[ExI] Efficiency of algorithmic trading

spike spike66 at att.net
Tue May 3 01:11:11 UTC 2011


 

 

>. On Behalf Of Mr Jones
.

>>.Rich people are our friends.  They help us all, even if indirectly.spike

 

>.Fair enough.  When it's being used, it can at least be viewed in positive
light as you've just shown me.  What good is $100Million in an off-shore tax
safe haven doing humanity?   MrJones

 

 

Is doing?  The question is what good did that fortune do for humanity while
it was being amassed to start with.  There are as many different answers to
that question as there are great fortunes.  The good for humanity was done
to generate the fortune.  What it does after depends on governments
incentivizing its use for the good of all.

 

But I can deal with the other question as well.  $.1G in an offshore account
benefits humanity, since the banker holding that fortune invests it in order
to make money on it.  The businesses thus created benefit their owners and
their employees, as well as their customers, and the bank stock holders.
Governments in the nations where the money is invested collect taxes, so
they benefit, as well as the citizens of those countries.

 

The biggest benefit to us is to remind governments that if their tax burden
gets too high, the people with wealth and talent in those nations will take
their money and go elsewhere.  So it encourages governments to treat their
wealthy and talented with respect.  That reminder keeps all our taxes lower.

 

The US was set up so that we would be a collection of state governments that
compete with each other to keep taxes under control.  California is a great
example of what happens when tax burdens get too high.  Raising taxes, as
California did in both 2009 and 2010 actually causes revenues to go down,
because the rich Californians take their money and skill elsewhere.  

 

Offshore accounts remind the federal government that it is in competition
with other governments.  It needs to treat its rich people with respect and
create a mutually beneficial relationship with them.  Rich people are to be
incentivized to invest domestically, creating wealth and jobs, resulting in
domestic trade, infrastructure building, all kinds of good things.  The flip
side is if there is a business-unfriendly government, the rich sit on their
money and wait it out, as we are seeing now.

 

spike

 

 

 

 

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