Another brilliant article, full of sound common sense, from that great Reuters journalist James Saft, calling for the legalisation, regulation and taxation of all drugs - http://blogs.reuters.com/great-debate/2009/02/25/a-revenue-and-legalization-lesson-from-fdr/ - and I am delighted (if vain enough to point out) that my comment in support of his proposal was highlighted as the best.
Here it is for those of you who missed it (posted Feb 26th at 2.20pm EST):
Don't even partially joke Mr Saft - just get on and do it - legalise and regulate all drug use - the current set up is a waste of money and lives - the state should not protect individuals from themselves - but as it currently stands the state's policy is counter productive, hugely expensive and wrecks far more lives than the abuse of drugs alone would do. If one good thing comes out of this economic crisis it will be the downfall of such nanny-state legislation. Freedom includes the freedom to make mistakes.
Saturday, 28 February 2009
Tuesday, 24 February 2009
The Second Coming
“Things fall apart; the centre cannot hold; mere anarchy is loosed upon the world.”
William Butler Yeats
William Butler Yeats
Friday, 13 February 2009
Sir Roger Douglas has the right idea...
Sir Roger Douglas, the former New Zealand Chancellor, has the right idea for reforming the tax system not just in New Zealand (see a transcript of his speech here -http://www.act.org.nz/news/a-high-growth-low-tax-welfare-state) but also in the UK.
His excellent article delivers a most elegant and compelling arguement for a high-growth low-tax welfare state. And, since I can't get permission to live in New Zealand (which still seems like heaven on earth to us) I hope he at least manages to get this message across to the Conservatives.
Above all, we need to drill home to all voters and taxpayers (in New Zealand and the UK at least) the message that:
"We have bought the false notion that we can all be made wealthy through government. Elections have become an opportunity for politicians to promise they will take more money off you, only to give it back to you in another way (e.g. a tax credit for working families). If we each pretend that we can be made wealthy through taxing others, then we're destined for poverty. We are increasingly relying on others - be they foreign lenders or domestic taxpayers - to sustain our way of life."
"Only by restoring responsibility to individuals will we be able to tame the increasing cost of Government services. Only by restoring choice to individuals will they become independent, rather than dependent. Only by creating a low-tax welfare state will we be able to achieve economic prosperity. We can do it, if we have the guts to do what's right."
Blessings
Father Ignatius Brown
His excellent article delivers a most elegant and compelling arguement for a high-growth low-tax welfare state. And, since I can't get permission to live in New Zealand (which still seems like heaven on earth to us) I hope he at least manages to get this message across to the Conservatives.
Above all, we need to drill home to all voters and taxpayers (in New Zealand and the UK at least) the message that:
"We have bought the false notion that we can all be made wealthy through government. Elections have become an opportunity for politicians to promise they will take more money off you, only to give it back to you in another way (e.g. a tax credit for working families). If we each pretend that we can be made wealthy through taxing others, then we're destined for poverty. We are increasingly relying on others - be they foreign lenders or domestic taxpayers - to sustain our way of life."
"Only by restoring responsibility to individuals will we be able to tame the increasing cost of Government services. Only by restoring choice to individuals will they become independent, rather than dependent. Only by creating a low-tax welfare state will we be able to achieve economic prosperity. We can do it, if we have the guts to do what's right."
Blessings
Father Ignatius Brown
Playboy Bunnies
Kate Smurthwaite (author of Cruella Blog - see link) has some interesting observations about the use of the Playboy Bunny logo on school age fashion accessories - http://cruellablog.blogspot.com/2009/01/playboy-all-over-western-world.html#comments.
Being an old fart I find the fashion and media industries' apparent sexualisation of young girls slightly worrying (maybe that's an understatement - perhaps darn right scary is more accurate).
I was fairly oblivious to the promotion of the Bunny image to young girls until quite recently, when looking for a house online I came across a photo of a young girl's room dressed out in very bright candy-pink and with a large Playboy Bunny poster on the wall. I say a young girl's room because it looked like one with a little bunk bed, some homework posters, various children's toys - but there again it could have belonged to an adult with a childhood obsession and a love of pink. But the bunny poster was disquieting - it made it look like a brothel for paedophiles.
This week I heard that WHSmith has decided to discontinue its bunny range of stationery - after three years of protests from concerned groups. This is good news (although I was not aware they sold the stuff in the first place - somehow I have always thought of them as fairly respectable, but then I haven't shopped in one for 30 years).
Then yesterday, just when I thought the world might be getting saner and safer, my young daughter came home with a party invitation. The theme? Yes bunnies (it's an Easter party) - now I dread to think what some of the more liberal little darlings will be wearing - I think I will ask Mother to attend to this one.
Being an old fart I find the fashion and media industries' apparent sexualisation of young girls slightly worrying (maybe that's an understatement - perhaps darn right scary is more accurate).
I was fairly oblivious to the promotion of the Bunny image to young girls until quite recently, when looking for a house online I came across a photo of a young girl's room dressed out in very bright candy-pink and with a large Playboy Bunny poster on the wall. I say a young girl's room because it looked like one with a little bunk bed, some homework posters, various children's toys - but there again it could have belonged to an adult with a childhood obsession and a love of pink. But the bunny poster was disquieting - it made it look like a brothel for paedophiles.
This week I heard that WHSmith has decided to discontinue its bunny range of stationery - after three years of protests from concerned groups. This is good news (although I was not aware they sold the stuff in the first place - somehow I have always thought of them as fairly respectable, but then I haven't shopped in one for 30 years).
Then yesterday, just when I thought the world might be getting saner and safer, my young daughter came home with a party invitation. The theme? Yes bunnies (it's an Easter party) - now I dread to think what some of the more liberal little darlings will be wearing - I think I will ask Mother to attend to this one.
Is the Times really still trying to push property?
There were two bullishly titled property items from Ms Ashworth in today's Times - both gems - in particular I liked the phrase "Property is not fish - it doesn't go off." Which begs the question, why is the stench from stagnant and decaying properties that cannot be sold, let or maintained spreading across this land? Property has gone off so badly for so many people already that this statement can only be read as a sad case of desperate bravado.
I also liked her assertion that those with equity in their house see this "as the last chance to move to something grander" - more like move to something smaller so they can survive the crunch on what equity they can extract.
Finally you have to laugh at her assertion that there is a belief that catching a market that's 10% from bottom means you are doing well. Who's belief - hers - the estate agents' - people trying to feel good about losing another £20-30k before Christmas? She doesn't say. But most people I speak to agree that catching any asset when it has at least 10% and possibly 20% further to fall is simply a crap deal.
I have yet to see anything to suggest that this market has anywhere to go but down - when you look at the global macro-economic crisis you can see that we have a long way to go before there is any glimmer of a recovery.
And to be fair to Ms Ashworth she does (after the admittedly bullish headline) quote more realistic comments that reflect this, for instance:
and here
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5721104.ece.
Blessings
Father Ignatius Brown
I also liked her assertion that those with equity in their house see this "as the last chance to move to something grander" - more like move to something smaller so they can survive the crunch on what equity they can extract.
Finally you have to laugh at her assertion that there is a belief that catching a market that's 10% from bottom means you are doing well. Who's belief - hers - the estate agents' - people trying to feel good about losing another £20-30k before Christmas? She doesn't say. But most people I speak to agree that catching any asset when it has at least 10% and possibly 20% further to fall is simply a crap deal.
I have yet to see anything to suggest that this market has anywhere to go but down - when you look at the global macro-economic crisis you can see that we have a long way to go before there is any glimmer of a recovery.
And to be fair to Ms Ashworth she does (after the admittedly bullish headline) quote more realistic comments that reflect this, for instance:
- Savills "is finding that buyers are prepared to deal if the prices are reduced by [25%]"
- Clutton's Mr Hyman insisted that "the market remains fragile" (smashed might be a more appropriate word)
- Savills' Ms Barnes said that "the process would not extend nationwide for a decade; prices will not be restored to their 2007 levels until as late as 2019 in some locations" (locations such as England, Ireland, Spain etc...?)
- Lee Watts, managing director of Kinleigh Folkard & Hayward,said that he is "seeing an increasing number of new properties coming to the market" (presumably rushing to get out before the market falls further?)
- And finally, "Estate agents know better than to see this sudden burst of bargain-hunting as a new dawn" - but that won't stop them issuing press releases hinting that the sun is up and shining brightly.
and here
http://www.timesonline.co.uk/tol/money/property_and_mortgages/article5721104.ece.
Blessings
Father Ignatius Brown
Thursday, 12 February 2009
More property puffery from The Times...
...for an example of a desperate attempt to resuscitate a dying property market look no further than this shallow item on the Money Central blog of the Times (http://timesbusiness.typepad.com/money_weblog/2009/02/10-postcodes-attracting-the-most-interest-from-potential-buyers.html)
As for the comments from the other readers, I felt the need to post the following in support of Nico , who:
"showed a lot more sense and understanding than the author of this poor bit of estate agent puffery (even if I find the idea of a 75% fall hard to conceive - Japan, another crowded island, shows what can happen to property prices even when people have savings).
Personal debt in this country is at an all time high - that will unwind. The London School of Economics says there is a 50% chance that the stockmarket won't recover its highs of 6000+ for another 10 years as companies unwind debt and cut dividends (and jobs and pay). Sure that also means there is a 50% chance that it will recover before then but those aren't very good odds when you consider that shares "look" historically cheap.
While our problems are very much home grown (despite what Gormless Clown will tell you - the subprime disaster in the States was the catalyst but any catalyst would have done the job of turning his boom to bust) they are being compounded by huge global macro-economic forces that are beyond the control of meddling politicians. The so called Great Moderation has turned into the Great Debt Unwind. Like in the 20s in the UK and early 30s in the US there will be brief outbreaks of optimism that will be quickly followed by another round of doom. This is going to take a while so get used to it.
The one thing in our favour is our free floating exchange rate. If the government really wanted to turn things round they should start by slashing the size of the state (to the provision of bare necessities) and slashing all taxes on business and employment, along with the red tape that stymies new business and all restrictions on trade (in and out). We need to create a hyper competitive tax system and encourage a more flexible work-force (so lower taxes for freelancers for instance). Only by unleashing the competitive and creative spirit of the nation can we hope to recover."
As for the comments from the other readers, I felt the need to post the following in support of Nico , who:
"showed a lot more sense and understanding than the author of this poor bit of estate agent puffery (even if I find the idea of a 75% fall hard to conceive - Japan, another crowded island, shows what can happen to property prices even when people have savings).
Personal debt in this country is at an all time high - that will unwind. The London School of Economics says there is a 50% chance that the stockmarket won't recover its highs of 6000+ for another 10 years as companies unwind debt and cut dividends (and jobs and pay). Sure that also means there is a 50% chance that it will recover before then but those aren't very good odds when you consider that shares "look" historically cheap.
While our problems are very much home grown (despite what Gormless Clown will tell you - the subprime disaster in the States was the catalyst but any catalyst would have done the job of turning his boom to bust) they are being compounded by huge global macro-economic forces that are beyond the control of meddling politicians. The so called Great Moderation has turned into the Great Debt Unwind. Like in the 20s in the UK and early 30s in the US there will be brief outbreaks of optimism that will be quickly followed by another round of doom. This is going to take a while so get used to it.
The one thing in our favour is our free floating exchange rate. If the government really wanted to turn things round they should start by slashing the size of the state (to the provision of bare necessities) and slashing all taxes on business and employment, along with the red tape that stymies new business and all restrictions on trade (in and out). We need to create a hyper competitive tax system and encourage a more flexible work-force (so lower taxes for freelancers for instance). Only by unleashing the competitive and creative spirit of the nation can we hope to recover."
Thursday, 5 February 2009
Today's rate cut to 1%
This represents a massive transfer of earned and taxed wealth from the prudent to the feckless. It is the legalised appropriation of assets for the sake of political expediency. It is also counter productive and will lead to the long term erosion of our capital base. In short it is a disaster for this country's economy.
Wednesday, 4 February 2009
Urgent rule change needed for company failures
One urgent rule change is necessary - for all companies - the Staff pension scheme, staff pay and redundancy benefits and then all suppliers must come top of the debtor list (not last) they deserve to be paid ahead of even the most senior debt holders - lenders should know this when they lend.
Subscribe to:
Posts (Atom)
