Oh dear!!

Politicususa published a list of thirty pieces of Republican legislation introduced to government [s] in the Obama term that they considered the Republicans War On America.  Their view was that Republicans are using these legislation to destroy America.  We republished their headings, but also gave access to the very very detailed and impressive research they had done to support their thesis.

One piece of legalisation in this honourable list was called “The War on Human Foetuses in Food” , which they poohed poohed as representing how mad the Republicans are.

Wrong guys.  The Republicans had every conceivable reason to suggest, and probably pass this legislation if this report in the Daily Mail can be believed.

In South Korea, customs intercepted cargo that included more than 17,000 capsules containing powder made from dried aborted Chinese babies.  

Frankly, I have nothing more to say on that.

However, the number of wars will now have to be 29.  

Pennies and Dimes and the 1%

No sooner had we written about the new electronic money in Canada, the MintChip, than we read of new technology with a similar purpose being introduced in the UK. 

It’s called PayTag, and The Telegraph reports that Barclaycard Visa (just reported a GDP2 billion first quater profit) is reputedly introducing the contactless payments.  Effectively a sticker on the back of your mobile phone that is waved over a reader device.  

There is an argument that this non cash form of payment helps identify the participants in the black economy, and contribute to the tax take.  True, but as we wrote in the above blog, it is pennies and dimes.  And a loss of privacy.  And more profits to the banks as they take a slice of every, ever smaller, transaction.  And Martin Vander Weyer in his Telegraph article argues that Britain’s should rise up to save the tenner.

However, I am going to return to my point in the previous Pennies and Dimes blog.  Stop regulating the little guy and regulate the 1% on their over the counter (OTC) derivatives.  This is where the real – very very large profits and losses occur.  And where danger lurks everyday with just the accidental push of a button.  They should be put onto an exchange, where they can for a start be known – eg the size of this market.  Who are the main players.  What concentration risk exists (think AIG in the GFC).  And tax every single one of them.  Evan 10 basis points (0.10%) would be a winner.  

And now via zerohedge to put some numbers on that market. 

I strongly recommend that you have a look at the visual presentation by Demonocracy of the global derivatives market – called Derivatives:  The Unregulated Global Casino for Banks.  This graphics and the detail is superb. 

It argues that 9 large banks (designated Too Big to Fail, and thus WILL be bailed out) hold US$228.72 trillion exposure in derivatives, ~ 3 times the world’s entire economy.  Here is the list: 

Bank New York                                  US$  1.375 trillion

State Street                                         US$  1.390 trillion

Morgan Stanley                                   US$  1.722 trillion

Wells Fargo                                         US$  3.332 trillion

HSBC                                                 US$  1.321 trillion

Goldman Sachs                                   US$44.192 trillion

Bank of America                                 US$50.135 trillion

Citibank                                              US$52.102 trillion

JP Morgan Chase                                US$70.151 trillion

Reported elsewhere, all up the unregulated derivative market is ~US$707,000,000,000,000.  That’s correct, US$707 trillion.  Now just imagine if this market suffers a one percent (1%) loss; that would be US$7,070,000,000,000.  Seven trillion dollars.  Who would pay for that?  Well you of course, we paid for the last loss.

But the point is, whilst we are penny and diming the people of the world with MintChip and Paytag, this market remains unregulated.  And profits untaxed for all we know.  Despite the global financial crisis, and in the face of acknowledgement from regulators that maybe it should be.

A 10 basis point tax on these (completely pointless) transactions, would generate US$700 billion.  More actually, because they trade in nanoseconds, and taxing every transaction would pay off the debts of all the countries currently in strife.  

So next time you use your MintChip or PayTag think on this.  And send a letter to your local pollie demanding that these transactions be regulated and traded on an exchange and taxed.  And maybe put the funds from the taxation into a World Bank fund (or IMF) to bail out the banks next time the fail.  Save us having to pay for it. 

This is the only “real” trickle down policy that would work for everybody.  

Pennies and Dimes

We all know that privacy is gone, gone, gone.  However here is one more (semi) rant on the changes to the fiat in Canada.  Written by James E Miller of the Ludwig von Mises Institute of Canada Via Zerohedge.

Canada is phasing out small currency usage, and introducing digital currency, the MintChip.  This can be used for all small (and I guess large) transactions in Canada and is anonymous (bah humbug).  If data is captured it is used against you in one form or another, and at the very least is valuable information to the tax man, marketers, and your ex during divorce proceedings.  

Mr Miller suggests “Governments have been waging a war on anonymous business since central banking became the norm.”  Well, it has on the 99% Mr Miller.

But not the 1%.  What I find difficult to understand, or at least throw down the challenge, is why if the governments around the world can penny and dime us, why they cannot get the US$700 + trillion of over the counter derivatives onto an exchange so that we can monitor them too?  They are after all the biggest risk, not the penny tax dodger, and the greatest cost to the community when they go boom!!

And they wonder why!

Yes mate, we will be in Australia for a week near Christmas.  Just the two of us, haven’t worked out what the children are doing yet.  Can’t turn up to stay with some people with three kids for a week. Yes just back from Amsterdam, at the Edinburgh train station.  Great to talk with you.  Yeah will let you know, but wanted to give you a heads up about that week away so that you can put it in your schedule.

Doesn’t matter what happens I have just bought the best beach house on the best beach in the UK.  

Aside to the barista….what’s that, yes a cappuccino. 

The barista says, that will be GBP3 sir,  sir,  sir!!

So I will be in touch, let you know what is happening.  Oh what are you doing for Christmas?  Yes we are all going to northern Scotland, have just heard about a shoot.  Don’t know the full details but I’ll let you know.  We could organise something.  Should be big. Open house.  Yeah well speak then, see if you can make it.

To the barista, is that mine?

Hi mate.  Dined on the Royal Yacht Britannia last night, yeah yeah, sat next to a friend of yours from the old XXXXX rugby days.  Spoke very highly of you.  So how’s the season, is XXXXX playing this weekend?  How’s his form.  So no money on it then.  What do you know? Yeah I am at the train station heading home to my babies.  Yeah, haven’t exchanged yet but have just bought the best beach house on the best beach in the United Kingdom, and I have the best knee board you can buy.  Life doesn’t get much better does it?  I am up to my eyeballs in silver, enough to live on forever, life is as good as it can get.  What’s that?  Yeah okay okay speak soon.

Just calling to ask about the dishes.  Yeah yeah, we wanted a dozen of each. Full score.  Maybe just ship them out, we will be there!!

And so the whole train station at Edinburgh Waverley had to sit through this man’s phone calls at the top of his voice.  No comprehension at all of the people around him, holding up the coffee line, of people rolling their eyes, of people avoiding him, even the people he was speaking with on the phone obviously closing the conversation quickly, almost autistic in his lack of empathy.  So very very full of himself and all his fantastic possessions and pursuits. 

Here’s hoping the price of silver tanks, huh!! And he again becomes part of the 99%ers.