Economics of Disrespect .
17 Nov 2014
Loss of Respect has profound economic implications . Severe loss of income , capital and heads .
Who do you Respect ?
2.Once respect is lost , laws are no longer obeyed .
Taxes become nearly impossible to collect except at armed-robbery level .
2.1 Modern West : The Governed had withdrawn consent . http://en.wikipedia.org/wiki/Social_contract (Democracy by vote)
2.2 In China , Mandate of Heaven played the same role . http://en.wikipedia.org/wiki/Mandate_of_Heaven
“The Mandate of Heaven is an ancient Chinese belief and philosophical idea that god (天; Tian) granted emperors the right to rule based on their ability to govern well and fairly. “
2.3 Celts , norse , Vikings , Amerindians : “He has lost his Luck”
2.4 Ancient Egypt , MiddleEast , Right of Kings , etc : Legitimacy is bestowed by the god(s) . After many disasters , the Gods have turned against him (Cf Akhnaton)
3.If the ruler does not perform , he (or his dynasty) gets the old heave-ho .
The mechanisms vary as per the society , but is exceptional that a whole population will follow a ruler into extinction .
4.The steps :
4.1 Loss of Respect .
4.2 Loss of Fear
4.3 Active Defiance
4.4 Refusal to pay Taxes .
4.4.1 Diversion of Ex-Taxes into Alternative Economy (this is Black Market , smuggling , informal sector , etc)
4.5 Armed resistance to tax collectors .
4.5.1 This is funded by higher returns from efficiencies of informal sector . Near zero overheads .
4.6 Guerilla War
4.7 Full scale rebellion .
4.8 New Dynasty/King/President/Chief .
4.9 The cycle repeats .
5. New Alternative Economy : The Ostrum Principles .
The old formal Sector is simply ignored .
6.Estimate from fundamental principles :
If present societies are somewhere on the scale of 4.4 – 4.7 as above , then one would expect tax evasion to be fairly mature .
If the old society still exists , it must still have access to taxes on the Reserve in the economy . That is 1/3 of Real GDP
Estimated Real Global GDP (2014) : $233 Trillion .
6.1Formal global GDP 2014 (http://www.statista.com/statistics/268750/global-gross-domestic-product-gdp/ ) $77.6 Tr (1/3)
6.2Informal Global GDP est from Reserve Principles( https://www.academia.edu/6257841/Infinite_probes_II ) $155.2 Tr (2/3)
6.3Total Global Economy 2014 $232.8 Tr (3/3)
7. Ostrum Societies are Terminators .
The cycle does not repeat once this stage has been reached .
on how a true Terminator works . Terminators prevent a recurrence .
8.Ostrum societies outperforms traditional ones once the Dunbar Limit has been exceeded.
This displaces the old paradigms , as well as prevents any recurrence .
9. Historically :
Any minority group lording it over the majority always enforced Respect .
Examples are everywhere
Sir , Massa , Boss , Baas , Magister , etc , etc . As old and as nauseating as history .
They knew full well that any insolence is the first step to their ruin .
10. Where are we in Nov 2014 ?
Economic dominance is the frailest of masterships .
The coming Deflation is going to be bad for middle and upper classes that cannot adapt to the loss of large organizations .
See http://en.wikipedia.org/wiki/1920s_Berlin for an actual case history .
The Global Real Economy is in fair shape .
It is the upper levels of the old Economy that are in deep doo-doo .
11.The New Paradigm will gleefully feast on the old one .
“The tigers of wrath are wiser than the horses of instruction.”― William Blake
This exactly describes a post-revolutionary period .
12. What does all this mean ?
Revolution and rebellion . Respect has been lost . The rest follows .
13.If you are SuperRich , get unrich fast . Like Gates and Buffett . Sheer survival for their grandchildren
A multi-billionaire’s cautionary .
And the Bilderbergers , Illuminati , etc ?
Any Washington , Napoleon , Trotsky , Ataturk etc can and have seen them off .
George Washington made short work of the Illuminati
14. The ordinary person ?
Get any practical skill you can .
The intelligentsia have proven themselves incompetent to run even a simple society .
So the society will go simple .
Hairdressing will get you a job in any era . See http://andreswhy.blogspot.com/2008/04/combs-andre-willers-24-april-2008_30.html
Plumbing , nursing , beautician , any personal service .
Robots will be making everything . We are looking at a Leisure Consumption society with no idea of how to do it .
So , teach it .
This is what Kim Kardashian is doing . Pay attention ! You will need it .
See Appendix K .
Bespoke anything .
The notorious Kardashian Appendage .
The K Guide to Leisure Consumption .
From Kant’s secret manuscript “The Critique of Pure Un-Reason “ ,