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Friday, August 26, 2005

Problems That Just Won't Go Away

Like deflation in Japan, for example:

"Japan remains stuck in mild deflation, keeping a rein on the gradually growing optimism about the country’s economic recovery. The core index of consumer prices, which excludes volatile fresh food prices, fell 0.2 per cent in the year to July, according to government figures published on Friday – the same fall as in June. The core index for Tokyo – seen as an indicator of future price trends – fell 0.3 per cent in August, compared with a 0.4 per cent fall in July. Nationwide price figures show that Japan has remained in very mild deflation since the beginning of 2003, but with no real convincing trend suggesting an actual end to price falls."

I read this, as everything running steady, no important change in sight. Yesterday's news that export volumes in fact declined last month, though a detail, emphasises what a complicated picture this all is. Again in Japan, as in Germany, everyone is waiting for domestic consumpition to take the load, and I keep pointing out that there are good a-priori grounds for thinking this may not happen.

I am struck by the similarities between Germany and Japan, and by the way so many commentators seem to continually think that good times are just around the corner. These blog posts (here, here, and here ) show what a remarkable week it has been on the German front.

1 comment:

Lloyd Gillespie - Comments said...

Edward, the bigger issue here is the Boolean logic at the center of all nations financial contracts, whether Japan, China, U.S. or Germany, etc.. The modern world of computer trades has evolved to a state of logic programs in computers gaining and having the power of positive profits, beyond standard competitions of the past. Just as an example, derivatives alone are now larger than capitalism itself, if transactions turnover is the standard of calculation. These and other contracts are most controlled by automatic Boolean logic trades, simple if, and, or, get, go to, etc., etc.. This would be fine if there were offsetting competition against such trades, but most often this is not the case. These programs have become so sophistocated that they offer guaranteed profits against the entire capitalist system.

Now most will argue that even so the money has to re-enter the system. This is true enough, but when constitutional contract clauses protect financial contracts, as they certainly do in most countries, the money is moved from the least able to the most able, or from the have-nots to the haves. Boolean logic programs, world wide, are robbing entire democracies, etc., slowly and surely. Until the macro-economists recognize this massive problem, we are in for a steady march toward deflation by the excess system costs, debts, incurred against all nations political systems. Boolean logic just happens to be smarter than man, even though it's extremely simple. Yet, when combined with brilliant contract writers and computer programmers, it is a catastrophic power against the entire capitalist system, of moving wealth from poverty to wealth, yet incurring un-repayable debts along the way.

Just take a citizen in America alone. This citizen, of means, can buy such a dirivatives contract that is specifically written to opperate in as many countries as this citizen wishes. Say it's a combination interest rate and stock index contract. The Boolean code can be written to take advantage of the highest profit possible in any number of countries so specified. The contract doesn't lose on such trades because it is fully protected by also being written against the box, or using dual direction options. This is a win-win situation. The modern world has filled to overflowing with just such profitable contracts, and herein lies the true macro-economic problem for all nations.

Boolean logic and computers have outsmarted us and the entirety of capitalism. We must change this macro-dynamic befor it bankrupts the entire world through deflation and more excess debts, this very logic dictates. Now you may think this is fear. No, it's not because I don't even care at this stage of the game as I have been writing about these things for so long. I full well realize the world doesn't want to listen to the truth, they want to be entertained, plain and simple. I'm not very entertaining, I'm too real, yet I think it was someone who said, "The truth is something no one will listen to.", and also Monbiot said, "Tell someone something they already know and they will love you. Tell them something they don't know and they will hate you."

We must write new logic systems into international laws, or new international constitutions, to overcome the diabolical power Boolean logic has attained.

Macromouse - Completeness