Economy Is A Slave To The Society Governance Wants


There is never any “spontaneous order” of the economy. The “Spontaneous Economy” is a charming idea pushed forward by this pencil pusher, Milton Friedman, in a charming way. The argument of Friedman is that nobody knew how to make a pencil: it requires the entire world economy, and its entire history. That is all certainly true, yet, it is not the whole story. It is missing crucial foundations: the army, the law, the government… And an intellectual machinery below all this, to create the best ideas. For example Europe in the period 650 CE to 1000 CE, was not the wealthiest by a very long shot: China, Roman Constantinople and the three Caliphates were immensely wealthier. But Europe had the best ideas, those who turned out to be scalable into today’s world civilization. The master thinkers had names: Queen Bathilde, Alcuin, Charlemagne…

“Economy” means house management (the Athenian philosopher Xenophon invented the concept, but government intervention in the Athenian economy was more than two centuries old, by then, from Draco to Themistocles!)

Facebook directors and Wall Street titans are getting in the Biden administration.Some examples. Facebook itself was greatly created from US government (under Obama). Wall Street investment depends upon borrowed money given by the “private” banks which constitute most the Federal Reserve. The policy of the Federal Reserve, nominally independent, is not really so: it depends upon its constituent plutocrats (banks and their owners) plus what the government really wants.

Thus the economy and governance is a chicken and egg problem… and, as such, evolutionary elucidated: the house is managed according to what its governance decides. “Governance” itself varies… from Direct, Real Democracy, all the way to tyranny and theocracy.There are other entangled chicken and egg problems dominating society, such as the question of education and governance: the better educated get better governance, bad governance gives, and thrives from, bad education.

Roman aqueducts were government projects. They made the world’s largest city, Roma, with more than one million inhabitants, possible. It was by far the world’s largest city. in the following millennia, governmental water engineering made large cities possible

All these entanglements explain why the Roman Republic and State collapsed in a seemingly irresistible way, over a period of centuries: the increasingly fascist government fed the stupidity which enabled it to keep on thriving, until it finally sawed through completely the branch on which it sat.All this to say total economic freedom never is and never was. All and any freedoms are limited in many ways. An example is the (indispensable) transition to the hydrogen economy: it is feasible, but it means government intervention, in part only because there already is government intervention in favor of fossil fuel. Also all and any new technological activity needs investment, thus, ultimately, government subsidy, because governments decide who the banks are going to lend to, ultimately…

And now the question becomes: Towards The Hydrogen Economy At Last? If we want a renewable economy, we need hydrogen and nuclear. By “hydrogen” I mean hydrogen and its quasi substitutes, like ammonia, or methanol (H3COH; “wood alcohol”, which is liquid at ambient temperature). By “nuclear” I mean state of the art fission (not WW2 polluting and dangerous tech as deployed 75 years ago), and fusion.

People love to oppose “capitalism” and “socialism”. This is silly: civilization is social and rendered possible by capital. One does not go without the other. The important distinctions are between the quantity and qualities of “governmentalism”. Governmentalism, well applied, made possible the enormous population of Rome: more than one million… to be surpassed only by Beijing, London and Paris, 18 centuries later. The combined conduit length of the aqueducts in the city of Rome is estimated between 490 to a little over 500 miles. 29 miles (47 km) of which was carried above ground level, on masonry supports. Rome’s aqueducts supplied around 1 million cubic meters each day (that is one million tons, or 300 million gallons a day). That’s a capacity greater than the current water supply of the city of Bangalore, the tech capital of India, which has a population of 6 million…

Tellingly, nineteenth century spectacularly growing cities encountered severe recurring epidemics caused by their contaminated water supply, which spread worldwide… by contrast, larger Roman cities did not have such epidemics in their heydays… thanks to gigantic quantities of water flowing through everyday! Those pandemics (in particular cholera) were solved only thanks to advancement of science and hydraulics. London East End was ravaged by cholera from contamination, under Queen Victoria… Right, in the later phases of the Roman dictatorship, there were epidemics… and that was no coincidence. Just as now the fact that the epidemic is striking hard the degenerate pseudo-democratic regimes of the “West” is no coincidence… when dozens of other countries are doing better…

Reciprocally, indeed, when the government of Rome became too much of a self-perpetuating military plutocracy, thus increasingly stupid, and feeding of stupidity, its governmentalism became increasingly incompetent in managing the many, while staying optimal for the ruling oligarchy in degenerating circumstances they had themselves created… But were not cogent enough to discern, let alone fix.

Biden said he would emphasize the turn towards the “green economy“. We will know soon. When Obama came to power, the first thing he did was to demolish hydrogen, in particular hydrogen from clean sources (“green hydrogen”). The problem is that, with today’s science, only hydrogen can make the green economy workable as a full replacement of the fossil fuel economy (nothing that Obama needed to understand for his modest definition of self-fulfillment). If Biden gives a green hydrogen signal in 14 days, that will be excellent. Right now, though Biden seems to be putting in power the teams which made Obama all he could be, namely, nothing much.

Biden, Clinton, Bush Jr. and Obama put in command the financial plutocracy, and some of its agents, such as the internet monopolies. That created the economy they wanted: Delaware, Biden’s own state, is the world number one tax shelter state… Clinton demolished the safeguards of the banking system installed under President Franklin Roosevelt, by gutting the key mindset of the Banking Act of 1933. The Banking Act of 1933 prevented banks to speculate, and thus forced the banks to invest in the real economy… And leverage the real economy, instead of leveraging themselves. Instead the idea of Clinton, or, more exactly, pushed onto Clinton by Goldman Sachs was to unleash the dogs with would bring the most dinero to the Clintons. Makes sense for greedy low lives. Bush, who differently from Clinton was born at the top of the financial and military-industrial plutocracy set up the outrageous idea of refinancing failing banks without nationalizations (after letting Lehman Brothers, the Bond Market money center, but also the enemy of Goldman Sachs, collapse)…

Obama, somebody who know nothing but orders from above, ran away with the idea of financing the banks with the public purse, without quiproquo, hell-bent as Obama was to augment inequality in the USA under the cover of his appearance as the opposite…

All this exploded when Trump became president, but now the bits and pieces are been glued back together again: look at the reapparition of Susan Rice, once Kagame’s agent. And never mind the spirit of the Republic.

It is possible that Biden, husbanding the best of Obama and Trump will be a good president steeped in efficient governmentalism. It was a good start to heed my strident calls for a single shot vaccine (I sent a flurry of tweets that way on his account). The next thing should be a high density housing program in crucial cities (give subsidies to Trump! And Trump-like critters), a mad rush into hydrogen, and much more science financing (say like China!)…

Patrice Ayme

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