14 Dec 2014
Exchange controls are taxes that defines boundaries . Negative taxes are portals through boundary of State or Cell .
1.Biological Analogue :
A cell-wall can be seen as a border , and receptor sites as custom posts . Taxes then vary from 100% (ie don’t allow in) , to minus infinity.
A minus infinity receptor site is essentially wormhole through the cell wall .
Normal values would be more like Tax = -100% , ie subsidies . A cell portal .
2.Why the analogue ?
Because we have some large numbers to play with . Hundreds of millions of years and trillions of cells .
Then we can use the General Reserve arguments .
http://andreswhy.blogspot.com/2013/02/fat-icons.html Why Buddha is fat and thin
QuickStats: Mean Percentage Body Fat, by Age Group and Sex --- National Health and Nutrition Examination Survey, United States, 1999—2004
3.Risking the reserves :
The argument is fractal .
So , there are optimal ways of risking your reserves.
Reserve at increasing levels of risk .
(1/3 ) 0.33
4.Risk levels .
From below , RSA tariff rate ~0.08 (8%)
Risk level per country .
5. Below are countries that subsidize imports (ie negative taxes) :
The reserves are hidden in trade in-transit . A dicey business .
Like the large fraction of the Universe’s energy in transit with slingshots .
Very little agricultural land (2.7% of surface) http://data.worldbank.org/indicator/AG.LND.AGRI.ZS/countries
Food imports is 6% of imports . http://www.nationsencyclopedia.com/economies/Europe/Norway-INTERNATIONAL-TRADE.html
What do they live on ?
Ho-ho-ho ! Norway has , in true Viking tradition , given the EU the finger and done their own Quiet Revolution quite a while ago .
Canada , Mauritius 4.4
Hong Kong , Macao , Singapore , Switzerland ~10 (0% tariffs)
South Africa - Tariff rate
Tariff rate, applied, simple mean, manufactured products (%)
Tariff rate, applied, simple mean, manufactured products (%) in South Africa was 7.46 as of 2011. Its highest value over the past 23 years was 16.94 in 1993, while its lowest value was 6.71 in 1999.
5. Optimal tariffs for nation states .
This seems to be at risk level 3.333
This gives Average Tariff of 2.5 % unless the financial authorities know what they are doing . (Not the general case)
6. Note , that it is not free-trade .
Boundaries , hence tariffs are necessary .
Note that the countries with very low tariffs have other reserves . (Except Norway , where there a strong suspicion of some creative accounting)
Free trade will , and has , destroyed countries without adequate alternative reserves . Eg Argentina 1914(beef) , coffee , cocao , oil now .
7.Minimum tariff is 2.5 %
Notice the similarity to 2% inflation ?
See http://andreswhy.blogspot.com/2009/03/optimal-tax.html on how this is reached.
This means a price of about $40 for the cheapest producers of oil .
If clathrates come online , it will go to negative numbers . They will have to pay to clean up the messes of shale and oil .
What a gas !