Posts Tagged ‘Corruption’

Pluto’s Cosmic Impact

February 27, 2013

Abstract: There is a real, serious impact threat, from small asteroids, and, much worse, long period comets. Yet our great leaders are not too interested, because they prefer the world population as they will it to be: ignorant, despondent and impotent. Cutting science budgets in the guise of austerity helps. So they are busy cutting: austerity for humanity, and anything that makes the honor of mankind, wealth for those who lead us towards oblivion.

A world unwilling of solving problems to the point of being incapable to do so, is perfect for those who profit from the established order, and yearn for divinizing celebrities and more exploitative stagnation rather than real progress and empowerment of the commons.

Far Away Meteor’s Fireball: 27 Kilometers High (90,000 ft)


The comet problem is a case in point. It’s perfectly solvable. But it is left unsolved as a paradigm that unemployment is better than all and any alternative, including cosmic catastrophes. The ways of Pluto are subtle, and vicious.

Don’t ask for whom austerity tolls, it tolls for thee, and any science, wisdom or knowledge you may want to acquire. Admire the celebrities: they are the best lives you will ever get.
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In less than four years, two nuclear explosion sized asteroid impacts were observed over continental plates. One was more than four times the power of the Hiroshima bomb (Sulawesi in Indonesia, 2009), the other was 33 times Hiroshima (Urals, 2013). So much for the notion that these things are rare and innocuous events. Just above land, I know of four explosions of city killers in 105 years.

(There have been eyewitnesses of major explosions at sea, too; a scientific debate is ongoing about whether there was a truly giant, country killer impact south of New Zealand, 5 centuries ago.)

Only 1,500 people were hospitalized by the shock waves of the Ural meteor, because as luck had it, the meteor was on a grazing trajectory when it collided with the atmospheric wall. It streaked through the wall sideways for 32.5 seconds before experiencing three explosions. The first one, and strongest, happened 27 kilometers above the Urals, 60 kilometers south of the center of a city habitated by one million people.

If the asteroid had been a minute late, on the same trajectory, Tokyo may have been hit. If the meteor had been 30 seconds ahead, on the same trajectory Moscow, moving at 30 kilometers per second, would have caught up with the meteor. In either case, the damage on the ground would have been considerable, and massively lethal.

Why? Because the angles of entry would have been much sharper in either case than they were above the Urals. So the asteroid would have delivered its 500 kilotons, 33 times Hiroshima, much lower. Low enough for either capital to have been partly disintegrated.

For those who want to have a good laugh, zombie style, let them be appraised of the following fascinating twist. The deliriously clever Soviets had installed an automatic nuclear retaliation system (“Dead Hand”) in case Moscow had been destroyed by surprise by the vile capitalists. (Western Strategic Submarines could have hit Moscow in three minutes, hence the hair trigger paranoia.)

“Dead Hand”, also known as “Perimeter” , worked by detecting flashes and seismic waves, and then firing nuclear tipped rockets automatically. The Russians have been coy about whether the system is still in use. May be that is why Putin was so ashen faced when speaking about the Ural meteor. Putin may have been told of my little computation above: 30 seconds or so later, and the meteor may have released 500 kilotons above the Kremlin.

When the folly of men insults the might of heavens, fireworks are guaranteed…

The debate about space impactors has been deflected towards the wrong problem, the obviously silly red herring, the problem one should not worry about, the non dangerous problem. That’s indeed the case when an asteroid CAN be deflected.

Deflection, per se, means one has decades to do it. Thus it is not an emergency, by definition. Why to assume celestial mechanics and happenstance will be that accommodating? Is the Solar System a restaurant where one makes reservations when one feels like it? Of course not. Thus asteroid deflection is the wrong problem. Asteroid deflection is a bit like worrying about being eaten by a shark while skiing out of bounds. What needs to be addressed is a different problem, impactor interception & destruction.

Why so much talk about deflection, when annihilation of the offender should be the focus? Why so much denial? Why change the conversation from a clear and present danger, to talk about a red herring?

The real danger is long period comets: they are huge, unpredictable, undetected, and the warning would come only with months to spare.

So why don’t we talk about them?

Is this blatant denial related to other difficulties we are experiencing, such as the Greater Depression, the Asphyxiation of the Biosphere with man-made greenhouse gases, the Waning of democracy, the Blossoming of Plutocracy? Yes to all.

The refusal to solve the space impactor problem is a baby example of the mood that enables the rule of plutocracy rather than the rule of reason for all.

One avoids to talk about the cosmic difficulty at hand to avoid a mood that plutocracy finds politically dangerous: solving problems and one can, you know, before we know it, solve the problem of rogue finance, corrupting fossil fuel industry, etc …. As NASA put it in 2012:
“For non-technical reasons, nuclear explosions would likely be a last resort, but IT IS ALSO THE MOST POWERFUL TECHNIQUE…
The nuclear option would be usable for objects up to a few kilometers in diameter.”

Nobody Can Resist Me

Nobody Can Resist Me


So what are we waiting for? Well we are waiting for plutocracy to keep on impacting our world ever more deeply. That’s what the plutocrats want. They want to deeply impact civilization with the sheer glory of their rule.

As I write this the threats of austerity cuts are already affecting the science budgets in the USA by more than 5% (from the looming “sequester”, which has already forced scientific agencies to implement thousands of cuts). In the European Union, scientific cuts are turning into a massacre.

Indeed, in the European Union, the cuts to the scientific budgets are in excess of an unbelievable 13%. Another victory for Kanzler Merkel and the very wealthy heir, David Cameron! Instead of cutting science, why don’t the politicians put a 93% tax on multi-millionaires, to finance science and education?

Putting a 93% tax on the wealthiest is what Republican president Eisenhower did to reimburse the World war Two debt. So why not? Why to throw the baby, but not the dirty bath? Answer: because the politicians would lose the friends that will make them so incredibly rich tomorrow. Politics would not be a lucrative career anymore.

This is a point Beppe Grillo is making in Italy, and now he has 18% of the Italian Parliament to show for it.
OK, Eisenhower taxed the wealthy when Lincoln’s party was really republican, instead of being thoroughly plutocratic, as it is now. In Eisenhower’s time, millions of citizens of the USA could go to the most advanced schools, for free. Including Medical School. Somebody will a normal job could feed a family and provides it with a roof without excessive debt (now a couple can barely do that with 2 jobs and excessive debt, as long as oil is not too expensive).

The mood the careerists such as Cameron, Merkel and the so called Republicans in the USA, want to avoid absolutely, is the mood of solving the problems at hand, with the technology at hand.

Indeed such a mood could impact hard plutocracy itself. Plutocracy is an even mightier threat for civilization than any comet. Any comet could be dispatched with a 200 Megatons thermonuclear bomb, should be act swiftly. In other words, disposing of a comet would be a technological project much easier to implement than getting rid of plutocracy. Why? Common people would understand that something four kilometers across at 40 kilometers per second would affect them adversely.

Yet, common people have been hypnotized into believing that plutocracy is their best friend. It’s their new religion. They salivate when beautiful people show up on the screen. they live through them. They don’t feel like the lobsters they are, slowly cooked for dinner.

Solving problems is a very bad habit for a society to have, when it wants plutocracy to rule. Because plutocracy itself is a problem. The worst chronic problem. So one may fear that plutocracy itself would be solved, by problem solvers… As it was under the Roman republic, for five centuries.

Roman emperors, the “Princeps”, those “First men in Rome” who stole power from the republic, were fully aware of this. So they avoided solving problems scrupulously. One could make a curve of problems solved by the Roman state, and see that it goes down to basically zero once the fascist empire started to rule in full.

A society that makes a habit of solving problems will solve excessive plutocracy first. because only the intelligence of the People is freed from celebrity cult, and starts to contemplate the universe at large. That is why one observes that highly innovative societies were also highly revolutionary socially, and cut down to size their own plutocracy. First.

For example the golden age of Greece was preceded by massive, well, drastic, revolutions, starting with the draconian Draco himself in Athens (around 622 BCE) Sparta would later free Athens from tyranny). And of course Solon in Athens, probably inspired by Draco.

During the French revolution, in 1792, as plutocratic armies invaded the country from all direction, the Polytechnique and other engineering schools were founded. The idea was to defend the homeland of human rights supreme with smarts. Immediately new explosives were invented at Polytechnique, and put to good use at Valmy, a few miles from Paris, to stop the Prussian Duke of Brunswick, who had promised to do to the Parisians what Hitler would do to the Jews, nearly two centuries later (tradition, tradition…)

Thus the Beatles were wrong when they sang hypocritically against revolution… (While racking the cash, and rubbing against the plutocratic order; Mc Carney married the Kodak heiress…) The revolutionary spirit infects all dimensions, once it’s allowed to grow in one of them.

During World War Two, the USA functioned pretty much as an equalitarian republic. Old French revolutionaries, ancient republican Romans, 22 centuries ago, Athenians 25 centuries ago, would have recognized the spirit immediately: out of the many, one, liberty, equality, fraternity… And plenty of ideas. The US navy in the Pacific, or the scientists involved in the atomic bomb project were pretty much self governing bodies, guided by truth.

Solving problems leads to an obsession with truth. Thus, if one wants to avoid the truth, one better stick to avoiding problems, and the solutions they bring. Thus the Roman emperors discouraged paradigm changing technology. As the mood of changing what could be changed could prove contagious, and thus threaten the order they ruled over, they astutely felt.

In the case of the threat of a space impactor, the solution is obvious. It calls for maximal, but existing, technology. The interception of the offensive object with a thermonuclear bomb is only rocket science, not Quantum science. It’s nothing off the shelf.

But to decide to do what can be done, and could do it efficiently, would recognize the preponderance of the metaprinciple that establishing an order of more or less vital priorities and taking care of high ranking priorities ought to rule over economic considerations.

It is this (meta)psychological subtlety that holds back Spaceguard.

After the Ural meteor’s strike, the Russian Prime Minister called for constructing Spaceguard. This would be intolerable to the world financiers and profiteers: if one used economic power for something useful, would not the world of finance supreme look irrelevant? Where would the spirit of enterprise stop? With finance’s heads on spikes?

Better to stick to the usefully childish, such as the muscle bound Princess of the USA (see the note about the meaning of the word “Princess”) giving a “best movie” award to still another motion picture glorifying wars of the USA in the Middle of Eurasia.

Such movies are much useful, to the plutocratic order. Hollywood seems to have a factory churning them out, and the Main Stream Media (“60 Minutes”, say) re-iterate the message.

Such movies, with their partial view of history, insure that We The People of the USA learn what a continual pain the Middle Easterners have been directing towards the USA, ever since they have oil, and have to be continually encourage to fork it all over to Wall Street.

Iran is particularly insensitive that way, as the USA worked hard changing the government there after the Iranian People voted for the wrong guy (Mossadegh) in the early 1950s. Then the USA installed by a real Shahanshah (“King of Kings”) with the help of its friend of the CIA, Khomeini. It’s good to be reminded of all this, and celebrate the “greatest country on Earth” (Shall we give it the title of Country of Countries?).

So never mind comets, asteroids, H bombs and heady stuff. Celebrities is where it’s at. Muscle and glitter. Now Sandberg, the Facebook woman, before that the Google woman, and before that, for more than a decade, the Larry Summers/Financial derivatives woman, since he got to meet her as an undergraduate when he was president of plutocratic Harvard, is coming out with a book to teach women how to succeed. I guess, that’s done the old fashion way, by meeting the right guys and accumulating that way a “stellar resume“.

They sleep, thus they rule, and they are even sleeping at the wheel.

Those who rule know how to take care of what’s important in the universe: the awe that become them. Let the universe take heed.
***
Patrice Ayme
***
Note: Ms Obama is given the title of ‘First Lady’. Yet, as anybody who knows Latin will testify, this is exactly what “Princess” means! It’s wonderful to discover that aristocracy is as American as motherhood.

No Rice, No Lice, No Dice

December 10, 2012

Unexpected happenings all over. UN Ambassador Susan Rice, reportedly involved with genocide and corruption for twenty years, is considered for Secretary of State. Does that beat Obama outlawing the European Carbon Tax? Reality is always spicier than fiction.

Transparency International produced a classification of countries according to (SELF) “perceived” corruption. Netherlands, Switzerland, Belgium, Luxembourg, Singapore, Hong Kong, are six tax havens (some with triads!) proclaimed to be less corrupt than France, or the USA. Tax havens are, like corruptocrats, parasites. Parasitism can kill a civilization.

Lice

There are 3,000 species of lice. Parasites can’t create civilization. We should not look up to them.

Trying to evaluate corruption, worldwide, and to attract attention to corruption is a good thing. If done honestly. Transparency International says that Finland is one of the three less corrupt countries in the world.  In reality, the Finnish director of Transparency International, himself the director of the Confederation of Finnish Industries, decided that.   

One can only conclude, in turn, that Transparency International is itself corrupt. Or at least mentally corrupt, like an old fish left out too long rotting in the sun. TI is another of these international pretentions, which international finance, and its globalized media, are keen to advertize for, as they serve them well.

The drive is always the same: the big states, the pillars of democracy, are bad, small states, where plutocrats can reign supreme, and lovely tax havens, are good. If the small state is the window of a big bad plutocracy, China, full of triads, as Hong Kong is, that ‘s even better! It’s not corrupt at all!

Just as tax havens are the best places to be born (said The Economist), tax havens are also the less corrupt, as far as international plutocrats are concerned. Similarly rotten rich plutocratic universities, propagandizing watered down values, are the best in the world, and the French ones the worst (hey, is not the Islamophobic Voltaire taught there?).

Corruption tends to be in the eye of the beholder. Transparency International, just as countless elite private universities, “liberal”‘ or “left wing” “think tanks”, are just plain tanks that the plutocrats finance to roll over the People, starting with their minds.

If Transparency International were serious, it would use objective criterions. The Gini Index, which measures inequality inside countries, would be a main ingredient. It’s obvious that any country where an extremely rich elite reigns over an uneducated rabble is intrinsically corrupt.

New indexes need to be created to judge corruption objectively. The Gini index is objective. We need more objective indexes, rather than to depend upon crooks to inform us on how corrupt they are.

One learns best through explicit examples. Here we will mention two cases, one that of an American politician who is a professional democratic party apparatchik. Starting from nothing, on government salary, the lady built a fortune… and part of this fortune is psychologically incrusted in the most determined pollutocratic corporations. (Yes, pollutocratic and pollutocrats are neologisms we will, unfortunately, find useful, looking forward, as the influence of those such as Ms Rice, and her puppet masters, seems to know no bounds.)  

One such index would rest upon how rich politicians become (the Pure Corruption Index). Presumably, the acquisition of otherwise unexplainable awesome riches comes from plutocrats paying them under, or over, the table.

Just add how rich those politicians (and their families!) have become, and divide by how much they officially earned, during their official tenure. Then integrate over all politicians of that country, to get a global index. So my proposed index can be used both individually, and globally. It seems that Susan Rice, Obama’s friend, UN ambassador with cabinet rank, and potential Secretary of State scores very high that way, on the Pure Corruption Index. That Obama defends her ardently tells volumes on the sort of state that we are supposed to admire, as we are supposed to admire Ms Rice’s political-financial genius. Such is the main axe of this essay.

Nietzsche used to crow that he “made philosophy with a hammer“. But the planet needs to be defended with a battle axe.

Another index would take into account how rich politicians are (Pure Plutocratic Index). The Pure Plutocratic Index is not as bad as a criterion to chose our Lords. For example, Senator Kerry, who would make a much better Secretary of State than Ms. Rice, is very rich. But it’s clear how he became rich: he married an extremely rich woman, from Mozambique, herself heir to the Heinz fortune. Kerry does not owe anything to pollutocrats, or plutocrats. It’s unlikely he would pass laws to construct ketchup pipelines across the world, to please his sponsor (namely his wife). Whereas as we will see, what dirty Rice proposes for her pipelines is hard to swallow.

Much of the American deficit (in the last four years, it was a trillion dollars a year) comes from legal, or tolerated tax evasion (the home mortgage interest deduction comes to mind, and the 975 employees at GE in charge of tax evasion, who allowed GE to avoid taxes all together more than once).

Amazon has a multi-billion dollar business in each of France, Britain, and other countries, and it pays basically no tax, while the local bookstores it is killing do. France presented Amazon with a tax bill of $252 million, for unpaid taxes, 2006 to 2010. France presented Google with a tax bill of a billion dollars (I use Google for search rarely, as there are many alternatives).

Massive tax evasion undermines the French welfare system. And also the French military, the world’s most interventionist. It is France who made war in Ivory Coast recently re-establishing democracy, and it is France which is putting the heat on the Islamists who conquered half of Mali (roughly the size of California), and may go to war there soon. This French war activities, in defense of civilization, in the end also protect the tax havens (example: if France had not declared war to Hitler in summer 1939, Switzerland, ultimately, just like Austria next door, would have been conquered by the Nazis).

I have not been following closely the fumbling about Ms Rice as Sec. Of State to replace Hillary Clinton. I knew nothing much about Ms. Rice, except that she is a professional politician, her career having started under Bill Clinton.  I don’t trust professional politicians. They are parasites within a tyrannical system, representative democracy. OK, some are sincere (Chavez, Gov. Brown of California, Hollande and Merkel come to mind; some may be sincere, although slightly deranged; Putin comes to mind.) However, in general politicians thrive from corruption, and thus politics attract those who want to thrive from corruption.

Nobody can accuse me not to be cynical. However, I was stunned to learn that Susan Rice, 48, holds between 300,000 and 600,000 dollars of TransCanada. Reality is indeed much more crazy than fiction.

TransCanada wants to build a pipeline across the USA to find a buyer to the horrendously polluting Tar Sand Oil (British Columbia has refused such a pipe). This fact, by itself, clearly disqualifies her as a potential Sec. Of State. Even if she divested herself, it would remain that she took side against the biosphere, and that she had to be violently separated from an investment who brought her $25,000 last year. And, to top it all of, she has so little judgment that, although she knew her good friend Obama would try to nominate her, she clang to her monstrous money maker. 

It gets better:  Ms. Rice and her husband, an ABC News producer, own at least $1.5 million worth of holdings in Enbridge, a Canadian company that transport Tar Sand oil across the USA. In other words, Ms. Rice will be viewed by dedicated ecologist as satanic. (Ecologists do not seem to worry Mr. Obama very much.)

Where do these people get that kind of money? A quick scan of Ms Rice’s career shows that she was employed a bit in (fake) “liberal” institution such as Brookings, and something called Intellibridge. Intellibridge was a front for selected investors, financial organizations and other corporations, a conduit for plutocratic money, to pay off the servants (and an outshoot from Kissinger Associates, the extreme right wing organization).  Ms Rice’s father was a governor of the Fed, the private-public device to funnel public money to private banks. 

So now Ms Rice is rich, filthy rich, she is fully blossoming as a servant plutocracy can trust. A full time leader of the democratic party. Filthy rich, literally, as Tar Sand oil, which is twice cooked, is very dirty.

So ecological organizations have meekly suggested Rice should divest from her polluting investments. It’s a human equivalent of grabbing a piece of meat from a lion: Rice may give up her reward, but she will resent those who forced her to do so. and the fact is, she was rewarded, enormously, by those who wanted to reward her, and will go on defending them, if she has any sense of decency.

Decency among scoundrels is part of the tribal instinct. Fundamentally, killing is a social activity (as killing en masse requires allies) so, paradoxically the more the killing, the higher the team spirit. Even among Nazis, decency to each other was high: they called each other “Kameraden” (“comrades”), spoke of “we” all the time.   

Rice has made clear, with her obscene investments, who her team is: the team of those who, literally, want to burn the Earth.

On September 16, 2012, Rice went on five major news channels to pontificate about the attack in Benghazi:

“our assessment is as of the present is in fact what began spontaneously in Benghazi as a reaction to what had transpired some hours earlier in Cairo where, of course, as you know, there was a violent protest outside of our embassy–sparked by this hateful video. But soon after that spontaneous protest began outside of our consulate in Benghazi, we believe that it looks like extremist elements, individuals, joined in that– in that effort with heavy weapons…We do not– we do not have information at present that leads us to conclude that this was premeditated or preplanned…”

in other words Rice says that it is free expression, the First Amendment, that is culprit in causing the Benghazi attack. Nowhere does she mention that an enormous Salafist base was tolerated, or known to be, close by.

This is wrong in several ways. First the concept that a “hateful video” can “spark” deadly protest.

Second and more importantly, it is wrong to believe that there was such a thing as a “hateful video“. There was a grotesque video, the “Innocence of Muslims“, true. But the pathetic video just faithfully illustrated what is, incredibly, said about Muhammad in the Qur’an, and the most sacred Muslim texts. To wit:

Muhammad married a girl, Aischa, who was 6 years old, and had sex with her when she was 9. Yes, Muhammad killed much more than a thousand men, yes, he did not know how to read and write (differently from his first wife, a rich business woman), yes, the cousin of his wife was a professional Christian monk, and he told Muhammad that it’s Archangel Gabriel that met him in the desert, yes, God had allowed Muhammad to marry as many women as he pleased, and that pleased him a lot, including with Jewesses (and a furious friends’ wives). More can be said that is highly distressing, and the short video did not say.

OK, the video represented a sexual practice that is not alleged in the sacred Muslim texts. Thus one can only conclude that those who protest about the “hateful video” protest about a precise sexual practice, benign between consenting adults. Curious that they do, as they find completely normal that the great Prophet Muhammad had sex with nine year old girls. The only conclusion is that they are sexually obsessed (one way, they love pedophilia, at least when the Prophet does it, and another, they find licking bushes so abhorent, they call it hateful, denigrating of Islam, surely the prophet of child molesting  would not do such a thing!)

It remains that when Rice, and those excited Muslims in Pakistan, call the video “hateful“, they call the Qur’an “hateful”. Outrageous company between Al Qaeda’s theses and a member of the cabinet? Not that much. The USA has long instrumentalized Islam, because Islam, thanks to its Fascist Principle (Qur’an Sura 4, v 59), is friendly to dictators and dictators can be made friendly to those who own the USA. Result? Lots of oil trading is controlled by the USA and its associated plutocrats (many based in Switzerland!), and the profits get recycled through New York and London.

So what is it with Rice? She is rich, and Rice was obviously made rich by the likes of those who want pipelines carrying the most polluting oil to be built, and Tar Sands to be exploited.

The battle about Rice is a small symbolic and pragmatic move in a vast picture.

The essential strategy of the USA in matter of energy used to be that it did not matter how dirty one got, as long as one provided the USA with cheap oil. That was the sense of the pact between F. D. Roosevelt and Ibn Saud in 1945. It was the time of dirty dirty: the USA had left France and Britain fight Hitler alone in 1939, while helping the later not so discreetly. Then at Yalta, the USA had given half of Europe to Stalin, knowing perfectly well that Stalin had massacred at least 22,000 of the Polish elite at Katyn (that the USA knew was revealed very recently). In the end, Europe was hopefully lethally wounded and certainly half crushed.

Thus the Uncle Sam was in better position to free the Middle East, and the Arabic countries, from Franco-British control. It needed an ally, and that ally was Muslim Fundamentalism. Carthage used to do this kind of things, with mercenaries. It famously backfired, as the mercenaries rebelled. Similarly, the USA has been facing a rebellion of Al Qaeda, a formation it basically created to wage war in Afghanistan against republican socialism, starting in the 1970s.

Co-existing with the likes of bin Laden has proven an embarrassment. Although the American people still seems unawares that Bin Laden was a product of the CIA (and its Saudi alter ego), the war against Al Qaeda has spread ever more, leading to Al Qaeda like formations all over, from Mali to Indonesia. OK, right it’s good for the military-industrial complex. However the deficit is too big to support the latter any longer, that extravagantly.

Way out? Well, the USA could have done like Europe, and chose the road of higher energy prices, deploying more advanced technology. But it did not, as it refused to take part in the Kyoto Protocol. Now in Doha, Qatar, Kyoto was just extended. It boils down to 15% of humanity doing all the efforts. 15%, yes. Mostly made of Europe, a heavy burden.

If Europe wants to let itself be exploited, that’s fine with the USA.

Europe was ruled by various philosophies, with the liberal-let’s-throw-money-to-the-rabble-and-especially banks presently in power. The USA itself is ruled by several philosophies, but the hierarchy of those is easier to figure out. Long mercantilist (a technical term), as a practical governmental policy, it has now become increasingly, since Reagan, plutocratic max. The magically rich Rice is another symbol of that choice: if the plutocrats have chosen Rice, it does not matter if Rice is obviously corrupt for all to see.

It’s actually even better, that one can see that Rice is on the take. It flaunts that the way to get ahead, is to become lice. Because Rice becomes the symbol that money rules, and so it can, assuredly, buy itself ambassadors, cabinet ministers and Secretary of State. It can buy the highest government officials, and then flaunt that fact, and people have to kneel and submit. As Sec. of State is the third authority of the state, in the USA, to contemplate something more absurd than that, one would have to observe the president of the USA invest with several of the world’s top pollutocrats.

Hence the American rush to fracking: it brings energy and autarky, yes, but it’s also symbolic of the rule of the exploitative philosophy. Ten years ago, the USA was planning to import Liquid Natural Gas. Now, in a sudden reversal of fortunes, it’s planning to export it. The USA has so much gas, from fracking, that the USA price of the stuff has collapsed 80% below world prices (the gas is hard to transport, although a desperate Japan had the Ob River inaugurate the North East passage, in winter, to bring in at least ten Hiroshimas worth of semi clean gas energy in).

USA oil production is supposed to pass Saudi Arabia within 7 years. A resource, energy and food independent country with state of the art tech does not have to worry about its currency. It could live in autarky. In this light, the will to appoint Rice can be viewed as the will to make still another pact with the Devil. For those who are real dirty, the fact that Rice is dirty, makes her clean.

After World War Two, many people who should have known claimed they had no idea the Nazis were so dirty. And how could have anybody guessed. Well, that’s why it’s called guessing, I guess. How dirty could Rice be?

During the 1994 genocide in Rwanda, Rice, a well connected arrogant know-nothing, hungry to serve powerful, crushing masters, leveraged her dad, well connected as he was, in plutocratic finance. She is, like Geithner, a princeling (same idea as in China). Ms. Rice advised the Clinton White House to stay silent about the genocide in Rwanda. She claimed to be afraid that doing so would have an electoral impact. How come a girl who knew nothing about Africa, could advise to let millions of Africans die? (I have been raised in Africa, mostly Black Africa, so I care more about that subject!)

The dirty business of the USA in the region, involves high tech minerals such as Coltan. It is still going on. The resulting wars have killed at least 6 million. (If six million Africans die in a forest, does that make any noise in Washington?)

And Rice is directly implicated. Ms Rice may have had deeper motives than electoral ones in 1994, such as helping along Mr. Kagame (master mind of the guerilla that triggered the holocaust in Rwanda twenty five years ago, now dictator of Rwanda, and also master mind of the Coltan war that killed five millions, while feeding with weapons and money the M23 force invading Kivu, in Congo!) 

As the United States’ representative to the United Nations, Susan Rice worked hard last year to block the release of a U.N. experts report detailing Rwandan atrocities in the Congo. To go around Rice, the report was leaked. Question: did Ms Rice get money from high tech companies or African “new leaders“? It certainly looks like it. She certainly did not get all this money from her government salary.

In September, Rice paid fervent tribute at the funeral of the late Ethiopian dictator, Meles Zenawi (who died unexpectedly at a relative young age). She praised the bloodthirsty plutocrat unreservedly as “uncommonly wise, able to see the big picture and the long game“. “Long game“, really? By long game, she apparently made a distinguished reference to all the dissidents and journalists who disappeared after being hunted down. In Polynesia human game was pudically called long pig“.

We are very far from a proximal, global solution such as a worldwide, global carbon tax, right away. Instead the world has been put on a somewhat similar strategy to the one the USA followed in the 1920s and 1930s: have the USA pose as neutral, isolationist, while making a bad situation ever worse, in the hope that the ultimate cataclysm, just as in the 1940s, would turn to the advantage of the USA. Dream on.

For the sake of civilization, it is better not to nominate as Secretary of State someone with genocidal connections. If nothing else, it just looks so bad, that it boosts the prospects of Pluto. Indeed the more satanic behavior is in full view, fully rewarded, the more “We The People” gets used to be led by Satan. So it would be, by making the apparent queen of genocide the third in succession to the throne. Now, of course, this is exactly what plutocrats want, it would be another important step in habituating the commons to be overlorded by the Dark Side

Many Tibetans feel, and it is arguable, that China is conducting a genocide in Tibet (there is a technical definition of “genocide” that seems to fit very well). The pain is so great that, this year alone, dozens of young Tibetans have killed themselves by fire, burning alive. How could China take seriously a Secretary of State that was, herself, involved with genocide? How could any other nation?

***

Patrice Ayme

***

Practical conclusion: Senator Kerry who is superbly qualified, and would have been elected president in 2004, but for G.W. Bush’s dirty tricks, should be nominated Secretary of State. BTW, differently from the conniving, conspiring Rice, Kerry was elected many times, and is senior senator of Massachuset.

Note: Starting in 1990, France intervened several times in Rwanda, trying to blunt the violence. Under UN mandate. In 1994, France evacuated civilians in Operation Amaryllis, and finished the Rwandan civil war with Operation Turquoise.

French Rafale Versus USA Corruption

August 12, 2012

TAXES FOR STEALTH CORRUPTION? THE F-22, F-35 SCANDALS.

The F22 Raptor is the USA air superiority plane. It cost too much and proved too fragile. In USA style stealth, sharp angles are used because only reflections in discrete directions come back. So the USA style stealth plane acts as a diamond: a bright radar flash is followed by nothing, as the plane has moved slightly in the next sweep, and the sharp reflection went far away.

In 2009, in the United Arab Emirates, F22s Raptors met French Rafales in mock combat. The French weekly Air & Cosmos released an instructive picture. Here is a F22, in the gun sight of a Rafale:

USA F22 Raptor In Crosshairs Of French Rafale. The Outmaneuvered F22 is Fully Vectoring.

 

[All the targeting data was removed.]

The word “blasphemy” comes to mind. To put things in their proper context, the Rafale is a superlative bomber and ground attack plane. Contrarily to the F22 Raptor, it was not built just for air supremacy.

In the above picture, the Raptor is obviously maneuvering hard in the vertical plane: its nose is up, and one can see the bright flares of its two engines in post combustion, as they vector as hard as they can (see the supersonic shockwaves in the white jet exhausts). The F22 is trying to escape an inverted Rafale pulling with a lot of acceleration (“gs”) toward the ground. The F-22 is clearly not in a position for a gun or an infrared missile shoot (“fox2“). The thrust vectoring the F22 is engaging into is killing its speed. if the Rafale does not shoot it right away, it’s going to be the biggest slow moving turkey the sky has ever seen, within a few seconds.

Also remember that the Rafale carries its missiles externally, and normally the F22 does not (because, if it did, it would lose stealth). So the Rafale is capable of an instantaneous InfraRed missile shot on the F22, should the latter somehow escape the Rafale’s 30 mm gun… 

Radars use intermittency to detect a moving object, so, if a reflection is followed by no reflection as the target has moved slightly, the electronic connected to the radar sees nothing.

One of the many disadvantages of USA style stealth is that sharp angles are not very aerodynamic, resulting in all sorts of problems, including fatigue of the exposed parts of the plane. Thus some of the plastic of the F-22 wore off, and had to be replaced by titanium (which is highly reflective).

The F22 Raptor plane is made of toxic polymers and epoxy glue, and technicians have to wear mask and gloves when approaching it. Cough and actually asphyxia have been reported in or around the plane. Making it the only neurotoxic plane in the world.

The F22 also cost 400 million dollar apiece. (And the F-22 lacks more recent features such as High Off Bore Sight and Helmet Mounted Display, let alone a very long range missile such as the Meteor.)

The F-22 was thus replaced by the smaller, cheaper, much slower F-35. With just one single engine. Four hundred (400) billion dollars has been spent on the F-35, and still, more than ten years later, it has not dropped a bomb, fired one missile, or a single canon shell… 

The F35 program is actually the most expensive defense program, ever. By a very long shot.

By comparison, the Manhattan project cost 20 billion dollars, by the time it had dropped two nuclear fisson bombs on Japan and forced its surrender (and the hurried suicides of a few of the military plutocrats who terrorized Japan).

The F35 cannot cruise at supersonic speeds (the Rafale can cruise supersonically, and stealthily, with ten tons of weapons hanging outside). One may wonder if the F-35 could have caught up with the 9/11 terrorists… (After all, F15s, which fly much faster, could not, but at the time nobody expected that the USA would be attacked the way France had been in 1996, by suicidal highjackers!)

Now for a somewhat peaceful sight:
 

Rafale (on the left) and Typhoon Eurofighter (built respectively by French Dassault and part-French EADS, the company that owns Airbus). Both planes were successfully engaged in Libya, although:

1) The Eurofighter needed assistance from Tornado bombers to… bomb. (The Tornadoes detected and painted targets for the Eurofighters’ laser guided bombs. Eurofighters can’t bomb on their own!) 

2) The Rafales were fully autonomous, and proved capable, using their active stealth, to search and destroy enemy missile batteries and radars of a fully functional air defense system. 

3) Somehow American business men and their friends in Washington were able to persuade some of the nations which (helped) built (and purchase) the Typhoon Eurofighter to pitch into the F-35 Lightning II program. That’s very remarkable. 

The United Kingdom, which is in a depression (its GDP numbers are worse than in the 1930s) and bankrupt Italy are now funding a useless, immensely expensive plane… made in the USA. As if money grew on trees, or, at least, so it does in Washington. How much money has been passing under that table? 

Rafales recently visited Great Britain. Instructions were issued to British pilots, with their “Typhoon” Eurofighters, to NOT engage in war games with French Rafales. 

Is it all bad with the Typhoon Eurofighters? Well, not at all, as long as they stay away from Rafales, and go shoot F22s!

Lockheed Martin haughtily claims: “the F-22 is the only aircraft that blends supercruise speed, super-agility, stealth and sensor fusion into a single air dominance platform.”

In mid-June 2012, 150 German airmen and eight twin-engine, non-stealthy Typhoons arrived at Eielson Air Force Base in Alaska for an American-led Red Flag exercise involving more than 100 aircrafts from Germany, the U.S. Air Force and Army, NATO, Japan, Australia and Poland.

Eight times during the two-week war game, single German Typhoons flew against single F-22s , simulating close-range dogfights.

Conclusion? In a close-range tangle — which pilots call a “merge” — the bigger and heavier F-22 is at a disadvantage. German Typhoon pilots said that, when flying without their external fuel tanks, in the WVR (Within Visual Range) arena, the Eurofighter proved to be better than the F22 Raptor.

The F-22 tends to lose too much energy when using thrust vectoring (TV): TV can be useful to enable a rapid direction change without losing sight of the adversary but, unless the Raptor can manage to immediately get a kill, the energy it loses makes the then slow moving plane quite vulnerable!

(Also the F-22 burns fuel like crazy during TV, and it has a short range to start with, due to its poor aerodynamics, and enormous engines to push its brutal shape.)

The Raptor fights well from beyond visual range with its high speed and altitude, sophisticated radar and long-range  AIM-120 AMRAAM missiles. Yet the AMRAAM maximum range is around 100 kms, less than the Meteor missile used by the Typhoon (and the Rafale!).

At this point, the partisans of the F22 will start their usual USA superiority sing-song. They will say, the Raptor is so stealthy, outside of visual range, it will sneak onto non stealthy Typhoons. And yet, this is another lie.

At a distance of about 50 km, the Typhoon IRST (Infra-Red Search and Track) system can find even a stealthy plane “especially if it is large and hot, like the F-22 a Eurofighter pilot said. (Another reason for compact beauty, as in the Rafale!) 

In any case, the Typhoons killed several Raptors during the Red Flag Alaska. On one day a German pilot quipped: “yesterday, we have had a Raptor salad for lunch.

Other problems with the Raptor: it chokes its pilots, and its long range missiles do not work when it’s… cold (like it tends to get, up there in the sky). Both problems have been with the plane in the last two years, and it’s supposed to stay close to a base all the time!

Ah, and what of the Rafale already?

Well in an exercise, Rafales and Typhoons met, 9 Typhoons got “killed” while a single Rafale was disqualified… for flying too low. “Super agility“, anyone?

So, taxpayers, to your purses! The stealthy Military-Industrial Complex wants more from you. Much more. Some will say: wait a minute, why all these useless planes?  Well, because after charging two billion dollars apiece for the completely useless subsonic B2 bomber, the plane makers of the USA realized they had found a story taxpayers bought with relish: the STEALTH plane. It was a nationalistic story: only the USA had stealth planes. The American public loves nationalistic, only-in-the-USA stories.

One difference between the USA and France is that one needs more nationalistic fervor to keep the USA together (the same applies to other countries, and the less they hold together naturally, the more strident the nationalistic fervor!). The French are more blasé: they are stuck together, anyway (although they feel it would be more elevated not to be). 

OK, most publics are nationalistic, but can the most advanced civilization be the most nationalistic? Well, no. Nationalism is a form of hubris, and there is no stealthier poison. Athens tasted of that delicious poison, the poison of hubris, the poison so many in Germany, helas, even while torturting Hellas, tasted with relish. 

All and any argument resting on nationalism is logically suspect, it’s a contaminant. 

After building and operating for more than a trillion dollar of these useless planes, the F-22, the F-35, more money will be needed… For weapons that really work. Thus a double subsidy for the Military-Industrial Complex. One for useless weapons, and then one, absolutely necessary, for weapons that actually work!

***

Patrice Ayme 

Aphorisms, April 2011.

April 28, 2011

 

No Greenhouse, The Tornadoes Blew It Up…

The USA is the country which contributes the most to the emission of CO2, either directly, or indirectly, through its factories in China, fed by the power of radioactive, mercury laced coal.

The most deleterious consequence of CO2 emissions is the acidification of the oceans, which are turned into carbonic acid, according to the exact same reaction which makes all carbonated drinks interesting.

Another consequence of the CO2 poisoning of the biosphere is the rise of atrociously bad weather, as the energy pumped into the atmosphere goes up. That makes the atmosphere, well, much more energetic.

North America and Eurasia are the only continents which spread appreciably from the polar regions to the tropics. The continents do not have the thermal inertia and conductivity of the oceans, so air masses passing over continents are not rendered mild, as they are above the oceans. However, Eurasia has gigantic mountain ranges enforcing a continuous separation between the glacial north and the hot south. Those ranges spread from the Pyrenées in the West to unknown ranges in Eastern Siberia. The polar and tropical air masses are thus segregated in Eurasia.

In the USA, mountain ranges are absent in the Middle West, so polar air can battle hot humid air from the gulf of Mexico. As the greenhouse gets worse, the death toll in the heartland of the USA keeps on climbing. More than 300 dead on the outbreak of April 27-28, 2011.

An aggravating  factor is that so many American citizens live in so called “mobile homes”, shacks which were once on wheels, and have no basement (to take shelter in). Only Gypsies live in such conditions in Europe. And even then, not really, that would be unlawful. so the Gypsies mobile homes are still mounted on wheels, ready to take off before the local authorities get really irked.

Thus, the socio-economic organization of the USA is directly  at fault in the tornado massacres: too much of a consumer, debt driven economy (bringing the CO2 up, and the infrastructure down), too much dire poverty (hey, we want the rich to boast of their “philanthropy”, with their 17% tax rates, and no taxes on inheritance).

What is the plutocracy going to do about it? Don’t hold your breath. Probably pay some Stanford or Harvard professors to go around the Main Stream Media, to claim that the rise of energy in the atmosphere has nothing to do with tornadoes.

***

At War With China & Pakistan?

The Main Stream Media report that Pakistan has been urging Afghanistan to switch alliances from the USA led NATO to the holy alliance of the Taliban, Pakistan and China.

I have said all along that such was the real threat. But now it’s a problem, and it’s in the open.

What do these three have in common? Dictatorship. In other words forms of plutocracy which Lenin was not aware of when he was still healthy, and became suspicious of only when he was on his death bed, and (ex bank robber and terrorist) Stalin had taken control of the Soviets.

***

Syria, Or Why Tyrants Love Tyrants:

Some have protested that the leading democracies attack the bloody Libyan dictatorship just for its oil, instead of the blood it spilled over the last 42 years.  

But not so. First Libya does not have that much oil. It should be enough to give all 8 million Libyans a good life, for a little while longer, but Libya is not Saudi Arabia. Libyan peak oil is soon, Saudi peak oil not before another 15 years or so, and at considerably higher rate of extraction.

Politically; the French succeeded to persuade China, Russia and Brazil to not stand in the way at the United nations. The French have important high technology transfer programs with them all (nuclear submarine with Brazil, nuclear power plants with China, aircraft carrier/command ship and high speed trains with Russia). Economic ties (gas, cars, steel) are also playing an important role (even with India). But now Britain, France, and the USA “shall not rest” until Gaddafi is out.

So the muscular regimes or dictatorships, or plutocracies who have no love for their own minorities, and want to keep on cracking down in all serenity, have now understood the danger of democracy spreading. They object strongly to threats against Assad and his dictatorial system, because they know they are next. So this time, whatever the French want, they will try to veto them at the UN on intervening in Syria.

But of course, by the time France decided to intervene  in Libya, Gaddafi had killed thousands already, and Assad is not yet there. Once he gets there, and he will, the West, and democrats in general, will be better able to distinguish friend from foe, and the cleverly righteous from the stupid cowards…

***

 

Creeping Irrationality.

As the Roman empire matured, degenerating ever more, irrationality gained. Ever more. The same process can be observed nowadays. Why so?

Our leaders, the plutocrats, and their sycophants, are uncommon. By definition. Anything having to do with the commons is antagonist to them. Common sense is not just their enemy, but thoroughly alien.

There they go, per the grace of their god. What should they fear? Revolution? There will be no revolution as long as the debate is not about the true problems. So, instead of talking about the corruption of the political system by high finance, and the feeding of high finance with common tax money, or the collusion of international plutocracy with the dictatorships, the propaganda makes it so that the Main Stream Media talks of other things: overstretched Medicare in the USA, overstretched peripheral economies in Europe.

***

Is America Tribal? Or Just Rendered Stupid?

So Obama went on his knees, and produced the “long form” of his birth certificate. Trump, the plutocrat, proclaimed victory.

It is interesting how, 150 years after the Secession War, Americans are still basking in the glory of having a two track citizenship. There are real Americans, those, born in the USA, who can become president. And then there are second rate citizens, who can be deported, and are not good enough for the US presidency.

Let me be clear here: the worst problem is not with republicans. Most of these, in polls, did not believe that Obama was born in the USA. This showed, as usual, that most republicans have a diminished sense of reality. The worst problem was with the left wing media, which did not realize that, by being indignant about where Obama was born, they made the point of the racists, and the partisans of the “us versus them” mentality. Why? Because it OUGHT not to matter where Obama was born. And, moreover, on the letter of the law, it did not matter. So the left argued as an extreme right, while thinking of itself as, well, on the left!

So much for human rights, and equality! It is alarming to see that, 150 years after the Secession War, people still do not seem to understand that violating the neighbor’s rights violate their own, and that the tribalism of geographical origins is nothing to defend.

Let’s notice in passing that Sarkozy, the French president, himself the son of an immigrant from Hungary, suggested that naturalized citizens ought to have fewer judicial rights. But the outraged reaction of French public opinion, and of French democratic institutions, such as the Constitutional Court, made Sarkozy gave up completely on the idea. Having entertained it brought down Sarkozy in the polls, as low as a French president ever got. 

What is particularly grotesque is that millions of American parents have lived overseas, giving birth to American Untermenschen… Even if the families of each parent had been American for generations. And still most Americans and the Main Stream Media consider them to be a lower caste.

Oh, and what does the Constitution of the USA say?

The Constitution reads as follows: “No Person except a natural born Citizen, or a Citizen of the United States, at the time of the Adoption of this Constitution, shall be eligible to the Office of President; neither shall any Person be eligible to that Office who shall not have attained to the Age of thirty five Years, and been fourteen Years a Resident within the United States

The US Constitution does not say you have to be born INSIDE the USA to be a natural born Citizen.  Actually John Mc Cain was born in Panama. True, the US Supreme Court messed up the “natural born” common law idea by deciding at some point that Native Americans were not Americans. (That was rescinded in 1924.)

Barack Obama’s mother was a citizen, a child of two natural born citizens who always lived in the USA. She lived in the USA for more than seventeen years before his birth. That made Barack Obama a natural born Citizen no matter where he was born. One would think.

Hence, Obama is a natural born citizen from two independent criteria. So why to talk about this non subject with so much enthusiasm for so long? Either the Main Stream Media is stupid, or wants people to be stupid, or both.

***

How democracy Turns Plutocratic:

A democracy is as wealthy as the many who compose it. It is complicated to keep people individually well provided for. That is a seduction of plutocracy: only the wealth of the few matter matters, and they call that an economy. And how does plutocracy happen? By transferring wealth from the many, to the few. The few (oligoi) manage (nomos) the house (eco), and the many are left to live in the outhouse. There we go.

What we have now is more a politically driven phenomenon than an economic one. The fact that the presidents of the USA, for decades, have been immensely wealthy men, and similarly for most of the American Senate and Congress, has a lot to do with it. The extent of that corruption is different from that occurring in normally functioning democracies.

***

Geological Realism Against Unreal Plutocracy:

The entire Pacific plate seems to be on the move. From archeogeological studies, we know that the 9 Richter Cascadia quake entails a San Andrea quake south.

And look at the geography of California: it sure appears as if the land West Of the San Andrea fault, a part of the Pacific Plate compacted by the American plate, periodically falls into the ocean. How nice a tsunami does that make?

Although the San Andrea is classified as a “transform” fault (sideways motion), clearly the entire West Coast is, overall, a massive subduction zone, a giant pile up (a plate is sinking below another, never to be seen again).

Indeed the American plate heads westward ever more, crushing and… subducting the Pacific plate. As proven by the volcanic range which extends from British Columbia to Mexico, including on the way the massive Long Valley Caldera.

So the fact that the Pacific plate one moves north westward does not make the overall subduction go away. Whatever geologists say. But of course, if the geologists assert that no subduction quakes can happen in California, they ingratiate themselves to the powers that be, and their departments will be well funded. Reciprocally, should their insinuations irritate the powers that be, they will be, at best, ignored. At worst, their departments will get de-funded.

Farfetched? Exaggerated? How many tsunamis do you need to be warned? Japan was hit by three massive tsunamis in 30 years prior to 2011. It was known that the Senai plain had been hit in 860 CE by a tsunami, which went four miles inland. How many miles do you need?

Geologist Shishikura and his colleagues told the government. The powerful Trade Ministry dismissed the evidence. Trading first, tsunamis cannot be traded. Nuclear power plants were left by the sea, defended only by sea walls corresponding to recent wave activity. Fukushima had a 5 meter wave, so they put a 5.5 meter wall. When the tsunami came, it was 15 meters.  

Thus, ultimately, expect a Richter 10 quake along the West North American coast someday (after all, there was a 9.6 Richter quake in Chili, in 1960, same plate, similar situation).

But 10 Richter quakes are not something plutocracy has to worry about (its recent, expensive homes being the most capable of resisting quakes). it has only to worry about geologists, engineers and construction types working hard. If they work so hard, who would pay for them? The plutocracy. And that is insufferable. The plutocracy does not need arrogant geologists and engineers with their science, and , contractors with their big muscles.

The plutocracy needs valet parking, servants, servers, valets, private security, goons, sycophants and paid escorts.

Thus West Coast media and politicians ignore the quake danger, they are paid to ignore the danger, however indirectly, another aspects of neglect and complacency which has its root in the class structures of the USA.

***

Riling Against High Speed Rail Because Is Where The Money Is:

University professors play an important role in fabricating an ideology compatible with the plutocracy in power. Under the USSR, professors were generally in the pocket of power. When Sakharov, or Solzhenitsyn turned against their masters, they  were rare exceptions who proved the rule.

A week or so ago, a Stanford professor blasted High Speed trains in the USA, claiming that, worldwide, only two Very High Speed lines are profitable. One in France, the Paris-Lyon line, one in Japan, the Osaka-Tokyo line. I don’t know about Japan, but the statement is blatantly false about France.

This is subtle ideology transfer. The gross message: “High Speed Rail is bad”, is accompanied by disinformation, if not lies. Indeed  the definition of High Speed Rail is 300 km/h in France, but only 200 km/h in the USA. Most of the French main lines go at 200 km/h. Most are profitable (SNCF, a private company, being overall profitable, although most of its mileage is internally subsidized  small lines in the boondocks).

In truth, France’s very high speed lines are profitable. So much so, most use double deck trains. The Paris-Lyon-Marseilles, Paris-London, Paris-Brussels  lines are very profitable. New lines are established with a mixture of private and local state financing, and would not be engaged in, if not guaranteed profitable (the local city will not sink municipal funds into nothingness).

Electric trains fed by nuclear power have at most 3% of the CO2 production of other means of transportation. Something to keep in mind next time very warm air mixes with cold air in the neighborhood.

***

Patrice Ayme

Small People

June 18, 2010

 

POWER TRAMPLES "WE THE SMALL PEOPLE".

Abstract: There are great people who are simply grand (Obama, the CEO of BP, Goldman Sachs, Warren Buffet, Jamie Dimon, top bankers and their alter egos, hedge fund managers, etc.)

And then there are "small people", the ones the grandees "take care of". Those can be killed at will, US citizens, or not, for something nefarious such as running an irritating website. (I mentioned this before; Jon Stewart has it, with picture and some humor, in http://www.thedailyshow.com/watch/tue-june-15-2010/respect-my-authoritah).

We have seen this contempt for most of the People before: it is known as the end of the Roman republic. Later it happened again, and it was called the Middle Ages. The genuine contempt is mixed with smoke, mirrors and distractions to dissimulate the collusions and conspiracies between self declared grandees of a sputtering democracy drowning in oil, empire, and plutocracy.

The truth is that the government of the USA was amazingly competent with drowning in oil the Gulf of Mexico. As usual the government made the point that it has been making since Nixon’s reform of US health care. Non elected grandees (BP, Goldman Sachs, etc.) know best, rule best, get away with anything, especially smoke, mirrors, lies and empty promises.

From Afghanistan (initially loaded by the USA grandees with civil war, bin Laden and Taliban, decades ago) to diverting money creation by Banks Too Big to Fail into derivatives bets with each other and other plutocrats, to the… well, the problem with that well, the one that it is not doing too well.

So the Gulf of Mexico is turning into the Gulf of Bitumen. The massacre is not hidden on the other side of the Earth this time. embarrassing. The plundocracy is so exposed for what it is, that even average Americans may get irked to the point of doing something. That would mean taxation. Taxing fossil fuels. As they do in Europe. Big time. But Obama did not utter the word.

Instead he stuck to the same platitudes as his eight predecessors on the same subject. He did not dare utter the one thing that made him different from them: creating one more market for Goldman Sachs (in Chicago, of course!) When the going gets tough, more plutocracy! So far Obama’s energy plan has consisted into an elaborate conspiracy with Goldman Sachs in Chicago, to make Goldman Sachs and associated plutocrats richer. Goldman Sachs will wear a cap, and then trade.

In his first Oval Office speech, Obama complained about the lack of research of the oil companies (which is curious, considering their giant research budgets, arguably the largest in the world).

In truth Clinton dissolved the Bureau of Mines, which conducted research that the USA now needs. So admirers of Reagan such as Clinton had a good time, cutting into the bones, and now People can swim and drink oil in the Gulf.

 clip_image001

USA oil made USA great. United States oil production peaked in 1970. By 2005 imports were twice the production. The debacle in the Gulf of Mexico will accentuate the drop off. So the USA has turned to coal: damn the CO2 to hell. The correct attitude is to turn to conservation, or, better said, efficiency. But small people are not that smart. Anyway, they do not decide what to think.

***

***

Here it is in a nutshell. The Chairman of British Petroleum, a tall, not to say majestic guy, grandly declared after meeting with President Obama at the White House: "He is frustrated, because he cares about the SMALL PEOPLE." (June 16, 2010.) At some other point the Chairman insisted, on the White House grounds: “We care about the small people!”

Ah, Obama and his alleged "frustration". "Small people" can be so frustrating, indeed, as one tries to health care for them. They are in the way of "bipartisanship". There are the worthy people, the "savvy businessmen", those with "talent", who need to be "rewarded", as Wall Street puts it, And then there are the small people. That is the way the Middle Ages came to be: a few great aristocrats on top, small people below. One could not be without the other.

[Chris Ison/Press Association, via Associated Press]

The yacht of the CEO of BP, left, sailed in the JP Morgan Asset Management Round the Island Race on Saturday, June 19, 2010. See P/S. notice all the “Small People been taken of” on deck.

***

The Chairman of BP promised to the president a 20 billion dollars fund, for the small people (he has a bigger yacht than the CEO). Whatever. For how good promises are, see the clip of Jon Stewart above. As the BP Chairman talked, one could not see his eyes. They were like slits on a blockhouse. It was obvious he was lying through and through. His eyes were hiding behind the slits. He kept on at it, with his slit eyes, for several minutes. Maybe he has some brain disease: dissimulitas maxima.

The Middle Ages did not start with an aristocracy, it was a progressive phenomenon. Initially there was a meritocracy, and kings were elected, such were the Germans who took over (Franks, Goths, Lombards).After a while only the Franks were left, with their queens, and laws against slavery. Rich Franks put their money in monasteries and their libraries. After the Muslim invasion of Europe, the Franks reorganized on a military model, and, for technical reasons (heavy cavalry) a military aristocracy came to be. The "best" ("aris") were on top, and then ever smaller people, scurrying below. Since the small ones were eating fewer proteins, they indeed became physically smaller.

The majestic BP Chairman, earning millions, prefers to enjoy his yacht on the pristine waters of the Pacific, we are told. A man of wealth and taste. He needs small people to serve his yacht, when he comes on shore, or his private jet, when it needs service. At the White House, it’s all about caring for the small people.

What is going on there, psychologically? Those who head the great conspiracies, I mean the great corporations, are, increasingly, in another world. Their incomes have augmented so much, that they identify psychologically with the plutocracy, rather than with the small people, those who labor below, in their own organizations. The BP CEO in Congress made it clear that he had no idea what his small

That was the whole idea of paying the CEOs, and celebrities that much: for them to champion the plutocracy, by joining it. Done. The word "plutocracy" is not used lightly:

clip_image002
[USA statistics from Business Week (1990-2004) and the Wall Street Journal (2005).]

BP has hired Goldman Sachs as an adviser. Curious, on the face of it, because Goldman Sachs is not a law firm, but a financial shark group (made into a bank from one minute to the next, by the fiat of Paulson and Geithner, so as to tap into taxpayer money, up to 60 billion dollars of it… Another case where the plutocrats walked all over the "small people").

Big people care about small people as they care about feeding the birds. As far as they are concerned, small people are losers, that’s all they need to know, and they keep away with promises never meant to be.

When watching some of the clips in Jon Stewart’s work, above, characteristic lying seems in evidence; something about the entire face not following the discourse. Cold eyes, the way Carter used to do it: laser cold eyes above, devastating smile of the great white below. Let alone reading from a teleprompter, because one’s heart has nothing to say, and even emotions have to be learned by rote. "I am furious" says Obama, and, as many commentators pointed out, he was not furious, he just knew he was supposed to say that. Hard, for him to be angry, without the teleprompter.

Representatively elected people, not only get votes, and money to buy those votes, but, as they get the money, they network with the plutocracy. Thus they get ready to walk all over the "small people".

This game worked fine, as long as it was hidden in Iraq and Afghanistan. But now the pathetic show is in full view. In the Gulf of Mexico. The incompetence of the government of the USA has been blatant. Said government found natural to be the ward of a private, foreign company, because it was headed by big people. Big people breathe together (con-spirare).

The incompetence of the USA government has been nearly beyond comprehension. Local authorities ought to have been given full powers to close the passes of barrier islands. Instead, they have been threatened with jail. The Commander in Chief ought to have accepted, as a matter of principle, the help of all and any countries (there is supposedly a law against it, but since massive violations of the Constitution are ongoing, what’s the big deal?)

Truth is, this is the worst oil spill ever, and that was obvious as soon as giant flames, as tall as a skyscraper, towered above the drilling platform for days. No need to have a Nobel Prize to understand that. Truth is, some people need a teleprompter to think.

Truth is there were known problems with the Blow Out Preventer, and BP, Beyond the Pale, ordered to keep on going.

Truth is the USA government ought to have ordered at least three relief wells on day one (relief wells can fail). Hence the interest of putting the military in charge on day one: generals would have read the statistics about relief wells, and acted accordingly.

There are only two relief wells now, and the first one was started 12 days too late.

Truth is, the oil spill could get way worse. Because what is passing through the BOP is a high pressure (2,000 pounds per square inch of pressure gradient through the BOP) of a scorching mix of oil, methane, sand and other rocky debris. The blow Out Preventer is eroding. Truth is, the Top Kill and cutting the pipe antics have made the situation worse. (Rumor has it that Dr. Chu displaying common sense, ordered BP to stop Top Kill, which was obviously eroding the pipe, one could see it happen on video.)

Meanwhile the disasters in finance and Afghanistan pursue their ways, unchallenged, eating through treasure, economic opportunity, lives, while reinforcing ever more the plutocracy and its conspiring agents.

The mission in Afghanistan is a contradiction, but small people do not understand that. instead they are told to respect Islam (since when are wars about religions?). Why? NATO defends the Afghan Constitution, which is the Holly Qur’an. Just like the Taliban! So NATO itself does not differ ethically from the Taliban. It’s Taliban against Taliban, one born there, the other wanting all the good lithium in Afghanistan. Ah Lithium. Another thing small people don’t understand, as they crave for electric everything.

We are being told that mining Afghanistan is worth trillions of dollars. A modern reason for killing Afghans has been found at last. Better than the Qur’an. Just as with the invasion of Iraq, the good journalists at Fox News explain that now Afghanistan will be able to pay for the war imposed on it. See the article in the New York Times:"US Identifies Vast Minerals Resources in Afghanistan" .

As far as the grandees are concerned, contradiction is good: it confuses the small people, it makes them doubt their own ability to think, and it makes thinking a painful exercise, discouraging it. Thus average US citizens tend to think only losers engage in big thinking (although this is changing from the likes of the Tea Party, Fox News and Glen Beck, who try to think out of the box, however erroneously much of the time).

Obama himself is exceptional at fostering contradiction: in the video above, June 15, 2010, Jon Stewart, of the Comedy Channel, runs old Obama clips from before 2009, comparing them with the policies of the Obama government. They tend to be exact opposite of each other. In some important ways, Obama is doing worse than Bush. It’s not about reading emails without warrants anymore, it’s about killing citizens, a right the kings of France and Britain did not have before their revolutions.

Mr. Steward concluded that Obama’s complete change of politics has everything to do with power. Obama just does what it takes, when he must, in his power moral system, because, as many before him, he is persuaded that he can be entrusted with power . As I already said, what Stewart put together is worth watching:

http://www.thedailyshow.com/watch/tue-june-15-2010/respect-my-authoritah

Presidents of the USA are so surrounded by the trappings of power, going around with a veritable army all the times, that they get drunk on it. Never mind that this power is not any more real than the inebriety caused by alcohol; the important thing is that they believe in it, and so do the People. It is important to the plutocracy that the People and its representatives play like children: this way, they will not get to know reality.

Small people are becoming nothing quickly. As Stewart puts it, the president can sit, stroking a cat, and order small people killed at will. It does not matter if those small people are Pakistani or US citizens. Initially they were Pakistanis: that was for practice, to establish a precedent. Now the practice is accepted by all Americans, so it can be turned against US citizens.

No need to bother with a conspiracy. No, it can be done in full sight. It has to be done in full sight: after TARP, Transferring Assets to Rich Plutocrats, things are done in plain sight, people have to learn that new submission they have accepted to be submitted to. After all the survival of the plutocracy is at play. Plutocracy is a bit like a rocket taking off now: a delicate moment. All this power unleashed onto the small people, but something could go wrong, as it is cranked up. (In imperial Rome, the victory of plutocracy looked complete and absolute, and it was pretty much for two centuries, until Septimus Severus, an African born general who founded the Severian dynasty; then the army took control; after that generals fought generals. The Senate and the plutocracy was thereafter increasingly sidetracked, while more and more brutal and uneducated, barbarian generals reached ever higher, until they made an alliance with God Himself, and plutocracy got into the mix.

Killing some citizens in full violation of the US Constitution will frighten small people into submission. Thus power speaks. Power is, power just goes, crushing everything in its way, when it is greater. It can even tunnel through where it ought not to go. This is the lesson of (quantum) physics. Power dominates all.

Some will say that this is not true, that the US presidency is weak, and so is Congress. Some will say that the bureaucracies in state, defense, intelligence agencies, etc are the real sources of power. However, it is true that the Senate can easily block everything, because many senators are from very small states, and they can easily be bought by the plutocracy, and they are. Ultimately it is the plutocratic-political complex that is the greatest source of power. (Eisenhower’s military-industrial complex, and Nixon’s health care-industrial complex, and Reagan-Summers financial-industrial complex are portions of this greater whole).

The American Constitution as it is practiced now is a grotesque imperial show. The respect for the Supreme Court (which selected Bush as president, and recently declared corporations to be persons who can give as much money as they want to their political pets), or for presidents who violate blatantly human rights (Bush with torture, Obama with extra legal executions of US citizens) is where the problem lays. Those violations are in plain sight. Probably because they are supposed to create precedents, legal or otherwise.

That is why matters got worse under Obama: Bush’s work, dismantling the spirit of the US Constitution, is acting as a precedent for Obama. Why the grotesque imperial show? Because it instills fear and awe in the population. Both in the USA, and worldwide (if the US army gets beaten in Afghanistan, the fear will be replaced by rage, though: a non linear effect, to be fought at great cost). It also distract the population away from whom really pulls the strings, namely those with serious money.

The US president, the US Congress pose as the cause of it all. They wrap themselves into authority , and they insist: respect-my-authoritah. Thus they hide that they are at the beck and call of the plutocracy.

It can be seen all over. The same representatives who gave trillions in tax breaks to the hyper wealthy become spastic when extending jobless benefits for a few billions. Why? Because all they do is to please the hyper wealthy, in the hope that, when they graduate from their political careers, they will be rewarded. And they are. They do not want to be small people. And they are not. Corruption is a dynamical system, with a strange attractor.

***

PA

***

P/S: June 19, 2010. A BP spokeswoman says BP chief executive Tony Hayward is attending a yacht race off the Isle of Wight in southern England. So not only the Chairman of BP has a yacht, but so does the CEO.

Hayward took time off his duties handling the oil spill catastrophe in the Gulf of Mexico to see his boat "Bob" participate in the J.P. Morgan Asset Management Round the Island Race on Saturday. Hobnobbing with millionaires, plutocrats and their yachts is fundamental to tightly knit the plutocracy together. It’s the next step above golf.

Stupid Is Who Stupid Does.

March 19, 2010

Abstract: Just as the ultimate reason for democracy is intelligence, the ultimate tool of plutocratic control is stupidity. We explore many aspects of this, putting Obama, health care, the USA, Europe, Rome, and the Federal Reserve into the mix.

***

In brief: Comparing with comparable, namely Europe, American politics lags in professionalism, albeit leads in corruption (and both facts are related). Meanwhile, the USA leads in lack of perception of said corruption, as it should: bad stuff, has to be covered up, that’s how it gets really bad.

Corruption has been seen before, and was the cause of the slow stupidification, then morbidification of Rome, first as a republic, and then as an empire, and, finally, as a fascist theocracy of the worst type.

The corruption in question was not just financial, plutocratic corruption. It was also the deeper philosophical corruption of learning to submit higher mental human purposes to the baseness of greed and hubris. And, although the Roman elite was responsible of this, it was not the only one to partake in it. All of Roman society made this choice around 300 BCE. Attempts to revert it, under the Gracchi, 170 years later, came too late: by then the plutocrats had private armies, and used them to kill the Gracchi, and thousands of their supporters. (A later attempt was made by Caesar.)

There is evidence that Obama expected some of this philosophical corruption , and was ready to craftily out-maneuver it in health care, with a little Machiavellian plot of his own, using greed against itself (he basically said so as early as 2001).

So Obama made a show of being friends with greed, and even to claim it as a guide, as he set-up his subtle health care trap. But he was blindsided by the financial crisis that he, and most thinkers, had not anticipated, even conceptually. So, as he deployed his little health care trick, he was engulfed by his new found pseudo-friends, the financial conspirators, and got completely discombobulated, as they grossly showered themselves with all the gold they could find in the world, and taxpayers’ homes, besides.

Whereas as the president was still in his mood to please health care plutocracy while subtly using it against itself. Who can be defeated with subtlety, when they have already grabbed the world? Obama had overlooked that point.

That was pretty stupid. And no accident. Still, Obama has kept on plowing forwards with his health care plan. As he correctly said:"It’s a debate about the character of our country." Indeed, is that philosophical character going to kept on being corrupted by the greed of the few on top, or not?

Plutocracy governs best by making the people just stupid enough for domestication as a placid herd, but not so much that the herd becomes too mentally retarded to serve as needed. In the case of Rome, though, plutocracy overshot and the placid herd was made too dumb to serve as needed. Thus the republic, and then society itself, collapsed. It took many centuries. Evidence points out, though, that we now measure time in years, and that the USA’s "Novus ordo seclorum" (New Order of the Ages) is turning into more of the same morbidification at an accelerated pace.

***

Synopsis: Socrates used to rile against unprepared politicians, elected but unable to do anything well, because they had not been formed and trained enough to do their job. According to Socrates, democracy without technical competence of its leaders was a no-go. One can make a critique in a similar spirit, as one compare the leaderships of the contemporary USA and that of the EU.

However dismal European politicians are, they have been holding top positions in government for a long time, and have enough experience to, at least, do something when they get to the top. Putting in power untested and unprepared people in high positions, as is done in the USA, makes stupidity into dogma. (I will argue that this is no accident.)

An example was Schwarzenegger of California, an owner of a dozen Hummers or so, who, upon becoming governor, cancelled a tax on cars, thus saddling California with a budget gap that started an uncontrollable avalanche of problems in the Golden State. Reagan, another Californian actor, had the same facile mien to ease policy into long term disaster. So successful was Reagan at claiming that black was white, and white, black, that, to help his campaign, Obama sang his praises (OK, he is singing the praises of giant derivatives bankers too).

Still another example out of California is Proposition 13 and 58, which basically allowed big rich commercial property owners to pay basically no taxes… while still using full blast all the city services: schools, fire, police, for their businesses. Some of these people live in tax havens, far away, while they suck California dry (as often in USA plutocracy, their estates are basically transmitted tax free, and their taxes stay desperately low, through the trick of leasing what they own). That was pretty stupid of the people of California not to see what trick was played on them. But the plutocrats who pushed this sort of measures are expert at making people stupid, and, as soon as the school system just bring forth only stupid specialists, plutocrats can steal from the people as if they were babies. (Some people plutocrats steal from are poor, middle class, and even upper class: a owner of a multi-million dollar home in California get fleeced too… So the word "people" is all embracing, more than 99% of the population, once removed the crooks and flippers.)

Making matters worse, and contrarily to legend, the system of checks and balances of government is insufficiently developed in the USA. It’s actually less developed than in Europe. The abyss between self satisfied American plutocratic propaganda and reality is not just uncanny, it has become life threatening, for the entire society. And not just for the survival of the USA.

Everybody was waiting for Obama, the new messiah, to do something. But what if he can’t? What if both his hands, and his mind, are all tied up in plutocratic knots? The USA is all about leadership, American wisdom says all day long. But what happens when the leader can’t lead?

Europe does not depend on one messianic individual, real or imagined. Power in Europe is highly fragmented, and multi-cephalic. And not just that. It accentuates institutions, not individuals. (The institutional strategy was learned in the Middle Ages, and solves some of Socrates’ objections.)

When one arrives in an American city, such as San Francisco, the newly elected 38 year old mayor "welcomes" you, as if said city was his personal property. The message: America is led by its leaders, and they own the place. The USA is about being led by all mighty individuals… not so much institutions, or ideas.

In peacetime, true leadership is more about being led by ideas, than about being led by individuals. Such as the idea, and ideal, is the idea of Europe, as one polity, or the idea, and ideal, of economic sustainability, by contrast with bringing back Napoleon, or Lincoln to to bring the masses into submission, by killing millions, or Martin Luther King to dream loudly about the USA respecting its own Constitution and Human Rights.

If the idea of the Constitution and Human Rights had been foremost in Americans’ minds, as it ought to have been, Martin Luther King’s dreaming aloud would have been irrelevant. It was stupid for it to be otherwise. Hence the question: where does all this stupidity come from?

Nobel Laureate Stiglitz observed that the financial system in the USA is typical of a "CORRUPT" regime. But corruption feeds stupidification, and reciprocally. This is the key concept.

***

SOCRATES WAS NOT READY FOR GOLD MAN:

Nietzsche criticized Socrates a lot, he opined, "maybe because I am so close to him". Socrates, just as Nietzsche, were scathing about the societies they lived in. Athens for Socrates, Germany for Nietzsche (who then left for Suisse, Italy, and France).

Socrates criticized the electoral system of Athens, decrying it as idiotic, whereas Nietzsche had a much more general critique of the psychology of Germany, finding it racist, herd-like, stupid, and bound to bring forth enormous wars and holocausts in the following century. As it happened exactly (since the masses are not exactly intelligent, Nietzsche was then accused of what he had predicted and decried!)

The greatest private contributor to Obama’s campaign was Goldman Sachs, a plutocratic, predatory organization owning top politicians, worldwide.

How would Socrates have qualified that? How would he have approached the problem? There was no equivalent of Goldman Sachs to heap scorn on in Athens. Although massive amounts of money from the Persian dictatorship did corrupt Greece, this was beyond Socrates’ expertise. And that huge money from dictatorial plutocrats corrupted Sparta, not Athens.

The likes of Goldman Sachs have been careful to capture semantics claiming the exact opposite of what they are truly doing. Such a strategy of semantic camouflage is nothing new: the Nazis were "removing the Jews from Germany for their own protection". At least, so they claimed to the German population, which was all too happy to accept that explanation, since the riches left by the Jews were redistributed to "real Germans".

The likes of Goldman Sachs have been careful to vaccinate their discourse against the precise objections Socrates brought against politicians in his time and place. Thus the financial sector has to give itself predatory bonuses because it needs "talent" to further "innovation". The truth being that they are talented as the best highway robbers there ever were, and, not only they innovated nothing, besides new technology in highway robbery, but they starve real technological innovation of money, economic activity, and talent (because finance seduces, or more exactly corrupts, the most brainy youth, by making them offers they cannot refuse).

Hence now we have to fight a factor Socrates did not encounter: dissemblance, hypocrisy, and what Hitler called the "big lie technique". Thus politics is increasingly about neurophilosophy.

***

STUPIDITY TO CONTROL THE POPULUS:

I hold that mental retardation brought the Greco-Roman empire down. No, it was not caused by lead in pipes as it has been alleged (deposits of limestone covered the insides of the pipes quickly, whereas stupidity rose inexorably, generation of Romans after generation of Romans, and so did the corruption of the moral system).

Nor was the sinking of Rome a sudden failure, as Harvard historian Niall Ferguson just claimed. (An amazing claim, since, however one wants to look at it, the collapse of the Greco-Roman empire obviously took many generations, and it was in obvious big bad trouble as early as Marcus Aurelius, when the later sold the palace cutlery to pay the army, which was trying to turn the Germans around, as they threatened to pierce towards the core of the empire; the last Occidental emperor reigned a bit more than 300 years… later; thus Ferguson ought to review his conceptology.)

Roman stupidification was purely cultural phenomenon. And it was no accident. It had a precise cause.

An oligarchic plutocracy, such as the one that came to own the Roman republic, has interest to make the "Populus" stupid enough to be led by the nose… But not so stupid that the country would become dysfunctional. A fine line to follow, with an abyss on both sides. The situation in Germany between the creation of the "Second German Empire" and 1918 was exactly similar; an oligarchy reigned, and used stupidification and militarization, not to say fascism, to foster its rule. It became so stupid and aggressive that it came to believe that attacking the fully armed French republic sitting next door was a must.

Making people into stupid sheep, but not so stupid that their society can’t function: a fine balance, hard to maintain. It is a bit like maintaining near zero inflation: there is a danger to fall into deflation, something one cannot stop easily, with a great danger that it will turn to a depression. Falling into stupidity, especially cultural stupidity, stepping over that fine line, is similar, just worse. It also leads to mass depression (of the psychological type). Once a society is in that state, such as Oriental Rome, Constantinople under Justinian, at the time of the terrible fights between the "greens" and the "blues", there is no looking back.

A related fine balance is monarchy (= mono-rule, the rule of one). As long as it was Seneca, the philosopher, and personal teacher of Nero, who ruled Rome, perfection was achieved. It lasted five years, until Nero ordered Seneca to kill himself. In other words, when the ruler is perfect, monarchy is perfect. Similarly with oligarchy. But, in a long term autocracy, if the ruler, or the ruling oligarchy falters, the "Populus" cannot step in, because it has been rendered impotent and stupid.

Conversely, Chili was able to recover its democracy, after Pinochet’s horrendous dictatorship, because the latter did not last too long, and democracy had been solidly implanted in the century prior.

In the same vein, the French republic executed dozens of thousands of vicious traitors in 1944-45-46, because the vast majority of the  French population hated what had happened during the four years of occupation, and also held that the presence of many fascists in the French establishment contributed crucially to losing the Battle of France in May 1940, as the so called “fifth column”. In other words, the Chilean people, and, a fortiori the French people, were so attached to democracy that the later came back with a vengeance.

It’s better for democracy to come back with a vengeance, than with wishy-washy measures, complete with amnesty, as Athens did around 400 BCE. (Athens lost half of its population, though, which may explain the amnesty.) It is clever to make the civilizational point that democracy is worth, not just dying for, but also killing for.

Anybody in France, looking forward, knows that collusion and collaboration with murderous fascism will bring death. (Other European countries made the same point as France, albeit on a more modest scale, with the exception of the USSR, of course.)

***

 

OBAMA IS GOING TO DO SOMETHING:

“They are waiting for us to act,” Obama said on a Wednesday in March 2010 of the American people. “They are waiting for us to lead.” Actually, " they" have given up waiting. Some 80 percent of the population of the USA believes that “nothing can be accomplished”.

But one cannot act, if one has not thought first. Or then one is like G. W. Bush, fully acting, after only half thinking. Even then, Bush was not dumb enough to expand the war in Afghanistan. Even Bush was not dumb enough to see that there was no oil in Afghanistan.

What did Obama do in his first year? And how did we get there? Well, Obama mostly extended policies already in existence under Bush, and that Bush knew were wrong. Obama did that in financial, and military policies. These were the most important policies, in the sense that they are the ones which directly led to the worst recession since the Great Depression. They were also Bush’s most erroneous policies. Even Bush had some doubts about these errors, since he nationalized some financial firms, and refused to extend the war in Afghanistan. Obama did not have such hesitations: he went full speed ahead.

As the Romans used to say:"Erring is human, persevering, diabolical." Not all has been diabolical about Obama; some of the stimulus was good, especially the part about financing science much more.

The leadership shortfall we’ve witnessed during Obama’s yearlong health care death march "— typified by the missed deadlines, the foggy identification of his priorities, the sometimes abrupt shifts in political tone and strategy — won’t go away … As Frank Rich says in the NYT, Sunday March 6: [Some] frame [Obama's] failures as an attempt to impose “socialism” on a conservative nation… Obama, who has expanded the war in Afghanistan and proved reluctant to reverse extra-constitutional Bush-Cheney jurisprudence, is a radical mainly to those who believe a conservative Republican senator like Kay Bailey Hutchison of Texas is a closet commie

The problem is that … Obama prides himself on not being ideological or partisan — of following… a “pragmatic agenda.” But pragmatism is about process, not principle. Pragmatism is hardly a rallying cry for a nation in this much distress, and it’s not a credible or attainable goal in a Washington as dysfunctional as the one Americans watch in real time… Obama needs to articulate a substantive belief system that’s built from his bedrock convictions. His presidency cannot be about the cool equanimity and intellectual command of his management style."

***

I LEAD, THEREFORE I GREED:

What if Obama’s bedrock conviction is advancing himself? What if it were "just a little blow" as he put it? Under this hypothesis, as Obama reached the top, he ran out of ideas to serve, having served himself, the equivalent, for him, of heavens. Then now grabbing for the stars, and having no wings to carry his mind, he cannot get there.

History is full of leaders who wanted to go to the top just because it was there, and had nothing to do once up there, besides listening to sycophants, and themselves. Greco-Roman history, over 2,100 years, is replete with examples of some admirable, clever, knowledgeable leaders motivated by public service. But, among hundreds of leaders, it is also replete with the worst scoundrels, who turned out the exact opposite, in the briefest time, from what was expected from them. Emperors Caligula, Nero, and Justinian are famous example (the later by far the worst, because he reigned four decades, and was highly successful in accomplishing the Christian God’s evil purpose of spreading death and stupidity from Orient to Occident).

The three of them, Caligula, Nero, and Justinian, started as adulated youth, brought up in the very best conditions, and their inchoating reigns were full of hope, righteousness, and change for the best… in the beginning. They turned out in the exact opposite (although no doubt that Justinian is still venerated by the clueless: Constantinople is viewed as having reached its apex under him, and he and his wife are Saints of the Orthodox Church, which is troubling, since Justinian was a holocaust specialist: he did not implement just one holocaust, but several, from Anatolia to Italy!)

Far from being a liberal, by European standards, Obama is so much to the right, that Europeans, would they know what he truly says, could only expect him and his country to be fully dysfunctional.

Europe knows that only social democracy works: other regimes were tried, in the last two centuries, and failed. Ultimately it is the republican social democratic model that triumphed, and it is enshrined in the European Constitution. The last great experiment, trying to make Britain into a mini USA, with a full Wall Street, is failing as we speak (plutocrats will say that happened because the remnants of social democracy in Britain were too strong; but this is false, because it is the newish, unregulated "innovations" which are failing; the British health Service is not, in contrast with the health care system of the USA.)

But dysfunctionality does not stop with Obama being obsessed by being a "republican" (which, nowadays means being a far right ideologue, way to the right of the first Bush president, and little embarrassed by what obviously does not work).

***

FOR PLUTOCRACY, IGNORANT LEADERSHIP IS BEST:

Obama was also little prepared to political leadership at the highest level. Part of his undeniable charm, as far as plutocracy was concerned. Plutocrats love to be called "friend" by the president, something Obama, not knowing any better, did many times, and then sang the praises of his mentors (as I documented in previous essays). That Obama became president to tell us that wealth and power defined success, and that he was going to take heed from them was a symptom of him being unprepared for his job, which is to lead the city ("polis"), not take advice from its fat cats, especially not just after those broke the city. (By the way, this ethical incoherence is no coincidence: in case of enormous turmoil, ethics and law do not guide anymore; thus Vichy France collaborated with the enemy, the Nazis, and, as Athens started to lose her war with Sparta, chief generals turned into traitors, and back into trusted advisors. That Obama calls a health care profiteer such as Buffet his friend, while supposedly trying to fix health care in the name of justice is a typical turn coat affair, often found when history goes berserk.)

The lack of preparation of Obama can also be seen by comparing Obama to the leaders of Britain, France and Germany. These three European leaders have been at the highest command levers of government for more than a decade: they knew what governing at the federal level entailed, where the bodies are buried, and who dug their graves. They also knew what they wanted to do, and if they had what it took to implement it, and a taste for it.

President Sarkozy and Kanzler Merkel are conservative politicians, by European definition, they are the standard flag bearers of the right, long having been very close collaborators to Chirac and Kohl, respectively. However, viewed from the USA, they are far out leftists.

This is remarkable, because the USA and Europe ought not to be different universes. And they are not very different economically, and sociologically. Or, at least, they did not start out very different, if one puts the starting line in, say, 1980.

A difference has grown, and that difference is more about what rationality and knowledge have come to mean, and how they impact the very different sociologies. Moreover the evolution of this difference is recent.

It mostly has to do with the USA adopting the Reagan devolution, according to which GREED IS ALL YOU NEED. Greed displaces culture, and all other wants and emotions. Greed is where it’s at.

It is very telling to compare the backgrounds and advisers of Obama, Sarkozy, and Merkel. Merkel is a PhD physicist, thus trained to distinguish reality from fiction, and dreams one wants to believe in from change that is not happening.

Yes, I know, it is insulting to Americans, supposedly, to compare the great USA, which, recently, can’t get anything done, except invading other countries, to France, one of the major component of the European Union (if not it’s exact center, soul, and main driving force). And France just signed a contract to sell four gigantic, sort of aircraft carriers to Russia (which does not have the expertise to build them, and sorely missed having one to invade Georgia, a top Russian general explained).

This brings into question the old style NATO Alliance as an obedient American pet. Sarkozy explained why France was taking Russia under her wing: it is a strategic decision. As he put it, "one cannot ask in the morning the Russians to vote with us on the UN Security Council, and, in the afternoon, tell them one does not trust them."

But so it goes: if the USA can be compared in detail with one country, that country is France (a dreadful fact for plutocrats made in USA, since France is a counter example to most of their asinine theories.)

 

France has both the size and history to be the bedrock on which the USA stands (no doubt an infuriating notion for many an American patriot, but there is a full continuity between Rome, the Franks, Western Europe, and the USA: France is how the disease of Western superiority was transmitted to the USA, a very creation of that superiority disease, come to think of it).

Sarkozy and Merkel are fully trained federal politicians with long track records. Many in their public do not like them, but everybody knows very well where they stand, a bit like family members. UK’s Brown has also been one of the three most prominent labor politicians, for an entire generation. Although no sweet virgins, they are no dark horses.

Sarkozy was elected mayor (of Neuilly)at the age of 26. A lawyer by training, he was involved in a succession of top governmental jobs (finance minister, and interior minister). During a hostage crisis he exhibited amazing physical courage, confronting the "Human Bomb" to save dozens of children, after the experts did not know what to do. The Human Bomb got so distracted by having a top minister of the republic talking to him, snipers got an opening and killed him.

Sarkozy is surrounded by top experts as personal advisers (some philosophers, some economists, etc.). I am not talking about his cabinet here, and the official positions. I am talking about thoughtful people who can come on TV, and speak with authority, but informally, and in all liberty, from their position as presidential advisers, saying what they think (but they do not sit in cabinet meetings). Volcker has a bit this sort of role in a modest financial position (but he has an official position, and probably not the ear, and certainly not the brain of Obama).

Another thing is that in Europe in general, and France in particular, an enormous numbers of layers and center of powers counterbalance each other, while not neutralizing each other.

***

REAGAN DEVOLUTION, EUROPEAN EVOLUTION:

Some have said that Europe is politically ineffectual. But they forget that no decision is better than a bad decision. The USA has gambled that hundreds of thousands of armed men, send to the other side of the planet, was all the energy procurement policy it needed, forgetting that Britain administered India, for generations, with no more than 3,000 administrators (and sometimes, barely more than 1,000!).

They also forget that LEADERSHIP IS NOT JUST ABOUT INDIVIDUALS REIGNING, IT IS ABOUT PHILOSOPHIES, ENVISIONING.

The guiding philosophy in Europe is: "Never That Again" ("Plus jamais cela.") Namely, NEVER A EUROPEAN WAR AGAIN. This means unifying Europe for real, and this enrages the American plutocrats, because Europe, unified, is a much larger power than its ex-colony, the USA. Before the clowns at the Wall Street Journal editorial (disclosure: I have subscribed to the thing for all too many years) start to laugh, let me point out that Russia is a small part of it (with two-third of French GDP).

The plutocrats are enraged, because, if they lose control of Europe, the greater power, they may well lose all power next. Their rage makes them dangerous, and they have to be manipulated with care, like the nitroglycerin they are.

The USA is presently led by Reagan’s philosophy, which, if it has to be abstracted in one slogan is viewed as: GREED IS ALL YOU NEED. Greed displaces culture, and all other wants and emotions. Greed is where it’s at. Greed makes Wall street go around, and thus the world, since Wall Street created the world, ever since Stalin, Mussolini, Hitler and Franco, and got away with it, and a few Great Depressions in passing. In recent years, Larry Summers, now accompanied by his obedient, facts deprived Obama, as he used to be with faithful clueless Clinton, has even dismantled Roosevelt’s work of 1933. So maybe we ought to call it the Summers’ devolution, not the Reagan one. (Indeed the real Reagan could be pragmatic; faced with a scary deficit, he augmented taxes.)

The philosophical leadership provided by the metaprinciple of greed as a guide is inferior to the leadership provided by the metaprinciple of avoiding war, whatever it takes.

Avoiding war does not mean caving in, as in Munich. When Britain and France declared war to Hitler in 1939, it was way too late, actually 20 years too late; thus avoiding war in Europe means avoiding the sort of mess of the Paris Peace Conference of 1919, where the USA interfered destructively, and the European problem of democratization and pacification was not solved; nowadays, this means bringing Russia into the fold, democratically and pacifically… a bit as Serbia was recently, but, hopefully in a much nicer way!

***

EUROPEAN PHILOSOPHICAL POWER:

There is power in Europe, but it is not just with politicians. As I said, it is in a philosophy of human rights reigning supreme. And this includes prominently the right to WORK, and the dignity of not being led by the nose as if one were cattle.

A number of Siemens upper managers were recently sequestered by other Siemens managers, for example, to extract concessions. As is usual in France, in case of sequestration of bosses, the police stood by, trying to calm everybody. And as often, the kidnappers got a lot of what they wanted.

A bit later a strike in refineries to save 350 jobs (yes three hundred fifty jobs), started to paralyze France. All Total refineries went on strike. Total SA, a French company, is the fourth largest oil giant in the world. The French presidency intervened. The refinery will still close, but a liquid natural gas facility will replace it, and the 350 jobs will be saved. That is a lot of power deployed to save 350 jobs. Intriguingly, the cause of the problem is that French society is so much efficient that the usage of gasoline has gone down a lot, and now US demand for gasoline has gone done too, because of the Great Recession. (Yes, the USA did not need to build refineries for decades, because French refineries made "American" gasoline: a small world we inhabit…)

European courts can be much more powerful than American courts. For example, they often block governmental action, and are keen to suggest explicit remedies. The French Constitutional Court, for example, blocked the Carbon Tax, three days before implementation, but told the government how to fix it.

An appeal court allowed lesbians to adopt, while telling the French National Assembly it had to… change the French National law. In other words, the court not only legislated from the bench, an ultimate no-no in the USA… but gave marching orders to the legislature. This can be done in Europe, because European law has primacy over national law. Another drastic European Constitutional advance.

Indeed, if the primary ethical principle is to avoid another European war, European law should dominate that of all nation-states. Thus, when a court, inside a nation-state, feels supported by European law, or by the spirit of European law, which is the spirit of the Declaration Of The Rights Of man And Citizen of 1789, it does not hesitate to contradict the democracy of the nation-state in which it sits.

***

The USA presidency, and congress, relative to all this European brain storm, is clearly quaint, obsolete, amateurish and … corrupt. Many American politicians right now in exercise would get serious entangled by various European laws.

A drastic example is the US central bank, the famous Federal Reserve, the celebrated Fed. The fed is in particular famous for its ‘independence". A refined joke. It is not just a question that the Fed chair is named by the president, like I am sure president Chavez would like to do in Venezuela.

By commonly accepted civilized standards, the Fed is corrupt, precisely because it is independent of democratic supervision.

An example of blatant corruption: Jamie Dimon, head of the super giant private bank JP Morgan-Chase, the president’s self celebrated "friend", and object of his man-love and admiration, sits on the board of the New York Federal reserve bank. This is the exact equivalent of a fox guarding the chicks. I remind you that, last year, the Wall Street foxes had eaten all the chicks, and they were sad, and very hungry. So taxpayers were requested to bring more chicks, otherwise Wall Street would devour them, taxpayers, instead. we had a happy outcome: taxpayers are still around, ready to be fleeced some more.

***

I SEE NO CORRUPTION, THEREFORE I AM NOT CORRUPT:

So Obama is in his big White House. A smart little boy without much experience, surrounded by arrivistes, plutocrats, and a second rate ex-journalist such as Mr. Axelrod. Some of these people cannot even know what corruption is; they always aspired to it, and lived by it. They find normal to sit on boards of hospitals, making ten times, or more, the US median income, although they have strictly no medical background to be there. (In France hospital administration is the object of rigorous training, examinations and the selection of the very best in double blind competitive entrance exams).

A boy with dreams he would like to believe in does not necessarily a good captain make. Caligula, Nero and Justinian, among many others, started as boys, very good, resplendent crowned boys, and hope reigned. But the very fact those boys did not earn their positions through a long hard slog made them vulnerable to hubris. Tripling the force and the losses in Afghanistan, as Obama did, while feeding the banksters, is hubris. Hubris is a corruption of judgment by the will to power, just as greed is a corruption of the heart by the same will to power.

***

CORRUPTION, STUPIDIFICATION, ANNIHILATION:

Civilizations have died from mental retardation. It is not just the Nazis who died that way. Rome is exhibit number one. By the Second Century (or even the First), it was obvious that stupidity and corruption, feeding on each other, were devouring Rome. (The occasional bout of brilliance such as the first five years of Nero, when Seneca was de facto emperor, or the first two Antonine emperors, or the short reigns of emperor-philosophers, such as Julian, notwithstanding.)

The point about Rome is that corruption preceded stupidification. The Romans of the republic were dangerously superior in the ethical realm.

Gaul was conquered by Caesar in the name of ethics. This was far from being false, and that is why Gaul, although very independent in spirit, never seriously rebelled later, and ended up out-Roming Rome herself, with the Imperium Francorum, the direct prolongation of the Imperium Romanorum, Pars Occidentalis. Gaul agreed that Rome brought multiple advances, including ethical ones (and that includes having outlawed the Celtic religion, which was discriminatory on the ground of heredity, and human sacrificing).

As Rome got corrupt enough, and stupid enough, she was unable to stop her slide to oblivion, except by ever more fascism. And on it went, ever more stupid, ever more fascist, until the imposition of imperial fascism from heavens ("Christianism"), and the calamitous reign of Justinian (Sixth Century Constantinople).

Now, of course, internet geniuses will check Wikipedia, and see that, under Justinian, the Roman empire reconquered the world (except for Francia). But actually Justinian did so by destroying the world. Pretty stupid. At some points the city of Rome changed hands seven times. In the end, only one man was left inside, it is said. And the aqueducts had been destroyed.

By the time Justinian’s uncle, an uncouth, but competent general, became emperor, the Franks and the Goths controlled the West ("Pars Occidentalis"), and used higher smarts to get some of the (Roman) state re-started. The Goths were destroyed by crazed superstitious enemies (Justinian destroyed the Ostrogoths in Italy, and the Muslims destroyed the Visigoths in Spain, 150 years later).

The more ferocious and crafty Franks destroyed those very same enemies (in a general counter-offensive, which lasted at least six centuries, and the Crusades were just a sample).

***

THE FISH ROTS BY THE HEAD (IF ANY):

Corruption was the initial problem of Rome, and it brought its final solution (not just the termination of Rome in the West by the Franks in 486, and in the Orient in 1204, but even, long term, through Christian amplified hatred, the final solution a la Hitler). Stupidity can go on and on…

Roman corruption was philosophical in nature, and deeply tied to the very rise of Rome. Maybe not its fundamental republican, and legal rise, the deepest reason for its superiority. But certainly it tied into Rome’s meteoric rise around 300 BCE; then Rome discovered the virtuous circle of military conquest, the slaves it brought, and the resulting power of it all.

Corruption is now the main problem of the USA. It is the sort of corruption that hides its nature by being naked in everybody’s face. It is so gross, everybody is in denial. Thus, it is a corruption in everybody’s mind. We saw that in Constantinople under Justinian (and throughout most of the late Roman empire). The financial sector has crowded minds out of more profitable mental pursuits (ironically).

Economy Nobel laureate Joseph Stiglitz, former chief economist at the World Bank, observed that if a country had applied for World Bank aid during his tenure, with a financial regulatory system similar to the Federal Reserve’s — in which regional Feds are partly governed by the very banks they’re supposed to police — it would have been refused.

"If we had seen a governance structure that corresponds to our Federal Reserve system, we would have been yelling and screaming and saying that country does not deserve any assistance, this is a corrupt governing structure," Stiglitz said during a conference on financial reform in New York. "It’s time for us to reflect on our own structure today, and to say there are parts that can be improved."

In other news, we are dying, and it’s time for us to rearrange the bed.

The USA will not have the luxury of the slow decay of Rome, because, differently from Rome, it is surrounded by other great powers, and it is not self sufficient: only eight years of oil production are left, at the present rate, inside the USA. Although the invasion of Iraq bought some time, it is little to go by, and it could well backfire.

And the general problem remains that we are facing many disasters in the making, which can only be avoided by maximum brain power. But the enticement of greed is not that of thought over matter, but the enticement of power on other people, quite a different drive. This is how corruption feeds stupidification.

The feeding can be more direct: Socrates spoke of the necessity of having politicians who were competent enough to make their jobs appropriately, and the question arises with Obama, since his team could get nothing major done, which did not involve adding steroids to policies already initiated under Bush. Initiation is harder than continuation. The Obama team may be so incompetent that it cannot initiate anything major (Bush initiated a few major programs and disasters).

Although Socrates had a point, the fact remains that, at the time the two largest class of problems Athens had were hubris and conspiracies and betrayal. of that, Socrates says nothing. But the various betrayals of Socrates’ lover Alcibiades (who had suggested and was supposed to lead the attack on Syracuse), played a calamitous role in Athens’ collapse. Even worse, deep down, was the enormous financing of Sparta by Persia (allowing Sparta to build a giant war fleet which brought Athens down, with half the population killed).

Common American wisdom, has it that conspiracies do not exist. This piece of pro-active propaganda all Americans in good standing know by rote. That is rendered possible by them not knowing much history. And having even the head of the best buried deep in the sand is not new, as the case of Socrates show.

But it is high time to not be that naïve. We are living in times when we will be superior minds, or we will cease to be.

In Polanski’s Franco-Germano-British movie, "Ghostwriter", an explanation is suggested on how and why (some) Anglo-Saxon leaders are actually CIA plants recruited by networks originating in universities such as Harvard. Of course, the poor CIA is much abused, and the financial enormity that just happened, and keeps on happening, the corrupt oligarchy ruining the world, for all to see, suggests, in turn that recourse to assassinations (such as in "Ghostwriter") is not necessary. After all, one does assassinate sheep: one takes care of them instead, especially of their tiny little minds.

Stupidity itself is the ultimate conspiracy. Shedding minds is more efficient than shedding blood.

***

http://patriceayme.wordpress.com/

***

Annex: Some will scoff: what can mind over matter do, which would be fast, clean and spectacular?

Well, nothing much nowadays, because the main mental universe ruling the stupid political class has become the universe of financial derivatives. As its name indicates a derivative, unreal universe. Thus a stagnation of technological progress. because the later is not located in a derivative universe, but in the real universe.

Lack of enough, necessary technological progress is the proximal reason that brought Rome down.

As ecological and military problems accumulated, Rome was defeated, because she could not unleash enough technological progress to solve said problems.

Instead Rome decided that the universe was not real, just derivative from the true God. OK, God was not explicitly a financial derivative, although it was invented by the biggest plutocrats ever observed, but the basic idea stayed the same: work your mind on a derivative, not the real thing. Instead, call the derivative the real thing. Thus Obama sing the praises of Dimon’s portfolio of 80 trillion dollars of derivatives.

Now the true God is not sitting in heavens, brandishing a sacred book. The true God now is Greed, and the derivatives are financial. But it is the same flight from reality.

***

Suppose there is a nuclear winter, and that the main oil field have been struck by nukes, making them radioactive, and that world trade has been smashed from lack of fuel, piracy, etc, while sea level is quickly rising… Could the West still have plenty of energy for building the necessary cyclopean levees and feed the people from underground hydroponics, while keeping them warm enough, and free of radiation?

Yes. We could for example stitch existing technology together and make fusion-fission nuclear plants (those would use normal uranium for the thermonuclear blanket, which would fission under fast thermonuclear neutrons).

Wall Street cannot master the universe, but the universe can master Wall Street.

***

DELIBERATELY VIOLATING THE LAW.

April 6, 2009

THE BUSH ADMINISTRATION VIOLATED THE LAW, AND IT WAS OBVIOUS, BUT NOT THAT BLATANT.
***

By refusing to close insolvent banks, the Obama administration is violating an important law, the “Prompt Corrective Action Law” [US Code, Title 12, Chapter 16, sec 1831]. That law, in particular, mandates explicitly to minimize the cost to the FDIC (hence the “prompt” closure of “undercapitalized” banks). The law defines in detail what “undercapitalization” means, and mandates the “appropriate Federal banking agencies” to find it out (because if a bank defaults, the FDIC is left holding the bag). They have a limit of ninety days. By the way, unrestricted bonuses are unlawful too, it is explicitly mentioned, and so on.

In other words Obama and Geithner have been debating the law, as if they had a choice. Geithner, in particular, because he has been in an oversight role forever, should be subject to prosecution, for having deliberately ignored and violated the law (having failed “to resolve the problems of insured depository institutions at the least possible long-term loss to the deposit insurance fund” in spite of “Prompt corrective action required”).

Now the Geithner plan is providing welfare for hedge funds, and their associated corrupt banks. Geithner calls that the PPIP. The PPIP works better, in its generic case with a positive outcome for the insolvent banks and greedy hedge funds, when the FDIC maximizes its losses. The PPIP also violates the ‘Prompt Corrective Action Law” (Sec. 1831), and its spirit.

The way it works is this: an agent can borrow from the FDIC, and then it can buy worthless assets with the funds it has borrowed. Next, it could then walk away, since the Geithner loan is “nonrecourse”. “Nonrecourse” means that if the agent defaults, no part of the loan can be recovered by seizing some collateral of the agent. The agent does not need any collateral. The agent can buy something for a billion dollars one day, and then walk out the next day, no question asked by anyone.

The agent can be anything: Geithner just has to like the agent (so it’s the Paulson plan in disguise, except the funds are much greater; the arbitrariness is the same, though: it’s all about the love and esteem that the Treasury Secretary has for the potential agent). The agent could be a corrupt, insolvent bank, or a greedy desperate hedge or a corrupt insolvent private equity fund (there are some of the later holding a lot of worthless real estate, such as one the columnist Thomas Friedman has invested in, explaining his constant, glowing propaganda for the Geithner plan). Then agents could exchange each others’ bids, and favors. It would be perfectly legal, as far as Geithner is concerned (not as far as the Constitution is concerned, because the equality clause would be violated).
***

Bill Moyers interviewed WILLIAM K. BLACK, Senior Regulator for the Savings and Loans crisis under Reagan and Bush Senior, a criminologist, law, economics and business professor [April 5, 2009].

WILLIAM K. BLACK: In the Savings and Loan debacle, we developed excellent ways for dealing with the frauds, and for dealing with the failed institutions. And for 15 years after the Savings and Loan crisis, didn’t matter which party was in power, the U.S. Treasury Secretary would fly over to Tokyo and tell the Japanese, “You ought to do things the way we did in the Savings and Loan crisis, because it worked really well. Instead you’re covering up the bank losses, because you know, you say you need confidence. And so, we have to lie to the people to create confidence. And it doesn’t work. You will cause your recession to continue and continue.” And the Japanese call it the lost decade. That was the result. So, now we get in trouble, and what do we do? We adopt the Japanese approach of lying about the assets. And you know what? It’s working just as well as it did in Japan.

BILL MOYERS: “Yeah. Are you saying that Timothy Geithner, the Secretary of the Treasury, and others in the administration, with the banks, are engaged in a cover up to keep us from knowing what went wrong?”

WILLIAM K. BLACK, Senior Regulator for the Savings and Loans crisis: “Absolutely.”

BILL MOYERS: You are.

WILLIAM K. BLACK: Absolutely, because they are scared to death. All right? They’re scared to death of a collapse. They’re afraid that if they admit the truth, that many of the large banks are insolvent. They think Americans are a bunch of cowards, and that we’ll run screaming to the exits. And we won’t rely on deposit insurance. And, by the way, you can rely on deposit insurance. And it’s foolishness. All right? Now, it may be worse than that. You can impute more cynical motives.”
***

There is an easy way to prevent panic: in France all deposits are insured by the government, in any bank, whatever the amount. But this is not the way chosen by Summers and Geithner. Potential panic is thus just a pretext for them: the USA could do like France, and no panic would be imaginable. Now the cynical motives are in plain sight: Summers got eight million dollars, just like year, in 2008, from the very people he wants to give two trillion dollars to, in 2009. Maybe the adjective is venal, not cynical.

What does PPIP stands for? According to Geithner, Public Private Investment Plan. According to me, Public Pays for Impudent Plutocrats. Interestingly, the size of PPIP is supposed to blossom to two trillion dollars, the exact size of the hedge fund “industry”. Does that mean the hedge fund “industry” is broke too, and has to be fully recapitalized by taxpayers, lest the ultra rich would not be ultra rich anymore?
***

Patrice Ayme
http://patriceayme.com/
http://tyranosopher.blogspot.com/

 

Addendum: 747 banks were nationalized (“put in receivership”) during the S&L crisis (the average bank was kept in government custody for three to four months; bad assets were yanked out, and put in the RTC).

MY WALL STREET, RIGHT OR WRONG, SAYS THE ESTABLISHMENT.

September 27, 2008

THE PLUTOCRATIC ROT IS DEEP: EVEN FAMOUS LIBERALS COLLUDE WITH THE PLUTOCRACY!

There is a huge financial crisis developing and something huge needs to be done, that is correct (see P/S 4 for a hint of the extend).  

But why was the incredible 700 billion dollars gift to Wall Street (more than 6% of GDP) ever proposed? In its initial form, it was like offering a truck full of gasoline to an arsonist, so he could replenish himself.

But let’s hear it from one of the pillars of the democratic establishment. Paul Krugman writes the following in a New York Times editorial (September 26, 2008):

“Many people on both the right and the left are outraged at the idea of using taxpayer money to bail out America’s financial system. They’re right to be outraged, but doing nothing isn’t a serious option. Right now, players throughout the system are refusing to lend and hoarding cash — and this collapse of credit reminds many economists of the run on the banks that brought on the Great Depression. It’s true that we don’t know for sure that the parallel is a fair one.

Maybe we can let Wall Street implode and Main Street would escape largely unscathed. But that’s not a chance we want to take.”

An amazing quote, word for word straight from the NYT editorial, denoting an astounding view of the world, a total incapability to think out of the Wall Street box. Paul Krugman himself, the self declared “Conscience of a Liberal”, famous economist at Princeton and anti Bush New York Times editorialist of long standing, believes we cannot let “Wall Street implode”.

Really? Why not? Professor Krugman does not explain. He seems at a loss for concepts. No wonder: everything indicates that it’s the other way around. Wall Street is the problem. Why should imploding a big problem be a bigger problem? Keeping on sending money to Wall Street may keep on depriving Main Street of money. Sending money to Wall Street instead of Main Street is exactly what has happened in the last few decades. Maybe it’s time to try something completely different.

At this point, though, the establishment has been working as one. What the establishment, and its associated plutocracy, wants is money from The People. This has long been true, but now that the plutocracy and its associated establishment are in serious financial trouble, the request has become urgent. The plutocracy (and, indirectly the establishment) has been dabbling in FUTURES AND DERIVATIVES. Unregulated all.

The total worth of the world is about 100 trillion dollars, and the total world GDP is not even half that. Nevertheless, the supposed “value” of all derivatives invented by “Wall Street” is in excess of 500 trillion dollars. Yes, you read this correctly: the total value of Wall Street, according to Wall Street, is at least five times the total value of the world. No wonder Wall Street needs help! It has gone completely nuts. But what it needs is not more money: according to itself, it’s worth already five times the planet. What it needs is cognitive therapy.

Many of these futures and derivatives are leveraged out of mortgage-based securities. Most of the money invested in these nonsensical instruments was borrowed by the plutocracy from the banks where The People puts its money. This is the connection, People, that they tried to hid from you! They already took your money where it cannot be seen, and now they want more.

In other words, “Main Street’s” money (that Wall Street found in banks) was lent to hedge funds owned by extremely rich individuals, so they could leverage themselves to make themselves even more fabulously rich. Now that this leverage is working the other way, two things are occurring: the banks can’t be reimbursed, and the hedge fund industry (worth two trillions dollars in the USA) is in danger of being wiped out (bringing many of the hyper rich to ruin). This is probably what is the real reason for the panic of the Bush administration.

The simple solution to all this, for the People at large, for “Main Street”, that is for the real economy, is to nationalize all failing institutions that are necessary for the ongoing functioning of the economy (in the Great Depression, the Fed let thousands of banks necessary to the functioning of the economy close, a horrible mistake). In other words, let the government provide necessary banks with all the capital needed for operations necessary for the ongoing functioning of the economy . Simple. And don’t send the money to the rich: that could cause a new Great Depression.

Why? As we said, and what Professor Krugman does not seem to understand, is that too much money to the extremely rich caused the crisis to start with.

Now we are taking the patient, Main Street, who suffers from dangerous anemia, and draining it of blood some more, to feed the vampire, Wall Street, some more, lest it becomes anemic too.

More seriously, there is only that much money that the economy can create. Too much money sent to Wall Street meant not enough money for Main Street. Otherwise said, people can work only so many hours; if they spend too much time working for Wall Street, they spend not enough time working for main Street. In the end, they literally get depressed. This is no joke: an important factor in the Great Depression was the unwillingness to lend, from sheer depressed spirits, something that has shown up recently, and has an important psychological component. 

Hedge Funds and obscure, unregulated derivatives are unnecessary to “Main Street”. They have actually hindered “Main Street”, by siphoning money away from it, and by building inequalities sky high, to the point where they are damaging the world economy. Let most of the derivatives die. It’s time to do triage.

Nationalizing (hence saving) only functions and/or institutions useful to “Main Street” will save the economy. All “Wall Street” has been doing is destroying the real economy. Time for a change.

But that change will not be easy. Politicians and university professors (the decision makers) are paid very little (say a maximum of 175 K in a country where CEOs can make billions). Their only hope to make it big financially is by pleasing the plutocracy. And if one does not make it big in a plutocracy, one is nothing. That’s one of the main self-reinforcing mechanism of the plutocracy.
***

Patrice Ayme.
***

P/S 1: This is a small appetizer of a much longer work that analyzes and compares the present situation with the Great Depression. All this work confirms that there is only one way out, and that making more gifts to Wall Street will only make the situation worse. Coming soon.

P/S 2: Similar crises in Europe were well resolved by nationalizing. That makes sense both in the capitalistic and the socialistic models. Last time this happened on a large scale (5% GDP) was during the Norway-Sweden banking crisis (1992). Resolution by nationalization was highly successful. But Europe does not have the tradition of giving ever more riches to the rich. It is understood in Europe that, when the socioeconomic inequalities become too great, catastrophic consequences are not far behind: mass poverty, strife and war.

P/S 3: The trading of derivatives will have to be severely limited, both in who can trade them (the “commercials”) and by how much (that’s pure mathematics: the greater the order of the derivative, the more it impacts its integrals; so, to prevent astronomical leverage, one has to restrict down to zero the derivatives’ variation as their order goes up; that this is not the law yet was made possible by the lack of intuitive knowledge of infinitesimal calculus by lawmakers).

P/S 4: How big is the lending crisis? It is rumored that the losses to banks would be already around 130 billion dollars. Since banks are allowed by international law to lend a bit more than ten times their capital, this is a loss of 1.5 trillion dollars in lending capacity. Injecting directly 130 billions of dollars from the Treasury (i.e., The People) under the form of capital (hence equity) would recreate directly that capacity. The initial Bush crisis plan did not do that, though.
***


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