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Return ABC for money and economies
Collected in 2019
Shorts Tried to collect basics for finances and money to this page. At the bottom there is western welfare standard. General goal for all.  After welfare standard comes wage and employment system for European Welfare country.
Economy runs in 3 circles

Economies operates with three endless loops. Money and bank notes are not very important for economies.
Researched these basics in late 1990s for Africa project. And for a fight against hunger and poverty.

Lets say that we have 3 persons.
- Carl Cock is food maker, who sells food portions. 
- Willie Wood is woodchopper, who sells planks.
- Fanny Farmer is cattle keeper, who sells milk, eggs and meat.

Carl sells and delivers food to Willie. Willie sells planks to Fanny. Fanny sells food ingredients to Carl.
In order to get this system going, Carl, Willie and Fanny decide to use 100 gold coins for cross-trading their work.

- - Inflation Loop - -

Carl Cock wants more money from the food.  He raises the food portion prices 10%.
Willie's food bill raises 10%. In order to pay the food bill, Willie  has to raise prices of his wood products 10 %.
Now the hike moves to Fanny Farmer. Fanny has to raise milk and meat prices with 10%.
When Fanny raises her meat and milk prices, the circle of money closes and Carl loses the 10% benefit, he tried to get from Willie.

This money oriented loop is for useless inflation. The trio need more gold coins for their daily business transactions than before and that's all. Besides inflation loop, there is also similar kind of deflation loop. Deflation loop is very rare in real life.

- - Growth Loop - -

When Fanny decides to build a bigger barn, Willie has to make more planks than before. Willie gets more money from Fanny, but Fanny loses money. Since Willie has to work harder, he needs more food from Carl. Carl gets more money from Willie. Since Willie eats more than before, Carl has to buy more ingredients from Fanny. In order to produce more food ingredients to Carl, Fanny needs the bigger barn, she is currently constructing.

This is the basic loop for healthy, growing  economies. If trio keep the nominal prices unchanged, they need more cold coins for cross-trading.

This loop can be maintained by raising living standards or population or both.

- - Recession loop - -

If Willie gets exhausted, and slows down the plank production, he doesn't need as much food as before. When so, Carl reduces the food ingredient purchases from Fanny. Fanny has too many cows and hens in her barn. She has to kill few cows and hens, for getting rid of the ingredients, Carl does not buy anymore.

This loops comes true in recessions. The amount of gold coins remains unchanged, but they become useless. Usually the prices raises so, that they match to the amount of existing gold coins. I have used term "fake money" from surplus coins, that comes from reckless bank note printing and deep recessions.

- - - -

As you can see from the above, doing things to others is the only way to keep economies healthy and running smoothly. In modern world, loops show in hirings and firings, companies do. Inflation-deflation loop shows in wage negotiations.

Money is a tool for cross-trading work and things you do. 

Everything in economies is based on these three loops.

- - Inflation - -

In principle inflation should be slightly below the economical growth. 

Sunday, 8th December 2019

- - History of Money - -

Money is one of the oldest and most important inventions of mankind. Both Egyptians and Mesopotamians are known to have played with money.

- - Wages - -

Your wage is always paid from the revenues, your employer gets from sold products / services.

Company's capability to raise wages comes from revenues. In fair, old and steady businesses, the total amount of labor costs can raise as much as revenues. With automation you can reduce the amount of required staff. And raise the per-employer wages.

From Emilia's Last Christmas ATS Blog page you find Boys sponsors policies for dividing good results to staff, bosses and owners. System is presented as potential wage system for Maxwell Thunderbird movie.

Triangle

Triangle is a system, that connects financial growth, inflation and interests together. When economy grows, wages raises. These hikes result into inflation : The prices raises, when people, who are connected with production-delivery chain gets more money.

When inflation grows, the interests must be follow and beat the inflation. If interests fall behind inflation, national wealth starts to decline. Then you start to lose capital. Capital escapes to countries, where you get proper interests for your money.

The interest in triangle is wider than interest for bank deposits and loans. It includes dividends, companies pay to their owners. And also interests governments pay for their bonds.

Financial growth is primary component in triangle. It is difficult to create growth with inflation and-or interests.

Thursday, 12th December 2019

- - Bonds - -

 Bonds are the way, governments ask loans from commercial stock and money markets.
 Traditional bond is earmarked to some big national investment / project.
 Roads and railroads are typical targets for the money, government asks with bonds.

Soft hyper inflation

Soft hyper inflation begins, when you take debts and and push money into markets year after year. There aren't two-three-four percent inflation numbers. Soft hyper inflation downgrades value of money, just like hyper inflation. Rate is slower.

Soft hyper inflation is almost invisible thing in our world. In principle soft hyper inflation comes true, when prices raises more than wages. Nominally and statistically you are doing better than before.

But lets say that you get $100 hike to your wage. But your living costs raises $120. When so, your chances to buy things after food, rents and mortgage down payments falls. Before gas pump economists and millennium system went so, that you got $100 hike and your living costs fell $80.

There isn't exact system for defining your essential living costs. Soft hyper inflation shows first in spare time and holiday spending. Soft hyper inflation reduces the number times you can go to movies and restaurants. It reduces the amount of money you spend to and during your holidays. You have to leave some repairs undone. Keep your car longer. And so on.

By the time price-wage system start to react almost immediately to debts and additions, with what your power keeper increase the amount of local currency. Could talk about soft hyper inflation loop.

Soft hyper inflation is not directly connected to growth-inflation-interest triangle. Hikes-n-falls in for example imported oil prices separates soft hyper-inflation from the triangle. Expansion and big hikes in public sector can also separate soft hyper inflation from the triangle.

People of USA and Germany have been suffering from slow hyper inflation. Both nations have lost a lot from their old glory and wealth.

- - - -

Tax relieves without cost cuts or tax income surplus are nothing. Taxes are used for paying wages for civil servants and running public organizations. Nowadays also for paying enormous debts and their interests.

Sunday, 24th November 2019

- - Soft hyperinflation at home - -

Food bill is the biggest thing, you can control with your daily selections. Loosely controlled food bill gives you extra money for spare time and additional purchases.

Food bill belong to things, which are always taken to notice, when you estimate soft hyper-inflation. Banned taxation and home keeping are the others, which are always counted in.

- - - -

As term soft hyper inflation is better than slow hyper inflation. Soft hyper inflation can be slow or fast. Just like common inflation.

Governmental Debt

Governmental debt begins with inflation loop. At some point you must catch cap, the initial inflation loop creates in between the economies and the amount of money in the markets. If you fail to catch the cap, at some point you move into recession loop and soft hyper inflation. If you use debts to for example running the government or warfare, your chances to catch the cap in time are very small.

Without new usage, debt money goes into prices of existing things in the markets.

Big governmental debt makes it difficult for a national economy to get into strong financial growth. Strong financial growth always results into inflation and higher interest rates. Strong growth makes debts costly to government and commoners.

Thursday, 12th December 2019

- - National incomes - -

When you calculate national net incomes, you should downgrade the income with public budget deficit, which is financed with bank notes or loans. In gas pump, US oriented land keeping, you reduce taxes and increase debts. When you play with national net income, the yearly increase to public debts should be taken away from it.

Governmental Stimulus

With governmental stimulus, you try to get national economy back to growth loop. In the past stimulus was financed with national savings, tax surpluses from the past. Nowadays when you don't have have any national savings, stimulus packs must be financed with loans or fake money.

When you finance stimulus with debts, you should never do stimulus packs during the economies are growing. When economies grow, you must pay the debts and remove the surplus coins from the markets.

Long term debt driven stimulus year after year, will ruin national economies. It ends into hyper inflation or soft hyper inflation loop. 

Governmental stimulus pack should be an investment pack, that results into something, that benefits or boosts domestic businesses. Pack should also concentrate to domestic companies and people. If the pack fails to meet these basic demands, the pack is certain to fail. Stimulus money is wasted to nothing.

New deal in 1930s USA created highway network. This network increased popularity of cars, it made state-to-state deliveries faster and cheaper.

Thursday, 12th December 2019

 
Taxes

Taxes are paid for financing shared liabilities. Taxes belong to charitable money ... alms. Domestic commercial companies and businesses are the ones, who pays all the taxes. Taxes are paid-based to your wage, but the payer is always your employer. Taxes belong to indirect labor costs.

Taxes are paid for financing things, citizen's have agreed to maintain together. When politics and civil servants refuse to act for the good of country and it's citizens, taxes loses the base for the payments.

Military, police, justice and fire extinguishing are always fully financed with tax money. Construction and maintenance of roads, streets, undergrounds, railways, airports, bus & railway stations are usually financed with tax money. Great deal from network for web was financed from taxes.

Basic weather services, construction and maintenance of water and waste-water systems belong to typical tax money targets.

Education and healthcare costs are usually at least partially shared. Some countries provide free education and healthcare to their citizens.

Poor people are usually helped with tax money.

Thursday, 12th December 2019

Weird visions

 Politics, midgets and some civil servants have weird and different kind of vision from taxes.
 When all citizens are for example known to want better and wealthier life, politics and others are never allowed to act against common will.
 They are not getting paid from driving the country and it's citizens into poverty.

Money doesn't vanish when markets fall

It was not known, what happens, when stock markets falls. Everyone, who has shares, are last buyers and it looks like that money vanishes. But, when you use bank notes for purchases, those physical bank notes cannot vanish anywhere. This was the situation before digital money. Modern digital money can vanish just like that. When your account is charged and the payment never reaches the destination, the money is gone. In common transactions the receiver always sends the received amount back to sender. If there is a mismatch, transaction is ignored.

In stock market fall, the money which came to markets from dividends, fees and paychecks, seems to vanish during the fall. The value of stocks, into which money was spent-invested, falls. Everyone has busloads of fallen shares in their portfolios. Same happens, when you buy a new car. New cars value always falls after purchase.

  Player A . Player B . Player C .. Totals
Action Stocks   Cash      Stocks   Cash     Stocks   Cash     Assets Cash Capital
Start up - $200 - $200 - $200 - $600 $600
Initial purchases 5x$20 $100 5x$20 $100 5x$20 $100 $300 $300 $600
Stock A to $40 5x$40 $100 5x$20 $100 5x$20 $100 $400 $300 $700
A sells one to B 4x$40 $140 5x$20+1x$40 $60 5x$20 $100 $400 $300 $700
Stock A falls to $30 4x$30 $140 5x$20+1x$30 $60 5x$20 $100 $350 $300 $650
B sells $30 to C 4x$30 $140 5x$20 $90 5x$20+1x$30 $70 $350 $300 $650
Markets fall 50% 4x$15 $140 5x$10 $90 4x$10+1x$15 $70 $175 $300 $475
Dividends A$5, B$10, C$5  4x$10 $160 5x$10 $140 4x$10+1x$15 $100 $175 $400 $575

As you can see from the table, cash doesn't vanish in stock market fall. The losses come from fees and running costs.
In a closed system dividends are the only things, that bring money and new capital to markets.
In this simple sample, start up money goes to company, that lists itself at stock markets. In reality money goes to retired capital / investors, etc.
After major fall, it is not possible to get the original $600 back.

Withdrawals and start ups are the only ways for money to vanish from the markets.
- digital money and electric system allows you to create new start ups all the time.
- during actual fall, total cash column shrinks a lot, because of the withdrawals.

Fall in stock prices reduces need for money. Lets say that markets uses $100 billions a day for stock exchanges. When markets falls 50% daily revenues fall to $50 billions. The vanished $50 billions start to push economies into inflation. It converts into fake money.

When value of world economies is around $80 000 billions, daily turnover is $220 billions. This $220 billions is also the amount of bank notes economy needs during one day. When wage payments are made once a month, World needs money for 30 days period. It makes $6 600 billions. Stock markets need for 30 days is $1 500 billions and 23 % from the value of economical activities.

In this rough example, the fall in stock markets creates 23 percent near future expectation for inflation. If the accompanied with 5% Halloween recession, Halloween Guys & Dolls added $4 000 billions to yearly and $330 billions to monthly surplus. This raises expectations for inflation to 28%.

Tuesday, 11th June 2019

- - Time line of the jerks - -

In Halloween 2014.
- Boys site was hacked down
- Google & Co blacklisted Ekr833.Com.

DPS domain was hacked in June 2015.
Ekr833 was hacked on 16th November 2015.

Attempts on Jack's eyes began in March 2016.
ATS Mines album was finished  in May 2016.

 

Stock markets in short

Stock markets are much like real estate business. They have three participants : Seller, broker and buyer.
After you give sales order to your fund keepers ( public or private ), they contact their brokers. Brokers keep your shares available for buyers.

Buyers can make offers, which are different from the price or price range your fund keepers are asking. 
If and when bid ... offer is less than the price, your fund keeper is asking,  broker contacts your fund keeper before the deal is made.

Stock is a proof from the ownership of the company. 
- Stocks are always printed on better than bank-note paper, their active lifespan can be over hundred years.
- On the stock there is always nominal value of the stock. The nominal is booked to company's equity. 
- If company goes to bankruptcy, the printed equity is the highest value, you can get from the bankrupted company.
- When company lists itself to stock markets, it usually gets additional money, in books this money goes to company's common assets.

 Company can have A and B stocks. In annual meeting A stocks have more voting power than B stocks. Some B stocks are without voting power.
 A stocks are usually the original shares, B stocks are usually unleashed afterwards. In practice maximum amount of B is 49 % from all shares.
 If nominal values of the A and B stocks are the same, and the amount of B-shares is bigger than 50%, the ownership of the company belongs to B-shares.

 If I for example collect rights ( from Boys sponsors ) to control over 50% from Ted's Time-Warner's ... NBCs, Walt Disney's, Vivendi's, Sony's stock equity, CEOs, executive teams, boards and A-share owners and even annual meetings are puppet like dummies to me. If they come into trouble, I can sue them all into court, from a nazi-like attempt to steal the company from me.

 Ownership belongs to the best protected things in common western legislation. Ownership overrides lesser things, you can never claim the ownership to yourself with regulations and rules.

 Stock split is the only thing, a company can do without fully powered shareholder meeting. Split doesn't change the ownership structure.
Increase to stock capital, collection of money from the markets with new stocks, changes the share of one owned old share.
 If one old share was 2% from the total share-capital, the new shares drop this share to below 2%. Can never do such, without owners permission.
 Also impossible for a company to buy another company with new shares, without owners permission. Purchased company needs also permission from it's owners.

Fully powered meeting needs a proof, that certain amount ... great deal from the shareholders were acknowledged from the meeting. It's up shareholders whether they come or not.

Company has to keep register from all share holders. 
Domestic long term owners have usually their name and address in the stock owner register.
Shy and foreign owners are not usually named in register, stocks are in the ownership register with their serial numbers only.
When so, you must claim dividends, with a proven list from the serial numbers of the owned shares. 
Invitation to annual  meeting must also be asked from the company. Additionally you can show the list at the door.

Smaller consolidated company, with few owners, does not have shares.
It has voucher / document, which lists all owners and their investments to the company.

Friday, 7th June 2019

- - Dividends - -

Dividends are kind of owners wage from running and owning the company. More about dividends can be found from "Shorts"

Banks in short

 Banks collect money, savings from people and companies. Then they lend the money to other people and companies. They finance the businesses with a difference in the interests, they pay from savings and collect from loans. Typical bank never lends money from central bank. Bank is not allowed to take debts for lending money to public. Only the assets in your vault will do.

 When you for example take a loan in foreign currency, from your bank, the actual debt is usually taken from some foreign bank ... foreign branch of your bank. Some banks have bigger amounts of foreign currencies ( usually US dollars ) in their possession / vault.

 Bank got to have enough loose cash for covering around 10% from the money it has lent to it's customers. When so, bank can lend around 90% from the deposits. Bank is not allowed to invest the 10% cap into stock and currency games.

 The government quarantines national banks operations, when bank defaults, government usually saves the bank, by giving it loans, with what bank can cover credit losses.
 Bank books the bail-out money as loan, it pays it back later. Bigger recessions always causes unemployment, bankruptcies, credit losses, foreclosures, and others.
 Also then, when the recession does not take place in politics and news ... only in businesses and real life.

 The interest central banks set, is reference interest. It is recommended base interest for calculating interests for savings and loans. Money is never directly involved with this reference.

 Next generation network will bring 30 years old EDI-electronic billing to households. System is independent from banks. Bank comes into business, when you pay the bill from some of your bank accounts.

Friday, 7th June 2019

Can scoundrel EU government get free money from a bank ?
You got to steal / take money from banks customers. Government needs a co-operative in international banks local branch.
Co-operative is needed for booking the stolen money to credit losses, advertising-sponsoring costs, and a-likes.
Government and the co-operatives are caught within a year or two.

Can scoundrel EU government get free money from other EU member countries ?
It is possible in Euro countries. Easy for a national central bank to increase the amount of euros it prints / uses. ( Coins and bank notes with national background ) Use the money to pay wages of civil servants or some public investment.

In one currency and one central bank system such cross-border money and asset transfers are impossible.

Loans and interests

Loan is a future saving. When you take a loan, you commit yourself for saving money in the near future.

Due to the nature of loan, you should never take loans for living. For paying rents and buying food. If you have to lend money for living, you cannot save money in the near future. Without known relief, you got to cut your living costs.

Banks have two payback methods. Flat-fixed and annuity. In flat down payment, you pay fixed amount from debt every month/year. At the same time you pay interest for remaining capital. In annuity loan, the down payment is fixed.  You pay for example $500 every month. This $500 contains both interest and down payment. The down payment is dependent on the interest, you pay from remaining capital. Annuity is easier in the beginning, but overall cost is higher.

Interest is kind of a rent you pay from the capital you got. In the past all loans had fixed interest rate. Interest remained the same, from the beginning to the end. Nowadays interests are checked against current general interest rate on regular basis. 3 months and 1 year are the most common periods.

General interest rates are for savers. When you take a loan, bank's provision is added to general interest rate. Provision is the thing, from which you usually negotiate with bank. In the past central bank set the general interest rates. Nowadays banks uses quite often their own general interests. It is calculated from the deposits bank gets from it's clients.

Thursday, 12th December 2019

 

Sustainable oil and Africa project 

Unlimited sustainable oil and electricity makes it possible for all countries to reach western welfare standards. The wealth of a nation comes from the things and work citizens does to each other. 70% - 90% from the national incomes are born at domestic markets.

In the very beginning you need domestic food, construction and furniture industries. Then you need retail shop chains for these three. They build the basis for the economy. 

From imported goods, local transport, retail and whole sales takes a great deal. Prices at the border are considerably smaller than the price tag in the shop.

Then you need some export products for paying imported goods and raw materials. From the license pack you can find many things, which are used globally. Sustainable oil systems are instructed so, that they benefit host countries and their small / poor neighbors.

Sustainable oil doesn't automatically raise nations welfare to western levels. It gives you a good chance to do so.

Monday, 2nd December 2019

Traditional western welfare standard

In western welfare you have home with living room, kitchen and bedroom ( + media room )
Then you have one room / bedroom for every kid, that goes to school.
Each room for kids have tv, audio system  ( + computer / game console )
Both parents have a car and drivers license. One better and poorer / cheaper car.

After taxes, food , living, health care, clothes, school, things above, ... you have still enough money left for : 
- 2 week whole family holiday in some resort.
- one visit to restaurant / sport event / movies per week.
- doubling / tripling your monthly consumption for xMas / Chinese new year.
- booze and cigarettes.

Your kids became financially independent from you after your youngest grand kids went to school. 
After that you started to save and invest money for legacy, and retirement days.

US people, Canadians, Australians and west Europeans used to live with this standard.
Everything, including the loans you took for buying a home, were tuned for this standard.

If you find my words hard to believe, ask someone, who remembers ... good old prosperous times.

The offer, only few can refuse, makes this standard available for everyone. Not only for those, who lost it.
This jolly good offer is the only one you have, you will ever get.

Tuesday, 11th June 2019

European-Western wage system

Biggest western companies uses one job - one wage system. The length of your employment can affect to your wage and length of your vacation. Your sex and nationality are insignificant. In western world, wage cap in between sexes comes the jobs women and men choose to do. Women do not usually work at assembly lines and production. People, who makes or works with the sold products, have the highest wages and priority. Office workers and others has to settle for less. 

The system makes it also impossible to pay bigger wages to civil servants and politics than to the people in commercial and productive jobs. If you or your politics start to violate the basics, it doesn't take awful long after the company / country is in financial difficulties. When people searches jobs, good or better wage is one of the most wanted things. On the other hand, best and busiest people are needed in development and production of commercially sold products. Then these base companies need sufficient pool for acquiring new workers. And replacing those, who retires. Size of this rooster is dependent company's and it's business sector's growth rate.

Demand for the one job - one wage system came from unions during 1970s. In union leaders opinion old system, where each employer negotiated his-her wages with the closest boss, was unfair. Those, who didn't negotiate got regular hikes with company owners general decision. New system made wage negotiations easier for employer and bosses, demand went through easily, without resistance.

In practice one job - one wage system is fully functional at company level only. Big nationwide and sector level deals are adjusted at company level, with company's capability to pay the negotiated hikes. If you have worked hard, company can pay more than the big deal would give you. These additional hikes are not very rare, either.

At some point the system converts into old-fashioned personal negotiations. Higher bosses and designers are paid by their personal skills and importance. In smaller, somehow creative companies, people are still negotiating their wages. Salesmen often negotiates their wage systems. 

Typical salesman has small monthly salary. Then he-she gets provisions from the deals. System is valid in real estate business, car sales and a-likes. In the past door-to-door sellers had this provision system. Urbanization and private cars have removed the need-and-demand for door-to-door sales. In the past there was also those Tupperware, etc. sales events for women, in private homes.

Tupperware invented and manufactured first small plastic boxes, you use for storing food and other things. In the beginning, women feared, that the plastic boxes would spoil the stored food. One person, who had long term experiences from the usage, was usually needed, before the order was signed : "You should never buy a pig in a sack."

- - Contract  - -

When you or your team work with contract, you are paid by processed unit, one job - one wage system goes to the money, you get from one unit.

The money for the wages come from sold products. As long as the products have enough demand, the speed with what you work ... the amount of money you get ... are insignificant for the fee you get from one processed unit. Unlike workers often think and talk, the faster working speed rather increases than decreases the per unit fee. In principle faster working speed improves efficiency and downgrades the number of people, company needs for doing the same job. Faster speed downgrades also additional costs per unit. These increase the margin, from which the fee for the contract workers is paid.

- - Wages and Welfare - -

Wages and wage negotiations are from money. Money is only a trading tool. In order to improve welfare, you must somehow improve the efficiency of the company. So that the same number of people produces more products than before. Or alternatively you reduce number of people, who are needed for constructing one product. Mass production and automation are the key things in improved welfare.

In principle the total yearly hike comes from the increase in company's revenues. This total hike is divided to workers, subcontractors and others.

Without changes in efficiency-production, you follow general inflation. Inflation based hike keeps the wages at the same level with the general cost of products, which are sold in shops. If the yearly hike doesn't follow general or personal inflation, welfare level falls. The inflation hike raises the prices of the products, company delivers into shops. The inflation oriented hike goes into next years inflation.

The need for inflation based corrections makes the idea of zero or marginal inflation impossible. Zero inflation always downgrades your welfare levels.

The general interest rate for deposits should be higher than inflation. Interest for deposits gives inflation protection to saved money / capital. Most deposits are made by common people.

When you run temporarily out of money, it is not very easy to find a friend or acquaintance, who would lend you money for the next payday. System is the same in banking. Getting creditors-deposits to granted loans is not that easy. Banks do not have special programs / attractions for the people, who takes big loads. VIP customers are people, who have big deposits in the bank.

- - Strikes - -

Long time ago company owners gave the financial departments an instruction about owners and company's share from the revenues. The company and it's owners takes 10% from the revenues. This 10% is divided so, that 5% goes to company, and another 5% to owners. This demand for surplus is added to the prices of the sold products. The company's share is saved into balance sheet. It is reserved for bigger investments, like renewal of the assembly line system. Another common usage is the expansion of the company. Owners share is wage like thing, it comes from running the company and providing capital to it.

All companies, that survives from fast growth period, ends into this system. Until the time, primary product is fully saturated, system is more complicated.

When part from workers goes to a strike, the additional hikes they get, are taken from other workers. Additionally strike can lead into cost cuts and firings amongst those, who went to strike. 

Third way to compensate the hikes is to raise the price of the sold products. These hikes usually fails, the overall revenues remains unchanged. When the hike fails, the required production for the unchanged revenues shrinks. Need for staff, storages, vehicles etc. falls. When so, company has a good chance to cut costs. One way or another.

The third way is the way, strikes affects, when whole company goes into strike. Company and it's owners always takes their provision.

Christmas bonus from good work is calculated from last years revenues. If overall financial growth is 4%, and company grows 6%, the 2% cap goes to bonus system. Another source for bonus money is cost effectiveness. If the surplus exceeds the owners and company's share, the additional surplus goes into bonuses.

Talking about surplus, because nowadays companies usually take their share before taxing. Not after taxing like before 2010. Announced profits without definition are profits, which are given to IRS for calculating taxes.

When politics and midgets rallies about profits, they don't give a shit about owners and dividends. All they care about is the taxes, they get from the big profits. Highly exaggerated, falsified profits, always results into big taxes and zero dividends.

- - Advances and overtime systems - -

Companies, that used to pay wages in cash, it is still often possible to go into office. Ask advance from the next wage. You can also get longer interest free loans for sudden, unexpected costs.

Cash payments ended during 1970s. In the past you went to office every Friday, every 2nd Friday or once a month. At the office there was a closed letter with money and your name on it. Waiting for you.

If your employer operates in 2 or 3 shifts, there is almost always someone at sick list and you have a chance to do overtime. Get money for new car, home, holiday and so on. At assembly lines  ( production ) overtime wages are big. The hourly fee starts usually with 50% hike. After few hours the hike raises to 100%. If company is closed during weekends, full Saturday goes usually with 50% hike. Rare Sunday hike is 200% - 400%. If you want to do overtime, you can ask it from your closest boss. They have shared lists from people, who have volunteered to do available overtime jobs. Overtime works are not very widely wanted.

When you work in evening shift, you get 5-10% more than in day shift. Night shift wage is 10 - 20% bigger than your nominal daytime wage.

When you leave the production, everything gets smaller. Office worker does overtime work usually without hikes, bigger bosses without additional compensation. Smaller bosses, who leads the current shift, have usually the same overtime system, than workers.

Overtime percentages and shift-related smaller additions are old things. Too young to remember, but have a hunch, that they would be older than unions. Just like the advances and loans.

Modern company owners are usually groups of investors. They share the profits, risks and losses. Demands for big or impossible dividends are rare. If such demand comes, it almost always has it's origin in problems with the board, CEO and executive team. Really big, dominating investors, write the demands into company's market capital and stock value. If company fails to meet the demands, sacks are near.

- - Promotions, hiring - -

When there is an open job for boss, the search of new boss has two tiers, internal and external. Some companies always promotes bosses from it's own staff. Hardly anyone leaves the own staff without consideration and inquiries. Drive-in time for staff member is shorter than for external newcomer.

External search is usually made with ads. Internal search goes with experiences from you as a boss. In internal search your educational background is insignificant. Same rule is in effect, when you have a longer working career. Boss needs social and leading skills ( with customers / workers / both ), your performances in interviews are important. If you are not that good with your mouth, R&D departments hires people with higher education. R&D departments are quiet places, from bottom to top.

There aren't any general rules for getting the job. Selection can come from almost anything. Usually you should give weight to your best qualities and be rather honest with the things you say. After you get the job, there is 3 month trial time. Although very rare, during the trial time you can still lose the job. Without any specific reason and firing time.

When jobs are fulfilled, young people have lots of motivation and they are open to new things. Older people have experience, but motivation is lower. When you hire a person with over 10 years experience, he-she usually works just like always before, all attempts to get something new into old system fails. All workers, who come from the outside, need some time for learning and getting used to new job, company and company's policies.

- - Firings, Furloughs, Lock-outs - -

Firing needs an acceptable reason. Company's poor economies, automation, absences from work, misbehavior, stealing, and so on. Slow work rate and poorer working skills are not acceptable reasons for firing. These things can be used in evaluation for hiring. Heavy drunkenness at work is not acceptable reason for firing, either. First you are asked to go back home or restaurant for wage less day-off. At some point, after continuous short term busts, you must be taken to rehab. After rehab you can come back. Pregnancy is not acceptable reason for firing.

If you get somehow crippled, company tries to find a job, you can do. This search includes equipment you need for doing the old or new job. If search fails and company cannot offer you a job, you are fired.

When company fires you, your work continues 1 to 6 months after the announcement. Length of firing time depends on the length of your employment time. 

Usually companies pays the wage from the firing time, without a demand to work. Demand for work depends on company policies and general terms for the business sector. When you have to work the firing time, the firing doesn't cost a dime to your employer. In big lay-offs people often has to work the firing time or part from it. Company, which is financial troubles, cannot afford to pay the firing time wages without work and production.

When firing is based on company's financial difficulties or automation, after firing company has 2 - 4 year time period, when it cannot hire new people, without asking matching fired people's interest to come back first.

When you cut your employment, the maximum firing time is one month. Usually you resign, because you found a new job. One month is maximum time, employer can delay the change. When you say yourself off, you usually announce the separation date and your employer says "Okay".. When you resign, wage payments and work always ends at the same time. 

The last payment you get, always contains wages from earned holiday days, you haven't used yet.

Some salesmen and R&D people have special terms in their contracts, you cannot go and work for competitor just like that. After firing or say-off you usually have to wait at least two years, before you can take a job from same business sector. In sales, you are not allowed to take your customers to competitors. In R&D, key designers are not allowed to take knowledge from the latest developments with them.

- - - -

Furlough is intended to be a temporal firing. In furlough, your job and wage payments end without firing time. But your employment continues during furlough. Two years is usually the maximum length of furlough. After two years, you have to fire people, who are on furlough. This limit comes from missing firing time wages and work.

Some unions have negotiated terms, which forces employer to pay full firing time wage, when person on furlough resigns ... finds a new job.

Company cannot hire new people, when it has workers for same or matching job on furlough. People on furlough must be called back, before company is free to hire whom-ever-it-wishes.

- - - -

Lock-out is a way, employer can reduce the cost of strike. When part from staff goes to strike, employer can set lock-out to those, who are left without work, because of the strike. People in lock-out are not paid and they don't come to work. Lock out ends, when related strike ends.

During strike company is free to hire short term strike breakers. After strike is over, old workers naturally get their jobs back. Company can also assign other workers to do the jobs, which is usually done be the people in strike. In commercial businesses attempts to break the strike are very rare. Modern strikes are organized so, that essential functions remains fully functional. 

Strikes and demonstrations belong to workers rights. They must be respected : Company-employer is not allowed to fire or get pissed with people, who goes to strike or demonstrations. Happens sometimes with lower bosses.

- - Holidays - -

Typically you get 2-3 days summer holiday from one month work. One holiday month has minimum hours or days you have to work for earning the holiday.

Length of employment can increase the number of earned days per month. Long employment can also result into flat one or two week addition to your summer holidays.

In most businesses everyone gets Christmas Holidays, which begins from Christmas and ends to western New Year.

Besides these two standards, there are freely chosen one week holiday days. Then there are one week winter, spring and autumn holidays. All with full wage. These additional holidays are dependent on business sector. Usually it is possible to get these additional holidays as money. Depends on your chances to work during the holiday. 

For a baby woman gets usually 3 + 12 month holiday with full wage. You can usually extend care taking leave to 3 years, without braking the employment. Your employer doesn't take part to compensations for the leave after 1st year. 3+12 month full compensation comes usually from general fund, that collect fees from all employers. After 1st year you are treated like unemployed mother.

Besides motherhood, you can usually take one year general, wage less leave from your job. The leave doesn't break your employment and affect to length related benefits.

Companies, which uses part time workers for fulltime jobs, almost always set monthly hours so, that part time worker's monthly hours are few hours short from holiday month.

- - Sickness and accidents  - -

During the working hours you are always insured against accidents and accidental death. Insurances for workers are mandatory. Fees your employer pays, are dependent on the job you do.

Usually you get full wage from the time you need for a shorter visit to doctor, eye-doctor, dentist and health center. At assembly line you got to inform times and dates for the appointments in forehand. 

When you get sick, 1st day at sick bay is usually without wage. After that you get full or reduced sick time wage. For wage payment you need dog's certificate from your sickness. Rules for sick time wages varies by business sector. Without wage, sick time is common wage-less absence from work.

Self made sick time note for yourself, your kid, etc. legalizes the absence so, that you cannot be fired because of it. Longer or continuous absence, without legal reason, always eventually leads into firing. Properly pre-announced absences doesn't usually raise your firing into question. Absence, without time for getting a replacement for you, needs a good reason. One missing worker can stop the production and cause enormous losses to employer.

In Europe health insurance fee, which is collected from your wage, goes usually to public healthcare system. When so, fee does not have much to do with your personal health and sickness. Money is used to kids and old, retired people's free or supported healthcare. Nightingales, Dogs and Drug companies have invented thousands of ways to waste and increase the wealth insurance fees.

Company can leave it's healthcare system to common healthcare, which is paid from health insurances. Smaller companies often do that. Company can also have deals with private healthcare companies. These private healthcare companies have dogs, dentists, eye-dogs and hospitals. These private services easy and free for the employers. If the services are partially compensated from health insurance, the healthcare company sends compensation demand to healthcare fund, and bills the rest from the employer.

- - Unions - -

There are unions to all workers and jobs. With an exception of highest bosses, who reports directly or indirectly to owners and boards.

Unions have activists / contact persons at their primary business sector companies. Soon after your employment, your closest shop steward comes, introduces him-herself and the union to you. Although you weren't a member or joined the union, you can get advise and help from them. In bigger companies, workers or rather shop stewards and unions have one or more seats and votes in company's board.

Typical union collects money for unemployment fund. The fee is around 1% from your wage, it is insurance against unemployment. When the member of union is fired he-she gets higher unemployment compensations from the union's fund : During first two years of your unemployment you get 80% from your wage. After that you fall to the common welfare compensations. And so on.

Each business and working sector has ruling union for the workers. Assembly line workers for different business sectors have their own unions. Mechanics, office workers and other smaller worker groups have unions, which negotiates terms and wages for all mechanics, office workers, etc.

Assembly line workers are usually well organized. When possible, smaller groups usually tries to get into assembly line workers better terms and hikes at company level. Organization level is not as high as with productive, assembly line workers. 

Bosses union is usually high-school engineers union. High school engineer is the most common education for a boss. Besides engineers general union, teachers, doctors and other bigger professional groups have union.

- - Court for workers - -

There is a special court, which handles worker-employer conflicts. It handles law oriented, union level deal and worker level deal oriented conflicts. Great deal from earlier acceptable reasons for firing comes from workers court. When new questionable reason for firing pops up, unions takes it workers court. Legality of almost all imaginable reasons for firing have been checked in workers court. When you call union lawyer, he-she can tell whether of not your firing was legal.

- - Base businesses - -

Base production and commercial base services spreads the money and wealth to others. Besides base businesses,  in modern world, all countries need one or more base export products.

Base business uses raw materials for creating products for consumers. Food factories and food processing facilities are the most important base businesses. They get the raw materials from farmers. Machinery and vehicles for farming, packing and food delivery chain are also needed. Then comes other daily products.

Cloths, clothing, furniture, home appliances and houses are important. Private cars are nowadays near these four.

From the bottom you find oil drilling, forest industry and mining industry. And also power plants and grids. Cloth and shoe makers get their raw materials from farmers and oil companies.

Farming is a special capital oriented base business. You don't need many workers, but you need land for farming. With one hectare, you can farm food to 10 to 20 people, one acre is enough for 5 to 10 people. During one year calorie demand one person is around 400 kg corn ( corn-wheat-rice-rye-oat-etc ) or 800 kg meat ( + lots of food to cattle ) or 1 600 kg other vegetables and fruits.

Base service is a thing you do to people. This must-do-thing is so difficult to do, that it needs special skills. Haircut is good example from rare base services.

As group entertainment, spare time and holiday are the least significant businesses in the world. When economies goes down, these three are the first and worst beaten businesses. In 1990s ad sales had a small peak in the beginning of the recession. Nowadays ad-sales falls to marginal levels ( with other charitable costs ), right after the financial indicators go to red.

When you go to tax money, school-education-base science is the most important thing. Education is always either fully or partially paid from taxes. Military is second important, it is fully paid from taxes. Roads and routes have high priority in importance. Kindergartens and support for the poor, unemployed, crippled, retired and old people belong to tax systems with bigger importance.

West European countries uses progressive taxation. Tax percent raises with your incomes. Typical tax percent for full time worker varies from 30% to 50%. Small incomes from periodic or part time work are tax-free. 50% is usually the maximum taxation percent from incomes.

- - Power in company - -

Board has the highest power in company. Board meetings are usually held once a month. After board comes CEO + Financial Manager and the rest from Executive team. Executive team is the first, that comes to work everyday. Typical executive team gathers once a week.

In meetings, decision goes to open voting, if there are two or more supported proposals. In voting chairman of the board and CEO has 1.1 votes. When voting goes even, result goes with chairman's or CEOs vote.

Owner or owners are the only ones, who can override board's decisions. Typically owners gathers once year, into annual meeting. Annual meeting is typically the only fully powered shareholder meeting. In annual meeting owners accepts and decides dividends. Increase in stock capital needs an approval from annual meeting. Some job assignments, bigger projects and bigger purchases need approval from annual or general shareholder meeting.

Active owner is a trustee, who presents major owners of the company. Typically active owner's background group owns over 50% from the company. If the board and executives bullies too much, expensive company's stock falls too much, key owners can authorize an active owner to company, who takes the lead. Two temporal trustees or active owners can sometimes seen in annual meeting. After verifying their ownership, they give the board and executive team literal orders from the key owners. These orders can be anything.

No one can override owners decisions. This includes insiders, outsiders, politics, midgets and IRS. Owners decisions and requests must be executed. Others can only sue owners to court. Company is owners property, just like owned car or home. Western capitalist legislation gives strong support to ownerships. This support includes owned companies.

- - Usage ratio - -

Productive factories have often related usage ratio. Typically the usage ratio varies from 60% to 80%. 

Usage ratio doesn't refer to the degree of enslavement. Full 100% ratio is calculated from machines and assembly lines production capacity. Typical working day is full of shorter and occasional longer breaks. And also times, when machines are outputting products with limited speed. Shorter breaks and smaller slow downs are invisible to workers. They show only in daily output.

Usage ratio is the difference between actual and theoretical maximum output. Usage ratio is a thing, companies, that design and build machines to factories talks. Capacity, usage ratio and running & maintenance costs are the key things in machines for factories.

- - Personnel policies - -

Company has only one personnel policy. When company expands to abroad, the new branches have same personnel policy than others. In production transfer to low cost country, company typically keeps the policies and benefits. The wages are adjusted to local levels and relative differences in between jobs are held unchanged.

Base for personnel policies comes from the old or new owners.

Hollywood established starship policies over 100 years ago, right after people started to watch movies. Fair personnel policies in old companies and business sectors have also long traditions. Boys sponsors have been warmly welcomed, widely wanted, new owners. They bring money and their own personnel policies to the key developments.

- - Scope, UK and comparisons - -

These things are valid in European base businesses and base services. Boys sponsors' big European companies these rules are followed most closely. Generally speaking, the farther you go from base businesses, the poorer your wages and benefits are.

United Kingdom is an exception to general rule. In publicity, UK is the closest European ally to USA. UK is not an underground-ally to USA. Conservatives held power in UK for a long time. In other European countries labor or social democrats held the power. In West Germany the ruling Christian party was Soviet oriented, just like labor parties.

During the 20 year long, BBC-IRA powered, conservative rule, UK workers typically lost their jobs and benefits. At the same time other West European workers got new benefits. When UK workers demonstrated and held strikes for keeping their jobs, other Europeans did the same for getting more money and benefits to themselves.

Japan and modern USA are rather far behind Europe in these things. USA naturally used to be the leading country in workers rights, benefits and wealth. Long ago, in early 1980s, Japan was said to be the leading country in automation.

Communists countries haven't been capable of combining wealth-welfare with work-motivation. You don't have to work much, but your low, stinking living standards follows the poorer quality and lazy rhythm of work.

Rewarding wage and benefit system, gives good feedback from harder work and sweating. Rightful rewards gives you good thumbs up feelings and motivation to work. Makes the work more enjoyable.

Saturday, 11th January 2020

 

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