Wednesday, 19 September 2012

Romney & Obama - a dearth of riches

In the US it's another bout of Let's get ready to ramble* (* with apologies to Michael Buffer) and let's agree, to date at least, not much has been forth-coming from either Presidential-hopeful; the incumbent or the challenger..US voters, ordinary men and women in the main, are faced with a damned if you do, damned if you don't leadership conundrum.

Yes it's easy, as an outsider, to point fingers. There are, of course, many constraints, mostly real, some imagined. Even so, there are too many inherent failures on both sides of the political-farce to lend much hope for a US economic revival in either the short or medium -term. The combination of party ineptitude and the untidy, less-than-witty presentations of their chosen presidential - spokesmen doesn't fill many with much enthusiasm and therein lies the rub.

Perhaps less articulate than he's given credit for, most market-participants grudgingly agree, in broad terms perhaps, with Marc Faber's assertion that the Fed's policy of printing money will 'destroy the world'. The FED therefore, by definition, cannot lend-lead the US economy out of decline. I say lead because that's whats needed here. Leadership is seemingly a global commodity in short supply... Sound political leadership; effective government; restraint on political-pandering and a good deal of strategic forethought is the only hope for the millions of Americans who find themselves either unemployed or under-employed.

Half-way around the world, in South Africa, we face a similar situation, only less dynamic. Leadership, as a concept, is a premise long since lost. Entitlement, corporate ineptitude in the face of crisis and political philandering is commonplace, if not entrenched. It's symptomatic of self-absorbed-largesse, the excesses of the elite and like everything else and without belaboring the point, usually at the expense of the ordinary citizen.

Monday, 3 September 2012

Taxing Paul to stimulate Peter to pay Paul..

Order in the Financial System is as fragile as the atom; the hitherto basic unit of matter. Paradoxically, the word 'atom' is derived from the Greek word atomos or 'indivisible', which is, as we know, not exactly accurate.      

Now, if the ancient Greeks gave us atomos and the Romans gave us fissio or 'fission' and modern Greece gives us sovereign ineptitude; is modern Italy the next economic catalyst of global consequence? If today's Financial System, against which we measure modern evolution, is wholly reliant on stability to hold its form, would it be foolish to imagine a systemic financial fission in our immediate future? If change comes from crisis we could, as we speak, be witness to the dawn of a new financial energy.

If the System taxes Paul to stimulate Peter to pay Paul which is as it is, why shouldn't Paul have the option to write down Peter and pay less tax? If the Financial System has promised Peter that he could be Paul with a little stimulatory luck, then the System needs Paul to make good its promise to Peter even though Peter can never be Paul. If Paul needs Peter or he wouldn't be Paul but Peter and if Peter becomes Paul then Paul is no different from Paul and shouldn't be taxed because Peter is no more.. Now if Paul is not Peter and Peter can never be Paul then Peter lives under a financial illusion conjured up by the System. Seems to me things would be far easier if Peter stayed Peter and Paul was left to be Paul because only the System says Paul is better than Peter..