From the monthly archives:

May 2012

Why are big businesses trying to force governments to sign
secret trade agreements that ban innovation and freedom of
speech?
A thirty year old change in the way salaries are calculated
has changed the way companies deal with people.

Baby boomers made a lot of money.
They worked hard and made a lot of money.
The reason they made a lot of money was that their salary was
linked to there production. They got a guarantied 90% of the
value of their own production.
Profits were 5% of their production and the other 5% was used
for the cost of the tools they used.
So not only did they make a lot of money for them selves. They
also made a lot of money for there companies.

But of course there were companies who wanted more. They tried
to earn more money by making use of the fact that wages in
Asia were lower then in Europe and the US.
But they found that the costs of transport were so high that
is wasn’t profitable.
That is, until 1973.
Everything changed after 1973.

In 1973 the OPEC closed the oil faucets to demand a higher oil
price.
And they won.
After the boycott there was money to be made so they turned
the oil faucets all the way open.
But of course. When supply increases prices fall. So by 1975
or ’76 there was a big pool of relatively cheap fuel that made
production in Asia profitable.

In 1979 companies made their big mistake.
They thought that if they’d lower wages in the US and Europe
they would get a bigger piece of the pie.
But it backfired.
It turns out that when you have a boring job and a fix hourly
income you have no incentive to work harder. (And I’d rather
be unemployed then have my boss profit from my hard work.)

In the early 80s production both in the US and in Europe
dropped and a lot of people lost there jobs. By 1983 the
unemployment rate in the US reach it’s highest point since
WWII. Even higher then the unemployment rate of 2010 (10.8%
in 1983 vs 9.9% in 2010
)

Over the 80s profits and dividend on shares kept falling and
by the early 90s shareholders went looking for a new way to
make money.
They found that in the trade in stock.
Which meant that the price of stock had to be increased and
there is a very easy trick to do that.
You make large production deals and hire a lot of temp workers
to fulfil orders. That way your turnover increases but your
profits drop. Then you use the companies working capital to
invest on the stock market and your profits go up.
That way it seems as though your company is doing well and
stock prices rise.

But there are three down sides to this practice:
Temp workers don’t really have a job. They can be sacked at
any moment.
Investors no longer are stakeholders in the companies whose
shares they owned. Even when companies go bust, investors
make money.
And of course you can use tricks to increase the price of
anything. The price of credit for instance.

By the mid 90s governments in the US and Europe stepped up and
created new jobs. In the US by increasing the size of the
police force and the army. In Europe by increasing the number
of civil servants.
So now the US is stuck in a war on drugs that is going
nowhere. But can’t be stopped without increasing unemployment.
And in the Netherlands every abused child has ten case workers
who spend so much time in meetings that they don’t have time
to help the child.

Meanwhile blacks markets flourish.
Every product varying from marijuana to Louis Vuitton purses
can be bought at a black market. Usually for prices far lower
then the official price. Some products are even given away for
free. Music for instance.
World wide governments are involved in the war on intellectual
property and copyright and it seems as though many politicians
don’t understand how markets and innovation work.
They do.
But they also understand that governments that have become the
biggest employers, need a lot of money to pay wages. And
people who download free music don’t pay sales taxes.

ACTA and TPP

There is a very good reason why US owned companies with
factories in Asia want governments to sign secret trade
agreements like ACTA and TPP that ban music downloads and the
copying of products.

When the first factories where build in Asia in the 70s
standards of living were low and people could make more money
on fix hourly income then in Asian owned factories.
But as the number of factories increased they created their
own black markets.
Articles that are sold on the Asian black market aren’t copied
from branded articles. They are stolen articles that where
produced in the same factories as the branded articles.

In black markets, as in any market, wages are based on article
price times sales volume.
They have to reserve money to reinvest (as in buying new
articles) and they pay bonuses for risk (both the risk of
stealing articles and the risk of putting up the money to
create the shop).

Selling a lot of articles on black markets causes the standard
of living to rise. As the standard of living goes up, prices
will rise. Which means that wages will rise.
There will come a point where black markets will pay higher
wages then fixed hourly income.

I’m guessing that point was passed a few years ago.
So as the black markets grows bigger and the number of people
that can make a lot of money from black markets increase. The
number of people willing to work for fix hourly income will
fall.
Which means that there is a real danger that those US owned
companies will go bust.

Which is the reason why they are pressuring governments to
sign secret trade agreements that ban black markets.
These companies are fighting for their survival.
They clearly don’t care what else is lost.
As long as they survive.

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Paintball Warfare

by Henk ter Heide on Thursday May 31, 2012

in video

Paintball Warfare – Epic Paintball Battle
[youtube]http://www.youtube.com/watch?v=d_z2CA-o13U[/youtube]

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Body art

by Henk ter Heide on Wednesday May 30, 2012

in Paintings & photos


Painted rose
by *rubymoon-design


Bunch
by *rubymoon-design


Flying Ladybug
by *rubymoon-design


Bright wing
by *rubymoon-design


Raisins
by *rubymoon-design


Day of the Dead Girl
by *rubymoon-design


Filip’s DotDG
by *rubymoon-design


Bodypainting
by ~Maskenbildnerin


biomech
by ~tauart


biomechanical arm finished
by ~primitive-art


amanda4
by ~NeoXGeisha


jack and sally
by ~primitive-art


together1
by ~NeoXGeisha


fish
by ~tauart

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Big Poppa E – How To Make Love (nsfw)

by Henk ter Heide on Wednesday May 30, 2012

in video

[youtube]http://www.youtube.com/watch?v=obwNBGfhlZc[/youtube]

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Nice to meet you

by Henk ter Heide on Tuesday May 29, 2012

in Paintings & photos


Deliverance of amity
by `alexiuss


So close yet so far away
by ~waterspirirtjess


you are here
by ~DYKC


Come a Little Closer
by ~JonBeinart


dockingstation
by ~artofthom


EMPATHICS
by *vmaximus


The Vessel
by ~jslattum


see you at Fanimecon
by ~jiuge


Stairs
by *pesare


My Best Friend
by *Beloved-Creature


A new friend
by *perodog


The Gift
by *yaamas


Ruthie’s Gift
by *yaamas


My Friend Mr. Squirrel
by =Dezzan

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Painting on Water

by Henk ter Heide on Tuesday May 29, 2012

in video

[youtube]http://www.youtube.com/watch?v=tCamx8vzyCw[/youtube]

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Dragons

by Henk ter Heide on Monday May 28, 2012

in Paintings & photos


Spinosaurus
by *SaraRichard


Bath Dragon
by ~andycouncil


The Dinosaur Of Crouch End
by ~andycouncil


fin fang boom baby
by *nebezial


The Rainbow Dragon
by *yaamas


Inside you. Hope. Dragonseed.
by *AlMaNeGrA


Dragon: Complete
by *rgyoung


White Lattice Dragon
by ~creaturesfromel


Wandering Soul of Caddisfly
by *megamoth


The Birdcatcher
by *PinkParasol


fly to sky
by *lorlandchain


Mithral Dragon
by *kerembeyit


Battle Dragon
by *kerembeyit

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Partly cloudy

by Henk ter Heide on Monday May 28, 2012

in video

[youtube]http://www.youtube.com/watch?v=3Nv4SgA2M6U[/youtube]

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Love (nsfw)

by Henk ter Heide on Sunday May 27, 2012

in Paintings & photos


Dancing party
by ~INDRIKoff


Us
by *davidofarbela


Mourning Doves
by *yaamas


First Love
by *yaamas


storm is ok
by *pettryb


A Moment of Peace
by ~nanami-yuki


Most of me
by =Gold-Seven


No Words Needed
by `Saimain


Guardian
by ~SelinaFenech


Daphne and Apollo
by ~Trixis


pair 5
by ~Grinch7


kissss
by ~Grinch7


Love
by ~Cuellar

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Duo Maintenant

by Henk ter Heide on Sunday May 27, 2012

in video

The International Artist Agency – Duo Maintenant – Adiagio act
[youtube]http://www.youtube.com/watch?v=HHjF9i2mje8[/youtube]

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