Although Professer John Hearn advised me today that taxes and land prices play no part in cost-push inflation, because cost-push inflation is a myth, I’m sorry, I can’t quite believe that, Professor Hearn.

We regularly witness land price bubbles bursting into economic recession. You might say that, in the absence of effective government fiscal action, economies are left to ‘correct’ themselves – that is, to deflate. (But that’s probably your “natural business cycle”, Prof?)

However, from what are land prices deflating if not from the excessive land price inflation that inserts so much financial damage into world economies at regular intervals?

And you don’t understand MMT, either, Dr Hearn?

So, you wouldn’t see the case for VIMMLBUTT in the upcoming financial depression?

That’s a pity.

The 1920s was characterised by enormous speculative bubbles; the real estate bubble bursting first, prior to the collapse of the stock market in 1929. The so-called 1920s “Florida bubble” actually encapsulated the frenetic activity in real estate markets across the world.

Therefore, we had the incredible 1920s speculation bursting into the 1930s depression.

We’re doing much the same things now, so why should the outcome be any different? Why won’t we experience this 2020s financial bubble bursting into the 2030s depression? Governments are clearly avoiding addressing the issue.

The situation is ‘locked in’ once we understand these points: –

1. That real estate cycles peak every 18 years, and another is due in 2025/26.
2. High real estate (land) prices have become sacrosanct; corrupted misgovernment acts to finance the final surge in speculation at these moments, and unfortunately not the creation of real wealth. Tax regimes encourage the process.

So, if the 18-year cycle holds, we should be seeing real estate markets achieve their final pre-depressionary peak in October 2025.

Let’s see how we go on a monthly countdown?

There’s a natural distribution–i.e. rent, wages and interest–but we resist it by taxing everything.

When do we discover privatised rent as problematical, and land prices, taxes and the apparently invisible cost-push inflation that they generate as economics’ great stumbling block?

And, of course, poverty cannot exist in a distributional system delivering the national net surplus equally to everybody.

The ‘unlikely’ coming together of the LIV golf renegades and the PGA and European group isn’t quite so unlikely once you understand the process.

It’s a matter of “He who controls the purse strings calls the shots“.

That’s the way of the world, and it’s increasingly those individuals who control the rent calling our ‘shots’.

Doesn’t that, alone, make a case for public capture of our rent, like the Saudis do with their oil? They’re a powerful lot because of their control of oil and oil rents, but we could match them if we wanted to do so, because the rent flowing from our land is just as real as that flowing from their oil.

It’s just that we’ve come to believe the rent of land is ours as individuals, not the country’s: and we’re wrong there!

It wasn’t always like that. In what has become to be known as The Progressive Era, Australia used to capture much of its rent at all three levels of government. WE had an extremely low cost-of-living. The USA taxed real estate at only local and state government level, as shown here.

Note, it was The Progressive Era, not the ‘communist‘ era.

It’s a pity that we began to fall for the story that “There’s not enough rent!” at the 1930’s depression. We were sold a pup by neoclassical economists, because the truth of the matter is that all taxes and their excess burden, come out of rent. (ATCOR & EBCOR)

Let’s hope that’s something we rectify at the next financial collapse?

And Lars Doucet’s book “Land is a Big Deal” is an excellent read, too!

LOOKING BACK

If I had my life to live over

I’d dare to make more mistakes next time. 

I’d relax. 

I would limber up.

I would be sillier than I have been this trip.

I would take fewer things seriously.

I would take more chances.

I would take more trips.

I would climb more mountains and swim more rivers.

I would eat more ice cream and less beans.

I would perhaps have more actual troubles

But I’d have fewer imaginary ones.

You see, I’m one of those people who live sensibly

And sanely, hour after hour, day after day.

Oh, I’ve had my moments,

and if I had it to do over again

I’d have more of them.

In fact, I’d try to have nothing else.

Just moments,

one after another

Instead of living so many years ahead of each day.

I’ve been one of those persons who never goes anywhere

Without a thermometer, a hot water bottle, and a parachute.

If I had to do it again, I would travel lighter than I have.

If I had my life to live over,

I would start barefoot earlier in the spring

And stay that way later in the fall..

I would go to more dances.

I would ride more merry-go-rounds.

I would pick more daisies.

• Nadine Stair, Louisville, Kentucky, at 85 years of age, as reported in the Association for Humanistic Psychology Newsletter, July 1975  

See also “Henry George and the Catholic Church”

And “Frank Brennan and Human Rights”