Category Archives: economics

What do we really want?- redux

This was one of my very first posts.  It seems so long ago.  It’s also more relevant today than it was then.  It seems like the right time to re-read this math.

It is about time that we finally face this question, isn’t it?   Shit and fan have already collided and the only unknown at this point is whether or not the splatter which covers everything will leave even the tiniest space to squeeze through or to make camp in.   The few who try to speak about the issue are exactly that: too few and perhaps they have lost faith in the rest of us to do anything at all, even though they can clearly see what is happening and they are trying to do the right thing by following the natural, human instinct to DO something .

Our generation stands of the brink of the next, the biggest and very possibly the most important change in the human condition, ever.  This is the first time in our collective history where all of us know where all of us are and how to communicate with any one of us.  In spite of the bitter taste in our mouths which is the by-product of what we have done to ourselves, we are also waking up to something totally new and it is good and sweet.  We all carry with us this new sense of us – the real us: all 6.8 billion of us give or take, not the very old and tired version of “us” based on political boundaries.  If a sentence, an idea or even thinking includes an “us’ and a “them”, then that isn’t the real “us” because there is no “them”.  We are all we have and we have such an incredible opportunity to restructure what we do and what we think we know into something that works, if we really want to.  It is incomprehensible to look out upon our world and see almost everyone doing NOTHING about the only thing that really matters; the tiny speck of time that we are here, alive and human.  The machinery that runs the day-to-day life of humanity fell apart completely and yet we don’t even ponder the significance of the moment.  We simply watch everything that we think we know crumble around us and do what?  Wait to see what happens?  Hope that someone will figure out a way to fix the world that we created and which shatters our very humanity but which we refuse to let go of?  There are enormous pockets of people everywhere who are angry, or terrified, or depressed or just plain lost, and not a one of us can spark a conversation which contemplates something different?  Is it because what we are angry about is that “I never got my turn to enjoy money and success?” Is the thought that we might actually become inspired to do something new which would do away with money as we know it what terrifies us? Could it be that what we are depressed about is the harsh reality that nothing we’ve ever come up with to run our world has ever worked and even though we know better we can’t help but to covet money, because it’s all we know?  Finally, are we lost because we don’t know how to let go of our addiction to the concept of money and wealth and what it allows for us to do:  purchase other people’s envy and impose our will on those around us.  Is that it?  It this the best we got? Are we going to let everything that we are and have been and might possibly be, simply fade away into nothingness?  Have we become that weak and lazy and complacent and full of ourselves and so idiotic?  Have we become a world of pussies? If that’s what we want, that’s what we’ll get, unless we choose something different.

I think that we can do better and I REALLY WANT for us to have that chance. That’s a start.

So what do you really want?

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A SIMPLE, LITTLE QUESTION FOR “THEM”

This is a little rant that resulted from a fit I threw when I read that the IMF had officially explained that the cause of the global economic crisis was that “Americans had over-valued their assets and set off a destructive chain reaction of inflation and recession”. I was pissed.  Read on…

If any part of a mechanism that is defined by the sum of parts breaks, then the entire mechanism is broken.  Humanity is defined by the sum of its parts; this means that WE are defined by the sum total of each and every one of us.  Not by some of us, or by most of us and especially not by the “good” or “better” ones but by all of us.    Every single human being’s choices add to and become part of the definition of who and what we are:  what we have chosen to call humanity or humankind.  Regardless of this, there are those of us (let’s call them THEM) who will, in their imagination, consider this fact to be detrimental to, or in contradiction with or against the core beliefs held by THEM as separate from everyone else, kind of like a similar humanoid life-form, but different that everyone else; better, actually.  This disagreement arises because of an inequity resulting from the comparison between what the opening statement means and what THEY imagine it means and more specifically, how it can threaten THEM.  Truth is incapable of being a threat, harboring a threat or even being used as a threat.  This imaginary threat that THEY fear so much (the possibility that we are actually all the same) will rear up and attempt to defend itself by replying with “Why?” or “How?” and especially with “who are you to say that?”   First of all, any question which is answered with a question is an indication that the one questioning is made uneasy and fearful by the original question and attempts to question it in front of others in order to attempt to create doubt, by any means necessary, as to the validity of the question and by doing so as to have somewhere to hide.  An attempt like the one described would only validate the original question in terms of relevance, however this validation is not required.  The logic this truth leaves is the clear understanding that there are many of us because it is necessary, otherwise there would only be one.  The universe does not understand excess or mediocrity and because of that, neither should we.

We are faced today with a challenge without equal in our history, requiring actions not yet even conceived in order to negotiate our forgiveness from ourselves and allow for humanity to continue existing.  The challenge we face is the preservation of our humanity, the threat is that we have somehow come to believe and accept that humanity is the money that each human has or can get.  When this is subjected to the process called “the sum total of all the shit we’ve done to ourselves” you get results like the “economic crisis of 2008-2010”.

It has been explained by “experts” and people of “letters and knowledge” that the present “global economic crisis” was caused by the overvaluation of assets by Americans, which then allegedly set off a chain of events and actions which have led us to where we are today in September of 2010 which is:  scared shit-less and in panic.  Naturally, we believed this and immediately become scared shit-less and panicked if we weren’t already.  After all, “the experts” are telling us this and they know because they have a piece of paper that says they are an expert and they have been “validated” and “authenticated” by virtue of having claimed to be an expert before and not being dis proven as one, which is all that “being published” or “credentialed” or “noted and recognized” means, so they are unquestionably correct, right?

I’d like to ask those experts exactly just how does anything become overvalued?  We are the ones who assign the value of everything that has value and we can assign it the value that we want, so how can anything be “overvalued”?  This is like saying that someone is “a little bit pregnant”.   We are the ones who establish the value of everything and we are supposed to believe that we “overvalued” our assets?  Notwithstanding that to my mind, that the only proper definition of an “asset” is a small donkey or the buttocks of a child:   to proclaim, in front of everyone, that we are suffering one of the worst periods in recorded history because we screwed up our bookkeeping, is only slightly more self-insulting than it is asinine and idiotic.  Who exactly are these experts and how can they make such stupid remarks and keep a straight face?  THEY, are those of us who become “them”, as in “they say that the real estate market will bounce back” and “of course we overvalued our assets, they said so.”

“THEY” and “THEM” have been the source and cause of every ill we’ve suffered and given how badly we’ve suffered, it’s truly incredible that not one of us has come forward and screamed that there is no “THEM” and that’s is all just “us”.  We made THEM up and gave THEM life and authority and now THEY are literally killing us, and we forgot they’re not even real?

I’d very much like to have a talk with THEM, and ask THEM to please explain exactly how we, either individually or as a global civilization, can “overvalue” and “asset”.  Would THEY actually attempt to answer that?  They just might, it’s not like any of us are going to disagree from the looks of things.

We have to stop doing this, now.  I realize that it would mean admitting that we’ve been wrong about everything since forever and that we have come to believe  that deceit and trickery are the tools of success and that we’ve all lied our assess off for so long; but that’s okay; we can forgive ourselves and try this humanity thing again.  We can, really.  Now would be a good time.

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How to end recessions, bankruptcies and insolvencies.

Post Preface

In appreciation and gratitude to the readers of my Catalogue of Calculations, who have been my extended family for so long and at whose relentless insistence I moved everything to WordPress (after learning about this incredible place from Eitan, who I can never thank enough), I humbly comply with the multitude of requests to share Calculation #182324 “As to ending recessions, bankruptcies and insolvencies” with everyone else; and yes; I’ll also include the anecdote about the inspiration for the math.  To the entire lot of you, who have been there, doing the math, for so long; my thanks and my love pour out, and to those of you who may be wondering what the heck I’m referring to; I bid you a warm welcome to a family who simply put, shares the math. Enjoy!

Back in June of 2010, while driving home, I passed the abandoned construction site of what looked like a planned upscale community.  For just a moment, it took on the air and aspect of a scene from any one of the “post-apocalyptic” science-fiction movies set in the near future.  The development apparently suffered from a sudden and perhaps unexpected construction halt; probably in mid-2008, after everything in the world lost half of its “value”.  The partially built houses had an eerie aspect to them and the piles of construction materials still stacked here and there looked so much like a movie scene that it was freaky, then; all of a sudden I noticed a pickup truck parked in front of one of the lots and a man loading what looked like cinder blocks onto the bed of the pickup from a huge pile of blocks that were right next to where he had parked.  I became way too curious to let an opportunity for that kind of adventure pass, so I pulled off of the freeway and found my way to where the pickup truck was parked.  There was indeed a man loading blocks onto his truck, it was an old man, with that grizzly and weathered look that just screamed of grumpiness and opinions.  I pulled up behind the truck and got out, waving to the old man as I did.

–       “Hey there, old man, could you use a hand?” I asked.

–       “Well, I can’t do a whole hell of a lot with only one of ‘em, but I wouldn’t mind both of them for a bit.” He replied.

–       “Fair enough.” I said.

I started to help the old man load the blocks onto the truck and asked;

–       “So, what’s up with the blocks?  Are you building something?”

He eye-balled me up and down once and snapped back:

–       “What, are you a construction cop or an inspector or something?  Go give someone else a hard time, these blocks have been here for months.  As far as I’m concerned, they’re fair game.”

I loved this guy!

–       “I’m nothing of the sort, Sir; I just thought I’d lend a hand and got curious.  So, what happened here, do you know?” I asked.

–       “What happened?” he said, quite loudly, as if barking almost. “Where have you been? It was the damned RECESSION, that’s what!  It stopped work on this project in two days!  Damned recession!  Cost me my job, too, the recession did, and now it won’t let me find another one!”

I put on my best “what are you talking about” face and said;

–       “Recession?  A recession did all of this and took you job?”

–       ”You’re darn tootin’!” he replied (he actually said “darn tootin’!)

–       “It must have been a pretty big one, to do all of this.” I was dead serious when I said this.  “Heck, to do all this and take your job?  I must have been bigger than Godzilla! Did you actually get a look at it?”

I will never forget the look he gave me; as if he had just seen an alien or something. He became a little agitated, threw the block he was carrying into the pickup’s bed and walked right up to me.  He said;

–       “What the hell are you talking about?  Are you an idiot or something?  What do you mean Godzilla!  For Pete’s sake, are you serious?  This is no laughing matter! What, are you going to tell me that you haven’t noticed that everything is f****-up and that there’s no money, no work and everything has gone half crazy? What the hell is wrong with you anyway?”

I bumped my wrist against my forehead and rolled my eyes, in the universal gesture for “I’m such a dummy.” and said;

–       “Oh, you mean the economic recession?”

–       “Yes, the economic recession!” he retorted, mocking me with the mush-mouth voice.

–       “The economic recession did all of this?” I scratched my head and looked around. “Sir, you do realize that a recession is merely a mathematical formula that someone wrote down after they made it up in their head?  It’s a MATH EQUATION, it can’t do anything at all, it’s not alive, it’s not even a thing; it’s just numbers and symbols.  We are the ones, who give it life by believing that it’s a real, physical phenomenon; like a hurricane or a tornado, but it’s not; it’s just a mathematical equation.”

Before he could say anything, I was overtaken by an episode of what my wife has come to call “Pontification” and spent the next 45 minutes or so subjecting the poor man to a full-out lecture on recessions and other human creations that we have given life to.  When I finished, he wasn’t as upset as I’d expected, in fact, he understood everything I said and thanked me for taking the time to explain what I had just explained.  We shook hands, exchanged phone numbers and went about our business.  That encounter left me inspired, and when I got home, I sat down and wrote calculation #182324, which follows.

By the way, for those of you who don’t know me yet, this really did happen.  The “old man” who sat through almost a full hour of my unforgiving lecture with such grace turned out to be a pretty cool guy by the name of Joseph Teeter.  I told Joe I would be writing this, so Joe, if you’re reading it now:  How are you, you foul-mouthed old coot! I love ya’!”

CALCULATION NO. 182324

TITLE:       AS TO ENDING RECESSIONS, BANKRUPTCIES AND INSOLVENCY

DATE RECORDED:     19 JULY 2010

THE MATH SAYS:

Any and all recessions, states of bankruptcy and/or insolvency can be permanently eliminated with no collateral damage or residual effects.

RATIONALE:

All of us are terrified of the possibility that a recession may strike or that anyone can go bankrupt or become insolvent suddenly.  These things terrify us to the point of death, for many people have died from the physical reaction to the emotional trauma that we invite when contemplating or actually dealing with any or all of these things.  While we are all terrified at the thought of a recession, bankruptcy or insolvency, few of us have actually seen any of the three, much less all of them and the vast majority probably of us would not know if or when we might be looking directly at one, since only a select few of us actually know what any of them look like.

It makes no sense to live in fear and it makes even less sense to fear something that you could not identify or recognize in order to fear it (in fact, most people affected by any or all of the three are usually informed of its presence or existence by others.  i.e.:  Did you know that there is a recession here, now?  Or “Hey!  You’re bankrupt!”

Inasmuch as this is true, I feel it is my duty as a human being to introduce you to each one of them or at the very least, give you a photograph of each one, so you know what to look out for.  It’s incredible that no one has done this yet.  Not only do I consider the above my duty, I have the same duty to communicate to you that all 3 are mortal; they can be killed – as in dead – and to further show you how to kill them.  In this way, we can eliminate them forever.  Would you like to meet them?  Very well.

RECESSION

Allow me to introduce you to a recession:

R= [FOR Y/12]  →   (GDP<0)/(Q x 2(C))

Where

R= Recession

Y/12 = 1 month

GDP = Gross Domestic Product where GDP = C + I + G + (X-M) [GDP = consumption + gross investment + government spending + (exports − imports)]

Q = fiscal quarter

(C) = consecutive

Are you all right?  Okay, just checking.  For those of you who did the math and came up with the conclusion that a recession is born during the first month after two consecutive fiscal quarters of negative GDP, you would be correct.  Oh, and by the way; I don’t get it either; it’s rather sloppy math, isn’t it?

Are you ready to meet a bankruptcy and insolvency?

BANKRUPTCY

I’d like for you to meet a bankruptcy, as seen by Z-scoring:

(1.2*T1) + (1.4*T2) + (3.3*T3) + (0.6*T4) + (.999*T5) <  1.80

Where

  • T1 = Working Capital / Total Assets
  • T2 = Retained Earnings / Total Assets
  • T3 = Earnings Before Interest and Taxes / Total Assets
  • T4 = Market Value of Equity / Book Value of Total Liabilities
  • T5 = Sales / Total Assets

INSOLVENCY

Now, here is a young insolvency, just entering prime age.

D > p

Where

D = the sum total of an entity’s debts

p = the sum total of an entity’s property, at fair valuation.

There.  Now you’ve met them.  If you are thinking what I hope you’re thinking, again, you would be correct; all three are simply mathematical formulas that sprung out of a human being’s head.

Now that you can recognize them, we can proceed to section where you will learn how to kill any or all of them.

HOW TO KILL A RECESSION, A BANKRUPTCY OR AN INSOLVENCY

You would use this formidable weapon:

An eraser

It’s called AN ERASER.

METHOD:

You ERASE the formula from wherever the idiot who summoned one of them wrote it.

BONUS FEATURE:

This calculation has a bonus feature which was not originally planned when I started writing it about two hours ago.  If for no other reason than the inspiration present at this moment, following is a suggestion and solution to how we can prevent ANOTHER recession, bankruptcy or insolvency from being created and how to eliminate all possibility of a mutated, related or similar thing from ever being thought of again:

We write NEW math.

We can do better

www.ctwnow.org

Choose, don’t excuse.

Math courtesy of having QI

www.whatsyourqi.net

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What do we really want?

It is about time that we finally face this question, isn’t it?   Shit and fan have already collided and the only unknown at this point is whether or not the splatter which covers everything will leave even the tiniest space to squeeze through or to make camp in.   The few who try to speak about the issue are exactly that: too few and perhaps they have lost faith in the rest of us to do anything at all, even though they can clearly see what is happening and they are trying to do the right thing by following the natural, human instinct to DO something .

Our generation stands of the brink of the next, the biggest and very possibly the most important change in the human condition, ever.  This is the first time in our collective history where all of us know where all of us are and how to communicate with any one of us.  In spite of the bitter taste in our mouths which is the by-product of what we have done to ourselves, we are also waking up to something totally new and it is good and sweet.  We all carry with us this new sense of us – the real us: all 6.8 billion of us give or take, not the very old and tired version of “us” based on political boundaries.  If a sentence, an idea or even thinking includes an “us’ and a “them”, then that isn’t the real “us” because there is no “them”.  We are all we have and we have such an incredible opportunity to restructure what we do and what we think we know into something that works, if we really want to.  It is incomprehensible to look out upon our world and see almost everyone doing NOTHING about the only thing that really matters; the tiny speck of time that we are here, alive and human.  The machinery that runs the day-to-day life of humanity fell apart completely and yet we don’t even ponder the significance of the moment.  We simply watch everything that we think we know crumble around us and do what?  Wait to see what happens?  Hope that someone will figure out a way to fix the world that we created and which shatters our very humanity but which we refuse to let go of?  There are enormous pockets of people everywhere who are angry, or terrified, or depressed or just plain lost, and not a one of us can spark a conversation which contemplates something different?  Is it because what we are angry about is that “I never got my turn to enjoy money and success?” Is the thought that we might actually become inspired to do something new which would do away with money as we know it what terrifies us? Could it be that what we are depressed about is the harsh reality that nothing we’ve ever come up with to run our world has ever worked and even though we know better we can’t help but to covet money, because it’s all we know?  Finally, are we lost because we don’t know how to let go of our addiction to the concept of money and wealth and what it allows for us to do:  purchase other people’s envy and impose our will on those around us.  Is that it?  It this the best we got? Are we going to let everything that we are and have been and might possibly be, simply fade away into nothingness?  Have we become that weak and lazy and complacent and full of ourselves and so idiotic?  Have we become a world of pussies? If that’s what we want, that’s what we’ll get, unless we choose something different.

I think that we can do better and I REALLY WANT for us to have that chance. That’s a start.

So what do you really want?

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