Monday, November 17, 2014

Economics of Disrespect

Economics of Disrespect .


Andre Willers
17 Nov 2014
Synopsis :
Loss of Respect has profound economic implications . Severe loss of income , capital and heads .
 
Discussion :
1.Respect .
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2.1 Modern West : The Governed had withdrawn consent .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 (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 .
See

 George Washington made short work of the Illuminati
See http://andreswhy.blogspot.com/2012/03/george-washington.html


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 .
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 .

Insolently Yours
Andre .
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Appendix K
The notorious Kardashian Appendage .

The K Guide to Leisure Consumption .
From Kant’s secret manuscript “The Critique of Pure Un-Reason “ ,



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