Quod erat demonstrandum

Decades of fighting an ever-increasing amount of layer after layer of red tape, which is drowning enterprise and feed only cronyism and bureaucrats. Decades with failing attempts of trying to achieve sober economical policies rather than living on loaned funds and pushing mountains of debt onto our children.

When you opt out of a ship that refuses to steer rationally, the complacent elite still ignores the critique and turns to bullying. Where Eurocrats prefer talking about further social engineering and identity politics rather than addressing the fact that last time France’s national budget balanced was in 1973, then you understand that your decision will be wise in the long run.

Scandinavia has been strongly allied with Great Britain in the above mentioned, often against blindly naive analyses. Now the voice of reason is dimmed within, and I wonder whom will be the next ones to leave. Godspeed!

The Capacity of Judgement

I have a hard time believing that many of my friends whom possess analytical properties really are as surprised as they claim. The result in the 2016 United States Presidential Election is an obvious reaction to a western world having lived on loaned funds for many a decade, leaving a burden of debt for future generations rather than accepting a more realistic pace of rising living standards. Over-optimism, gullibility and imaginative world views has replaced sober administration a long time ago, across the political spectrum. This is the hair of the dog. It will last much longer than if politicians on both the left and right had been more truthful in the first place.

On the Crisis of the West (2011)
From Dissatisfaction to Disdain (2012)

Ingen guld eller grønne skove

Til dem af mine venner, der er bedrøvede efter resultatet i valget til folketinget, vil jeg påminde om at økonomisk naivitet rammer dem på samfundets bund hårdest.

Blot med realisme og hårdt arbejde, i et samfund med stabile institutioner, kan den arme bygge en bedre tilværelse. Politisk demagogi uden denne forståelse er platheder, et slags opium for befolkningen.

Derfor er Dansk Folkeparti, der økonomisk set er et venstrefløjlsparti, et problem for regeringsdannelsen. Men der må udkræves ansvar. Der fordres nemlig konsistens i udmeldingerne, når et rige forvaltes.

Repetition fremmer forståelsen:
Livet på samfundets bund
Kære søde Enhedslisten
Sociale kløfter langt værre end økonomiske

Tendentiøs valganalyse 2015

Her er den skarpeste post-ironiske analyse som pdf, nem at printe ud og opbevare i lommen for senere genlæsning. Det meste dufter bedre end varm luft, og derfor er det ikke raketvidenskab at præstere noget skarpt og godt biased udenfor det beskyttede værksted.

Den stora degenerationen

- Hur institutioner sönderfaller och ekonomier förgås

Trogna bloggläsare känner till att en av mina samtida favorithistoriker är Niall Ferguson. I sin senaste skrift undersöker han vad som är galet i dagens västvärld. Symtom på nedgång finns överallt omkring oss: Avtagande tillväxt, växande skuldberg, ökad ojämlikhet, åldrande befolkningar, antisocialt beteende och så vidare. Ferguson hävdar i The Great Degeneration att det är våra institutioner - de ramverk av hävdvunna sedvänjor inom vilka ett samhälle kan blomstra - som förfaller.

Representativt styre, den fria marknaden, rättsstaten och det civila samhället är de fyra hörnstenarna i de västeuropeiska och nordamerikanska samhällena. Det var dessa institutioner, snarare än ett antal geografiska och klimatmässiga fördelar, som satte väst på vägen till global dominans för femhundra år sedan. I vår tid har emellertid dessa institutioner försämrats på oroväckande sätt.

Våra demokratier har brutit kontraktet mellan generationerna genom att överhopa våra barn och barnbarn med gäld. Våra marknader hämmas av detaljreglerande, komplexa och byråkratialstrande föreskrifter som försvagar de politiska och ekonomiska processer som de har satts till världen för att befrämja, och som dessutom i många tillfällen effektivt underminerar möjligheterna för de som inte redan är maktbesuttna. Rättsstaten har blivit advokatstyre. Det civila samhället har urartat till ett samfund utan mellanmänskligt ansvar, där våra problem förväntas lösas av anonyma andra via det offentliga.

Det är med andra ord institutionell degeneration som ligger bakom den ekonomiska stagnationen och den därav följande geopolitiska nedgången. Med karaktäristisk bravur och historisk inblick analyserar Ferguson inte bara orsakerna till galenskaperna, utan också dess allvarliga konsekvenser.

Niall Fergusons senaste bok är en skarp anklagelse mot en era av försummelse och självbelåtenhet. Medan delar av arabvärlden kämpar för att införa demokrati och Kina stretar för att gå från ekonomisk liberalisering till rättsstat, är vårt samhälle på god väg att bortslösa institutionella arv uppbyggda under århundraden. För att hejda nedbrytningen av vår civilisation, krävs heroiskt ledarskap och genomgripande reformer.

Kære søde Enhedslisten

I morgenens Radioavis fortalte Johanne Schmidt-Nielsen om Enhedslistens forslag om fyringsstop i den offentlige sektor, og der lægges fra den siddende røde regering op til det der kaldes "vækst i det offentlige". Der blev også talt om at investeringer i den offentlige sektor kommer den private til gavn, fordi det skulle spilde over i form af køb af tjenester og varer.

Skal vi nu prøve at få styr på det her med indtægter og udgifter en gang for alle? Os offentligt ansatte og dem på overførsel betaler en del af indkomsten tilbage over skatten, hvilket dog ikke giver nogen realindtægter til staten. De ansatte i den ikke-offentligt finansierede sektor bidrager derimod, via skatten, med realindtægter til staten. Hvis vi skal forstå hvorfor det er lykkedes os at gå fra sult til velfungerende infrastruktur, folkeskole og sundhedssektor, så er det fordi den ikke-offentlige sektor er vokset. Dette har givet os råd til offentlige goder.

Såfremt vi i fremtiden vil kunne forvalte en kerne af velfærd, er denne realisme udgangspunktet, og ikke noget man kan springe over. Forslaget fra Enhedslisten indebærer altså at vi skal leve over vores indtægter, ligesom store dele af Vesten har gjort i de sidste mange år, og dermed skubbe bjerg af gæld til kommende generationer. Solidariteten strækker sig ikke særligt langt.

Opdatering 23.8.13: Ad ovennævnte, om det nødvendige i at forstå indtægter og udgifter, undertegnede i Radio24syv.

Laurits Andersen Ring (1854-1933) Et besøg. Skomagerværksted. (1885).

The disposition of our situation

If countries would become rich by their population and public sectors spending more money, there would be no poor countries as each and everyone can figure out how to spend money.

Expenditure of funds not based on a relative increase in value, means nothing but inflation of capital and actually destroys what savings we have, eventually rendering the money worthless. These savings are incidentally the very same savings that are needed for investing, which in turn is what is needed for possible future wealth.

The discussion should for this reason concern how the necessary revenue is created in order to pay for the states primary undertakings, here under in my opinion, a clearly delimited welfare state.

Understanding these facts does by no means imply that one does not care about all those in desperate situations just now, unable to find a job and living life on stand-by. But continued escapism will only hit those at the bottom even harder. It is only a realistic outlook than can achieve the sober politics which can bring the West out of this nasty predicament of ours.

We have been living on loaned funds for decades and have become accustomed to rising living standards paid for through the expansion of credit. Entire generations perceive life in abundance as sensible, meanwhile much of the industry has moved abroad. It is time we start living by what we earn.

Intolerance as "improvements"

One of the least pleasant legacies from when the manic generation of 1968 came of age, is that notions such as "visions" and "improvement" has become tools for social engineering in the hands of bureaucrats and certain schools of politicians.

Not only does these once good notions today engender additional publicly funded layers of red tape and departmentalism, clogging what instead should have been a sound and narrow state administration with delimited means and focal points. But they also lead to intolerance, as these attempts of "top-down improvements" of society, gives people with political power ways of deciding how other grown ups and supposedly free people should lead their lives and manage their undertakings. This is often done from a purely theoretical perspective, where detailed guidance and governing becomes clearly erroneous when applied in reality.

As a matter of fact should the public sector, and more importantly, the public administration, never have become the wide and expensive instrument for reducing unemployment it acts as today. If we want to be able to afford a public sector with welfare responsibilities, we must keep in mind that the revenue comes from the non-publicly funded sector, which for this reason must constitute the bigger part of the economy.

Selvejende læger er nøglen

For en uge siden kunne man høre i P1 Morgen, at det danske system med praktiserende læger var gammeldags, der henvistes sågar til en OECD-rapport som mente, at der kunne opnås effektivisering, hvis man til dels gik væk fra den danske model med selvejende praktiserende læger.

En model, hvor lægerne ikke ejer sin praksis indebærer, at lægerne i den primære sektor skal være ansat i et ansættelsesforhold på samme måde som størstedelen af de offentligt ansatte. I Sverige har man igennem sidste 40 år haft denne model, med alt for dårlige resultater som følge. Dog har man på det seneste opnået en smule bedre resultater ved at skabe konkurrence mellem vårdcentralerne, men man har på ingen måde opnået de samme gode resultater, for den samme mængde penge som i Danmark. Dette har nordmændende indset, hvorfor man i Norge valgte at kopiere den danske model for lidt over et årti siden. De gik her væk fra en svensk-lignende dysfunktionel mode.

Hvorfor nu dette, hvorfor er "gammeldags" ikke noget dårligt – er det på grund af noget, der forhindrer papirnusseri og lægger pengene på patienterne i stedet for? Her kommer helt kort den forklaring, som de topstyringshungrende sociale ingeniører har svært ved at forstå, og som økonomerne i OECD ganske enkelt overser:

Hvad der er vigtigt at holde in mente er, at et system som det svenske, er associeret med et stort bureaukratisk apparat, hvor regional-politikere  tjenestemænd og et stort antal administrative bureaukrater er involveret. Ansatte på alle niveauer har behov for at gøre deres synspunkter gældende og alle har deres mere eller mindre teoretiske holdning til, hvordan systemet bedst organiseres og struktureres. Problemet er, at der er langt fra skrivebordsbeslutningerne i de offentlige kontorer til det daglige patientnære arbejde i klinikkerne, og det er her tingene kan gå galt. Beslutninger der tages oppefra, skal forplante sig ned gennem systemet og de mange bureaukratiske lag gør det kompliceret og omkostningstungt. Desuden er det selvsagt, at jo længere der er mellem beslutningstagerne og de udførende, desto større risiko er der for, at de trufne beslutninger og aftaler ikke får den forventede og fornødte effekt.

I Danmark har man hidtil valgt at uddelegere ansvaret for den primære sundhedssektor til de praktiserende læger. Det er både billigt og effektivt og en væsentlig grund hertil er, at dem der har ansvaret for at systemet fungerer, nemlig de praktiserende læger, er de samme som dem der skal se patienterne i øjnene.

Selvejerskabet indebærer således for en højeffektiv primærsektor, der aflaster den meget dyrere sekundære sygehussektor, noget elementært. Dette har sin grund både i at der hverken gives plads eller tvungen funktion til dyre bureaukratiske mellemled, men også af at lægens køb af praksis giver geografisk tilknytning og sikrer en koordinerende tovholderfunktion og kontinuitet mellem patient og læge, hvilket man på ingen fungerende måde kan efterligne ved hjælp af politisk styring af ansatte læger. Men dette agter jeg ikke at komme ind på her, da jeg har skrevet om det i både Ugeskrift for Læger og i Läkartidningen.

Hvis de knappe offentlige resurser skal gå til bureaukrati i de danske regioner, i stedet for til patientbehandling, skynder vi os at lave om på noget der fungerer næstbedst i Europa efter Nederlænderne (ifølge andre økonomer end dem på OECD, nemlig European Health Consumer Powerhouse), til fordel for teoretiske skrivebordsmodeller.

For den der har overskud, findes Steinars og min 19-siders rapport om Dansk, Norsk og Svensk primærsektor tilgængelig her: How do incentive structures in the Scandinavian countries' primary health sector affect the work of physicians and the treatment of patients? (Syddansk Universitet 2010).

Sir Samuel Luke Fildes (1843-1927) The Doctor (1891).

Requiescat in pace

"Many of our troubles are due to the fact that our people turn to politicians for everything."

"Good Conservatives always pay their bills. And on time. Not like the Socialists who run up other people's bills."

Mrs. Thatcher combating both social engineering and credit expansion, not because it made her popular but because it is right. The sad fact that the Iron Lady was part of a rare breed of politicians is the main reason for why the West risks going from dissatisfaction to disdain. One does not have to have agreed with her entirely in order to realise that.

Virkelighedstro og ansvarligt Socialdemokrati

Det begynder så småt at gå op for de fleste uden for den yderste venstrefløj, at andre lande ikke ønsker at betale for Europas høje levestandard. Det er vi selv nødt til at gøre.

I Danmark, står vi overfor et langt mindre problem end for eksempel Frankrig gør, hvor der ikke har været balance på det offentlige budget siden 1973. Finansminister Bjarne Corydon har utvetydigt genoptaget det der engang for mange årtier siden kendetegnede Socialdemokratisk økonomisk politik, før manisk kreditekspansion som betalingsmiddel for festen blev det regerende paradigme: Styr på indtægter og udgifter, fordi dem der rammes hårdest af mangelfuld økonomisk politik er dem på samfundets bund.

Hvad man kan håbe på er at denne sobre tilgang fortsætter, således at vi igen kan få skibet på ret køl. Næste skridt er givetvis at gøre den kostende/offentlige sektor mindre, med mindre af kontrol og færre lag af bureaukrati. Os der enten er offentligt ansatte eller dem der er på overførselsindkomster bidrager nemlig ikke med realindtægter via vores skat, vi betaler kun tilbage. Altså er den betalende/private/ikke-offentligt finansierede sektor nødt til at vokse hvis vi skal kunne betale for statens primære opgaver. Vi kommer til at opleve mere af individets og det mellemmenneskelige civilsamfunds ansvar, på mange af de områder hvor store dele af befolkningen i dag er blevet forvente med at det offentlige betaler.

Samtidigt er man nødt til at gøre op med produktet af kombinationen teoretisk social ingeniørkunst og forkælede venstrefløjsdrømme, der bygger på en utopisk tanke om at satse alt på "videnstungt" arbejde. Der findes absolut intet belæg for at vi skulle være klogere og udstyret med bedre hjerner end folk i andre lande, og derfor er dette en lettere debil holdning. Altså er vi nødt til at indse at vi skal være billigere for at være konkurrencedygtige. Det er de mange, der skal betale for det fælles, hvis vi skal kunne beholde en smallere og tydeligt indskærpet, men stærk velfærdsstat.

Hvis det er et virkelighedstro og ansvarligt Socialdemokrati der er på vej tilbage i Danmark, et parti, der ikke lover guld og grønne skove, via løfter om gratis høj levestandard, så er det muligvis tegn på konturerne af en Skandinavisk model for fremtiden. En model, hvor langsigtet forvaltende politik med tydelige spilleregler for alle parter er fremherskende. Er dette ikke tilfældet, og der i stedet dannes en borgerlig alliance med tydelige reformkrav, i lighed med den der vandt valget i Sverige i 2006 og igen i 2010, kan et vindende VKLA 2015 fortsætte det sunde momentum som den siddende regering har givet ophav til.

Profitkvotens fallande tendens

Det dånar ut i rättens krater! De snackade marxism i dagens DR P1 Morgen, angående någon ny antologi som är på väg ut från några vid universitetet i Århus. Inte för att den intervjuade tog upp de mest väsentliga aspekterna, men jag slogs av att marxisterna ibland saknas i samtidens debatt. Dagens ytliga identitetsvänster göre sig icke besvär: Vi behöver nämligen värdeskapande industri som ger arbete åt de många därest vi vill kunna försörja offentligt finansierade, såsom lärare och läkare, samt kunna vidmakthålla infrastruktur och försvar. Ifall bara marxisterna insåg att äganderättens upprätthållande är nödvändigt för att också de på botten ska ha möjlighet att resa sig, kanske våra palaver hade kunnat vara mer fruktbara. Med produktionsmedlens eskapism minskar givetvis också västvärldens inflytande och därmed delar av den kultur som försvarar det öppna samhället. Men också kunskapsflykt följer i efterdyningarna, eftersom att forskning & utveckling i stora drag följer med arbetarna på golvet till Asien och Sydamerika.

Likväl kan det hända att något skönjas vid horisonten. När Damarks fackföreningsordförande Harald Børsting nyligen gjorde gemensamt utspel med det stora liberala partiet och pratade reella reformer som skulle göra oss billigare, och därmed ge förutsättningar för konkurrensduktigt näringsliv - vilket ger intäkter och åt alla arbetande lycka bär, låter det ju faktiskt som att de sjunger i kör ur Internationalen:

"Båd' stat och lagar oss förtrycka,
vi under skatter digna ner."

On the fatuity of bailing out banks

In this recent speech at the Oxford Union, Daniel Hannan puts it just as brilliant as we have come to expect from him:

"There is a world of difference between being pro-business and being pro-market. Sometimes those two positions happen to coincide, often they do not. Corporatism is not the same thing as capitalism." 

"It was the cost of compliance that drove the small providers out of the market. It was the regulation that forced the consolidation which is what created this rigged too big to fail-phenomenon in the first place." 

We should not aim at a "system where a bank can not fail, but a system where a bank can fail without it being a problem - Without the taxpayer having to come and rescue it. In other words where there is a plurality of small providers each striving to offer a better service. We have the precise opposite of that, we have a series of zombie banks."

It somehow reminds me of The Five Steps of Corporatism:

1) LargeCorp cannot compete for customers, so it lobbies the government to regulate its industry. 

2) Government impose expensive rules LargeCorp lobbied for, planned for, and can afford. But some of LargeCorp's competitors cannot. 

3) With fever competitors LargeCorp grows into MegaCorp. It now can afford to buy other competitors. 

4) The people get suspicious of the size of MegaCorp and industry consolidation. They demand more government regulation. 

5) Repeat step 2, 3 and 4 indefinitely.

So much for the "too big to fail argument". That is why the leftists aiming their anger at the libertarians on this matter are erroneous, as those who with steady consistency have argued against the bailing out of both banks and companies with public funds, have been the libertarians. The same is very much true for those who enduringly, and with fierce agitation, have fought the battle against the printing of cheap money - Creating inflated capital to feed the above mentioned banks and companies, and to feed politicians wanting to score points with serving special interests.

Conservatives (i.e. not "Neoconservatives") may have disputes with the libertarians over certain important issues, but not on the topic of too much love for bloated governments.

Re-industrialisation gives hope for the future

In the age bracket of 16 to 25 years of age, Germany scored the lowest unemployment of 8 % among the 27 EU-countries in the first quarter of 2012, whereas Spain and Greece had the worst positions, with more than 50 % out of work. The United Kingdom ended up somewhere in between with 22 % unemployed, slightly better off than Sweden. Despite often many years of advanced studies, much of which arranged by governmental educational programmes, the jobs just are not there. Life that was just about to get started is replaced by dependency on family and friends, local authorities and social security.

An economy running empty

A flashback throws light over the scenario. Large parts of the European industry has emigrated, a movement that took off many decades ago. An ever-increasing urge for pay-rises and higher social benefits resulted in industrial wages, social security fees and taxes rising well beyond productivity. Hence western industry had to fight a gradually growing competion from the rest of the world. As many industries either closed for good or moved to brighter horizons e.g. in South-eastern Asia, China, the Indian peninsula and Brazil, the industry jobs in the West were too few and often regarded as too unattractive for the younger generations. Meanwhile, in the absence of industrial jobs on a larger scale, public bureaucracy grew and thus gave the pay-checks that people in the West demanded to keep up with their expectations of the high standards of living.

Nowadays few in the West have their income from production and refining. On the other hand has the publicly funded sector expanded enormously, with a flora of jobs, “job-creating measures” and projects for the unemployed in order to give the earnings requested. However, most of these schemes lack support in economical reality as they are publicly funded. This means that funds from taxes are being moved from one part of the economy to another, a game without revenue.

Too late the apparatus of politicians, bureaucracy and economists have started to realise that the West no longer is the King of the Hill, and we do no longer create the economical resources that the western welfare states demand. Despite growth in international trade, we borrow for our living and leave mountains of debts to future generations. It should have become obvious in the past years, but it seems as if many politicians in the West still have not woken up from dreams of unearned luxury as they hope to boost the economies with non-existent funds.

Widening knowledge gaps

Contemporary politics is dominated by naive wishing lists, paid for by the revenue granted from a high-tech industry. Blind for the fact that such very research and development to a large extent takes place in close cooperation with the production lines – which have emigrated. Another solution often put forward is the growth of a service sector, which may succeed in employing quite a few, but how it will manage to produce revenue in order to pay for expensive welfare is still left unclear.

Moreover, the countries we compete with also boast strongly motivated and clever students, and a youth who expect to work hard in order to accomplish what many in the West take for granted. Besides, it should be obvious for any thinking person with the least of life experience, that the bulk of the workforce just will not match the requirements of the high-tech “knowledge-intensive” industry.

Re-industrialisation employ the many

Unemployment in general and among young people in particular is a serious problem for the West. Some talk about a lost generation, meaning youth out of work and unable to become productive citizens saving up for their own future. So far no cure has proven to work. The good intention to create jobs by means of public funds seldom comes with revenue, and if it continues, the West will be left far behind and unable to finance what should be expected from the state.

In order to turn the situation right we need tough structural reforms and create conditions for re-industrialisation. To accomplish this, the West needs considerable re-thinking and to achieve a private business climate that attracts new industrial ventures. Of course this is not done over night, but through purposeful and stable long-term policies. A competitive industry is a necessary prerequisite to keep at least some of the welfare state, which should be paid for by the many rather than the few. Contrary to high-tech industry and a service sector, basis industry knocks down unemployment. With a growing and diversified industrial sector not only the necessary new jobs will be created, but it will also reduce the dependency on a few larger companies.

Strategies to save a core of welfare

Through identifying the primary undertakings by the state, the necessary financial resources can be prioritised: Schools, Civil contingencies, Police and Judicial systems, Infrastructure and Defence. The goal for the welfare tasks should be: All means to actual production of welfare – such as essential medical services, brief and basic income in between jobs, protection for children faring badly and similar morally obligatory frameworks of social security for those unable to make their own decisions – but nothing to unnecessary administration, many a time with metastasising layers of bureaucracy on top of another. After this slimming cure there should be a small but strong and clearly defined core of publicly funded welfare, where no doubts should remain as to what ends the fees should serve.

Insurances in excess to those included in a sharply delimited and thus a lot more durable welfare state, should be up to the individuals to decide upon and theirs to finance for themselves. The long term, sustainable, direction will be that human brotherhood should not be shovelled out with taxes. The civil society, you and me, families and communities, will have to take more responsibility.

Adjustment to reality – no bursting credit bubbles

As none of the new industrial superpowers stand in line to pay for the high standards of living of the West, our salaries will have to become subordinated to international competition and relative productivity. It is self-evident that this means reductions of the cost of labour, i.e. wages, salaries and the social bills on top.

With lower taxes, as a consequence of a smaller public sector and matching the reduction in labour costs, it will become possible to reduce price levels and make the individual able to live on his own income. Moreover will he become unable keep up bursting bubbles of loaning bonanzas. This in turn also forces the financial systems off the dependence of cheap, newly printed, money and will give both governments and the people a cold turkey realising that savings comes first if you wish to invest.

In order for the West to establish hope for a bright future it takes re-industrialisation. The path comes only with sweat and tears and a good portion of common sense. Politics will no longer be about listening to theoretically schooled oracles, competing with one another of what sounds good, but of what actually works.

The article above is written together with economist and entrepreneur Carl Anders Breitholtz and is a to some extent modified version of the Swedish text Återindustrialisering ger framtidstro and the Danish commentary article Genindustrialisering giver fremtidstro published in Jyllands-Posten in October 2012. 

 Claude Lorrain (1600-1682) Mill on a River (1631).

On value deterioration

In order for the government to spend money into any stimulus program, it must first pay for it by issuing debt. If the market demands too high an interest rate, possibly because there is an impending risk that the debtor will not pay his bills (the US owing 16 trillion), the central bank can print money (out of thin air) to purchase its own debt. As it seems just now, the American Treasury has no obstacles whatsoever in issuing as much debt it wants, as the Federal Reserve prints money to cover for it:

"It now takes $85 billion in monthly Flow injection from the Fed just to keep the market from collapsing."

Yes Bernanke, monetising the debt is what you call "Quantitative Easing". Dumping currency into the system is a recipe for disaster, making the existing dollars worth less. Devaluation in order to bail out banks, politicians and high standards of living, rather than adapting to reality. Does that really give the impression of being responsible and sound?

Fiat currencies, not backed by gold or silver, can reach a point when their value plummets. The ongoing Keynesian policies have made things worse, and we may well stand on the brink of much worse value destruction than if politics had been more sober in the first place. It had perhaps been unpopular, but it is supposedly the job political leaders get paid do to.

From dissatisfaction to disdain

Reality has never involved politics and economy having an ability to meet ever-increasing expectations, though many political and economical theorists have for many a decade argued just so. When huge parts of the western workforce was employed non-publicly funded and when industry was in abundance, came wealth and immense state revenue never seen before in the history of mankind. In the intervening time, as judgement was impaired by over-optimism, politics across the spectrum started adapting to the imaginative world views. Gullibility replaced sober administration.

Since reality is not optional, many are now waking up to a world where they have a hard time making ends meet, as they had expected more. Simultaneously a manic generation is retiring, and has become accustomed to the riches described in the paragraph above. Meanwhile some western heads of states claim that the crisis is over, others keep increasing debt and yet more are firing up the money printing press - undermining the very "trust" that has replaced the gold standard.

What any earnest and clear-headed leader with intact morality should do is quite the opposite: Explain how much it costs to run the state's primary undertakings, that it ought to focus on these first rather than granting wishes, and that the country needs to balance budgets - imports and exports, revenue and spending - both because no other country on the planet wants to pay for our standard of living, and because real poverty always hit those at the bottom the hardest. A political leader with dignity would obviously also make clear what hard work it takes to maintain our society and the toil behind building welfare.

Otherwise the people will continue to expect the impossible, why should they not when their chosen leaders cling to it. The contempt for politicians will increase as they cannot in any way keep their promises. Extremism and dark ideologies with utopian commitments will follow.

Laurits Andersen Ring (1854-1933) Landevejen ved Maagenstrup/Road near Maagenstrup (1888).

Om tiltro som møntfod

Det er en smule underligt at nogle klør sig i skægget efter endnu et bankkrak (senest Tønder Bank). Vi har været vidner til den største kreditekspansion nogensinde, egentlig gennem mange årtier, men massivt forstærket gennem 00-erne. Vesten har ikke haft forøgelse i værdi, snarere tværtimod, da produktion og forædling i store træk er flyttet til andre dele af verden. Samtidig trykker banker via nationalbanker nye penge for at alle skal være glade og slippe for at tilpasse sig med rimeligere levestandard tilfølge.

Efterfølgende kommer så hovedpinen. Som resultat af ovennævnte naivitet og økonomiske analfabetisme, skal kommende generationer betale af på de bjerge af gæld man med stor "succes" har fået oparbejdet. Værst er det at der ikke er udsigt til at politikere bliver klogere, de langer til stadighed hjælpe- og kickstartspakker bestående af penge der ikke eksisterer i reel værdi. Lidt som at tisse i bukserne.

Dear President Barack Obama

"Congratulations to winning the election. I am sure You will do your best continuing to advocate social progress in the United States of America, and best of luck with it. 

However, the total public debt of your country lies at over US$16 trillion* - a colossal sum! The truth behind all those numbers implies the spending of funds the United States in fact does not have, and it involves indebting future generations rather than living within your means. That is not very socially responsible, is it? 

Your aims are set high, and that is honorable. But politics must never be about what sounds good. A sober constitution is what has made America great and it is what will do so in the time to come.

Again, best of luck President. This was just a short but important reminder on this cheerful day, as the ones worst off are always those hit the hardest by long-term unrealistic economical policies."

It is important to keep in mind that there were candidates in the primaries devoted to actually balancing the budget, and had bold plans for doing so. Mitt Romney was not one of those.

U.S. National Debt Clock
U.S. Public debt on Wikipedia

* "Trillion" in short-scale English speaking countries is a 16 followed by 12 zeros (16 with the exponent 12).

Produktion ger värde, inte sedelpressen

Häromveckan publicerade jag tillsammans med Carl Anders Breitholtz och Jost Stricker Jørgensen en dansk version av Återindustrialisering ger framtidstro. Debattartikeln fick heluppslag i Jyllands-Posten och kompletterades med en passande illustration, vilken kan ses som digital faximil här.

Direktlänk (JP) till illustrationsbefriad Genindustrialisering giver fremtidstro.

Extreme and radical

We live in exciting times when those politicians wanting to stop increasing debt and are demanding governments to live within their means are depicted as radicals and extremists. It may come as a surprise to some, but other countries do not stand in line to pay for our high standards of living. Exporting freshly printed money will not solve anything.