Oil has not yet hit the $200 as was once predicted by some Goldman Sachs analyst some time ago. In fact that particular bank has changed its view dramatically, the Chairman, Lloyd Blankfien in a positive mood recently said that the "lower price of oil one should think of like a tax cut." This is from a practical man quick to accept new trends in the financial market forgetting the old trends.
Oil hangs close to the $50 mark without OPEC having taken any action, how some credit or blame this out of date cartel is difficult to comprehend. Oil has come down swiftly because either non OPEC countries are producing more or global demand is down or a mixture of both factors this would be a correct view. There is another factor that some might miss, the factor of speculation. When the Federal Reserve ended its quantitative easing at end of October a lot of speculative money was taken out of the global financial markets, with less money to prop up prices the market has returned to where it would have been without large central banks printing money.
With the end of what the Fed would consider extraordinary methhods, and market slowly returning to position it would have taken without extraordinary measures, in the case of oil those who had been bothered by these policies can rightly say we told you saw, but gloating about peoples life's is distasteful, the whole world is negatively affected by delays in the call for structural reforms towards more free policies. Nobody has the right to demand from government laws to protect themselves from competition or a government to print money for their benefit. The system as we know it was not saved by quantitative easing.
2015 one can say with confidence will be the year more and more around the world will demand greater rights and respect for the individual, contrary to common belief free individuals willingly create the strongest societies, they are loyal beyond the bonds of money for they have the right and acceptance to make money, they can see as a society beyond what anybody is accepted to do. People will finally realize that government action mostly benefits an elite, that is serfdom, corporations being another form of fiefdoms. Those who believe in true freedom are merely saying look with greater realization freedom creates most sustainable societies, why are those that clearly are benefitting from being allowed wanting to slow down society by getting the government to protect them.
Of course when Goldman Sachs predicted a price of $200 a barrel for oil it was just months before Lehman brothers filed for bankruptcy. The trillions globally spent on bank bailouts have not changed the reality that at the core of this global economic malaise is the need not so much for austerity but for freeing the individual. Society is made up of individuals, a free society has no need to discourage those who can do better, that is always done for ideological reasons and money is at the root of this ideology, keep the other group poor always by foul means. That zero sum mentality will be challenged. Freeing up the individual will mean each and every society will contribute to the advancement of human society, what is advancement but letting the mind focus on a task.
Once again, the global economy is not in good shape. The likes of China must understand that, possible catastrophe could be triggered if individuals are not given more rights to participate in the economy, it is not the printing of money that will pull us from the edge of the abyss but freeing up of the individual. The bad choices Russia has made have led to the present crises with the Ruble being heart of that crises, why is Russia treating itself like Saudi Arabia. Russia today would be far stronger with a more free market, like everyone else Russia's elite at anytime have always feared relinquishing power to the ordinary citizen, surely now they begin to see their folly.
Africa will continue to be mocked if they refuse to give freedom a chance. Being powerless in many instances African countries domestic policy is determined by the donors. They must comply or risk shrinking budgets, or agitation to place some government that will comply to donors. Only freeing the individual will free Africa from being overly influenced by social engineers demanding this and that yet plight of the common African remain the same. The stronger the common man is, the stronger the elite, that's what Africa fails to see in most instances because the leaders are too selfish creating weak societies, economically and militarily, blind to reality as they reside in luxury palaces they have not earned, if they had earned them African people would not be so poor.
Oil price at below $50 surely we must admit the government monetary stimulation is a failure, as many economists said. Bank bailouts and quantitative easing just promoted a trickle down theory that has no place in economics, at least with fiscally policy money starts of with working people, and then enters the banking system. Honestly why would someone print trillions of dollars going directly to less than 100 people to control, there are not very many too big to fail institutions.
This kind of weakness is more proof of end of export driven development. It was always a shaky model, fine when it was the West and Japan, tricky when including over 1 billion Chinese and Indians. Classical economic thoughts on trade, that one trades a surplus will return. 6 billion people can not export to 800 million North Americans and Western Europe, always an unsustainable model. Freeing up individuals around the world will mean world can export and import products with higher knowledge content to each other, not a world to be feared but embraced. Principles of freedom have won, it is time for statists to get out of the way.
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Showing posts with label goldman sachs. Show all posts
Showing posts with label goldman sachs. Show all posts
Monday, January 12, 2015
Monday, August 30, 2010
Alvin Greene South Carolina, US Senate Race
You have to love Alvine Greene, a man who smacks the truth right out, flawless arguments, he is running for the democratic senate sit for South Carolina.
To quote from the Huffington post, "I will vote for any law and propose any measure to keep jobs in my state of South Carolina. I will vote for huge tariffs, and, if necessary, vote to ban imports of foreign goods. Millionaire egghead politicians in the pocket of big business talk about "free trade" - and let all of your jobs get shipped overseas. No more free trade. Your job is not going to Indonesia."
Here he has it wrong, it is not free trade that is destructive, it is the export of jobs, trade is not about moving jobs, but goods, the export of jobs should be banned, no imports from subsidiaries, this is destroying the world, because the world does not have time to adapt. fair if Indonesia has knowledge to make great toothpaste they have the right to export it, but for Colgate Palmolive to set up shop in Indonesia to re export to US is destructive, if they can not make it cheaply in USA, they should invest in other things or make the toothpaste better, honestly, balanced growth is what the world needs, not destructive growth were others suffer for others, I say again, I do not believe in others suffering for me, if these American corporations can do that to their own, imagine what they would do to those not of their own, grow up, quarterly profits are great, but ever increasing quarterly profits has led to export of jobs.
Greene should understand that, it is not trade that has caused this destruction, it is wrong economics from Chicago school of economics in the sponsorship of big capital. Their economics was all wrong, it always was, they became arrogant because they got media attention because they only talked about business, never the full economic cycle that includes people who actually buy the goods.
The Chicago school and the other so called ivy league only considered one side, cut costs, not realizing that people need money to buy those goods, it was right now to be clearly understood, PHONEY ECONOMICS, no intention of saving the world only finding how to squeeze.
Those in the Democratic Party who like the Republicans are sponsored by big business, people like Jim Clyburn obviously will hate Alvin Greene, that is life.
Bhekuzulu Khumalo
To quote from the Huffington post, "I will vote for any law and propose any measure to keep jobs in my state of South Carolina. I will vote for huge tariffs, and, if necessary, vote to ban imports of foreign goods. Millionaire egghead politicians in the pocket of big business talk about "free trade" - and let all of your jobs get shipped overseas. No more free trade. Your job is not going to Indonesia."
Here he has it wrong, it is not free trade that is destructive, it is the export of jobs, trade is not about moving jobs, but goods, the export of jobs should be banned, no imports from subsidiaries, this is destroying the world, because the world does not have time to adapt. fair if Indonesia has knowledge to make great toothpaste they have the right to export it, but for Colgate Palmolive to set up shop in Indonesia to re export to US is destructive, if they can not make it cheaply in USA, they should invest in other things or make the toothpaste better, honestly, balanced growth is what the world needs, not destructive growth were others suffer for others, I say again, I do not believe in others suffering for me, if these American corporations can do that to their own, imagine what they would do to those not of their own, grow up, quarterly profits are great, but ever increasing quarterly profits has led to export of jobs.
Greene should understand that, it is not trade that has caused this destruction, it is wrong economics from Chicago school of economics in the sponsorship of big capital. Their economics was all wrong, it always was, they became arrogant because they got media attention because they only talked about business, never the full economic cycle that includes people who actually buy the goods.
The Chicago school and the other so called ivy league only considered one side, cut costs, not realizing that people need money to buy those goods, it was right now to be clearly understood, PHONEY ECONOMICS, no intention of saving the world only finding how to squeeze.
Those in the Democratic Party who like the Republicans are sponsored by big business, people like Jim Clyburn obviously will hate Alvin Greene, that is life.
Bhekuzulu Khumalo
Sunday, October 25, 2009
Creeping Semi Totalitarianism
There is so much concern about how much bank executives and their “top” talent are paying themselves millions of dollars especially after having being bailed out by the tax payers. There are basically two arguments.
First there are those who say it is immoral for people to pay themselves millions after being bailed out by the taxpayers, seems understandable.
The second group says top talent deserves to be paid millions, otherwise those talented people will pack their bags and go to other companies, one needs to pay top dollar supposedly to have a good stock broker. Yet none of these “top talent” had a sell on AIG, but that is besides the point.
Take Goldman Sachs for example, they have paid all the money from the bailout, or most of it, who knows what is true, why can they not pay those they feel like as much as they want. They owe nothing anymore so why the worry. It is immoral at this stage to demand that Goldman Sachs restrict pay when they owe nobody anything. Goldman Sachs is not obligated to be dictated to by none shareholders. They can give each other as much as they want. But if Citi Bank owes the government money then no way can they pay themselves millions of dollars, one says themselves because it is a buddy buddy thing.
Tax payers have no right to be angry at the likes of Goldman Sachs, they should be angry at themselves at squarely at Bush and Obama for having bailed out Goldman Sachs, that was immoral, they should not even be existing, but both Bush and Obama figured they will retire one day who will sponsor their foundations and pay them to run around the world to make speeches, the likes of Goldman Sachs, that is why the bailout, do not doubt it. It was done, no need to cry over spilled milk, but nobody now has a right to regulate their pay, next time people should not be so blind.
Regulation will help with nothing except to create rigid class systems, that is what Obama and Bush have been working towards, the market punished the untalented Goldman Sachs and made space for those with talent, but creeping totalitarianism ensured that they survived, now they are back saying how talented they are.
Are bank executives, or corporate executives for that matter over paid. Maybe yes maybe no, but that is not up to the government to decide how much people should be paid. Corporations have shareholders, if they let the board pay themselves millions of dollars then the shareholders are getting exactly what they deserve. Take for example the Rockefellers, well if they do not want to be involved in Exxon, then let the board pay themselves as much as they like.
If for example the largest shareholder owes 2 – 3% of a large corporation and the board only has 0.5% and the largest shareholder does not want to be involved they want to go bungee jumping instead of taking their responsibilities seriously they deserve to be cheated, it has been known for thousands of years that when the cat is away the mice will pay, even the book of proverbs in the Bible of the west talks about a foolish child will lose their inheritance to a wise servant. Go and bungee jump and they will take your inheritance, but it is not for the government to come to your defense. Obviously owners do not pay themselves ridiculous amounts, look at Bill gates taking economy class for years even as a billionaire.
These people did not build these institutions like General Motors, so even as General Motors was collapsing they wanted to fly by private jets to get bailout money.
Is this the nonsense that America wants to export to the world, that some people are more equal than others and need to be bailed out, too big to fail, BS. Is this the kind of creeping totalitarianism that Obama and Bush want to export to the world behind the veneer of a government for the people by the people, these are dangerous times for freedom, as freedom is attacked in every corner from USA to Iran, Uzbekistan, Zimbabwe, there are those who want to rule for ever, Goldman Sachs time was over, thanks to Bush and Obama they will be around for ever, and morally they have the right to pay themselves what they like.
Bhekuzulu Khumalo
First there are those who say it is immoral for people to pay themselves millions after being bailed out by the taxpayers, seems understandable.
The second group says top talent deserves to be paid millions, otherwise those talented people will pack their bags and go to other companies, one needs to pay top dollar supposedly to have a good stock broker. Yet none of these “top talent” had a sell on AIG, but that is besides the point.
Take Goldman Sachs for example, they have paid all the money from the bailout, or most of it, who knows what is true, why can they not pay those they feel like as much as they want. They owe nothing anymore so why the worry. It is immoral at this stage to demand that Goldman Sachs restrict pay when they owe nobody anything. Goldman Sachs is not obligated to be dictated to by none shareholders. They can give each other as much as they want. But if Citi Bank owes the government money then no way can they pay themselves millions of dollars, one says themselves because it is a buddy buddy thing.
Tax payers have no right to be angry at the likes of Goldman Sachs, they should be angry at themselves at squarely at Bush and Obama for having bailed out Goldman Sachs, that was immoral, they should not even be existing, but both Bush and Obama figured they will retire one day who will sponsor their foundations and pay them to run around the world to make speeches, the likes of Goldman Sachs, that is why the bailout, do not doubt it. It was done, no need to cry over spilled milk, but nobody now has a right to regulate their pay, next time people should not be so blind.
Regulation will help with nothing except to create rigid class systems, that is what Obama and Bush have been working towards, the market punished the untalented Goldman Sachs and made space for those with talent, but creeping totalitarianism ensured that they survived, now they are back saying how talented they are.
Are bank executives, or corporate executives for that matter over paid. Maybe yes maybe no, but that is not up to the government to decide how much people should be paid. Corporations have shareholders, if they let the board pay themselves millions of dollars then the shareholders are getting exactly what they deserve. Take for example the Rockefellers, well if they do not want to be involved in Exxon, then let the board pay themselves as much as they like.
If for example the largest shareholder owes 2 – 3% of a large corporation and the board only has 0.5% and the largest shareholder does not want to be involved they want to go bungee jumping instead of taking their responsibilities seriously they deserve to be cheated, it has been known for thousands of years that when the cat is away the mice will pay, even the book of proverbs in the Bible of the west talks about a foolish child will lose their inheritance to a wise servant. Go and bungee jump and they will take your inheritance, but it is not for the government to come to your defense. Obviously owners do not pay themselves ridiculous amounts, look at Bill gates taking economy class for years even as a billionaire.
These people did not build these institutions like General Motors, so even as General Motors was collapsing they wanted to fly by private jets to get bailout money.
Is this the nonsense that America wants to export to the world, that some people are more equal than others and need to be bailed out, too big to fail, BS. Is this the kind of creeping totalitarianism that Obama and Bush want to export to the world behind the veneer of a government for the people by the people, these are dangerous times for freedom, as freedom is attacked in every corner from USA to Iran, Uzbekistan, Zimbabwe, there are those who want to rule for ever, Goldman Sachs time was over, thanks to Bush and Obama they will be around for ever, and morally they have the right to pay themselves what they like.
Bhekuzulu Khumalo
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