A couple of days ago I said something about a circular connection between spending and income. I want to make your Saturday a little bit less boring by elaborating on the basics for our current economic disaster. I promise this will be better than cable TV.
--- There are three fundamentals to Macro-Economy: the Donut, Defcon 5, and DaVincis cloth or as I call it the 3 Ds. Lets start with the donut which best represents the interrelationship between employers and employee. No matter how you want to spin it, goods are ultimately being bought by people if you go all the way to the basics. Yes, yes, I know, Toyota buys some stuff from Bosch or some other supplier. But where does the car end up if the economy is working in the hands of the car buyer.
--- Ultimately and again abstracted to the basics the monetary flow is between the employers and the employees, think about it. The money you earn and receive I dont care from corporations or from people eventually goes back to the corporations, likely not the same, but that doesnt matter. Why am I telling you this? For two reasons: First because I want to make clear even for the aliens in area 51 that both the employer and employee are equally important for the economy. --- Next, if one is taken out of the equation whether this is the employer or the employee the entire economy falters. Do I make myself clear?
--- Sure, there are other factors that may influence the equation, credit for one, at least what the purchase of investment goods concerns, for example cars or houses that last over years. In other words, if a significant number of people are out of a job, the DEFCON 5 alarm should sound and action is to be taken the sooner the better. The same applies for corporations. If major corporations are allowed to fail, we better sound alarm. If we do not, we all will wear DaVincis cloth. Nothing. Unless of course we find somebody willing to barter html-code for food.
--- While this may be familiar to you, it is clear that area 51 by now you know my code word for Washington- lacks the intellectual flexibility as Nobel Price winner Paul Krugman puts it to deal with it. They think it is funny if you are out of business.
--- Now lets go and beat a little around the Bush. He finally did it. After first agreeing with Democrats that the car makers should be given a bridge loan, he went on a two weeks legacy project trip, Iraq. Next, he started production of his Barney Legacy Project well take that with a grain of salt. --- On Thursday he said he hadnt made up his mind. --- Finally, on Friday the Legacy Project took over and he agreed to do something for the car makers. Looks like Carl Rove told him he would look like Dr. Kervorkian if he doesnt. But not without demanding that by March 31, 2009 the car makers prove that they will be viable, whatever the definition. --- Problem: we are still in a recession, credits are hardly available, and for all we know, that will be worse in the first half of 2009. By the way, according to press reports, Chevys VOLT is on schedule. Indeed, in Germany, GMs Opel Division came out with a new car, the Insignia, and is running overtime to satisfy the demand.
--- Now, lets look at Goldfinger, the Illinois Governor for a moment. He actually could not shut up, as his attorney told him to, but had to hold a press conference. Blagojevich assured the audience that he was innocent and would be vindicated. In the words of the FBI: that statement was insufficiently reliable. Translated: if you buy that you get one free.
As we mentioned earlier, Blago had hired an attorney, Ed Glenson, in Chicago also known as Devils Advocate, which begs the question, who is the devil. --- There is an aura around Ed Glenson. He suffers from dystonia a neuro-muscular disorder that requires him to use a scooter. His lawyer opponents claim that his limp gets worse every time he is before a jury. But then that is just jealousy.
Anyway, Glenson claims the warrant for the telephone bug was obtained illegally. I wouldnt be too sure. What is so puzzling is that neither Blago nor his attorney ever denied that Blago actually solicited money, or as the statute puts it: value. Under the statute that is sufficient to establish a crime.
--- I take it you are familiar with DaVincis work, in specific his Mona Lisa, the painting that hangs in the Louvre. Have you ever wondered why she has this devilish or knowing female smile on her face? I solved THAT age old problem! When DaVinci painted her, he had a sketch of the DaVinci man hanging on his wall, hanging pipi and all.
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