kondratiev wave, capitalism even in the form of fascism will reinvent itself. But large segments of the population will not be able to adapt to the knew Kondratiev wave, they will be left out, they will sleep hungry, many will try to organize themselves to resist the insecurity.

What you have just read is in no way against development, this article is for liberty and generations benefiting from their inheritance from the generation before. It encourages global free trade with zero tariffs, but countries must accept the prize to participate is liberty, free the mind so that it can innovate and find ways to use the societies resource in the best way. Paying the right price, introducing liberty means no other society is destroyed for another society. Tyrannical societies should not be allowed to benefit by receiving capital from countries with less tyranny and the cost of the next generations of those countries with more liberty. The tyrannical societies should reduce their tyranny. 

If the Kondratiev wave was not so important Stalin would not have shot Nikolai. What must be taken from here is that economics is about individuals and society. Free markets is about allowing the freedom of the individual be greatest for the good of society. Those claiming that the individual and society are at odds have never bothered to try to understand the free market. The free market includes zero tariffs, but not the transfer of capital without the same rights of private property, and free movement of labour. This world is not one world at this moment, there are many societies. One world can only be culturally accepted through the process of a free market, through liberty.

Bhekuzulu Khumalo


 

Thursday, September 16, 2010

American Poverty Rate Rises: Time for Knowledge Economics

Today must be a sobering day in the USA, and indeed in the global economic system, though not at an all time high in terms of percentages, American Poverty rates have soared. According to CNN in number terms, 43.6 million Americans are in poverty the highest number in 51 years of record keeping. As usual it is the Southern ex slave states that have the highest rate of poverty, thinking one is entitled to have somebody do things for you is never a great way to create wealth it just leaves one believing their entitled to the mind of those they see as their slaves as those must remain poor in order to satisfy their theories, however this is not the point of this article.

It is time to realize that America can not save the world, in an economic sense, or any sense for that matter, America could never save the world. It sure is nice when one hears that South Africa is going to the UN at some debate at the UN between September 23 to 30, will demand changes at the UN and the Minister International Relations and Co-operation Minister Maite Nkoana-Mashabane will make a case for “"We are calling for free trade, acceleration of the conclusion of the Doha (Development) Round. "We are calling for market access for African goods and services to the developed world."We are also calling for gradual, if not total, removal of agricultural subsidies from the developed world that makes it difficult for smaller countries' products to enter the developed markets," she said.”

This is great for grand standing however, why can she not call for free trade acceleration within the African context, why does she believe the West can save Africa or if the West has any desire to save Africa. The West wishes Africa was still a colony, why should they help Africa or Africans move one step forward, Newt Gingrich a popular American politician says the problem with Obama is that he is anti colonial, "Newt Gingrich has unleashed some of his most explosive language yet against Barack Obama, telling National Review Online that a "Kenyan, anti-colonial" mindset governs the president's actions, which he blasted as "authentically dishonest" and "factually insane."(Politics daily). Therefore to be accepted by a Westerner one must be pro colonial, one must accept the colonial philosophy that blacks are inferior to whites and that whites have a claim on everything black from cheap labor to black thoughts, how then does an African minister ask for anything from such, it is a sign of incredible immaturity from Maite Nkoana-Mashabane, somebody who hates you can not help you move forward. And when there is increasing poverty in their own society they will be less inclined to think of helping you, note to think of because a Westerner has never ever helped Africa or an African move forward in a genuine manner, the Westerner wants something s newt Gingrich has said, you must believe in colonialism for them to help you, you must let them exploit you for them to help you, Jacob Zuma’s minister is proving to be incredibly self deluding, Western whites will agitate until colonialism in some form is brought back, a state like Sierra Leone where now the British practically run the country, they where invited to because the blacks failed, not realizing their failures where a constant agitation by the West.

With the rising poverty levels in America, and I have been warning this on this blog for a long time, a new permanent underclass has sprung in America, this can only be stopped by stopping the export of jobs, but nobody will say this because both parties are controlled by the money elite who want to sell goods more cheaply and hence export jobs to Mexico, Thailand, etc. The idea of a free market is that we exchange useful knowledge, useful knowledge includes goods made, if one can not make goods then they should learn to create useful products, honestly if not then we will get a global disaster because people would have put money over and above people, it can not work, countries should not seek to be a source of cheap labor, but should seek to produce products, this greed fortunately has cost the west the world, the world is to be shared by all who inhabit it, true a very anti colonial sentiment because the west as Newt Gingrich has pointed out clearly wants the whole world to bow to them why, nobody knows what is going on in such a pathetic savage mind, he is a direct descendant of the savages that committed the worst genocide in history, wiping out the native Americans, such a mind can not be your equal partner, it has too much hate and loathing.

My greatest advise is countries each and every society should respect knowledge, use knowledge to produce goods and services, goods that can be used locally. President Jacob Zuma, you can not demand free trade from the world, where goods compete with each other in terms of price and quality whilst at home you do not demand free trade. Have free trade at home first, let people compete at home first, stop trying to use West as a crutch, they have already told you they hate you, and will do anything to create colonialism in one form or another, let the free market operate at home before demanding it on a global context, can any south African have a telecommunications company, can any South African open a bank, Can any South African have a cell phone license, if not do not demand it from the world. Simple.
Corporate greed has cost the USA as a society, those high poverty levels are easy to diagnose, exporting jobs, that is not trade, trade is selling a surplus, wake up, been fooled by those neo con economists they are just plain evil, trade is selling a surplus and buying what you do not have cheaper, moving production to another country is just plain greed, because it is not one world, American corporate greed has cost the world.

Bhekuzulu khumalo

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Bhekuzulu Khumalo

I write about knowledge economics, information, liberty, and freedom