Wednesday, 15 June 2016

A Policeman's Lot is not a Happy One

Blog 35  A Policeman's Lot is not a Happy One

There have long been two types of police force.  1. what we might call "democratic police" to protect the demos, the people, from the law-breakers, and 2. what we should call "political police", to protect governments from their people.

Democratic police. Political police.

In the increasingly divided societies we are seeing in the daily news this century (Syria, Egypt, America, are examples), the second function - protecting the government from the people - sometimes looks like the more important one

Governments representing a minority set of their people have gained power and claimed the "mandate" to implement a program representing only their minority constituency. Examples are the Muslim Brotherhood in Egypt, the Harper Conservatives in Canada, and possibly a deeply divided America after the current election. This is not democracy.

Such regimes are prone to expanding their Type 2 police power.

But figures from the US also tell of the rise of a third kind of police - police who are hired by private individuals and corporations to protect them, presumably from both governments and people. These private or contract police now outnumber public police in America.

We are not surprised, believing as The Cogs Blog does, that power draws money, and money buys power, and power draws...


power








money

The most significant division in many nations and across the globe today is the division between the rich ("the 1%") and the rest of the eight billion earthlings. A recent column by an investment commentator, using not the 1%, but the .01%, for the very, very rich, observed that "the billionaires are now drawing their wealth from the millionaires."

Seems like the wealth distribution is so lop-sided that the great majority of mere "people" aren't worth exploiting. But, of course, you still need your own police force to protect you from  --  well, just in case.

(Pssst - an aware, enraged population, or a pesky tax-collecting government?

The columnist also noted that the current wealth inequity is now.  greater than it was in 1929 (before the Crash). So?


But, let US conclude more brightly, with   


 "The Policemen's Song"

WHEN A FELON'S NOT ENGAGED IN HIS EMPLOYMENT (his employment)
OR MATURING HIS FELONIOUS LITTLE PLANS
(little plans)
HIS CAPACITY FOR INNOCENT ENJOYMENT 
(-cent enjoyment)
IS JUST AS GREAT AS ANY HONEST MAN'S
(honest man's.)

OUR FEELINGS WE WITH DIFFICULTY SMOTHER 
(-culty smother)
WHEN CONSTABULARY DUTY'S TO BE DONE
(to be done)
AH, TAKE ONE CONSIDERATION WITH ANOTHER
(with another)
A POLICEMAN'S LOT IS NOT A HAPPY ONE.

From The Pirates of Penzance  W.S. Gilbert, 1879

for more verses go to lyricsplayground.com/alpha/p/policemanssong.shtmi



Wednesday, 1 June 2016

Blog 34 Fred and Franny, Inflation and the Price of Toothbrushes

Blog 34  Fred and Franny, Inflation and the Price of Toothbrushes

Your blogger re-read Blog 33 and thought it was not only unfunny, but, as an explantation of lenders' and borrowers' different attitudes towards inflation, it was somewhat thickish reading. (He might add, he was not the only reader who expressed that thought.) But that is not why you have had no postings for a month.  Not sulking, just resting.

So, let me introduce you to - well let's just call him Mr. Fred Fewster. Mr Fewster is a nice guy. He lends his friends money. But he gets a little obsessive over bargains. For instance, when he saw his brand of fancy toothbrush - regular price, $4.89, on sale for $4.29, he bought 10 of them. On second thought, he went back and bought 6 more. Got a feel for Fred? 

The same week, he loaned a young friend, a struggling student, $10,000 to pay for her last year at college. He did not charge any interest. Franny was the daughter of a friend. She was effusively grateful. Got a feel for Fred?

So Fred brushed his teeth, and Fanny finished college, got married, had children, and a career. Fred used up his sixteen toothbrushes at the rate of one a year.

Only then, did something remind Franny of the debt. She paid it off at once, with appropriate apologies.

Fred himself had also forgotten the loan. But it was time to buy some new toothbrushes. This time it cost him, with 16 years of inflation averaging 3% a year, exactly $6.89 per toothbrush. That was a sale price, of course.

So for lender Fred, toothbrushes were $2.60 more expensive than the last time he bought some. At the latest price he could get only 10 for the price he had paid for 16, sixteen years previously. If Fred had been a banker, that would not have been good business. Interest foregone on $10,000 for 16 years at say 3%, and an equal percentage of inflation loss on the toothbrushes..

Fortunately, friendly Freddy was not a bank. Just a generous friend of the family. 

Who liked to book his dental care well in advance.




Dad, why does Mr. Banks complain of inflation?
    He doesn't want to lend out "good money" and be paid back in "cheap money".
I still don't get it
    Oh, well.