Archive for the ‘Debt’ Category

Obama, Clinton: Stealthily Regressive

November 2, 2016

So much lying! So much naivety! Oh Blah blah! Obama! Obamacare! Obama cares not: yes, GDP of the wealthiest, the .1% has been growing. But, in truth, Clinton and Obama were the most stingy presidents of the last 66 years. Far from being progressives, they were the top two regressives and regressors. Here is the graph:

Clinton And Obama Were The Less Progressive Presidents In 66 Years

Clinton And Obama Were The Less Progressive Presidents In 66 Years

I do not expect the insulting fanatics who worship Clinton and Obama to understand the preceding graph. Let me explain a bit more for the others.  The graph above looks at United States government purchases of goods and services. It looks at the purchases at all levels: local, state, and federal. Such purchases are, actually buying real stuff, and work, in contradistinction with transfer payments like Social Security and Medicare.

[Why was there a decrease around 1950? Because of super giant spending due to the Second World War, just prior; after that enormous spending, a retrenchment was in order. However, notice that President Ike brought up spending to 25%! Thus, if one makes, say a five-year rolling average, Clinton and Obama are the lowest in Net Government Investment since… President Hoover; that was 83 years ago; and even Hoover did the Hoover dam, and much more. One can advantageously consult “Wealthcare Endless Summers“.]

Obama has been far from presiding over a huge expansion of government the way he himself and the right-wing, Neoconservative fanatics who now support Hillary Clinton, claim. As a matter of fact, Obama presided over unprecedented austerity, in part driven by spending cuts at the state and local level. Thus it is an astounding triumph of misinformation and disinformation that lackluster economic performance since 2009 has been interpreted as a failure of government spending. Let’s zoom in on Obama’s first term:

Obama Cliamed He Was A Big Spender. Instead, He Spent Big Only On His Friends, The Plutocrats, Soon To Provide Him With Beaucoup Bucks

Obama Cliamed He Was A Big Spender. Instead, He Spent Big Only On His Friends, The Plutocrats, Soon To Provide Him With Beaucoup Bucks

Here it is, massaged differently:

Clinton And Obama, By The Measure Of Annualized Growth Of Real Government Spending, Were The Two Most Conservative US Presidents

Clinton And Obama, By The Measure Of Annualized Growth Of Real Government Spending, Were The Two Most Conservative US Presidents

[Source: Economist View.] So now the hysterical ones on the pseudo-left tell us that Hillary Clinton is not at all like Clinton, Bill, her husband and Obama, her supporter. It is indeed likely: Clinton says she will spend more in education and infrastructure. How much she can deliver with a hostile Congress, is something else. However, Trump has clamored for more government spending since ever. Trump lambasted the decrepit infrastructure of the USA while Obama (and Clinton), in chief command, did nothing about it.

I have said that government spending should be massively  augmented, for years. (But intelligently augmented, a big but, not a big butt!) Even Krugman, the Clinton sycophant, has joined my long held opinion. Here he is, in August 2016:

Time to Borrow, by Paul Krugman, NY Times: …There are, of course, many ways our economic policy could be improved. But the most important thing we need is sharply increased public investment in everything from energy to transportation to wastewater treatment.

How should we pay for this investment? We shouldn’t — not now, or any time soon. Right now there is an overwhelming case for more government borrowing. …

First, we have obvious, pressing needs for public investment in many areas. … Meanwhile, the federal government can borrow at incredibly low interest rates: 10-year, inflation-protected bonds yielded just 0.09 percent on Friday. …

Spending more now would mean a bigger economy later, which would mean more tax revenue…, probably be larger than any rise in future interest payments. And this analysis doesn’t even take into account the potential role of public investment in job creation…”

In any case, no president did worse than Obama, except for skirt-chaser-thanks-to-government-clout Clinton. Would the Clinton of the future be different from the Clinton of the past? Hillary hysterics foam at the mouth, and assure us, that such will be the case. However, as many called me a racist, xenophobe, fascist, hater of Muslim People, Trump lover and even less flattering term, in public, on the Internet in recent days, I now strongly doubt that they are capable of informed judgment.

Yes, be it Hillary or President Trump, real government spending will grow. Both from what they said, and who they are (Trump is a builder used to take loans and invest rather profitably). But also because, after eight years were Obama “signature achievements” consisted in bombing weddings in Yemen, in “signature strikes”, and deploying the health plutocrat friendly (think Buffet) Obamacare, real government spending could not be any lower.

Or then, it was a farce: consider the US government spending on Elon Musk (a South Africa born entrepreneur). If Trump is elected, SpaceX is gone in a year. And so it will be all over: watch Amazon go down in flames. Yes, I do finance heavily my local bookstore, and yes I purchase only two books once at Amazon. Nobody os perfect.

But those who say that Clinton and Obama were progressives, are either liars or ignorant, or cruel, or all the preceding. It is one thing to no be perfect. It is another to wallop in error: to persevere in error is diabolical, the Romans said (“perseverare diabolicum”).

Again, look at this:

I invest Nothing For You People, Becausae You Are Unworthy. Call Me Progressive, Like The Annaconda Who Progressively Squeezes

I invest Nothing For You People, because You Are Unworthy. Call Me Progressive, Like The Anaconda Who Progressively Squeezes

[Notice the dearth of spending under Clinton. Pelosi-Bush invested, until last 3 months of 2008, when Pelosi-Obama signed on Bush’s Sec. of Treasury Paulson’s plan. Pelosi-Obama invested in plutocrats thereafter (mostly, although there was a small genuine ‘stimulus’ which worked wonders).]

I expect feeble minds and cultural retards to not understand such a graph. They will probably revert to insults. And I do not expect them to understand what this means for analyzing the reasons for the frantic support of the Obamas for Clinton. You see, ultimately, investing is a zero sum game, in the instant: the US government did not invest, because all its discretionary money went to plutocrats. And this is why the Main Stream Media, held by plutocrats, is so anti-Trump. Trump, who is one of them, plutocrats, know very well where the investment streams are going. If Trump wants a bigger name, and he does, he will have to divert them, towards We The People. And all and any president, but for Clinton, did this, investing in the USA, better than Obama did. Since president Hoover.

In retrospect, those who wanted progress, at least by the measure of investing in the country, should never have voted for Clinton or Obama. How can one hope that the creature closest to them would be any different?

Patrice Ayme’

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WHAT’s WRONG WITH THE ECONOMY?

January 15, 2016

The strategy. The tactics. Everything. Since 2008, the central banks have created money. Why? Key actors of the economy lost too much money in 2008 to keep on functioning. Some of these actors: banks and “shadow banks”.

How did the central banks create money? Mostly by buying government debts from the large private banks. The banks thus made money. Who caused the 2008 crisis? The banks. Thus the very strategy used is Orwellian, and promotes a vicious circle. Upon closer inspection, the situation deep down inside is more of the same and even worse.

The result has been a faltering of economic growth, a creeping destitution of the 99.9% in the West, and the blossoming of colossal inequalities and corruption, worldwide:

Inequality Has Brought Down World GDP Growth. And Bringing That World GDP Growth Too Low Brings War

Inequality Has Brought Down World GDP Growth. And Bringing That World GDP Growth Too Low Brings War

True, banks are more regulated than in 2008 (but much less than before the Clinton presidency brought devastation to the regulation of finance!) However, a large, maybe the largest, part of the banking system is “Shadow Banking”. That’s not regulated. By fostering fiscal heavens and anonymous financial entities, Great Britain and the USA are actually expanding the “Dark Pools” of money which feed “Shadow Banking”.

So what have the banks done with the money generously given to them by central banks? Did they invest it somewhere fabulous? No. There has been no new technological, industrial, economic, social breakthrough which needed, and provided with, the opportunity of massive investment.

(There were some efforts towards “sustainable energy”, but those subsidies and regulations are dwarfed by those in favor of fossil fuels, which total 5.5 trillion dollars, according to the IMF; the key is fossil fuels do not require much new investment, including in research, development and education as new energy sources would.)

No new nuclear program was instituted (say replacing all old reactors with better and safer ones), no thermonuclear powers plants (although a crash program would have probably produce those already), no massive space program (comparable to Apollo in the 1960s).

Even biomedical innovation, hence investment, has petered down (research has been smothered down by marketing, regulations, and cut-throat academia producing poor research).

But, mostly, there has been no new construction program in housing and physical infrastructure. Oh, there is a massive need: the dearth of housing is why real estate is getting out of reach of the middle class, in the top cities, worldwide. (Moreover one can now make positive energy buildings, which produce energy.)

And don’t forget public education has been let go to waste, in the leading countries (with few exceptions: Switzerland, Canada…) It is as if the leadership in the West was afraid that We The People would get knowledgeable and smart.

So where did the money the banks were given by the central banks go? To hedge funds and the like. To the industry of HOT MONEY. One day they buy this, the following week, they sell it, making money, both ways (thanks to financial derivatives). The money created by the banks (which are better regulated, as I said), at this point, once given to financial manipulators, escapes regulation (that’s the whole idea).

“Leaders” know about this. But they obviously intent to keep on getting money from shadow financiers. An example: Obama did not try to tax “carried interest” by hedge funds (although Donald Trump proposes to do so!)

The leading states (USA, UK, EU, China, Japan, etc.) believed that to provide money (“liquidity”) would relaunch the economy. Absent this, massive devaluations would help. Thus Japan devalued by 50%, undercutting South Korea and China severely.

Meanwhile the IMF has allowed these competitive devaluations, following the advice of economists such as Friedman, Krugman. However, this is tickling the tail of the worst devil. War. Economic war is the first step to all-out war, indeed. Competitive devaluations are a form of war.

And what’s the main mission of the IMF? Preventing economic war between the states. This is why the IMF has been created in 1945: “The International Monetary Fund (IMF) is an organization of 188 countries, working to foster global monetary cooperation, secure financial stability, facilitate international trade, promote high employment and sustainable economic growth, and reduce poverty around the world.”

Thus the IMF is failing to do its main job. Notice that many American economists, from Friedman to Krugman, in their anti-European frenzy, have pleaded FOR the economic war of (European!) state against (European!) state, thanks to competitive devaluations.

Notice too that Abenomics, the devaluation of Japan, has not had much of a dent: Japan is still mired in stagnation, no doubt still afflicted by its main problem, the collapse of its population (a problem many developed countries have, especially in Europe; the USA and UK have escaped demographic collapse, mostly through massive immigration).

The world economic strategy reflects the mood of the times: the so-called “free market” is all the thinking and activity we need since Ronald Reagan. That’s in contradiction with policies followed by Colbert, Henri IV and Sully, or even emperors Diocletian and Darius. (Darius reigned over Persia 25 centuries ago.) They, like Julius Caesar, thought that the economy had to be governed by the state.

Will China try a massive devaluation, a la Abe in Japan?

Since 2008, the governments, mostly in the West, have been cowardly. The USA suffers from massive inequalities (and no, Mr. Obama, the situation is no as good as eight years ago), the European Union suffers from too much regulations (including at the level of services, where the European UNION has not been implemented), China is a dictatorship which became richer by exploiting workers relentlessly, etc.

Those competitive devaluations and lots of money sloshing around have been addictive: central banks engage in them, to give the states space, and the states, momentarily relieved, put off necessary reforms.

Inequalities suck up “liquidity” (so power and means) from average people, while putting huge amounts of money, and power, under the control of a few hands. And this money is invested in liquid investments, instead of serious things such as massive, affordable, state of the art housing and cities. Thus this money slosh around the world, like the waves of a tsunami, devastating all it touches (example: Greece, Spain, Portugal, Ireland, Iceland, etc.).

The reason the crisis goes on is the confusion between symptoms and disease. That the main actors in power have interest not to understand the nature of the crisis explains why understanding has not been fostered. Thus very few economists have seen it, let alone politicians. (From Obama down to Nancy Pelosi, Krugman, and countless “Republicans”, but also French Socialists, EC bureaucrats, USA universities professors, most actors of influence have interest to sound as intelligent as cows watching a train pass.)

How did the world come out of the slump of the 1920s to 1940s? Through reconstruction in the “30 glorious years” after 1945. Reconstruction from total war. Something to think of. One thing: many countries are on the verge of implosion. One culprit? The obvious world devaluation blatant in the collapse of the price of oil.

What is the way out of the world socio-economic crisis? The same way as it was done after 1945. Massive social, educative, health and construction programs in the West,  building a useful economy, by taxing those who create the inequalities, and grab all the economy, and opportunities to themselves.
Patrice Ayme’

Of Those Who Mind Minds

October 12, 2015

Polls show that two-thirds of Americans want taxes to be raised for taxpayers earning more than a million dollars a year. It’s not happening. Obama is pushing for the TPP, the Trans Pacific Treaty, which democratic presidential contenders oppose. All over, public opinion has been cornered into impotence: the public wants one thing, they tolerate the opposite. The public’s mind has been made into boiled pasta: easy to gobble, no backbone.

Angus Deaton just got the Nobel in economics. Here is an example of his prose: “There is a danger that the rapid growth of top incomes can become self-reinforcing through the political access that money can bring. Rules are set not in the public interest but in the interest of the rich, who use those rules to become yet richer and more influential… To worry about these consequences of extreme inequality has nothing to do with being envious of the rich and everything to do with the fear that rapidly growing top incomes are a threat to the wellbeing of everyone else.”

Where Does "Austerity" Comes From? The Richest Are Sucking Us Dry Through Debt Service

Where Does “Austerity” Comes From? The Richest Are Sucking Us Dry Through Debt Service

As I have explained for more than a decade, this is nothing new. This exponentiating growth in wealth, and thus power, for the few is how the Roman REPUBLIC was destroyed (and replaced by the despicable and stupid Roman plutocracy, aka “empire”).

The same phenomenon also happened when the Imperium Francorum (Empire of the Franks) went from the mild plutocracy known as the “Renovated Roman Empire” to the hard, abusive and demented plutocracy of the Late Middle Ages, “Renaissance”, and “Enlightenment”.

158 families, some of them not even bothering to reside in the USA, are busy buying themselves a president of the USA. Hey, why not? This has been working ever better for nearly half a century, ever since Mr. Nixon using public money to boost Mr. Kaiser’s health maintenance scheme (the President and the Kaiser: quite a program!). Say NYT’s Confessore, Cohen and Yourish, October 10, 2015:

“They are overwhelmingly white, rich, older and male, in a nation that is being remade by the young, by women, and by black and brown voters. Across a sprawling country, they reside in an archipelago of wealth, exclusive neighborhoods dotting a handful of cities and towns. And in an economy that has minted billionaires in a dizzying array of industries, most made their fortunes in just two: finance and energy.

Now they are deploying their vast wealth in the political arena, providing almost half of all the seed money raised to support Democratic and Republican presidential candidates. Just 158 families, along with companies they own or control, contributed $176 million in the first phase of the campaign, a New York Times investigation found. Not since before Watergate have so few people and businesses provided so much early money in a campaign, most of it through channels legalized by the Supreme Court’s Citizens United decision five years ago.”

Notice that the New York Times admits that the Supreme Court has “LEGALIZED” ways to channel the power of the few. Notice that Judicial power legislates. Notice that a new form of power has appeared: it’s expressed not just by the wealthiest, by a subclass of the wealthiest, a subclass which profited from the reorganization of the ultimate values of the USA:

“These donors’ fortunes reflect the shifting composition of the country’s economic elite. Relatively few work in the traditional ranks of corporate America, or hail from dynasties of inherited wealth. Most built their own businesses, parlaying talent and an appetite for risk into huge wealth: They founded hedge funds in New York, bought up undervalued oil leases in Texas, made blockbusters in Hollywood. More than a dozen of the elite donors were born outside the United States, immigrating from countries like Cuba, the old Soviet Union, Pakistan, India and Israel.”

Something the New York Times does not imagine is that these people became so rich precisely because they changed the laws first. An example is the entire financial industry, because of the dismantlement of the Banking Act of 1933 (Glass-Steagall). Hedge funds get money from banks and shadow banks, and that would not have happened before Clinton. If the New York Times does not understand it, those politically connected “donors” do, as the New York Times itself observe:

“But regardless of industry, the families investing the most in presidential politics overwhelmingly lean right, contributing tens of millions of dollars to support Republican candidates who have pledged to pare regulations; cut taxes on income, capital gains and inheritances; and shrink entitlement programs. While such measures would help protect their own wealth, the donors describe their embrace of them more broadly, as the surest means of promoting economic growth ….”

Obama went to a hall in Los Angeles. It cost only $33,400, per person, to be there. A fracking family (family making money from fracking), gave $15 million to a particular Republican candidate. Another family, which made a fortune from a hedge fund, gave eleven million dollars. And so on. Even French TV is taking note, and discovers “it’s a threat to us all“. What? No appreciation for a short and brutish life as in the Middle Ages, serving great lords of finance and drinking fossil fuel water?The New York Times admits wealth prevents democratic expression. Actually the paper seems to be a bit confused between the notion of “democracy” and “demography”:

“In marshaling their financial resources chiefly behind Republican candidates, the donors are also serving as a kind of financial check on demographic forces that have been nudging the electorate toward support for the Democratic Party and its economic policies. Two-thirds of Americans support higher taxes on those earning $1 million or more a year, according to a June New York Times/CBS News poll, while six in 10 favor more government intervention to reduce the gap between the rich and the poor. According to the Pew Research Center, nearly seven in 10 favor preserving Social Security and Medicare benefits as they are.

Republican candidates have struggled to improve their standing with Hispanic voters, women and African-Americans. But as the campaign unfolds, Republicans are far outpacing Democrats in exploiting the world of “super PACs,” which, unlike candidates’ own campaigns, can raise unlimited sums from any donor

What does the concentration of wealth at the top do? Mostly shape minds in a way which serves the top guys.

The degree of manipulation of opinion is astounding, and obviously deliberate. (Media are mostly owned by plutocrats: so it’s no surprise!) One could call it a science. A technique is to write an article relating scientific, or sociological facts, say about global melting of ice, or medical care, or guns, and then allowing only commentary derisive of the article. (The Daily Mail in the UK apparently does this to a particularly obvious extent, I observe.)

Another technique is to (implicitly) present banks, and the money-changers as the savior of humanity (the New York Times’ Krugman does this), while not talking about Too-Big-To-Fail banks, Shadow Banking, or the dark connections between banking, derivatives, and politicians.

Angus Deaton, the Nobelist from Princeton University, has looked at the Dark Side: he observed that a lot of financial help to poor countries backfires, as it makes more sustainable for governments to mismanage the society and economy they rule. So the problem with development is more governance (what I call “empire”) than anything else.

Governance is failing worldwide, and this explains why 80 plutocrats are richer than the rest of the world combined.

New Middle Ages Rising

New Middle Ages Rising

The recipient of the “Prize of the Bank of Sweden in Economic Science” is a harsh critic of economic aid from rich countries, like the United States of America, to poor countries. “I have come to believe that most external aid is doing more harm than good,” he wrote in his 2013 book, “The Great Escape.” “If it is undermining countries’ chance to grow—as I believe it is—there is no argument for continuing it on the grounds that ‘we must do something.’ The something that we should do is stop.” The Scottish born Deaton, indeed, is not afraid of controversy: he questions the widespread presumption that rising inequality is always a bad thing.

In other words, Deaton dares to say aloud that the hysterical pursuit of wealth may be good for economic activity. But Deaton claims to have found evidence that wealth brings happiness… until an income of $75,000 income. After which it starts to backfire.

Patrice Ayme’

Why Did Germany Lose World War Two?

July 10, 2015

Because the nasty don’t deserve anything else, of course. But there is much more to say, bearing on the astounding way all too many Germans, starting with their crippled, not to say creepy, finance minister find normal to treat part of Europe, even today.

Salvador Dali pointed out that Germany launched World War Two, just to lose it. The same German sadomasochism is fully obvious with all Germans who proposed to throw Greece out of the Eurozone. Indeed, violent ones, explain to me what to do next with the Greeks? Use German high tech to displace Greece east of New Zealand?

Thankfully, Germany is not Europe’s hegemon (contrarily to what superficialists believe). The French Republic leads a coalition with more economic power than Germany, and (hopefully) is determined to keep Greece under its wing. France is also flouting the restrictions on deficit (Germans can go fight in Africa and the Middle East, to help if they want: the Légion étrangère, which defeated elite Nazi soldiers in Norway in 1940, just got new tanks, which will go into combat in a matter of days)

Hundreds Of Thousands Died In The Battle Of France. Calais, May 1940. The USA Sat On Its Hands, Apparently Waiting For Better Things To Come

Hundreds Of Thousands Died In The Battle Of France. Calais, May 1940. The USA Sat On Its Hands, Apparently Waiting For Better Things To Come

[France was allied with the entire British Commonwealth; however, in May 1940, much of the British army was barely getting over. In particular a promised British armor division supposed to show up where the Nazis broke through, had not arrived. The USA, was, at the time, de facto allied with Hitler.]

After winning his referendum on the NO (“oxi”) to Greece’s creditors, Tsipras operated close to a 160 degree turn. But it makes sense. Now Tsipras has popular support, and he requests help for three years (rather than three months). Greece should be given all what he wants. Enough of starving Europe with lack of money, just as European were starved of food in Nazi extermination camps.

Saving Greece now depends upon defeating (whatever remains of) the fascist mood in Germany. So it’s timely for little recaps on recent German exploits. How did Germany end up killing more than 800,000 Greeks, a little while back?

Starting in 1792, and ending apocalyptically in 1945, the obsession of German speaking plutocrats was to destroy the French Republic. In the process, Jewish European and Prussia got annihilated.

I don’t like Muslim Fundamentalism, nor do I like German Fundamentalism. The latter’s ugly mood has resurfaced recently. Fortunately, the hegemon in Europe is not ugly obsolete, tribal moods, but the French Republic. (For all the claims that Germany is Europe’s superpower, the Eurozone coalition of countries indulgent with Greece led by France had 54% of the GDP, a few days ago.)

The correct lessons of how Germany got crazy in the Twentieth Century have not all been drawn. Reading Nietzsche helps, as he forecast in a general fashion what happened next, including with the Jews, although it turned out perhaps even worse than he expected.

The French Republic nearly annihilated the Prussian plutocracy in the first week of September 1914, in a bold counterattack, east of Paris. After that, the, entrenched, frontlines did not move for four years.

In 1919, at the Versailles Peace conference, the French Republic tried to make sure Germany could not try the same sort of attack again, as easily. In vain: Great Britain and the USA had interest to keep the French Republic down, and Germany was the best way to insure that. France was left to face German fascism alone. Germany refused to repair its deliberate destruction in France and Belgium, and soon turned to a maniac to help getting even more crazy.

Ever since 1792, the greatest enemy of plutocracy is not plutocracy, German or not, but the French Revolution. In 1815, at Waterloo, France was partly dismembered, losing parts of Gaul (otherwise France would be a 100 million superpower now; instead a French pilot from Airbus had to content himself today with traversing the channel in an electric plane; Airbus plans hybrid electric jetliners soon).

Besides the necessity to keep the French Revolution down, Germany could be made into a plutocratic province of Anglo-Saxon plutocracy… As it was. Such facts put plutocracy in a bad light, and are certainly not official historical analysis.

French leaders expected Germany to try to destroy the French Republic again within 20 years. As happened.

So the question arises naturally. Why, if the Germans were so keen to make another world war, did they not learn from their mistakes? The question surfaces all over. Here is a short one:

Why did Germany lose WWII?

This is a short compendium of well-known reasons. It is entirely correct, yet entirely silly.

Its main argument is that Germany did not have the economic capability to take on the UK, the USA, and the USSR.

Yes, true: but how did it get to that? In, say, 1935, 1936, Nazi Germany was de facto, or formally allied to Great Britain (with a formal treaty in 1935), the USA (massive investor and even monopolist in the Dritte Reich), and the USSR (the secret alliance between Germany and the Bolsheviks, dating from 1916 was made official in 1939).

The other two reasons given are second, or third order (not false, but secondary, consequential to much more important reasons).

One should not forget everything really important, such as history, computing, intelligence…

Where to start in exposing why Germany lost World War Two? First of all because Germany was perverted by an abominable mentality.

France Then, Greece Now?

France Then, Greece Now?

The Nazis used to point out that France started World War Two. Indeed, sort of:

***

Nazi Germany lost the so-called Second World War because the French Republic declared war to Hitler on September 3, 1939, while dragging Great Britain into the conflict.

It required guts on the part of the French. When the French Republic declared war, Hitler was allied to Stalin, Mussolini, the Japanese fascists, and not least, a giant panoply of plutocrats from the USA who made sure Congress did as they wanted.

American plutocrats provided the Nazi dictator with an entire economy, not just enough weapons to kill an estimated 10,000 opponents in 1932. American plutocrats provided Hitler with advanced secret technology, such as how to make synthetic oil (Exxon, then under another name) and computers (IBM: did not change names, just covered up the story), and near infinite financing: Prescott Bush, grandfather of W. Bush managed the most important Nazi war industry, American Silesian. And so on. Books on all of this are given the very cold shoulder by (plutocratically financed) universities of the USA.

Hitler had no oil, at all. But Texas, and, in particular, Texaco, had plenty, and so did the USSR. They sold it to Hitler.

Without American plutocratic corporations input, Hitler could not have driven one single mile inside France.

Nazi computers? The IBM corporation of the USA had been given the monopoly of computing inside the Reich. The vaunted Nazi organization was all managed from New York (starting in 1942, after Hitler had declared war to the USA, said detailed management went on, but passed through Geneva).

Hitler wanted a world war, but he knew he was not ready. He had 1,000 medium tanks (although he got another 1,000 from Czechoslovakia). France had more than 3,000 tanks, most of them heavy, or superior to German tanks. (Let alone the UK’s two armored divisions.)

Hitler knew he was not going to be ready before 1945, just to confront France and Britain (supposing those two did not arm themselves even more!).  By 1945, the new German weapons would have been massively produced (jet fighters and bombers, anti-aircraft rockets, aircraft carriers, new silent submarines, mass production of Panther and Tiger tanks, etc.)

The French knew all of this. They could see Hitler had constituted ten armored (“Panzer”) divisions (the French had seven armored division, and three super heavy, unstoppable armored divisions). By declaring war on September 3, 1939, France short-circuited all of Hitler’s strategy.

France Bet All In Opposing Hitler. Roosevelt Had Pledged To Help, But He Lied. More Than 50 Million Europeans Died, USA Prospered

France Bet All In Opposing Hitler. Roosevelt Had Pledged To Help, But He Lied. More Than 50 Million Europeans Died, USA Prospered

By the time Hitler attacked the USSR, the campaigns against Poland, France and Crete, and the defeat suffered in Norway at the hands of the French Foreign Legion, had cost Hitler the death, or “disappearance” of no less than 150,000 of his most fanatical soldiers, and the Wehrmacht was actually less powerful than when it attacked France.

The Luftwaffe (Nazi Air Force) had lost more than 4,000 planes, and thousands of its best pilots. By December 1940… Between the battles of France and the Battle of Britain…

Not only this, but because the Nazis were forced to mass produce existing equipment, they could not develop, and mass produce, new weapons. By the Battle Of Brody (June 1941), the Germans discovered that the new Soviet T34 tank was nearly as impervious to their weapons, as heavy French tanks had proven, a year earlier (one heavy French tank had taken 400 hits before being destroyed).

And so on. The Brits broke German codes very often, all too often. For example, British intelligence was even able to warn the USSR about the detailed Nazi attack plan at Kursk in 1943. Kursk was the last ditch Nazi effort: failing it meant failing the war in the East; it failed, because the Soviets mysteriously anticipated all German moves. Thus the greatest tank battle ever was lost, and after that the Nazi empire was just a fat, obese, soft belly facing Stalin’s 600 divisions.

Stalin counter-attacked at Moscow in December 1941 because his spy Jorge, and others, who had told him in advance that Japan would attack the USA (instead of attacking the USSR). That allowed Stalin to put the entire Siberian Army on trains, and bring it to the front around Moscow.

Nazi Germany lost, because France and Britain surprised it by daring to attack Nazi Germany and its allies, the USSR, and American plutocracy in September 1939. As a devastated Hitler said with insane fury to his collaborators on September 3, 1939, after receiving the Franco-British declaration of war, and watching Berlin silently for ten minutes: “NOW WHAT?”

Goering mumbled: “If we lose this war, God help us.”

Indeed. The Americans, not amused by Nazi war crimes, hanged very slowly (around twenty minutes, or more), some of the top Nazis. (They claimed disingenuously that it was all accidental.)

A year later, a year after France (and Britain) declared war, the war was lost. Just like Napoleon, and for the exact same reason, Hitler could not cross the channel: the First French army, making a circle of steel and fire, had allowed the entire British army to escape at Dunkirk.

Hitler had to secretly prepare to attack his Soviet ally. As he explained to 10,000 Nazi Generals, there was no choice: Britain could not be defeated. The Nazis had to crush the USSR before Stalin understood that.

An attack was planned in mid-Spring 1941, to make sure Moscow would fall before the following winter. However his ally Mussolini had a mind of his own. After being severely defeated by the French in June 1940, he was anxious for revenge, and virile behavior worthy of his alleged ancestors. The Italian buffoon gave an ultimatum to Greece, invaded, and was promptly defeated by the Greeks.

That was a serious problem: with an hostile, British (and Free French) allied Yugoslavia and Greece to the south, Hitler was in danger of a British (and French) counterattack to the south. So Hitler attacked Yugoslavia and Greece. while the British rushed to the rescue. The Nazis could not swim tio Crete, so they flew all their paratroops. They won, after severe losses. In the end, the attack of Russia was differed by six weeks. And it’s a significantly diminished German army which attacked.

The battle of France had been lost for a number of factors, most of them accidental (several unlikely accidents together, at the same time, brought a catastrophe).

So why did Germany lost World War Two? What was the fundamental cause?

Because the French Republic attacked in a timely manner.

Patrice Ayme’

Beware Of Those Who Brought Greeks Gifts

April 20, 2015

The hidden logic in various human activities is often different from the apparent one. This is true in sociology, politics, economics. Consider NAFTA (North American Free Trade Accord), QE (Quantitative Easing: make banks richer so they be gooder), TPP (Trans Pacific Partnership: Terrifying Plutocracy Punishing China), etc.

For a decade the Greeks, having had their Drachmas converted into Euros at twice their natural worth, brought gifts to the rough Germans, by buying their luxury cars. Now Germany is rich and powerful, and Greece poor, and weak. Best conditions to pay for Greek arrogance.

There is totally no economic reason to keep on punishing Greece at this point. So why do the punishments keep on coming? One has to resort to a few twisted psychological explanations.

Lots Of Debt: Some Can Be Turned Into Tax, Some To Foreign Extortion

Lots Of Debt: Some Can Be Turned Into Tax, Some To Foreign Extortion

My twisted psycho analysis will complement the excellent editorial from Krugman: ”Greece on the Brink”.

“…Can Greek exit from the euro be avoided?

Yes, it can. The irony of Syriza’s [the present governing party, in alliance with nationalists] victory is that it came just at the point when a workable compromise should be possible.

The key point is that exiting the euro would be extremely costly and disruptive in Greece, and would pose huge political and financial risks for the rest of Europe. It’s therefore something to be avoided if there’s a halfway decent alternative. And there is, or should be.”

Notice that Paul Krugman has now an opinion on the “Grexit” exactly opposite to the one he had just two years ago. What he and others have not understood, is that I do not see why Greece could not default and stay in the Eurozone. To identify both concepts, is a way to terrify, but it does not have to be, except as a terror instrument.

Krugman: “By late 2014 Greece had managed to eke out a small “primary” budget surplus, with tax receipts exceeding spending, excluding interest payments. That’s all that creditors can reasonably demand, since you can’t keep squeezing blood from a stone. Meanwhile, all those wage cuts have made Greece competitive on world markets — or would make it competitive if some stability can be restored.

The shape of a deal is therefore clear: basically, a standstill on further austerity, with Greece agreeing to make significant but not ever-growing payments to its creditors. Such a deal would set the stage for economic recovery…

But right now that deal doesn’t seem to be coming together… the creditors are demanding things — big cuts in pensions and public employment — that a newly elected government of the left simply can’t agree to, as opposed to reforms like an improvement in tax enforcement that it can. And the Greeks, as I suggested, are all too ready to see these demands as part of an effort either to bring down their government or to make their country into an example of what will happen to other debtor countries if they balk at harsh austerity.

Rightly so: if Greece default, students in the USA, with an outstanding, non-extinguishable debt of 1.2 Trillion dollars (!) may think: ’Why not us?’

Greece has a ratio of 170 per cent of debt to GDP. However, the debt has a very low interest rate and a maturity of over 15 years. Its impact on the economy is much lower than in Portugal, Spain, or Italy. And that is the entire point: the Italian economy is terrible. Last year 170,000 refugees flooded Italy (they came back to be colonized again by the big bad colonialists!)

A new round of Greek restructuring would create political problems for Eurozone governments which, as a percentage of GDP, face a higher interest bill than Greece. How can the Spanish or Italian Prime Minister tell their aghast subjects: ‘Greece has a lower interest burden than we have, but we need to alleviate their burden! And not yours!’

And then there is the question of countries like France, where austerity is applied, while the country is paid by investors to consent to store their money there. That can only mean that, in the light of our guides, austerity is an absolute good.

Krugman detects the will to torture the Greeks, because:

To make things even worse, political uncertainty is hurting tax receipts [and investing!!], probably causing that hard-earned primary surplus to evaporate. The sensible thing, surely, is to show some patience on that front: if and when a deal is reached, uncertainty will subside and the budget should improve again. But in the pervasive atmosphere of distrust, patience is in short supply.

It doesn’t have to be this way. True, avoiding a full-blown crisis would require that creditors advance a significant amount of cash, albeit cash that would immediately be recycled into debt payments. But consider the alternative. The last thing Europe needs is for fraying tempers to bring on yet another catastrophe, this one completely gratuitous.”

None of these apparently absurd policies imposed on Greece, are absurd. They just look absurd to those attached to human rights. From the point of the perpetrators, they are fully logical. And they are certainly not gratuitous.

Contemplate this: If the Greek government succeeded to augment tax revenues, it would succeed to tax the 1% significantly, especially the super-rich. If, in combination with a primary surplus, that was deemed sufficient for the rest of Greece creditors (including those based in Washington, like the IMF), that would be a demonstration for all to see that the present economic crisis has to do with NOT taxing the hyper rich enough. As taxing them would be enough to solve everything.

This is exactly the lesson the plutocrats and their servants do not want to be advertised.

Hence their reluctance to accept that taxing the hyper-rich is enough. But there is a further twist. The “Socialist” French Finance Minster, Sapin, is as hysterical as his German colleagues to insists Greece should pay… Until catastrophe ensues. Of course, as all the others, he has to think about his income once he gets kicked out of government within 2 years (probably). But there is still another angle.

Suppose catastrophe ensues: Greece defaults, exits the Eurozone. Then what? The Euro probably goes down much more (for a long number of reasons… no least that there would have been a default, and Greece would still have to be helped!)

Then the Euro, may go as low as it was when Germany was in great difficulty, a decade ago. So it would be good for Europe: whereas the USA depends only for 13% upon international trade, France depends at 28%, and Germany much more.

Right wing individuals, many of them who have been partners at Goldman Sachs (Monti, or the head of the ECB), or in general are tied in to High Finance, are not interested in seeing a left-wing government succeed, where the right has failed. Creditors will keep destroying the Greek economy. They may be nice people, but mostly with their kind.

One could point to creditors that they were the ones who converted the Drachma at twice its real rate against the Euro. As co-responsible, they should be punished too! However, this would not go in the sense we are supposed to attribute to history.

This Greek tragedy makes sense. Plutocratic sense. This is a world where the weak and small is in debt to the mighty, and has to learn living that way, as serfs did, in the Middle-Ages. Otherwise, they can be made an example of.

Patrice Ayme’

Europe’s Greek Tragedy

January 30, 2015

Finance Without Morality, Is Only Ruin Of The People:

People like a good cliffhanger. It beats difficult analysis, any day. Will Greece be pushed out of the Euro? Everybody wants to know.

The answer is simple: no. Before I explain why, let me point out that Paul Krugman, over the years, said many silly things about the Euro. However, he is learning, and his last effort, “Europe’s Greek Test”, is pretty good.

In the five years (!) that have passed since the euro crisis began, clear thinking has been in notably short supply. But that fuzziness must now end. Recent events in Greece pose a fundamental challenge for Europe: Can it get past the myths and the moralizing, and deal with reality in a way that respects the Continent’s core values? If not, the whole European project — the attempt to build peace and democracy through shared prosperity — will suffer a terrible, perhaps mortal blow.”

OK, Krugman should not call it the “euro crisis”. It’s not anymore a “euro crisis” than the related 2008 crash was a “dollar crisis”. And the point is not to get “past moralizing”, but to get, precisely, in the thick of true moralizing.

Krugman: “But doesn’t Greece have an obligation to pay the debts its own government chose to run up? That’s where the moralizing comes in.” And the moralizing is not just the way plutocrats and their parrots claim it to be. Krugman has finally discovered that only one side is submitted to beating until the masters’ mood improves:

“It’s true that Greece (or more precisely the center-right government that ruled the nation from 2004-9) voluntarily borrowed vast sums. It’s also true, however, that banks in Germany and elsewhere voluntarily lent Greece all that money. We would ordinarily expect both sides of that misjudgment to pay a price. But the private lenders have been largely bailed out (despite a “haircut” on their claims in 2012). Meanwhile, Greece is expected to keep on paying.”

Paying for what? Banksters! Krugman has finally come across the great truth of the so-called rescue of Greece:

“…to oversimplify things a bit, you can think of European policy as involving a bailout, not of Greece, but of creditor-country banks, with the Greek government simply acting as the middleman — and with the Greek public, which has seen a catastrophic fall in living standards, required to make further sacrifices so that it, too, can contribute funds to that bailout.

One way to think about the demands of the newly elected Greek government is that it wants a reduction in the size of that contribution.”

Krugman concludes:

“Objectively, resolving this situation shouldn’t be hard. Although nobody knows it, Greece has actually made great progress in regaining competitiveness; wages and costs have fallen dramatically, so that, at this point, austerity is the main thing holding the economy back. So what’s needed is simple: Let Greece run smaller but still positive surpluses, which would relieve Greek suffering, and let the new government claim success, defusing the anti-democratic forces waiting in the wings. Meanwhile, the cost to creditor-nation taxpayers — who were never going to get the full value of the debt — would be minimal. 

Doing the right thing would, however, require that other Europeans, Germans in particular, abandon self-serving myths and stop substituting moralizing for analysis. 

Can they do it? We’ll soon see.”

The usual moralizing analysis that is done is not just completely wrong, but thoroughly superficial: the average Greek has been punished for a crime she and he did not commit. They are been punished with their lives. Meanwhile, the culprit bankers are not giving back their mansions.

So Germany is going to become reasonable about Greece. Why? Because it is co-responsible: the Drachma was converted into Euro at twice its real value. Germany agreed to this. That instant wealth for Greece was going to bring a lot of purchase of German luxury cars by wealthy Greeks, and it did. So the average Greek was set-up by wealthy and controlling Germans, whose influence made German economists consent to malversation.

Another point: Germany saw its debt cut down four times during the Twentieth Century, and the last time was in 1953. Basically Germany did not have to pay for Nazism and reconstruction.

If Germany did not have to pay for Nazism, why should Greece have to pay for German bankers? (Hmm… Wait. It actually makes sense…)

In particular Germany did not pay in any commensurate fashion for the Greeks it killed in World War Two. How many Greeks did Germany kill when it attacked Greece in Spring 1941, and for the next four years of brutal occupation, complete with sending tens of thousands of Greek civilians to extermination camps? Or killing them on the way?

So many Greeks were assassinated by the Nazis that one does not know how many died. Up to more than eleven percent of the population. Scaled up to the present population of the USA, that would be around 33 million dead.

33 million dead, and now you ask for more?

The sort of governments which has been in power throughout the West, has been serving the wealthy capital class, from the USA to Greece. It’s not just the Eurozone.

The British Royal Mail was evaluated by some financiers at 12 billion Euros. But the “Conservative” government sold it 4 billion. In a few hours of trading, the privatized company gained 60%, making a lots of instant wealth for investors.

Plots everywhere by the plutocrats, what could go wrong? A Great Bitter Ocean to drown in.

Some ponder the nature of man, the Dark Side French ex-justice minister Badinter spoke about.

Yet, that’s another mistake. One does not avoid cruelty by just becoming a vegetarian, or a vegan. Actually, it’s easy to argue that this is an immoral mood.

Instead, blame General Economics.

It has been thoroughly documented that, in national parks such as Amboceli, elephants kill goats and cattle, just because they don’t like them crowding around water holes.

MORALITY HAS TO REACH ACROSS CENTURIES:

Spain, now followed by Portugal, has decided to allow Sephardic Jews to return. Five centuries after throwing them out. This is worth pondering as a morality play. After 381, the Catholic Church became not just a terrorist organization burning libraries, but an officially sanctified one lethal one killing all groups it did not like, and, first of all “philosophers”. The Church came close to annihilating the Jews, but then the Franks took power and re-established the civil rights of non-Catholics. In the following centuries, many Catholics converted to Judaism: whereas the Pope and his goons always threatened to burn alive miscreants, Judaism was more relaxed.

However, for a number of reason, such as Saint Bernard, Saint Louis and the like, and the death struggle against the Islamists who occupied most of the Mediterranean, the Catholic Church and its Inquisition came back in force.

Millions of Jews were thrown out, or forced to convert to Catholicism, or terrified, tortured to death, burned alive. Even towards the end of the Eighteenth Century, Voltaire condemned the execution of a young Jewish girl, burned alive in Portugal, just because she was a Jew.

Well, last week, a ten year old Nigerian girl was covered with explosives, and detonated in a market place, by Boko Haram, an Islamophile terrorist organization.

That would have been unimaginable in Nigeria, sixty years ago (you know, under the dirty colonialists). But now, it’s happening, and it’s the leaders of the world who are culprit. Because that’s the world they organized. With their lies.

So let’s talk truly now, and start with Greece. When one of the world’s most despicable men, Jean-Claude Juncker, a tax evasion specialist serving plutocrats for decades, enabling trillions of dollars to be stolen from the people, say that Greece, the Greek people, should pay, we should retort.

Retort that it is his kind that should pay, so we can start to put an end to the systems of moods and lies they set in place.

Plutocrats and those who enable them, have been full of audacity, for decades. But, without audacity, you cannot save the Republic. Because the world, or at least the ecology, always moves on.

Ah, and of Greece and the Euro?

The Greek Central Bank can actually print all the Euros it needs. So the charade in Greece was made possible by the complicity of the ruling elite. Syriza can put an end to that.

And what of Germany forcing Greece? How? By bringing back the Schliefen plan, and swinging millions of robotic soldiers, through France, as in 1914? Hahaha. Sorry, I am obnoxious. Not likely, anyway, as 98% of the military muscle in Europe is held by France and Britain.

The Euro is the Greek currency. Germans can’t change that. It would be easier for them to adopt the rubble of the Rouble as new German currency instead.

Not that force should not be used. Banksters and their accomplices should be made to regurgitate the ill profits they made from Greece and other places they victimized.

Patrice Ayme’

Economic Incompetence A Cover-Up?

December 14, 2014

Senator Elizabeth Warren (Democrat, Massachusetts) is one of the couple of American politicians with a progressive mindset. She has criticized the latest government funding bill because it repeals part of Dodd-Frank (notice that the Democrats are still in power, doing this re-augmentation of the power of financial plutocrats, just before leaving office, no doubt to reap their rewards when they will be looking for juicy compensations in a few weeks).

Warren also disagreed with Obama’s nomination of investment banker Antonio Weiss for the Treasury Department (not the first time Obama names such a fat cat to watch the hens, a method now copied by Hollande).

Warren will never be part of the real government of the USA (those are people such as Weiss, or (famous for her “Fuck-Europe) Nuland who stand just below the figure heads (Obama, Hagel, Kerry, etc.) Or then she will have to do what she is told.

It is true that some American politicians instituted forceful reforms: the two Roosevelts and JFK were from a plutocratic background, and the three of them were also warriors (real ones). Johnson, however rotten, rode JFK’s assassination to pass a progressive agenda, and Eisenhower, with his 93% upper margin tax, was also a warrior.

In all cases, progressive American politicians were extremely aggressive types. In comparison, Bill Clinton, a spineless schmoozer, made it so that the financial derivatives market went from 80 TRILLION dollars to the present 800 trillions.

So the financial derivatives market is about 12 times WORLD GDP. In other words, for one transaction among the low lives, the fat cats make 12.

Here comes Krugman, in his latest, “Made As Hellas”:

“The Greek fiscal crisis erupted five years ago, and its side effects continue to inflict immense damage on Europe and the world. But I’m not talking about the side effects you may have in mind — spillovers from Greece’s Great Depression-level slump, or financial contagion to other debtors. No, the truly disastrous effect of the Greek crisis was the way it distorted economic policy, as supposedly serious people around the world rushed to learn the wrong lessons.”

Well, I have several twists on this: first, the fundamental crisis was the financial derivatives crisis in New York and London. Second, as I will show, the wrong lessons were taught by the usual cast of deviant characters and their servants. It was, it is, a case of intoxication with the wrong ideas, to poison the world’s entire economy, thus its society, and future… to profit the few who hold the strings.

Krugman pursues: What happened last time, you may recall, was the exploitation of Greece’s woes to change the economic subject. Suddenly, we were supposed to obsess over budget deficits, even if borrowing costs were at historic lows, and slash government spending, even in the face of mass unemployment. Because if we didn’t, you see, we could turn into Greece any day now. “Greece stands as a warning of what happens to countries that lose their credibility,” intoned David Cameron, Britain’s prime minister, as he announced austerity policies in 2010. “We are on the same path as Greece,” declared Representative Paul Ryan, who was soon to become the chairman of the House Budget Committee, that same year.

In reality, Britain and the United States…were and are nothing like Greece. Now Greece appears to be in crisis again. Will we learn the right lessons this time?

I have no idea how events in Greece are about to turn out. But there’s a real lesson in its political turmoil that’s much more important than the false lesson too many took from its special fiscal woes.”

Krugman is superficially correct, but fundamentally naïve.

An elite of sort-of thinking thieves conspiring with the world’s biggest plutocrats, rules, abuses, exploits, and splurges.

That elite of robbers has run out of sophisticated bogus arguments which everybody believes in, so, now, they are trying to present themselves as incompetent … but they then add that anybody else would do much worse than they do.

In other words, the plutocrats and their political accomplices and agents use now their own incompetence as a cover-up.

How do I know that they deliberately use incompetence as a cover-up?

I saw recently the worst accusations being flung at some cabinet ministers in France (where it is a crime to insult the members of the government) and against others, such as Juncker (a fitting name, close to “junk”).

Juncker, the new head of the European Commission, who, over a quarter of a century, as Finance Minister, and then Prime Minister of Luxembourg, organized outrageous tax evasion of the order of trillions of Euros by some of the wealthiest individuals and corporations in the world, thus putting in misery hundreds of millions of Europeans. Juncker, is arguably, one of the world’s top criminals, ethically speaking. His monstrous crimes leave him impassible: apparently he has seen, or committed, worse.

So how do these extremely high level politicians react, when they are told, in public, they are greedy, thieving, conniving, low lives? Well, they react as if they fully expected those complaints and insults: they find them natural. Why? Obviously because they did, indeed, commit them, and they know very well their crimes are in plain sight.

We have many examples of the worst regimes in the last 4,000 years of recorded history, when regimes went astray, and yet, they found many to serve them.

We are experiencing now such a case. Basically all European politicians, and the political system they grew from ought to be thrown out, and replaced by direct democracy. How? Just copy what is done in Switzerland.

The problem is the same in the USA. But, as the world’s largest national economy, and military, and networked empire, the USA plutocrats have fed their servants with more crumbs. Hence the more subdued and less revolted state of the American populace…

Patrice Ayme’

Live Within Our Means, Say Mean Plutocrats

December 5, 2014

Austerity Is A Conspiracy By Those Who, Having All The Money, Want Us To Have None:

What do plutocrats want? In the common, all too restrictive sense of plutocracy as the “rule of money”, “plutocracy” is supposed to mean that plutocrats want their money to rule.

Yet, plutocracy is not just about money. Even if one starts with “money”, one ends up with much more. Indeed, money is power onto others. By establishing charities, foundations, political financing, and other networks of influence, plutocrats extent invisibly their power beyond the horizon, and below the ground.

However Homo Sapiens Sapiens not being made to be submitted to others “power”, we have there, in this will to quasi-infinite plutocratic power, a form of cruelty, not to say, mayhem. Power struggles kill, among chimpanzees.

Britain Won Its Place In The World Through Ultra Massive Borrowing & Money Creation

Britain Won Its Place In The World Through Ultra Massive Borrowing & Money Creation

Notice that, with chimpanzees, even the alpha male has very little power: as soon as three of his subordinates gang up against him, he is toast. The same holds with wolves, or lions.

But civilization is all about power. When only a few have its reins, they become like gods. At least in their minds, habits, ways, and means. That’s why plutocrats, their obsequious servants, and those they have hypnotized, worry so much about “us living within our means”.

 

A Few Guys Have ALL The Power, What Could Go Wrong?

Whereas a modern bureaucrat, like Eichmann, can send millions to death. Some will say the analogy is in poor taste. But not so. People such as Obama, Hollande, Putin, can literally launch actions that, in the worst possible case, could lead quickly to the death of billions (it takes just one 300 kiloton thermonuclear bomb to destroy most of any city on Earth).

I do believe that so much power, in so few hands, in so few brains, is not just immoral, but unwise. This makes civilization highly unstable.

However, a meta-discourse has been held, not just logically, but emotionally: it is OK to have so much power in so few hands.

Let’s put aside the main problem aside. The main problem being that absolute power corrupts absolutely, and that Czar Putin, for example, has more power than all the Czars who existed before him, put together: it’s not just that Stalin, had no H bombs. Both him, and Brezhnev, were worried by the Politburo (their top communist colleagues). Putin, by comparison reigns on a coterie of obsequious plutocrats, anxious about Polonium in their tea, or homicide by heart attack.

Not that Putin needs to give a direct order. For someone who can roughly kill half of Chechnya, and then get away with offering luxury homes there to his gregarious friend the “star”, not to say czar, Depardieu (not prosecuted for war profiteering, whereas the French government prosecutes commoners for basically nothing, commonly), letting it known to its secret services subordinates that he would love it if contradictors could just vanish, is elementary.

An aside here: when top official of the Nazi administration asked Adolf Hitler directly whether there was a systematic policy in place for killing Jews, Adolf Hitler firmly denied there was. At the Wannsee Holocaust conference, top Nazis confronted SS General Heydrich, and told him that Hitler had personally told them that it was not the policy of the Reich to kill the Jews. And they felt sure that, should they ask Hitler that same question again Hitler would give the same answer.

To that Heydrich icily replied, with a thin smile: ”Of course, he will!”

The fundamental problem with the top Nazis was not that they had some very bad ideas, it was that they had too much power. That enormous power (greatly enabled by the dog-like submissivity of the average German at the time), led them in a quick succession of choices, ever more abysmal, starting in January 1933. (To this, as soon as 1933, the French and American Republics reacted by engaging in giant military spending to equip themselves for a world war; Poland and Britain, instead, reacted by becoming Hitler’s best friends… They would realize their mistake in 1939)

 

If A Few Guys Can Fry Us All, Why Can’t They Own Us?

If it’s OK to risk thermonuclear Armageddon with a few morons in control (for vicious moron, consider Putin), why is it not OK to risk an economic apocalypse, let alone a climate apocalypse, with even more morons in control?

Is it not more… democratic? If Obama has too much power, does not giving ever more power to the Koch Brother, Bill Gates, and the Z guy from Facebook counterbalance that?

In any case, bleat the sheep, if plutocrats have all the power, they take all the decisions, and we can rest.

So, indeed, we have to ask again, what do plutocrats want? What train of evolutionary thought do they come from?

Well, simply the cruel streak which leads to extermination. The main problem of man has been man. For millions of years, being the top predator.

 

Insane Austerity Is Plutocracy Under Another Name:

One of the appreciated commenters on this site, Chris Snuggs, made the observation that:

It is not “austerity for austerity’s sake”, Patrice. It is simply the principle of “living within one’s means”. NO COUNTRY IN EUROPE IS DOING THIS. The idea that “ending austerity” is the solution is risible leftist claptrap. It is the failure to live within our means that has led to this as politicians at all levels either bribe voters with the latters’ own money, or in the case especially of Italy and Greece simply steal it.

If it were just Italy and Greece, we would be safe. Stealing from politicians is a worldwide phenomenon.

The son of the preceding (“socialist”) president of Senegal, found himself with a fortune of more than a billion dollars. After a change of president, judges put him in jail, in the hope of finding out where the money came from. Senegal is one of the world’s poorest countries (having no resources of any sort, but for fish devoured by Korean factory ships, which, I am sure, paid very well; the fish came back after the new president asked the Koreans to pay, and the French empire lent a military jet which takes pictures).

Living within our means” sounds good, but a sovereign country is not a family (contrarily to what Obama said).

The money within a country is not a store of value (only gold reserves are; most countries got rid of them). Instead, money enables the population to do a number of things. If there is not enough of money around, these things cannot be done.

Moreover, money, like blood, has to circulate.

However, it’s not doing that anymore, as the wealthiest store it, and have less use for it than the lower classes.

 

How Not To Live Within The Means Of the Wealthiest:

Take the case of France.

Suppose France borrowed a trillion Euros on the free market, at the present rate of less than 1%. Investors, in their despair, are ready to lend to France at that rate, on the ten year bond.

Such a borrowing would allow the government to augment enormously its spending: it could pay for the best universities in the world (as China is presently trying to do), it could finance all sorts of fundamental research, it could even fabricate large Thorium reactors, with the whole economy to go with them (mines in Brittany, U 233 breeders, etc.). Presto, no more energy and CO2 crisis, and reactors which could be sold worldwide.

The pessimist would bemoan that we cannot afford it.

Of course we can: it would cost, nothing.

How so?

Hopefully, inflation, over the next ten years, will be 1% per year, entirely cancelling the interest payments. Higher inflation, though, would devour the principal.

Is this all fancy? Today the Chancellor of the Exchequer (Britain’s finance and economy minister), G. Osborne, announced that Great Britain will, finally, reimburse its First World War debt. How? By borrowing at 4%, the lowest interest in Britain for a very long time.

Says Osborne: “This is a moment for Britain to be proud of. We can, at last, pay off the debts Britain incurred to fight the first world war. It is a sign of our fiscal credibility and it’s a good deal for this generation of taxpayers. It’s also another fitting way to remember that extraordinary sacrifice of the past.”

Actually it’s even better than that: some of the debt to be repaid comes from the Crimean War, the wars against revolutionary France, and even the South Sea Bubble (three centuries ago).

 

Borrowing Can Buy You The World:

As Dominique Deux, another esteemed commenter on this site, reminded me: “Britain did not get to be the world’s first industrial power by “living within her means” but by extensive long-term borrowing.”

Right.

It is even better than that: The Bank of England, the world’s first central bank, was created to support the Royal Navy. Basically, if the Navy needed money, the Bank would print it.

That was put to good use a century later. France was much larger economically, economically, not to say intellectually, than Britain, so fighting the French superpower seemed ridiculous. However, as France was in the way, this is exactly what Britain did in 1756-1815. Paying Prussia as an attack dog, creating a huge Navy, etc.

How?

By borrowing extravagantly. So much borrowing that Britain won, but for the little problem of the French engineered creation of the American Republic (a foundation which proved the undoing of both France and Britain…)

 

To Make Money, Government Can Just Grab It From The Filthy Rich:

Famously, confronted to the invasion of Francia by the Arab, Syrian, Berber, and generally hysterically Muslim armies, and navies, in 721 CE, the Merovingian government of Prime Minister (and effective head of state) Charles Martel, just nationalized the Catholic Church, selling its precious metals, and stones.

That was a stroke of genius, as it defeated both Christianism and (what the Franks viewed as) its Islamist sect. (OK, it took a full generation of total war.)

That method is more available, the more plutocrats there are.

Osborne (out hero of the day, the conservative plutophile who heads things financial in the UK), spoke yesterday of introducing a “Google Tax” of 25%. Says the Guardian: “Responding to outrage about the minimal contributions big corporations make to European governments, the Treasury is targeting Silicon Valley companies such as Google, Amazon and Apple, but the measures will reach beyond technology to high street chains such as Starbucks.

“We will make sure that big multinational businesses pay their fair share,” assured Osborne. That will not be easy: one is talking here about what some view as the richest criminal enterprises in the world.

Facebook made something like 100 million dollars of profit in Britain, and paid not even five thousand dollars of tax. The Guardian: “Google paid just £20m tax in the UK last year. But its actual British revenues were £5.6bn. The group as a whole has a profit margin of 20%, suggesting the company’s real profits in the UK could have been as high as £1.2bn. Taxed at the proposed 25% rate, this would deliver £280m a year in revenues for the Treasury from just one company.”

Having plenty enough of money to accomplish important work, is pretty much how the West went through the 30 glorious years of strong economic expansion after World War Two.

In practice, though, debt can be reduced by taxing the wealthy. Why to borrow from the rich, when one can tax them? Well it all depends if one lives in plutocracy (borrow), or in democracy (tax).

Under general-president Eisenhower, the wealthiest were made to contribute (Ike used his 93% upper margin tax rate; it was of course the same in Europe).

That’s how to live within the better means we could create for ourselves.

This means, first, defanging what, and those who, have too much power, be it thermonuclear, political, economic, or even ideological.

Democracy is not just a way of life, but the way to survival… Just what the cruelest, and fiercest instincts do not want.

Patrice Ayme’

Bad Germany? Or Bad Advice From Pluto?

December 4, 2014

Germany decided to go greener than green. Weirdly, that meant increasing the production of the most polluting fossil fuel, lignite. Apparently scared by the tsunami in Japan, it also involved closing down nuclear power. Nuclear power makes zero emissions of greenhouse gases, and it’s nearly as cheap as wind power.

Thus, instead of a fast tsunami increasing sea level by fifteen meters in minutes, Germany has opted for a slow tsunami increasing sea level by seventy meters over, well, a much longer time.

OK, nuclear power has drawbacks: ever since civil nuclear power was used in the USA, nobody ever got killed or injured from it, there. (Whereas coal kills at least hundreds a month… some of it probably from radioactivity, but never mind…) So nuclear power is dreadfully boring. Hence the need to freak out about it.

Going green by going lignite, is a parable for all too many, slightly demented German policies.

All of the Eurozone is on the verge of recession, Germany has grown two percent, total, in six years. Main cause? Not enough money to make the economy turn properly. Also a despondent inner German economy. Hence the need to sell German luxury cars all over the world. OK, machine tools, too.

I used to disdain Paul Krugman’s opinions on Europe, as he was too unaware of the fundamentals, be they historical, political, or economic. However the situation has changed: he had much to learn, and he learned much. Also change did my opinion of German policy, as Merkel got ever more obstinate. In any case, I agree with all of Krugman’s well researched article, Being Bad European. Let me quote from it:

“Unemployment in the euro area is stalled at almost twice the U.S. level, while inflation is far below both the official target and outright deflation has become a looming risk.

Investors have taken notice: European interest rates have plunged, with German long-term bonds yielding just 0.7 percent. That’s the kind of yield we used to associate with Japanese deflation, and markets are indeed signaling that they expect Europe to experience its own lost decade.”

Paul has the courage to go in full PI mode. PI? Politically Incorrect, or Profoundly Investigative:

“Why is Europe in such dire straits? The conventional wisdom among European policy makers is that we’re looking at the price of irresponsibility: Some governments have failed to behave with the prudence a shared currency requires, choosing instead to pander to misguided voters and cling to failed economic doctrines. And if you ask me (and a number of other economists who have looked hard at the issue), this analysis is essentially right, except for one thing: They’ve got the identity of the bad actors wrong.

For the bad behavior at the core of Europe’s slow-motion disaster isn’t coming from Greece, or Italy, or France. It’s coming from Germany.”

Germany has a dreadful history to use its own population as cannon fodder for its plutocrats (see the 1914 German invasion and attack), and currency has a spoiler for reason (see the 1923 inflation, engineered by Schacht, an agent of JP Morgan, and later an instigator and puppet master of Hitler; don’t worry, Dr. Schacht came out of WWII, and a little Nuremberg Trial, just fine).

Here is Krugman again:

“If you try to identify countries whose policies were way out of line before the crisis and have hurt Europe since the crisis, and that refuse to learn from experience, everything points to Germany as the worst actor.

Consider, in particular, the comparison between Germany and France.

France gets a lot of bad press, with much talk in particular about its supposed loss in competitiveness. Such talk greatly exaggerates the reality; you’d never know from most media reports that France runs only a small trade deficit. Still, to the extent that there is an issue here, where does it come from? Has French competitiveness been eroded by excessive growth in costs and prices? 

No, not at all.”

One thing that was out of line with Germany, is that it mistreated its working class:

“Since the euro came into existence in 1999, France’s G.D.P. deflator (the average price of French-produced goods and services) has risen 1.7 percent per year, while its unit labor costs have risen 1.9 percent annually. Both numbers are right in line with the European Central Bank’s target of slightly under 2 percent inflation, and similar to what has happened in the United States. Germany, on the other hand, is way out of line, with price and labor-cost growth of 1 and 0.5 percent, respectively.”

Dis-information about France is great in the USA, because plutocratic propaganda knows France is the number one danger country, the place out of which the most dreadful anti-plutocratic, atheist policies emanate. But Krugman has now understood this, so he pounces some more:

“In other words, to the extent that there’s anything like a competitiveness problem in Europe, it’s overwhelmingly caused by Germany’s beggar-thy-neighbor policies, which are in effect exporting deflation to its neighbors.

But what about debt? Isn’t non-German Europe paying the price for past fiscal irresponsibility? Actually, that’s a story about Greece and nobody else. And it’s especially wrong in the case of France, which isn’t facing a fiscal crisis at all; France can currently borrow long-term at a record low interest rate of less than 1 percent, only slightly above the German rate.”

What Germany did was cutting salaries as low as one Euro per hour (completely illegal in France, where the minimum wage was at least ten times that; in 2014 Germany introduced a minimum wage comparable to France’s.)

And Krugman to conclude:

“What we’re seeing, then, is the immensely destructive power of bad ideas. It’s not entirely Germany’s fault — Germany is a big player in Europe, but it’s only able to impose deflationary policies because so much of the European elite has bought into the same false narrative. And you have to wonder what will cause reality to break in.”

It’s true that “German” policies have actually been plutocratic policies: France, Italy and Spain, together, form an economic behemoth much larger than Germany, so they could easily force “Germany” to do whatever they decided. They did not, because they are all serving Mammon.

German policy at this point is irresponsible. It is demonstrated with the numbers Paul rolls out. But there are others. Germany, weirdly, has resisted French efforts at a Banking Union (it agreed only to phase in slowly a reduced version).

The Banking Union would be similar to the FDIC in the USA: banks would be forced to pitch in what would be a mutual insurance fund. With some rules attached.

However Germany is scared that thousands of its banks are under water, so it has refused the oversight of Banking Union. This tends to show that Germany cares more about what Europe brings to it, rather than it can bring to Europe.

When Greece was in full corruption crisis, a small city in Greece was the greatest purchaser of Porsche in the world. This kind of details was viewed as good for German business, but it actually means that the Germans cooperated with the very corruption they later denounced.

So why is Germany behaving this way?

Tough German reforms were instituted by Schroeder, a “Socialist” who turned out basically into an employee of Putin. The West has known many of these pseudo-socialists, who are actually greedy agents of Plutocracy Supreme. (The latest case is the preceding “Socialist” PM of Portugal, who made millions under the table; he was just arrested.)

Schroeder squeezed German workers as much as possible. That depressed German demand, making Germany more dependent upon exportations. But it made the wealthiest, wealthier.

Same old same old: plutocrats reign.

Some will say: ”Oh, but then you agree with the Brits?” Not at all: London has arguably displaced New York as the world’s dirtiest plutocratic center. London is rich, for the worst reasons, to a great extent (not to a full extent: there are actually some good policies in England, if one searches carefully for them).

So what London does cannot be duplicated elsewhere: its unicity makes it wealthy, mostly by attracting plutocrats from all over, insuring they escape the taxman and the lawman, and any sort of decency.

Ultimately, although Krugman praises France, he did not say that France, herself probably the mightiest country in Europe, all around, could very well break out of the plutocratic mold.

What the government of the French Republic has to do is simple: just look at the European Commission in the eye, and say: ”We plan to run a 4.5% deficit for the next two years. Submit.”

Guess what?

In a break with the plutocratic tradition, this is finally just what France did. The preceding European Commissioner of Finance and Economy, a man completely sold to Pluto, bleated his approval. He was then replaced by a Frenchman, ex-finance minister Moscovici.

This whole situation is about a system of thought. It’s time to change it. Understandably, Germany does not trust its revolutionary instincts. That leaves us, once again, with France to lead the way.

Although it’s hard to imagine Hollande leading anything, his Prime Minister is more of a man. Thus, probably, the change.

Patrice Ayme’

Krugman Rising From The Deep

October 31, 2014

Nowadays, I rarely bother to criticize, let alone advise, Obama (OK, I did it on Syria).

The One has become insignificant, it does not matter what he thinks, supposing he thinks at all. (Chuck Hagel, the Defense Secretary just called the policy of the USA in Syria strategically compromised, long term, as it profits the other enemy of civilization, Assad. Hagel is right. Attacking ISIL without taking out Assad is unbalanced. I am sure another Christain, or Druze strongman can be found.)

Soon the entire Congress will be Republican, and the Obama groupies will wonder what happened. Well, they have only themselves, and their reveling, to blame.

What happened is that, while Obama adulators were celebrating, when Obama became president he got surrounded by a thick cloud of plutocrats and their servants. Thus all Obama’s policies were all plutocratic, including (most of) Obamacare.

Unfortunately, the so called “Democrats” were not brainy enough to realize this. They believed that their beige hero would save them all. And, besides, superman like, find a solution to everything.

And, even if “Democrats” had brains, they had neither theory, nor a plan on how to handle the world.

The same problem has arisen with Clinton, Bill, earlier, and with the dimwits of the Socialist Party in power (supposedly) in France: no progress whatsoever.

I can’t reproach right wingers such as Cameron, or Merkel to be right wing. Even Abe in Japan does what he said he would do.

But the left, in Europe and the rest of the West has long been derelict.

Why? How? Lack of correct ideas. They did not think it through.

The best Krugman could suggest, for years, was more money for kleptocratic banks (“QE”), or devaluation (as Abe is doing in Japan). Fortunately, at last, Krugman is changing. As he is the most followed political economist in the world, it matters. Polls in Europe showed that the (Ex(?)-Europhobic Krugman) is the most trusted voice… On the left!

Then, of course, it all makes sense: if Krugman, the most trusted voice on the left, was actually on the right, or nowhere in particular, then no wonder the left was a right, and civilization got off the rails.

Krugman is realizing, slowly, that the debate has been framed by the plutocracy, especially about the lack of investments.

So now Krugman realizes that he and his kind (ex-Fed chief Bernanke) owe apologies to Japan. Says he:

TOKYO — For almost two decades, Japan has been held up as a cautionary tale, an object lesson on how not to run an advanced economy. After all, the island nation is the rising superpower that stumbled. One day, it seemed, it was on the road to high-tech domination of the world economy; the next it was suffering from seemingly endless stagnation and deflation. And Western economists were scathing in their criticisms of Japanese policy.

I was one of those critics; Ben Bernanke, who went on to become chairman of the Federal Reserve, was another. And these days, I often find myself thinking that we ought to apologize.”

Well, indeed, you should: to keep its economy up, the Japanese government engaged in a gigantic effort (its debt is now 240% of GDP… Slightly more than the 90% of Britain or France).

And Krugman to diagnose: “… the West has, in fact, fallen into a slump similar to Japan’s — but worse. And that wasn’t supposed to happen. In the 1990s, we assumed that if the United States or Western Europe found themselves facing anything like Japan’s problems, we would respond much more effectively than the Japanese had. But we didn’t, even though we had Japan’s experience to guide us. On the contrary, Western policies since 2008 have been so inadequate if not actively counterproductive that Japan’s failings seem minor in comparison. And Western workers have experienced a level of suffering that Japan has managed to avoid.”

If it were only workers! Grandmothers and everybody not a banker or hedge fund managers also suffered from Quantitative Easing (which brought savings’ interest down to zero).

So what happened? Krugman again:

”What policy failures am I talking about? Start with government spending. Everyone knows that in the early 1990s Japan tried to boost its economy with a surge in public investment; it’s less well-known that public investment fell rapidly after 1996 even as the government raised taxes, undermining progress toward recovery. This was a big mistake, but it pales by comparison with Europe’s hugely destructive austerity policies, or the collapse in infrastructure spending in the United States after 2010. Japanese fiscal policy didn’t do enough to help growth; Western fiscal policy actively destroyed growth.”

And Krugman to evoke the austerity mistake even in Sweden, and to conclude:

“I’ll be writing more soon about what’s happening in Japan now, and the new lessons the West should be learning. For now, here’s what you should know: Japan used to be a cautionary tale, but the rest of us have messed up so badly that it almost looks like a role model instead.”

I added the following in a comment:

The case of Japan is special: it has collapsing demographics, not compensated, as it is in many Western countries, by a vigorous immigration. Japan also has no indigenous energy to speak of (even its nuclear waste recycling long depended upon France).

It was long obvious to yours truly, that the conditions we are in are worse than in 1930s. The Great Depression of the 1930s happened mostly accidentally; it was a succession of obvious mistakes: a boom, followed by a crash, made worse by a tariffs war, leading to industrial shrinkage, and a liquidation of banks.

Nowadays, it’s different: the planet is crashing, a more serious problem. This could be stopped, but for that the general mindset would have to be different. However, said mindset is constructed by an ever more powerful plutocracy, a few hundred individuals who order the world around.

In particular, the plutocratic mindset has seized the financial sector and the government. The former does not need the public to make money: the financial sector has tricks such as Quantitative Easing up its sleeve, boosted by the continual authorization for banks to cooperate with, or engage in financial piracy.

The latter, the government, refuses to engage in massive public investment, from top notch free public schools, to massive infrastructure to massive public healthcare (if you brandish Obamacare, contemplate its deductibles). Simply because, as a proximal reason, if government goons hold that line, cushy jobs are for them to take when they come out of government.

The way it connects with the financial pirates is simple: money creation is a zero sum game, when pushed to the max. If more money went to the real economy, it would be as much not going to the financial pirates.

Krugman, and his eminent colleagues have not understood this yet, that all the money created for financial thugs, is as much not going for vaccine research, schools, bridges, healthcare, etc. Hopefully, they will, some day. Before that day, do not expect progressive polices to bear fruit, or, even, to exist.

The media, everywhere, is little better than FOX News: it’s a giant propaganda machine which has interest to make the rich richer, and the poor, stupider.

Plutocracy is the metastatic cancer which has invaded, paralyzed all the minds. Before a stunted economy, and decaying society, we are confronted to decomposed minds. And mostly on the left. The right, at least, the plutocratic right, knows how to take care of its own.

Patrice Ayme’