Editorial 36. The future Agro-Livestock company
The European agriculture and livestock are dying from other causes due to “inflation and legislative mutation” and “Fonzi scheme” of the economy.
In some southern European countries are in force around 100,000 laws and regulations of all kinds whose publication is about a million pages and it is estimated that in 2012 will have been published other million two hundred thousand pages of new laws, overlapping between different strata of the public administration, in addition to the translation into national law of European legislation on the same issues causing a huge complexity, which has resulted in greater difficulties to create a company, starting a business or producing and selling products labeled and packaged. The agricultural and livestock production should move towards developing value added products but “legislative inflation” is a insurmountable barrier to agricultural business. Moving from the production and sale of milk to the production and sale of yogurt or cheese becomes almost impossible and export of these products utopian. Alongside legislative inflation should be considered “legislative mutation” especially in the constant tax changes that preclude economic planning and tend to avoid the reduction of debt by reducing borrowing costs and marketing are able to work outside the influence of the State intervention.
Consequently legal barriers, legal uncertainty and discouraging debt reduction leads inexorably to stagnation and paralysis deadly agro-livestock company private. The only way out would be public investment but it is evidence that the results are ruinous for two reasons: never invested well, in this case the Public Administrations if not who suffers reverses for losses (even worse, is rewarded a supercargo who has destroyed the agro-livestock) and never invested well, in this case the Public Administrations if the sector has a high level of profitability in terms of votes.
All this means that, unfortunately, the agro-livestock economy remains inert (nor private or public) and immersed in the Ponzi scheme of public accounts.
First consumerist bubble, then the housing bubble and now the public debt bubble are modern versions of the large-scale structure of the social security and compulsory. The Ponzi scheme, based on pay interest to earlier investors or pension, early pensioners, with contributions from new investors or new future pensioners, on the pyramid structure, has a limited run because the tax base is infinite and when the base continues to grow throughout the pyramid collapses. We have seen in the fall in consumption, in freezing or reducing pensions, we have seen in the housing bubble and the bubble will be seen in public debt.
As this is a legalized pyramid scheme as it serves to fund, through taxes, State budgets, and some political parties, the speed of is faster collapse since subtracted, working capital, significant amounts of money to support the structure of the Public Administration. But leaders have insisted on hold the error and try to maintain it by three measures: absence of reform the Public Administration (contrary to what they say the system needs all the civil service structure as revenue otherwise would fall to zero all as the middle class and business is tired of giving money to embezzlers.
So reforms Public Administration is delayed over and over again) issuing new money (this does not reduce debt, increase circulation giving the appearance that the government pay, but the value of money, even without the gold standard reference , has less and less value) issuing more debt (in the media described as a success that they cover new debt issues when in fact involves a degree of more debt, success would be to say that the States do not require issue debt to balance income with expenditure commitments covering social protection arising from social pact between citizens and States.) and when the pyramid collapses losses are socialized, and issues debt, you pay more money printing . But this last pyramid of debt, will collapse as all Ponzi schemes.
This spiral ignores agro-livestock enterprise that will continue to die, until a generation of entrepreneurs who do not believe in debt or grants, applying new tools of production and marketing are able to work outside the influence of the State intervention.