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Money matters:
Graham Macdonald
MBMG International Ltd.
Nominated for the Lorenzo Natali Prize
China, ASEAN sign investment accord
How did we get into the mess that the world is in to today?
And how will we get out again?
Princeton historian, Sean Wilentz, believes, “Many historians are now wondering
whether Bush, in fact, will be remembered as the very worst president in all of
American history.”
Tim Price of PFP recently wrote, “Perhaps the biggest danger is to assume in a
crisis, that politicians are not in a position to help anybody, other than
themselves.”
However bad the last POTUS may have been, it is doubtful that he caused the
current crisis single-handedly. More significantly, it is even more doubtful
that President Obama can do much to solve it. Price believes that in a better
world, we should all be taught more at school: “What we know as fractional
reserve banking equates to letting banks keep a tiny fraction of their deposits
(their depositors’ money, one should perhaps add) in order to lend
out the remainder for profit (theirs, not the depositors’). Simultaneously, they
retain the obligation to redeem all depositors immediately upon demand.”
Price then reminds us of the words of late US economist, Murray Rothbard. That
is that, basically, “Banks are inherently bankrupt because they issue far more
warehouse receipts to cash (nowadays in the form of deposits redeemable in cash
on demand) than they have cash available. Hence, they are always vulnerable to
bank runs. These runs are not like any other business failures, because they
simply consist of depositors claiming their own rightful property, which the
banks do not have. Inherent bankruptcy, then, is an essential feature of any
fractional reserve banking system.”
Or as another economist, Frank Graham wrote over 10 years ago, “The attempt of
the banks to realize the inconsistent aims of lending cash and still to
represent that cash is available on demand is even more preposterous than eating
one’s cake and counting on it for future consumption … a delusion dependent upon
the right not being unduly exercised.”
Almost 50 years ago, Rothbard added to the view that bailing out the banking
system if and when the system started to fail, would only make matters worse.
“Any interference with their comeuppance via bank runs will establish banks as a
specifically privileged group, not obligated to pay their debts, which will lead
to later inflations, credit expansions and depressions.” The last 50 years have
seen various local interventions to failing banks, which have led to an entire
flawed system. Further intervention now would, according to Rothbard, only
extend and amplify the problems.
“If government wishes to see a depression ended as quickly as possible, and the
economy returned to normal prosperity, what course should it adopt? The first
and clearest injunction is: don’t interfere with the market’s adjustment
process. The more the government intervenes to delay the market’s
adjustment, the longer and more gruelling the depression will be, and the more
difficult will be the road to complete recovery. Government hampering aggravates
and perpetuates the depression. Yet, government depression policy has always
aggravated the very evils it has loudly tried to cure. If, in fact, we list
logically the various ways that government could hamper market adjustment, we
will find that we have precisely listed the favourite “anti-depression” arsenal
of government policy.
Thus, here are the ways the adjustment process can be hobbled:
1) Prevent or delay liquidation, lend money to shaky businesses, call on banks
to lend further, etc.
2) Inflate further. Further inflation blocks the necessary fall in prices, thus
delaying adjustment and prolonging depression. Further credit expansion creates
more bad investments, which, in their turn, will have to be liquidated in some
later depression. A government “easy-money” policy prevents the market’s return
to the necessary higher interest rates.
3) Keep wage rates up. Artificial maintenance of wage rates in a depression
insures permanent mass unemployment. Furthermore, in a deflation, when prices
are falling, keeping the same rate of money wages means that real wage rates
have been pushed higher. In the face of falling business demand, this greatly
aggravates the unemployment problem.
4) Keep prices up. Keeping prices above their free-market levels will create
unsalable surpluses and prevent a return to prosperity.
5) Stimulate consumption and discourage saving. We have seen that more saving
and less consumption would speed recovery; more consumption and less saving
aggravate the shortage of saved-capital even further. Any increase of taxes and
government spending will discourage saving and investment and stimulate
consumption, since government spending is all consumption. Any increase in the
relative size of government in the economy shifts the societal
consumption-investment ratio in favour of consumption and prolongs the
depression.
6) Subsidize unemployment…”
You don’t have to agree with every one of Rothbard’s claims to accept the
general argument. We’re not nearly as eloquent as Rothbard was or Tim Price is,
but to our simple way of looking at things, we don’t see how you can fix a
crisis caused by too much debt by adding more debt. Somewhere, sometime, someone
is going to want their money back.
US taxpayer’s money alone that has been committed to the banking crisis now
exceeds USD8 trillion. If you add in the other loans this comes up to USD13
trillion and then if you also add in the other non-earning commitments of the US
Government like welfare, Medicare, pensions, etc., the total debt of the US
Government is USD23.8 trillion. Which means that every man, woman and child in
the country owes USD80,000. Now, if you consider that the GDP per capital is
USD44,500 where the hell is the rest going to come from? Just out of interest,
the UK total exceeds GBP1 trillion - or GBP35,000 per taxpayer.
If you accept that a bad banking system got us into the mess where we now find
ourselves, you might want to at least question whether a prescription for a lot
more of the same is any kind of likely cure. The obvious answer is that it is
not. In fact, some would argue that we have not even entered the tunnel yet,
never mind looking for light at the end of it.
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The above data and research was compiled from sources
believed to be reliable. However, neither MBMG International Ltd nor its
officers can accept any liability for any errors or omissions in the above
article nor bear any responsibility for any losses achieved as a result of any
actions taken or not taken as a consequence of reading the above article. For
more information please contact Graham Macdonald on
[email protected]
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Snap Shots: by Harry Flashman
Become a professional flasher
 For
many photographers, even keen amateurs, the flash remains something of
an enigma. We know how it works, but applying that to the kind of
photograph we want can be perplexing. Today, I hope to de-mystify this
problem.
Just about every camera these days comes with its own built-in flash.
Technical terms ‘guide numbers’ don’t seem to matter any more. The
camera does it all for you. But there is always a downside to just
letting the camera do all the work. And that is you get what the camera
thinks you want - not what you might want.
Take shooting indoors at night (always a good time to use extra
lighting), but you still want some of the background to show up.
Shooting people at a party is a good example. You want more than just
‘heads’, you want to show the venue as well.
To do this is tricky, but there are several ways. You can use more than
one flash (sometimes called ‘slaves’) and they fire when they detect the
flash burst from the primary flash, or you can even link them all up
with flash cables triggered by the shutter on the camera. You set the
slaves to light up the background, while the main flash illuminates the
subject. That’s Option One.
Option Two is to use a tripod and the time exposure setting to record
the background and then manually pop the main flash to record the
subject in the foreground. Difficult, but possible.
Option Three is the simplest. Set the camera’s aperture to around f5.6
and the shutter speed to 1/15th of a second. You can even hand-hold at
this slow shutter speed, as long as you lean on something. The slow
shutter and wide open aperture gives enough light to get the background
to show up, and the flash burst is enough to record the subject. Try it.
Works!
Of course, to do this you have to take the camera out of Auto mode and
into manual. In fact, if you want to try something, tonight shoot the
family at 1/8th, 1/15th and a 1/30th with the f5.6 aperture and see the
differences you will get. The subject will be OK in each, as the
lighting for the foreground depends only on the flash power, while the
background depends on the ambient light, and the longer the shutter is
held open, the more background details you will get.
Another trick you can do with any camera that has a flash, be that built
in or screwed to the top of it, is to throw color at your subject. The
important item of equipment is colored cellophane paper (sometimes
called ‘gels’ in the industry). Put a blue gel over the flash head and
you will get a very ‘cold’ photograph, especially if you are taking
pictures of people. Conversely, put an orange gel over the flash and you
will get a wonderfully warm person in the foreground.
For an even wilder result, if you can take the flash off the camera,
shoot the subject side lit with a coloured gel over the major flash.
Experiment with blue, red, green, orange, yellow - we are not looking to
reproduce reality here, we (that’s you) are trying to produce an
artistic effect.
Most keen amateur photographers will have heard of the term “Fill-in
Flash”. This refers to a reduced output flash burst, used to lighten
shadows in harsh daylight, or to illuminate the front of a back-lit
subject.
With many of the modern cameras, fill-in flash is simple, because the
camera is programmed to do this automatically. However, with manual
flash guns, “softly” is the word. You must reduce the output of the
flash so it will gently lighten the shadows and not “blow out” the
subject details like a searchlight. The trick is to either diffuse the
flash with tracing paper or a handkerchief and do not adjust the camera
settings, or reduce the flash power setting by two aperture stops below
that indicated by the camera. In other words, set the camera lens on f11
and the flash on f5.6. Simple! Try some of these tricks this weekend.
Modern Medicine:
by Dr. Iain Corness, Consultant
What is it like to have an MRI?
I watched a TV show the other evening. Set in the US, it
revolved around a Dr. House, apparently a drug addicted know-it-all medico,
who shot a corpse and then carried out an MRI and blew up the machine with
the shrapnel from the bullet. Total fanciful nonsense. There is no Dr. House
practicing in my hospital, I hasten to say.
MRI (magnetic resonance imaging) is one of the battery of diagnostic
examinations that can be done. The procedure is similar to an X-Ray, in the
fact that the end result shows the internal structures of the body with a
test that produces very clear pictures - but without the use of X-rays. MRI
uses a large magnet, radio waves, and a computer to produce these images.
Some folk are a little apprehensive about these tests, but the risks to the
average person are negligible (as long as Dr House isn’t treating you). MRI
uses magnetic fields, rather than radio-active imaging. However, the
magnetic field is very strong. Walk into the examination room and the MRI
can wipe the details from the magnetic strip encoding on your credit card
(this may be a good thing)!
People who have had heart surgery and people with the following medical
devices can be safely examined with MRI: surgical clips or sutures,
artificial joints, staples, cardiac valve replacements (except the
Starr-Edwards metallic ball/cage), disconnected medication pumps, vena cava
filters or brain shunt tubes for hydrocephalus. Corpses with bullets in the
brain are not in that list.
However, there are some conditions may make an MRI examination inadvisable.
Tell your doctor if you have any of the following conditions: heart
pacemaker, cerebral aneurysm clip (metal clip on a blood vessel in the
brain), pregnancy during the first three months (we are just being super
cautious here), implanted insulin pump (for treatment of diabetes),
narcotics pump (for pain medication), or implanted nerve stimulators
(“TENS”) for back pain, metal in the eye or eye socket, cochlear (ear)
implant for hearing impairment, or implanted spine stabilization rods.
MRI is also different from X-Rays in what it can pick up. The MRI can detect
tumors, infection, and other types of tissue disease or damage. It can also
help diagnose conditions that affect blood flow. Tissues and organs that
contain water provide the most detailed MRI pictures, while bones and other
hard materials in the body do not show up well on MRI pictures, as opposed
to X-Rays which do show bone well but not soft tissue. For these reasons,
MRI is most useful for detecting conditions that increase the amount of
fluid in a tissue, such as an infection, tumors, and internal bleeding.
I think most people are familiar with the standard X-Ray procedure, stand
there, breathe in, hold it, now breathe out routine, but MRIs are a little
different. These are done with you lying there and inserted into the MRI
scanner, which is like a tunnel. Those people who are claustrophobic can
have a little problem here, as the MRI “tunnel” is very tight.
During the procedure, which can take up to an hour, you can hear the
operator talking to you, and he or she can hear your reply, but you still
will feel rather isolated in your magnetic tunnel. You can also hear (and
feel) muffled thumps and groans that come from the tube, which can be
somewhat unsettling.
In some cases a contrast material may be used during the MRI scan to enhance
the images of certain structures which may help evaluate blood flow, detect
some types of tumors, and locate areas of inflammation. The contrast
material is injected via a vein, and the MRI operator will advise you when
this is being injected. You may feel a warmth or even tingling feeling as
this is happening, but this is not worrisome.
The radiologist then reviews the pictures produced and will advise you of
the outcome. I hope it will be good news!
Heart to Heart with Hillary
Dear Hillary,
A friend who lived down the road from me has been working on his house for as
long as I’ve been here and that is about 2 1/2 years. His father moved from the
UK a couple of years ago, bought a house and died within a couple of months. The
house went to my friend who immediately put it in his Thai wife’s name. Seems
reasonable except he didn’t get any sort of lease agreement so as far as it goes
the houses are hers. She booted his butt out and had the houses for sale. Last
summer the father’s house was on the market for 2.7 million baht. She just sold
it for 1.55 million baht. Down and dirty and she’s got the money. He’s got fond
memories of a house that was once his, he thought. My friend has since obtained
a solicitor/lawyer and is putting a stop to the sale of the house he was working
on. He doesn’t know at the moment if there is anything he can do about dad’s
house but it doesn’t look good. After the death of dad, Paul’s mercenary wife
asked him to sign something that was in Thai. The trusting fellah did and it is
probably not a good thing for him.
That’s it in a nut shell and should serve as an example to all expats to get a
binding agreement in a language they understand to prevent such happenings in
the future. It seems to happen quite often and stupid expat guys should be
warned and warned again and again. Get it in writing. Don’t trust the sweet
young thing. Even if she is a sweet young thing if something happened to her,
her family would swoop in and scoop up the place.
If you know someone (in this situation) kindly mention the story and see if
there is some interest. I’d be glad to help my friend and any naive expat/ATM.
The Advisor
Dear Advisor,
While this certainly does happen in Thailand, just as you have written, it also
happens in the Western world, without the cover of a foreign language agreement
or contract. With 50 percent of marriages in the West ending up in divorce, and
divorce settlements never being equitable, your advice on being careful is good
for everyone. However, getting a “binding agreement” in English in Thailand is
difficult. Thai is the only legal language in this country. While it is
impossible for a foreigner to own land in his or her own name, it is still
possible for a foreigner to protect his land holding by legal means, as any
reputable real estate agent could have told your friend.
Dear Hillary,
I am a regular tourist to Thailand and enjoy my holidays each year, other than
one thing - the sight of old, fat British and American men walking down the
street hanging on to sweet young Thai girls, who are young enough to be their
granddaughters. They think everyone is envious of them as they parade their
“trophy” for everyone to see. It isn’t envy, but disgust as far as I am
concerned. Don’t they realize just how this looks? And why do these girls even
think about going anywhere with these gross men? Haven’t they got any shame or
self respect? I don’t see this type of behavior in the US. Why should these men
do it here? Or is this the only reason they come to Thailand in the first place?
I am quite happy to be seen with my elderly partner, who is of a similar age to
myself. Why aren’t these men happy to be seen the same way?
Disgusted
Dear Disgusted,
I think you may be judging the men rather unfairly, my Petal. It is not the
one-sided situation as you have described, but more of a mutually beneficial
association. Be they British, American or even German and other European places,
where do they get any female company in their own countries? The simple answer
is they don’t - other than maybe striking it lucky in a “Grab a granny” night
held once a week at the local dance hall. The situation here is quite different,
as they can “Grab a Gorgeous” from the local Thai dancing halls (recognized by
the chrome poles) which are open every day and stocked with gorgeous young
things, very willing to be led by the hand. That is, provided the rental fees
have been decided upon. You see, the association is the subject of a financial
agreement. For a set sum, the “trophy” agrees to befriend and look after the
fat, older gentleman, a situation that cannot happen in the country they have
left. So for the two people involved, it is a win-win scenario. It only falls
down when the male in the partnership starts to believe that his gorgeous young
thing is actually in love with him, and not his money. This is the well known
walking ATM, with the letter above as an example. However, I do believe that you
should be perhaps a little less judgmental when looking at the old men and their
young ladies. I am sure you would be upset at people judging your association,
without knowing what the real situation is.
Let’s go to the movies:
by Mark Gernpy
Now playing in
Pattaya
Inglourious Basterds: US/ Germany, Action/ War – Quentin
Tarantino’s long-awaited, exceptionally bloody tale of Jewish-American
troops on the hunt for Nazi scalps in World War II France, starring Brad
Pitt. Rated R in the US for strong graphic violence, language, and
brief sexuality. Generally favorable reviews.
Bandslam: US, Comedy/ Music – Probably the only film ever with a
character named “Sa5m.” (Hint, the “5” is silent; it’s a sign of her
independence, you know?) A new kid in town, teenager Will Burton,
assembles a fledgling rock band to compete against the best in the
biggest event of the year, a battle of the bands.
Buppah Rahtree 3.2: Rahtree’s Revenge: Thai, Horror/ Romance – The
incremental sequel to Buppah Rahtree 3.1: Rahtree Reborn that
continues the romantic-horror story of the revengeful ghost of Buppah
and her love struck cartoonist.
Orphan: US/ Canada, Drama/ Horror – A dandy horror film! I
thoroughly enjoyed it. A husband and wife who recently lost their baby
adopt a 9-year-old girl who is not nearly as innocent as she claims to
be. If you enjoy a good spooky horror film now and then, I recommend
you see this one. Rated R in the US for disturbing violent content,
some sexuality, and language. Mixed or average reviews.
Trail of the Panda: China, Family – Pandering to the Panda craze
sweeping Thailand, this film seems tailor-made for Thais. It’s a Disney
live action film directed by Chinese director Yu Zhong and shot in the
wilderness of Sichuan (destroyed during the massive earthquake of May
2008). About a little panda cub who is separated from its mother and
then rescued by an orphaned boy. Made in conjunction with China’s
Wolong Panda Reservation, it’s a plea for preserving the existence of
pandas. (The parents of Lin Ping, the new Chiang Mai Zoo panda cub born
May 27, are from the Wolong Panda center.) The story is sweet and the
film has several things to recommend it – including the very winning
11-year-old boy who stars, the loving shots of the countryside, the
animal photography – and overall it’s a good film for families with
kids.
Sam Chuk: Thai, Drama – Based on a true story, this is a rarity for
Thailand: a thoughtful, well-done social issues film, exploring the
lives of seven teenaged boys, each entangled with and devastated by drug
use in a small province called Sam Chuk. Their local teacher tries to
teach them to cope with their problems. Affecting performances, choppy
storytelling style, a bit sentimental at times, but overall a
heart-rending document. I highly recommend it. Directed by Tanit
Jitnukul – definitely a director to follow, and this a film to see.
Jija - Raging Phoenix: Thai, Action/ Romance – Thai martial arts
action films of the year, starring the amazing girl from Chocolate,
Jija Yanin, a true female action icon, who here combines her stunning
martial arts style with a love story and break dancing, led by the quite
talented and amazingly athletic B-Boys Thai. A rather odd mix of a
film, but it should please martial arts fans.
In Country & Melody 2 / E-Som Somwang: Thai, Comedy/ Musical – Som
and Somwang from the first episode abandon their musical band to pursue
their dreams in Bangkok.
G.I. Joe: The Rise of Cobra: US, Action/ Thriller – From Hasbro the
toy-makers we get another action-adventure film based on toys, very much
like Transformers: Nonsensical mayhem, and very loud, but
stylish. I actually found it more enjoyable than Transformers.
Wear earplugs! Generally negative reviews.
The Taking of Pelham 1 2 3: US/ UK, Drama/ Thriller – I found it a
thoroughly engrossing and exciting film, and a satisfying dramatic
experience. Denzel Washington plays a New York City subway dispatcher
battling a criminal mastermind, beautifully played by John Travolta.
Rated R in the US for violence and pervasive language. Mixed or average
reviews.
Dear Galileo: Thai, Comedy/ Drama – A pleasant enough diversion
about girls on their own in Europe – low-keyed and low-powered, slow and
meandering. From Nithiwat Tharathorn, continuing his examination of
students in love as two teenage Thai girls spend a year in London,
Paris, and Rome. Based on the director’s own experiences of living and
working abroad.
Harry Potter and the Half-Blood Prince: US/ UK, Adventure/ Fantasy –
This, the latest and darkest Harry Potter episode, is a dazzling film,
with brilliant cinematography, fantastic effects, and moments of
emotional power. I think you’ll find it incoherent unless you’re a
close follower of the previous films, or have immersed yourself in the
books. If not, large sections of the film will make no sense
whatsoever, because all the characters seem to know things the audience
is never privy to. Great art direction and scenic design, and it’s
really well directed, with excellent performances. Generally favorable
reviews.
Ice Age 3: Dawn of the Dinosaurs [in 3D]: US, Animation/ Comedy –
Good animation. Mixed or average reviews.
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