Russian enigma
Meanwhile, Russia continues to get saner and saner.



Their national budget has been running a SURPLUS for two years, and they are using the PROFIT to improve health care and education. Special focus is on demographics, which means encouraging mothers to have more kids. Better obstetrics, more benefits for parents.

Unsurprisingly, this is a restoration of Soviet principles. No debt, operate at a profit, encourage families.

The difference is that Soviet housing was terribly overcrowded, so incentives for parents didn't help much. Now housing is better distributed, so all of the incentives are in the same direction.

How does Russia get a surplus? It's a deep dark secret,a riddle wrapped in a mystery inside an enigma inside a puzzle. We'll never be able to figure it out or apply it.

Here. Lean in close while Polistra the bookkeeper whispers the deep dark secret.



Let's open up the secret. TAX. More specifically VAT, which is the real secret of Soviet and now Russian success. When government isn't afraid to collect TAX on ADDED VALUE, two things happen. 1. Government runs a surplus in good times, and builds up SAVINGS which it can use in bad times, as Medvedev discusses in the above clip. 2. Government wants to have more income, so it ENCOURAGES companies to ADD REAL VALUE. The incentives are slanted toward REAL WORK AND REAL BUSINESS that serves a REAL PURPOSE.

We've got it backwards. Our government refuses to tax corporations, so it runs on debt and money-printing and QE. Our government doesn't gain income when corporations run real business, so it allows corporations to specialize in Share Value manipulations. Both sides are living on pure abstraction, pure self-dealing with no PRODUCTION. Neither side has any reason to do anything solid or meaningful. Real value and real purpose are seen as Negative Externalities that must be EXTERMINATED. The result is genocidal.

Labels: Natural law = Sharia law, Natural law = Soviet law, storage

  ¶ 2:44 PM