Once upon the Time the Nation was founded on common, private or public land- the territory where the people dwelling there spoke the same language. The newcomers and migrants were welcomed if they learned the customs and language of the place. This, in Witchdoctors view is based on liberty , freedom and equality and freedom of speech and assembly and protest. The land, the trade the works and production, the culture were mostly controlled by the same people of the same land. The exchange between different lands was on basis of equality and demand and supply.
The people built their assets on their public or private land of their nation and the arts and crafts mirrored the landscape of the culture.
The Wealth of Nations is not streaming of goods of services as Adam Smith sells.
It is the control of the living space- the Lebensraum. No streaming there except for the miserables in all spectrums. The wealth of people is counted by Generations. It is more than saving- the accumulation of surplus value- which is based on ,for example, owning a house. Surplus value resulting in generations of living and saving is not the whole picture. One has to add the community, neighbors help, Do It Yourself, or self building and producing as the extra saving shared within the community. This is the Tangible capital of the Wealth of a Nation. Production is always a means of saving as the end goal.
Today the tangible capital in form of this hardware assets owned by the population of the Nation is the real Wealth base.
The paper tigers floating out of thin air intangibles always seek safe haven in real, hard stuff, and the roof over the head is the essential wealth.
Once upon the time not so long ago, the nation through its local Oligarchy and Government, through the debt driven economy of GodFather Suckers acted on behalf of the God father Suckers as Proxies of selling the nation and peoples land, works, culture, assets, properties, flats houses, production to someone somewhere over the rainbow living on the upper ladders of the chain of accumulation of the surplus value. Through the debt driven economy.
This writings are the continuation of the surplus value of God Father Suckers and its Proxies, the siphoning and vacuum cleaning of the surplus value, made by depleting the Tangible Capital of the land, its people and its assets. By slowly bankrupting and spoiling the nation. And its people.
So, around Christmas 2024,while Witchdoctor was writing about the meaning of Santa Claus as the free giver, the Slovenian Govt announced a punishment tax of 1.5% of the market value of the people assets. . It was made on some basis of Freudian local mindset of white envy in order to make people equal in a sort of perverted and fake, false socialist experiment which always fail and enrich somebody else…
So if one has a flat or similar asset, building plot or any tangible capital in form of the real estate and if this person is not living in this asset- flat or house – which definitely she/he bought or inherited from his ancestors living in this land of this Nation, he has/had to pay a punishment tax of owning a property.
If a person has moved to live together with its partner and so has a residency in the partners house and not any more in his own flat, his flat will be taxed 1.5% of the current market value which means anything over or from 2.000 euros up to 15.000 euros or even more if he made a lot of money on completely legal basis or he inherited by generations of work and has built HIS OWN SURPLUS VALUE and with this accumulated capital built a house. If unfortunately his parents are still alive and live in this house while she lives elsewhere, shehe will have to pay the punishment tax for the house his parents gave him but she is not living there anymore. If she bought with a loan from a bank the small flat for the children and is still paying the loan and was hoping to give the use of this flat for her children and maybe to swap the bigger flat she is in when she will be older so the children move in a bigger flat, she will pay around 3.000 euros each year and should add on this a loan from the bank she is paying for the next 25 years to come.
This punishment tax of ownership of the house her parents live in, but she lives with her partner in his flat, or the children are living there but they are not registered as owners, or she is renting in the meantime the flat for max 90 days per year through Arbnb , means that the 3.000 euros divided for 90 will add the rent cost per night to 33.333333333 euros per night or soon 50 Euros per night. 90 and soon only 60 days is the maximum one can rent with ARBNB, by law. Well, nobody will rent a house where the overall “production costs” -costs of furnishing, cleaning, fees and taxes by Airbnb and the Government taxes on income, etc… all this exceed the surplus value- the final price which the customer/tourist pays.. and so she is driven by the Government out of the market.
So what she will do? Sell under the margin call on the margin price of fire sale, try to earn more money by finding another job in order to keep the family assets in family possession for the next generation in this lousy Nation?
Or buy gold and try to hide it somewhere as the only investment left for the old age because her pension looms as an added number of two peanuts which do not even cover the cost of bills?
Or play the Casinos- The Stock Market which looms as a chain of failures rigged by the Big Three? Black Rock, Vanguard and State Street.
So here we go, from micro to macro. From particular to general.
The Nation which sold its land, its assets, its production means is a failed nation.
When, by the far left party in government, in the name of equality in the place called Slovenia where 85% own a house and around 300.000 own more than one asset/flat the punishment tax strikes, the answers are:
If the Left and the neolibral Center in Government wanted to punish the very rich (???!!) why they did not start with a simple law: every asset-flat or similar- more than THIRD OR FOURTH FLAT is taxed while the others are not?
In the World where there are corporations which pay something around of 0.5% of taxes on profit and the surplus value is counted in over 900 TRILLIONS of surplus value in the name and disguise of derivatives, the punishment tax is not a tax on inequality but a tax which the God Father Suckers Proxies use as the levy in order to suck out the last remain collateral- the people houses and flats and similar.
This is the real plan for the chain of sucking the surplus value. All other mumbo jumbo of inequality spin is bullshit. It is the Davos Man Plan of sucking all away. They suck at the bottom and this is a proof. They never suck- drain- vacuum clean- the surplus value at the TOP.
The ideological plan of the IMF, and others in the Davos Trilateral or cfr or bidungsbergungs or whatever is clear. They want to move the tax burden from the capital towards the physical persons assets. So, the falling rate of surplus value is solved by lowering the taxes for the Capital Owners, letting them pay the shit wages to the employees. By lowering the taxes on income wage earners the State gives the impression that wages have grown in nominal value, while the capitalist owner can keep paying shit wages and so gaining the surplus value by not even moving a finger!
Less income taxes and other taxes from work paid to workers mean less welfare health pensions and services, the State collects less, but in the meantime it relieves the tax burden from the capital owners. The shit jobs of low productivity with this model can even feed the Zombie Companies for a while.
If by chance, as the Money Lenders or the IMF or the OECD or whatever lizard there want to shift the tax burden from the Capital expenditure- the capital owners tax burden in the guise of paying tax or having a tax burdened workers- if by this trick of preserving or raising the surplus value of the capitalist- if by this trick The Low income working class gets income tax relief- if by this move the workers on minimum wage or around it profit from less income tax- if by this trick of shifting the burden from a ZOMBIE COMPANY WHICH is using too much intensive low skilled labor workforce and is shifting the cost on the State budget/deficit side – if by this move the ZOMBIE COMPANY having too much already low paid workforce can take a breath of air if not it will default because the surplus value margin has already tanked and sunk to the level of bankruptcy- By this trick move – the Slovenian State – or many others in the same shit position- IS CLEARLY SHOWING WHICH INDUSTRIAL capitalist extraction MODEL The Government is planning to promote or keep having. The Govt wants this as the easy solution, since they have no better idea, and because the austerity rules / debt ratios- of the fiscal compact in the European Union prevent State Spending- investment. With this IMF or OECD targeted State help for the Zombie Companies which have prevalent low income low pay intensive labor production, the Slovenian Govt is de facto deciding to promote and keep this industrial model. This model of production brings also the social model of low earners and a consequent cultural model of a whole nation- society. It also means speeding – even more than now- the IMPORT of low skilled working force from the Balkans and from the even more southern members of the Europe. The numbers of this low skilled workforce is already over 10% of populaceand by speeding this labor intensive model of production already the rate of integration and assimilation of this new migrants- not the ones from Africa or the Middle East!!- is provoking problems within the Nation. This leftist or neoliberal industrial model of low skilled expansion of Zombie Companies on the brink of default brings water to the mill of the extremist or rightwing parties. Which, them, by the force of the capitalist model of production in place will keep the model because any other option means another way of investing and development– which is forbidden by the balanced budget directives of the EU Masters and by the ruling class tupidity and slavery to the Masters of Universe- but they will make the rightwing rhetoric and atmosphere nasty as a propaganda tool of keeping the same srfdom depletion model.
In the meantime, the very skilled or university educated electric, digital, mechanical or robotic engineers and other professions are fleeing into Nations which promote the model with high surplus value productivity and lower income taxes on high productive earners/workers.
The Two models are different in income taxation: the high tech model gives tax rebates on the high earners- engineers and similar, while the Slovenian chosen serfdom egalitarian model of production loves the Zombie capital of low paid low income intensive exploitation!
The false promise that this trick makes economy grow more ,and that there is paradise on the horizon, is shown to be mediun and long term proven wrong on any chart on the Trading economics site especially if compared with the real rising costs of living paid by the ordinary people.
It is this trick the whole west with the trump, musk far right is falling, planning, scheming in the name of bullshit competition. The Sheep, especially young and male and similar socio pathic social sturds are believing it. Until the day comes, when it will be too late as when the things will go real bad and when not even the riots will help.
This MOTTO is OECD wise and promoted for years. Strike down the taxes from work, make the capital owners rich by paying pittance for work and move taxes from the workers wages into the workers assets- houses, flats, etc!!!! Two birds in one shot! The people loose slowly all while believing in this busllshit.
So, all this is the one and only , the same agenda of how to siphon the collateral in the name of surplus value chain of the Tangible and move into Intangible financial assets of the Capital. OK, this is a bubble and is going on for almost 20 years but the new assets which are taxed or the new reorientation which this does by moving the people savings away from flats, houses as the source of survival of the family tree or for the old age. This hard earned savings move into intangible assets which Witchdoctor counts as any piece of paper backed by the money out of thin air on the fake promise of being tangible as is my brick house. Back to Black Rock, Vanguard and State Street.
This is accumulation of surplus value promoted by the equality of communist type by the far left and now even by the neoliberal center and right. On behalf of the owners of trillions!!!!
Not to mention the animal feelings of the growing lumpen proletariat and precariat which basks in this zero sum game eating the cake crumbs of the last remnants of the middle class perspective in the name of “spend all save none” doomsday.
The other goal of this cargo cult economy is to shift completely any burden of the Sate. In the case of the punishment tax on the flats and houses the State has shifted the burden on the new investments on social housing investments to the already existing stock of houses owned by the private owners. The result will be the raise of the rents! The rent will get even more high and expansive since the tax burden will be definitely shifted on to the renters! So, it will be not the “rentier class “ which rises the cost of renting but it is the State cargo cult economics..
The sectorial slump in housing investment/building by the private sector is obvious, from furniture to any product or goods concerning living in a flat or house.
Not to mention thta this 2.000- 3.000 Euros are a blow to a person purchase power capbility for any other good this person spends in!
All this happening in already stressed market with huge signs of recession!
It is all in the name of the balanced budget and State “saving” which translates into the real saving loss of the people. Punishment Taxes and this stupid economic models have only one result: they take money (savings) out from economy. They take the surpluss value savings out from the peoples pockets.
All this in the name of the schwartze null budget which does not invests in social housing and so balances the real estate offer and demand and by doing so reduces/lowers the price of housing assets – flats- on the market..
Imagine a Nation being a Person; by this constant sucking and draining of his being, he will loose all his muscle mass, all his energy, all his strength and blood mind sight and all., Only the skeleton remains.. to be used as the fertilizer for potassium and phosphorus and calcium for some foreign plant growing somewhere on Mars.
CONCLUSION
This conclusion is going one level up.
Dear fellows of the lost arc, once upon the time, around and after the Greek default and the Greek guinea pig cure treatment by the EU no bodies, many of us were talking between us, since the media and the spin was obnoxious as usual, that Germany has won the Third World War in Europe without even firing a single shot!
With the Maastricht criteria, fiscal compacts, balanced budgets of household economics of the schwabian housfrau and similar… By and because of the constant huge surplus of Germany, all other EU States, German direct competitors, were and are having constant deficits. With the eastern block countries entering the EU, Germany has gained a lot of LEBENSRAUM for its mercantile and industrial chain and property and assets it was looking for when making the second world war. Of course in different sauce and by different means. Through its own productivity and with the help of the EU architecture, because of the laws of the debt driven economy and its interpretation in the EU fiscal compacts, it crushed the direct competition of Italy, France and others with the “accounting” laws of the Euro straight jacket. Currently only Spain Sanchez Govt is showing signs of life outside this model. Take overs, mergers and the value chain of industrial production finally got his top end in the finished products “made in Germany” and so the surplus value chain of the EU ended as the surplus value at the top companies of German origin..
But the wheel of history turned, energy wise and China wise.. The Top ( Germany ) is sinking with the model it has built, and we are sinking with it.
The road to end and change this was written in this blog from the beginning. The pick is yours. It looks nasty, the pick you picked.
Apart from this text,
A nice analysis of Heiner Flassbeck on current German madness…