Thursday, March 23, 2017

Deficit financing is a global plan, not an accident.

That is correct!  Every country in the world with exception of Luxembourg is heavily involved in deficit financing now and to many years into the future.  Even Norway!

The world economy has crashed!  Trading partners went broke.  The most sought after customers or accounts are those with the heaviest deficit!  China who can rock the world's boat easily is the highest deficit while embarking heavily on financing Nuclear plants around the world, a profit segment for them.

William Vickrey, awarded the 1996 Nobel Memorial Prize in Economic Sciences, commented:
Deficits are considered to represent sinful profligate spending at the expense of future generations who will be left with a smaller endowment of invested capital.
This fallacy seems to stem from a false analogy to borrowing by individuals. Current reality is almost the exact opposite. Deficits add to the net disposable income of individuals, to the extent that government disbursements that constitute income to recipients exceed that abstracted from disposable income in taxes, fees, and other charges. This added purchasing power, when spent, provides markets for private production, inducing producers to invest in additional plant capacity, which will form part of the real heritage left to the future. This is in addition to whatever public investment takes place in infrastructure, education, research, and the like. Larger deficits, sufficient to recycle savings out of a growing gross domestic product (GDP) in excess of what can be recycled by profit-seeking private investment, are not an economic sin but an economic necessity. Deficits in excess of a gap growing as a result of the maximum feasible growth in real output might indeed cause problems, but we are nowhere near that level.
Even the analogy itself is faulty. If General Motors, AT&T, and individual households had been required to balance their budgets in the manner being applied to the Federal government, there would be no corporate bonds, no mortgages, no bank loans, and many fewer automobiles, telephones, and houses.
— 15 Fatal Fallacies of Financial Fundamentalism[2]

This leaves in Alberta the Wild Rose Party and the Conservative Party whining doom and gloom but neither will  step up to the plate and tell the people it was their policy and their extravagance and philosophy that put us in this situation; world wide; not just Alberta and Canada who both are in better shape than most of the world.

What can you expect out of a Jason Kenny?   He views Trump as a success by every measure.  Worships Trump you might say.  And, you can expect him to follow Trumps example in finance and administration to the letter right up until Trump is impeached.

Keep in mind Alberta would be in a much different position had the Conservatives not drained the Heritage Trust fund dry of some 780 billion dollars!  And, on Kenny's advise Trudeau marched out a whole string of lies about our economy and his phantom surplus.  (Kenny is noted for writing much of Harper's speeches and press releases.  His biggest asset is an Ego, a very large one.

Trump has ripped up all the Environmental agreements because there is nothing we can do about it anyway.  Trump has cut funding to seniors, the poorest feeling the largest cuts.  For some reason, his daughter now has access to all the top secret defense data in the US.  This is why I suggest an impeachment is surly to follow.


Monday, January 16, 2017

Climate change and the state of the world is drastic.

For years we have been told to turn down our heat, don't idle our vehicles so long etc. and nothing came of it! Now we have no choices. There is a hope the carbon tax will encourage this kind of thinking.  Conservative rail against  it but offer no solutions.  The Wild Rose Party are in complete denial as are most Conservatives.

Thearctic tundra is melting which can release a further 1.8 billion tons of co2 into the atmosphere.

Earth orbit is elliptical and we are moving away from sun as we should be but, rather than cool off we are still heating up! Ocean currents are changing, the oceans are rising!  Currents and changing and sharks and "southern" species are showing up in "northern" waters.

Greenland's ice is melting fast as is Antarctica and the arctic causing sea level to start rising.  Along with our glaciers where we get our drinking water from, receding rapidly adds greatly to our problems. 

If we don't get this heating under control we will fail as the human race! Cities by the ocean will start flooding and you will witness a migration that will stagger your imagination!

Waves are gnawing at the cliffs of Herschel Island!  The town of Tuktoyaktuk which for comparison was palm size is now thumb size and the tundra in general is eroding now; into the arctic ocean.  This in turn will accelerate heating of the arctic because of the dark particles in the water.

Earth orbit is elliptical; we are moving away from the sun as we should.  But; we are still heating rather than cooling as we should be!

Conservatives tried, and still argue for carbon cap and trade with does nothing for the environment and gives corporations a huge tax deduction at one end and a huge tax credit on 

The world, not just  Canada and Alberta is moving towards carbon charges. There is no other way.  PM Trudeau was recently  in meetings with the Saudi.  The Saudi announced billions to invest in silicon sun generation was one outcome.  Get used to wearing a sweater and turn down your dam thermostat and air conditioning.  

Pumping carbon dioxide down hole in as they do in Saskatchewan results in an explosion of carbon dioxide out of the hole running for many hours ahead of any oil showing up and sounding like a jet plane but conservative are after the residual oil in those fields.

On the other hand there is news of mixing carbon dioxide with cement; holding it firm and making the cement last longer too.


And more:
A satellite image of Herschel Island, Yukon, showing huge sediment plumes in the shallow water areas. (NASA Worldview)
Fritz said the majority of the coastline on Herschel Island, like much of the Arctic, is subject to erosion in the summer when the sea ice retreats.
"Since 2007, we've seen one minimum after the other in terms of sea ice distribution in summer on the Arctic Ocean. That gives rise to higher waves, more storms that can affect the coast to erode it."
When that coast is eroded, the nutrient-rich soil mixes with the sea water and creates massive plumes of sediment. Fritz said the effect that murky water has on the marine ecosystem is unknown.
"With that sediment comes a lot of carbon and lot of nutrients, and those nutrients and pollutants will affect the water column," he said.
"We ask ourselves the question 'with this higher load of sediments, of nutrients and also of pollutants, what is happening with the food web' and we really don't know." 

Scientists are predicting catastrophic lake drainage now. 

When Conservatives rail against carbon tax they are in denial of our circumstances.   Our economy will adjust to the new realities and ongoing abrupt changes.  Abrupt? Yes; they will accelerate.

All this on top of a world presently in recession and a position of universal deficit spending again, not just Canada and Alberta but the world!! 



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