Bankruptcy and Wage-earners

 This has nothing to do with politics or Trump, but with an opinion we discussed about bankruptcy. You have not taken bankruptcy nor have I.

However, bankruptcy as a safety net came about for good reason. Debtors’ prison cost the State and eliminated the productivity of the debtor. Similar thinking promoted bankruptcy as an encouragement to risk taking, in developing big things, or new innovation. Many of us have great ideas, but we lack the courage or desire to take on all that may be required and the risk. Some still see bankruptcy as evil but more likely seek a contract from which the contractee has no escape. Subprime mortgages or student loans for example. That said, some people thing that bankruptcy as a safety net is a good thing for development and the economy. 

 

As for wage earners, I looked this up because of our conversation. I did not believe wage earners were at risk from high stakes bankruptcy only the big guys like banks and investors who should know the risks.

 

“After bankruptcy, most debtors remain insolvent. The Bankruptcy Code therefore needs to establish rules for the distribution of the inadequate pie—how big a slice does each claimant receive, and in what order of priority does it receive that slice, before the pie disappears? The order of claims in bankruptcy is governed by what’s known as the absolute priority rule. In general, the Code provides that secured creditors are entitled to receive the entire value of the collateral securing their claims up to the full amount they are owed. Unsecured creditors, then, get to look to any remaining assets of the estate. But not all unsecured creditors are treated the same. Rather, the Code grants priority in right of payment to some. 

The order of claims in bankruptcy starts with creditors who provide services or goods after bankruptcy is filed. Creditors whose claims arose after the debtor filed for bankruptcy, for the actual and necessary costs of preserving the estate—usually have first priority. Other creditors whose claims Congress deemed especially “worthy” are then afforded different levels of priority. For example, certain employment-related claims for wages,benefits or the like, up to specified dollar limits, are entitled to payment before other unsecured claims are paid. Certain tax claims, though junior in the priority waterfall to the employment-related claims, are also entitled to priority over most other unsecured claims.” From Google

 

Trivial, but our discussion picked my curiosity over what I thought I knew. My book and the research dealt with some of this in an unpopular suggestion that some student loans be forgiven, those in default with the debtor unable to work lest all his or her wages be garnered. Unfortunately it would be the taxpayer, not the bank making near fraudulent loans to minors that would pay. Oh well.

Egalite

"Relating to or believing in the principle that all people are equal and deserve equal rights and opportunities," it does not mean equity. It means freedom to prosper based on individual attributes and freedoms. 

Our Constitution, our culture and English common law give equal rights under the law, freedom of speech and freedom of action within the cooperative structure and ethical bounds of Western Culture.

Egalite, fa French word rom the French Revolution, of necessity requires fraternity (cooperation), and Liberte (freedom) and became the basis for our motto of: Life, Liberty and Happiness.

Zbigniew Brzezinski

 In 1969, Zbigniew Brzeziński wrote, “The nation state as a fundamental unit of man’s organized life has ceased to be the principal creative force. International banks and multinational corporations are acting and planning in terms that are far in advance of the political concepts of the nation state.”

Our freedom and our Republic dies the death of a thousand cuts. This pronouncement by Brzezinski for-shadows the deepest cut of all. This authoritarian view repeats throughout history. The Royalists, during the American Revolution, held that only the absolute authority of King George and British rule could protect the colonies and their way of life. Subsequent to 1783, England continued her attempt to subvert our new nation. 

Democracies failed throughout history. Western nations succeeded to a degree with democratic institutions and freedom, but International Communism subverted or invaded country after country with totalitarian takeover. Back in the early times of Nazi Germany, US industrialists, Jo Kennedy, Charles Lindbergh and others believed that Germany’s organized emphasis on industrialization and production was superior to the chaos of America’s representative government and labor problems. Plato believed that Democracies ultimately evolved into Oligarchy. That sounds much-like, what Brzezinski proposed. 

Zbigniew Brzeziński, born in ;28, grew up in Berlin, '31-35 and Moscow, '36-38. the son of Tadeusz Brzeziński, a Polish diplomat posted to Germany, Russia and later Canada. When his father moved to Canada, 1938, Brzezinski earned his BS, 1949 from Loyola and Masters, 1950, from McGill in Montreal. His later PhD from Harvard, '53 and colligual relation with Kissinger set the stage for an academic career at Harvard, later Columbia, '53-'72. He served as council to LBJ, 1966-'68 and Jimmy Carter, '77-81. He organized the Trilateral Commission, '73, with Carter and Rockefeller. The creation of this unelected international banking and political entity created the very driving force for the resurgence of totalitarianism that Brzezinski spent a lifetime fighting against.

PCE

Personal Consumer Expenditure, PCE, should be somewhat reciprocal to CPI. The FED doesn't get it. Its not liquidity its velocity of liquidity that counts for the energy one feels on the street, the optimum felt at home and the per capita GDP.

With fewer customers, a restaurant owner has no choice but to raise prices. With supply chain problems the grocery store raises prices as well.

V x M1 = GDP. Velocity is rarely mentioned, much less understood. The only chart I've seen was from the St Louis Fed. Furthermore, a very small increase in velocity results in a great increase in personal GDP. Look at the numbers.

Choking the PCE to check inflation, is like training a donkey with a 2 by 4. The donkey will only become compliant when spread eagle, unconscious on the ground.

Burden of Major Disease Fatalities

TB, 1.6 million with 10.6 million active cases

Malaria, 619,000 with 241 million cases

HIV, 650,000 with 38.4 million cases

COVID, 3.3 million with 225 million cases

Syphilis, 300,000 neonatal and infant deaths

Eric Holder’s Book

Eric Holder served as the 82nd Attorney General of the United States from 2009 to 2015 under President Barack Obama. 

A review of his book at the book store reviled and championed the Liberal view of Democracy as a vote of the nation wide majority in contrast to our Constitution wherein Democracy happens within individual states and the states then cast the votes. 

Our founders argued at length to create a constitution that brought the states together in the union of United States. Some states being more populated, the Constitution protected the smaller states from the tyranny of the majority in larger cities with interests often contrary to many states. Eric’s book reflects the liberal disregard for the Constitution in favor of a national vote that places big city interests ahead of the States. 

The book defines the polarity between political interests most clearly.

Our Unfinished March: The Violent Past and Imperiled Future of the Vote-A History, a Crisis, a Plan, by Eric Holder, and Sam Koppelman 

Francois Rabelais

 Yes, you are correct. Francois Rabelais was not only a writer and a humanist, but he was also a trained physician, and he was known for using humor as a tool to treat his patients. He believed that laughter and humor were essential for maintaining good health and that they could be used to alleviate physical and mental ailments.

In his medical writings, Rabelais often used bawdy and irreverent humor to convey his medical advice and observations, and he also incorporated his knowledge of classical literature and philosophy into his medical teachings. Rabelais believed in the importance of the study of the human body and its functions, and he made significant contributions to the field of medicine through his writing and practice.

Rabelais' approach to medicine was unique for his time, and he was considered one of the greatest physicians in history for his innovative and humanistic approach to treating illness.

From ChatGPT. Writes with good style

Sydenham and the Gout

 Thomas Sydenham (1624–1689). One of England’s most highly regarded physician, Sydenham believed in direct observation and the power of reason. Like Hippocrates, he charted the course of disease. He believed in credible signs and symptoms and differential diagnosis. Sydenham also suffered from gout and so felt a deep compassion for others. He proclaimed that gout attacked the rich more often than the poor, and that it rarely attacked fools.  He has been quoted as saying that “those who may choose may except the present writer,” and “If you drink wine, you have the gout, if you do not drink wine, the gout has you.” Too bad Sydenham was unaware of the autumn crocus/colchicine.

“Gout attacks such old men as, after passing the best part of their lives in ease and comfort, indulging freely in high living, wine, and other generous drinks, at length, from inactivity, the usual attendment of advanced life, have left off altogether the bodily exercises of their youth. Such men have generally large heads, are of a full, humid, and lax habit, and process a luxurious and vigorous constitution, with excellent vital stamina” 

When you explore the molecular biology of gout, you will see a high level of coffee like stimulant in continuous circulation due to an inborn error of metabolism.  Many kings, generals, professors, many of these famous doctors and possibly a recent US president share Sydenham’s hyperuricemia.

Sydenham was first a cavalryman/officer on the side of parliament in the Protestant Civil War (1642–51) His works include The Method of Curing Fevers (1666–68), Observations of Medicine (1676), Letters and Replies (1680), Dissertation on Smallpox and Hysteria (1682), Symptoms of the Newly Arrived Fever (1686), and The Process of Healing (1692), his textbook of medicine most widely read and republished.

Sydenham made efficacious use of laudanum and Peruvian bark (quinine) and diagnosed erysipelas and “Sydenham’s” chorea (St. Vitus dance). 

A strong proponent of the Hippocratic method, advocating primum non nocere (first, do no harm), irascible and controversial, Sydenham earned his reputation as a great physician and internist after his death.

Capital Divergence

 Economists call the extreme liquidity flow and concentration of wealth in the hands of a relative small elitists group, Capital Divergence. The elite may be fascist, socialist, multinational, technocrat, banker or oligarch. Their sequestered capital, whether earned or ill-gotten, no longer changes hands within thé resulting stagnated economy.

A Sectoral Balances equation by Godley and Cripps, a formula taught in probability second-year economics where: S = domestic savings; m = imports; x = exports; I = investments; g = government spending and t = treasury revenue.

           S + (m-x) = I + (g-t)   

Middle class Savings + trade deficits = foreign Investment + government spending, a stagnant economy and inflation. Ross Perot called it a giant sucking sound.

The formula shows a balanced accounting, but when you look close, shows the massive liquidity flows resulting from foreign trade imbalances.

Liquidity flow from trade deficits come from consumer-savings and, the money no longer exchanging hands within the consumer market. Wealth from the middle class migrates to investment banking, multinationals and foreign enterprise as Investments in the equation. With reduced economic velocity, stagnation, and fear within the the consumer and small business economy, less revenue goes to the Treasury, t in the equation. Thus, the government prints more money, g within the equation, resulting in Inflation.

All the while, a small internationalist plutocracy and foreign interests grow rich off the back of the waning American economy.

We can make the argument that Capital Divergence lead to the slow cycle of depression, wars, revolution, poverty, pestilence, mass migrations and the fall of civilizations. The historian might see such a scenario in the end of the bronze age, 1177 BC, and others, once you look.

Energy Equivalence

33.7 KW hour of electricity = one gallon of gas

@ .03 $ per KW hour, electricity would cost $10.11 = one gallon. Electric motors are more efficient than gasoline, however.

Electric motor > 85%

ICE <40%

§ >45%

$10.11 -45% = $5.90 

However, in most areas, electricity costs are mich lower than in California or Alaska, say $0.15 per KW hour. ($2.95)

Electricity costs an average of $0.16 per KW hour in Denver

Poverty

 Capital divergence, lack of health care, drugs and lack of education lead to poverty. Widespread poverty risks depression, revolution, war and a crumbling civilization. Poverty inevitably leads to government spending, control and inflation.