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  1. Beauregard

    Alcoholism?

    Maybe Lviv needs chapter of AA?

    Rather than drinking beer, study, study, and learn from study:

    http://www.americanthinker.com/2011/08/the_revenge_of_the_gods_of_the_copybook_headings.html
    The Revenge of the Gods of the Copybook
    Headings *By* *William A.Levinson*

    All of our economic woes, more or less, have come
    from defiance of what Rudyard Kipling called the
    Gods of the Copybook Headings. These are the
    nonpartisan, scientific, and implacable laws of
    economics and human behavior on which Henry
    Ford elaborated as follows:

    Most of the wisdom of the world was in the
    copy books. The lines we used to write over and
    over again, the homely old maxims on which
    we practiced to obtain legibility of our p’s and
    q’s, were the essence of human wisdom.
    (Ford Ideals, 1922)

    The implacable laws in question include the basic
    economic concept that no system can deliver more
    value to its stakeholders than it produces. Ford’s
    mastery of these principles, along with what we
    now call lean manufacturing or the Toyota production
    system, built a multibillion-dollar enterprise and
    made the United States the wealthiest and most
    powerful nation on earth.
    Ford prospered by acting in accordance with the
    Gods of the Copybook Headings, while Kipling
    described what happened to those who went against
    them:

    We moved as the Spirit listed. They never altered
    their pace, Being neither cloud nor wind-borne like
    the Gods of the Market Place, But they always caught
    up with our progress, and presently word would come
    That a tribe had been wiped off its icefield, or the
    lights had gone out in Rome.

    The “Gods of the Market Place” refers to temporary
    fads like Dutch tulip bulbs, dot-com stocks, mortgage
    -backed securities, and, if the Obama administration
    as its way, carbon credits. These lesser gods of Kipling’s
    pantheon are temporary, ephemeral, and mortal, while
    those of the Copybook Headings are eternal and
    immutable. Kipling continues, In the Carboniferous
    Epoch we were promised abundance for all,
    By robbing selected Peter to pay for collective Paul;
    But, though we had plenty of money, there was nothing
    our money could buy, And the Gods of the Copybook
    Headings said: “If you don’t work you die.”

    Eight-thousand-dollar handouts to first-time home
    -buyers, $7,500 tax credits to purchasers of the General
    Motors Volt, and multibillion-dollar “stimulus packages”
    all sound like “robbing selected Peter to pay for collective
    Paul,” or incurring billions in national debt for the same
    purpose. The next sentence is even more terrifying in
    light of Bank of New York Mellon’s proposal to charge
    depositors

    http://online.wsj.com/article/SB10001424053111903366504576488123965468018.html?mod=WSJ_hp_mostpop_read

    to hold large sums of cash. The concept of negative
    interest suggests that the bank does not expect to loan
    the cash even at trivial interest rates, which suggests in
    turn that there are no economic opportunities to which
    borrowers might apply the money.

    The Great Depression was the opposite of the scenario
    described by Kipling because people had very little
    money. Anybody with the independent means to grow,
    mine, or make something could, however, usually get
    by. Farmers could, for example, often exchange food
    for vital services like medical care. This leads to the
    point, which Ford stated explicitly, that any society’s
    affluence relies directly on its ability to grow, mine,
    and/or manufacture things. Only with the products
    of mining, agriculture, and manufacturing can we then
    pay for services like medical care, news and commentary,
    and so on, along with entertainment that improves our
    quality of life.

    Our country’s problem is very straightforward, and it
    is quite likely that the investment community recognized
    it during the first week of August. There is a widespread
    delusion, which is shared by the numerous members of
    Congress, that it is possible to have an affluent society
    without growing, mining, or manufacturing anything.
    Senator Kirsten Gillibrand (D-NY) said openly http://online.wsj.com/article/SB10001424052748704500604574481812686144826.html
    That we can run an economy by trading in carbon credits:

    According to financial experts, carbon permits could quickly become the
    world’s largest commodities market, growing to as
    much as $3 trillion by 2020 from just over $100
    billion today. With thousands of firms and energy
    producers buying and selling permits to emit carbon,
    transaction fees for exchanges and clearing alone
    could top nearly half a billion dollars.

    No, Senator, a commodity is something you can
    eat (cattle, pigs, wheat, soybeans), burn to make
    energy (coal or oil), or use to manufacture something
    (iron, aluminum, and now rare earths that are
    Unfortunately controlled by China). Carbon credits
    have less intrinsic value than baseball cards, collectible
    comic books, and Dutch tulip bulbs (an investor who
    lost his life savings on those could at least plant them
    and have tulips) and are therefore not commodities.

    To this may be added the president’s belief that we
    can build a “green economy” on “renewable energy.”
    There is nothing at all wrong with green manufacturing;
    Henry Ford made enormous profits, paid higher wages,
    And lowered his prices simultaneously by eliminating
    material and energy waste from his processes in an era
    with few if any environmental protection laws.

    The problem consists of subsidies or mandates for
    *cost-ineffective*renewable or green energy sources.
    If, for example, Mr. Obama’s friends and campaign donors
    http://webcache.googleusercontent.com/search?q=cache:4UnAnsNyntQJ:www.opensecrets.org/pres08/contrib.php%3Fcycle%3D2008%26cid%3Dn00009638+%22bundled+contributions%22+%22general+electric%22+obama&cd=1&hl=en&ct=clnk&gl=us&source=www.google.com
    at General Electric could make cost-effective solar panels
    or wind turbines, they would not need government
    subsidies or mandates for the purchase of their products.

    If delusions like “green economy” and “carbon permits as
    commodities” represent our country’s understanding of
    basic economic science, it comes as no surprise that investors
    don’t want to stay around when, as Kipling concluded:

    And that after this is accomplished, and the brave new
    world begins When all men are paid for existing and no
    man must pay for his sins, as surely as Water will wet us,
    as surely as Fire will burn, The Gods of the Copybook
    Headings with terror and slaughter return!

    *William A. Levinson, P.E. is the author of several
    books on business management, including content
    on organizational psychology as well as manufacturing
    productivity and quality.*

    Read more:
    http://www.americanthinker.com/2011/08/the_revenge_of_the_gods_of_the_copybook_headings.html#ixzz21erMNdS<http://w

    Reply

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