Time for the California Oranjebüm?

ATTENTION: What if I could show you a way to fundamentally repair the credit markets, fiat currency, trade deficits and inter-state deficit precipitated by the Wall-Street Bailout?

Assumptions:

CA Received Federal Tax Dollars per Dollar Collected by the Federal Government as a Factor of 0.78 (http://www.taxfoundation.org/files/ftsbs-timeseries-20071016-.pdf)

All Taxpayers as a class are owed interest, back fees, and other endured hardships by and from (and in some cases continue to receive) those selfsame Corporations received of that Expenditure.

CA has low bond-ratings by agencies with suspect objectives and motives that limit our ability to represent the true greatness of our burgeoning sciences in CA.


Answer:

In my open letter, disguised as a book, there is the principle of the "Second Level Market," where a State in the Union, without disrespect for any other State or the Federal Powers that be, can issue a Fiat based on some principled value or ordinary credit.

What if we estimated the value of some percentage of the next five years of Orange Crop; Issued a spend-able state run currency, which could be honored and legal tender within the borders of CA, and peggable to a state trust held Option in one of the Mid-West AG markets; and retire the Bond in fifteen years.

A modest proposal, but when The Governator was holding the gun to the State employees and the IOUs were issued! That was when I had this expanded thought upon my "book."

I conclude by suggesting that this simple device be retired at the Federal Bank in Manhattan—it could be in exchange for any deficit between the two states. Or we could use it to buy the Seed Crops from Holland once Hemp becomes Legal (in 2012)!

How's that for 'easier said than done?'

I will leave it to someone who understands these things to figure if I am right, wrong, or just a misguided semi-autodidact.

My World and the rest of the world....

Wow, Just found an old Newsletter I sent out at the end of Winter 2005 ~ 6, which recommends a heavy and long investment into the reintroduced thirty year T-Bill:

Starting January 2006
Date 2 yr 3 yr 5 yr 7 yr 10 yr 20 yr 30 yr
02/06/06 4.62 4.57 4.51 4.52 4.55 4.69 N/A
02/07/06 4.61 4.57 4.52 4.54 4.57 4.73 N/A
02/08/06 4.64 4.61 4.55 4.55 4.56 4.75 N/A
02/09/06 4.66 4.62 4.55 4.55 4.54 4.72 4.51
02/10/06 4.69 4.67 4.59 4.59 4.59 4.76 4.55
02/13/06 4.68 4.66 4.58 4.58 4.58 4.76 4.56
02/14/06 4.69 4.68 4.61 4.61 4.62 4.80 4.60
02/15/06 4.71 4.68 4.60 4.60 4.61 4.78 4.58
02/16/06 4.69 4.67 4.59 4.59 4.59 4.77 4.57
02/17/06 4.66 4.64 4.55 4.54 4.54 4.71 4.51
02/21/06 4.71 4.68 4.59 4.58 4.57 4.72 4.53
02/22/06 4.68 4.66 4.57 4.55 4.53 4.68 4.48
02/23/06 4.72 4.70 4.63 4.58 4.56 4.70 4.51
02/24/06 4.74 4.70 4.64 4.60 4.58 4.71 4.52
02/27/06 4.74 4.71 4.66 4.61 4.59 4.74 4.55
02/28/06 4.69 4.67 4.61 4.57 4.55 4.70 4.51
03/01/06 4.71 4.68 4.63 4.60 4.59 4.74 4.56
03/02/06 4.72 4.72 4.68 4.66 4.64 4.80 4.62
03/03/06 4.76 4.75 4.71 4.69 4.68 4.84 4.66
03/06/06 4.77 4.77 4.76 4.74 4.74 4.91 4.72
03/07/06 4.77 4.79 4.76 4.75 4.74 4.91 4.72
03/08/06 4.72 4.77 4.75 4.74 4.73 4.91 4.72
03/09/06 4.72 4.77 4.75 4.74 4.74 4.91 4.72
03/10/06 4.74 4.80 4.77 4.76 4.76 4.93 4.74
03/13/06 4.74 4.81 4.78 4.78 4.77 4.95 4.77
03/14/06* 4.66 4.72 4.68 4.69 4.71 4.89 4.71
03/15/06 4.69 4.72 4.69 4.70 4.73 4.93 4.75
03/16/06 4.62 4.62 4.60 4.61 4.65 4.86 4.70
03/17/06 4.65 4.64 4.62 4.63 4.68 4.89 4.72

Postmark on returned newsletter.

Source: Federal Reserve.gov ; http://bit.ly/asBCk9


***

(4.75% interest tax free for thirty years is a good bet even right now....)

~~~

If I was right about that fun fact about the economy four years ago, then trust me when I say, HEMP is right for the Economy Today!

There have been no new actual arguments brought up by the opposition since my last Post, or Original Argument from 1993~4. Mostly we have seen the same old tired out retread Arguments of "Fear," and to much lesser extent "Greed," because actually YES wins the conversation about jobs, taxes, and the economy.

The fearful bits about elections, is one of the key reasons why I am actually sick of our political system. Washington was as Cincinnatus a citizen - soldier - then politician - then citizen, and the (low) level of discourse in our modern politics disenfranchises ordinary citizens.

So, Fear is something, but the reason we are given privacy to punch our ballot is that the vote must not be made under duress. That category then is hard to define once we take impersonal effects from the citizen... does not the economy itself pose a certain duress upon the perceptions of voters today?

Thus, even though there are legitimate problems in our economy, government, and state budgets, we must look past fear and ask simply, "Will this Proposal (proposition 19) actually help?" Make a positive impact on my life and the future of our State and Economy!

With an estimated $1.8BB in savings by redirection of Peace Officer efforts and incarceration, this can certainly be redistributed at a savings to governments, and then more than make up any potential slack posed by people doing more or less what they are already doing (and government make fewer or no taxes from it).

With an estimated $1.4BB in revenues to state and local governments, this is a real solution for today's issues-- INCLUDING JOBS!

I am glad, although unaffiliated with, have often voted Libertarian, as well as other third parties, that the Libertarians recognized and endorsed Prop 19, without waiver or condition.

This will get the beginning of the end of a failed Prohibition and a failed social "drug" war mentality.

Peace.

THANK YOU.

Go out and Vote today November 2nd, 2010.

Please vote YES on 19!

Excerpt #1

The book should be available very soon, but in any event I wanted to blog some excerpts as a teaser, and/or to clarify this work of which I am proud.

First excerpt from the Foreword of Metaeconomics: Market Evolution Intuited from Practical Lessons of the Past and Present; A Treatise on the Philosophy of Economics / J. W. Kilvington – 1st ed. Copyright 2009 Kilvington Enterprises All Rights Reserved (contact book@kilv.com for permissions):

By September 17th, everything I thought I knew about Economics was destroyed, and yet made almost clear—as if all the gloss and polymer that never quite made sense about Economics had suddenly gotten out of my way from obstructing a view to truth.

The rabid free-marketeers were gladly going on the government dole like the much decried “welfare mother’s”; the red meat capitalists approximated red flag communists in their approach to problem solving; and in my entire lifetime it had been repeatedly explained that because an individual is responsible for their station in life as we are a meritocracy, the poor are the poor for a reason, and don’t deserve any of that precious tax money from the government.

All these now proven to be argumentum ad nauseam.

To say a thing over and over is not to have necessarily to have proved beyond a shadow of a doubt its truth and validity.

Nixonian cum Reaganomic cum Bushian trickle down theory to dismantle the state edifice of Keynesian New Deal and Great Society systems had officially and irrevocably failed.

The poor were always poor. Carter attempted to swim upstream, and got stagflation. Clinton made a nice presentation piece of the trickle down theories, and did improve the social netting—repairing holes in which people were falling through. But by also opening up new loopholes that added to our current state of affairs the rich kept getting richer.

I have harbored doubts about the circular logic of the trickle down system, its shortcomings, and now its bright line failures—more nationalization of private assets in 2008 USA than 1917 Russia its outcome!

What was the difference between Communist Russia and the obscene display of cowardice by the financial elites last year? Russia privatized means of production, as Marx and the other German Communists prescribed, but the Republicans under Paulson-Bush-Cheney privatized failure!

The lack of judgment, foresight, ability, competence, skill, expertise, ethics, integrity, and any notion or public sense of the higher good was underwritten to the tune of over $3,400,000,000,000 in the waning days of Bush II, a.k.a. “W,” and their cronyistic, nepotistic, and ceaselessly corrupt sense of self service.

That stain shall make irreparable the old ways of the supposed free-marketeer, which we can now see clearly tolerating such massive and self-serving corporations in your market and country is the same as harboring a Pirate in among your shores and counting their loot as part of the regular (taxable) economy—when in fact foul ways are clearly a disruption to the economy for those abiding the rules!

So from my supremely under educated vantage, yet speaking from patient practical experience, I shall attempt to describe my observations of what truly needs to happen to create economic systems wherein: I.) Humen are ensured Life, Liberty and the Pursuit of Happiness; II.) Free Markets can exist; and III.) Anyone can play and succeed in Business upon their efforts, merits and good behavior.

I pray this my work can continue the dialogue necessary in this nation and our world to provide Peace and Prosperity to all who would ask for it.

Update

So I haven't been anywhere in Cyberspace for well over a month... I barely had time and energy to make that little quip about Cheney.

Reason why: I have completed the first draft and first edit of a two hundred (or so) page book on Macro Economics.

The book is meant to be readable and modestly entertaining, but in fact is an exposition in Philosophical thought on economics which allows the reader to follow an argument I have been thinking for over twenty years now, but had allowed myself to be convinced by the "trickle-downers" that theirs was a system that worked.

Well that horse has left the barn, and the fly in the ointment is a obvious as the emperors new clothes. Sorry, had to puke out a couple of over used cliches, which I tried to avoid in the book, with the exception of two, for which I directly apologize to the reader having (in less than one months writing) only come up with those relatively apt descriptions to hasten the readability.

I would have loved to spend ten years instead writing some needlessly complex book which makes obscure and practical example of the thought so espoused in this work, but morally I felt the compuncture to instead make an effort to shift the dialogue we are presently trapped in with our current economic state of affairs.

All that said, I am hanging in there, wish you all the best, and hope to publish the book as a final draft by March.

Bretton Woods 3 and #44

Great article in the New Republic which breaks down the global financial mess in plain speak.

Most of my whinging has been about our Domestic Policy: Reduce the IRS to a minor agency by simplifying tax code; Return the Fed to its role as a clearinghouse between banks, and close the "window" to the big businesses who keep talking "poor mouth;" and modify laws to being Plain English so that there can exist bright lines that enable transparency, enforcement, and whistle-blowing (self-regulation).

What of Foreign Policy?

Well, sir, as Isolationist as my instinct are, the reality is that the actual value of the average fiat currency dollar in your pocket whizzes around the world once a day or more.

Therefore it begs definition that there really are no "Isolationists," anymore, and further no major power in the post-industrial economy could afford to be.

As in the article great minds, and Gordon Brown (who I admire, has a great mind, but is the Prime Minister-- so you have to have a cup of salt around for anything he will say, in spite of the fact that he was after all the Chancellor {Finance Minister} for Blair), are calling for a new Unification of the monetary system-- they refer to it as Bretton-Woods III.

I mentioned before that there needs to be a swords to plowshares mentality in the world for there to be avoided some great depression, and the penchant to harmonize and unify is a deep instinct among we human beings. That said, let us examine that there really hasn't been a "Free Market" in currency in modern times.

One good reason is that if you look at the aftermath of The Great War (WWI), The German Mark was deeply punished by the victors and was only brought out of depression by making ready for WWII-- Bretton Woods "I" aside. Currency and collusion between allies against a smaller nation can be a form of War.

On the other hand creating a Universal Fiat would essentially strip many powers of nations to regulate their economic and financial policy decisions... which is the consequence of losing a War, so is essentially a non-starter.

Therefore, as I mentioned before, Trade Zones and the trading parties should have the ability to create Defensive alliances (as in the creation of "Greece"), and conversely current Defensive Alliances (NATO, et. al.) should have the ability to create currency agreements in order to buy and sell at discount, prop up weaker economies in the alliance, and "attack" other economies.

If you remove the warfare from currency, then you will create a greater warfare (most probably, goes my thinking), so you must allow for regulated and controlled violence of the market that can be appropriately contained.

Simultaneous to these exceptions (for instance if NATO agrees it is a dollar denominated Alliance, then all decisions are made in dollars by that Alliance, even though some of those allies might rule in Euros, Pounds, etc.) should be bright line rules of the game for a semi-free form currency market which allows for nations to set policy (such a false rate of Yuan or Yen) towards their own betterment, yet somehow hold them to account. If for instance the Chinese insist in undervaluing their currency to increase exports, the deficits can not enjoy a knock on by the false values. This doesnt mean the Importing nation can not enjoy the discount on goods or services, but it does mean that the reconciliation of Real-versus-Declared value would suffer. (Hence those NATO Allies in that theoretical dollar denominated Defense would still be subjected to the Real Weight of the Dollar according to the rules, and thus affect the larger Commercial Economy.)

I threw out a lot of complex ideas which may not entirely make sense to even studied economists, because I am using my knowledge-- and a lot of it I didnt just get from reading books.

As for what a new Administration can do, well like others, I await the breath of fresh air (as did the G-20 last weekend).