Archive for the ‘Europe’ Category

De Par Dieu: World Plutocrats Unite

January 6, 2013

The richest Greeks are buying the most expensive apartments in Berlin and London. “Shameful” says the president of the European parliament. The president of EU parliament, Martin Schultz, a German SPD member, calls attention to the breakdown of Greek society, with the poorest dying of lack of food and health care, while the richest and mightiest Greeks do not pay taxes (but the Germans and the French certainly do to back-up the European Central Bank Quantitative Easing, and various direct loans to Greece).

One week in December 2012, French actor Depardieu established residency in Belgium. Belgium is a country very friendly to plutocrats. The world’s fourth richest man, Arnault, another Frenchman, owner of all sorts of luxury brands, established residency there last year. The day Arnault announced it, there was a demonstration below the windows of his private residence. By thousands of enraged Belgians.

Reason? Plutocrats are spared taxes on capital gains and inheritance in Belgium. This is only normal: after all this plutocratic status is enjoyed by members of the Royal Belgian family, who are corrupt, and inherited this disposition, free of taxation.

Yet, someone has to pay for the state. Salaried Belgians pay some of the highest taxes on income in the world. This is directly related to others paying nothing: the hyper rich don’t pay taxes, because salaried persons pay them on their behalf. Such a system can perdure. After all, the plutocrats did not pay taxes in Europe for more than a millennium. They called themselves “the best who rule” (aristocrats).

This lack of taxation in the upper reaches brought ever more powers to the powerful. In the end, even when the king and government of France used everything in their arsenal to make the wealthiest pay taxes, they failed.

That unbalance at the top is why all of Europe underwent a succession of serious revolutions, among which those of the Netherlands (16 C, and a 75 year war against Spain) England (three revolutions and civil wars in the 17 C), the North American colony (1776-1791 + Secession War 1860-65), France (1789-1792 + 1830 + 1848 + 1871), Russia (1917), Germany (1918).

Perhaps suddenly aware of this problematic Belgian situation, Depardieu met in a private dinner the Czar of All Russias, Vladimir Putin in his gigantic palace (with TV, microphones and interpreters present, recording the very familiar tone). That was in Sotchi, a ski resort on the south side of the Caucasus. Sotchi and Putin have been officially celebrated by international sport authorities. A bit as Hitler organized the 1936 Olympic Games, in Berlin, to celebrate Nazism, Putin is organizing the next winter Olympic games, to celebrate Putinism, a crow’s flight from where he is waged heavy war in Georgia, and exerts mighty military occupations of many a country of the Caucasus.

Pontificates Depardieu: “Ceux qui disent du mal du president Putin ne sont jamais sortis de chez eux, ils sont restes en arriere depuis lontemps” (“Those who say bad things about president Putin never got out, they stayed stuck in the past for a long time”). Sorry that we confuse Stalin and Putin. Both are ending the same.

Putin gave Depardieu Russian nationality, and a Russian passport. Such is the power of the Czar. “Czar” is a deformation of “Caesar”. But Caesar could not make an alien into a Roman citizen overnight. Putin has more powers.

Depardieu has been protesting high taxes in France. His father was a French Communist Party member. Depardieu himself was a truant, delinquent and drunkard, who left school at 15. He was saved by the French movie industry, which is heavily subsidized by the French state, hence French taxes. Depardieu is a first class ingrate.

Now Depardieu, who made perhaps half a billion dollars in France alone is peeing on France. Literally so. Not only does he drive the wrong way on one way streets while cameras are rolling, but he actually peed in a plane, and not in the toilet.

Hey, who needs France when you can sing with the daughter of the dictator of Uzbekistan, do business with the Castro brothers, cheer for the dictator of Chechnya, enjoy payments throughout the dictatorships of Eastern Europe?

5403 French cheaters, a few thousands Germans, 1831 Italians, according to Eurostat, have become Russian citizens in 2010. Most of them are wealthy tax evaders. Rushing to take advantage of the Russian 13% flat tax rate on income and capital gains, a dream come true for plutocrats. Ironically the 13% rate was instituted to induce wealthy Russians to pay taxes. It is understood that it will be phased out in the future. Putin recently said that, as in France, taxes on luxury items ought to be introduced soon.

Depardieu was offered by Czar Putin a vast terrain to build a mansion, a car, and a job of minister of culture. As a quasi billionaire, Depardieu is happy to accept these free gifts from the Russian people. His residence will be next to where the Pussy Riot protesters are imprisoned. He immediately left Russia for Switzerland to encounter the head of the international soccer association to promote Russia for some world cup.

And yet, the glorious Depardieu vacation in Sotchi and Switzerland could not be all what it could. Not only is Depardieu obviously too obese to ski, but he has a justice convocation on Tuesday, 2 days after getting Stalinist citizenship.

French justice ordered Depardieu to appear in Paris regarding a charge of driving under the influence of alcohol. He actually got into an accident, with nearly four times above the legal alcohol limit. Here is the Dark Side reappearing again.

Depardieu used to be the darling of the French left (when that was profitable to both parties). Now he has become satanic for all to see. How come? This is a particular example of the genesis of the plutocratic effect, in the case of one individual’s psychology. The same happens to entire classes of individuals.

Basically, the persons affected get seduced by the Dark Side, and then so thoroughly enjoy it, that they want more, ever more. Being a leader, and enjoying the leadership status is one of the main component of the Dark Side. Nietzsche used to call that the Will to Power, and deify it (an idea Hitler followed single-mindedly).

The Will to Power is old, very old. It is even older than when it made baboon style, war-like primate societies possible, by perfecting fascism into a world conquering superior psychobiology. So it is completely ingrained in human psychology.

But there are many ways to lead. The ultimate leadership being, of course intellectual, as this is what the species is. Yet all forms of leadership call onto the Dark Side. Hence the fierce battles in academia. Hence the nomination of Stalin and Hitler to the Nobel Peace Prize. All humans confusedly sense that, without the Dark Side, nothing of consequence ever gets done (as Mahatma Gandhi, or Barack Obama, found out). The unfolding of the exact reasons of why this happens is quite elaborate.

One of these reasons: the Dark Side makes tribalism possible. Tribalism is central to humanity: it evolved from it. Tribalism makes human institutions possible. Including science, medical associations, or dignified philosophical societies.

Some will scoff: and how do I dare seize the noblest human institutions, and tie them to the Dark Side? But look at the Catholic church, or whichever Muslim hierarchy: in the fullness of history, although peace is their mouthpiece, they caused, directly, the death of dozens of millions of dead, and more than a millennium of terror.

And the case of Gandhi is famous: he brandished non violence against the British, while infuriating the Muslims, thus causing the partition of the subcontinent, leading to maybe ten million dead, while waiting for the great Indian subcontinent thermonuclear war.

By the way, Martin Schultz, a perfect anglophone and francophone, may well be elected head of the European Commission by the European Parliament after the next European elections. And why not? Listening to him, in French, one has more the impression of listening to a Frenchman more than when listening to Sarkozy the American, or Depardieu the Stalinist.

What is sure is that the European parliament will elect the next head of the European Commission, as per the Lisbon Treaty.

So why the English Europhobia? Very simple: up to 15% of English (in contrast to British) GDP is from financial services. And more than that is directly tied to plutocracy, if one includes English tabloids (controlled by the likes of Murdoch, a newspaper heir initially from Perth, Australia, in the lineage Maxwell, a scientific publishing tycoon, riding the public purse). One now knows that PM Blair got brainwashed into the Iraq War. And why not? left to himself, Blair was nothing. Murdoch was an empire, a sort of monarch who already told PM Thatcher what was up and what was down.

Instead, Blair was a good boy, as PM John Major had been before him. Major became a major at major USA based hedge funds. Blair “retired” and made 50 million dollars in just one year.

So now, exposed to continual disinformation, the majority of British stupidly attribute their problems to the European Union. Verily, their problems are not caused by the EU. Great Britain barely belongs to it; it has opted out of mostly all European institutions. it is not the EU that explains why Italian industrial production is vastly superior to the British one. It is rather finance supreme.

Britain blocks European construction at every turn. 25 countries have engaged the European Monetary system, three more are associated to it, 17 countries belong outright to the Eurozone. However, British vetoes block European construction, including that of a banking union. While everybody can see that a private banking speculation crisis caused the European financial crisis (the states got dragged into it while trying to save the private banks with public money).

Britain is like Depardieu: rendered grossly insane by the plutocratic phenomenon. meanwhile in the USA, health insurers are starting to crank up their rates by up to 22% in 2013. Poor Obama found a fancy name for his health care: the AFFORDABLE Care Act. However, in his naivety, he forgot about cost control of those he entrusted with the care of Americans as the farmer entrust the hens to the wolves (a well known method in Hawai’i). When I write “naivety”, I am charitable. A more ominous explanation is that Obama played golf with the wrong people.

Something that happens to people who live in big mansions paid by taxpayers, surrounded by armies of bodyguards, and they believe their minds extent to the end of the universe.

Satan is very crafty, and very cruel. Therein his strength and virtue. It’s the only god some deserve.

On January first 2013, the French government decided unilaterally to tax those of the 5,400 French citizens who pay very low taxes in Switzerland while earning their living in France. Excellent. The Swiss authorities are livid: after all the Canton de Vaud (capital: Lausanne) alone makes 300 million dollars from such tax evaders. No more free ride, no more living like a vampire, sucking French blood, Suisse!

Not that this new found will to resist tax evasion by the wealthy exclusively French. The USA has put increasing pressure on Switzerland, encouraging Italy, Germany and France to do the same. (This is one of the rare sectors where Obama has acted as a real democrat instead of a playing as dead as a plutocratic carpet.)

PM Cameron, the lazy and cowardly Europhobe, did something like this in Jersey, an island tax haven, a few Weeks earlier. He insisted that some Brits in London who insisted to pay (no) tax in Jersey, ought to be taxed in the UK (that can be up to 50%).

Some Jerseyists (?) spoke of independence (from Britain). A problem easy to solve by sending a few Royal marines, or French gendarmes. Who do these parasites think they are?

Why can Belgium or Switzerland, and many other banana haven countries afford low taxes? Why does France (or Britain or the USA) have high taxes? Well, very simple; in 1939, there were only four large modern armies in the world: Hitler’s, Japan’s, Stalin’s, and France’s. Only one democracy, and three dictatorships were well armed. We know what happened next: more than 70 million dead, nearly 5% of mankind.

The situation has not really changed. If we reverted to the military situation of 1939, with only the French republic with a serious army, the result would be quickly the same.

This is in no way surprising. The Roman legions were withdrawn from Britannia, Germania, and Gallia, for budgetary reasons in 400 CE. It is not that the economy was collapsing. The plutocrats were refusing to pay enough taxes to keep the dozen legions concerned.

The Roman state left the Franks in charge of defending much of Western Europe. Although the Franks were initially successful in Germania, they then ran out of luck, and massive invasions followed within six years. Then, and only then got the land ravaged in Britannia, Germania, Gallia, Iberia, and 4 years later, in Italia itself, and soon enough, Africa when the vandals made it there.

Thus one has to conclude that taxes are not just about fairness, and preventing the plutocratic effect. They are also about preserving the appearance of a republic.

France, the USA, Britain, Germany, and Italy have used increasing force to combat tax evasion and thus plutocracy, in recent years. They should not hesitate to use maximum force. After all the military force of France is about a billion times greater than that of Switzerland.

It is not just a question of defending democracy, or civilization. It is a question of not being dominated by the Dark Side. Without the rule of love supreme, humanity cannot go on. It’s love who has to tell the Dark Side what to do, and not the converse. Therein true goodness and wisdom.
***
Patrice Ayme

Heat Is On, USA Cooking US All

December 6, 2012

EUROPE TRIED HARD TO SAVE THE PLANET: Europe limited its CO2 emissions better than the rest of the world. Under the Kyoto Protocol, 37 industrialized nations and the European Union pledged to reduce their greenhouse-gas emissions by 5% measured against 1990 levels by the end of 2012.

This provided the rest of the world, not held back by such efforts, a competitive advantage. Who pays? Europe.

The Kyoto Treaty was not ratified by the USA, but exploited by its plutocracy: as China was (stupidly) exempted, under Kyoto, from emission mitigation, industries owned by American plutocrats were relocated there, to escape modern anti-pollution norms. Result?

Tyranny & Carbon Burning Cooking Biosphere

Tyranny & Carbon Burning Cooking Biosphere

The Russian gas giant Gazprom announced that a giant (and very dangerous!) Liquid Natural Gas tanker, the Ob River, left Norway on November 7, accompanied by two nuclear icebreakers for nine days, breaking through thin winter ice. It saved twenty days on the trip. Notice that such LNG tankers carry the explosive power of a nuclear bomb, and going through the desolated Arctic may be safer. (Ob River can carry 150,000 cubic meters of gas and weights around 150,000 tons). Thus the North-East Arctic Passage was open for big time business, and, in …winter. The heat is on, indeed.

USA ADVANTAGE IS CAUSE NUMBER ONE OF PLANETARY WARMING:

As usual with important progressive treaties, ever since the SDN, the Society Of Nations, in 1919, the USA baits and maneuvers the other countries into economically, or politically disadvantageous positions, and then switches out at the last moment. The Versailles Treaty was an early example of this time honored technique (the SDN was supposed to impose the precautions that Versailles failed to give, but then the USA made the SDN fail, opening the way to Nazism). This classical bait & switch trick explains why the USA does not recognize Palestinians, the International Criminal Court, or the Rights of Children

Non ratification of Kyoto advantaged the USA. It is particularly obvious with the development of shale oil and gas there. Never mind the tremendous ecological consequences. Canada had ratified Kyoto, but violated it completely, by developing tar sands. Canada formally left Kyoto last year, before being struck by sanctions. 

As the Wall Street Journal observed on December 3, 2012, ecological considerations hold back the rest of the world in the fracking race. But not so in the USA, and this gives said USA a tremendous advantage. What the Wall Street Journal did not say is that the willingness of the USA to destroy the planet as it searches for comparative advantage, is a distant consequence of the thoughts and moods inherited from that tremendous accomplishment, the holocaust of the Native Americans. Exploitation, no holds barred: the gift that keeps on giving.

The American indigenes were eradicated through the imposition of a relentless exploitation mentality hidden under an indispensable thick hypocritical mood, the latter enabling the former. Not only are the exploitation mental machinery and its mood still major cultural components of the USA, but the continent is pretty much empty: the USA has more arable land than China, or India, with a fourth of the population. Moreover, some of the states with lots of fracking have little arable land too (Wyoming, North Dakota). Basically, they are throw-away states. After the last polluted farm or ranch has been surrendered to the fracking fumes, the land will be returned to wild critters and evil spirits, while the USA prepares for the world war, that the worldwide ecological devastation will bring.

***

 

POLLUTION DENYING PROPAGANDA:

A tremendously crazy campaign was organized by the CO2 polluters, for years, in Anglo-Saxon countries. The well paid propagandists denied everything, using the Crazy Lie Technique: they claimed insanely, and the more insane, the better, that CO2 meant nothing, that the heat was NOT rising, that climate scientists invented the data, in a vast conspiracy called “Climategate“, that CO2 was not a pollutant, but, instead, the more, the better, etc…

Those crazy lies worked with its target audience, the ignorant, uncritical People of the USA. At least well enough to give a cover for the Congress of the USA, to affect to believe that those insanities ought to be given a serious hearing. This delaying technique allowed the polluters to gain more than two decades. Europeans fought back, by giving hypocritical Vice President Gore, the Nobel Peace Prize. If you can’t beat them, spoil them.

But now polls show that, even in the USA, the citizenry has come to believe that the heat is on, fro the whole planet, and that human pollution by heat trapping gases such as CO2 was the cause (by 65%). So the polluters had to change tac. They are inventing a new approach, and it seems to be working, even with many ecologists (as I discovered to my dismay in the last few weeks). Apparently there is a tremendous number of naïve ecologists out there, the same ecologists whose idiotic posturing allowed the Kyoto Protocol to fail, while the USA leveraged it for comparative advantage.

The new trick by the gas polluters consists in saying that nothing can be done, against the rising CO2, we may as well accept it. The only hope is that the world population would crash massively and to have the culled rabble leading those much simpler lives poverty provides with: see the Simplicity Institute, “A Prosperous Way Down”, and a number of articles exposed in the siteLearning From Dogs”, such as “Unintended Consequences”.

The truth is much more prosaic: 

THE CARBON TAX IS HATED BY POLLUTERS:

A worldwide Carbon Tax would reconstitute the free market as fair and balanced, giving a chance to alternative energy sources, without subsidies, or government programs. The Carbon Tax would just charge for the cost of the damage the heat trapping gas emissions cause, including the cost of repairing the entire biosphere back to health.

The Carbon Tax could be imposed asymmetrically. Say a car comes from China. One would evaluate how much coal was used in the industries providing the car maker and its parts makers, and their energy providers. Then one would add the bunker fuel used in the sea transport in the evaluation of how much fossil fuel has been used to bring the car to market overseas. One would apply that made to ALL goods. China does not have to cooperate.

The World Trade Organization has already determined such a tax is no custom duties, and does not violate its charter.

The Carbon Tax would be a nail in the coffin of fossil fuels. So, of course, carbonizators hate it.

Europe has been slowly taking measures against CO2 pollution, including increasing carbon taxes, here and there. One such law requires airline to pay a carbon tax (as all methods burning carbon should). So the Republican Congress of the USA wrote a counter law to force airlines from the USA to NOT obey the European law. Their counter law, their illegal, the planet destroying law of the right-wing extremists in the pockets of oil men, is now on Obama’s desk. Obama could, and should veto this planet destroying law. Will he? Will he find the moral fiber? Will the president of the USA find the ferocity that is needed, in the face of infamy?

Well, he will not, if all ecologists do is to say there are no solutions but those we would get after a world war that would kill 50 times more people than World War Two did (that is basically what the links above propose to do; in other words a non solution solution!) How did we get there?

Notice by the way that one of Obama’s predecessors, Franklin D. Roosevelt, in a somewhat similar situation, proved to be a coward. Instead of declaring war to Hitler, in summer 1939, he signed sanctions against the French Republic and the United Kingdom, for having declared war to the atrocious, mass murdering, racist Nazis. So self-interested cowardice is a well anchored tradition of the USA.

However, this time, as superstorm Sandy demonstrated, the consequence of collaborating with mass homicidal folly will be heavy for the USA. For one, Florida will, for sure, disappear below the waves.

The porous limestone bedrock of Florida will prevent the fabrication of polders there: Florida is not the Netherlands! Sea water will seep inside the rock, below any dam in Florida.  

***

 

REPRESENTATIVE DEMOCRACY IS NOT DEMOCRACY:

In Representative Democracy, somebody who knows nothing is put in charge of everything. In truth, Representative Democracy is more akin to what the Ancient Greeks called tyranny, the rule of one.

In the USA that knows-nothing is elected with lots of money. In France, with lots of bureaucracy.

So in the USA money rules, whereas in France bureaucrats do. Most other “democracies” are in between.

Notice that in Germany, which is doing better economically, having reformed its work market quite a bit, politicians have to be a bit more responsive to the masses, due to the use of a proportional voting system (somewhat diametrically opposed to the first-by-the-post British system). Proportional voting is more collegial: Merkel had to govern in the beginning with the Socialists, and is now running in the next elections against her former (Socialist) finance minister. 

Some will smirk, but that Socialist gentleman is very strict and put a lot of heat on tax havens such as Switzerland forcing it to reveal thousands of tax thieves and irreversibly change its laws about banking secrecy. In other words, the proportional voting system can empower the People against the plutocracy. It’s better than the systems found in the more fascist, more militarized France, Britain and USA.

In Switzerland, a (“Con”)Federal Council of seven provides with a collegial direction to the entire country. That works obviously better than having an elected tyran. The problems found in large representative “democracies” are found there too, but on a much smaller scale.

*** 

TWO MILLION JAPANESE VISITED PHARAOH TUTANKHAMEN

in expositions in Tokyo and Osaka. Why? Ancient Egypt played a crucial role in the invention of mathematics and the alphabet. Among others discoveries. Thus Egypt is part of the foundation of civilization. So is Mesopotamia.

Egypt and Mesopotamia, plus Iran and India conducted a sort of conference on progress, for millennia. 

After crops were bioengineered in the area (“Fertile Crescent“), men and their cultivars colonized Western Europe. The original Italians did not just look like Iraqis, they were the real thing. 

So is colonization a bad thing? No. it is actually hard to find a population anywhere in the world that did not descend from colonists. 

And do Japanese descend from Egyptians, Mesopotamians and Greeks, just justifying their interest for Pharaohs with a personal touch? 

Of course they do. because our civilization, which is also theirs, does. After all, the first axiomatic proof of the Pythagorean theorem is in Euclid (300 BCE), although it started to be discovered nearly 2,000 years prior, in Egypt and Babylon.

*** 

NO CIVILIZATION, BUT CIVILIZATION, AND PROGRESS IS ITS PROPHET:

Some have talked about the clash of civilizations. But, in the grander scheme of things, there is now only one civilization. We count in 60 minutes in one hour, because arithmetic in base 60 was useful for the tremendous astronomical computations in Mesopotamia to determine the seasons, when to plant, and the floods of the great rivers (the higher the base, the more compact the computations). That was more than a millennium before Romans did anything more advanced than herding cows.

There is an astounding prolongation of systems of thought, and systems of moods, throughout the ages. For 10,000 years, civilization has proven to be a continual construction, in the Middle Earth, an initial condition onto itself (in the differential equation sense).

On a more minor theme, as climatic and hydraulic conditions became tougher in the Middle East, the place became ever more sympathetic to increasingly fascist regimes and the religion that fit them (the Abrahamic religion being exhibit number one).

However, superior technology, such as desalination installations (some soon available with solar cells, on a small scale) change the fascist equation. If there is no more need for vast centralized military organizations to provide with survival, the Middle East may hope for more democratic days.

***

COCONUT REPUBLICS UNITE FOR TREATING PALESTINIANS AS NON HUMAN!

The USA voted with other coconut republics such as Palau, the Marshall Islands, Micronesia, Nauru, Panama, and three other states, against the statute of “observer state” for Palestine at the United Nations.

138 nations voted to give the Palestinian state the same status as the Vatican. Even Switzerland voted FOR the Palestinian recognition. 

Obama and his spokesman disapproved: “peace will only be achieved by face-to-face negotiations, not unilateral action”, apparently not remembering the famous negotiations between the Nazis and the Jews, that led to the killing of most European Jews. The final solution was to get rid of the Nazis, but it took five years and eight months of world war to do so. 

The position of the White House, that Palestinians should lay as low as possible, and beg their Israeli masters discreetly, in private, reflects blindness to the fundamental principle of combative goodness.

It is all the more curious, as Obama and company claim to be Christians. The mythical Jesus Christ did not hesitate to confront the forces of evil, indifference and wealth, with ways sure to lead to arrest in the modern USA (and all sorts of subsequent persecutions).

Martyrs, saints, holy persons, peacemakers and Nobel Prize winners, and, more  generally the principle of goodness, act unilaterally. Face to face, slave to master, as Palestinian to Israeli, the way the White House claims to want it, has nothing to do with goodness. The USA is now face to face with the company it keeps: Palau, the Marshall Islands, Micronesia, Nauru, Panama, Israel, Harper’s ecocidal , Kyoto defiling Canada.

The Obama administration also does not know how to count: unilateral means one side, but when 138 independent nations throw 138 votes, that is not one sided. What was one sided was the USA and a handful of its ridiculously small and dependent client slave states it showers with money and influence.

Is that civilized behavior?

***

WHY DOES CANADA HATE PALESTINIANS?

Canada, a geophobic state voted with the USA, against human rights in Palestine. everybody knows that one of the interest of Palestine becoming an observer state at the UN is to be able to haul Israel to the International Criminal Court. The ICC, in force in now 121 countries, targets genocide. Several activities of some past or present Israeli governments seem to be genocidal in character. (it is not in the interest of serious Israeli patriots to allow Israel to engage in genocide, a point may orthodox Jewish organizations have made forcefully!) 

Canada is apparently not on USA payroll. But actually Canada’s present federal government and the oil plutocrats are accomplices in crime. Harper, the eco-destructing PM of Canada is anxious to have Obama allow his pipeline of twice cooked oil find an outlet somewhere (since British Columbia is not cooperative). 

In return that outrage will make it easier to pursue further outrages in the USA themselves, such as further fracking. (Although the principle of fracking, per se, does not have to be eco-destructing, the way it is practiced now, it certainly is so… Besides the fact that it leads to further CO2 emissions.) 

***

CAN’T JEWS & PALESTINIANS LEARN HISTORY WELL?

Petty reaction of Israel after Palestine was officially admitted by the UN to be an observer, 65 years, to the day, after the UN created the Palestinian state: Israel broadcast its decision to develop E1, a 12 square kilometers area that will cut off Palestinian East Jerusalem from the rest of Palestine.

Indeed the Israelis are mimicking the Nazi idea of erecting insurmountable walls around their ghettos. Israeli walls are chosen to be vastly superior, though.

The story of Israel is mighty strange; what came to be known as Jews were apparently those Israelis who were deported to Babylon, where they wrote the Bible. Meanwhile other Israelites, more cooperative, had not been deported. When the Jews in Babylon were allowed to come back and rebuild the temple, the relationship with the collaborators who had stayed home were not too good, and those were called Samaritans. Now, of course the Israelites have been chosen by their gods, like all people and all the gods they invent for themselves. However Jews believed it a bit more than usual, and perhaps too much.

Whereas the Celts let go of their bloody gods after the Romans, slowly, and Caesar, quickly, conquered them, the Jews clang to their “jealous” god ferociously, beyond reason. The result were two ferocious wars with Rome. The first one killed a million, the second, 65 years later, under Hadrian, resulted in the dispersion of the Jews. Emperor Hadrian’s government had tried to outlaw circumcision, on the ground that it was a primitive sexual mutilation. After that third savage war, between Jews and Rome, the Jews were outlawed in Jerusalem. The Samaritans kept on prospering.

Yet, in the Fifth Century, the increasingly insanely mass murdering theocratic state based in Constantinople (the one islam is the intellectual heir of) was in a collision course with anything not “Catholic Orthodox“. Intellectuals had to flee to Zoroastrian Persia. The Samaritans chose unwisely to fight. The result is that only a handful of them survive today.

We are all, we humans living on Earth now, descendants of colons, and our ex-gods were made to justify colonization. Judaism and Islam, both sitting on top of Mount Zion, are striking examples. Israelis and Palestinians have to admit this, this flaw they have in common, this crazy colonizing god, if they want to look inside each other, and themselves, as they have to do, should they elect to survive.

***  

OBAMA’S USA MAKES LAWS TO CARBONIZE THE EARTH:

The European Union legislated a tax on carbon emissions for all aircraft flying into European countries, a part of the Emissions Trading Scheme (ETS). However, Obama signed a bill from the fanatical climate denying Tea Party republican Congress that, somehow, shields USA airlines from paying that European carbon tax, when landing in… Europe.

Maybe the USA believes that Europe is still divided, as it was in 1939? I have news for Washington: playing the Germans against the French is so much yesterday!

Obama’s pollution bill gives the US transportation secretary the power to exempt US airlines from the tax. An unusual bill, as it allows US airlines to ignore EU laws. It’s as if Obama signed a law allowing US corporations to ignore British law. Or to ignore German law. And also French law. Besides Spanish and Italian law. Who does Obama believes he is? It’s fine to ignore the laws of other nations outside of their territory, but here, the president of the USA orders its minions to flout the laws of 28 countries on their territories.

Has the Commander in Chief of the USA become the Outlaw In Chief? Ordering robots to kill civilians in friendly countries upon recommendation of a secretive Death Panel at White House was not enough? Is Outlaw-in-Chief, Destroyer of the Earth, the place in history Obama strives for? Does Obama want to live in infamy for centuries to come? It increasingly looks like it, and being surrounded by salivating admirers all the time goes a long way to elucidate the trance of delusion that may end up smearing Obama’s name for centuries to come.

White House spokesman Clark Stevens, in an orgasm of hypocrisy:“the Obama administration is firmly committed to reducing harmful carbon pollution from civil aviation both domestically and internationally, but, as we have said on many occasions, the application of the EU ETS to non-EU air carriers is the wrong way to achieve that objective.” Obama had tepidly admitted that the USA had not done enough on climate change. This shows he firmly intents to keep it that way. How difficult is it for him to get the republicans getting used to his veto powers?

Notice the analogy with the USA failure to recognize Palestinian statehood at the United Nations (as authorized in 1948, finally implemented in 2012!) It’s exactly the same mental attitude: doing something is viewed as worse than doing nothing. The White House is firmly committed to oh blah blah and will do strictly nothing that fosters progress significantly. It’s all about talking one way, so as to do the opposite.

One can only surmise that this same general attitude holds for places such as Egypt (towards which billions of USA taxpayer dollars are directed, while democracy fails under the call to prayer).

Obama says that he “leads from behind“. This is unconventional semantics for lagging behind, desperately clinging to the past. Is Obama just the robot president, programmed from behind?

***

INTELLECTUAL OVERSTRETCH IS WORSE THAN GEOGRAPHICAL OVERSTRETCH:

Let me point out this about the USA’s detestation of the Carbon Tax. Starting with Roman Emperor Augustus, the great-nephew of Iulius Caesar, the theory of Imperial Overstretched  reigned supreme. It has been repeated ever since by many parrots: if a state spreads too much, it hits a state of diminishing returns, leading to collapse.

In truth, the theory is wrong. Completely wrong. At least, completly wrong in the case of Rome, as it turned out. And the proof that it was wrong is called Europe. Caesar did not believe in the silly theory Augustus would later embrace. Caesar was set to act accordingly at the time of his assassination. The Franks agreed with Caesar, and made an effort for more than three centuries, to create the short, highly defendable border in Eastern Europe that Caesar wanted. So doing, the Merovingian and Caroligian Franks created Europe. 

Although various Muslims (for a millennium), Vikings, and Mongols (thrice) attacked Europe fiercely, Frankish Europe operating as one continent proved highly defendable (which Augustus’ Rome spread along the Mediterranean proved, time and time again, NOT to be!). Thus Augustus, and his successors were wrong, with their rigid, all too long “limes“. Caesar and the Franks were right: a short and mobile frontier, with the strong intellectual component that republicanism (even Christian Republicanism, that took over around 400 CE!) was more stable, cheap, sturdy, and full of hope. 

Indeed there are more ways to stretch than purely geographical. Christianity itself is an example of spiritual empire: it spread much of Romanitas far out, where Roman armies never got. For example in Ethiopia, or Mongolia. 

Similarly an ideology can be very powerful, and stretch imperially, dragging armies behind. The Roman ideology, already obvious with the Roman king Tarquinus Superbus, was very universal (“catholic” in Greek), as befit a melting pot such as nascent Rome. 

Yet, in the end, the spirit of plutocracy smothered the spirit of the universal republic that had made Rome’s success. The Franks succeeded to conquer northern and eastern Europe, precisely because, although somewhat plutocratic, their civilization was much less so than the Late Roman empire. (If one could invent a political Gini Index, one would find it, and the economic Gini, were much lower under the Franks than under the Roman empire: decisions and powers were much less centralized.)

So what now? The spirit of the universal republic, prolongation of that of republican Rome (pre-slavery), thrives at the United Nations (and this game the leader of the Palestinian, Abbas, is fully playing). 

Why does the USA often stands as an outlier, with what are unfolding as catastrophic consequences, such as the sinking of the Kyoto Protocol? Why did the USA set back the mitigation of the heat trapping catastrophe by at least a quarter of a century after its extent became obvious? That is reminiscent of the long refusal by the USA to do anything about the massacres the Nazis were engaging in, years after such a horrible situation had become completely obvious. 

The problem with the USA is that the Biblical, relentless exploitative mentality (basically killing all the Indians, and the like) was highly successful. But its time as something that profited the European colonists in America is now passed. The exploitative mentality, no holds barred, is imperially overstretched

At this point the exploitative mentality of the USA is not just out-maneuvering the French, and Europeans, as it did, manipulating  the Nazis, the Soviets, the Muslims, and the rest of the world, over the last century.

The relentless exploitative mentality festering in the USA, but historically so central to its success as an empire, has stretched itself all too thin. The relentless exploitative mentality is now trying to out-maneuver the air, the sea, the biosphere, physics and geology itself (see Florida above).  And yet, clearly, fracking all in its way, is not the way. It is the way to infamy. How naïve. How costly, and deadly, all too soon to be revealed.

***

Patrice Ayme

European Peace Triumph

October 14, 2012

Two important philosophical events serving peace and progress happened October 12, 2012: a Russian Soyuz rocket carrying a very special cargo lifted from French Guyana, and the European Union got the Nobel Peace Prize. Finally.

If there is one individual or entity that ever deserved the Peace Prize, it is the European Union! Nothing, nobody, did more for peace than the EU. A truth all the mad European haters can now be slapped with. (To help them regain their senses.)

Croatia Should Join The Preceding 500 Million People In 2013.

Nobel Peace Prize committee secretary Geir Lundestad said the EU got the prize for its “accumulated record over more than six decades… it was about time.”

He listed five achievements: Franco-German reconciliation after World War II; support for new democracies in Greece, Portugal and Spain in the 1980s; support for former Communist states in the 1990s; modernisation of Turkey; and peacebuilding in the Western Balkans.

Committee chairman Thorbjorn Jagland added that the timing of the award is linked to the euro gloom.

“We should focus again on the fundamental aims of the organisation… If the euro fails, then the danger is that many other things will disintegrate as well, like the internal market and free borders. Then you will get nationalistic policies again. So it may set in motion a process which most Europeans would dislike,” he said.

“Dislike” is a euphemism for war. Indeed, civilization has gone into full, astounding reverse, many times before. Civilization is like a bicycle: pedalling in reverse does not work very long, before it crashes.

(Something the USA leadership ought to have meditated more carefully before engaging into officially sanctioned, officially unpunished, official war of aggression, official torture, official arbitrary detention, official arbitrary assassination worldwide by death panel for all to officially contemplate, and financial criminals officially extolled as saints and great men, and their banks worth giving S8,000 billions of public money. But of course that means that the USA leadership would have to know history in depth; instead all it knows from history is that violence pays handsomely)

***

EUROPEAN UNION AS A NEW PHILOSOPHICAL PARADIGM, 30 CENTURIES IN THE MAKING:

The European Union was launched by the two main continental powers of Western Europe, the two main pieces of the Frankish empire, Francia and Germania, after nearly two centuries of continuous war with each other ended in total civilizational devolution.

How we got there is, by itself a tremendous story, even older than when the Celts occupied Rome, 24 centuries ago. The Franks claimed it came all the way back to the fall of Troy.

The European Union is no less than a reconstitution of the “Renovated Roman Empire” of 800 CE. Now the later had been established by more than 4 centuries of continuous war.

After six generations of unity, an estrangement, an apartheid was tried: the Franks around Paris on one side, the rest of the Franks, on the other side.

That alternative to unity led to vigorous fighting over the for 1,000 years.

That diabolical alternative, the breaking up of Europe, once again, effected 1,080 years ago, the plutocrats love (as it fosters war, hence fascism, hence fascist leadership, hence their “leadership”). The plutocrats, and their many servants in the academia, and media, of the USA, mongrels of money avid, have been pushing.

The European Union is not just being built to insure peace by creating entanglement and co-dependency. (See “Why Europe Why The Euro“)

The European Union represents also a new way of approaching (in particular inter-national) politics, through intense debate, beating the problems into submission with ideas, in the fullness of time. (Notice that this does not require unanimity!) Some (Socrates, Plato, Aristotle, countless enemies of the Open Society lauded by Pericles) will say that this was tried in Athens before, and led to disaster.

Well the answer to that one is pretty easy: Athens did not have the democratic institutions that the EU has (answering Socrates’ main objection). And Athens (including Socrates) was often inhuman. And Athens’ National Assembly was hysterical, deciding an holocaust on one day, forbidding it the next (after the orders had sailed away).

The European Union advances slowly, methodically, meditatively (a momentary disadvantage of democracy, be it against Hitler, or against the present plutocratic conspirators).

The first serious attempt at pacific unification between France and Germany happened before Nazism (Napoleon had unified Germany before, but that was not pacific). Nazism is how that pacific unification attempt of the 1920s & 1930s was crushed. The plutocrats know how to instrumentalize democracy, war, holocausts. They are at it all the time, including now.

***

THE FRANKS BUILT GERMANIA…

Long ago two philosophies fought, one, the Greco-Roman, strongly exploitative, the other, the Minoan-”Trojan”-Frankish, more comprehensively, and comprehendingly human (“Troy” was actually a subsidiary from a much larger power following the Great Mother religion, hence presumably less sexist, hence the war about free woman Helen, that came to define Greece… sexism?).

The Romans, and later the Franks turned Germania in a place where civilization became sufficiently intense to be worth conquering and governing. The irony was that the Salian Frank confederation was German. It soon understood that a superior philosophy would allow it to become richer, and superior to Romanitas (“Romanity”). Some of the Romans, among the most important generals, were full participants to this devious scheme of endowing the Franks with that advanced philosophy (I know this because the law of the Franks was written in Latin in a neo-Republican, more equalitarian mood).

The Franco-German empire lasted more than 5 centuries in united splendor (from Clovis’ crushing of the Goths, to the election of Otto I after the French refused to provide with any input in the election). The main cause of the split was French contempt, centered around Paris, for the uncouth eastern types… who comprised no less than two thirds of the empire (due to the Treaty of Verdun, 843 CE). Kind contempt veered progressively into estrangement, while the part not controlled by Paris called itself what it was, the Roman empire (it became “holly” centuries later and “German” by 1500 CE).

***

POST FRANKISH EUROPE, OR WHEN ESTRANGEMENT MEANS WAR:

The conquest and subsequent fabrication of England by a French army headed by the Duke of Normandy (Nortmanni Dux) made the situation worse, as the king of France, for a while was not much more than the king of Paris (when l’Anglois was not in possession of that too).

Yet Paris was by far the mightiest city in Europe (in the middle of a giant productive agricultural zone), and Paris engaged in centuries of reconquest, a drive, propelled by necessity, to inverse the Treaty of Verdun by force. It was only historical justice that over ten month in 1916, nearly one million young French and Germans died there (at least 700,000 in combat, and the rest, like rats abused to death).

The reason is simple: Verdun itself, not far from Paris, was not under Paris control. Nearly half of present day France, and the ancient Francia and Gallia, had been, unbelievably estranged from itself by force, under the Treaty of Verdun (843 CE) and it made no sense in all dimension of geography: human, linguistic, physical, commercial, etc.

***

WHY DID SOME WWI FRENCH HEROES TURN INTO NAZIS?

A curious phenomenon occurred: several of the most prominent collaborators of Hitler during the occupation of France by the Nazis were extreme heroes of World War One. Petain, who went out of his way to betray in 1940-44 was the general leading, and winning, the battle of Verdun with utmost ferocity, even re-instituting the notorious Roman method of decimation (in Roman army units that had disobeyed orders drastically, one man out of ten was executed).

In the Second Battle of the Marne, the French command knew, or guessed perfectly well the Prussian general staff’s plan. In no small measure from commando operation led by perhaps the most famous special operation officer in France, Joseph Darnand, just before the attack: he captured an entire Prussian command, on July 14, 1918, with the plans of the attack for the next day. He was declared one of the three artisans of victory (with Clemenceau and Foch). In 1940, again, he volunteered, in spite of his age, and distinguished himself as a lieutenant in many special commando operations behind enemy lines and was made officer of the Legion of Honor.

Unbelievably, Darmand became the chief of the Milice, an organization of fascist racist criminals (it would be too flattering to call them SS, although many ended in the Waffen SS in 1945), 30,000 strong, most of them got executed (most often, informally). Darmand had a proper trial, and died, shot by firing squad October 3, 1945, while singing a manly song.

Why did such war heroes became like dogs to Hitler? Because the WWI heroes were sick of war, and, in particular, sick of making war to Germany. In their haste to embrace Germany, they did not notice, as much as they should have, that they were embracing Nazism.

***

ISRAEL SHOULD HAVE A BIR HAKIEM NATIONAL THNKSGIVING DAY:

The same sort of phenomenon happened on the Nazi side. (Let alone the German side!) One has to understand that the number one objective of Nazism was to vanquish France. (All the rest of Nazi obsessions were afterthoughts!)

One could not find more dedicated French hating Nazis than Hitler and Rommel. Still they underwent radical psychological change… while fighting the French for nearly six years (1939-1945). Precisely because they got spanked so bad. (It was not exactly Hitler’s plan to start a world war in 1939 that he was sure to lose!)

Rommel started the war as a fanatical Nazi general, complete with mass murder, and extremely gifted. The killing of the French and British armies in 1940 was greatly his work. The whereabouts of his Seventh Panzer division were the most mysterious part of general Guderian’s (already secret to the High Wehrmacht command) sickle attack by the ten armored divisions of the Nazi army.

A few weeks later, after Dunkirk, Rommel led Guderian’s attack south. But, on the Somme river, Franco-African units stopped him for three days. Finally the French officers (mostly) surrendered their mostly African troops, as they had run out of ammunition. Rommel, enraged by the losses of his beloved Nazi comrades executed all his French army prisoners. White and blacks. Hundreds.

Then there was the battle of Bir Hakiem. Rommel had defeated the British army, which was trying to retreat, in disarray, along the Libyan coast.

Rommel wanted to win the war, and that meant killing the British army before it could retreat to prepared defense lines at the Egyptian border. For that Rommel decided to implement a fast sickle move behind the British units, slowed down by their heavy weapons. If that encirclement had worked, the elite British 8th army would have been annihilated, the allies would have had no significant force before India.

History’s largest pincer move, planned by Adolf Hitler, would have unfolded in a few months: Rommel would have seized Egypt, the Mediterranean would have become a Nazi lake. After a few weeks of reorganization, Rommel’s re-boosted army would have dashed into Iraq. Azerbaijan, and its considerable oil, would have been squeezed between Rommel and the Nazi south army group advancing through the Caucasus.

The exterminators in charge of assassinating the one million Jews in Palestine, were ready.

However, time was of the essence for Rommel to win. In June 1940, France had been vanquished because the Nazi advance was so fast that the French and British armies got cut off. A few weeks later, the French aerial supremacy, which, after enormous Nazi losses, existed on paper, could not be implemented, as airfields were falling to the Nazi tanks, one after the other.

So Rommel had to go fast. He took all his best armored divisions, and dashed through the desert. He met 4,000 French elite soldiers at Bir Hakiem, in a new version of Thermopylae. The French knew everything about “guerre éclair” (Blitzkrieg) and knew that, to break Rommel, they had to slow him down.

The French held two weeks, suffering enormous losses, until they ran out of ammunition. This allowed the British army to escape Rommel’s encirclement and take refuge into the prepared defensive lines, and their mine fields. Ultimately Rommel tried a frontal assault, months later, and was defeated.

Hitler was livid: incapable of getting Iraq and Caucasus oil, and to cut the flow of supplies going from the USA to the USSR, through Iran and the Caspian, he was losing the war, for sure.

***

WHY DID THE TOPMOST NAZIS TURN PRO-FRENCH DURING WWII?

Assessing the Nazi disaster at Bir Hakiem, Hitler declared to his cabinet that the French were the best warriors (after the Nazis), and so France had to be annihilated. However the Nazi cabinet was unimpressed by its boss’ flourish. Led by Hitler’s favorite, Albert Speer, the cabinet pointed out to the Fuehrer that, without French industrial help, it’s Nazi Germany that would get exterminated. Hitler, ever more livid, observed that, if one let the France industry grow to support the Nazi war effort,  France would win the war without fighting. Speer told him there was no choice. Hitler agreed.

Thus, what happened was striking: by Hitler’s own standards, Hitler became a collaborator to France, as early as 1942, after France had inflicted to him a lethal strategic defeat. And precisely because of that. The ways of war are mysterious, and unpredictable.

Meanwhile Rommel reconsidered that war crime, kill the prisoners, fanatically Nazi strategy of his. After all the superior Nazi race had been stopped at Bir Hakeim, not just by a French force, full of french aristocrats, but also a French force full of French Jews.

After a famous SS officer in an SS Panzer division committed some war crime against French civilians, in 1944, Rommel, head of the Nazi forces in France, ordered the SS arrested. Better: Rommel, and much of the Nazi Wehrmacht, joined the top German generals who considered Hitler a menace to Germany, and they made a coup. Next the best Nazis plotted with the French resistance to save Paris, and so on. Towards the end of the war, in an ultimate nail in the Nazi mood system, even Himmler (helped by a Swedish diplomat and a courageous Jew) got into the act of saving Jews (from his own death machine).

The Nazi philosophy had been thoroughly defeated, and buried, by many of the top Nazis themselves. In no small measure because the Nazi war against Europe had proven to be a war against Germany herself, and victory proven to be worst than defeat.

Ironically, Nazism, and its fascist Prussian predecessors, let alone Napoleon, had demonstrated that European Unification was unavoidable, but that war was not the way to unify Europe. Sade had been right, all along: just war is a must.

***

WAR BETWEEN FRANCE & GERMANY: SELF DEFEATING, YET SIMPLY STARTED BY NOT SINGING TOGETHER:

Conclusion 1: For Germany to make war against France, or reciprocally, was like shooting oneself in the head, it made no sense. That was clear to people such as Petain (who decorated Darnand) in 1940, and even to most Nazis by 1945.

Conclusion 2: But war is not how it started. Estrangement is how war got started. Thus some Greeks are welcome to parade with Nazi flags in honor of Merkel the Angel: no indifference wanted. Show the passion, express your feelings, push forward the debate. So now, can the Greeks explain why their plutocrats are not taxed, and why they want to build a Formula One circuit with 29 million euros of (Franco-German) government money (while France, 15 times richer, discontinued Formula One because maintenance cost so much).

***

TREMBLE ENEMIES OF EUROPE: YOU HAVE BEEN REVEALED AS ENEMIES OF PEACE:

A philosophical Rubicon was crossed by giving the Union the Peace Prize. A declaration of philosophical war against the enemies of Europe, the forces of evil, the forces of plutocracy (of the same sort as those which launched the surprise World War of August 1, 1914). This help from the Nobel Committee does not come too soon.

Hateful, grotesque propaganda and machinations from the richest people and criminal organizations in the world have attacked the European Union with a viciousness unseen since the 1930s. I literally read hundreds of pages of ill informed, but vicious anti-European venom from, say, “the conscience of a liberal” Paul Krugman, a famous academic and Nobel, pillar of the supposedly left wing and newspaper of reference of the USA, the New York Times.

In the 1930s, the fascists were in plain sight. They claimed to be NAtionalist, and ZocIalist (NA-ZI). They were nothing of the sort. In truth, they were serving their masters, the plutocrats of (mostly) three different nationalities (Deutschland, UK, USA), and three different sorts (financial, military, industrial).

Nowadays the situation is simpler. The  plutocrats are in plain sight (although they have been hiding behind some of political parties, most prominently those of the USA, they are in no way hidden as they were ).  Their criminality is blatant. But they are not prosecuted. The supposedly democratic USA president sings their praises (see Obama making criminal conspirator Buffet into god… in supposedly leftist Newsweek).

For example, the financial criminals control more than three quarters of the world financial system (way worse a situation than when banksters supported Hitler in the 1920s and 1930s). How do I know this? That quantitative estimate can be rigorously evaluated. For now, I will leave my method to the imagination of the reader.

Plutocracy, much of it New York and London based did its best to sabotage the European Union, and pushed National “Socialism” instead. It worked, and the result was the Second World War and its holocaust(s). The plutocracy based in the USA came out of it strong and irresistible, establishing its self declared “American Century”.

European haters have been supported in their attacks by ignorant, or deliberately vicious Wall Street sycophants and helpers (generally both ignorant and vicious).

The case of the ignorant Paul Krugman is typical. I say “ignorant” deliberately, because it describes reality most faithfully. Krugman is esteemed by the oligarchy, and advise it. He was scathing against European Monetary Union (EMU), or the general idea of European unification. After thirty years of this or so, from being in Ronald Reagan’s government to a status of semi deity of American “liberals”, trashing Europe, Krugman suddenly discovered the existence of the Founding Fathers of Europe, such as Robert Schuman, and the idea that the European Union was being built to make war inside Europe impossible. Then Krugman declared that the European Union was a good thing… so it had to be saved from the European Monetary Union.  

Of course, a Monetary Union is indispensable to insure peace. The USA actually engaged in a horribly deadly civil war (nearly 3% of the population killed), precisely when, and because, the USA had no monetary union (the greenback was created during the civil war, at the end of the barrel of a gun, to pay for union troops).

***

PEACE MEANS STRENGTH, & THUS IN THE WAY OF USA PLUTOCRACY: GALILEO.

One of my main ideas is that, just as Rome, the North American English speaking republic is pervaded by the exploitative supreme mentality. Just as Rome, the USA came to become dependent upon slavery, and the unfair exploitation of man by man.  

That put the USA on a collision course with the sustainable mentality of the European Union.

The best example of that was the propping, by the plutocracy of the USA, of Adolf Hitler, and even of Joseph Stalin. All of these efforts to eliminate the competition from the European democracies (mostly Great Britain and France, and their giant empires). It worked splendidly, this massive, multi generational conspiracy.

When I write this many haters rise and condemn me as mad man. Many pseudo left sites immediately banned me, as a “conspiracy theorist”.

However, the fact are here, they are blatant. Yes, the USA knew, at the time, that Stalin had eliminated the Polish elite, and still supported Stalin like crazy for the following 5 years, even giving him half of Europe, including Poland. The USA hid that fact for 25 years more than the USSR did. In other words, the American public is manipulated at a depth exceeding the Soviet one by a full generation!

So much for the USA being the country of freedom. Plutocratic freedom, yes, public freedom, no.

A secondary conspiracy what the one with the feudal, oil providing regimes such as Saudi Arabia, or Bahrain. Now under stress and contradiction.

My point of view is progressing under the radar of conventional propaganda.

For example the USA provides the GPS signal. Half a century ago, the Europeans would have saluted crisply, and trust Uncle Sam. But what if Uncle Sam was behind Hitler, Stalin, Khrushchev? Khrushchev? remember the invasion and massacre of Hungary, coincident with Suez, Khrushchev threatening to atom bomb London and Paris, while the USA had France and Britain condemned by the General Assembly of the United Nations?

Well, Europeans are starting to understand that the Italian resistants were not crazy to hang Mussolini from an Exxon station (OK, Exxon has craftily changed its name since). USA oil companies made Hitler and Mussolini all they could be.

So the Europeans thought, and, led by the obnoxious French, discovered that the GPS was a vulnerability. They decided to make their own GPS. Galileo. That is why thus astounding sight, back to Franco-Russian ccoperation of 100 years ago, but now with German collaboration:

Within three years, medium Russian Soyuz and large French Arianne rockets should have launched 30 of the satellites.

Meanwhile the USA dragged pathetically the last space shuttle, an error with wings, through the streets of Los Angeles, cutting 400 trees in the process. How do the USA get to space these days? With, well, the rocket in the preceding picture, Soyuz. 

How many man rated rockets the USA has now? Zero. How many does the West have? One. Just one: the European, French built, Ariane. But the USA does not want to use it: pride first. Just as with the Rafale, a superlative fighter bomber without equivalent in the USA, the Washington leadership prefers anything, even being launched by the Russians, rather than cooperating with the philosophical enemy, its progenitor, France and the European Enlightenment (considering that the USA legalized slavery while its antagonist, Great Britain freed the blacks that joined its side, it’s not clear which side was the most enlightened in the American Independence war).

The USA will have to surrender to the European Enlightenment someday, because full humanity is a better philosophical leadership than exploitative scheming, always, in the fullness of time Plutocracy is a mediocracy, democracy a meritocracy, where it counts the most, the realm of ideas.

And how do the best ideas win? Through debate, and even more debate. And this is what the European Union has promoted. After Merkel got really mean (as deserved), she took a low cost airline to travel to Italy for vacation. That’s what debating also is: speaking with one’s acts.

As the picture of the Soyuz above demonstrates, the European Union extends way further than its present official borders. Its new civilization of debate supreme is playing a role quite a bit similar to the spreading of Christianity well beyond the borders of the Roman empire, spreading Roman values, well beyond what the Roman legions could reach… (And much of how Romanitas survived to this day.)

European construction, the growth of the European Union, is, in essence, transcendental, as it forces three dozen nations to ever more overwhelm their differences with more brainy convergences. In that sense, it is a most important philosophical movement on the millennial scale, which can serve as a template to many other transplanetary organizations, including the United Nations, necessary to handle fascism, massive terrorism, and the devastation of the biosphere.

If the European Union failed, it would be the very engine of the progress we humans need to survive, which would fail. But, of course, the European Union will not fail. The mighty, and very determined, French and German Republics will see to it that the European Union will not fail.

***

Patrice Ayme

Boosted By Soros On Europe:

June 7, 2012

BAD GERMANY, BAD EUROPE:

Abstract: I agree with much of what Soros said on the bank and currency crisis in Europe. Under his calm language, his indictment of Germany is frightening. I add fuel to the fire, naturlich.

[This is the European centered part of Soros' discourse.]

***

  Soros:The fallibility of market participants, regulators, and economists must also be recognized.  A truly dynamic situation cannot be understood by studying multiple equilibria.  We need to study the process of change.

PA: In the case of European Monetary Union (EMU), even the equilibrium analysis was flawed from the start. It is not a question of Europe not being an optimal currency area (as American Europhobic destroyers often have it). It was much more basic than that: the nature of money was misunderstood.

  Soros: The euro crisis is particularly instructive in this regard. It demonstrates the role of misconceptions and a lack of understanding in shaping the course of history. The authorities didn’t understand the nature of the euro crisis; they thought it is a fiscal problem while it is more of a banking problem and a problem of competitiveness.

PA: As Soros himself would say further on, it’s even deeper than that: the possibility of making “fiat money” was denied. Thus European states were cut at the heel. “Fiat Money” goes at the heart of the concepts of money… and state.

There is also a massive corruption problem, and it is not confined to banks. It implicates the very nature of today’s constitutions.

The very nature of representative democracy is to put a lot of power in a few hands. This is also what plutocracy does. Make interact together the very few elected ones with the very few who have a lot of money, boost all of this with the fractional reserve privately money creating banking system, and churns out the rule of wealth, an aspect, with titanic corruption, of plutocracy.

  Soros: And [European Officials] applied the wrong remedy:you cannot reduce the debt burden by shrinking the economy, only by growing your way out of it. The crisis is still growing because of a failure to understand the dynamics of social change; policy measures that could have worked at one point in time were no longer sufficient by the time they were applied.

PA: They applied the wrong remedy deliberately. Merkel, Sarkozy and the Brussels’ fauna are in cahoots with the private financial pirates; they are their legal arm. All they wanted to do is that their friends, the pirates, recover their principal, after squeezing hard enough the colonized. So they set-up an aid system nominally for the latter, but, truly for their bankster friends. 

The delay in the correct measures was also deliberate. The allies of plutocratic banks (Merkel, Sarkozy, Barroso, etc.), have used it as a tactic to do nothing.

Always doing too little, too late, is an efficient way to do nothing, while claiming one meant well. Let’s not be fooled by Merkler and her kind.

The basic, deliberate flaw at the base of the EMU, is to make money creation a plutocratic affair. It would have emerged anyway. It emerged now, because we have a plutocratic bubble.

That bubble, in turn, was caused by the arrogance consecutive to the Bush-Obama(-Blair-Sarkozy-”Citizens-United”) years, when the plutocrats’ influence has started to look unimpeachable, and this once-in-a-civilization chance to grab power once and for all has made them frantic! 

The same happened after 150 BCE in Rome. Then, the plutocrats won, and Rome started its long decline. This time the decline is guaranteed to be short and brutish.   

  Soros; Since the euro crisis is currently exerting an overwhelming influence on the global economy I shall devote the rest of my talk to it. I must start with a warning: the discussion will take us beyond the confines of economic theory into politics and the dynamics of social change. But my conceptual framework based on the twin pillars of fallibility and reflexivity still applies. Reflexivity doesn’t always manifest itself in the form of bubbles. The reflexive interplay between imperfect markets and imperfect authorities goes on all the time while bubbles occur only infrequently. This is a rare occasion when the interaction exerts such a large influence that it casts its shadow on the global economy. How could this happen? My answer is that there is a bubble involved, after all, but it is not a financial but a political one. It relates to the political evolution of the European Union and it has led me to the conclusion that the euro crisis threatens to destroy the European Union. Let me explain.

PA: Agreed that there is a political bubble. But to say there was not a financial bubble is, simply false. The financial bubbles in Greece, Ireland and Spain were blatant. So was a general real estate bubble. For years, decent, hard working upper middle class people could not afford to live decently in the world’s most expensive cities, although those concentrated much of the GDP of the world (this is an allusion to New York, London, Paris, Tokyo, among others). So the main producers of added value work could not afford to live where they added the value, making the West’s economy inefficient (and society unjust).

Actually there is even, worldwide, a plutocratic bubble, the one Soros does not want to see. But I agree with him that the European Union is threatened at this point. Mountainous decisions have to be taken in days, in a system made to produce a few mice in a decade.

  Soros: I contend that the European Union itself is like a bubble. In the boom phase the EU was what the psychoanalyst David Tuckett calls a “fantastic object” – unreal but immensely attractive. The EU was the embodiment of an open society –an association of nations founded on the principles of democracy, human rights, and rule of law in which no nation or nationality would have a dominant position. 

PA: Although I see what he is trying to say, Soros is starting to thread very dangerous ground here. The European Union has to be, or there will be another war. It is not a bubble, it is the main weapon against insanity.

Europe is not a “fantastic object’, it is a necessity.

  Soros: The process of integration was spearheaded by a small group of far sighted statesmen who practiced what Karl Popper called piecemeal social engineering. They recognized that perfection is unattainable; so they set limited objectives and firm timelines and then mobilized the political will for a small step forward, knowing full well that when they achieved it, its inadequacy would become apparent and require a further step. The process fed on its own success, very much like a financial bubble. That is how the Coal and Steel Community was gradually transformed into the European Union, step by step.

Germany used to be in the forefront of the effort.

PA: Sort of. Although German politicians used to be in the forefront of the effort in the 1920s, after Germany fell into Nazism, it was of course unable to lead mentally. If nothing else, Nazism had decapitated Germany. Instead, after the Nazi disaster, Germany followed the lead of French statesmen, who had brandished the olive branch (say by not insisting to recover the entire West bank of the Rhine; the same generosity was mysteriously applied to Italy, although clearly major ex-French speaking parts of Italy such as Val D’Aoste, and next to Turin, used to be part of French speaking Savoy, and, after Mussolini’s forced Italianization could/should have very well be annexed!).

One can observe Soros’ drift into anti-European, pro-plutocratic and (implicit) anti-French bias. All students of the early European Union know that Robert Schuman and Jean Monnet, two Frenchmen, played the leading roles, and the German role consisted mainly to salute the French led effort, and goose-step behind it. The tables of collaboration had been turned around.

Many surviving Nazi generals knew all too well that they got incredibly lucky in 1940, and had been in excellent position to observe the self defeating nature of the war against France. So, although still influential in German society (!), in the 1950s, they pushed for the symbiosis with France, that Hitler himself, at Speer’s urging, had to admit had to happen. That drove Hitler to many a feat of rage.

But if even Hitler had to collaborate with France, the country that he hated so much, how could any German refuse to collaborate with France?

If Hitler had to collaborate with France, then why did he start the war? Hitler obviously felt. The answer, as the Nazis insisted at Nuremberg is that it was France, not Germany, which had started the war. Well, France had to start the war, it was a question of civilization, and the proof was Auschwitz.

Hitler and Rommel had admitted earlier that the French strategically destroyed the Afrikakorps at Bir Hakeim (don’t believe what all Anglo-Saxon Wikipedia says about it; they quote from some vengeful Nazi). The resistance at Bir Hakeim to the fury of the entire Afrika Korps deprived it from its only chance to surrender and destroy the British army protecting the Middle East. The scythe move in the desert before Tobruk, was blocked by the tiny army of (ironically named) general Koenig.

By the time of this strategic French victory (May-June 1942) the Americans had not fired one shot against the Nazis yet. If Israel exists today, it’s thank to Bir Hakeim. OK, back to our Jewish survivor here.

  Soros: When the Soviet empire started to disintegrate, Germany’s leaders realized that reunification was possible only in the context of a more united Europe and they were willing to make considerable sacrifices to achieve it. 

PA: Soros here is starting to get really crafty. He knows very well that what he says he is not true: it’s the French (and, especially Mitterrand, who I do not like, but was right on that) who insisted upon the Euro, in exchange for supporting Germany’s reunification. As Mitterrand had (unlawfully?) financed his good friend Kanzler Kohl’s re-election, it was hard to say no. The French idea was precisely to make European Unification impossible to reverse.

(Mitterrand used similar methods on Thatcher, by supporting her crucially for the Malouines/Falkland war, he extracted from her the Chunnel and the Single European Act…)

So why is Soros lying? Because he is trying to put in sharp contrast the alleged wisdom of Germans in the 1990s versus the sort of neo-Nazism we are now condemn to contemplate the apparent rise of. Here we have the spectacle of a Jew, Soros, being too crafty by half, and much too polite with proto-fascism, the sort of process philosopher Hannah Arendt, also a Jew, loudly, and justly,  decried in the 1930s and 1940s.

  Soros: When it came to bargaining they were willing to contribute a little more and take a little less than the others, thereby facilitating agreement.  At that time, German statesmen used to assert that Germany has no independent foreign policy, only a European one.

PA: That’s the least Germans could do, after fostering, for a century, a policy of systematic assault against other nations, starting with a war against Denmark in 1864. This policy was ended by force, in an action started by France (leading) and Britain (following belatedly), on September 1, 1939 (Ultimatum to Germany) and ended May 8, 1945 (capitulation without condition of said Germany. Now some Germans are saying they are tired of the “Nazi blackmail”. Well, then, they should not practice it, again.  

  Soros: The process culminated with the Maastricht Treaty and the introduction of the euro. It was followed by a period of stagnation which, after the crash of 2008, turned into a process of disintegration. The first step was taken by Germany when, after the bankruptcy of Lehman Brothers, Angela Merkel declared that the virtual guarantee extended to other financial institutions should come from each country acting separately, not by Europe acting jointly. It took financial markets more than a year to realize the implication of that declaration, showing that they are not perfect.

The Maastricht Treaty was fundamentally flawed, demonstrating the fallibility of the authorities. Its main weakness was well known to its architects: it established a monetary union without a political union.

PA: This is true, but that was a deliberate plan, to force unification from the top down.

There was an more proximal flaw. As created the European Central Bank was deprived of many fundamental powers that all other central banks have had, since there are central banks. (The first central bank was the Bank of England, with a tight relation to the financing of the Royal Navy, followed later by the Banque de France.)

In general, sovereigns have always struck coinage. However, under Dutch (highly leveraged) influence (“Glorious Revolution”, 1688, truly an invasion), Britain set-up a highly leveraged plutocratic system, the fractional reserve. (That it is plutocratic was observed by the Rothschild themselves, who were at the core of it.)  

  Soros: The architects believed however, that when the need arose the political will could be generated to take the necessary steps towards a political union.

PA: The main architect was the French, Jacques Delors, a socialist and loud Christian. He amplified thus the system put in place by French banker, Rothschild servant, and also French president, George Pompidou. A law of 1973 outlawed the financing of the French state by its central bank (something all other central banks do). Instead the French state had to go to plutocrats to beg for money.

As leveraged banks are truly state institutions, this established a further control of the French state, hence Europe (after the European Monetary Union), by private individuals, the bankers.  

  Soros: But the euro also had some other defects of which the architects were unaware and which are not fully understood even today.

PA: Those architects claimed to be socialist, while ruling that banks would rule thereafter. In other words, if they were not arrogant idiots, they were deeply corrupt (yes, I am talking about Delors… somebody I long viewed as a European hero, and now looks more like a European horror!)

  Soros: In retrospect it is now clear that the main source of trouble is that the member states of the euro have surrendered to the european central bank their rights TO CREATE FIAT MONEY. They did not realize what that entails – and neither did the European authorities.

PA: Not just that: the power of the ECB to create fiat money is ALSO very restricted (it cannot be lent to states directly, governors can’t be overruled, etc.) As it is, it left only the plutocrats with the power to create, through private banks, money in Europe.

As I already said, can one be that idiotic without being deeply corrupt?

Money is nothing without a state. A state is nothing if it cannot project power, and this it is does through military power, first of all, and financial power, when it is in a good mood. The stick, and the carrot. The way the EMU was set-up, there was not carrot in control of the state, the carrot was in control of wealthy people and their managers. Nor was there a stick. And the state does not really exist, either.

  Soros: When the euro was introduced the regulators allowed banks to buy unlimited amounts of government bonds without setting aside any equity capital; and the central bank accepted all government bonds at its discount window on equal terms. Commercial banks found it advantageous to accumulate the bonds of the weaker euro members in order to earn a few extra basis points. That is what caused interest rates to converge which in turn caused competitiveness to diverge. Germany, struggling with the burdens of reunification, undertook structural reforms and became more competitive. Other countries enjoyed housing and consumption booms on the back of cheap credit, making them less competitive. Then came the crash of 2008 which created conditions that were far removed from those prescribed by the Maastricht Treaty. Many governments had to shift bank liabilities on to their own balance sheets and engage in massive deficit spending. These countries found themselves in the position of a third world country that had become heavily indebted in a currency that it did not control. Due to the divergence in economic performance Europe became divided between creditor and debtor countries. This is having far reaching political implications to which I will revert.

PA: Perfect analysis, nothing to add.

  Soros: It took some time for the financial markets to discover that government bonds which had been considered riskless are subject to speculative attack and may actually default; but when they did, risk premiums rose dramatically.

PA: Soros is admitting here implicitly the culpability of money changers (such as hedge funds… there are 20,000 of those; one, failed for being on the wrong side of trades in Italian government bonds; it was headed by J. Corzine ex-gov of New jersey, ex-head of Goldman Sachs… Billions disappeared mysteriously…)

  Soros: This [speculative attacks] rendered commercial banks whose balance sheets were loaded with those bonds potentially insolvent. And that constituted the two main components of the problem confronting us today: a sovereign debt crisis and a banking crisis which are closely interlinked.

The eurozone is now repeating what had often happened in the global financial system. There is a close parallel between the euro crisis and the international banking crisis that erupted in 1982. Then the international financial authorities did whatever was necessary to protect the banking system: they inflicted hardship on the periphery in order to protect the center. Now Germany and the other creditor countries are unknowingly playing the same role.

PA: Once again, for pedagogical and diplomatic reasons, Soros is extravagantly polite with the German authorities. There is no way they do not understand that they are destroying Europe. (…And helping Putin’s Russia. BTW, Merkler speaks Russian.)

  Soros: The details differ but the idea is the same: the creditors are in effect shifting the burden of adjustment on to the debtor countries and avoiding their own responsibility for the imbalances. Interestingly, the terms “center” and “periphery” have crept into usage almost unnoticed. Just as in the 1980’s all the blame and burden is falling on the “periphery” and the responsibility of the “center” has never been properly acknowledged.  Yet in the euro crisis the responsibility of the center is even greater than it was in 1982. The “center” is responsible for designing a flawed system, enacting flawed treaties, pursuing flawed policies and always doing too little too late. In the 1980’s Latin America suffered a lost decade; a similar fate now awaits Europe. That is the responsibility that Germany and the other creditor countries need to acknowledge. But there is no sign of this happening.

The European authorities had little understanding of what was happening. They were prepared to deal with fiscal problems but only Greece qualified as a fiscal crisis; the rest of Europe suffered from a banking crisis and a divergence in competitiveness which gave rise to a balance of payments crisis. The authorities did not even understand the nature of the problem, let alone see a solution. So they tried to buy time.

Usually that works. Financial panics subside and the authorities realize a profit on their intervention. But not this time because the financial problems were reinforced by a process of political disintegration. While the European Union was being created, the leadership was in the forefront of further integration; but after the outbreak of the financial crisis the authorities became wedded to preserving the status quo.

PA: Merkozy caused a lot of damage, in other words.

  Soros: This has forced all those who consider the status quo unsustainable or intolerable into an anti-European posture. That is the political dynamic that makes the disintegration of the European Union just as self-reinforcing as its creation has been.  That is the political bubble I was talking about.

At the onset of the crisis a breakup of the euro was inconceivable: the assets and liabilities denominated in a common currency were so intermingled that a breakup would have led to an uncontrollable meltdown. But as the crisis progressed the financial system has been progressively reordered along national lines. This trend has gathered momentum in recent months. The Long Term Refinancing Operation (LTRO) undertaken by the European Central Bank enabled Spanish and Italian banks to engage in a very profitable and low risk arbitrage by buying the bonds of their own countries. And other investors have been actively divesting themselves of the sovereign debt of the periphery countries.

If this continued for a few more years a break-up of the euro would become possible without a meltdown – the omelet could be unscrambled – but it would leave the central banks of the creditor countries with large claims against the central banks of the debtor countries which would be difficult to collect. This is due to an arcane problem in the euro clearing system called Target2. In contrast to the clearing system of the Federal Reserve, which is settled annually, Target2 accumulates the imbalances. This did not create a problem as long as the interbank system was functioning because the banks settled the imbalances themselves through the interbank market. But the interbank market has not functioned properly since 2007 and the banks relied increasingly on the Target system. And since the summer of 2011 there has been increasing capital flight from the weaker countries. So the imbalances grew exponentially. By the end of March this year the Bundesbank had claims of some 660 billion euros against the central banks of the periphery countries.

The Bundesbank has become aware of the potential danger. It is now engaged in a campaign against the indefinite expansion of the money supply and it has started taking measures to limit the losses it would sustain in case of a breakup. This is creating a self-fulfilling prophecy. Once the Bundesbank starts guarding against a breakup everybody will have to do the same.

PA: Yes, Germany is rotting at the head, and it’s not just the heads of Chancellor Merkel and her government.  Launching a self fulfilling prophecy of evil is no small matter, morally speaking.

  Soros: This [a self-fulfilling prophecy of breaking up] is already happening. Financial institutions are increasingly reordering their European exposure along national lines just in case the region splits apart. Banks give preference to shedding assets outside their national borders and risk managers try to match assets and liabilities within national borders rather than within the eurozone as a whole. The indirect effect of this asset-liability matching is to reinforce the deleveraging process and to reduce the availability of credit, particularly to the small and medium enterprises which are the main source of employment.

So the crisis is getting ever deeper. Tensions in financial markets have risen to new highs as shown by the historic low yield on Bunds. Even more telling is the fact that the yield on British 10 year bonds has never been lower in its 300 year history while the risk premium on Spanish bonds is at a new high.

The real economy of the eurozone is declining while Germany is still booming. This means that the divergence is getting wider. The political and social dynamics are also working toward disintegration. Public opinion as expressed in recent election results is increasingly opposed to austerity and this trend is likely to grow until the policy is reversed. So something has to give.

In my judgment the authorities have a three months’ window during which they could still correct their mistakes and reverse the current trends. BY THE AUTHORITIES I MEAN MAINLY THE GERMAN GOVERNMENT AND THE BUNDESBANK because in a crisis the creditors are in the driver’s seat and nothing can be done without German support.

PA: Europe is so organized that one country can block everything if so determined. However, even Thatcher’s Britain never did this. That Germany is thus cornering Europe, on the first real threat that European integration faces in 65 years, is astounding, considering history.

  Soros: I expect that the Greek public will be sufficiently frightened by the prospect of expulsion from the European Union that it will give a narrow majority of seats to a coalition that is ready to abide by the current agreement. But no government can meet the conditions so that the Greek crisis is liable to come to a climax in the fall. By that time the German economy will also be weakening so that Chancellor Merkel will find it even more difficult than today to persuade the German public to accept any additional European responsibilities. That is what creates a three months’ window.

Correcting the mistakes and reversing the trend would require some extraordinary policy measures to bring conditions back closer to normal, and bring relief to the financial markets and the banking system. These measures must, however, conform to the existing treaties. The treaties could then be revised in a calmer atmosphere so that the current imbalances will not recur. It is difficult but not impossible to design some extraordinary measures that would meet these tough requirements. They would have to tackle simultaneously the banking problem and the problem of excessive government debt, because these problems are interlinked. Addressing one without the other, as in the past, will not work.

Banks need a European deposit insurance scheme in order to stem the capital flight. They also need direct financing by the European Stability Mechanism (ESM) which has to go hand-in-hand with eurozone-wide supervision and regulation. The heavily indebted countries need relief on their financing costs. There are various ways to provide it but they all need the active support of the Bundesbank and the German government.

PA: Even the famous anti-European magazine “The Economist” said as much about all the preceding.

By the way, there is more than 1.1 trillion dollars ready to help (before leverage), allowed by existing treaties. However, let’s notice that, in spite of funds being at the ready, and dedicated for Greece’s research and high education, they have not been disbursed for two years. So, it’s not because the money is here, that Germany will allow to use it. Is Germany deliberately trying to sabotage Europe?

  Soros: That is where the blockage is [Germany]. The authorities are working feverishly to come up with a set of proposals in time for the European summit at the end of this month. Based on the current newspaper reports the measures they will propose will cover all the bases I mentioned but they will offer only the minimum on which the various parties can agree while what is needed is a convincing commitment to reverse the trend. That means the measures will again offer some temporary relief but the trends will continue. But we are at an inflection point.  After the expiration of the three months’ window the markets will continue to demand more but the authorities will not be able to meet their demands.

It is impossible to predict the eventual outcome. As mentioned before, the gradual reordering of the financial system along national lines could make an orderly breakup of the euro possible in a few years’ time and, if it were not for the social and political dynamics, one could imagine a common market without a common currency. But the trends are clearly non-linear and an earlier breakup is bound to be disorderly. It would almost certainly lead to a collapse of the Schengen Treaty, the common market, and the European Union itself. (It should be remembered that there is an exit mechanism for the European Union but not for the euro.) Unenforceable claims and unsettled grievances would leave Europe worse off than it was at the outset when the project of a united Europe was conceived.

PA: After so much insanity deployed and allowed to rampage, the British and French military budgets will also have to be cranked up… To insure that further insanity is contained, looking forward, all the more since, as in the 1920s and 1930s, Germany is flirting with the dictators of Russia.

  Soros: But the likelihood is that the euro will survive because A BREAKUP WOULD BE DEVASTATING NOT ONLY FOR THE PERIPHERY BUT ALSO FOR GERMANY.

PA: However, Hitler started a war, just so that he could lose, as Salvador Dali pointed out. A country with a culture so idiotic and criminal that it could develop Nazism, over several generations, as the great philosopher Nietzsche pointed out at the outset, is perfectly capable to keep on acting dramatically against its own interests, just in the hope of punishing everybody.

Punishing everybody, that’s what Germany did in 1914, and 1939, launching wars it had no moral right, nor reason, to wage, and a quasi zero probability of winning without enormous devastation to itself.

Maybe Germans like so much to be the bad guys and to lose, they want an encore?

  Soros: It would leave Germany with large unenforceable claims against the periphery countries. The Bundesbank alone will have over a trillion euros of claims arising out of Target2 by the end of this year, in addition to all the intergovernmental obligations. And a return to the Deutschemark would likely price Germany out of its export markets – not to mention the political consequences. So Germany is likely to do what is necessary to preserve the euro – but nothing more. That would result in a eurozone dominated by Germany in which the divergence between the creditor and debtor countries would continue to widen and the periphery would turn into permanently depressed areas in need of constant transfer of payments. That would turn the European Union into something very different from what it was when it was a “fantastic object” that fired peoples imagination. It would be a German empire with the periphery as the hinterland.

PA: Soros is 100% wrong here. There will be no German empire. Germany is completely delusional and delirious at this point. German domination of Europe will not happen, because German culture is on its way out, whereas French culture is on its way up.

France rests on universalism, Germany on tribalism. Just to get the workers it needs, Germany is forced to draft non Germans into tribal Germany.

Let me explain more: in 1940, France had less than 40 million inhabitants, and Germany more than 80 millions. Nowadays, France has 66 millions, and her population augments by 350,000/year, internally (no immigration, thanks to the ferocious and ungrateful Sarkozy, now eliminated). These 350,000 new French a year are real French of fangs and claws, not the imported kind.

Whereas, even with significant immigration, the German population is decreasing. A fiortiori, the part of Germany of genuine German culture, so to speak.

Already now there are 30% more young French people than young German people (and, as I hinted, many of the latter are not really of issued from German culture). Merkel herself had no children. Her nasty cultural disposition will not be passed to her children.

German median age is 5 years older than the French (although the French live two years longer).

Verily, part of the senile reaction of Germany to the Euro crisis is directly imputable to Germany’s aging and scared behavior.

  Soros: I believe most of us would find that objectionable but I have a great deal of sympathy with Germany in its present predicament. The German public cannot understand why a policy of structural reforms and fiscal austerity that worked for Germany a decade ago will not work Europe today.

PA: Soros is right, “most of us would find” that sympathy for Germany should be limited. In some ways Germany is a plutocracy led by rich Mittelstand owners. I know some. Those mini plutocrats are the kings and queens of Germany. They work the little people hard, while scaring them with destitution. Those who know history will be reminded of the old landed aristocracy, especially of the Prussian type, which was a major, probably the major factor, in the rise of German fascism and racism (craftily, their tool, Hitler, electorally campaigned against them)

There is no minimum hourly wage in Germany. The states force some of the poorest people to work for one Euro an hour.

  Soros: Germany then could enjoy an export led recovery but the eurozone today is caught in a deflationary debt trap. The German public does not see any deflation at home; on the contrary, wages are rising and there are vacancies for skilled jobs which are eagerly snapped up by immigrants from other European countries. Reluctance to invest abroad and the influx of flight capital are fueling a real estate boom. Exports may be slowing but employment is still rising. In these circumstances it would require an extraordinary effort by the German government to convince the German public to embrace the extraordinary measures that would be necessary to reverse the current trend. And they have only a three months’ window in which to do it.

We need to do whatever we can to convince Germany to show leadership and preserve the European Union as the fantastic object that it used to be. The future of Europe depends on it.

PA: The future of peace, too. To believe that a fractious Europe, after such a stab in the back, the deliberate destruction of the European Union by Germany, would stay long at peace, is delusional. In any case, socialist France has already constituted a vast coalition, and, differently from 1939, Spain (conservative), Italy (conservative), and the USA (more to the right than any European country) are in it. Even Britain is scared out of its wits that German driven selfishness will drag it further down the abyss.

So what are German officials thinking of? (Besides the desire to self destroy?) Well, the siren song of the ex-KGB officer, Putin, is obvious in the distance. Putin is trying to seduce Germany, which gets already all its gas from there (more than 22% of total German energy usage). The mutual seduction between Germany and Russia in the 1920s and 1930s had a deplorable effect on both, a mutual feedback loop of brutish behavior.

Brutish behavior is what we see today when Bundesbank officials talk as if they ruled Greece. They don’t. What is happening in Greece, as Soros said, is more the fault of the creditor countries than Greece’s. The aid programs to Greece have been, truly, mostly aid programs to non Greek banks which financed their friends in Greece (often plutocrats they had dirty deals with).

The arrogant, offensive and injurious attitude of so many German officials shows that those who did not learn humility from history cannot be trusted.

So are we back in the 1920s and 1930s? Is the collaboration between Germany and Wall $treet based plutocracy back on the front burner? (It sure sounds that way; major Wall $treet banks, such as JP Morgan, have come out with astounding pieces of propaganda, as a reader kindly informed me)

Are we back in the 1920s and 1930s? … When Germany was secretly plotting, and training with Stalinist Russia? That blossomed in the formal alliance in 1939, of the USSR and Nazi Germany, in a vain attempt to block France’s thirst for justice.

So is Merkel working for the Putin, that is for the KGB, or Goldman Sachs and its ilk? Both maybe? Like Hitler, in the end, rather ironically, did? (The Fuehrer basically said so himself in his political testament…)

There are very good reasons to suspect all these schemes, and they will be further divulgated soon. It would be all very funny, if it were not so disconcerting.

***

Patrice Ayme

Sorting Out Soros.

June 5, 2012

A FEW TRUTHS FROM AN OLD PLUTOCRAT:

(With A Bit of Dissemblance Too.)

***

Abstract: George Soros, the major plutocrat, made Remarks at the Festival of Economics, Trento Italy, June 02, 2012. A lot of what he said is pretty good.

Soros eschews the deeper things such as: the divulgation of the injustice of the Fractional Reserve System, what it means to be a state, the Plutocratic effect, the Will To Evil, etc,. which are all major constituents of the deeper fundaments of the present crisis.

And of course, Soros made a billion dollars pushing Britain out of the European Monetary Union, so its compassion vis a vis Europe has got to remind us of that of the fox for the hens he killed. Indeed, the EMU would be stronger, with Britain in, as would have happened if no hedge fund manager such as Soros had ever existed. 

But still, his work is worth commenting upon, it’s much deeper than the usual platitudes.

***

A note on Soros: After living under Nazi occupation, and escaping those German monsters by the skin of his teeth, as a Hungarian Jewish child, Soros went to London to study economics (and the philosophy of Popper). Soros made a career as a major financial manipulator, first in the company of Jim Rogers. He was operator of the “Quantum Fund”, one of the earliest, largest and most successful hedge funds.

Soros played a very positive role in the opening of the Iron Curtain, financing Hungarian students.

Soros often talks as if nothing mattered more for him than being viewed as philosopher. He is obsessed by “reflexivity“, a notion he used in his trading. Reflexivity is nothing new for those who reflect reflexively. But Soros is right to insist on its importance. What he means by this, he explains below.

Finance and economics are riddled with non linear feedback loop, entangling subject and object, which often dominate, causing catastrophes. The same is true in politics, sociology, cultures… Such is the human, all too human factor.

As the present German loss of control about Europe demonstrates. Is that one of these famous Hitler’s rages again?

Below I put Soros in italics, my comments are in regular script. I took the freedom of underlining passages of Soros which I find particularly interesting. That generally indicates approbation (and reprobation will be duly expressed, if needed). I cut out one section of Soros’ discourse, for lack of punch. All the rest is there. Let Soros talk:

***

Soros: Ever since the Crash of 2008 there has been a widespread recognition, both among economists and the general public, that economic theory has failed. But there is no consensus on the causes and the extent of that failure.

I believe that the failure is more profound than generally recognized. It goes back to the foundations of economic theory. Economics tried to model itself on Newtonian physics. It sought to establish universally and timelessly valid laws governing reality. But economics is a social science and there is a fundamental difference between the natural and social sciences. Social phenomena have thinking participants who base their decisions on imperfect knowledge. That is what economic theory has tried to ignore.

Scientific method needs an independent criterion, by which the truth or validity of its theories can be judged. Natural phenomena constitute such a criterion; social phenomena do not. That is because natural phenomena consist of facts that unfold independently of any statements that relate to them. The facts then serve as objective evidence by which the validity of scientific theories can be judged. That has enabled natural science to produce amazing results.

PA: By the way, that is exactly what fails in Quantum physics: in Quantum physics, facts unfold in dependence with any statements that relate to them. Because the observing act affects the observed. That was Bohr’s great point, and it is the main difficulty with making a Quantum computer.

The Quantum computer can be made, as it is the way the natural world works. But to realize one, in full, I believe, our understanding of Quantum physics will have to progress.

Somehow, Quantum physics replaces local physics, made of points, by the integrated whole. In other words something where all participants participate, be they geometry, potentials, initial conditions, etc. That integrated whole approach is the engine at the heart of biology, and it is the one that allows to circumvent the Second Law of Thermodynamics (you will have heard it here first!). OK, back to Soros:

Soros: Social events, by contrast, have thinking participants who have a will of their own.  They are not detached observers but engaged decision makers whose decisions greatly influence the course of events. Therefore the events do not constitute an independent criterion by which participants can decide whether their views are valid. In the absence of an independent criterion people have to base their decisions not on knowledge but on an inherently biased and to greater or lesser extent distorted interpretation of reality. Their lack of perfect knowledge or fallibility introduces an element of indeterminacy into the course of events that is absent when the events relate to the behavior of inanimate objects. The resulting uncertainty hinders the social sciences in producing laws similar to Newton’s physics.

PA: Quantum computer, here we come!

Soros: Economics, which became the most influential of the social sciences, sought to remove this handicap by taking an axiomatic approach similar to Euclid’s geometry. But Euclid’s axioms closely resembled reality while the theory of rational expectations and the efficient market hypothesis became far removed from it. Up to a point the axiomatic approach worked. For instance, the theory of perfect competition postulated perfect knowledge. But the postulate worked only as long as it was applied to the exchange of physical goods. When it came to production, as distinct from exchange, or to the use of money and credit, the postulate became untenable because the participants’ decisions involved the future and the future cannot be known until it has actually occurred.

PA: By the way, Euclidean, and Non-Euclidean geometries, are COMMUTATIVE geometries. Instead…

Quantum physics uses NON COMMUTATIVE geometry (what it consists of exactly is a matter of debate among mathematicians). Basically, the order of events matter, just as the order of rotations in space matter, or just as the order in which what happens to social participants matter.

Soros: I am not well qualified to criticize the theory of rational expectations and the efficient market hypothesis because as a market participant I considered them so unrealistic that I never bothered to study them. That is an indictment in itself but I shall leave a detailed critique of these theories to others.

Instead, I should like to put before you a radically different approach to financial markets. It was inspired by Karl Popper who taught me that people’s interpretation of reality never quite corresponds to reality itself. This led me to study the relationship between the two. I found a two-way connection between the participants’ thinking and the situations in which they participate. On the one hand people seek to understand the situation; that is the cognitive function. On the other, they seek to make an impact on the situation; I call that the causative or manipulative function. The two functions connect the thinking agents and the situations in which they participate in opposite directions. In the cognitive function the situation is supposed to determine the participants’ views; in the causative function the participants’ views are supposed to determine the outcome. When both functions are at work at the same time they interfere with each other. The two functions form a circular relationship or feedback loop. I call that feedback loop reflexivity. In a reflexive situation the participants’ views cannot correspond to reality because reality is not something independently given; it is contingent on the participants’ views and decisions. The decisions, in turn, cannot be based on knowledge alone; they must contain some bias or guess work about the future because the future is contingent on the participants’ decisions.

[...] Bubbles are usually asymmetric in shape: booms develop slowly but the bust tends to be sudden and devastating. That is due to the use of leverage: price declines precipitate the forced liquidation of leveraged positions.

PA: Busts are also caused by panic. An animal generally approaches a threat with more caution that it puts in flight. Panic insures survival, the most important instinct, most of the time. Whereas greed is a luxury, and, if there is an instinct for it, it’s much less developed. Carnivores have been known to kill, for killing’s sake (a form of greed). But if they experience the slightest fear, they won’t engage in it, and will spend lots of energy putting lots of distance between them and the threat.

Soros: Well-formed financial bubbles always follow this pattern but the magnitude and duration of each phase is unpredictable. Moreover the process can be aborted at any stage so that well-formed financial bubbles occur rather infrequently.

At any moment of time there are myriads of feedback loops at work, some of which are positive, others negative. They interact with each other, producing the irregular price patterns that prevail most of the time; but on the rare occasions that bubbles develop to their full potential they tend to overshadow all other influences.

According to my theory financial markets may just as soon produce bubbles as tend toward equilibrium. Since bubbles disrupt financial markets, history has been punctuated by financial crises. Each crisis provoked a regulatory response. That is how central banking and financial regulations have evolved, in step with the markets themselves. Bubbles occur only intermittently but the interplay between markets and regulators is ongoing. Since both market participants and regulators act on the basis of imperfect knowledge the interplay between them is reflexive. Moreover reflexivity and fallibility are not confined to the financial markets; they also characterize other spheres of social life, particularly politics. Indeed, in light of the ongoing interaction between markets and regulators it is quite misleading to study financial markets in isolation. Behind the invisible hand of the market lies the visible hand of politics. Instead of pursuing timeless laws and models we ought to study events in their time bound context.

My interpretation of financial markets differs from the prevailing paradigm in many ways. I emphasize the role of misunderstandings and misconceptions in shaping the course of history. And I treat bubbles as largely unpredictable. The direction and its eventual reversal are predictable; the magnitude and duration of the various phases is not. I contend that taking fallibility as the starting point makes my conceptual framework more realistic. But at a price: the idea that laws or models of universal validity can predict the future must be abandoned.

Until recently, my interpretation of financial markets was either ignored or dismissed by academic economists. All this has changed since the crash of 2008. Reflexivity became recognized but, with the exception of Imperfect Knowledge Economics, the foundations of economic theory have not been subjected to the profound rethinking that I consider necessary. Reflexivity has been accommodated by speaking of multiple equilibria instead of a single one. But that is not enough. The fallibility of market participants, regulators, and economists must also be recognized.  A truly dynamic situation cannot be understood by studying multiple equilibria.  We need to study the process of change.

The euro crisis is particularly instructive in this regard. It demonstrates the role of misconceptions and a lack of understanding in shaping the course of history. The authorities didn’t understand the nature of the euro crisis; they thought it is a fiscal problem while it is more of a banking problem and a problem of competitiveness.

[To be continued in the next essay, "Boosting Soros On Europe"].

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Patrice Ayme

How Wall Street Occupies Minds

December 4, 2011

OCCUPY WALL STREET, OR WALL STREET WILL OCCUPY YOU:

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Abstract: Obama did not do much in his first three years, perhaps mostly because the left has no coherent, or even cogent, discourse. Not to say worse. An example arises with the debt crisis. In particular, with the attitude to Europe.

Wall Street seems to have given talking points: 1) Call the debt crisis a “Euro Crisis”. 2) Faced by failure of credit… propose only the lending of more money. (See FDR below.) And those talking points, the decerebrated, or corrupt left repeats at nauseam (so it’s more than a bit unfair to accuse Obambi, standing in the headlights of history).

The most well known example of completely confused pseudo left thinking emanates from the honorable Paul Krugman, Nobel and luminary from Princeton perched on the New York Times and all over TV and the world all the time (Krugman was just revealing that he was at the G30, now presided by his friend Trichet, who just stepped down as ECB chair; Krugman has much accused Trichet of being a deflating idiot, even hours before the G30 meeting, so some tensity among the suits may have been in order).

Before we can chop off the invisible hand of the conspirators of international financial piracy, we have to see where it lurks around the cookie jar (that’s us). As this essay will reveal, the “Euro Crisis” is one more Wall Street crisis, disguised this time as a Euro crisis. Everything bad used to be France’s fault, but now the Fourth Reich looms in the distance: the Bundesbank, armed with Rafale stealth bombers.

Krugman ought to know this, that it is truly another Wall Street crisis in Euro disguise. But he wants to save what he calls the “greatest city in the world” (where he was born, and lives, New York, you know, the place where Wall Street makes sure that IMF directors are treated as the worst criminals, once one has stolen their secure electronics). As Krugman professes not to read the Wall Street Journal anymore, we will condemn him to read it. And learn.

So according to Wall Street and presidential parrots, this time Germans, French and the like are asked to pay (that is, extent credit)… For Manhattan’s high rollers.  Why? Because not only it’s better when others pay, but the USA is running out of money, not to say that the American middle class is showing signs of impatience with the gruesome occupation of the country’s resources by Pluto’s forces.

However Angela Merkel was trained for, and practiced, research in hard science. She is going to go for the facts, and for the hard solutions, as president Roosevelt did, long before she was born (FDR had been trained as de facto head of the U.S. Navy in WWI, also a hard science!)

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December 2011. The official report of the World Meteorological Organization is out. It is catastrophic. 13 of the warmest years in the last 15 years. Including the warmest, 2010, and the second warmest, 1998. We have got close to the point where rising temperatures in the Arctic will provoke massive release of so far frozen CO2 and CH4 (methane).

And what can we read in official editorial after official editorial of the Wall Street Journal? That believing in Anthropogenic Greenhouse Warming (AGW) was a religion of the past. It is important that New Yorkers think in a way compatible with their sponsors’ riches.

Wall Street has not yet been occupied by the ocean, human or aquatic, as it deserves. Yet. Although it is sure to become a polder. Meanwhile, it occupies the minds of its victims.

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WHY THE AMERICAN HYSTERIA ABOUT THE EURO?

I monitor a lot of international press. It is striking that the British, and even more the American media, are more hysterical about the “Euro Crisis” than the media of the Eurozone itself. It seems that the French press has generally much more important things to deal with, such as Syria (France is sending military equipment to the Syrian rebellion, now that the number of the assassinated is officially above 4,000).

Why is France so keen to take out one dictatorship after the other? Well, Europa needs democratic Lebensraum, as Hitler did not say. One should not forget that the USSR Russia just north, with not even two-third of French GDP, takes itself for a nuclear hyper power, when, in truth, it’s just a plutocracy (the people leading Russia, Gorbachev said on Swiss TV are not just plutocrats, but have dozens of billions stashed in places such as Switzerland).

OK, the USA is also a plutocracy, and people vote there, just as in Russia (which has its parliamentary elections on December 4). How does Putin control Russia? How does wall Street control the USA? Well, simply by controlling what people know, think, and feel.

The New York Times and the Wall Street Journal, in particular have led the hysteria, editorial after editorial, urging the European Central Bank to indulge in “Quantitative Easing”. The NYT even mobilized its philosophy editor to write an absurdly uninformed article about the ineptitude of the Europeans, and urge them to Quantitatively Ease. See: Opinionator | The Stone: Euro Blind (November 21, 2011).

Euro Blind“, really? Or is it you, Mr. paid-to-”philosophize” who is Dollar Obsessed? An absurdly ignorant, and arrogant, professional philosopher, urges Europeans to have the ECB print lots of money, and give it to the profligate banksters. Hey, does not New York thrive from banking, thus the New York Times, thus its “philosophy” editors? Does not the love of money primes the love of wisdom? (As we will show below, it’s complete self interest because it turns out it’s all about New York banks, indeed!)

Obama pointed out that the Europeans “had not done the work we did here in the last few years“. Namely to give all the American public money one could find to the banks, without anything in exchange. That is quite a “work“, indeed. I give to my friends and financiers, therefore I work, says the high class escort.

Because that is what was done, and not done, in the USA: giving public money to one’s sponsors and friends, without any quid pro quo, whatsoever. That is neither socialist nor capitalistic, just kleptocratic and conspiratorial. In many an empire or state of the past, such plotting would have been viewed as high treason. But we are apparently in a new paradigm. So it always is: a new paradigm, until the heads roll, as they did before. Abusing People works, until they have had enough, rise, and destroy all in the way.

Now Obama would like Europeans to do the same in the EU as what was done under Bush and Obama in the USA. A problem, of course, is that the European Union is made of an union of democracies. And that Union has put in its constitution that the central bank is not like the central bank of the USA, as Merkel pointed out. The directors of the Fed of the USA are mostly private bankers from the realm’s largest banks. For example Jamie Dimon, head of Morgan-Chase, and a love boy of the government of the USA (which made him offerings in the past, such as Bear-Sterns), sits on the Fed. A proud fox in the hen house. Obama used to call him his friend: could not hurt, until it did!

In the USA, the rescue package for banks, shadow banks, insurance companies and hedge funds was decided by a handful of employees of the plutocracy, such as Paulson and Geithner. There was no democratic consultation whatsoever (no referendum, no vote in Congress). So  much for “Democracy In America” Tocqueville was so toqué  about.

By contrast, the 17 Eurozone countries all democratically voted on the rescue package for Greece, Germany and France first. Slovakia resisted for a while, pointing out Greece was much richer, much lazier and more corrupt. Everybody listened to these Slovak objections carefully, and no doubt they have been incorporated in the thinking of all and the stiffening of the Franco-German spine about what to do next. Even the Greeks had to listen to what the Slovaks said (as the Slovaks could have blocked the rescue and default package). So the Greeks learn about themselves, and the error of their ways.

Then, after the government fell, the Slovak Parliament voted for rescuing Hellas. But, fortunately for Hellas, it is been rescued under some conditions. Hélas, those may not be strict enough: why do the richest in Greece pay no taxes? Why do Greek MPs get large brand new Mercedes sedans, on the public dime? (And now that mean on the dime of Slovaks, among others!)

But let’s go back to the American hysteria about the “euro”. What’s behind it? Wall Street, of course, as I have tried to explain forever. Well I need allies. I find them where I can. Nothing like going into the lion’s den to find out about the lion. Wall Street Journal, December 2, 2011:

So Who Is Too Big to Fail Now?

Here’s an irony Morgan Stanley CEO James Gorman can probably live without.

In early October, Morgan came under extreme pressure, largely due to questions about the firm’s exposure to French banks. Although that has since eased, especially in the wake of Wednesday’s central-bank-induced markets rally, the cost of insuring against default by Morgan is still elevated—and remains higher than the cost of protection on big French banks themselves.

 Morgan Stanley’s cost of insuring against default is higher than the cost of protection on big French banks, Heard on the Street columnist David Reilly reports on Markets Hub.

It cost about $446,000 Thursday to insure $10 million of Morgan debt, according to Markit. This compared with $335,000 for Société Générale. On average, Morgan’s CDS cost is about $154,000 higher than that of the big three French banks—BNP Paribas, Crédit Agricole and SocGen—more than three times the average premium in 2011.

In this, Morgan isn’t alone. The cost of insuring against default at Goldman Sachs is also higher than that of the French banks. That in part may reflect that the two U.S. firms are brokers, rather than more diversified commercial banks. But credit-default swaps for Bank of America are also more expensive, while the cost of protection for Citigroup is almost equal to that of BNP.

That is somewhat curious given French banks have more exposure to France and troubled euro-zone countries.”

And the Wall Street Journal to argue that the big French banks are too big to fail, whereas not so for the big American banks:

“…the higher cost of CDS for the U.S. brokers hints that markets may no longer think they are firmly in the too-big-to-fail club. Although they were essentially bailed out in 2008, both firms today face a far different, and more hostile, political climate, stoked by both the Tea Party and Occupy Wall Street.

Additionally, the Dodd-Frank Act has made it more difficult for the U.S. government to inject capital into struggling firms. For their part, regulators are focused on mechanisms to allow for the orderly wind-down of a troubled institution.

Granted, hedge funds and other traders may feel a greater need to hedge their business links with Goldman and Morgan—meaning more demand for CDS. BofA, meanwhile, is contending with a raft of U.S. legal issues. And the French banks have higher credit ratings. So, too, does France, which is still triple-A, unlike the U.S.”

So here it is, from Murdoch’s Wall Street Journal. Murdoch, not Marx.

The USA money machine, the USA plutocracy is on the ropes. Why? Because both the Tea Party people (by opposition to their sponsors, such as the Koch brothers, super billionaire heirs much vested in traditional polluting industries), and Occupy Wall Street have understood that the government of the USA is little more than a tool of the plutocracy.

As a European official pointed out, the Eurozone has spent only so far 2% of its GDP supporting the financial pirates banks, whereas Britain and the USA spent 13% of GDP doing so. So the Eurozone has actually still a lot of firepower left.

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IS KRUGMAN PAID TO GUSH ABSURDITIES?

I like Krugman, because, not only he is very intelligent, but, when called to order, he can think openly and constructively. However his primal “Keynesianism” (throw money to banks, and everything will turn good) has been invaded by Europhobia (not to say Germanophobia). Here he goes in “Killing The Euro?” (December 2, 2011):

“Can the euro be saved? Not long ago we were told that the worst possible outcome was a Greek default. Now a much wider disaster seems all too likely.

True, market pressure lifted a bit on Wednesday after central banks made a splashy announcement about expanded credit lines (which will, in fact, make hardly any real difference). But even optimists now see Europe as headed for recession, while pessimists warn that the euro may become the epicenter of another global financial crisis.

How did things go so wrong? The answer you hear all the time is that the euro crisis was caused by fiscal irresponsibility. Turn on your TV and you’re very likely to find some pundit declaring that if America doesn’t slash spending we’ll end up like Greece. Greeeeeece!

But the truth is nearly the opposite. Although Europe’s leaders continue to insist that the problem is too much spending in debtor nations, the real problem is too little spending in Europe as a whole. And their efforts to fix matters by demanding ever harsher austerity have played a major role in making the situation worse.”

OK, I will let pass the usual confusion Krugman is affected by between a currency, the euro, and a banking crisis doubled with a sovereign and private debt crisis. If anything, the euro is too strong, not too weak!

That is what Krugman claims: “Too little spending in Europe as a wholeharsher austerity have played a major role in making the situation worse.

One can use president Roosevelt to answer Krugman. Roosevelt used to make fun of the speculators and “money changers” who proposed to borrow more after borrowing too much. How does the honorable Paul Krugman’s proposal differ from that?
Well, it does not.
FDR came with an investment plan. Then he spent. Oh, president FDR had started by closing the banks, whereas most of what Krugman has proposed is to do the exact opposite, send more money to the same corrupt banks, no conditions imposed, a la Geithner (“Quantitative easing”).

Obama tini tiny real stimulus was drowned in a much larger pseudo stimulus. The USA need a real stimulus, but no detailed proposal exist. I have long ago proposed to mimic what advanced European countries do (and what China has tried to duplicate on an emergency, nearly comical basis): augment the energetic efficiency of the economy (this includes weatherization, micro energy generation, high speed trains, etc.)

Here is (part of) what our hero (just for this) F. D. Roosevelt said in his First Inaugural Address:

Nature still offers her bounty and human efforts have multiplied it. Plenty is at our doorstep, but a generous use of it languishes in the very sight of the supply.

Primarily this is because the rulers of the exchange of mankind’s goods have failed, through their own stubbornness and their own incompetence, have admitted their failure, and abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence.

They know only the rules of a generation of self-seekers. They have no vision, and when there is no vision the people perish. The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.”

“Faced by failure of credit they have proposed only the lending of more money?” This is exactly what Quantitative Easing is all about. How does that differ from what Krugman, the voice of the economic left in the USA, keeps on proposing?

Another point which thoroughly escapes Krugman: “harsher austerity have played a major role in making the situation worse.” True, to a great extent, if one ignores international airports built in the middle of nowhere in Spain, and the like.

Everybody in Europe knows that Germany, after re-unification, applied ferocious austerity, until she strayed, hand in hand with France, and went above the 3% deficit limit imposed by the Eurozone rule (as Merkel observed loudly).

German austerity was shared by all in German society, including the plutocratic class. Having union representatives on the boards of company helped. The pressure was relentless, and lasted two decades (and counting!) Two decades in which German real estate prices went down ever more, slowly, and steadily (that means German workers could afford better housing, not the cheap thrill of owning enormous debts).

And it is possible to compare: France played unfortunate partner in a doubly blind experiment. As Germany plunged in austerity, re-industrializing, teaching her workers to become more knowledgeable, and thus efficient, instead of just firing them, France splurged, introducing the “35 hour work week“, which was a distraction catastrophic to French GDP, while de-industrializing according to the hallucinogenic doctrine of the New Age familiar to Americans (industry is passé). French real estate bubbled up, just short of the extravagant London propelled bubble in Britain. Parisians cannot afford Paris.

Meanwhile the German state(s) extracted concessions from German companies (various advantages, as long as they invested in Germany). Also Germany had a massive renewable energy program (in spite of being as north as Canada, Germany is the world number one solar power, and now a German dominated firm, Desert Tech, will install 5,000 megawatt solar south of the Atlas mountains in Morocco).

Last but not least: Germany played several times with massive monetary expansion in the past. In the early 1920s, under Schacht (a corrupt banker with a 1899 CE PhD who was JP Morgan’s friend and creature), Germany tried to avoid paying reparations to France, Britain and Belgium which its army had deliberately devastated, by igniting  massive inflation. That turned out rather self defeating.

The following is completely obvious, and even Niall Ferguson has presented the argument (in the Pity of War, 1998). German inflation in the 1920s was not caused by reparations, but rather was a deliberate political decision on the part of the German government (Schacht, who then headed the nominally independent central bank) to employ it to extinguish World War I debts and reparations.

In the 1930s Nazi Germany opted for a massive spending as it scrambled to make war, not love. The same Schacht as before, the creature of unoccupied Wall Street, told his boss Hitler that would not do. Schacht had himself, with his Wall Street friends, had made it so that Hitler became Kanzler, so his clout with Hitler was enormous.

Hitler told Schacht not to worry: there was plenty of money to be found among his opponents, Jews, and various countries (cooperative, like the USA, Sweden, or Switzerland, or uncooperative countries that would be pillaged). So there is a direct relationship between massive deficit spending, and “The Holocaust”. Germans remember all this, even if they do not masterly sing about it on all rooftops of Nuremberg.

Meanwhile France opted for austerity and proper social policies (now copied worldwide, such as mandatorily paid vacations). Too much austerity by half, as France ought to have gone to war to save the Spanish republic. But then of course, the American propaganda machine from Wall Street, would have accused France to be blood thirsty and to have broken its wonderful Third Reich toy!

Germany, and France, have had the motivation to meditate all this carefully. They deduce that blindly giving more money to financiers, the ones who caused the crisis, will not work, just as it did not work in the 1920s and 1930s.

France, and Britain, also remember very well that they made a huge blunder to have not gone to war against dictators early on in the 1930s. Hence their tough line in Libya, Syria, Iran… Keeping in mind that Afghanistan is a completely different thing, just indulged in to humor the unreasonable Americans: not only did the USA attack first, but Karzai is a Sharia wielding corrupt strongman. OK, maybe strong is not the right word.

In the last few days, Iranian “students” attacked the British embassy. The embassies of the Netherlands, Germany, France  have been discreetly evacuated…

Live, learn, and act accordingly. May we now restore the temple of civilization to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

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Patrice Ayme

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Coddling The Super-Rich Is Deleterious

August 20, 2011

PLUTOCRACY IS A DISEASE, THE GOVERNMENT A CONDUCTOR, THE ECONOMY AN ORCHESTRA. BUT ONE CAN’T CONDUCT A DISEASE.

Abstract: The essence of the socio-economic crisis of the West is the rise of plutocracy. It is enabled by a number of mechanisms that the People have not elucidated, hence the passivity with which they accept further abuse. Many exploitative pathways have to do with the nature of money, how it is created, and that money represents power.

By throwing money to the plutocrats, under the pretext that, if enriched further, they will revive the economy, central reserve banks are feeding the fire consuming civilization.

Thus governor Perry of Texas is not crazy when he calls the central bank chair a traitor: throwing money at the richest, and most culprit, is what Bernanke has been doing. The ever greater amount of riches of the richest means that the rest of the People are increasingly not living in democracy, as they are increasingly deprived of money, thus power.

I explore various aspects of the crisis rarely dwelled upon, in a question and answer session.

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Question: Don Peck in the Atlantic has written a rather tame, not to say lame, review of the symptoms of the crisis in Can The Middle Class Be Saved? As he puts it: “The Great Recession has accelerated the hollowing-out of the American middle class. And it has illuminated the widening divide between most of America and the super-rich. Both developments herald grave consequences. Here is how we can bridge the gap between us.”

A defeated Peck concludes rather meekly that: “Perhaps plutonomy, in the 21st century, will prove stable over the long run. But few Americans, no matter their class, will be eager for that outcome.”

Does your insistence upon evil as a force which gives many people meaning, unveil a deeper layer of understanding of the economic crisis?

Answer: How we can bridge the gap between “us“? Us? How charming, holistic, new age, and wise in the chick sense of the term. There is no “us” there. The world is sick with plutocracy, such is the essence of the crisis. Plutocracy causes the increasing financial, economic, educational pauperization of most of the most developed part of the world.

“Plutonomy” is an arrogant concept: it means managing Satan. This new concept is a further outrageous twist on Faust. It was coined by bankers at Citigroup who made the self serving, erroneous, and grotesque analysis in 2005, that The earth is being held up by the muscular arms of its entrepreneur-plutocrats. Apparently, those new Atlases did not get to the word “plutocracy” in the dictionary.

However, Obama has been operating according to their book of lies. Although, most of the time, he covers himself up, with the opposite discourse. Since the crisis has started, most of the effort has consisted in supporting the “entrepreneur-plutocrats” with public money, under that exact theory, that they “hold the earth up with their muscular arms”. 

Question: How do the plutocrats do whatever they are doing to make leaders obey their wishes?

Answer: Very simple: plutocrats monopolize most of the money and capital. That give them all the power they need to make most people think, feel, and act according to their desiderata.

Not only have the plutocrats captured higher education ever more, the more sensitive it has been to private financing, but they even have tweaked the emotional mien of People. That is why Americans are not revolting.

In recent years, being “cool” has become the most valued behavior in the USA. Obama was pretty much elected on that criterion. If one comes to think of it, cool” means that one is indifferent to whatever is going on, only guided by one’s inner compass of self “navigation” towards self advantage in one’s self obsessing world. Naturally “no drama Obama” has been the top model of coolness and self obsessed navigation (Obama extols “navigation” as the supreme value a man can have in his imaginary autobiographies).

One can now see that his coolness makes him a strong competitor in the run to worst president ever. His emotions feel fake, and if they are, as they appear to be, the fact that he found impossible to move (“motion”) out (“e”) as needed is fully explained: a man cannot move out on emotions he got from the teleprompter.

Just before Lincoln, an American president tried to encourage slavery, making him the worst president; Obama’s attempt to force Americans to purchase life saving services from private, profit making owners is akin to the same, namely the denial of the basic human right to life, used for profit. I view that monstrosity (which is in the process of being found unconstitutional, as judge after judge knocks it down as such), a direct consequence of Obama’s coolness. Iguanas can’t be in charge of human rights, they are too cool. The Nazis used to consider coolness a top quality, of course.

Besides extolling nihilistic values, such as coolness, as the highest values, the plutocrats have technically made the democratic economy impossible. In their rush to ever more power, the plutocrats have stolen most of the money, leaving not enough to everybody else to operate the economy.

Q: Does not that sound pretty much like the old criticism of Marx and his many French predecessors?

A:  In many ways, the situation is worse now. The capitalists, in Marx’s time needed the workers, now, they don’t.

Q: How come?

A: There are machines and slaves in China, both of which were not factors in Marx’s time. Plus, in Marx’s time, the planet was not going to explode, now it is. The plutocrats are not just exploiting workers nowadays, they are destroying everything.

Q: Are you not abusing the word “Pluto”? Aside from poetry, does it have a technical content?

Satan is a seducer, and he is crafty. He seduces people to act against their best interests. This has been in full view for centuries; see the ancient myth of Faust. So there is a technical psychological content, as I sketched with the reverence for inhuman coolness.

Financially Pluto is a major factor; Pluto lives underground, and can make itself invisible. This is exactly how the banking system works. As the cover article in today’s Murdoch’s Wall Street Journal admits: “Banks around the world are being whipsawed by the fact that much of the bank-funding market is opaque… That forces nervous traders—and even regulators—to piece together a view of a complex, global banking system using threads of data, anecdotal information and even rumors.”

Opacity is one of Satan’s characteristics, allowing it to deploy its abusive schemes, and a quality adverse to democracy. It is central to the exploitation system by plutocracy because People cannot fight what they can’t see, or cannot even conceive. 

Q: Do you have a problem with capital?

A: No. I do not. Capital is as old as the first tools, the first weapons. Property is as old as the first cave. I have a problem with the distribution of capital. I do not share the condemnation of private property made by many philosophers. It is as if they had never heard of cavemen. In the concept of “caveman”, there was a property, the cave. Although I salute these philosophers’ contribution to the slogan of the French republic, Liberté, égalité, fraternité. Which I approve of.

Jean-Jacques Rousseau famously wrote in his attractive style: “The first man who, having enclosed a piece of ground, thought of saying ‘This is mine,’ and found people simple enough to believe him, was the real founder of civil society. From how many crimes, wars, and murders, from how many horrors and misfortunes might not somebody have saved mankind, by pulling up the stakes, or filling up the ditch, and crying to his fellows: Beware of listening to this imposter; you are undone if you once forget that the fruits of the earth belong to us all, and the earth itself to nobody.”

This was also the point of view, claimed by nomadic American hunters, especially when mounted on horses, and talking to the whites. But the Iroquois came out of their mountain redoubts, and exterminated entire Indian nations that the French Jesuits had civilized, and settled on their lands as  peaceful peasants. The Iroquois had never invaded these lands before. That horror and misfortune is outside the explanatory schemes that Rousseau dwelled in. Instead it belongs to the instinct of intellectual domination. The Iroquois wanted to demonstrate they were better thinkers, they had the best system of thought, and there is nothing better to achieve this, than breaking one pacific opponent’s skull in two.

Indian tribes fought each other to death for horses, if not hunting grounds.

Some animals have to be territorial, because, if they were not, the resources they need to exist would be spread too thin, and their species would die. Humankind, which was 2 billion a generation ago, will reach 7 billion within weeks, and may be reminded the hard way that man is, and has to be, highly territorial. Whenever the Earth belongs to everybody, that is nobody in particular, it suffers the tragedy of the commons.

Humanity had always to be territorial, and even racist, in some sense, which has varied, according to specifics. Humanity was de facto  specifist, to use a neologism: all the competitive species, dozens of them, in particular the Australopithecines, were eliminated. To make the Earth in a human garden, deadly enemies next door eating one’s lunch presented no viable option. (Kipling makes specifism the main message of his novel, “the Lion”.)

All of this to say that demonic tendencies are never far below the surface, by necessity of the human condition. One ignores them at all imaginable costs, as Obama is in the process of demonstrating, from the Hindu Kush, to the Potomac.

The Marquis de Sade’s in his 1797 text L’Histoire de Juliette, agreeing for once with his intimate enemy Rousseau, uttered : “theft is only punished because it violates the right of property; but this right is itself nothing in origin but theft. Sade was not up to his usual level of natural objectivity. Nature does not steal, it produces, monsieur Le Marquis. A lion produces territory, to feed itself, just as a fire produces grassland, because it fed itself.

Lodging a protest, a provocation, as he admitted later, French anarchist Pierre-Joseph Proudhon summed up the naïve point of view: Property is theft! (“La propriété, c’est le vol!”) in his 1840 book What is Property? Or, an Inquiry into the Principle of Right and of Government.

To attack the principle of private property is silly. When it got cold, and Homo Neanderthalis wanted to improve his lodgings, he went into the caves, and chased out the gigantic Cave Bears. Enough of sleeping outside for 250,000 years! This happened around 50,000 years ago. Did Neanderthal steal the bears? He did more than that, as intended. The Cave Bears, with no place to call home anymore, went the way of the Indians later, and were exterminated. Civilization could rise only after most of the ferocious beasts had been eliminated (it is thought that, at some point lion like predators were the most abundant species: a lion can survive by eating just rabbits, as wolves do with mice).

It took a lot of work, for Homo erectus to make the first clothes, the first stone weapons (both necessary to conquer the Caucasus, as Erectus did, two million years ago!) And, a fortiori, to make vast swathes of the earth into a garden. Those individuals could be motivated only if they worked pro privo (for the individual). in other words: privately.

Q: So maybe the plutocrats are the new Neanderthals, and common people need to go the way of the Cave Bears!

A: Keep your sarcasm down. The Cave Bears did not go down without a fight. As you could see in London riots (5 dead), the People is having enough of the exploitation by sleek plutocrats such as Cameron, who find everything “disgusting“, but for their own classy predation. All around the world, nations are chafing under plutocracy, from India to England.

Democracy cannot operate if capital is not spread around enough. Capital represents potential power, and democracy basically means people power. If the People has basically no capital, the People has no power, and there cannot be any democracy. Plutocracy and democracy are completely incompatible.

In recent decades, there has been a massive switch of power to fewer and fewer individuals and families in the West. This had some clear consequences: young people are less relatively knowledgeable and passionate than their forebears in the sixties, so they have tolerated more readily the increasing abuse they are subjected to. In the sixties what president Johnson did in Vietnam was intolerable, but, at the same time, he was creating a “Great Society”, spending a lot on the people, and the program was basically extended by Nixon. For example, Nixon created the Environmental Protection Agency, and today’s young republicans want to shut it down. Young people nowadays watch all this with the concern of cows contemplating trains whizzing in the distance.

Q: What causes the present imbalance of capital?

A: Three principal effects concentrate capital ever more: unfair and unsustainable taxation, using the rich to create money, and globalization, aka inverse colonization. All of this under the watchful mind’s eye of plutocracy unchained, whose malevolence has no more bounds than its dissemblance.

In the USA, the foremost process is very simple: the top 400 incomes in the USA pay 17% average tax. It is legal tax evasion, organized by a Congress “coddling the super rich“, as Warren Buffet put it. American politicians coddle the super rich, because they hope they will be rewarded by joining the super rich; see the immensely rich Clintons.

The influential chairman of the House Oversight and Government Reform Committee, republican Darrell Issa, comes complete with as the New York Times puts it: a nonprofit family foundation, which seeks to encourage values like “hard work and selfless philanthropy,” [which] earned millions from stock in DEI, which bears his initials. Mr. Issa’s fortune, in fact, was built on his car alarm company, and to this day it is his deep voice on Viper alarms that warns potential burglars to “please step away from the car.”

In recent months, The New York Times has examined how some lawmakers have championed particular industries, pushing measures to protect and enrich supporters. In Mr. Issa’s case, it is sometimes difficult to separate the business of Congress from the business of Darrell Issa.”

Mr. Issa is worth nearly a billion dollars, and generated a billion dollars in financial trades, just from one Merrill Lynch account. He is from southern California. According to the NYT, he would buy a clinic, and then direct public funds to build a great road going to that clinic, this sort of things. He is in charge of financial ethics, appropriately enough in a plutocracy.

Q: OK, there is great legal corruption in the USA, but that does not explain the crisis in Europe.

A: Indeed, legal corruption is the best way to describe the political and fiscal scene in the USA. Most of these deplorable practices are illegal in Europe.

However a second sort of mechanism exists to make the rich ever richer, and that mechanism exists both in the USA, and in Europe.  It has to do with the public mandate some private individuals are given to create money for everybody, an intrinsically perverse mandate, because nobody has elected those banksters, and they have become much more perverse in recent years. Those crafty ones discovered that the cows were not watching, and they kept most of the money to themselves. 

Q: You are alluding to the fractional reserve system, a notion even economists don’t ever speak about.

A: Well, that’s how money is created. Economists paid by the system are not supposed to demolish the system. But there is something nearly as unhealthy in the non separation of bank and state as in the non separation of church and state.

Q: You quote many causes for the crisis, and I know you have more up your sleeve, can you simplify?

A: As I keep on saying, THE ROOT OF THE CRISIS, WORLDWIDE, IS THE SAME: THE RISE OF PLUTOCRACY. That malevolent dragon has to be pushed back in the subterranean sojourns, where it belongs.

Thatcher and Murdoch, in the early 1980s, turned Britain in a plutocratic heaven. It was a summit of dishonesty: resting prosperity on making a country into a haven for world class thieves (the USA, by the way, does the same; at least in the EU, plutocrats are forced to pay the Added Value Tax, heavier on luxury).

Then Blair and Murdoch delayed the day of reckoning by buying the people on credit (and making Wall Street dirtiest derivative work, besides ingratiating themselves to American plutocracy by going to invade Iraq). Meanwhile Clinton gave full power to Rubin (Goldman Sachs) and his assistant, the well connected Summers, to dismantle president Roosevelt’s financial and economic revolution, so that their class could stuff itself with all the money they wanted. They just forgot that even enormous leverage limits how much money there is.

At the bottom, money represents power, that is energy, and there is only so much to go around. If you take all the energy away from the People, they may not be able to make a revolution, indeed, as happened under Rome, but neither will they have the energy to operate civilization, as happened under Rome, too.

Basically the same pattern happened in all the leading democracies. Even upper middle class Londoners and Parisians cannot afford to live in their own cities, which were sold to tax free world plutocrats, in connivance with domestic plutocrats. (Long ago an African “emperor”, Bokassa, had offered diamonds to his girlfriend (?) French president VGE.)

The effect is worse in London, as said foreigners were taxed there even less. Entire buildings in those democratic capitals turned out to be the property of Middle Eastern or African potentates, or, as I prefer to say, plutocrats. For example president Bongo of Gabon was found to own for hundreds of millions euros of property, in France alone (he had properties in Britain, and more than one hundred million dollar in the USA).

Q: Why this irresistible rise of plutocracy?

A: I have explained this in much older essays, and will give a little refresher in a few paragraphs. The rise of plutocracy is a tendency always, ever since capital and property became extensive enough in the Neolithic (hence the rage of Rousseau, Sade and company above). It’s basically a mathematical effect. In general plutocracy won, and demonic wealth ruled thereafter. This why democracy is rare in civilized times, although it is the natural state of the genus Homo.

Even Athenian democracy died this way, as the Athenian plutocracy, however modest, surrendered to the ferocious and mighty Macedonian plutocracy, which had made them an offer they could not refuse. OK, the Athenians had been defeated in a first naval battle, and they surrendered after the second one became indecisive. The philosopher Demosthenes, an enemy of fascism, took poison as Macedonian shock troops seized him.

Q: Does the decline and fall of Rome fit your model?

A: Yes, plutocracy caused the fall of the republic. However, the army came to represent the People, something already obvious in the writings of the Gracchi, or, later, in 100 BCE, when seven times Consul Marius, victorious on invading Germans, a “New Man” fought the hyper rich.  After Augustus, the army fought the Senate, representing the plutocracy. They weakened each other, and the rise of foreign soldiers, or their descendants, and of the Eastern Empire, and theocracy, made it into a 5 way fight. Which became a six way fight, as the Persian Sassanids and then the “Saracens” (“Sons of Sara”) got into the brawl. After a century of darkness, and theocracy, the Franks came out on top.

Q: Were not the Franks very rich? Did they not own Europe?

A: For people who ruled what they called Europe, the Franks were austere, relatively speaking. Most of them were peasants with a frankly unsubmissive attitude. They had a high birthrate, and their inheritance law forced equal distribution of inheritance. Charlemagne’s capital, in Aix, was modest for someone who was the only legal Roman emperor, and controlled most of Western Europe. Over seven centuries of Frankish queens, kings and emperors, I do not know one example of extravagant luxury from one the many monarchs. Many were major war chiefs present on the battlefield, sometimes for decades. Charlemagne spent 50% more time at war on horseback than Marcus Aurelius, the Roman emperor who spent the most time fighting.

Many Frankish head of states (for example Bathilde, Charlemagne, Charles the Bald) supported intellectual activity on the largest and highest scale. Their philosophers were condemned, many centuries later, by the abominable fascists of the Inquisition, representing a most vicious type of plutocracy, the theocratic type.

In general, plutocratic tendencies cannot be avoided. Democracy has to prevent plutocracy actively. Societies, for 12,000 years, have had active forms of sacrifices and taxes to keep plutocracy from killing society.  Obama, a way cool guy, cannot prevent plutocracy anymore than the average iguana, and for the same reason; even if he wanted to, his metabolism is too cool, his passions so little developed, that he cannot get to move. Without e-motion, there is no motion. As everybody can attest.

Q: Forget Obama. Now everybody is starting to agree with you that the guy (to speak like him) is clueless, hopeless without any belief, because we can’t, and it was all about: “Yes, we can!” because he can’t, so we had to step in, but we were not made president by electing him, a point he forgot. You did not answer fully the question on the rise of plutocracy.

A: There are two phenomena at work. One has been in evidence for 12 millennia. It is purely mathematical. It has to do with the nature of the exponential function applied on the notions of capital and interest. You have three ingredients there which are as fundamental as possible: the exponential, the most important function in mathematics, capital, that is potential energy, and interest, without which the human brain would be just impotent jelly, plunged in the abyss of terminal cool.

Q: So you claim that the basic problem with plutocracy involves deep mathematics, but has been well known?

A: Yes, sustainable societies have known forever what capital is, and interest too. Long lived societies also grasped the intuitive properties of the exponential function, such as being its own derivative, so growing the faster, the bigger it gets. Mathematics often makes explicit and systematic notions which were guessed long before, if they were of vital interest.

The ancients in Carthage reacted to the exponential by throwing the eldest of the hyper rich in the fire. Or, more exactly, in a machine which would throw them in the fire. Wives of Viking and rich Indians would also not enjoy the riches of cool inheritance, but the bite of flames. Same idea: prevent wealth to get so ingrained in a few hands that society would come to a standstill.

Q: Is the mathematical tendency for plutocracy to feed on itself why all societies bring up margin rates for taxes for higher incomes?

A: Of course. The exponential function, acting on the interest capital brings, imposes an EXPONENTIAL TAXATION, just for the distribution of riches to stay the same. So strong redistributive taxes are mathematically necessary to prevent democracy to turn into plutocracy.

The hyper rich in the Late Roman empire refused to pay taxes. That dearth of state income was the main proximal factor in the fall of the Roman state, as the political leaders of Rome had to subcontract defense to various German tribes, and even the Huns. When the Franks took over, they took over as the legal army of Rome. They decided to collect tax themselves, as Rome would not do it. Thus the Frankish army became the state. If the USA’s government revenue keeps on collapsing, it is likely that the U.S. military will also take over. An efficient military always operates as a socialist meritocracy.

Q: let’s compare apples to apples. Is the USA more of a plutocracy than in the past?

A: The USA did not have much wealth inequality in its first century, at least among voters (white men with property). Carnegie, the first billionaire, at the end of the nineteenth century, would now be called a left wing liberal, somewhere to the left of Soros. He was an important author, guru to his wealthy contemporaries, explaining the populist bend of early American billionaires.

The top income-tax rate was 91 percent under the republican Eisenhower, in 1960. It was 70 percent in 1980, after Nixon and Carter, 50 percent in 1986, after Reagan and Bush Senior, and 39.6 percent in 2000, after Clinton had sold democracy short to plutocracy, and is now 35 percent. Income from investments is taxed at a rate of 15 percent, and most of the hyper rich have connived with the IRS to claim that rate for their income. The gutting of the estate tax by Oblabla, the democrat from make believe, insures that the USA is transforming itself into an hereditary plutocracy  under our unbelieving eyes. Indeed remember: wealth breeds wealth faster, the bigger the wealth. This is actually how the social inequalities of the feudal society evolved. Just to stand still, a heavy tax need to be applied so that the rich does not grab more and more of the riches, generation after generation.

Q: What is wrong with that?

A: Let’s leave aside the intrinsic violation of the Aristotelian Constitution of the USA that this would be, as it would deny “life and the pursuit of happiness” to the many. Human beings are not psychobiologically made to be submitted. They suffer stress, debilitated health, they become much less intelligent, much less human in the most noble sense of the term… So the USA would become a nation of debilitated morons, ultimately to be defeated on the battlefield.

Q: I thought you admired Nietzsche? You should admire the return of an aristocracy…

A: I am far from agreeing with all of Nietzsche’s ideas. Moreover, Nietzsche precisely alluded to what I just said. We are actually in agreement. On that point as many others, I am more Nietschean than Nietzsche. The slave mentality, slave religion, and spirit of the herd which Nietzsche condemned, he condemned for precisely the reasons I said, although he used different semantics. On top of that, we are not talking about aristocracy here, which is the rule of the best. The mediocre tricks applied in Libya by the Gaddafi clan, and those applied by Western plutocrats, have nothing to do with being the best. We are not talking about Charles Martel’s knights here. What we have been confronting in the last decade has been naked kleptocracy, the rule of the thieves. They did not just a little bit of money, but too much to keep on operating civilization itself.

Q: You think that the hyper rich are thieves, because they become ever richer using not merit, but riches to become richer, and they have got so rich that there is not enough money for the world to go ’round. What about the guy which founded Facebook? Was not that a beautiful American success story? What about Google?

A: What about worshipping Standards & Poor, as you are at it? That’s a whole can of worms. It would take several pages to explain that some sort of organized crime is at play in some exaggerated valuations on the private market. Facebook, like Google, was founded by discrete, but very rich individuals, venture capitalists we don’t want to mention, but we that have personally encountered. They are the real power behind those thrones. the valuation of Facebook, up to 50 billion dollars, according to the usual suspect at Goldman Sachs (both judge and party in Facebook), is an organized criminal plot.

If you want to talk about great American companies, think Intel, or GE (in spite of GE’s propensity to go overseas).

Q: You said that the very way money is created contributes to converting today’s world into plutocracy. How does that work?

A: Money is traditionally created, by private financiers leveraging from public money, laws and regulations prevented financiers to keep (most of the) money to themselves. However laws and regulations to prevent plutocracy were removed by the plutocrats and their (servant).

To make things worse, there is only so much money to go around. Banks create money by leveraging, presently with a multiplier of about 30, it seems, in the USA. So, if the central bank and treasury give a trillion to the banks, they loan 30 trillions. By contrast, in cautious, democratic Switzerland, the multiplier is only 5 (five!)

And of course, the derivative market is in excess of 600 trillion (the banks mumble disingenuously that, once one has added and subtracted everything, it’s more like 30 trillion; the fact remains, it’s at least twice the GDP of the USA!) Banks seem to be loaning mostly to that.

By stealing more and more of the money, the super rich have left the rest of the population with less and less money, hence power. The solution? Hyper tax the hyper rich, or face mayhem. And not just in the markets. Also tax heavily the transfer mechanisms which allow the hyper rich to steal the poor.

Q: Many economists and pundits observe that a DELEVERAGING EVENT is ongoing. Paul Krugman uses the label “Minsky event”, for a deleveraging crisis. Why do you not insist on that point?

A: Krugman wants to advertize Minsky’s views, which are not really his own, but ought certainly to be better known. Deleveraging is part of the crisis. However, deleveraging, although important in the USA, is not the essence of the crisis.

How do we know this? Well, there is a crisis, but THERE HAS BEEN VERY LITTLE DELEVERAGING, SO FAR. Actually, quite the opposite. Indeed, individuals are trying to deleverage, in the USA. But they have not (yet) been very successful (private debt relative to GDP has gone down very little). Moreover, individuals are not deleveraging in Europe (traditionally, the Franco-Germans families have assets, but little debt, so there is nothing to deleverage). Moreover, the states piled up debt since 2007, especially the USA and the nations making up the EU. For example Spain went from a debt around 30% of GDP to 65% of GDP, between 2008 and 2011.

Thus one needs to look somewhere else for the main causative set of the crisis. Much economic analysis, not only does not go to the bottom of economics (which is energy + ethics), but do not even go deep enough to understand even the main factors causing the present Greater Depression.

Q: If deleveraging has not caused the crisis, why do people talk about it so much?

A: Pernicious actors hid much bigger causes behind smaller, rather irrelevant ones. For example, American economists obsess about Europe and the euro in a thoroughly negative way, due to their nationalistic bias (USA first!) Even supposedly left wing economists in the USA do this. Of course, they are paid to howl that way, by their plutocratic sponsors (don’t forget Harvard, MIT, Princeton, Stanford, etc. may be great universities, but they are also plutocratic devices). The European Union has a constitutional social welfare, which is anathema to American plutocrats, and they are afraid that the American People could catch the fancy that they would prefer such a society.

Q: So deleveraging will never be a problem?

A: I never said that. Quite the opposite. Deleveraging will contribute to the crisis considerably, if and whenever it gets underway, and stupid political decisions just taken insure that it will, should they be implemented. Decisions coming out of false analogies, such as Obama claiming that the government ought to balance its budget, just as a family does.

Q: Why does not the government need to balance its finances?

A: Because the only correct way to reduce debt is through growth. The less growth, the more debt. Obama, and the Tea Party do not understand the role of government. The government makes banks possible. Government makes the entire financial system possible. The problem is not debt, it is what you make with the debt. If you make nothing with it, you are in serious trouble. This is the case of the USA presently. Even Bush Junior can claim that he put the USA further in debt to pay drugs for seniors. Obama, on the other hands can only show you dead seals in Afghanistan, a surrealistic spectacle that would have thrilled Salvador Dali by its absurdity.

The government is to the economy in general, and the ‘free’ market in particular, what a conductor is to an orchestra. It is also composer and paymaster.

Q: Is there a similarity between the American and European crises?

A: In truth, there is a European banking crisis, just as there is  an American banking crisis. Trillions have already been directed towards American bankers, not yet as much towards European bankers. There is also a deficit crisis, as many states (including the USA) run high “primary deficits“.

The European banking crisis has not been as bad, because the banks there are more regulated. moreover, Great Britain, Belgium and Germany nationalized derelict mega banks.

Q: What’s so great about nationalizations?

A: Once a bank inside a nation has been paid for by the People of a nation, it ought to become property of the People of that nation. Once a mega bank has been nationalized, it can be ordered to lend to the real economy. by contrast, in the USA, Bush and Obama paid personally the crooked bankers much more than their banks were worth, and now those same bankers refuse to lend to the real economy.

Bush senior and Reagan had nationalized 2,000 banks during the Savings and Loans crisis, very successfully (this inspired Scandinavia to do the same during its own financial crisis, a few years later, and an ill informed, pathetic Obama to make fun of the whole thing, 20 years later).

Q: Do you hate the rich? Are you jealous?

A: No. I am extremely weathy myself, at least where it really counts for high self esteem. A form of wealth no money can buy.

In an editorial,  Stop Coddling the Super-Rich”, Warren Buffet, the third richest individual in the world, goes into the injustice of American taxation. This has been true, for more than a decade, and was mentioned hundreds of time on my sites. Buffet does not mention further injustices, such as tax support for fossil fuels, or for companies making money overseas.

Buffet does not mention why it is so bad to have a few making an immense amount of money while most do not. It is not just unjust: concentration of capital and power is gripping the entire socio-economy of the USA. The remark applies to the whole planet, by the same mechanism. The reason is this: a very rich person can only rise by so much aggregate demand. After all that person and family are only a few. 

When Bill Gross, founder of PIMCO, another money manipulator, bemoans the lack of “aggregate demand” in the economy of the USA, he is an hypocrite, because it is actually his fault. Indeed, Mr. Gross, worth personally more than 2 billion dollars, can only demand so much; how many people will he employ to lick his toes?

In 2009, 25 hedge fund managers in the USA earned, personally, more than 25 billion dollars, and they were taxed 15%. Some will celebrate American ingenuity. What they do not realize, though, is that this money was stolen from everybody else, or, at least retirees with pension funds, and all those that could have been paid when working for these retirees.

In Great Britain a youth who stole bottled water was condemned to 6 months in jail. Others got four years for “inciting riots”… on the Internet. Not that any riots directly connected to what they wrote happened, as the police and “justice” readily admits. This, on Facebook pages (a funny concept, as Facebook is the site, on which the alleged incitation occurred, thus ought to have been condemned too; but Facebook is good for revolution in Syria, not London). In a step soon to come, people who click on this site will be jailed automatically…

Q: Are there objective, factual differences between the attitude to the crisis in Europe and the USA?

A: As I said, some banks were nationalized already. Some major French banks, are among the most crucial in the world (not just because Italy owes them 400 billion dollars, but because they are central to the derivative market). One thing is sure, though: if they need major help from French taxpayers, they will be nationalized.

France, under the presidency of de Gaulle in 1945, did massive nationalizations, which were very successful. Nobody has forgotten that, in Europe.

Q: why is the crisis so deleterious in the Anglo-Saxon world?

A: Australia and Canada are doing great. Tightly regulated banks in the later. It is not just a question of commodities doing well. these are also more honest countries. They both declared war to Hitler a few days after France and Britain in September 1939. Canada landed soldiers in France in 1940, and again in 1942 and 1944!

The irresistible drama of plutocracy in the USA is a direct long term consequence of the collaboration between American plutocracy and European fascists before, during and after World War Two. The fact the USA stabbed democracy in the back in 1939, by helping Hitler, and hurting Poland, France and Britain, was never dispassionately pondered. This American duplicity was never explored, let alone explained seriously, so it has persisted, like a malignant cancer, always there, always growing.

Ever since the spirit American plutocracy, you know the stuff they learn at the “Skull and Bones” society or at Harvard, kept on a roll. That many Nazi songs were modified Harvard songs are the sort of telling details which were swept under the rug. That weapon smuggling from the USA, using American owned companies, armed the Nazis during their hyper violent rise to power is another subject which is ignored. That the Bush family fortune is splashed all over in Auschwitz blood, is something best never evoked in good company. Prescott Bush, and many other American plutocrats were Hitler’s closest and most important collaborators.

In spite of American plutocratic help, Hitler’s Reich last 12 years. American plutocracy on its own, had a better run, but much of it has been, in a sense, Nazi fuelled. Tough. Once again, nobody wants to say this. But many European leaders have these notions, unexpressed, deep in the back of their heads, and American leaders such as Bush have got to have some notions about the friendship between Prescott and Adolf. This has led to a deep, mostly unconscious, so far, conflict between Europe and the USA.

At the root of the Conflict between the USA and Europe is the question of whether plutocracy or democracy will lead the West. Something similar happened between Rome and Greece. In the first phase, Roman plutocratic fascism won. In the second phase, Greece recovered her empire, and Rome was displaced by the Franks. In the third phase, European civilization gobbled everything up. But now, Europe is confronted to a rogue colony.

because, under the façade smiles, it’s coming to the fore. The Americans, paid by their plutocrats, are trying their best to demolish the euro (Goldman Sachs’ organized lying to European authorities about Greek finances being a case in point; using derivatives, with their enormous leverage, to demolish European finances is another example). If they fail in a timely manner, everybody will be able to observe that the primary deficit of the USA is the worst of the planet. We are talking epic failure on a Zimbabwean scale here. The American deficit augments at the rate of 1% a MONTH. Yes, a month. Next years, state finances will collapse.   

Q: Which other deleterious consequences do you see to plutocracy?

A: Plutocracy is fundamentally anti-intellectual, as its power rests on People not understanding what it dies to be so powerful. So plutocracy is against intellectual, philosophical, and scientific progress. It is friendly to stupidity, superstition, superficiality, selfishness.

 

There is evidence that scientific, medical, and technological progress has slowed down, and this, in my opinion, can be traced to the rise of plutocracy, as it was in Ancient Greece, which became distinctly less clever when it got ruled by the plutocrats (“Hellenistic Kingdoms“, Rome).

This is not just lost opportunity. We are in a race between our knowledge and our demolition of the biosphere. As cognitive expansion has abated, the chances for irreversible demolition have augmented. This plutocratic show is just a waste of opportunity, and precious time.

***

Patrice Ayme

Sometimes Revolution Is The Only Solution.

July 10, 2011

IMPERIALISM, PLUTOCRACY, FRANCE, USA.

Abstract: One of my American readers is under the impression that I insult my American readers. I try my best to show below that his objections are not as deeply grounded as my observations. I am basically replying to his short note with visions of enormous contexts which change the debate completely. Put an ant in orbit, and its vision of things should change. Thus wishful thinking makes happy.

The concept of “emperors”, and plutocracy, are given meaning through some of the detailed history of Europe, America and the world.

Here are a few of the notions explored: 1) imperialism is, fundamentally, fascism at national, or civilizational level. It just extends military order over a vast territory. Sometimes it is necessary for the continuation of civilization, and there is nothing wrong with that. Europe was mostly at peace during the Middle Ages because of the Imperium Francorum, a gigantic empire with strategi depth that Rome dreamed of, and which kept the savages at bay. When that empire waned, and nation-states rose, so did war.

Fascism evolved as an instinct because it was the only way for groups of savannah dwelling, meat eating primates to survive, as super organisms, when struggling for life was the only way out. So fascism, intrinsically  is not any worse than teeth, because one can eat people with them (don’t smirk: at the battle of Cannae, at least one Roman legionary with disabled limbs, left only with a functioning jaw, but still inhabitated with the offensive spirit, ate through his Punic enemy).

2) Most Americans know nothing about plutocracy, because they have been brainwashed into ignoring it, except to pay their respect (every plutocrat has to be called a “philanthropist” by Very Serious Americans). Hence the lamentable show, a sort of Godfather movie, on a continental scale, with everybody paying their respect to the hyper rich. Most American critiques mimic sheep who have never seen wolves, and don’t know what those big teeth are for.

The number one safeguard of plutocracy is to persuade the sheep, that there are no conspiracies, no plots. They live in the best, of all possible worlds. Whereas the evidence to the contrary is astounding. The CIA recruited bin Laden in 1979, the year Carter attacked Afghanistan. Murdoch, the plutocrat from Australia, and England, for years, has been rampaging through minds with his lies, lies which advantaged the plutocracy. And so on.

We even just learned that the FBI was harassing Hemingway. Few noticed. Only Hemingway knew, and his friends thought he was crazy, because he knew, and they refused to know, as good, Very Serious Americans, learn to do, early on. In other words, Hemingway’s friends became a way to drive Hemingway crazy, thanks to the FBI (they tried similar tricks with King). In all these naiveties, the lack of real history in America shines brightly.

But now America has stepped into the flow of history, and ignoring history is tantamount to be carried away by its furious flow. For example, CIA agents encouraged bin Laden to become an abject creature in the 1980s, far away. But that had some consequences in 2001, and thereafter, closer to home. One can pique history, but it may come back to swallow those who riled it up.

Differently from Americans, Europeans lived through history, and bask in its relevance. Or irrelevance. Sometimes too much so (as when the Flemish celebrate frantically a battle Philippe IV of France lost in 1302, which make them cling to a provincial mind set of the sort which could only welcome Nazism with open arms, in 1940; it all started with too much taxes requested by Philippe’s government on the textile industry, to annoy the Anglois; French nobles led a revolt, in 1302, and nowadays the Flemish seem to have gone crazy with the idea of their selfish mini state).

In France, since 1789, the People and the plutocracy have been at war always. This is one of the fundamental truths of France. It is more true than wine, cheese, and, of course, this is not the sort of concept which is brought to the attention of the American populace, with the urgency it merits.

Hostility to hyper wealth does not make France a welfare state, just the opposite: it makes France less of a welfare state for… the hyper wealthy (so they flee to Belgium, see above!) It also makes the country pretty nice, causing, paradoxically, a flocking of world plutocrats to buy real estate in France (making French property the most overvalued real estate in the world, among significant countries).  

***

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HOW GEOGRAPHY INFLUENCES PSYCHOLOGIES, AND THE HISTORIES THEREOF:

Countries have psychologies, arising from their geography, their histories, and the solutions they found to address them. Some countries are even more than that: they achieved the status of full civilizations.

Egypt was the first such a case: it was clearly both a country, and a civilization. That it was all along an incredible serpent of fertility unifying Nubia (i.e., Black Africa), the Mediterranean,  Arabia, Mesopotamia and the Levant is no coincidence. It is a small example of why Europe became so superior later: as a nexus of ideas. One cannot just be a nexus by sitting there, though. One has to have the appropriate software. Egyptian fascism became too much at some point, and Egypt was taken over, as fascists often are, when they cross the line.

I am not embracing the Jared Diamond’s drift in “Guns, Germs, and Steel” that it was all a lucky accident that the beasts, the plants and god know what else, came to serve the Europeans (who, therefore, got plenty of lucky breaks they had nothing to do with). Actually Jared Diamond changed his music when he wrote “Collapse“. That later book was more philosophically correct (so it became less famous, did not get any Pulitzer prize, etc.).

In “Collapse”, Diamond observed that, faced with ecological collapse, during the Middle Ages, Europe and Japan reacted appropriately with strong governmental intervention (as usual with Americans, Diamond talks a lot about Germany, although the measures taken by the much stronger government in France where much fiercer, and have been unparalleled before or after, except may be in some Polynesian islands;  people were interdicted from some regions, to let nature replenish itself, an old Polynesian trick).

My thesis, indeed, is that mental activity of the superior type is necessary, and often sufficient to insure civilizational survival. In the case of Egypt, too much intellectual fascism (perhaps necessary to resist the “People of the Sea” invasion) led to a mental collpase, and then sneaky subjugation by Libyans, and a slow descent into irrelevance. Plutocracy, a form of fascism, can lead to irreversible intellectual fascism.

Imperialism is still another form of fascism. Actually it is the generic fascism of countries and civilizations. But, as we will see below, it is a different notion from plutocracy. Amusingly, in the case of Rome, Roman plutocracy, having lost all control, killed Roman imperialism. Both were replaced by the Franks’ Imperium Francorum (which conquered, or reconquered, most of Western Europe, Jerusalem, and even Constantinople in 1204!) where imperialism long kept plutocracy in check.

What caused Roman decline? Very simple. In the USA the plutocrats and their lackeys in Congress do not want to pay for infrastructure and Medicare, Medicaid, schools, etc. So it was with the Roman plutocrats (it’s called the “Curial” crisis). But Romans plutocrats went further: they refused to pay for the army (and hid behind their private armies instead). Hence the invasions, and the need for the central government to… hire the enemy (and even to hire the Huns!)

China, or India, were other examples of countries which were civilizations. But that is also true for smaller ensembles, such as Japan, Vietnam, or Siam (Thailand), or Indonesia, were other examples of small, but full civilizations.

Some civilizations have known foreign occupation (China, under the Mongol yoke with the Yuan), or denaturation (Egypt, first under the Libyans, then the Greco-Macedonians, then the Romans, and finally, the coup de grace, under the Muslim Arabic overlords).

Other civilizations, of course were annihilated (the Mongols annihilated one Muslim empire, and the strongest Buddhist civilization ever).

The case of Europe is more complicated than anywhere else. Europe is a land of invasions and immigrations (differently from China, or even India, Yuan and Moguls excepted). The many peninsulas, mountains, seas and rivers, smack in the fertile, temperate center of the world (OK, a bit to the side), favored a wealth of mini civilizations interacting (quite a bit similarly, but on a much larger scale, to what had led to the supremacy of the Sumerians, or the Cretan-Egypt-Hittite complex, or the Greeks themselves; Greece had many of the characteristics of Europe, on one tenth the scale).  

The Greco-Roman empire did not suppress the myriad of local mini civilizations. It accommodated them; that was central to the genius of the Roman empire. Cities were pretty much independent, as the Roman administration was incredibly efficient.

In the Late Roman Empire, the situation became even more diverse, by a strange twist of fate. The plutocrats basically refused to pay taxes, and it is not the People, addled by Christian fanaticism, pacifism, and a passion for the apocalypse, which was going to contradict them. Christianism acted as a form of anesthesia imposed by the plutocrats to common sense. So the central government made treaties with many small German nations. Some, like the Franks, a vast and multiple confederation, did not stay small very long: for them things were looking up, and they reproduced like rabbits.

Europe had to live with the interaction between local mini civilizations, and invasions, and evolved meta principles, long held ideas and emotions, which allowed the necessary  compromises to flourish. This created a mood of openness intrinsic to Europe.

Reading this, Pericles would say:”I told you so! We already had that in Athens, what I called the Open Society!” OK, right, but it did not start with Athens. and also Athens completely contradicted that mood during her long war with Sparta, as she massacred small cities, just because, she could, as she argued at the time, in a rarely attained mix of idiocy, inconscience, and mass criminality.

The Franks were careful to never do such a thing (although, under Charlemagne, three centuries after Clovis, they mass deported some particularly obstinate Germans, from Northern Germany, to South Western France).

Europe’s habit of mixing things up may have started way back, when the Neanderthals fraternized with Africans (their descendants spread all the way to China and New Guinea!)

During the Neolithic, farmers from the Fertile Crescent (Levant plus Mesopotamia) migrated to Italy with their bioengineered plants (we know that from genetic studies). Greece itself was nearly annihilated by steel armed Dorians. Around the same time Etruscans moved from Asia to Italy. And according to legend, Romans and Franks escaped from a burning Troy, also located in Asia. Some will say:”Now you use legend to buttress your arguments?” Well, my point entirely: the Romans and Franks advertized heavily their alleged Trojan origin precisely as a celebration of diversity.

Later Germano-Celts invaded most of Europe. A lot of philosophy came with the Celto-Germans, that the Romans were deprived of (for example the attitude to women). After Caesar invaded the 80% of Gaul that the Romans were not controlling yet, a compromise was found. What came out was a genetically and philosophically mixed civilization.

A point here: Julian (the anti-Christian Roman philosopher-emperor), in an often quoted remark, pointed out that Western Europe was not inclined to philosophy or geometry. However Parisians troops elected him “Augustus”  (supreme emperor, instead of just “Caesar”). And that made tremendous sense.

What Julian, a Greek, did not see, was that the philosophy of the West was founded in common sense. One could read all the philosophical treatises one wanted, but if they extolled superstition, or sexism, they were of no use to the Franks. Anyway, they did not read, that came only later. Common sense was the greatest force, as it spared the West from the worst of the Christian insanities, endless debates about this, that and the other thing about Dog God (said insanities directly inspired the Muslim insanities, a few centuries later, although the Qur’an kept them simple; the Qur’an is no more crazy than its direct inspirer Saint Augustine, who believed, and wrote, that most people would go to hell… Augustine did not reveal his sources, but he was believed… even by the Muslims.)

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AMERICAN RAGE AND SUFFERING:

One of the commenter who graces this blog, John, took some umbrage from my latest essay. First he quoted the conclusion of the essay:

France, of course, made a real revolution against its own outrageous plutocracy in 1789, and, ever since, French plutocracy has known that there are boundaries not to be trespassed before the People goes into the street, and all hell breaks loose.

Then John blasted away:

“…ever since…” Oh, you mean as in the Empires of EMPERORS Napoleon I and III?

How stupid do you think we are? Both these naked imperial plutocracies (Emperors, duh) were only terminated by military defeats for the French. And initially both Napoleons’ military adventures had been ecstatically supported by the French public.

The French even tried to install an Emperor in Mexico in 1862. A Hapsburg, no less. Why? For exactly the same reasons the US is reviled now- economic and political hegemony in a faraway region with plenty of resources and a supposedly docile population.

Then there was the suppression of the Paris Commune- all hell broke loose that time all right…how did that work out for your “People?”

Don’t treat your American readers like fools. It’s insulting.”

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IT’S NOT WHAT YOU THINK:

I replied to John in the comments, presenting excuses for giving the appearance of treating my American readers like fools. I don’t see what the interest of that would be. I am honestly searching for the truth. Why France ended with an uncle and his nephew calling themselves “emperors” is a long (his)story.

I have always been highly critical of Napoleon. Like Sade, and a whole current of thought with him, I thought that it was a mistake to try to ram down the French revolution all over Europe (although it worked in many places, such as Italy and Poland, see below). But the revolutionaries had been driven a bit crazy from the attempted extinction of the French Constitutional Monarchy in 1792, by a general alliance of all of Europe’s plutocrats.

John seems unaware of the full context in which the French “empires” arose. For a number of reasons to be evoked below, Napoleon was viewed as anti-plutocratic. Indeed, during the revolutions of 1830, people were crying out, in Paris, Belgium and Poland, for his son, the handsome Napoleon II, a colonel in the Austrian army, to become king of their respective countries. Plutocracy, like democracy, is relative.

There are no excuses for Napoleon III’s coup. However, Napoleon III, an utopian socialist, played an important revolutionary role in Italy, pushing back and out, both Austria, and the Pope’s secular power.

In France Napoleon III’s economic role was quite positive. That he was eaten by a bigger fascist fish (Bismarck) was unfortunate, in light of further developments… Nevertheless, of course, the nephew could have done all this by staying French president. On the funny side, he was the only Swiss national to have reigned over France.

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THE WORST IN THE HISTORY OF FRANCE DOES NOT HAVE TO COME FROM FRANCE:

Well, that’s even true for the Germans and Nazis! Murderous anti-Semitism, generally viewed as a typical Nazi characteristic, is really, at the root, a Christian story. Hitler was preceded by 15 centuries of rabid anti-Judaism from the Christian churches. It’s important to know where ideas, especially the nastiest ones, come from.

France being in the middle of Europe, in more ways than one, has a lot to do with whatever goes on in Europe, and gts in a lot of problems, just because of her geographical position. Standing in the middle of the most hyperactive continent is not just exciting, it can be deadly.

Not every nation can enjoy the peace and tranquility of having an entire continent to itself, as the USA does (the real natives having been helped out of this suffering world, to enjoy the pleasures of the great beyond, as explained in the Bible).

in those times when France had the dubious pleasure of suffering two emperors, two kings, and two republics, during the Nineteenth Century, the USA was mostly standing out of history. Now the USA, just like France for 15 centuries and Gaul for three millennia (or the Franks for even longer if you believe them with Troy), is standing in the middle of history.

I am going to give an even more extensive answer to gentleman John here. It is hard to know where to start. Why? History is not just about facts, but how to link them in a logical network, of causes and effects. History has always a psychological aspect. Emotions become an integral part of history.

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EMPIRE AND PLUTOCRACY ARE DIFFERENT NOTIONS:

Let me remark first that one should not confuse the notion of empire and the notion of plutocracy. In the original Roman meaning, imperial command was just ultimate military command, which was really very ultimate in Rome. Once, in the dying days of the republic, south of rome, two imperators (one of them the young and famous Pompey) greeted each other, a smile on their lips, with the title of imperators, thousands of legionaries standing behind each.

Caesar, viewed later as the first Roman emperor (he was made “dictator for life“), was the head of the “Populares“, and, although immensely wealthy, embarked on genuine works and reforms benefiting the People. He was assassinated just as he was embarking on an immensely ambitious military plan to secure all Eastern frontiers of Rome, in one stroke of genius.

Since Caesar had by far Rome’s, and the world’s, best army, ever, just then, Caesar’s planned jaunt through the Caucasus could well have worked. The insecure Eastern frontiers, in Germany and Mesopotamia, were probably the most prominent ingredient in the ultimate demise of Rome (so Caesar was right on that one, and his grand nephew of a successor, Augustus was wrong).

The Franks struggled for three centuries of continuous wars to secure the shortest Eastern frontier of Rome the Imperium Francorum in Europe. Exactly where Caesar wanted to have it. That work was completed by 30 years of continuous campaigns by Charlemagne (who got all the credit from those who don’t know the history).  

Napoleon I, Napoleon III, and Hitler, all presented themselves as popular, anti-plutocratic leaders. That was the major part of their appeal, as far as the People were concerned. They made very clear declarations to this effect. Whether this was true or not, is a complicated question. It should be answered by noticing that plenty of non plutocratic emperors have existed. Many Roman emperors fall in that category. So do many Frankish kings and queens, or Charlemagne, Genghis Khan (not Kubilai Khan!), or Peter the great of Russia.  All those characters tried genuinely to improve the condition of the People (certainly Marcus-Aurelius or Charlemagne, who were constantly at war, on the battlefield, did not wallop in luxury!)

Right now, clearly the West has an empire, a world empire. Various leading countries (USA, Britain, France, Germany, Japan) play the roles of the major cities of the Roman empire. Others play secondary, but still crucial roles (Canada, Australia, all of Latin America, South Africa, Singapore). Others are crucial allies (India). Some are ambiguously associated (Russia, China).

There is nothing wrong in having such an empire. There is actually everything right. Humanity cannot afford just one major rogue country, at this point in technology and ecology. That is one of the reasons why it is important to get rid of mad dogs, one by one (Kaddafi’s days are numbered, and then the pressure can be brought onto Assad’s dictatorship: Assad had plenty of time to make compromises! Attacking the French and USA embassy is not the right route; the French had to fire their weapons.)

What is wrong, though, is that, far from being a world empire of the People (the explicit aim of Rome, by the way), this de facto world empire is turning, as in Rome, into a de facto world plutocracy (see Murderoch, Rupert).

The turning of a society into plutocracy, as I try to explain, is a phenomenon which can, and will happen, in any isolated post Neolithic society, if it is not deliberately and explicitly contradicted (and ALL durable Neolithic societies had anti-plutocratic safeguards, even to the point of involving human sacrifices).

Unfortunately, under Obama’s pseudo democrats, all the levers are on full plutocracy, even more than they were under his predecessor the war mongering torture oriented plutocrat Bush. Obama can explain that whichever way he wants, the plutocratic facts speak for themselves. It is hard to fight plutocracy in Saudi Arabia, when it is venerated, like the new Golden Calf, in Washington and Manhattan.

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PSYCHOLOGY, OR WHY THE MONGOLS ALLIED THEMSELVES WITH THE FRANKS:

When the Mongol reached the shores of the Adriatic in the Thirteenth Century, they had defeated, so far all Iranian, Georgian, Russian, Muslim and European forces they had met (and all the Central Asian and Eastern Asian forces too).

Only the army of the king of France and his vassals stood between the undefeated Mongols, and the Atlantic. However, the Mongols decided to push no further. Why? Because the Mongols remembered what had happened to their direct ancestors, the Huns: they had been crushed in “Francia”.

Avoiding Paris (“Lutetia“), Attila’s Huns had pushed as far as Orleans (“Aurelianum“), which they seized, and in which they suffered a severe defeat, the same day. Thereafter the retreating Huns, laden with booty, were shadowed by the army of the Franks, which hindered them until the Visigoths, and the main Roman army, could join the effort. The Frankish-Roman-Visigoth coalition inflicted a terrible defeat to the Huns.

Only the double game of the Roman commander Aëtius, saved whatever was left of the army and nation of the Huns, the next day. Aëtius maneuvered to persuade the Visigoths to leave the battlefield, and refused to let the Franks and the Romans mop up the Asiatic invaders. (Over the next few years, what was left of the Huns was defeated in Italy, and then thoroughly exterminated by the Germans as a military force.)

(Interestingly the Wikipedia articles in English in July 2011, on the subject of the Huns, mostly ignore the Franks, at the cost of a few blanks in the history; I don’t think that is an accident, it’s too blatant; the American anti-French racism has got to the point where the history of France is written, by American historians, about one of the two most important battles in France, without mentioning the Franks! Wow. I am not going to bother trying to enlighten Wikipedia further at this point: been there, done that. Working from inside has its limits: many Jews enrolled in the Wehrmacht, or even the SS, 163,000 of them, in the wehrmacht alone, to try to stop the Nazis from inside: it did not work too well…)

There were eight centuries between Attila’s smashing in France, at the Battle of the Catalaunian Plains, and the Mongol invasion under the overall command of Genghis Khan! Thus the Mongols, through eight centuries of oral history (they had just acquired writing and an alphabet) drew lessons, and remembered them well. All the more since their victory in Hungary against all sorts of European knights came close to disaster.

In the end, the Mongols made friends with those Franks they respected so much, manu militari. The Mongols conquered Damascus and Baghdad with Frankish armies (this is often discreetly ignored). The Franco-Mongol alliance melted away, because the Pope and the French king were furious, and refused to accept the entreaties of the Mongols (on completely racist reasons caused by racial physical repulsion, as far as I can see; the fact 2 Mongol tribes were Nestorian Christian did not help; there was nothing the Catholics detested more than another version of Christianity).

The Mongols tried to defeat Egypt’s Mameluks alone. Instead, it’s them who got defeated. Then they did the next best thing to becoming Christian, and became Muslim instead (as the Pope had refused to send enough missionaries, in spite of official Mongol requests).

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PLUTOCRACY IN FRANCE, & THE REVOLUTIONS IT LED TO:

Colossal plutocracy, closely tied up to the banking systems, was the essence of Francois I of France and Charles V (the latter was a Bourguignon, that is a “French”, sort of; in any case Charles V’s native language was French). Charles V had been elected emperor of Spain, and he soon ruled over all of Europe except France and England.

The private banking system’s entanglement with politics originated just then, as it allowed François Ier and Charles V to spend more than they had (in exchange for making the bankers ever more powerful; in the following century, no less than two Medicis, that is, daughters of bankers, became reigning queens of France, that is leaders of what was, with Spain, the most powerful state in the world; France was actually more powerful, as she was in the slow process of defeating Spain, an 80 years war which (re)-created the Netherlands, Germany, Austria and Italy).

Colossal plutocracy in France, ever more outrageous, proceeded unabated until 1789 CE. The finances of the French government were broken, thanks to the war of creation of America, but fabulous fortunes were all over France, starting with the Catholic Church. (For a contemporary analogy, look at the Greek Church, immensely rich, and untaxed.)

Extravagant plutocracy in France was made blatant by the “Affaire du Collier“, when a besotted cardinal offered a tremendously expensive necklace to an impersonator, a well endowed countess, in the darkest gardens of Versailles, at night, believing she was the Queen he was enamored with (thanks in part to a fabricated correspondence). The thieves were arrested. King Louis XVI allowed the grave mistake of a very public trial.

Louis was less smart than Obama, who hid carefully the miscreants’ shenanigans, their immense thievery, and, for others, violation of human rights, and the laws of war. Just by prosecuting them not. A solution Louis XVI had refused. By honesty. Clearly, he had lost his head, would today’s plutocrats smirk. 

In one case, the theft of a necklace. Prosecuted. Consequence: a revolution. On the other hand, 230 years later, astronomical theft, incredible violations: no prosecution, no revolution. So far. But, sometimes, there is worse than revolution, namely stagnation, devolution, decomposition, dissolution, annihilation. That’s where no revolution, ever, leads to. Hubris is not protective, far from it. 

The French People did not believe the conclusion of the Affaire du Collier trial, which exonerated the Queen, and, in any case, the People could see the extravagant wealth and corruption in the upper reaches of the Court, and Church.

(By the way, although I gave a link to Wikipedia on the “Necklace Affair”, Wikipedia’s account claims that the Countess de la Motte, the main perpetrator, was not branded. That is not true. La Motte was branded. Just, she struggled so much she got branded on her voluminous breast, instead of her shoulder, so maybe Wikipedia averted its eyes, being American, and that a felony, no doubt; then La Motte bit the executioner, before fainting; these details are well known, and are even in a Dumas historical novel.)

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REVOLUTIONS ALL OVER, ALL THE TIME:

The Revolution of 1789 corrected French plutocracy in part. As French and European revolutionary armies later headed by Napoleon expanded all over Europe, the old plutocracy got irreversibly trashed. The old plutocracy tried to reconstitute itself when Napoleon was brought down for good in 1815. But it did not quite succeed. The revolutionary spirit kept on simmering all over.

The July Revolution of 1830, immortalized, even for Americans, by the famous painting of David, Liberty Leading the People, spread its spirit throughout Europe. Belgium revolted against the Netherlands, and became independent in bloody street fighting. Then occupied Poland revolted against Russia. The following year, the Netherlands invaded Belgium, defeated the Belgians, but had to retreat when confronted to a French army sent by the (constitutional) July monarchy.

By the way, Poland had been destroyed by Prussia and Russia in 1795 CE. However, Napoleon recreated it as a state, the Duchy of Warsaw, and that state was, in turn, destroyed again in 1815 by the anti-Napoleon coalition. Poland would be recreated by the Versailles treaty in 1919 (to the horror of German fascists and their American friends), re-destroyed by Hitler in 1939 (with crucial American plutocratic help). Hitler actually tried to exterminate the Poles (first by starving them to death, secondly by creating Auschwitz… The Jewish extermination there was just an afterthought, a sort of multitasking).  

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WHY PLUTOCRACY WENT OVERBOARD IN FRANCE, BUT NOT ENGLAND:

France was a co-inventor of the modern era, while, like the rest of Europe, been saddled with extravagant plutocracy. France was bigger, and richer, so her plutocracy was bigger there than the one in England. England had gone through rebellions, revolutions, and even a republic, before being saddled with an oral constitutional monarchy of foreign origin in the 17C!

When the English King called Louis XIV of France to the rescue, the latter refused to send his army, the most powerful in Europe, to England. An uneasy alliance was established between the Dutch invaders and the English plutocrats, and soon Dutch and Jewish financial engineering funded on debt and the fractional reserve system, was reigning supreme in the British isles (the leverage provided by financial engineering is much of how France was defeated, as Great Britain was able to muster greater financing than its much smaller economy gave it naturally. In a way, a craftier plutocratic plot defeated France! The Rothschild were on both sides of the deed…)

Great Britain did not return the favor consented by Louis XIV, in 1792. Contrarily to what Louis XIV had done, or, rather, not done, Great Britain invaded France, although the French constitutional King, Louis XVI, had not asked for a British intervention. Of course, Russia, Austria, Prussia, and countless other plutocratic forces were invading France at the same time too. Nobody had asked the British to invade France in 1792, except for the old fashion international plutocracy, the so called aristocracy, which was exasperated by the French revolution’s redistribution of wealth, and the lamentable example it presented to the rest of the Peoples of Europe.

The Prussian army was defeated at Valmy, not far from Paris, by French artillery, using new, secret technology (September 1792). The republic was proclaimed. In the south, a Corsican captain would take care of the British.

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PLUTOCRACY: ONE WAY IN FRANCE, THE OPPOSITE IN THE USA:

The recent history of plutocracy in France and the USA is completely different.

The case of the North American English colony was the exact opposite of that of France. It took nearly three centuries for America’s first billionaires. And the earliest of them, Carnegie, had a strong social conscience. Carnegie held that fortune ought to be taxed a minimum of 50%, with a strong inheritance tax, not the 17%, with no inheritance tax, which Obama’s pseudo democrats have made the law of the land.

Rockefeller agreed with Carnegie. But soon, not to be outdone, the wealthy Teddy Roosevelt, youngest American president ever, head of the republican party, embarked the USA on a seriously “progressive” agenda, busting trusts, and advocating enough income for the average American. 

Teddy, a cousin of FDR, represented the late father of his spouse as their marriage. So they were close. FDR realized that the banks had violated the fiduciary monopoly they have to create money by leveraging government money, by creating money not for the economy, but for themselves, the banks, directly. That excellent system installed by FDR, was dismantled thanks to the hard work of Summers, Reagan, and Clinton.  Obama, understanding nothing, hopefully, about the whole thing, advised by his close friends the kleptocrats, put Summers in power again. The most gigantic transfer of money from the poor to the rich in the history of manking ensued, very discreetly.

All the money which has not been going towards the average American, is now going to the hyper wealthy. The English colony in America, was, for centuries, the richest territory in the world, per capita. For the first time in its history the average real income has been going down, for more than a decade.

How did we get there? The American street, and unions, used to be strong. “May First”, known worldwide, as “Labor Day” celebrates a revolt in Chicago by the workers, and its bloody repression, where the judicial system was used to accuse, and execute, innocent progressives that the rich wanted to get rid of.

Now Labor Day has been moved to the other side of the year (but only in the USA), and Chicago is feted with economic Nobel Prizes to dignify a para-fascist economic doctrine which says that all good things of civilization will follow from  tremendous financial profits of the few, and the fewer, and the more tremendous, the better. Obama was intellectually polished there. In that very university. Surprise: he thinks like them.

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WHATEVER FRANCE DOES, IT’S IN A MULTI-MILLENNIAL CONTEXT:

French children study history throughout their education. France has much more varied, deeper, older, and fiercer traditions, than the American English colony. That’s a problem with being just a colony, and leaving it at that. The Americans ought to consider that European history is also their history, because it is much more instructive. Besides, it’s the truth.

France has been a great power for at least 15 centuries (and much more if one considers the Gallo-Romans, and the Celts before that). That is plenty of time to be duped by elites, and to constitute an entire library of the ways and means according to which one can get duped by the elites.

What do I mean by this? Here is an example, an inverted example. Just when Caesar conquered Gaul, a wealth of experiences on how to be misled was gathered. For example, a peace was  brokered. A young aristocrat, Vercingetorix, disagreed with older leaders, including in his closest family, and restarted a war with Caesar. On paper, he had much larger forces, as Gaul, united, dwarfed Rome, or, at least the forces the Romans could put in Gaul. But Rome, and the bloody Caesar, were on the correct side of civilization. Sure enough, in spite of much higher numbers in his armies, Vercingetorix had to surrender to Caesar. The majority of Gaul had refused to support him. Instead the majority embraced Rome, and rejected the Druids. The majority had embraced the superior civilization.

It would have been a mistake to go all out with Vercingetorix, against the progress of civilization. The wisest Gauls knew this. (The myth of the cartoon “Asterix” is the exact opposite of what truly happened; although Gaul would stay the most unruly part, within the empire, a nexus of revolutions and rebellions; emperor Claudius was born in Lugdunum (Lyons), and soon Gallic senators were elected; thereupon, Gallia was simmering; no doubt that made the symbiosis with the rebellious Franks very easy.)   

Another example; in the 16 C, France knew no less than seven religious wars. How did one get there? It is an immensely complicated story. The regency by the Catholic Catherine de Medici has something to do with it: when the daughter of a banker is in over her head, that’s what you get.

Initially the empire of the Franks, although it was led by very rich men, was not a plutocracy, as inheritance was divided equally. Differently from the Roman elites, who deliberately limited their births and intermarried, to foster their own power, the Franks did not care; when they were rich enough, they lived life, and provided for their many children equally, a per the law (this sort of law, of equal inheritance, and loving attitude to life, persists to this day in France, differently from the USA, where the dog can inherit everything, and Prussian style puritanism is still big).

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FRANCE’S PERMANENT REVOLUTIONS:

The situation after the colossal French intervention in the American war of independence was extreme: France had won everything, but there had been strictly no profit in it. It’s a bit like the present wars in Iraq and Afghanistan: the USA has, at best, won a colossal defeat. Or two.

By 1789, thanks to investing in America, France was broke. Something had to be done. The Estates-General, having mutated themselves into a Constituent Assembly, found that a remedy was to break the hold of the plutocracy.

In 1789, plutocracy became the official problem of France. As I said, ever since, if lines are crossed by the French plutocracy, the People go in the street, and rebel. Most of the population did not see the revolution of 1789 as finished. After all the monarchy of 1815 was imposed by foreign powers. Cossacks, strutting down the Champs Elysees.

The Paris Commune is the most famous example of these revolutions. There have been four other examples of massive rebellions/revolutions/national cleansings, since the revolution of 1789. And I am not counting minor problems such as the Dreyfus Affair, and the Franco-Algerian civil war, although they were perceived at the time as near, or in the later case, literal, civil wars… When French troops left for Vietnam, in the early fifties, demonstrations were so violent, people got killed.

The Franco-Algerian war caused the death of hundreds of thousands, and the exile of millions. Many French people in full evidence today, quintessentially French, are actually some of these Africans in exile, or now their descendants. My own father was born and raised in Africa. The first time he visited continental France, he was in his twenties, in uniform, with a helmet, and a gun, having known already combat in Italy. Americans have no ideas about those things, nor the fact that Soviet and American intervention in Algeria, much behind the scene, some at the UN, evolved things the way they got. They were helped by de Gaulle’s confused racism (for want of a better word).

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THE PARIS COMMUNE DID NOT FAIL:

John above seems to gloat about the failure of the Paris Commune. Failure? That is not clear. Supposing, for a moment, that Jesus existed, it’s not because Jesus died, that Jesus failed. Actually the whole point of that Christian myth is the opposite: sometimes the only, or best, way to succeed, is to die for the cause.

This notion of martyrdom was fully absorbed by the Christo-Islamist tradition, and is perhaps the main reason why this religion dominates the planet.

Even obdurate atheists such as yours truly, subscribe to many of the theses of Christo-Islamism; now, of course, martyrdom, for example, was fully understood, and endured by the Spartans at Thermopylae: thus a lot of Christo-Islamism just brandishes what was there before. Christianism embraced many notions which preceded it, and made them into religious notions. (An even more spectacular example is that Christianism embraced the central notion of Greek philosophy, the logos, namely, logic, as God, to ingratiate itself with the Antiquity’s main philosophical current. This strategy avoided a frontal shock between Christianity and Greek philosophy; if that had happened early, Christianism would have probably been wiped out.)

The Paris Commune was repressed in tremendous blood, true. Nothing to be proud of, for the conservatives. As many as 50,000 may have been executed during the savage repression, in one “semaine sanglante“ (which was made in the name of the occupying German army, by the way… It was not that the French suddenly had an inspiration, and tried to kill as many French as they could. The Second German Reich had just been created in Versailles, subjugating both France, and Germany! See what happened in Bavaria…)

The number of people killed to crush the Commune was worse than in the Revolution of 1789. However, the futuristic measures voted by the Paris Commune were implemented later, worldwide. Those measures inspired not just revolutionaries such as Marx, and Engels, or Lenin, but all the democracies, starting with France.

So, ultimately, the Commune was a success. We all profit from it, to this day. The French Third republic admitted that much, by discreetly freeing, a few years later, all the Communards it had so severely punished. Louise Michel, deported to New Caledonia, with another 7,000, went back to France, and were reinstated. Crucial measures of the Commune, such as the separation of church and state, free secular education for all, were made into law.

Something called… Communism, even had some success, for a while. Many of the ideas of communism came from the Commune, were recycled all over Europe, before reaching the USA.  The Commune worked very well, for all the People of the world. Premier Chou En Lai, or Chairman Mao, and Deng XiaoPing, or Lenin, explained that themselves. In truth, most of the ideas of the Commune are pretty standard nowadays.

***

NAPOLEON WAS AN IMMUNE REACTION TO BRITISH AGGRESSION:

John also evokes Napoleon, and brandishes him as an example of plutocracy. Well, not so fast. I personally despise Napoleon. However, if Great Britain had not attacked France in 1792, Napoleon would have not become a dictator. PM Lloyd George admitted that explicitly, more than a century after this tragedy happened.

The British invasion of Provence led directly to Napoleon’s fulgurant ascent. The British held Toulon, and the plan was to march north towards Paris. The French army around Toulon, a city surrounded by extremely sharp limestone peaks and cliffs, had been proven unable to dislodge the enemy. Napoleon, just an artillery captain, came up with an amazing plan. It was implemented, Bonaparte was wounded severely in combat, and the British navy had to flee.

To claim that Napoleon was “ecstatically supported by the French People” is not correct. Napoleon did execute and imprison many. Some were great men. Napoleon was put in power by the bourgeoisie, not the People. He was your basic military dictator, sustained by an oligarchy. He was extremely hated by a large part of the French revolution. During several of the revolutions I alluded to above, the Vendome Column, with Napoleon on top, was brought down.

However Napoleon was long perceived as a friend of the revolution and the revolutionary spirit, because he spent several years, in his early career, in what were basically counter-attacks against the rest of European plutocracy. The fact that Napoleon himself had turned into a plutocracy was such an improbable turn of events, it dawned only slowly on the French people. It would be a bit as if Obama turned into a Tea Party plutocrat, and saved the country by taking out Medicare and Medicaid. 

I am unfair: Napoleon introduced many structures of socialist type, which have survived, to this day. Before Napoleon consolidated power, many had advised to not try to export the French revolution throughout Europe. One of the loudest was Sade, already one of the main actors of 1789.

The invasion of Russia by Napoleon in 1812 was forced by the on-going British blockade, which required the continent would act as one. The invasion turned badly, in part, it has been recently said, because of typhus. His army was mostly a pan-European army. Although his army had been annihilated, Napoleon revealed to Metternich, the French losses has been slight. No doubt that, if the West European forces had controlled Russia, Tolstoy, and other Russian nobles, would have been forced to free their serfs: Tolstoy could pose as a patriot all he wanted, but morality was not clearly on his side.

***

NAPOLEON III WAS A MIXED BAG:

It is easy to look at Napoleon III’s big disasters and spite him (as Victor Hugo did: he moved in England rather than staying under the dictator’s boot). However, it’s not that simple.

Napoleon III, who used to sit on the knees of his uncle Napoleon I, was elected president, but, later, grabbed illegal powers. Napoleon III, although bad, was not as bad as people imagine him to be, even at his worst. He plotted with Italian revolutionaries for decades, taking great risks. Finally Napoleon III defeated Austro-Hungary in a tremendously bloody war in Northern Italy, allowing the creation of an independent Italy, for the first time since Rome. Otherwise, it is possible that Northern Italy would still be under the Austrian yoke.

There was much blood at the battle of Solferino between 156,000 French and Piedmont-Savoy troops on one side, and 160,000 Austrians, on the other. 40,000 casualties, in a few hours. That was after the battle of Magenta when a French army defeated an Austrian army, with only a few thousands killed. The Swiss, alarmed, by this bloodbath on their doorstep, created the Red Cross. Napoleon III was himself deeply shaken. This may explain why he let Bismarck gobble Austria next.

***

PSYCHOLOGICAL DIFFERENCES BETWEEN THE USA & EUROPE:

I am not treating my American readers as fools. I am not even more anti-American than I am anti-German, or anti-French. Although I vaguely despise people who admire Napoleon, that does not make me anti-French. Ever since Napoleon became Consul, there has been a sizable part of the French population hating Napoleon.

The USA left the mainstream of history in the 17C, when England, shaken by civil war, left the American colony to its own instruments (England returned, at the point of a gun, after 1700). That made the USA stranger, and less European, in some important ways, than, say, South America (because South America stayed under European control until the 19 C… except for Haiti… where Napoleon distinguished himself by his brute stupidity and the thorough defeat visited upon him Haiti has not recovered from, to this day).

The Paris Commune fought for the future. The roughly contemporary American Secession war fought for against something completely different. A horrible zombie from the past, devouring humanity and civilization. The American Secession war was the attempt to correct a huge historical mistake, a genuinely American mistake, the American institution of slavery. 

Slavery was created in 1619, in Massachusetts. The same state were, soon after, the city government paid for Indian scalps. (Thus the French cannot say that Dominique Strauss-Kahn is treated unusually bad! He is just an alien, Wall Street wants its scalp!)

Slavery was peacefully outlawed under the governance of the Merovingian queen, Bathilde (who was herself an ex-escaped slave, later purchased by the King, who then married her, a tale which says a lot about the strangely republican characteristics of the Imperium Francorum). That was in the middle of the seventh Century, a full millennium before the Europeans who had immigrated to America reinstated slavery there.  

Why so much psychological and civilizational devolution? Europeans, by invading the deep woods of America, and running with the savages, became themselves savage. It’s not all bad: sometimes savagery resets the priorities right. It’s an important part of American psychological inheritance.

***

REVOLUTIONS WORK:

The American revolution was more a rebellion than anything else. De facto, the English American colony was already run as its own republic. It was just a question of expulsing the occupying army. A real revolution changes society deeply.

When asked about the impact of the French revolution, Premier Zhou Enlai (the guy who was running China while Mao frolicked with nurses, and his wife plotted revenge) famously told an American delegation:“Too early to say.” It was assumed he talked about the French revolution of 1789. 1789 too early to say? That would have been a bit surprising, since the Revolution of 1789 is all over China, all over the United nations Charter, and all over the world. Zhou Enlai, who had been educated in revolution in Paris itself, with so many of his colleagues, knew better.

Indeed one of the American officers with Kissinger at the time has just revealed, 30 years later, that Zhou Enlai was referring to May 68. May 68 spread to Prague, and led to the Soviet invasion of August 1968. That event, like the crushing of the Paris Commune, may have looked like a failure of revolution. In truth it was reculer pour mieux sauter (backing up, to further jump). After the Soviet 1968 invasion, a meek form of the bloodbath of the Suez-Hungary invasion (40,000 killed in Hungary), Soviet fascism had lost all and any moral authority.

***

MAY 68 WORKED:

May 68 did have an impact on Europe. It ushered a new, more thorough critique of society. The old left (of the Communist Party and “Internationale Socialiste”) came under as much condemnation as “capitalism”. Ecology was taken seriously, old framework of thought, shattered. The impact of European construction was immediate, and very deep.

The American supported dictatorships in Southern Europe (Portugal, Spain, Greece) were definitively rendered contemptible and intolerable. They were forced to integrate the European Union as democracies, not American CIA playthings.

And that was just the beginning. Many of the ideas of May 68 led to farseeing efforts in Europe to curb ecological abuse. The USA refused to follow suit (and so did, initially some of its lackeys, such as China; although now clearly China knows that was a mistake, and is going the other way). Actually the USA has been going in the opposite way to May 68 in nearly all ways. But of course, the USA did not go through May 68. There was enough of a spirit of revolt in the USA for Johnson to say he would not run for the presidency. And there were riots. But, differently from France, the entire country did not go on strike, as France did, for four weeks.

World history is complex, it’s not just about nationalistic schemes, and whether America is tops, or bottoms. For example Chancellor Bismarck, who brought down Napoleon III, was himself a fascist. However, Bismarck was not as much a fascist as those who succeeded (and overthrew!) him. Bismarck introduced free, universal health care, in a way which worked, in a way which works to this day, and which was much less plutocratic than Romneybama care. American readers should learn about it, to would feel less foolish. And to try to understand why they great progressive leader treat them less good in the Twenty-first Century than Bismarck treated Germans in the Nineteenth Century.

Right now, in the best French tradition, people have protested in the streets in Greece and Spain. France is eerily calm, as the economy is doing pretty well, and the People understands that things are not simple. The French see even the reviled Sarkozy trying to implement reforms, worldwide, which are blocked by worldwide plutocrats. Ditto with Cameron, who has kept some of the anti-plutocratic measures of his predecessor. Hence London financial pirates are fleeing to Geneva… Now the Swiss can be squeezed into submission, all right, but it won’t help, as long as plutocrats can flee to Singapore, or buy New York justice.

We need anti-plutocratic revolutions more than ever. Rothschild explained, nearly two centuries that, individuals such as himself, who created money, were the real power behind the throne. That creation of money is a monopoly which was kindly given by the People to those peculiar individuals.

I do not like USA president Jackson ( he was as bloody and empire minded as Napoleon, but, of course, his imperial invasion was a success). Jackson was ferocious, and he is one of many American early presidents who saw through bankers’ tricks, and did not let them invade the USA. Instead Europeans financed canals.  

Meanwhile plutocratic finance has captured the USA, as FDR’s silent revolution, the Banking Act of 1933 (“Glass-Steagall”) was overturned by the silent coup instituted by Wall Street, using individuals such as Summers.

A new revolution is in order. But to work, it will need a lot of technical knowledge on derivatives and high frequency trading. Most opposition figures are blissfully unaware of these concepts (not Dominique Strauss-Kahn, a top university full professor in economics, which may explain the furor of New York media against him: when the master indicates irritation, his dogs bark  against the offending individual).

As long as most people are, blissfully unaware, nothing will happen. Except, of course, if enough people get infuriated, and start to break things, which is what happened during the Revolution of 1789.Peopleo ideas have to win. Mastering all too high high frequency trading is easy: just impose a financial transaction tax. If one can get enough votes to bomb out mass murdering dictators, one should be able to get that passed at the United Nations.  Mastering derivatives would be more refined in the details, but there, too, just as with Tax Heavens, the UN should be most helpful.

Right now, pirates have taken control of finance. Democracy needs to put them out of commission, and recover mastery of its economic destiny. In an important, it is indeed too early to know if the fight against outrageous plutocracy started in 1789 has been a success. Right now, with its capture  of the American mind, and of the American political system, it looks like a failure, as other plutocrats are all too ready to point out that, should they be left behind, their own countries would be left in the dust with them.

And what is wrong with the idea of a Flemish mini state? Simple: one of the main reason of the defeat of 1940 was the neutral Netherlands, and neutral Belgium. In truth, they should not have been neutral, because they were democracies, and clearly, in danger of being gobbled up by the racist dictatorship next door (which had gobbled up several Germanoid territories). But they were neutral, because they thought France could take care of Nazi Germany, so why should they make any effort?

Hitler, though had a plan taking into account French empathy. So he attacked Belgium and the Netherlands with even more brutality than he had attacked Norway (where war crimes had been committed). The French command, in a debauch of astounding stupidity, sent its mobile reserve army, seven armored divisions better equipped than the ten Nazi Panzer divisions, through Belgium, into the Netherlands. That was a trap. The real Nazi thrust was way south.

When Churchill flew to Paris he asked the French commander, genral Gamelin (an idiot):” Où est la masse de manœuvre?(“Where is the strategic reserve?) To which the idiot replied, and it was the truth:”Aucune”.(“None”) The reserve had been sent to the ingrate, anti-French Flemish, or thereabout, celebrating 1302 CE.

The situation would have been very different if Belgium and the Netherlands had been allied, a few months, or even a few weeks, prior. Similarly, if Sweden had not been busy selling high grade iron ore to Hitler, and 88 mm guns, Hitler would have had no tanks, no guns, and would have been much deprived.

(Britain having an army would have helped too. Let alone some American growling, which would have scared German generals into submission, before they were irreversibly stained by war crimes the Nazis induced them to commit.)

Nowadays France and Britain are squeezing the juice out of Kaddafi, and the bloody Assad is next. However small European countries don’t help much. Their reasoning is the same as in 1940: let France and Britain take care of the local fascists, in the meantime we shall be rich, because we shall pay less tax. Oh, and this time the Americans are in it too, so why us worry?

This is exactly the sort of reasoning which was the proximal cause of the fall of the Roman empire (hyper fascism and Christianized fascism came later, after enough defeats): the fewer taxes, the less army, the less civic sense, the better. Fortunately, this time, the USA stands with France and Britain, yes. However, their resources are not infinite, and they may have to pay themselves, some way. (The French and American ambassadors just displeased Assad by going to visit one of the cities the Assad family already killed more than 20,000 people in recent decades.)

Although it does not look so, there is a global organization of the planet. Here is an example of a global conspiratorial plot. Pakistani nuclear scientist gave North Korea (and Kaddafi, among others…) the means of building nuclear bombs. In turn, USA plutocrats (such as G. W. Bush) directly used U.S. taxpayer money to develop Pakistani nuclear BOMBS. So, basically, through a little intermediary, the military-industrial complex of the USA financed North Korea to threaten the USA, allowing then to have a pretext to build a very expensive anti-ballistic missile system to protect the West Coast of the USA. Just like with bin Laden, but bigger and subtler.

Stand reassured: anti-ballistic defense probably will not work, and that will be an even bigger surprise than 9/11.

Sometimes revolution is the only solution. And not just in Egypt.

***

Patrice Ayme


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