Keynes & using Deficits for Fiscal Control

August 2nd, 2010

I recall being lectured in Economics II back in the early 60’s on Monetary policy and its usefulness in helping to control or manage the economy. Our lecturer at the time told us not to concern ourselves with studying this in depth since no government in their right mind would ever consider using such a bludgeon like instrument - like trying to repair a watch using a crowbar and sledge hammer.

Way back in Biblical times Pharaohs – stored up surpluses in the fat years in order to release the savings in the lean years. This is exactly what Keynes advocated in his writings. Because booms and recessions are a regular feature of the 10 year business cycle then all governments should be ready to tax appropriately as business activity picks up so that funds will be available for spending on essential services etc. thus maintaing employment levels and minimising the human suffering
arising from cyclical events.

This fiscal governmental approach can work quite effectively to help even out the worst effects resulting from business cycles. However, its success or otherwise will be entirely dependent on the willingness of the government at that time to begin taxing appropriately in order to build up a surplus to fund the next downturn. This absolute necessity is of course conveniently overlooked
in democratic economies where governments are so beholden to the votes of vested interest groups.
Taxes are always unpopular so the inevitable result is for the government of the day to put off taxing and just let the deficits keep growing and growing and growing.

Tempus Fugit

June 2nd, 2010

Looking at my email this morning I saw this strange message: “There are no new messages on the server.” This normally appears AFTER I have dealt with around 10 or 12 emails - the vast majority of which want to sell me some subscription to a scheme that can pour money into my bank account by the bucketload every day.

The only drawback to this wonderful news is that to find out the ultimate secret of how to achieve this marvellous result I must first start feeding barrowloads of MY money to the originators of these wonderful schemes. Now last time I looked a barrow holds a fair bit more than a bucket. So you do not have to be much of a mathematician to work out that your account will be wiped out much quicker than all those scam artists out there.

Now the Tempus Fugit of the title is referring to the fact that I have not made any literary entries for over 5 months. I need a good kick up the backside for that. I guess it all comes down to the fact that as we reach the twilight of our lives life seems to slip away so quickly; hence 5 months seems no longer than 5 days.

Labor’s Cyber Safety Policy May Still Not Get Through

June 2nd, 2010

If we’re lucky the legislation to impose mandatory filtering on internet providers may not actually get through this parliamentary term and be abandoned. As per the Sun Herald article on 30 May, “Filter goes ahead regardless”(1), Senator Conroy wanted it passed by June but it is now been delayed for ‘fine tuning’ and be ready by the second half of this year which could be any time from July to December.

What this could mean is that when the PM calls an election, one of the following may occur. Labour is returned and Senator Conroy is still the minister for his current portfolio, the legislation is introduced in the new parliament. This would be the worst case scenario because even if the Greens gain the balance of power in the senate (2) it won’t have any effect until after July 2011, by which time the legislation would have passed. Or here’s hoping Senator Conroy is shuffled to another less controversial portfolio and the filtering policy is ‘fine tuned’ like their ETS policy in an attempt to save political face.

The unknown in all this is the Coalition. A few Liberals like Joe Hockey have spoken against this policy(3) but we still haven’t had a clear position statement from Tony Abbott(4). If the Coalition wins and Tony Abbott utilises he political antennae, he will allow further ‘fine tuning’ i.e. give it to a senate committee to report at later date. Or revisit Howard’s optional filtering system and adopt similar measures as is done in the UK through greater education of internet use and reporting of illegal websites.

The U.S. State Department raised concerns about this filter(5) and their own ambassador to Australia stated on ABC TV, “we have been able to accomplish the goals that Australia has described, which is to capture and prosecute child pornographers and others who use the internet for terrible purposes, without having to use internet filters”(6).

The federal government argues that ISP-level content filtering is already occurring in other countries, including Canada, Denmark, Finland, Norway, Sweden and the United Kingdom(7), However they fail to mention that according the Canadian Radio-television and Telecommunications Commission, Canada does not regulate the internet(8). The United Kingdom promotes self-regulation via IWF Internet Watch Foundation an ISP established service allowing the public to report on criminal online content(9). Electronic Frontiers Australia report on government policy and/or laws regarding Internet censorship in various countries around the world listed the various approaches that governments have taken on illegal material(10).

The federal government’s approach to use offline material that is regulated as refused classification as a basis to filter internet content is a burdensome and heavy-handed way to deal with illegal material. The Howard government’s free internet filter (11) may have had its flaws but at least was optional. If Senator Conroy succeeds, I wholeheartedly endorse all efforts to subvert this filtering system(12) and declare that this Minister is a clear and present danger to our democracy. His Stalinist approach in formulating and pushing this policy through against all reasoned protest is nothing short of fascist obstinacy.

References
1. www.smh.com.au/technology/technology-news/filter-goes-ahead-regardless-20100529-wmg7.html
2. blogs.abc.net.au/antonygreen/2010/05/how-the-senate-coul-look-after-a-double-dissolution.html
3. www.joehockey.com/mediahub/speechDetail.aspx?prID=913
4. www.theage.com.au/technology/web-filter-splits-opposition-20100406-rpf7.html
5. www.thepunch.com.au/articles/us-concerns-on-stephen-conroy-isp-filter
6. www.abc.net.au/tv/qanda/txt/s2864512.htm
7. www.dbcde.gov.au/funding_and_programs/cybersafety_plan/internet_service_provider_isp_filtering
8. www.crtc.gc.ca/eng/faqs.htm
9. www.iwf.org.uk/public/page.103.htm
10. www.efa.org.au/Issues/Censor/cens3.html
11. www.abc.net.au/news/stories/2007/08/20/2010161.htm
12. www.smh.com.au/opinion/politics/internet-filter-offers-fresh-target-for-hackers-20100531-wr8u.html

Early Results

December 28th, 2009

The different thoughts swirling through my head about Korea, army life, carrying heavy loads and maintaining balance stayed with me and more or less forced me to put together a simple wooden stool which incorporated these principles of weight distribution, balance and movement.

Having completed the first model a number of others were also constructed and sold.
However, it was the realisation that the concept could be applied to full size seating
at desks, tables etc. which occupied my time, energy and funds over the next four years.

Meanwhile studies in anatomy, physiology and physiological psychology were
undertaken to discover those scientific principles, and any research experiments
which might help to explain the greater comfort experienced with the Kneelsit as
compared with all other forms of seating. Lessons were also commenced in the
Alexander Technique and closer observation was made of clients posture problems
which I encountered in my counselling practice.

Further research into back problems and their possible origins brought an understanding
that two common factors seemed to be relevant with those clients whom I counselled:-
a. Psychological problems, such as rigidly held attitudes, poor self image etc. feelings of strain, tension, balance awareness and poor posture were all inter-connected. …

b. Persons engaged in sedentary occupations appeared to be more severely affected in many cases and a number of them consistently complained of poorly designed chairs at their place of work.

Continuing investigations slowly made it clear that the proprioceptive sense was one which was little appreciated or understood by society in general, despite the important part it plays in our total feelings of well being. Secondly that this neglect has been exacabated through poor body use and the undue strain of badly designed seating.

During the development stages of the Kneelsit, checks were constantly made with
volunteers of various heights and build to ensure that the angles, distances, height
differentials etc, all felt comfortable for the people concerned. No special notice was taken of any ‘norm’ or ’standard’ (except for the standard or common desk height). The most important criteria was that the Kneelsit had to “feel right” for each person when it was adjusted for their particular body size.

Maasai, Meditation and Korean porters

December 28th, 2009

In 1988 while carrying out research for a paper on Meditation and Health which I was writing as part of a course in Psychology I decided to take on a course in meditation called Vipassana. Research had alredy been made into Yoga, Zen and Transcendental Meditation but I knew nothing about this new form.

A big attraction for me was the fact that when I asked about the cost of the course I was told that there was “no charge”. At the end of the course we were told that we had been able to attend at no cost to ourselves because someone before us had made a donation and we might like to do the same.
It may sound a crazy way of financing but it worked - and so well that within 10 years of their starting up Vipassana centres had sprung up in over half a dozen countries around the world.

The main emphasis of the Vipassana technique is to train you to fully focus your awareness on all sensations occurring in the body. As your mind wanders you have to bring it back again to focussing on the sensations. In essence it is a mental discipline which sharpens and improves your proprioceptive sense as well as providing other benefits.

The course involved sitting in silence for up to 15 hours each day, apart from meal breaks and occasional walks along the bush tracks which surrounded the centre. As can be imagined one of the main reactions to sitting on cushions on the floor for lengthy periods was aches and pains throughout the body with quite the worst being pains in the back.

Various devices such as plump cushions, stools etc. were tried and finally a small wooden stool with half round legs was tried and within a few minutes of sitting on it my back pain disappeared. I discovered later that this little stool was an exact copy of the camp stool used by the Maasai tribesmen over the centuries of their wanderings. Its exact origins, of course, are now lost in the mists of time.

As I now sat with much greater ease I thought about the reasons why this might be helping. First off I was above an exact balance or fulcrum point that continually moved slightly back and forth. The second thing was that my thighs were of necessity angled at around 105º to my body. The only slight drawback was that my knees started to become sore from resting on the floor. This observation reminded me of school-days and kneeling up in chapel. We were fortunate in that our kneelers were actually padded and you could lean back with your bum against the edge of the pew.

My mind being more free to wander again (naughty, naughty! - I was supposed to be concentrating solely on sensations in my body) I began to recall my days in the infantry during the Korean campaign. We carried some pretty bloody heavy loads up and down those steep hills. There was spare clothing, boots, bedroll, ammunitions and weapon - in all it was probably between 40 - 50 kgs yet we did not experience back pain since our load was spread evenly around our body - ammunition in our forward packs to balance the heavy load on our backs and all the time we kept moving. Balance and movement were the key features which allowed us to carry such loads without back pain.

Korean porters carriede even heavier loads of fuel and ammunition up the steep slopes on an ‘A’ frame of their design. I noticed particularly that at all times their backs were straight but leaning slightly forward and their knees flexed so that all the weight was carried over their hips and knee joints.

In my next blog I will outline the initial results which transpired from my ruminations.

Comments from Andrew

November 29th, 2009

Hi Chris,
I took a chance and bought my kneelsit chair in February, after trying as many high-end ‘normal’ chairs as I could find. I work in front of a computer, and was having problems with my upper back and shoulders, as well as feeling like my lower back was not being supported well enough in the office chairs provided by my employer. I was just feeling like my shoulders were hunched and my bad posture was a direct result of my sitting position.

Primary in my decision to go ahead and try one out was the truly risk-free nature of the trial…I must have emailed Greg at Kneelsit 5 times, confirming that if I didn’t like it, all I’d be out was shipping back to their California facility. He was very responsive in his emails, not to mention being very patient in answering the nervous questions of a hesitant purchaser. I also thought that the back support that is unique to the kneelsit chair, when compared to the other kneeling options, would be of primary importance, especially for extended periods of sitting. Honestly, I can’t imagine having a kneeling chair without the back support…it would just be too tiring!

I definitely like the chair, and it has helped out with most of the problems…my shoulders hang naturally now, and my core is involved in supporting me, so I feel like my spine is much more aligned. Also, I feel much more ‘poised for action’, like I am literally on the edge of my seat. It did take some time to get used to it, as well as some fiddling with the adjustments, but nothing too bad.

I hope I’ve answered your questions…I highly recommend this chair if you are finding yourself displeased with other ergonomic-type chairs. Design Within Reach in Houston (on West Gray) let me borrow a few of their chairs for a day (Aeron, a few others) to try at the office…I liked them, but I wasn’t all that impressed with them. With Greg’s customer service and willingness to stand behind his product, I’d say you can’t go wrong with at least trying it out! Several of my office mates are VERY jealous (but nobody has actually ponied up the cash like I did…unfortunately, I had to pay out of pocket!)
Let me know if there is anything else you’d like to know…good luck with your chair shopping!

Best,
Andrew. B
Texas

DEFICIT & FISCAL MANAGEMENT

September 30th, 2008

On a recent interview our esteemed Treasurer, Mr. Swan, appeared quite ludicrous in his
frantic attempts to avoid having to even say the word DEFICIT. Honestly you would think he was being asked to say something vile and obscene. The weak excuse given to the interviewer, Kerry O’Brien, was that even whispering the word could immediately drain out the “confidence” of business firms and the community in general. To be quite honest I was amazed and disgusted!

It would seem that our politicians have placed a complete ban on the writings about the Great Depression and what policy was finally put in place to get the countries working again. Quite simply it was putting in place responsible fiscal policy and the use of DEFICIT financing to pay for essential infrastructure. This was the brainchild of the brilliant economist John Maynard Keynes who put forward the notion that economies went through regular cycles of activity between highs of plentiful spending and full employment to the downs of “pulling in the belt” and large numbers of unemployed.

Keynes stated that in difficult times governments should immediately engage in deficit spending on essential, useful and needed infrastructure - namely roads, railways, schools, hospitals etc. This would provide the necessary boost in activity by businesses , give men and women back their dignity and instill a feeling of confidence and optimism within the whole community.

There was one important, essential proviso for this to work effectively over time, however, namely the necessity to gradually increase the levy of taxes on the whole community once the level of employment and business activity had reached fair and reasonable benchmarks. In this way monies would then be made available for a surplus in the government budgets to fund the next turn in the cycle of economic activity when it would again be necessary for the government to “prime the pump” so to speak.

This method of managing the economy did work reasonably effectively over time until such time as the the gambling mad “monetarists” got into power and persuaded the government to just use “interest rate changes” to control the economy. Monetary policy has proved about as effective in running the economy as using a sledge hammer to sculpt a statue in marble. However, it enabled the monetarists and their mates on the stock exchanges around the world to clean up a fortune for themselves and in the process cause misery to emerging economies as their currencies were made the “poker chips” for the Stock Exchange casinos.

I really look forward to that day when the mention of the possibility of the government deciding to engage on a short bout of deficit spending will bring a surge of hope and optimism to those folk who have been waiting ages to have that hospital built, that railway extended that new school started , the research into the causes and the new treatment of aids.

Special for October - save $101 on the basic Kneelsit.

September 30th, 2008

As our contribution to ease the burden on all those hard working people out there whose back’s are going to be burdened for many years with even heavier loads by being forced to “pick up the tab” for the mess left by the WSBs and WFCs - the Wall Street Burglars and the Washington Fat Cats - we have decided to reduce the price on our standard Kneelsit chair by $101.00 for the month of October.

So if your back has been giving you gyp lately, get on over to our website and give yourself a break!

How our Spine works.

September 7th, 2008

The main job the spine has to do is to act as a foundation or frame for the other parts of our body to hang from. Since we now walk upright our spine also has to carry a fair amount of weight. To enable movement joints are needed.

Our spine acts as a casing to enclose and protect the main communication lines from our brain - our spinal cord. Openings occur at intervals all down the length of our spine which contain nerves going to all other parts of the body.

In total there are 24 bony blocks or vertebrae. The five largest of these are at the base or lower back and carry most of the weigfht . Above these are the twelve which contain the chest and have our ribs attached. At the very top of the spinal column are the seven cervical or neck vertebrae. These blocks of bone or vertebrae gradually increase in size from the top down to the base - rather like a columnar pyramid but have
2 distinct curves when viewed from the side.

The shape of these curves is determined by the structure and shape of the joints between each vertebrae - the discs.

Projecting out from both sides of the spine at the rear of each vertebrae are two arms called pedicles which are joined to each other by laminae or plates of bone which form the back wall of the nerve trunk canal. Each vertebra is joined to the one above and the one below it by a joint called a disc. To keep the spine relatively stable there are two additional joints known as facet joints coming out from the back of the pedicles and laminae. These slide up and down against each other and determine the extent and direction of movement by their shape and angle. They allow us to bend our spine from front to back and side to side.

To move our spine requires muscles and these in turn need to be attached to something to provide leverage. We also need attachments for holding ligaments and limiting excessive movement. These attachments are known as spinous processes and spread out sideway and rearwards from the pedicles. The rearward facing process is actually the knobbly part our spine which can be felt from the outside. When standing up straight these can be felt as a more or less vertical line.

Thus some of the main functions of the spine are: an ability to carry weight, provision of stability to the body and to act as a protective covering for our main communication lines from our brain. In the next section of our blog we will deal with those most important parts of the spine which enable movement namely the discs.


Development of the Spine

July 31st, 2008

In the earliest stages of evolution within the oceans animals depended on organic nutrients and thus had to move around to find it. Muscles need a firm support to be attached to so a primitive spine developed. While animals remained in the water the spine consisted of hollow tube filled with a flexible material which would allow side to side as well as forward movement. As the animal evolved into a larger and more complex creature it needed a stronger spine. This was first made of cartilage and then bone. Since bone on its own is too rigid, cartilage segments give it a necessary flexibility as well as a useful jointing function.

Getting on to land and then off the ground required the fishy fins to be strengthened and filled out so these organs developed an internal bone structure. The frontal fins became detached from the head and were thus able to move independently. In the early stages both the spine and the rear fins worked together to allow locomotion. As these rear limbs became more adaptable they became stronger and longer and completely responsible for movement while the spine itself became shorter and stronger.

Our very earliest ancestors were possibly somewhat like a sloth but then gradually gained an ability to move more quickly along branches then to
grasp the branches as well to aid in locomotion so their trunks became shorter and their limbs became longer and stronger. Those animals that moved down to the ground to go further afield for food became at times two-legged and eventually adopted this method of movement more completely.

To stand easily on two legs requires several changes to occur. The pelvis that attaches our hips to the lower spine is needed to provide a floor for the stomach. At the same time being wider helps to give us a better base for balance. The hips, pelvis and knees needed to straighten out to allow the body to become completely upright but this was not easily accomplished so it became the task of the spine to be responsible for the rest of the straightening.

There are three main sections making up the spine. At the top is the neck or cervical region made up of seven blocks of bone or vertebrae, Below the neck in the middle is the chest or thoracic region which has twelve vertebrae and each of these bony blocks has curved ribs attached to them. Finally at the base is the lower back or lumbar region having 5 vertebrae. This lower section has a reverse curve which is allows for some straightening of the whole body. To assist in this straightening process the neck also has a reverse curve. These two curves allow us to stand upright with a reasonable degree of balance and most important enabling our head to face directly forward which is also an important determinant of good balance.

As you observe the spine from the top to the bottom you will notice that the vertebrae gradually become larger. This allows the spine to carry an
increasing amount of weight. As mentioned above both the lumbar and cervical regions are curved and bend backward. The curves help reduce the load on the lower region of the spine. In addition the backward bend at neck allows us to look straight ahead and so saves us from falling flat on our face - hopefully!