(P&I) The Totalitarian Economist Handbook

Defunct Economists, Practical Men, Madmen, and Their Clients

Drama. Socialist governments and their economists have always thought that we should feed them and they insist on it by the force of arms and armed aggression where feasible (or not) which they also expect us to finance, and we often have  – if not without exception – obliged them and have acquired desperate client states not only today but throughout the last one hundred years, many of which are still with us today and have played one country off against another.

Moreover, that fact is not restricted to “socialist” governments because we’ve often – if not without exception – created and financed “fascist” governments as it might suit us – and that’s the reason we do it – it suits us and said us is all of us because there is no country in the World that has not been an aggressor or not had a client state at one time or another and the last one hundred years has produced a succession of tens of millions of bodies in partial payment because the balance has not yet been rendered and new sums are being added all of the time and nothing has changed as governments and politicians and demagogues drum-up some new reason for their excitement.

Make Food, Not War

Our cause for concern is not at all new; Mr. Keynes propounded it in 1936 but several generations of economists and redactors have debated its pros and cons and provided relief to any number of oligarchs.

But the bottom-line is what we said in our recent Post “(P&I) Our G20 Weekend and The Rush to India” – the G20 is a failure and it is abetted by the World Bank and the International Monetary Fund – none of which do what they say they want to do nor will they ever do it until they guarantee that the capital of an economy is the people in it, and that is the only guarantee that the balance will ever be paid in cash and not people.

The current situation in Greece and the Ukraine is quite desperate for the people in them and these are client states of the Euro Area countries and Russia, and the United States apparently wants a piece of that business (Bloomberg, February 10, 2015, Ukraine Peace Talks Could Be the Real Deal and RT, February 10, 2015, Obama calls Putin before Minsk talks to discuss E. Ukraine peace deal – White House).

Moreover, the current socialist totalitarian government in Greece is already looking for hand-outs and confiscating industry and the “we-don’t-know-what-it-is” government in the Ukraine can only “save” itself and its police, army, and bureaucrats, by war but to save the people, they need to look at the trade and the hard work that totalitarian economists are not used to doing.

The Client State – Better Call Saul

If the people of a country elect to be a “Client State” by force or will, then they need a good “attorney” who speaks for them and not their leadership – arms are a bad investment and their patrons have written them off – them that is, but not the arms or the debts; please see Exhibit 1 and 2 below.

Exhibit 1: The Client States – Better Call Saul

Figure 1.1: The Client States – Better Call Saul

Exhibit 2: Greece and the Ukraine – A Practicum By Right or Might

Figure 2.1: Greece and the Ukraine – A Practicum By Right or Might

For more information on The Barometer, foreign economies and trade, please see our Posts “(P&I) The World Trader’s Almanac” , “(P&I) The One World Food Bank” and “(P&I) La Francophonie & The Commonwealth“.

And for more information on real “risk management” in modern times and additional references to the theory and how to read the charts and tables, please see our Post, The RiskWerk Company Glossary and “(P&I) Dividend Risk and Dividend Yield“, and our recent Posts “(P&I) The Profit Box” and “(P&I) The Process – In The Beginning“; and we’ve also profiled hundreds of companies in these Posts and the Search Box (upper right) might help you to find what you’re looking for, such as “(B)(N) TLM Talisman Energy Incorporated” or “(B)(N) ATHN AthenaHealth Incorporated” or “(B)(N) PETM PetSmart Incorporated“, to name just a few.

And for more applications of these concepts please see our Posts which rely on the Theory of the Firm developed by the author (Goetze 2006) which calibrates The Process to the units of the balance sheet and demonstrates the price of risk as the solution to a Nash Equilibrium between “risk-seeking” and “risk-averse” investors within the demonstrated societal norms of risk aversion and bargaining practice. And for more on The Process, please see our Posts The Food Chain and The Process End-Of-Process.

And for more on what risk averse investing has done for us this year, please see our recent Posts on “(P&I) The Easy (EC) Theory of the Capital Markets” or “(B)(N) The Easy (EC) Theory of the S&P 500“, and the past, The S&P TSX “Hangdog” Market or The Wall Street Put or specialty markets such as The Dow Transports & Utilities or (B)(N) The Woods Are Burning, or for the real class action, La Dolce Vita – Let’s Do Prada! and It’s For You, Dear on the smartphone business.

And for more stocks at high prices, The World’s Most Talked About Stocks or Earnings Don’t Matter – NASDAQ 100. And for more on what’s Working in America, Big Oil, Shopping in America or Banking in America, to name just a few.

Postscript

We are The RiskWerk Company and care not a jot for mutual funds, hedge funds, “alternative investments”, the “risk/reward equation” and every other unprovable artifact of investment lore. We have just one product

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For more information on RiskWerk, please follow the Tags or Categories attached to this Letter or simply enter Search for additional references to any term that we have used. Related data may be obtained from us for free in a machine readable format by request to RiskWerk@gmail.com.

Disclaimer

Investing in the bond and stock markets has become a highly regulated and litigious industry but despite that, there remains only one effective rule and that is caveat emptor or “buyer beware”. Nothing that we say should be construed by any person as advice or a recommendation to buy, sell, hold or avoid the common stock or bonds of any public company at any time for any purpose. That is the law and we fully support and respect that law and regulation in every jurisdiction without exception and without qualification to the best of our knowledge and ability. We can only tell you what we do and why we do it or have done it and we know nothing at all about the future or the future of stock prices of any company nor why they are what they are, now. The author retains all copyrights to his works in this blog and on this website. The Perpetual Bond®™ is a registered trademark and patented technology of The RiskWerk Company and RiskWerk Limited (“Company”) . The Canada Pension Bond®™ and The Medina Bond®™ are registered trademarks or trademarks of the Company as are the words and phrases “Alpha-smart”, “100% Capital Safety”, “100% Liquidity”, ”price of risk”, “risk price”, and the symbols “(B)”, “(N)” and N*.