Economics primo 2010

Economics: The Brief Truth primo 2010

The industrial production is continual decreasing, lately with a slightly lower slope, and the same is happening distinctly with the world trade in 2008, 2009 and 2010. Protectionism is very tempting to reach for, and the omnipresent cult of environment and climate freeze more than it loosen for the new perspectives including the reorganization to the international competition in the Western hemisphere.

In addition all these initiatives started to end up in the financial crisis, subprime loans and more debt, grants, easy money and easy credits, negative interests continues unaffected. Debt and insecured liabilities and continuous official expectations about higher taxes underline what certainly does not have to be done. The last-mentioned is in force in USA, Europa and Japan, Japan with 20 years recession and old- perhaps neo-keynesian errors of judgements has ended in deflation. It is not much better in Europe. No, nothing point to the right direction as matters look like right now in the beginning of 2010, regardless the share prices shortly showed small local increases over time in the beginning of 2010.

40-50 years of excesses and more than 10 years of loose monetary policy with consumption-economics and hot air bubbles first in market of shares then in market of properties are not nullified in a couple of years. The Keynesian or if you wish the Neo-keynesian treatment is still in front at the mainland of Europe:’The more the households consume the poorer they become, the more the states consume the richer we all become’. With a South- and Eastern Europe put away to Jericho under the regime of Euro, the defending rises of interest from EU, trade obstacles and other kinds of protectionism (the capital flow east- and westwards, and the inflation threatens Germany and France), starts a downward spiral leading to a collapse combined already with deflation in the one half of Europa and an dawning inflation in the other (including France and Germany).The alternative is even more issued means of money, bigger consumption, higher taxes, zero interest and more debt upon the mountain of debt, and this make everything even worse: ‘The patient should not have more of the drug that already made him ill’.The last relates naturally to the fact that some of laws of economics are almost natural laws.The ruling and media have completely missed this, because they believed on and in this world and in unresponsible of the agenda.   

The gold price approaches $1200 per zo from a price of $250 in 2005. And the gold market is not like any other bubbling market as those of shares and property, as we had to hear from the media, and not even just the breeding ground of the speculators. If this price rise of gold continues stronger inflation must follow, and the collapse we have seen until now is then just the summit. The problem is that insecurity at both the market of real production and at the market of currencies almost forces the investors to go for gold, provided the means must be easily and quickly to realized.

Remember, when the retarded dolls in the media report their advises of investment, always to do precisely the opposite. Everything has an end, and the latecomers are the majority, they are the ones to pay for the game always. Do you remember the bubble of share market created by sailable paper and of course false or no real expectations, almost in the style of Stein Bagger. Once in August 2001 you could read in the papers: ‘Let the children, indeed’. They were invited to invest the savings in the share market. ‘Everything went so well, and we became and shall become very rich’. And it was a lie. ‘More speculation, please’ was the title of an article in Berlingske Tidende. Apart from the title the article contained just empty nonsense, it was without any useful information.  

I suppose a majority at the summit expect the problems with a new and for a long time needed international monetary system solved by imposing some kind gold standard. But this has never been the solution to the selfmade problems, and a continuous rising gold price will show, where we really stand when it comes to inflation, unemployment and state debt, but the gold standard is just meaningful in an extremely expanding world economy, as under the birth of Industrialism, and it will make everything worse today, when it is artificial draged out of its historical context, because lots of people cannot look at two phenomenons occuring at the same without to imagine a connection of reason between the two.   

A real globalization of all markets naturally demand a new globalized international monetary system. The leaders of the world have to agree upon not ever in the future to be able to choose the easy way out, and at the same time impose a substantial limit the possibilities of speculation that truthfully is pure by-products of those professional-politicians-choises of the easy-money-way out. 


14 January,  M. Sc.(Economics) J. E. Vig

'if your heart is filled use your brain'

Immigration-cost in Sweden 29.7 p.c. of the budget

Immigration-costs in Sweden amount
to almost 29.7 p.c. of the public
budget (in 2001)
Dansk udgave


It is the largest expenditure on the public Swedish Budget, but you cannot find it. Associated professor Lars Jansson publiced the book ‘Mångfall eller Välfärd’ in 2002. Latest Jansson refers to the period The Economist from June 2003 that writes Sweden is tortured by big economic problems caused by the burdens of the tremendous immigration, and that Sweden is the poorest country in Scandinavia today.

In the preface of the book Jansson writes: “The Swedes cliam information of the price of immigration, and how it has been financed. The immigrants cause the biggest expenditure of the public budget. Every municipality ought to give the information about the price of immigration.” Jansson estimates the immigration cost of the Swedish state to $33 bill. And refers to that just $778 mio has been shown on the Swedish public budget.

(In Swedish:)
Lars Janssons original calculation method is shown in the book “Mångkultur eller välfärd”, June 2002.

The economic load of Denmark caused by the foreign immigrants amounted officially to $1.63 bill. of a total public budget of about $86 bill. We had to correct this strongly misleading official expenditure: In 1997 the immigrant load in Denmark amounted to more than $15 bill., in 2001 to more than $22 bill.


Documentation of the corrected immigrant-expenditure in Denmark: http://danmark.wordpress.com/2006/06/21/immigrant-load/

When Sweden has more than the doubled number of immigrants compared with Denmark and also a substantial extra unemployment we find it a little funny to experience that the immigrants officially just cost a little more than the half of those in Denmark.

The load–budget has earlier been used to estimate expenditures of children, pensioners and school-children in Denmark.

The $22 bill. in Denmark is an estimate of course, but it is light years closer to reality than the public figure that does not even pay the rent of the flats of the immigrants.

After the Danish Welfare Commission wrote in the newspaper Borsen December 1st 2005 that the foreign immigrants consume 40 p.c. of the total welfare in Denmark caused by the facts that they are paid transfers and consume public service more than three times as often compared with the Danes, our calculation has become a little easier. Thanks to the commission.

In Sweden and in Denmark the power brokers have chosen the welfare-consuming foreigners and do without welfare to the weakest Danes already.

England 2006, Immigrants drain the economy:
http://www.bnp.org.uk/news_detail.php?newsId=1118

Jansson wrote: “A relatively expensive welfare was chosen in Sweden as well as in Denmark caused by a collective tax-financing over a lifetime (not taking or even taking into account the droping of fertility among Westeners). But the need for jobs has also driven the cost of the immigrants to destructive proportions.”

The Swedish and the Danish alternative calculation of the immigrant-load are totally independent, but the result is that the doubled number of immigrants cost about the doubled amount of money in almost the same culture. Not surprising, I hope.

But will the power brokers take the consequence of this?
http://danmark.wordpress.com/2006/05/18/real-welfare-real-globalization/

Latest update concerning Sweden (In Swedish:) Invandringens Ekonomi januar 2004 en sammenligning af Lars Janssons og Jan Ekbergs beregningmetoder: http://www.bgf.nu/kostnader/ie.html

Sonia

Complement dealing with the actual results of tax-financed welfare model (including the decreasing and matching fertility) :

http://danmark.wordpress.com/2006/06/14/welfare-for-40-years-and-the-results/

Will the welfare-model be re-arranged?:
http://dissidentpress.wordpress.com/2007/03/10/will-the-welfare-be-re-arranged/


'if your heart is filled use your brain'

'When everyting fails try the truth'