Reader Thoughts On “The Fields Of Winter Rye By JC Collins
Onrgaia “The upcoming SDR University…”
What? Did I miss something you wrote? Not possible. I read EVERYTHING you write.
Jcollins That was the first seed. It should have said SDRF University. More to come.
Susan Morris Great – thank you. That seems all fine and dandy, in the tertiary economy. But what about the primary economy – the biosphere?
How can playing around with figures bring back the species loss and the diversity we once had? More economic development along the silk road means using up more resources?
How can we `invent` more resources?
Susan Morris Thank you Mr Collins. I see now. I see very well.
You never did answer my question about the laws of physics, and achieving balance, and here you’re telling us that we just have to put our faith in the utterly, utterly ruthless people who made the world turn out this way.
It did NOT have to be this way, and you avoid some difficult topics:
Maybe you were ‘got at’? Either way, I consider your optimism disingenuous.
Jcollins Pretty impatient there Susan. Sometimes it takes me a while to read and respond to comments. And some times a few slip through the cracks and I forget to get back to them. I’m glad you now see though.
My focus is mainly on macroeconomics and some esoteric philosophy.
Of course the environment is extremely important and any future growth would have to be handled with responsibility towards that end.
And my approach is neither optimistic or pessimistic. It is factual. Sorry you feel the way you do.
Dottie Derewicz I appreciate JC’s factual content. To me, nothing is black and white. Facts are facts; this is how I approach things. I am happy there is someone out there who is giving us the facts. There aren’t a lot doing so..many are just selling gold.:)
Dottie Derewicz Yes, we are losing a number of species because of man’s assault on the environment. The arrogance of those that are controlling the weather is beyond my comprehension.
What motivates them; I have no idea. But instead of attacking someone who is trying to get to the facts of the economic situation of the world I think we really need to take a look at who imo is responsible for the assault on the environment.
I know many folks may not know what is going on as far as weather control is concerned, but I don’t take that as an excuse. You have eyes and you can look up.
There is tons of information on that out there and it is readily available to read by anyone out there who takes the time to do so. Of course, you have to be able to disseminate between fact and sensationalism.
Are the people themselves doing anything or are they sitting and watching the newest reality show or wondering why Bruce Jenner decided to become a woman. Do you know that is all that is in the news?
We have serious issues and people will ignore them and get caught up such things are Kim Kardashian and the fact she is expecting a baby again and Bruce Jenner who decided he would rather be a woman.
What is wrong with the people in this nation? And here we have someone who wants to give people a service such as JC is doing and we expect him to take on every problem that exists in the world.
Where are the masses in this? And quite frankly why would you not expect a scientist or someone in that field to not be leading the charge in this? I am just perplexed and frustrated with people. And JC just keep doing what you are doing.
Jcollins Thanks Dottie. I appreciate your support and encouragement.
Dottie Derewicz You are welcome and I am sorry that we are being distracted from your wonderfully written article above.
Ozymandias Mr. Collins: The raw material resources within the USA have been sold off at an accelerated for the past two decades to numerous foreign owners. China has been purchasing massive amounts of agricultural lands and municipal assets west of the Mississippi River.
The west regions of the USA are replete with “Duty Free Zones” to get access to cheap electrical energy, cheap water, and cheap lands without paying one $0.01USD in taxes or local infrastructure cost.
Therefore, I am intrigued to know from where will the resources originate in order for there to be an “increase in nominal GDP growth” within the USA economy to offset the tens of trillions in $USD debt? Best Regards, Ozymandias
Jcollins The increase in nominal GDP growth doesn’t have to offset trillions of debt. It is a balance of debt-to-GDP ratio, as explained in the article. Any production within the US will contribute to an increase in GDP.
Daneackerman What happened when American money went to other countries to outsource labor? Didn’t they use the raw materials in the country where the cheap labor was obtained? An old saying comes to mind something about paybacks.
Take a look at this article referencing the top 10 American corporations who avoid taxes.
“The west regions of the USA are replete with “Duty Free Zones” to get access to cheap electrical energy, cheap water, and cheap lands without paying one $0.01USD in taxes or local infrastructure cost.”
If you check this link going down the page you will see a whole list of countries with free trade zones.
I recall watching a news report with Diane Sawyer who was interviewing a Chinese business owner who was running business in Detroit. He expressed that the corporate budget for US taxes was 45%! To this day I have not found a large US company doing the same.
But I was able to find this article talking about China rolling back similar tax breaks promised to US companies for land purchases and the like. The probe in this case was with Microsoft. Sure you could take off running with OMG now whats going to happen but the intent is to show that US companies are no better than any other.
“China pulls back tax breaks for foreign companies”
Dottie Derewicz JC did you see the article in Zero Hedge. I can certainly understand the debt-to-GDP ratio, but when exactly does that become out of control..when crisis happens and the growth plummets.. is that where the mechanics of engineering come into play?
I am just an inquiring mind that is a bit puzzled if it could get to a point where it doesn’t work anymore? Am I missing something here that enables it to never fail or am I not understanding which is very possible..:)
Jcollins The whole mechanics is really based on confidence. The dollar can be printed forever as long as there is still confidence.
The challenge America has is that the dollar will not be the only game in town soon. Confidence will remain but it will be spread further, and some of that confidence will come indirectly through the SDR. The debt doesn’t need to be eliminated.
The balance between debt and GDP just needs to be more balanced. The logical mind tells us that debt is bad. And it is. But as long as we have this form of monetary system, the debt will continue. It just needs to stay in balance with growth. Sustainable debt is different than unsustainable debt.
Since the USD is the global unit of account, and the US can print as much as they want, the debt would always be sustainable, because the rest of the world would carry it.
But the SDR and the rise of Regional Currency Units will change that and force the US to make their debt more sustainable again, based on multiple units of account and one large unit of account, the SDR. They did it after WW2 and can do it again. Does this help?
Jenifer Lytle The “balance” got way out of hand with the US printing as much as they want (mostly to finance proxy wars since we have nothing else to show for it really) and forcing the emerging markets to absorb this debt to make it become “sustainable”.
It just took this long for Russia, China, India et al. to get a foot hold in the global market so they could stand together and implement a different system whether the US likes it or not.
Somebody had to take the credit card away from the spoiled child, eventually. Hopefully this tightening of the monetary policy will speed up the rise of the philosophical class in the US.
Dottie Derewicz I really like that statement Jenifer.. “Somebody had to take the credit card away from the spoiled child”, love it!
Dottie Derewicz Thanks again, JC. I have a mind that just seems to think up questions all the time, so I hope I am not too much of a pain. Yes, this does make sense. And keeping things in balance is something that will be a big change for the US for sure.
The USD being the global unit of account was the part of the equation I had not put in, and the most important part of the equation. Hopefully through all of this it will also create a sense of competition in the US.
Ozymandias You are correct. However, will it not take a staggering amount of growth in GDP in order to have any appreciable impact and inprovement in the USA’s debt-to-GDP ratio?
Jcollins Sure, but it’s doable. They did it after WW2. The debt-to-GDP ratio is lower now than it was then. Source: tradingeconomics.com
daneackerman JC would an influx of tax paying citizens in the US raise its GDP? If so, its very possible that it can happen rather quickly. The US has been trying to legalize a bunch of illegal resident aliens already living in the US.
So if there is a way to get this to happen….to make them all tax paying citizens would this be sufficient to bring the debt to GDP into balance?
On the other side of that coin we can also see a debt relief in the form of cuts to illegal alien budgets perhaps.
When it would happen this would also put a lot of new working class people into the Affordable Healthcare Act or if they didn’t want that they could pay the tax penalty.
Either way this portion would be a tax revenue increase above and beyond the regular taxation of money earned from personal time and labor added to the taxable US work force.
An article I read yesterday said that China either is or is considering making Chinese citizens pay Chinese taxes for their wages regardless of where they lived and worked in the world. This would lead me to think that the US is not the only region in town trying to increase tax revenue.
Also China is rolling back tax breaks to US companies doing business in China so it seems they are looking for ways of increasing their tax revenue as well.
But going back to your interview with Jim Rogers and him speaking of agriculture both literally and metaphorically then people could be the crop…well taxation of the people could be the crop I guess and for that crop to be lucrative it would take tax paying people right? ‘
Those tax paying citizens literal product would be crops which would be an increase in agricultural output. Is this somewhat plausible?
Jcollins Yes Dane, I believe it could be. As the rest of the world modernizes and emerging economies become developed, there will be a large demand for growth in agriculture. Some countries will become food superpowers.