From around the World

During the pandemic citizens became accustomed to ‘free shipping’ from online and storefront retailers. Amazon, for example, touted free shipping in two days. Behind the scenes, however, Amazon had forced sellers to absorb the cost of shipping into their consumer price. This has led to antitrust investigations of Amazon Prime. In short, pervasive free shipping soon may come to an end.

It will be difficult for all three sides of this market — the customers, the drivers and the sellers themselves — to get what they want.

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China has eased birth limits to cope with aging population. Couples in China can now have three children, instead of being limited to two, after the ruling Communist Party eased birth limits Monday. It turns out China, like Japan, the United States and most wealthy and industrialized nations, has an aging population that is increasing while younger citizens are a smaller percentage of the population. The economics are familiar to the US – retired old people cost the economy a lot of money but don’t generate GDP; on the other hand as economies begin to grow in this new era, there aren’t enough workers to do the work. State media reports that leaders also agreed China needs to raise its retirement age to keep more people in the workforce.

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A report by Greenpeace Africa and the Netherlands-based organization Changing Markets urges governments to phase out processing of fish which is fit for human consumption but being used for fishmeal and oil. It says the fish extracted by industrial vessels off West Africa are processed and exported, mainly to Europe and Asia, as feed for fish farms, pet food or use in cosmetics.

The report said the industry is devastating coastal communities and undermining food security in Mauritania, Senegal, the Gambia, Mali and Burkina Faso.

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The Philippines has filed two more diplomatic protests after maritime authorities spotted a total of 165 Chinese vessels within Manila’s exclusive economic zone. The South China Sea is a troubling situation for all the countries adjacent to it. Other nations include Vietnam, Taiwan, Malaysia and Brunei. Taiwan, of course, has a tight relationship with the United States which may lead to a military war between China and the US, and perhaps enjoin other Pacific allies like Japan, Australia and South Korea. China has made it clear they want Taiwan back.

As troublesome as these news items are, it is a bit of relief not to discuss American issues for a change.

Ancient Mariner

As Time Passes

Here is something interesting that reinforces the impact of inflation since 1950: in 1950, using Penn State prices, one year of college tuition, fees, board and books cost $1,365. In 2021, one year of college tuition, fees, board and books costs $39,084. The college industry has  increased inflation by 54 percent or in terms of the Consumer Price Index (CPI) today it takes $1,660 to buy what $150.00 bought in 1950.

This is nice to know information but with little insight until it is compared to wages. The average annual rate of inflation since the 1970s is 3.3 percent; for wages it is -5.1 percent. In street terms, a dollar in wages in 1978 is worth only 68¢ today. Perhaps this may be the reason there is insurrection across the land.

Waxing philosophically, it is technology that changes the behavior of economics – from the first axe with a handle, to spears, to wind, to steam, to internal combustion to artificial intelligence – financial opportunity shifts dramatically giving those with resources a chance to restructure assets while those without resources suddenly are without stability or even individual purpose.

At this moment we are in a time of rapid social and economic change. Worse, our society is managed by governments functioning as they did in 1978.

Ancient Mariner

 

 

Ten Commandments for our times

  1. Don’t sell your house until you have closed on the next one. The housing shortage increases day by day across the entire country. The price of housing increases daily as well. One might think it is a good time to sell their home at a good price but buying the next house may cost twice as much – if you can find one.
  2. Keep your job if you have one. If you suspect you may be let go for whatever reason, look for that next job NOW. The employment market is in shambles; it may be best to take a job in another profession that has training, certification, and in a stable industry.
  3. Pay off debt as rapidly as possible even if it cuts into your standard of living. Anything associated with money is facing a large windstorm of change. Having a debt-free income whether it is cash, percentage or bitcoin, it is best to be financially stable – the windstorm will toss everyone around.
  4. Do not arbitrarily renovate your home or property. Raw materials like lumber, siding, pipe and electric materials are up an average of 25 percent; lumber is climbing without hesitation and now costs 80 percent more than it did one year ago. Much of this is due to a sudden jump in housing starts – or price gouging by lumber companies and mills.
  5. Stay in college. This can be difficult amid the cost and fractured studies offered. Even if one must drop down to a smaller college or part time for any reason that is better than dropping out. The job market that is emerging under artificial intelligence will cut more than half the employment market for labor and white collar jobs.
  6. Form babysitting clubs. Because of looming inflation, in those families where both must work, both will have no choice but to find child care. Don’t wait for Biden’s social services programs; they won’t happen until McConnell retires. Back in the day when mariner had wee children, mariner’s wife connected with nine other women who had small children. It was a useful consortium socially and functionally.
  7. Strengthen social circle. In volatile social times like today, where every aspect of life carries a threat, it is important to be able to relate to a group of readily accessible friends in the neighborhood. Humans are natural groupies. Become active in any neighborhood activity from little league baseball to bowling to volunteer work to jigsaw puzzle parties to (in mariner’s day) sock hops.
  8. Have a hobby. It can be anything from counting types of insects to making miniature jewelry to building doghouses. The hobby must be rewarding, provide relief from the daily world and not be a burden on the family – and not cost too much.
  9. Take frequent small excursions. Disney World may not be feasible but driving an hour to a quaint ice cream parlor works just as well. Visit the remaining department stores; this is a disappearing life experience. How many years has it been since that last visit to the national forest? Even taking in a movie may be an increasingly rare experience.
  10. Read. Get away from the television, Siri, video games and other numbing devices. Turn on your own brain. Read a newspaper, comic book, sexy novel or delve into the history of Kyrgyzstan. Reading requires a different part of the brain than the temporal lobe, home of conspiracies and fantasies. Perhaps as a combined effort with #9, visit a library or museum.

Ancient Mariner

The Money Rodeo

Covid, shelter-in, election turmoil, Afghanistan, Brexit, China, impeachments, perhaps these things still are unresolved but at least we’ve had a chance to beat them with sticks and throw stones, pushing them into some kind of partial remission. There is time now to take a quick shower, put on some clean clothes and prepare for the next item in the national job jar: managing money.

News outlets are covering the party debate about Joe Biden’s infrastructure bill; the sport of legislation will be headlines for a while. Slowly emerging into electorate awareness, however, are the issues of government spending, taxes, user fees and inflation. These are the bucking bulls behind the battle over bridges and health care. Some bucking broncos are bank and investment regulations, bitcoin, and climate change just to mention a few money issues. The rodeo clowns still are putting on a show, that is, everything Trump, McConnell, McCarthy and Gaetz but the main events will take over quickly.

The main attraction is inflation. It is devastating to the value of the dollar bill in our wallets. Economists, both political and institutional, see inflation taking off and running because the US government has – or will – dump $6 trillion dollars into the general economy (6 includes Trump’s contribution). An extremely brief description of how inflation works is “If there is so much money around, then you can afford to pay $10 for this hamburger instead of $4.”

The problem is that common citizens don’t receive salary increases commensurate with the rate of inflation. Everything is subject to inflation from toilet paper to homes and automobiles. Mariner experienced the 1970 inflation by having a pleasant salary that over ten years became a meager one that required him to shift careers. During the 70s the Consumer Price Index (how much things cost) went from 37.8 to 76.7, cutting in half what that dollar in the wallet could buy.

The second attraction is taxes and fees. These actions slow the possibility of inflation to a degree. Biden has said no one with an income below $400 thousand will receive a tax increase; he intends for the wealthy to pay for infrastructure and health services instead of spending government debt money. It can’t be denied that very wealthy citizens are sitting on a pile of money that isn’t doing anything for the economy but republicans don’t want to raise taxes at all. Instead, they prefer that government spending be offset by user fees (an attempt to hide the fact that ‘fees’ actually are taxes applied to specific purchases like gasoline, tolls and utility services) – meaning that the general population foots the bill.

The next two issues of extreme financial importance are regulations to restrict banks to what banks are for and to push them back from ventures into Amazon-like partnerships and credit card manipulations; the other issue is automation of finances generally, that is, replacing the dollar in your wallet with the state of an electron in a computer somewhere.

Finally, climate change will impact everything – everything! Whole industries may disappear as well as whole cities. Climate change is like a very, very, very slow hurricane. There is no doubt all the other money issues will be affected.

Put your chaps and spurs on – the legislators will need guidance.

Ancient Mariner

Liz

A member of the Cheney line (Dick Cheney, a Vice President under George W. Bush who actually was the shadow President in authority), Liz Cheney has the same strict conservatism as her heritage. She is a staunch, very conservative Republican. As we have seen, she is a determined representative of her views. But she has the one characteristic most desired in her industry: honest allegiance to her electorate. She is a clear example of the moral accountability necessary to make a two-party political system work. Given that all elected officials had scruples, the work of legislation would be a careful balance of what is best for the state of the Union.

Liz Cheney’s credentials as a representative of her electorate are sound, coming from one of the most conservative states in the Nation. Mariner clearly is sympathetic to her plight. She is fighting a broken Republican Party whose economic premise has collapsed and has yielded in spineless obedience to a destructive leader because he promises that they will keep their jobs even without due consideration of their electorate.

Whatever her aspirations (shrewdly she has positioned herself to be a player in 2024), in the current era Liz is confronted by a ‘party first, country second’ behavior that started with Joseph McCarthy in 1951, was reinforced by Nixon and intensified by Newt Gingrich in 2012. The ‘party first’ style of legislation has affected both parties to a point of MISrepresentation of the electorate.

In a complete vacuum lacking economic and electorate values, for President the Republican Party elected a showman to sell snake oil. God bless the electorate, they bought it. Until the 2022 election passes, all the inadequate Congressional representatives will be loyal puppies to Donald. Donald may even adversely affect that election. If mariner could replace any of them with Liz, it would be an improvement.

Ancient Mariner

 

The Way Out

Every so many generations a tumultuous time arises. Everyday life is less pleasant, less secure and society is destructive to many social norms. We live in a time like that today. Life is not fun and for too many, not even possible. There were similar times in the past – the 1960s when racism erupted, the Democratic Party was in conflict, national leaders and college students were assassinated. The 1930s suffered unbelievable economic tragedy that affected everyone; the turn of the century suffered riots and prejudice as suffrage and labor rights disrupted daily life. The greatest example of disruption included a deadly civil war that occurred in the 1860s. Further back in US history is the shame of genocide against the Native American.

The telltale signs are present today. Way too frequently innocent people suffer death by gunfire. Riots and protests are daily events. Government at the same time is imperialist and authoritative and otherwise dismissive to the need of its citizenry; justice is served by the flow of cash and favoritism.

Each tumultuous time posed a threat to the high minded principles of a democratic republic based on equality, personal freedom and the right to happiness.

It is time to reintroduce humanism as the rule of society. How the nation emerged from those tumultuous times was not by the wisdom of a great orator or a magic pill that settled society. Emergence occurred because there was just enough faith, just enough opportunity, just enough public intelligence that individual citizens took command of daily life; humanism became the influential judgment.

Humanism is the belief that a human is the most important form of existence on this planet. Humanism implies equality for each human for no other reason than that person is a human. Humanism as a philosophy promotes unity and promoting the rights of humanness. Humanism induces oneness instead of identity politics and populism.

Humanism is not competitive between humans. It is allegiance to the principle that every human has inalienable rights. If a human is disadvantaged, that is not acceptable – after all, they’re a human. Many historic sources allude to the fact that humans are made in the image of God; where is someone willing to take on God?

There is a common phrase that can be used as a first response to general wellbeing. It is required to be the first emotional reaction to any and every human despite political or class differences. It is “I have your back if you need me.” Live by that statement with conviction and a surprising phenomenon will occur: the tumultuous time fades away.

Ancient Mariner

Ready for something new for a change?

Ready for something new for a change?

Slowly crawling out of the darkness of shelter-in, we emerge to find a reformed world – a place of bizarre and unfamiliar phenomena. A new religion infests United States culture, something called Trumpism, an unsettling group similar to voodoo with conspiracies and denial of reality on a par with flat-earthers; people working from home in such numbers that large office buildings sit empty; the lingering death walk of Reaganism that brings Congress to a standstill; driverless 80-feet-long trucks on the highway; a grave, intensified class war pitting unbelievably rich against unbelievingly poor; collapsing colleges and universities with failed purpose, value and broken financing; empty shopping malls; veiled threats about rising oceans and storms; a flooded south, a burned west, a cold north and citizen migrations forcing changes in congressional representation; a weakening Europe, a rising China and still as it was before shelter-in, a pernicious Russia and a Middle East ravaged and ravaged again by imperialism, collapsed economy and extreme inter-religious/political confrontation.

It does seem similar to Charlton Heston seeing a sunken Statue of Liberty in ‘Planet of the Apes’, doesn’t it?

The pandemic can be blamed for concentrating a great amount of change into one single year. Working from home normally would have phased in over several years as new processes were tested, job descriptions changed and resettling home life with new work-at-home opportunities.

Donald Trump can be blamed for the Congressional crisis. Ordinarily, a change in the philosophy of government takes a decade or so but Donald crashed the primaries so badly that elected officials fear for their careers to the point of abandoning rational legislative work. Joining Donald in his abuses of due process are the victims of 40 years of Reagan economics – a working class distrustful of the US government for ignoring their plight. Throw in energized populist groups using gender rights, race and police brutality.

Reader, take a moment to catch your breath. With some luck, the nation may enter a period of boom economy if the infrastructure bill stays together and passes. The electorate needs to patch wounds, regroup its national identity and concentrate on getting an international momentum up to speed.

Oh, about something new, the wealthy nations of the world are preparing to switch to bitcoin accounts for government operations. Think about paying your taxes in bitcoin. The US calls theirs ‘GOVCOINS’.

Ancient Mariner

Environment

We humans have become increasingly aware that we live in an environment not as a dominating owner but simply as just another renter who tends to trash the apartment. Perhaps it’s the global warming issue that helps with human awareness; perhaps it’s the growing scarcity of food resources for the planet; perhaps it’s the cost to farmers when they plow the soil which strips the fields of all nutrients and plants, especially in regions where there are strong winds that carry away the soil farmers just tilled and fertilized and put weed killer down – producing poor yield in the fall.

Evidence of growing awareness is all about. TV broadcasts about gardening, farming, waste management, and collaborative sharing with the environment are frequent. Extension agencies, libraries and garden clubs sponsor programs about collaborative gardening. Mariner has a relative whose hobby is planting colorful plants around the base of trees along New York streets; mariner has a friend who has decided to let violets stay in the lawn. And mariner himself is tinkering with a number of collaborative projects in his own garden.
֎ One example is the cursed Creeping Charlie, a very rapidly spreading weed that defies elimination. It still is a killing pest in the lawns but in some garden beds mariner has decided to experiment with Creeping Charlie as the ground cover to keep other weeds out and at the same time add to the décor of the garden. It turns out that Charlie has taken hold of his new job with relish. Not even the dreaded crabgrass can sprout beneath a robust covering of Creeping Charlie. In fact, mariner is saving money because he doesn’t have to buy mulch for those areas.

֎ Another experiment is mariner’s tolerance of a rambunctious mole. He must protect against the mole’s burrowing in vegetable beds where seedlings are emerging but otherwise he has let the mole venture about. Tolerance by the mariner is an experiment to see how many Japanese beetle grubs can be eaten; mariner has many fruit and ornamental trees on a property surrounded on all sides by large concrete pads and accompanying large garages. All beetles come to mariner’s garden.

An unexpected reward is the mole gradually aerates the lawn. Typically, a lawn keeper occasionally will need to rent an aerating device to pull plugs from the lawn so it can grow and accept water. Mariner keeps his lawn a bit high (another anti-weed collaboration rather than performing the typical buzz cut) so the lumps from the mole burrowing aren’t noticeable.

Mariner has mentioned in past posts that his town has lawn Nazis. It is of a different spirit, certainly not one of collaboration with nature but comparatively speaking takes more time, labor and cash to maintain. This difference between collaboration with and dominance of nature has existed throughout history from the first scraping of the ground to cast wheat seeds to the large open mining pits and deliberate elimination of forests today.

In just a few years many farmers have proven that any way to collaborate with the environment is more productive, less expensive, saves waste and is good for surrounding atmosphere, water and wildlife. One common practice by farmers that has been implemented for many decades is a natural easement by creeks and rivers rather than plowing closer to the water’s edge.[1] It is entertaining to work with nature as a partner – both existentially and philosophically. What projects does the reader have?

Ancient Mariner

 

[1] An excellent documentary on collaborative farming, ‘Kiss the Ground’, is available on Netflix but the reader must search ‘The Littlest Farm’ – the title is in error. The Littlest Farm also is an excellent film about how a family uses nature to transform virtual wasteland into a productive farm but mariner could find it only as a rental or purchase. 3 minute trailers are available online for both films.

Wealth is for the Wealthy

Several of mariner’s news sources have begun to focus on issues that fall under the general subject ‘plutocracy’. Latest topics are from Florida, a government that sees itself as a partner with business, having passed legislation to protect obstetricians from lawsuits about botched births and now passing legislation to protect sugar harvesters from lawsuits about polluting the air.

On manipulations of the rich to stay rich, Elizabeth Warren just released her wealth tax legislation – she is back on the hunt and is the archenemy of the banking industry. The legislation targets the wealthy’s privileged investment practices that in fact are protected by Federal investment practices. Further, Banking has become more involved in partnering with nonbanking enterprises as a legitimate partner and not just a source of financing (Did you notice an American bank tried to launch the Super League in European soccer?)

ProPublica just posted an article that says “longstanding inequality in the U.S. has been exacerbated by the Fed’s role in touching off a multitrillion-dollar boom in stock markets — and stock ownership is heavily skewed toward the wealthiest Americans”. It is worthy to note that the average citizen’s IRA and 401(k) accounts don’t share comparatively in this boondoggle. [1]

Further, Social Security is the top source of wealth for most lower-income households with workers nearing retirement, according to Teresa Ghilarducci, an economist at The New School in New York City who specializes in retirement. If the guaranteed income stream of Social Security is treated as an asset, she estimates it amounts to 58% of the net worth for near-retirees in the bottom half of the U.S. wealth distribution. Other retirement savings represent only about 11% of their net worth, and stocks are just 1% – meaning that the wealthy have their own, federally supported economic world while the remaining US citizens still struggle with minimal income and no long term security. Apparently Andrew Yang’s chart about the distribution of income was correct.[2]

The most effective way to attack this plutocracy is to have term limits for all legislators state and federal and to outlaw party-managed redistricting, otherwise known as gerrymandering. In the meantime, the voting citizen will be caught in a battle between those who collect dollars for satisfaction and those who extol populism for satisfaction. It’s up to the electorate in 2022.

Ancient Mariner

[1] It is mariner’s opinion that ProPublica is by far the most honest, accurate AND the most thorough investigative reporting source among many online services. He recommends everyone subscribe to their email service at https://www.propublica.org

[2] See mariner’s post, “A Stipend for a Day Lived” published April 19, 2021.

The Census

Immediate reactions from the republicans are beer parties while the democrats cringe in dark corners. But it isn’t that simple. The census actually has several stories to tell.

  1. There is a real chance that republicans will overtake democrats in 2022 and even in 2024. Certainly the House of Representatives has a better than even chance to go republican in 2022. The combination of a significant majority of republican state legislatures plus the irrationality of the Electoral College plus the adjustments in gerrymandering to leverage the census figures, do not bode well for democrats in the short term.
  2. Globally, human population is dropping. The top 30 nations, which includes China and the United States, are not producing offspring as rapidly as they need to sustain population levels. Japan has serious issues; its population has been dropping for several years at an average of .3 percent. Japan’s GDP is at risk of failing in the next decade.
  3. It may be confusing to say that the US has declining population given the census count which shows an increase of 1.5m or ½ of 1 percent. One TV pundit put it straight forward. The increase is immigrants, black, brown and Asian. He surmised that Texas will be a purple state by 2028. He further suggested that the republican states – particularly southern ones – will suffer the Georgia syndrome because northern liberals are moving south.
  4. Setting aside population growth supported by migration, the indigenous US population (meaning everyone who lived in the country in 2010, has in fact dropped. Most notably is the Caucasian percentage. The new statistics project that the nation will become “minority white” in 2045. The shift is the result of two trends. First, between 2018 and 2060, gains will continue in the combined racial minority populations, growing by 74 percent. Second, during this time frame, the aging white population will see a modest immediate gain through 2024, and then experience a long-term decline through 2060, a consequence of more deaths than births.
  5. Already poking its nose above the horizon through intense weather is climate change. Rising sea levels and agricultural hardship are expected to have a growing impact on all coasts of the United States; by the end of the century the Earth’s seas will be one foot higher than today. Forced migration will start much sooner, affecting future census data.

From a different perspective, today’s cultural and economic progress has difficulty adjusting as the US moves through its national history. Progress is difficult because the US Constitution is the same one created in the 18th century: a democratic Federal Republic designed to govern a scarcely populated citizenry across an unknown continent. Automobiles, electricity, computers and an unanticipated population density call for consideration of a Constitutional convention. But who dares?!

Ancient Mariner