Friday, September 30, 2016

Delong and mercy for a diddle diddle dumpling

Diddle diddle dumpling

Above, a retrieve from before the crisis of fall '08.
Sometimes you see more of a soul than you want or decency should permit. I find after viewing this ponderous cloud of a mind, I can take away only a shapeless emotion, a Rousseau-like pity for tubby little Brad the smart swaddled boy of Ivy privilege who has maturated into this gas-leaking tethered ideological blimp, a slightly chilly, mildly unpleasant but harmlessly sluggish university mammal, more the three-toed sloth than the orangutan of neoliberalism. Let us trouble him no more.

It's really simple, but somehow pwogs fail to understand the nature of transfer systems backed by the free source of all new dollars. You can only transfer real stuff produced today to a mouth or a warehouse. There is no other real saving or consuming. Anything else is paper chains that are as easily ripped apart as they are clapped on.

If I eat more today than yesterday, no one can go back in time and take it away tomorrow. And if they try to take it out of my next year -- I mean really take it out, that is, out of my real stream of goodies -- then the fight to stop it won't really be any the more difficult no matter what today's paperwork might say.
Rule one of corporate class exploitation: if they and their gubmint can take it away now, they will. There is no ease-off. You'll never hear 'em say "well, yeah, you cut your eats yesterday, so here's more today."
The Esau class needs to play by the same rules. Tomorrow's Esaus oughta consider it a point of honor to default on any inter-class agreements made today and yesterday.
They've got the right, based on the backside of the golden rule: it oughta be just as decent -- if not as easy -- as the corporate class default during these past 35 years on all of their post-WWII inter-class agreements.
We can always reverse any pact to cut future benefits -- and it will be even hard er to cut the the social security benefit stream than to restore the taxes that pretend to pay for 'em today.
The only part of Uncle's spending we job-class oriented lefties oughta fuss over is the transfer systems to regular folks and all the taxes on regular folks. And I mean, of course, today's taxes and benefits, and maybe next year's, but never ten years from now.
Uncle is not limited by the laws of prudent finance. Uncle is not a corporation, or even a California times ten.
Fellow avatars of Esau, take as much as you can from Uncle in cash right now and block as much of his taxation on you as you can -- right now. The rest is rabbit's-foot/black cat superstition.

Seeing stuff too soon, and from too great a distance, can make a snarling sniping growling dark-hole critter out of even the least asocial of us poor parlor pinks -- that is, if it don't make us completely into just another catatonic mute in the nation's basement.

@ sumner acolyte

You use the term  "Free trade "

Maybe that's just too ambiguous a label 
Be more precise 

Free of barriers quotas tarrilffs 
By any and all system agents 
From tax men to smugglers 

Trade today has one principal organizational vehicle 
The for profit private firm 
Can you say that mediator left to operate
Solely by its own self determined interests 
 Is an agent of free trade ?

Rents and interest like payments buried inside total payments to factors as lease payments creates the chimera of " real capital "

Beware the monstrous chimera masquerading as supply priced evaluations of factors of production..Class shares versus factor shares

What are production factors and how can they be commonly evaluated

Factors are real elements of real production systems
Big categories

Humans with skills and experience

Machines of certain types and functions


 fields  mines   Forests lakes streams rivers oceans And  land lots
Raw materials and natural products and powers
How to evaluate them ?

Existing  prices at market for their respective outputs
ever changing historically developing generated payments to factors
By mediating  organizers of production
Often called
lease rates
all of which may include arbitrage profits  wind fall profits innovation profits
....  pro tem  rents *

* ND
there are no pure rents
Because nothing over time has a fixed supply

Now we aggregate  by category
Then sum categories

There will be surpluses and deficits at the level of productive units

This residue should not be congealed into a factor
net revenue above factor payments
Come in stream
This stream can be projected and evaluated
But this is not the value of a real factor

It is not categorically like
the evaluation of a stream of  revenue attributed to a machine
Ie a sustainable lease rate
Or a assembly line worker

Now comes the human social division

Two big categories

Producer income  for the owners of human factors

And the income to owners of non human factors

This split is a class split

There is no technical determination of this split

It's a historical process

In a system of wage earning producers
Ie human factors paid by wage

The  split is a rate of surplus value

The revenues that  are surplus payments are not  factor payments

The sum of factor payments is not equal to aggregate social net revenue

This is more then a bit lacuna fied
But in short there is no productive factor called capital

There are capitalized factor payment streams
And that may get mixed with rent streams
In some monstrous hybrid
But strictly speaking lot payments  are surplus payments too

Not factor payments
Factor payments only cover the reproduction " costs "
Of the factor given that factors rate of consumption in use and over time

Lerner trade games

Assume a trading game
Re contracting continues
Until results conform to
Certain rules


Trades each period must balance

 QxP  for imports equals  QxP for exports

All Trade in and out runs thru a monopoly/  monopsony  cartel

    All proceeds from pricing adjustments  are returned to the factor owners in lump sums

To be continued. ....