South Asian Socialism

#235 by SR on May 18, 2006 3:24am PT


Moreovere, the CPI and other government stats can be massaged and doctored and given ever new spins to convince a sufficiently large number of people that inflation is ``under control.``


Dude..Americans aren`t idiots..No amount of supply-demand spin from the right can convince people that gas is cheap..people vote with their wallets..not based on the government reported CPI..

``Kashmir banega pakiland`` wet-dream continues unabated... even in this baord :)))...

SR,

As you always say, one picture is worth a thousand words. It seems purchasing power of US Dollar domestically is the same as 20 years ago, and better than 1984! Of-course that is at the expense of the rest of the world but there you go ...

What inflation are you gentlemen talking about? No one is going to take anyone`s house away.

Area: U.S. city average
Item: Purchasing power of the consumer dollar
Base Period: 1982-84



Source: Bureau of Labor Statistics.

# 228 behram {``...[Bernanke] has no choice but to continue raising interest rates pass the 6.0% level. He must crank it up a little more than the usual 0.25% rise, preferably 0.5% this time. He would not stop now without cooling down this inflation. ...``}

In theory, I agree, that is what he should do. But doing that takes balls of steel. Only Paul Volker had those. Greenspine, and Ben are different animals. They are politicians first and professionals last. They both know (knew) what was right but they are sell-outs and cannot do the right thing because of political pressure.

Ben is really between a rock and a hard place. If he raises interest rates (to fight excess inflation), he risks the economy (due to the housing and stock market dive), on the other hand, if he lowers or even stays put, he hurts the already beleagured dollar. I believe, they will decide to stay put for a while and screw the dollar in order to save the domestic fiction of prosperity. Americans have votes, foreigners don`t. So foreign holders of dollar denominated assets can go to hell. Inflation will rise, yes, but that can be blamed on high oil prices, or terrorism, or whatever else. Moreovere, the CPI and other government stats can be massaged and doctored and given ever new spins to convince a sufficiently large number of people that inflation is ``under control.`` And the party goes on. At least for a while longer.

...SR

Asadi and Behram
Thank you guys!
Okay here is the deal…

Asadi,
Behram needs a tutorial in the “Theory of Surplus value” fast…Could you please type a quick one for him? He is taking economics and finance tutorials at Buzzflash.com. Not good at all. But there is nothing wrong in his rants. He is doing fine just let him be and enjoy his mental exercises. Why be upset abt it. He is going to play with you. He is a purana paapi from Saddar, Karachi.

Go Behram go…


PS. I am rubbing Indian noses in the dust on the Kashmir board. I will just follow this board for fun.
Thanks.

Behram writes in #232 <<< Are you sure that you are not the same person who at the drop of a hat puts forth verses of Quran, etc? >>>

Stereotypical nonsense. I have not mentioned any Quranic verse on this thread or on any discussion that did not deal with the Quran.


Then he writes << Yes, I am totally honest that you have always brought religion into the conversation. I ask you why? Why is it so essential for you to bring your holy books into these types of posts? >>>

You are a liar Behram. I have never brought the Quran into these discussions. Only when A.Hs like you have attacked it have I stepped in to defend it, because your attack was based on nonsense.

Then he writes <<< So are you suggesting that those of us who do not follow your set of beliefs are not enlightened? >>>

Turn your argument on its head and you prove nothing in the process. Little wonder HP finds your rants amusing. You suggested that all non Islamists and non Communists here are ``enlightened``. I mentioned no such thing regarding the other set.

Then he writes <<< Now how would you know what he was thinking? O! are into some trance mode? >>>

It is quite obvious if you read his post to make out what he meant, it requires no trance. Ask him, like I said, if he finds your rants against the corporations enjoyable because of their intellectual quality or their stupidity.

Then he writes <<< O! so now you want to find sympathy for your islamist cause amongst your ilk by establishing your ``geesa pita`` rhetoric....wolf, wolf... this person is against Islam....This nonsense has never worked, so get over it. >>>

Look idiot, I have no ``Islamist cause``, whatever the hell you mean by that. You have made it quite obvious that you are going to use labels and imagined criticism to try to prove your dim wit points, I was just pointing to that. Now move over with your BS and hateful bigotry and let thinking people reason on here.

Re: # 230 by masadi on May 17, 2006 8:21pm PT

{There you go with your labelling and stereotyped horse dung again. I am presenting facts and figures linked by a logical theory and you label it Islamist or Communist in order to discredit it to the many who carry a bad image of the two words because of media portrayal.}

Are you sure that you are not the same person who at the drop of a hat puts forth verses of Quran, etc?

{Is that honest? truthful?}

Yes, I am totally honest that you have always brought religion into the conversation. I ask you why? Why is it so essential for you to bring your holy books into these types of posts?

{ and then out of the blue you label those that do not belong to the set of Islam and Communist as ``enlightened``.}

So are you suggesting that those of us who do not follow your set of beliefs are not enlightened?

{ Who are you trying to deceive? }

I was hoping that you could be be deceived, but you are really some fox...aren`t you? Wiggling your way around in being an Islamist and/or communist, or your power elite.

{You surely don`t have brains enough to deceive me and let me enlighten you a bit.}

You are right about that.

{When HP sahib said he ``enjoys your rants``, he did not mean that he enjoys them due to their ``intellectual quality``. He meant they are halarious because they are outlandishly stupid. Ask him, if you doubt what I said. }

Now how would you know what he was thinking? O! are into some trance mode?

{I have tried to be decent with you in my past posts but your hatred for Islam masks any and every iota of decency that might reside ``between your two ears``. }

O! so now you want to find sympathy for your islamist cause amongst your ilk by establishing your ``geesa pita`` rhetoric....wolf, wolf... this person is against Islam....This nonsense has never worked, so get over it.

This may be tough for you, but be rational human being.

Respectfully submitted,

Long before you began your renewed dim wit rant against the corporation on this thread


Pat ``White man being kept down`` Buchanan duking it out with Osama ``Death to America`` Bin laden?

Oh the joys of chowk interact..

behram writes in #229 <<< But, masadi, you always consider your power elite as your gospel. Is that the same thing as I have been discussing? >>>

The power elite are not my ``gospel``, I write against what they do, and they are part and parcel of corporate capitalism and the resulting bureaucratic society and world system.

Then he writes

<<< So, you are agreeing that I have presented my rants a little nianced than yours. In effect, then you are piggy backing on my arguments. Aren`t you? >>>

I am saying that you totally miss the point when you criticize the corporations but support the rest of the institutional structure that they dominate. Hense you totally miss the point. I would be a damn fool to ``piggy back`` on such half baked knowledge and I do not.

Then he wrote:

<<< See with your Islamist/communist ideology this whole dialogue between enlightened folks could get derailed and some may not enjoy my rants. Are you enjoying my rants? >>>

There you go with your labelling and stereotyped horse dung again. I am presenting facts and figures linked by a logical theory and you label it Islamist or Communist in order to discredit it to the many who carry a bad image of the two words because of media portrayal. Is that honest? truthful? and then out of the blue you label those that do not belong to the set of Islam and Communist as ``enlightened``. Who are you trying to deceive? You surely don`t have brains enough to deceive me and let me enlighten you a bit. When HP sahib said he ``enjoys your rants``, he did not mean that he enjoys them due to their ``intellectual quality``. He meant they are halarious because they are outlandishly stupid. Ask him, if you doubt what I said.

I have tried to be decent with you in my past posts but your hatred for Islam masks any and every iota of decency that might reside ``between your two ears``.

Re: # 227 by masadi on May 17, 2006 7:33pm PT

Masadi:

{The workers create the surplus, they have a greater right to it than the ``capitalist`` who has used his networks of power to usurp the public`s wealth for his maximum benefit.}

OK, the workers used their brawn power and they became productive, so they should be given some bonuses. Should they get all the profits? Some technology companies have shown average revenue of $350,000/employee. Besides salary and benefits package, I would agree with you that they should also get the same percentage of profit from the average revenue. Let`s say if the profit margin for the total corporation is 15%, then each employee should also get 15% of average revenue/ employee or $52,500 per year.

Would you consider that equitable?

{And don`t flatter yourself by suggesting that I ``piggy back`` on your arguments. Long before you began your renewed dim wit rant against the corporation on this thread, I had already stated what I am restating here.}

But, masadi, you always consider your power elite as your gospel. Is that the same thing as I have been discussing?

{And you are a total idiot when you try to attack the corporations while redeeming the US political establishment and trying to promote the ``mom and pop`` capitalism that exists no more except in popular sloganeering of the corporations themselves. }

Of course, my argument must be different than yours. So, you are agreeing that I have presented my rants a little nianced than yours. In effect, then you are piggy backing on my arguments. Aren`t you?

See with your Islamist/communist ideology this whole dialogue between enlightened folks could get derailed and some may not enjoy my rants. Are you enjoying my rants?

Respectfully submitted,

Re: # 224 by SR on May 17, 2006 5:11pm PT

{Will Bernanke raise rates again to offset inflation? -- no way, not with housing tipping over -- and now, the stock market! }

He has no choice but to continue raising interest rates pass the 6.0% level. He must crank it up a little more than the usual 0.25% rise, preferably 0.5% this time. He would not stop now without cooling down this inflation.

Bond prices should remain down until the fed stops raising interest rates.

Enjoy cash position or money market funds, or buy short term CDs stepping it up as interest rates continue to rise. Cash is king at 5%. Enjoy dividend paying stocks.

{And I think it`s going to be deflation of the housing boom in both prices and the number of new houses that will be built. }

Yes, I do agree. There are tough times ahead for the US economy in general. Lot of foreclosures in the housing markets, and finally individual capitalist should win.

Respectfully submitted,

behram writes #226 <<< The capitalist owns the profit, not the workers....your concept is totally for the communist party, and the world is a whole lot better off without that ideology. Please don`t piggy back on my arguments. >>>

The workers create the surplus, they have a greater right to it than the ``capitalist`` who has used his networks of power to usurp the public`s wealth for his maximum benefit. And don`t flatter yourself by suggesting that I ``piggy back`` on your arguments. Long before you began your renewed dim wit rant against the corporation on this thread, I had already stated what I am restating here. And you are a total idiot when you try to attack the corporations while redeeming the US political establishment and trying to promote the ``mom and pop`` capitalism that exists no more except in popular sloganeering of the corporations themselves.

Re: # 220 by Pardesi on May 17, 2006 4:23pm PT

{Seems like Chowkies are going to solve all american problems :) }

Thank you pardesi, I did not intend to solve all american problems :) just enumerate and accentuate the positives of capitalism.

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Re: # 218 by hamidm2 on May 17, 2006 3:59pm PT

{.... so how do you propose we run GM and GE ? ......}

Frankly, Hamid there is no big deal running any of these major corporation. They have made it seem to us lowly people that they are indipensible. If these guys were so damn smart why can they not start their own businesses, as a genuine capitalist would do?

{ if we give them away to the private equity groups they are more than likely to go out and hire some of the same guys to run the pieces after they are done taking them apart and selling what they can sell ......... }

There you are missing the point by correlating the equity with groups, etc? Groups are the problem....get it! Money managers are no different, they use other people`s money.

{do you think a single individual can run boeing ?............} Yes, why not?

{ walmart is basically owned and run by a family and so is ford - are they your idea of well run companies that take care of old joe six pack ? } If walmart and ford can still be under one family, what is the BFD to run boeing?

Again, you are still stuck with the management of corporations. And that has been my argument all along. Managers by definition means managing other people`s money, and hence they are crooks...(OK not all of them...)

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Re: #221 by masadi on May 17, 2006 4:46pm PT

{....that fleecing corporations out of the money that rightfully belongs to the workers is ``work``. }

Now, now, masadi, the money rightfully belongs to the owners of the company, the shareholders, and not the workers.....That is where you are totally messed up. Got it. The capitalist owns the profit, not the workers....your concept is totally for the communist party, and the world is a whole lot better off without that ideology. Please don`t piggy back on my arguments.

Respectfully submitted,

#223 by bongdongs

If the company used stock price as the only metric, then they will have to pay per their agreement. Why do I care :). I hope the arrangement was not like NY city transit workers used to have - their retirement was pegged to the final year’s salary + overtime. Fellow workers use to give their share of the overtime to the guys in their final year of work so that their buddies can retire at $100k/year.

Take a look at last week’s Barron. They have rated S&P 500 corporations by “addition to share holder value” that includes growth, total return etc. Lehman and Goldman are at the top, Exxon – 129. I have no problem with somebody earning zillion dollars on stock options if they have done well for their fellow shareholders over longer term, but if guys make 20-30 millions/year, while stock has not done much for many years, that to me is bit unfair.

Re: # 189 Anil {``... IBM went to DR for the operating system... DR founder and his wife chose hang gliding that day... the rest is history... ``}

Not that it really matters, but it wasn`t hang gliding or golf that got in the way of the critical meeting between the DR and IBM top dogs. He had taken the afternoon off and was flying his small plane -- having fun. I head it from the horse`s mouth back in 1993.


#187 behram1 {``... Ron Paul is more a Libertarian than Republican. ...``}

His ideology is more Libertarian, yes, but he is very much a Republican party member and runs on the GOP ticket. This just proves that not all Texas Republicans are idiots or liars. Ron Paul seems to be at least one exception.

# 219 hamidm2 {``... so how do you propose we run GM and GE ?...``}

GE`s time may yet be further into the future, but I doubt if you`ll have to worry much longer for GM. The Japs or the Chinks or some other unsavory characters will have to worry about GM after it finally goes belly up and they buy up its rump for a nickle plus a dime. The bond holders (and other lenders) will be left holding the bag. The stock holders will join the club of MCI and KMT stock owners.

#162 zeemax`s THREE FICTIONS

ONE
{``... Fed doesn`t raise rates to attract investment into the US$. It raises rates to contain inflation and overheating of the economy...``}

TWO
{``...Fed fund rate is ... `neutral` ... in terms of inflation Vs growth at 4.5%. Further raises will go as far as ... 5.5% seems likely...``}


Inflation is always a monetary phenomenon and it is heating up. Even that highly distorted Consumer Price Index was up .6% in April or at a 7.3% annualized rate.

Will Bernanke raise rates again to offset inflation? -- no way, not with housing tipping over -- and now, the stock market!

THREE
{``... no sign of danger to the housing market. ...``}

If I`m to believe the charts, the story is that the housing boom is kaput -- it`s over. Please check out the daily charts of three of the biggest builders in the US -- the Ryland Group, Toll Brothers and Lennar Corp. You don`t have to be a ``technicals`` genius to be able to interpret what these three charts are saying. In a word, it`s ``top-out`` -- and I am not even a chartist, you are the one who trades on technicals.

At any rate, what these charts are telling us, I believe, will show up in the economy and in consumer spending before this year is out. And I think it`s going to be deflation of the housing boom in both prices and the number of new houses that will be built.

Here is your second chance to win that crate of Black Label. Though you were wise to not take my wager when we were arguing over the direction of the US Dollar and Gold, you might get lucky this time.

BTW, I hate to rub it in but the USD has since sunk further and Gold continues to head north, though there should be some (temporary) ``correction`` in the near future.

...SR

#220



1. Pardesi, the above in the 5 year chart for XOM, last quater it made a profit of $8.4 billion.

So would you say Lee Raymond deserves each cent of his $400 million compensation?