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Tag: Economy

  • Locust Economy

    I got as a suggestion from a YouTube, a video about moving to chase jobs. A part of the video made me rethink about the whole migration approach to avoid economic failure. Not that I am blaming individual people who choose to rip themselves from their home areas and finding greener pastures, being a migrant myself, that would be hypocritical.

    However, people here in West have been relentlessly propagandized to move after better economic opportunities instead of improving their home environment. Specifically, the discussion which states would be the best options made me think about the migration between US states as a scam. People are encouraged to leave states with poor job prospects to chase the increasingly ephemeral employment across the continent. Similar phenomenon is seen within European Union that deliberately adopted the same approach as ‘free movement of labor’.

    The free movement of labor proved disastrous in EU. In Eastern Europe, people mass migrated to Western Europe to do unpleasant jobs cheaper and with fewer options to object inhumane treatment than the local working classes. This emptied the poorer parts of EU cramming their peoples into wealthier parts of the EU. At some point, the second biggest Latvian urban population after Riga was London. Polish plumber became a meme. Meanwhile, the working classes of the Western EU began to lose their work to cheaper foreign competitors with fewer de facto rights. Those who remained employed saw their wages stagnate and working conditions worsen.

    Eventually, the working and downwardly mobile middle classes of UK, which had been the end of the line for aspiring eastern EU citizens, voted for Brexit to reduce the pressure to their living standards. Aside from job markets, the immigrants increased housing pressure and needed public services. In short, the pie of gross national production may have gotten larger, but did it get large enough to accommodate all the new slices? And who actually benefited for the increase in GNP? Somebodies must have known or guessed the results but gone ahead with it anyway.

    This was just the economic side of it. I wonder if much attention has been paid to the psycosocial and cultural costs to the immigrants themselves, when they leave their social support networks and familiar traditions and customs. The increasing atomization and hyperindividualization of the subjects, or objects of governance, of course benefits elites who do not really worry about lone ranters in the internet (those can be shadowbanned) but are sweating over mass movements not paid by and organized by themselves. Even though their biggest actual threat is mass passivism (NEETism, or as the Chinese say, lying flat), but that was not what I had been thinking this time.

    The biggest problem after the exploitation of the migrants is that free movement allows exportation of the various regions socioeconomical problems, thus shielding their governments from the consequences of their policies. In United States, California, New York and Illinois are regularly trotted as examples of exporting refugees of liberal policies but as a Californian, I am rather tired of red staters sneering smugly at our homeless problem after having exported their drug addicts and mentally ill using what is here known as bus therapy: i.e., buying them a one way bus ticket hoping that the Californians will take care of their social issues.

    Meanwhile, in California, UK, European Union, and other mismanaged territories, bad regulatory environment combined with excessive taxation and misallocation of government resources (encouraging further taxation) kills the economy, including employment. People with means (money, education, passport) and initiative will vote with their feet. And as the recent decade has shown, apparently the only thing you actually need for emigration is initiative, though money and passport will be huge advantages.

    In the current narrative, as far as I understand it, emigration is supposed to punish the local administrations, they are losing tax base. Except that thanks to Federal or EU government and their funds transfers between the regions, the internal emigrants will still subsidize their original administrations with their taxes. While burdening the infrastructure from roads to social services somewhere else. Win-win for the local mismanagers. There are whole developing countries whose economies depend on remittances from their expatriate populations, which on surface seems more benign than the interstate welfare / subsidy parasitism, but which on one hand means at least a temporary loss of labor force that is building another country, while on the other hand creating distortions on the labor market of country they have emigrated into. And the psychosocial costs, again, were borne by the migrant labor and their families.

    What happens if all regions export their economic problems and no region can handle the masses seeking better life any more? Or if one region exports the labor to be exploited in another region?

    Well, the EU economy is collapsing, and though some blame the migrant crisis, I think the mass migration is a symptom of a deeper rot within the system that relies on imported people to exploit. Except that the current batch of immigrants did not arrive to be exploited but to figure out the greatest personal benefits. The massive immigration industrial complex that relies on government subsidies flowing to the ‘NGOs’ is definitely a drain on government budgets, but if it were not the immigrants, some other cause with swarms of ‘NGOs’ would take their place. EU has now two competing narratives, War in Ukraine and the Climate Change, which also demand lots of money, but the real reason why the elites are after all these years slowly beginning to turn off the money spigot on the immigration is that the economy (the big corporate, not just the little bourgeoisie or working classes) is dying. After the job market had already began to contract (in case you had not looked at the job search situation during the past couple of years), there was a brief attempt to use the immigrants to cook the government books by adding consumers to GDP, but this consumption was mainly driven by government handouts, and governments, as mentioned above, had also other places which needed the printed money.

    The bigger issue that is destroying the economy is the all suffocating tangle of red tape and directives sprouting from Brussels, that has nearly destroyed all initiative within EU. As a child, I used to giggle at the Moscow lead Soviet Union and Warsaw Pact. Now large fraction of NATO is lead by equally insane Brussels. Among these directives are the dictates of the more cultishly fanatical supporters of various Veblen ideologies.

    Veblen ideologies are impractical and costly to adhere, and mostly for virtue signaling among the peers, just like Veblen goods are mainly bought to show that the buyer can afford them and is sophisticated enough to know which expensive goods to buy. Anyway, the Veblen ideologies of the EU elites demanded destruction of nuclear power stations and building wing mills and solar panels instead, thus gutting their industrial base and small consumers’ electricity budgets.

    Then there are the endless identity politics, which can only exist if divisions between peoples are carefully cultivated, and if necessary, invented. Problem being that increasing mistrust between people requires increasing regulatory layers to prevent them from doing unto the society before the society does it unto them. Thus, low trust societies are less efficient and require more top down enforcement (to replace the missing natural cohesion) but I suspect that is precisely the reason why many of the elites seem to promote identity politics – fracturing the masses into mutually hostile tribes prevents populist uprisings.

    However, aside from being bad for the economy by the added bureaucratic drag, the conflict between ethnic or ideological tribes can be used for driving the opponents of the regime away. Every conservative chased away is a reward for the progressive administrative state of California. Even if reducing the dissidents diminishes the likelihood for corrective action instead of economic collapse due to runaway Veblen ideology cults.

    But why do Brussels and Washington DC allow epic failures like Germany or California? Without resorting to conspiracy theories about shapeshifting lizard people, I hypothesize that firstly, both California and Germany are too big to fail, and secondly, when they do fail this presents the central governance an opportunity to gain bigger grip on regions (thus, ironically, further entrenching the collapse of the whole rather than just some of its parts.)

    Both California and Germany used to be the industrial backbones of their respective organizations, and enormously wealthy and powerful, so it will be easier to pretend nothing is amiss than to actually try to do something about them. Because of their sizes and their remnant wealth, and their heritage of numerous bureaucratic positions within the System, California and Germany still wield great power in Washington DC and Brussels, respectively, thus preventing anything done to them without their permission.

    Meanwhile, as both regions do their best to dictate the policies of the larger collective, or in case of California, at least ignoring / defying the edicts from the capital, the factions aiming for more centralized control are waiting for a useful crisis to exploit for further power consolidation.

    And what does this have to do with the locust economies? As the systemic polycrisis deepens, individual people and families will frantically try to find a place to survive. Survival is no longer just a problem of the Third World. Thanks to reductions in food and energy production (not to mention the oligopolistic squeeze on healthcare resources, especially in United States), the struggle for survival is returning to the First World.

    California being pretty much the last shore of the West, I do not know what shape or form the mass migration within the First World will take, but I believe it will not be many years from now when the powers that be finally begin to slam the borders shut, not to keep immigrants out but to keep emigrants in, just like East Germany used to do and North Korea (and to a lesser degree People’s Republic of China) still do.

    Prepare for the Fall. The season is nearly gone, but the civilization will take a bit longer to finish.

  • Restless Times

    A recent credit card outage in France was blamed on botched payments system update. The reason for ATM failure in Scotland was not clear from the same post.

    My thoughts:

    Resolution Weekend?

    Cyber attack?

    Beginnings of the Zapad 2025?

    Considering the banks are claiming it was just a botched update, my paranoia instinct would tend to cyber attack (private or foreign public sector) or frenzied preparations for Central Bank Digital Currencies supposedly becoming to EU this October.

    @@@@@@@@@@@@

    It is speculated that French government will collapse in this budget crisis. Belt tightening proposals include removal of two holidays: Easter Monday and May 8th (celebrating victory of WWII) to ‘increase the productivity’ by making people work more for the good of the country (who decides how the extra profits are used?). Aside from reducing the well-being of working people, I think this to be an arrogant display of cultural insensitivity, especially the claim that Easter Monday does not have any religious significance.

    There is also chatter that France is going to need IMF bailout next week.

    Meanwhile, French government is demanding that the hospital system be prepared for mass casualty event by March 2026.

    I have low expectations for the quality of life during the next few years.

    Update Sep 08, 2025:

    The French prime minister Bayroy has lost the confidence vote, and will reportedly submit his resignation to Macron on Tuesday.

  • Beetle, Unemployment, Inflation, Food, Migration

    This May in Finland I was lucky enough to spot this beetle on a tree stump. The stump was also hosting a fungus, recycling nutrients. Life goes on.

    Now I am in California. The job situation is bad. The official US unemployment percentage for July 2025 was 4.2%. Functionally unemployed in July 2025 were estimated by Ludwig Institute for Shared Economic Prosperity to be 24.7% of US labor force. With AI, especially white collar unemployment is estimated to soar further. I think AI is an excuse for job cuts resulting from austerity enforced elimination of Bullshit Jobs.

    David Graeber estimated in his 2014 book Bullshit Jobs – A Theory that about 40% of the jobs are unnecessary and people are being paid, often well, to do nothing useful.

    Meanwhile, we have printed money, that is accumulated debt, faster than productivity has grown since the previous century, but now the buy-now-pay-later Ponzi scheme is unraveling. Most of the printed money seems to have been soaked into stock market and complex derivatives, benefiting governments and their servants and ‘NGOs’ and the 0.1%, which have sucked the money (plus interest) away from real world investment. While also saddling the people with unpayable public debt loads, the consequences of which manifest as increased taxation, reduced services, and proliferating licensing requirements and fines, which both are additional taxes in disguise to government coffers.

    Now the production is no more, despite the inshoring attempts of the current administration of US and the 99.9% are doing price discovery. The economy is shedding jobs. Optimally the lost positions should have been the 40% Bullshit Jobs, but it seems that many useful positions are eliminated, too, further damaging the economy.

    Part of this is the loss of consuming power driven by the mass functional unemployment. While the people with Bullshit Jobs may not have produced anything, they used their salaries to keep up the consumption demand, being vital for the survival of many small real businesses like pizzerias, lawn care companies, cosmetologists and car dealerships.

    Another part of it is the pathologies of the system itself. After years of promoting incompetents into leadership positions, be it by nepotism, political clientilism (including DEI) or slack allowed by easy (freshly printed) money, the managerial class no longer recognizes which workers are necessary for operating a business. A case example: Boeing.

    The regular people (including many of the 40%ers) are now suffering from another effect of money printing, inflation, including food inflation. Although food (and other) inflation is not driven by money printing alone but by money supply growing faster than food (or other) supply. The demand is semielastic, if that is a word. The former middle class downgrades consumption and the poor skip meals, but the number of mouths to feed depends on immigration plus births minus emigration plus mortality.

    Unfortunately, thanks to the globalization, also problems are global. I think food inflation in the West is not only due to reduction of food production per capita or collapsing Western economies but also due to increasing wealth in poor and middle income countries, that now can better compete for the global resources.

    I also believe that the global food production has not kept apace with the global money printing, and though the poorest in the West have traditionally outspent the poor and even the middle classes in poorer countries, now even in West we now have food inflation because other countries can pay for the food on global export markets. For example, China has during recent years bought massive amounts of grain, pulses, oils, meats, fruits increasing price pressures.

    Meanwhile, people with money to travel are leaving global south for global north increasing pressure in the Western countries. Traditionally, if food supplies or economy grow tighter people emigrate. However, it is not the poorest of the poor who can apply for visas or pay for human smugglers if they are not eligible for a visa. Nowadays the situation in the departure country does not does not need to be catastrophal to induce emigration. Just the perceived better economic opportunities in other (including Western) countries – thanks to mass media and ubiquitous internet -, and the comparative ease of traveling are now major drivers of mass migration from poorer countries to wealthier, and if the situation in the country receiving the immigrants changes, the flow of people will head some other place.

    Thus, I think that fewer people are starving to death but the price of the global affluence paradoxically is that more people in West go hungry.

    Some time ago I was in a grocery market here in California, not a hugely expensive one. They advertised for two avocados for seven dollars. The economy may be toast but it won’t be an avocado toast.

  • Department of Narrative Mismanagement

    I have followed the recent discussions about Jeffrey E., a dead criminal whose suspicious passing away in custody has caused years of speculation (including that he was taken secretly away and is now living somewhere nice.) Namely, he is known to have committed his crimes with lots of people and suspected of blackmailing the said people, which tend to be the very wealthy and powerful type. Which is why he was rumored to have been self-deleted.

    The current administration has loudly and repeatedly promised to publish the list of Jeffrey’s associates, until about a week ago an FBI memo was leaked(?) to Axios claiming: he offed himself, there is no list of people, and he did not blackmail anybody. The administration is trying to sweep the issue under the metaphorical carpet. Then the officials published a video of his cell from the night of his death. Except the video contained about 1 minute gap (or maybe more than 1 minute). It had been stitched together so badly that aside from the gap in the timestamp, the aspect ratios were subtly off. As Asmongold pointed out, there could be legitimate reasons for this blooper, but with all the other circumstatial evidence, to me this points towards a conspiracy concerning Jeffrey E.’s demise, the reasons for it, and the existence of more rot in the circles of power.

    As I keep on watching the government stumble from narrative fail to a narrative fail, with people becoming increasingly convinced that something is off with the official story (which has presented already by the previous administration), I have began to suspect that all this furor is deliberately fanned to distract the hoi polloi from something really important, possibly even more insidious than the idea that we are being governed by a huge criminal blackmail network, until it is too late to do something about it. This is quite a common tactic by the powers that be. For example, in Finland, I have imprecise memories on how government starts making noises about changing regulations or taxes on selling beer, and people get upset. Huge discussions rage over newspaper opinion columns and on-line boards, pro and con, while the government passes something else, much more important for people’s lives. The beer issue can be resolved, or if necessary, retreated from, people will calm down, and meanwhile something actually nasty was done to them.

    While the incompetence of governments can be stupendous, it stretches my credulity to have so many bloopers in the narrative management coming one after each other, and I am beginning to suspect we are being purposefully distracted. Whether it is from the coming (proxy) war against China (maybe started between Thailand and Cambodia, maybe still waiting for the Iran situation to worsen), the ongoing (officially proxy) war against Russia, the economic collapse (US consumers sentiment has been reportedly low earlier this year, though Goldman Sacks just reassured that everything is merely returning to normal), the incoming digital surveillance grid (brought to you in collaboration with Musk and Thiel under the guise of tracking immigrants – spoiler alert: to track immigrants they will “need to” also map the non-immigrants), or something possibly worse, it must be humongous to merit this level of egging of the masses. I don’t think Obama’s referral to Department of Justice for suspicion of having ordered narrative to be manufactured for the Russia Collusion quite qualifies, more likely it is just more noise to distract the masses. By the way, US just moved nukes to UK, but that’s probably a nothing-burger (I am still sitting on the fence about whether to link and comment to the article on the subject in aviationnews.eu.)

    I am also currently sitting on the fence on whether our government truly is this incompetent at narrative management or whether there is some obscure Department of Narrative Management, who are gloating about their latest glorious success in psyop against the people. Or maybe the Department of Narrative Management has gone rogue and is actively fighting against the current administration.

    Although considering the everyday dysfunction I live in due to the ongoing complexity crisis infecting all aspects of modern society and worsened by the ongoing incompetence crisis fanned by the decades of education crisis, I still think that, yes, they really could be that incompetent. Maybe.

  • Rising Rice Crisis

    Japan has a rice shortage. Of staple rice.

    While there has been sporadic rice shortages around the world recent years, Japan is a first world country and a traditional rice producer. The problem is word traditional. According to First Post, the average age of Japanese rice farmer is 71 years, and government agricultural policies in general and rice policies in particular have hit the farmers whose numbers, citing Bloomberg, have shrunk by 25% between 2015 and 2020s.

    Probably not Japanese boiled rice

    The Japanese government rice policies are strictly nationalistic, ostensibly designed to protect Japanese rice farmers and self-sufficiency by preventing rice buying from abroad. Except the consumer prices also had to be regulated, squeezing rice farmer incomes and acreage despite Japanese soft monopoly on domestic rice.

    The some explanations to Japanese rice shortages is that Japanese 2023 rice harvest was bad (already reporting rice rationing in some shops on 2024), there was an earthquake and people are panic buying (also as a hedge for rice inflation, which probably increases the rice shortfall causing more rice inflation), people are eating more rice because the war in Ukraine has increased wheat prices, and that there are hordes of tourists eating rice. And the Japanese government started selling the stored rice from reserves last year. A bit like US sells oil every now and then from strategic reserves to smooth consumer sentiment. Except that Rice News Today blames the shortage on government policy to reduce rice production, which has thinned the buffer between production and consumption to such extent that even slightest consumption increase would cause shortages.

     Now Japan is running low on rice and some shops have implemented rationing. People are upset about the steep rise in rice prices. There has been some talk about buying rice from abroad, but this is against resistance from farming lobby and conservatives, though apparently there is now a trade deal to sell Calrose rice to Japan.

    The Japanese are having an election soon, July 20th. The price of rice and the rice shortages (estimated 1.8 months of annual supermarket sales worth of staple rice – either the consumers will consume something else or Japan will soon import lots of rice) may annoy the electorate enough to lead to political upset. According to Zerohedge, SocGen (a French bank) has predicted that there is about 50% chance of election results leading to governmental crisis in Japan, which may lead to problems in yen bond market. More importantly, the price of rice is part of Japan’s inflation metrics, and if rice prices explode, the rising inflation may trigger BOJ rate hikes.

    The global bond markets are highly interconnected and the financial omnibubble is floating around in search of a pin prick. Thus, the rising rice crisis just could be the trigger of global financial collapse. Though I personally doubt it. The markets are so rigged that full collapse by contagion is unlikely. But what I have seen over the years, is that small retail investors rarely fare well in turbulence. 

  • How Many People Are There in China?

    Sometimes, the conspiracies of the West like chemtrails or other forms of weather modification and QAnon become boring and it is fun to look at the conspiracies in the East.

    One of the more intriguing conspiracy theories (to me) is the claim that China has way fewer people than the official 1.4 billion.

    I first encountered this claim some years ago, but did not pay much attention to it. The message sounded too crazy and was promoted by Falun Gong, which has a real reason for a grudge against the CCP government. I am also pretty convinced that part of the anti-China messaging is or was funded by US government as a psy-op against a competing power.

    However, while the figures as low as 300 to 400 million Chinese left (in the Peoples Republic of) seem extreme, I can believe fewer than 1.4 billion, probably no more than 1.2 billion, possibly below 1 billion.

    My reasoning being:

    1) There are government tendencies for inflating population numbers. In places like Nigeria, where the funds from central government are allocated partially based on provincial populations, and corruption is common, local leaders have a pressure to report their populations generously. I suspect Nigeria does not actually have over 200 million people. So many of their princes have died, that the mortality among the peasants must be horrendous. Ahem.

    Similarly, in United States, we do not know the population even at the accuracy of million, which I suspect in part resulting from allocating federal resources like Congress seats based on state population.

    Also, having a large (potential) labor force is believed to improve the economy numbers (although not universally), which is why many Western countries have been importing people en masse.

    2) Related to governmental pressures is the individual financial fraud. Duplicate (or multiplicate) social security accounts have in abounded, at least in earlier times, whereas 100 billion in social security payments have apparently been paid to people with temporary or no social security numbers, maybe half of it obvious fraud. Since China has in recent years implemented a Draconian social credit system, I don’t know how much an individual can bilk the government there by double IDs though private sector frauds are too prevalent to list here.

    3) Mass immigration has generated a global population of hundreds of millions.Many of these individuals are undocumented, which I presume are still in citizenship lists of their home countries while being part of the head count in their current locations. I remember an apocryphal story in Europe about people getting paid social security by two countries, presumably being counted as part of the population in both. I do not know if this inaccuracy includes dual citizens or just undocumented migrants. In case of China, I think their hukou system is pretty water tight within China’s borders, but I also think that millions, maybe tens of millions of Chinese have slipped over the borders, all over the world. These Chinese exist, but reduce the population at home.

    4) Chinese population policies have been a demographic disaster. One Child Policy meant that many of the Gen-X were not allowed to be born, reducing the population growth rate. Now there are too few Millenials and even fewer Gen Z and the young people are too stressed to reproduce. Yet, China’s population was supposed to have grown during the 1970s – 2010s, though at least the recent year’s have officially had negative population growth.

    Therefore, even if we don’t go with the active depopulation hypotheses,

    I don’t think the current global population exceeds 7.5 billion, and would not be hugely surprised if it were as low as 7 billion people.