THE BACK BONE
The most common economical equation "Y = C + I + X + G |"
**Y=pot. GDP
C= total consumtion Goods + services
I= net investments (previous yr investments + new
investment - deppreciation)
X = net exports (exports - imports)
G = Gov net expenditure. (gov exp + (-bonds)
Common sense leads u to know that Y is always
"resultant". Just like the "F" in F =ma [physics]. There can
NEVER be acceleration without friction(opposing force)
bieng overcome. So the F is always resultant.
K back to Y. If Y is resultant then it shud be (-G)? Nada!
Here is the deal. A correct way to look at it is like this Y =
(C + X + I) + G. Making G an independent subject.
Dividing every thing by Y, you get the "GDP identity"
1 = C/Y + X/Y + I/Y +G/Y and taking gov expenditures to
the resultant factor u get
1 - G/Y = (C + X + I)/Y. Via common sense you can see that
IF gov. expenses are increased this lowers consumption,
investment and net exports. Now we all know lowered
consumption and Investment = increase in
unemployment.
Increase in unemployement = 3 times lowering of Y
("ohkums law") since (3 factors affect Y). Now were all
know there is always unemployed ppl (natural
unemployment rate) plus those looking for jobs and those
inbetween jobs (frictional unemployment)! Making
unemployment a "resultant" subject.
So now here is America goin to Iraq =(increase in gov
expenditure). They spend on amour and energy. They
borrow cash from mainland China (increase in
investments). What do they do? They spend on marketing!
= facebook, wiki, AIG, Obama, etc. We buy it. We watch
them announce trillions of deficiet.
Whats next? Tax increase, mortgage. Mhhhhh what is
TAX? Do u think its fiar for a guy earning 1million a week
staying in Tembelihle to pay the same rates as u the
neighbour working for him earning 1million a year!. Just
because Vusi from Mbabane Town council says nihlala @
the same location and use the same amout of
land? ....think abt it, the poorer gets poorer and the rich
gets favours (same shit happens @ Tinkerz nxa!! Well
thats another story **repeat customer service)
now back to Y = C+X+I +G. Now the war on Iraq is done G
(gov expenses) reduces greatly.
The world is on facebook, twitter, Android, Microsoft,
apple iOS. (net exports) X increases. Why? Do u think
microsoft will be out of resources???? Do you think so?
How? They dont do shit, they make software! Software is
the figment of the mind. U dont need trees to make the
speakers of WMP11. You dont need silicon to make iPlay
valley. You jst need a geek and diet soda. But what do we
pay? Millions jst to pay all of bill gates diet sodas.
More software apps produced. Ppl buy it in the States =
increase in C.
They give us (Africans) food aids, why?. Remember when
the US troops were given 1.2ha land in Ejaheni to plant
trees? They plant around 10 trees and left. Thats net
investments ppl! They need that piece of land to build
something of their benefit. Thats why china is "donating"
millions for the technology park. To get the increase in I
now with everything increasing.... What do they do???
They engineer a recession. They show their debts like its
new, kantsi beyvele ikhona. ("bad news shown at the
right time can lead to good news" --- Barak Obama)
during his 1st visit in Egypt exaclty 90 days before the
"uprising" begun.
A recession is when petrol is high, food prices r high,
everything is high. That means what E1 used to buy can
not buy. What does that make E1? A piece of shit! Thats
when bantfu batsi lilangeni liyawa. But what IF the prices
are actually low, what made them bigga was TAX? That
means its expensive for the nation (may eg bread costs E8
yet E3.50 goes to gov). What does that mean? The longer
the recession the more the gov make.
So what happens next? Coz the ppl are suffering now. We
get that foreighn dough. (the American lottery visa).
Invite ppl to spend in America and tax the hack out of
them. They wont c coz we also doin the same thing to our
fellow american.
TAX increase = increase in I. As I reaches saturation. Boom
prices lower down "coz of the damn recession" nope. To
increase consuption!!! Thus befining a new cycle...
As we continue to see the dollar increasing its value. TAX
improvements are bieng introduced in America. That my
friend is the American fomulae of bieng a SUPER POWER.
The economic steam engine!!!! By May 2012 the dollar/
rand will be close to R9!!!! Yet dec 2012 it will be at a
steady 7~7.5ZAR. The American can loose all its money but
gain total investments! They act as one stock broker, they
aquire stock!!!!
WHAT THE SWAZI GOVERMENT SHOULD BE DOING?
Remember Tibiyo? Tisuka?
[[[[please not this NEEDS CONFIRMATION, BUT because half of the swazi youth believes it, it is relevent has the BULLSHIT BEHIND Santa Clause is relevent today]]]].
They had approx 30,000 cattle as start up. as of 2011's average cattle price this is
30 k
X 4k
_____
120kK
(k 1000, so kk or k-square = 1000*1000)
E120kk = E120 000 000 = 120 Million!!!
If they focused on building a HUGE airport or state of the art bank? They wud be 2 million short and the building wud be half finished and money waisted! They focused on cash cows (Magevini,RSSC, Hotels(Sun International, MTN) sharesholding. "it is better to have half of something, that everything of nothing". Now they have a net worth of 6 billion. Infact their offices alone cud be as much as 60 million.
End of part I.
No comments:
Post a Comment