Mr. Red Sleeper wrote:Habit7 wrote:Well if we going nowhere, why use up our subsidies? You can release us of your burden and leave?
Where exactly are "we " going ?
please allow me to answer that as i see it.
imho
we as a country are following in the footsteps of the countries we emulate and chase after. we are dominated by world powers and in many ways are restricted (sovereignty at risk) from creating protocols that would empower our ppl, our nation and even our region. across the world the global economic outlook is nothing short of unstable. unfortunately the countries we emulate in our quest for 1st world status are leaders in the economic mess. their foreign policies and financial policies are creating hardship across the globe.
many years ago, the US government made changes to the way their currency is managed. instead of having their currency backed by gold (which gives it real worth), they created a complicated process which allows them to PRINT money without it being backed by anything. this was by the advice of keynesian economist(otherwise known as textbook regurgitators of the western world).
everyone knows how counterfeiting works, and the reason why it is outlawed for u to print ur own money on a printer at home. but this is essentially what western world governments have been doing since the introduction of this 'fiat currency'(unbacked). printing money dilutes the economy and causes inflation.
coupled with the banks advantage of the fractional reserve system, the bank is essentially able to 'borrow' 1million dollars from the Government in the form of bonds, which they can then lend ten times over. so they only borrow 1million, but can provide 10million in loans to the public with only 10% of the financing. but they dont actually print the money. what they do is adjust the numbers in a computer. just like that.. like magic. change those numbers and bam u have money. if only we could do that with our own bank accounts..
this caused these nations to head into economic downturn, due to inflation. the psychological effects on the public as their standard of living is noticeably slowly etched away results in a lack of work ethic and of course.. national productivity levels.
the banks then proceeded to give loans to ppl they knew couldnt payoff. all sorts of high risk persons were given loans to buy houses, and when they couldnt pay, the bubble burst. the banks skillfully won the support of the governments and were bailed out of their losses. while the banks ALSO got to confiscate the homes of those who couldnt make an immediate lumpsum payoff demanded because the bank was in trouble. im sure they had it all well planned and so the contracts providing those loans to individuals was a trap! (makes me take a step back to observe what island finance is doing and how long it will last. will they get a bailout too in the coming future?)
in various countries the governments and politicians have to spin and sell the idea. they give it a variety of names like - deficit spending, austerity measures and austere measures. but the all mean the same thing.. print fake money by adjusting the numbers placing all the capital under the tight grip of the money holders with a PROMISE of a 'trickle down' effect for wealth. but of course, things never got better, so nothing could ever trickle down.
deficit spending/austere measures are nothing short of placing an economy in debt. as the debt increases, inflation increases, prices go up, wages stay the same.. but all thru it all the rich dont feel the crunch since they hold all the money. they lose any identification with the working class and the gap between middle class and rich is widened, while the poor are slowly pushed towards destitution.
in addition to this.. the higher the national debt goes, the more 'debt per person' is increased. for example, as it is in america now, their debt is sufficient that every citizen, man woman child and unborn baby has an average debt of 60kusd. this amount is how much each citizen would have to pay to relinquish the national debt. essentially, generations being born indebted to the state.
as ppl lose their financial footing they become distracted with re-acquiring stability. they lose concern for what government is doing around them unless it seems specific to their lives.. not realizing the wolves are circling while they are looking at the one in front of them to see if it will make a move at them. some will try to adapt and work harder, taking 3 and 4 jobs to make ends meet for them and their family.
poor ppl have no voice to a government of wealthy individuals who are disconnect from the ground. there is no sympathy for the poor, no empathy for their struggle. in fact.. they probably wish theyd all just die so that the money and their survival wouldnt matter. but as long as there are poor ppl they will pander to them for votes in any way they think will be successful.. including buying cellphones for everyone. after the vote is cast.. to hell with u.
anyway.. i digress..
in other countries such as norway, the government chose a different route to solving the economic instability, which was caused by the banks' improper business practices. they told the bankers.. 'like any other business, if u do sheit and ur business fail, that is ur arse business'. the government then proceeded to forgive all citizenry debt and ALLOW THE BANKS TO FAIL or reinvent themselves. they also took it a step further by prosecuting banking executives who's reckless decisions put the entire country's economic stability at risk. the ppl got to keep the homes with an unpaid-off loan as all their debts to those banks were written off by the government. (a government for it's ppl)
in america thru corruption im sure, legislation was put in place that gave corporations the same rights as citizens. however, the corporations were able to get the benefit of all the regular rights in the constitution.. BUT u cant arrest a corporation OR THROW IT IN JAIL. especially if those resposible have left the position which they used for fraud and other purposes of syphoning out money (JACK WARNER). knowing the laws and exploits used in first world countries is what gives big businessmen and politicians the advantage in our country. our laws are so outdated that 1st world tricks cannot be dealt with. and so these ppl will get off scotch free (calder hart, dupre).
the method used by norway and a couple other countries around the world was of the advice of austrian economists. the austrian school has predicted ever major economic collapse and what policies will lead to them in an almost prophetic (damn prophetic enough) manner thruout history. every extensive detail that was pointed out came to pass. proving that austrian economics has merit. however.. our western world following our leaders result in the following of the same decrepid policies that are ruining their own countries using keynes solutions for economic recovery.
needless to say.. norway's economy has made a complete recovery in just ONE YEAR while all the other european nations and western countries caught in the net are on the verge of civil war and depression. same goes for each country that followed in norway's footsteps. their ppl are proud and happy once more as their economy once more is on the rise.
what can we see for trinidad's future?
with the same thing going on here, and our new finance minister with his keynesian 'expertise'. (textbook regurgitator and follower). we can expect MORE Deficit spending. more bailouts, housing bubble may burst, food will get more expensive, rent will go up, cost of living on the whole will continue to rise with each new budjet that introduces increased austerity measures. dont be fooled.. the words autere or austerity have nothing to do with austrian economics. they are child of the keynes.
the rich will get richer, the gap with the middleclass will increase. the constitution usurped over the heads of a voiceless and poverty stricken public who's crys will fall on deaf ears. as politicians in their circle of wealth create an imperialist rule under the name of democracy. but it is anything but. our children will be born into greater and greater debt with each new budget and we ourselves descending more and more into the negative.. or otherwise 'worthless'. not wotless.. worthless! slaves have no rights, no voice, no freedom of speech.
unless the deficit spending is halted and corrected so that we increase productivity, put more money in the hands of the working public than to be horded by the banks and large corporations. unless we stop making rules that favour and empower corporations we will just like the rest of those we follow, reach a point where our nation itself, cannot repay its loan.
economies are driven by spending.. so the government thinks the idea can be achieved faster by running large projects (a mistake even Patrick Manning made) hand in hand with large corporations. but because the effects of inflation dont affect those at the top of the chain as much as the man on the ground.. they simply cannot see it. the country may be keeping it's head above water.. but all the while quality of life decreases for the individual.
again the basics of economics will say that the economy is driven by spending. but that spending has to happen from the hands of the taxpaying public. the more money ppl have the more they want to spend and flams and buy the latest items on the market.. THAT IS SPENDING. not waiting for some chicken scratchings to trickle down from the corporations.
if we allow this continue.. i believe eventually, that we could reach a point where unemployment levels start increasing as companies downsize to continue hording cash and pay less employees. but the hardships will only be exaggerated, when a government who know they doing stupidness and risking causing a nationwide revolt, put systems in place to quell any revolt. ull be told to make do. while ur salary is $400 a week and a loaf of bread by itself is $100. how will u pay rent at 20k for a small one bedroom place (exaggerated figures but who knows).
