Archive for the ‘Plutocratic sycophants’ Category

Brexit Idiocy In One Picture

July 11, 2016

Hard core Brexit idiots pontificate that they will renew their ties with the British Commonwealth and the USA. As if the quaint British monarchy imported from the Netherlands had anything in common with the hyper violent, domineering American republic, a country of immigrants, a world country, the world’s hyper power, which can purchase anything… but a soul, and a past it is ready to admit it had. The proud British are, relatively speaking, Europeans, and they don’t even know it.

Here is the European situation, the web of relationships, with the spider in the center, depicted with the most basic mathematics, set theory. I present to you the spider and the fly:

The Situation Is Even More Complicated Than That: Switzerland, For Example, Has More Than 600 "Bilateral" Treaties With The European Union, And Has To Respect Free Circulation Of European Citizens.

The Situation Is Even More Complicated Than That: Switzerland, For Example, Has More Than 600 “Bilateral” Treaties With The European Union, And Has To Respect Free Circulation Of European Citizens.

[Nota Bene: the GDP numbers above, due to the tremendous immigration of people and capital into the United Kingdom, the UK, due to the laxity of France and Germany, brought an extreme overvaluation of the British Pound, and a swelling of all things British. This house of cards is collapsing: British GDP has now shrunk below French GDP, in barely more than two weeks…]

Switzerland voted against the Free Circulation Of European Citizens, including Croatians, in winter 2014. Some sanctions were applied by the EU on an aghast Switzerland, the next day. However, Switzerland still has to accept everybody. Should it change that requirement, Italy, France and Germany would block the borders, and let Switzerland die. Really, not kidding: Switzerland has only one refinery, producing 25% of Swiss fossil fuels, and it gets all its raw petroleum through a pipeline, from Marseilles, France… Thus, Switzerland will have to vote again. Or learn to ride horses again.

Why is such ferocity welcome in enforcing European unity and free circulation? Simple: Enforcing cogent, fully informed reason upon, and by, We The People, is the best way to avoid war. Thus war tends to happen when unexpected.

Europeans have bent over backwards frantically for twenty years to accommodate increasingly crazed, selfish, grotesque, hypernationalist British demands.  The British thanked the rest of Europe by an insulting vote. (Remark: the Swiss referendum was just about refusing the diktat of free circulation of any EU citizen; it was NOT about rejecting the 666 treaties with Europe… Although of course, it could have this consequence… Nor, a fortiori, the European Union )

Right now Europe is suffering from three mentalities:

  1. The first problematic mentality was English sabotage. The English entered the “ever closer Union” and decided it was just a free trade “club”. Basically NAFTA. That was a lie, a breach of trust, and a betrayal. No wonder so many European leaders are keen to get Brexit done. For twenty years, English governments have prevented the built-up, in-depth of European laws and institutions. Instead of electing the head of the European Administration (“Commission”)  directly, by the People’s vote, one still uses the ancient system of nomination by the heads of governments. That sort of undemocratic blockage was the work of English Europhobes, mostly.

Fanatic Brexiters insist they never voted for a European “Superstate”. That is not just a total lie, but it means they want Europeans, and their ex-colonies and present allies, to be ruled by Superstates (USA, Russia, India, China).

2. The second problematic mentality is the fact that the European defense system is mostly operated by the French Republic, which is supposed to pay for it, while leaving its deficit below 3%. Logically, French tanks should first roll through Brussels, Luxembourg, Belgium, Lichtenstein, while addressing an ultimatum to Eurozone member Ireland, and force all these miscreants to pay taxes. (Since Germany has the same problem as its sister republic, France, it would rather applaud the usage of force… which is exactly what both of them did, with the help of Italy, to pressure Switzerland that way… It helped that the latter was not a founding member of the EU, and a rather small fish.)

What about the refugee crisis? Well, go back 17 centuries: the Goths, fleeing the Huns, invaded the Roman empire. Initially, the Goths came as refugees, and were allowed in. Later, even more Goths, now fully armed, came in, and thew Roman Empire said no. The solution? Have an army strong enough to kill the Huns. This was finally done in France, 80 years alter. First the inhabitants of Orleans inflicted a defeat on the Huns, inside the city itself. Then the Franks shadowed and harassed the retreating giant host of the Huns. That gave enough time for the Roman Field army headed by Aetius and to the Visigothic army to join the fray. Then the Huns got crushed in the titanic battle of the Catalaunian Plain. Having suffered tens of thousands of dead, if not hundreds of thousands (the number 300,000 has been advanced by sources), the spirit of the Huns was broken. Just as that of the Nazis in May 1945.

That was how to handle Assad: destroy him and his family, occupy Syria, re-establish secular, republican order. And it was not to the Russians or the Americans to do that, but to the Europeans. But there is no European army, no European will. Just European wealth for the world to steal. And for this, the ectoplasmic Britons are much to blame.: did they not learn anything from the Kaiser and his spiritual son Hitler?

As a result of formidable austerity imposed on France, the French defense system is woefully insufficient, although not quite as moribund as the British one. This is a grave situation in several ways: first it weakens the West enormously. Secondly it makes the USA more dominant than ever in defense. And thus, it augments the aura and diplomatic might of the USA in all matters, including the economic one… which pays for defense.

3. The third problematic mentality is indeed austerity itself. It was imposed by a coalition of conservatives and the evil influence of the ruling plutocracy. Great Britain saw less of it, thanks to the plutocratically owned tabloids, and the fact that plutocracy has made the wealthiest in Britain so much wealthier. Austerity is no less than a complete plutocratic plot, and a direct consequence of not taxing the wealthiest enough to spare us being in their debt.

So deep has the propaganda been for the plutocrats whom have made us in their debt, that only now the German SPD seems to realize that austerity is a plot of the wealthy. The “S” in SPD is for “Social”: Sozialdemokratische Partei Deutschlands, SPD… The SPD is in coalition with the German Conservatives, who are white-hot, foaming at the mouth demanding ever more austerity (especially from other Europeans… It’s understandable as Germany is in a virtuous circle presently…)

Brexit can potentially break that logjam. First, British sabotage of the “Ever Closer Union” will stop. Appropriate superstate structures could now be erected, as needed… Secondly, the austerity party in the EU, right now led by Britain and Germany, is going to be halved. Thus one can hope that the French, these austerity specialists since 1932, will snap out of their madness, and lead a revolt against the austerity party. Simple: the European Union has just do what the USA has done under Obama. The Federal deficits amounts to something around 100% of US GDP (if one adds Quantitative Easing, an unusual addition, not usually made for obvious, vicious reasons, to the official deficits).

Will Europeans understand this?

Meanwhile, it’s fun to see the Brexiters struggle with the spider web above. Good luck coming out, to sink in the ocean…

Patrice Ayme’

 

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Doomed Dems

May 4, 2016

So Donald Trump will be the Republican committee (;-)) for the presidency. And Trump will, probably, be elected US president. Why? Because people want change, and they did not get it. Instead they got more of the drift down, after the reign of the teleprompter reading president. Average family income is DOWN $4,000 since (“Bill”) Clinton’s last year as president. According to a FOX News poll, 64% of Americans blame Wall Street. Meanwhile in a vast report in the New York Times, Obama celebrates, in May 2016, the alliance he said he made with Wall Street in 2008.

Obama Can Make All The Excuses He Wants: He Gave Money To TBTF Banks, Not To We The People. And Here Is The Result Of This Wall Street President.

Obama Can Make All The Excuses He Wants: He Gave Money To TBTF Banks, Not To We The People. And Here Is The Result Of This Wall Street President.

Corporate profits have been rising, and wages have been declining. The following graph is from the FRED (Federal Reserve Economic Data). Since the mid 1970s, wages have gone down 7% while corporate profits went up 7%. The average board member of an S&P 500 company works 250 hours, and gets $250,000 (more than $800 an hour).

Wages Are Going Down, Because Pluto Profits Are Going Up. And Other Pluto Policies

Wages Are Going Down, Because Pluto Profits Are Going Up. And Other Pluto Policies

[Profits and Wages are as function of GDP above. Wages in red, corporate profits in blue. Notice the huge jump of corporate profits after Obama became president, and while he and the demonic Dems had total control of the US Congress, and the US Senate. Obama and his Dems can accuse the Republicans all they want, they are accusing reality. The reality is that they, and not the Republicans, did it.]

Warren Buffet is a hero, for many Americans. He bought Heinz (using money from Brazil’s 3G Capital: did you hear about corruption in Brazil?), and fired 600 workers. Then Buffet merged Heinz with Kraft, and another 2,500 workers got the axe. Buffet made ten billion dollars out of these two operations, 3,000 workers lost their livelihood. However, trust him, Buffet will give it all back, after he is dead (so he clamors to all MSM propaganda outfits, which religiously repeat that, as if it were the word of god).

But back to our other hero, the one who feels unappreciated. President Bush called Candidate Obama, and told him to come inside the White House, to take his orders from Secretary of the Treasury Paulson. Obama, feeling honored, obeyed, and did just like Paulson (ex-CEO of Goldman Sachs, and a possibly brain damaged professional football player) told him to do.

Now Obama feels underappreciated, although he should be appreciated, he insists, because he exhibited such great “bipartisan”.

But that is precisely the point: Americans are starting to appreciate less Wall Street and its servants. Americans are getting tired of “bipartisanship”: half professional politician, half Wall Street. Soon average Americans will even see that multigenerational Harvard families are the problem. It feels to them increasingly like a conspiracy is going on, just like Trump says, again and again:”the system is wrong, I know, I was part of it”. And you know what? It is.

“I know a lot of Americans are angry about the economy, and for good cause,” Hillary Clinton said, February 11, 2016. “Americans haven’t had a raise in 15 years.”

So why not Trump? After all, the great leaders of the Democratic Party are often incomprehensibly wealthy (with fortunes in the hundreds of millions of dollars: the Clintons, Pelosis, Feinsteins, Bowles, etc.). And their financiers, those who tend to finance them and are explicit supporters, are among the planet’s richest people. Most of them are more or less involved in government for their business (for example, here is the latest: NASA is now giving help, for free, for Elon Musk’s Space X to go to Mars: it will be interesting to see if Trump pursues these policies of tapping public institutions for making particular plutocrats and their corporations ever wealthier).

Trump got rich from inheritance, and then building things. The plutocrats connected to, or inside, the Democratic Party seem to be rather into other sorts of deals: Feinstein’s husband set-up deals in China (wait until Trump gets on that blood trail!)

In other words, people who vote for the Democratic Party have been trumped. (Originally, in the 1500s, “trump” in English meant exactly what it means in French to this day: lied to.)

People already voted for change eight years ago (when they selected Obama over his conservative rivals). Unfortunately, all the change Obama brought was none at all. (Very recently Obama started to do little progressive things, like taxing the rich a bit more, or his clemency project: too little, too late.)

The big picture with Obama was conservative, not progressive. Obama pursued what Bush did: giving money to the biggest banks. I am not saying it should not have been done, but what was needed is what Hoover (yes, Hoover) and Roosevelt did in the 1930s: a massive stimulus program (instead Obama did a short, small stimulus program; the stimulus of the 1930s extended, overall, for more than 25 years, as it extended into WWII, and then into the “Cold War”.

Under president Hoover, masterpieces such as the Chrisler and Empire State Buildings, and the Hoover dam (across the Colorado, and still watering Las Vegas) went up, some of them in a matter of months. Roosevelt ordered the construction of an unbelievably massive armament program, the construction of 24 fleet carriers (Japan would start a world war with 10).

Obama, long an admirer of Reagan in economic matters, reduced the taxes on the hyper rich by 20% in his first mandate (then brought them back up, the rather trite story of the arsonist who douses the fire later, while posing as a great hero…) The idea was to stimulate the rich, so they stimulate you.

All what We The People Who Vote are going to feel increasingly like, is that Obama was Bush III, or Clinton III-IV. Indeed, where was the “Change We Can Believe?” Yes, none at all. It was all the way down further.

Meanwhile a friend of mine went to Yosemite ten days ago. She told me she could not believe the devastation of the forest. Most of it is fiery red. It is devastated by the Pine Bark Beetle. To kill the Beetle, one needs twenty days well below freezing. However, this hard freeze is now a memory. So the Beetle invades, and kills forest. Treating tree by tree is hopelessly expensive, and futile. Yes, the forests will burn soon, adding to CO2 in the atmosphere. And it is all the way like that to Alaska.

Fort McMurray, Alberta may not have seen the worst of a devastating wildfire.

Massive walls of flames prompted authorities to order the evacuation of all the city’s more than 80,000 residents last night. The blaze has been caused by un-naturally high temperatures. Such giant fires are our immediate future. Nobody said the Greenhouse crisis was going to be nice. More evacuations coming.

These are not normal times. Ever since the universe was seen expanding, and, like the all-seing eye, we have contemplated possibilities we never dreamed of, we have come to realize that the world was in our very large hands (even larger than Mr. Trump’s hands…). Obama had very small ambition. Just like the Clintons, he surrendered to Wall Street, preferring big bucks to come to the dreams of his father. Now Charles Koch, the notorious fossil fuel multibillionaire, and great influencer of US politics, is saying he may support Hillary Clinton (instead of Trump). All plutocrats sucking at the public teat, are scared stiff of Trump. As Trump himself observed, in his boldly introspective style: “They say, what is he doing? We can’t buy him!”.

At least, through all the smokes and mirrors (in which Obama admires himself), this has the merit of clarity. By choosing Hillary Clinton, the Dems will choose business as usual. But this is not business as usual. And, increasingly, through all the smoke and mirrors, people feel that way, all around the most advanced countries, from Siberia, to California.

Change means Trump or Bernie Sanders. Clinton will surely bring only doom, as she did, ever since she and her husband helped fellow traveler, and implicit mentor, president Ronald Reagan with Iran-Contra…

Patrice Ayme’

Economy: Moods Are Changing

May 2, 2016

“TROUBLE” WITH EUROPE? WHY NOT THE US?

New York Nobel economists viewed from Europe, or the US, as “liberal”, or “leftist” do not like Europe, nor do they understand that the USA’s superior economic performance is just something the Clinton crowd likes to crow about. When one looks inside, and compares, ain’t pretty. Joseph Stiglitz: The Euro is the Problem (April 14, 2016) https://youtu.be/30xfMtJZ6iY  http://bit.ly/24k2oC2  #video #lecture.

No, the Euro is not the problem. Actually, Europe just smashed growth forecasts. The problem is that Europe is managed by people from Goldman-Sachs, or who wish to be employed by Goldman-Sachs, or who have a high opinion of Goldman-Sachs, or by people who take advice from people affected by the preceding disease. (As usual, I use here “Goldman-Sachs” as a shorthand for the malevolent, parasitic “money changers”, as Roosevelt and the Bible called them, based mostly in New York and London, with state machinery at their beck and call).

European Productivity, Especially In Franco-German Euro Zone, Has Long Been Higher Than In the USA. So The Scorn Of US Economists Should Consider This Important Fact

European Productivity, Especially In Franco-German Euro Zone, Has Long Been Higher Than In the USA. So The Scorn Of US Economists Should Consider This Important Fact

Question to Stiglitz: Do you think any of the groundwork has been laid to reduce that inequality going forward?

Stiglitz: “We’re in a little bit of better place, but not a lot better. It’s obviously better to have 5 percent unemployment than 10 percent unemployment. And there’s been the beginning of a housing recovery that has helped restore some of the wealth of ordinary Americans. But the damage that has been done is very deep and has persistent effects. The labor force participation rate of people in their 40s, 50s, is still lower than it’s been in decades. People who lost their jobs in 2008, didn’t get jobs in 2009, ‘10, ‘11, maybe aren’t likely to get a job ever. If they do, it’s not going to be anywhere near as good as their old job. There are many people for whom they lost their job at 50 or 55 and are unlikely to ever work again. The scar is permanent.

Another aspect of what I would say is the imperfect recovery, is that the marginalized groups remain marginalized. And while they’ve benefitted, the levels of unemployment are still very very high.”

http://www.theatlantic.com/business/archive/2016/04/stiglitz-inequality/…

Entirely right, Mr. Stiglitz. So why do American economists give lessons to Europeans? The US economy is chugging along at 2% per annum, rather less than Franco-Germania at this point. And it can be argued that the inflation of the US GDP is mostly asset inflation.

When Stiglitz obsesses about unemployment, it’s obviously neither here, nor there: Unemployment is not the end-all, be-all, of the wellbeing of a socioeconomy. Slaves, in all and any economy, tend to be fully employed.

In the San Francisco Bay Area, unemployment is only 3%. However, a one bedroom rents for $3,000 a month, and that’s more than half the median family income (pre-tax). So is that good, or is that hell? I want you to contemplate a twenty lanes freeway, all gridlocked, and the eight lanes overpasses above, too, if you approve, Stiglitz style. (Jam augment GDP!)

Meanwhile, Trump is going parabolic in California, because tolerating the intolerable has become intolerable. Only when tolerating the intolerable becomes intolerable do revolutions happen. Maybe Trump should pick up Sanders as running mate, ha ha ha.

Revolutions are the engine of evolution. They re-unite Homo with the natural ethology from which plutocracy had torn him from. To evolve again, for the better.

Another editorial from Krugman along the same half-wit lines as Stiglitz: “The Diabetic Economy”. Krugman: “LISBON — Things are terrible here in Portugal, but not quite as terrible as they were a couple of years ago. The same thing can be said about the European economy as a whole. That is, I guess, the good news.

The bad news is that eight years after what was supposed to be a temporary financial crisis, economic weakness just goes on and on, with no end in sight. And that’s something that should worry everyone, in Europe and beyond.

First, the positives: the euro area — the group of 19 countries that have adopted a common currency — posted decent growth in the first quarter. In fact, for once it was better than growth in the U.S.

Europe’s economy is, finally, slightly bigger than it was before the financial crisis, and unemployment has come down from more than 12 percent in 2013 to a bit over 10 percent.

But it’s telling that this is what passes for good news. We complain, rightly, about the slow pace of U.S. recovery — but our economy is already 10 percent bigger than it was pre-crisis, while our unemployment rate is back under 5 percent.

And there is, as I said, no end in sight to Europe’s chronic underperformance. Look at what financial markets are saying.”

Children such as Stiglitz and Krugman have great oracles, called “markets”, and they “look” at what they “say”. (Beats saying what they look like, any day!)

Krugman: “Responding to critics of easy money who denounce low rates as “artificial” — because economies shouldn’t need to keep rates this low — [A Fed Reserve Bank governor] suggested that we compare low interest rates to the insulin injections that diabetics must take.

Such injections aren’t part of a normal lifestyle, and may have bad side effects, but they’re necessary to manage the symptoms of a chronic disease.

In the case of Europe, the chronic disease is persistent weakness in spending, which gives the continent’s economy a persistent deflationary bias even when, like now, it’s having a relatively good few months. The insulin of cheap money helps fight that weakness, even if it doesn’t provide a cure.

But while monetary injections have helped to contain Europe’s woes — one shudders to think of how badly things might have gone without the leadership of Mario Draghi [ex-Partner Goldman-Sachs, Patrice Ayme nota bene], president of the European Central Bank — they haven’t produced anything that looks like a cure. In particular, despite the bank’s efforts, underlying inflation in Europe seems stuck far below the official target of 2 percent.

Meanwhile, unemployment in much of Europe, very much including my current location, is still at levels that are inflicting huge human, social and political damage.

It’s notable that in Spain, which these days is being touted as a success story, youth unemployment is still an incredible 45 percent…”

For once, Krugman gets it half right. Right for Germany, but not for France, which has discarded the Euro 3% deficit spending limit, and is going at an official, near-British like 4.5% (official):

“The thing is, it’s not hard to see what Europe should be doing to help cure its chronic disease. The case for more public spending, especially in Germany — but also in France, which is in much better fiscal shape than its own leaders seem to realize — is overwhelming.

There are large unmet needs for infrastructure and investors are essentially begging governments to take their money. Did I mention that the real 10-year interest rate, the rate on bonds that are protected from inflation, is minus 0.8 percent?

And there’s good reason to believe that spending more in Europe’s core would have big benefits for peripheral nations, too.

But doing the right thing seems to be politically out of the question. Far from showing any willingness to change course, German politicians are sniping constantly at the central bank, the only major European institution that seems to have a clue about what is going on.

Put it this way: Visiting Europe can make an American feel good about his own country.”

Why is Krugman feeling so good? Because the US is “producing” three times more GreenHouse Gases (GHG) as the French? Not a non-sequitur, or just a slap in the face: the US expansion, in the last six years as largely been driven by fracking for oil and gas.

***

Patrice’s Grain of Salt: MOODS THEY ARE CHANGING:

The “trouble” in Europe is not just economic. A new philosophy, a new mood, is taking over. Monetary spending, what GDP looks at, is increasingly looked at as a sin. In France, exchange and repair Internet sites are booming. People increasingly repair the devices they use, and recycle and, or, exchange them for others.

Another point, well-known, is that, to re-establish the economy, banks were given money, lots of money. But the bank driven economy comes short. If anything, banks are viewed as organized crime institutions. In other words, people have had enough of the way the economy is organized.

Who needs a car, when public transportation, or the occasional rental will solve the problem? Some car companies sell electric cars, yet, when people need to go on a family trip, they can get a fossil fuel driven machine, which goes much further. The end result is to lower demand. This is also the effect of increasing efficiency. Solar cells on a roof kill a lot of the old economy, the more efficient they get.

The economy serves the society, not vice versa. Moods have to change to incorporate more of the society. A recent example: two professors working at UC BErkeley (one of them French), invented a revolutionary method to cut DNA into desired pieces. They applied for a US Patent. The US PTO sat on it: indeed, what could two women invent? Six moths laterr, a macho team of males from MIT applied for the same patent, for the same invention. Ah, males, thus pillars of society, said Conventional Wisdom. The MIT gentlemen (or is that horsemen charging, Genghis Khan style?) were immediately granted the Patent.

A lot of the economy organized according to the old mood is just organized thievery, or crime. Giving twenty trillion of dollars to the very same banks and connected financial types who organized the 2008 crisis is organized mismanagement of the economy to replenish the criminals. It would have been more just to give the money to We The People directly, instead of giving it to our oppressors. Ah, but it could not be done, because conventional economics prevent it.

Conventional economy right now is little more that the instauration of a feudal order. Malia Obama, eldest daughter of president Obama, will enter Harvard University. There the peers of Stiglitz and Krugman will teach her of the rightful place of the haves, and why it is just that they own the world. And the fault of the have nots, that they do not.

Malia’s present school is “Sidwell Friends School“, a “very exclusive” (as it self-defines) school. Her sister attends it too. Tuition is a modest $40,000 a year. So the two girls, together, cost $80,000, just to enjoy the “very exclusive” position they earned in life. That’s a third higher than US family median income, pre-tax.

It cost significantly more to attend the school where great liberal economist Stiglitz preaches from (Columbia). American economists are right to trash Europe. After all, the European model is the enemy. Should it win, American economists would earn just a fraction of what they presently get.

Patrice Ayme’  

MIT Gangsters Rule

July 24, 2015

Goodbye, Chicago boys. Hello, M.I.T. gang.”

Who says this? No less than Paul Krugman (himself with a PhD from MIT), in a New York Times editorial “The MIT Gang“. I will get back to the murder-friendly attitude of Krugman, who not only extols the MIT influence as a good thing, but moreover glosses over the nefarious influence of American trained economists, “The Chicago Boys“, in destroying democracy. And not just democracy. The role of economic ideology from the American plutocratic universities was so nefarious that tens of thousands were outright assassinated, so that Chicago economics could be implemented. Bad economics is bad in all ways, including the most murderous ones. Not only Stalin, Mussolini, Hitler and the Khemr Rouge had murderous economics. Arguably, present day economics may be even more lethal.

MIT Economics Favors Plutocracy (=Pluto Power)

MIT Economics Favors Plutocracy (=Pluto Power)

After 2008, the MIT gangsters Krugman effrontly lauds, put trillions of dollars at the disposition of the very banksters who had caused the 2008 crash. Yes, those gentlemen gangsters have names. Those gangsters are so famously, they could be called gangstars. Those stars directed the world’s two most important central banks, or played the top roles, just below the ill-fated Dominique Strauss-Kahn at the IMF, or World Bank, etc. (Krugman sings their praise, and their names, in his “MIT Gang” essay).

The crash was actually the transfer of colossal amounts of money from the banks to a subset of plutocrats, ruining the banks. To refloat the banks, public money (see Greece) was called in, both from Treasuries and from Central Banks. The red graph above depicts that transfer as the scarlet exponential of shame. And no one, among those who control the world, condescend to observe it, let alone, explain it.

Although I was diplomatic enough not to even allude to these horrors, I sent the following comment to the New York Times. It was immediately censored:

The Chicago, and MIT economic departments rule. Who elected them, as our leaders? Who elected the Central Banks, and authorized them to buy at outrageous prices the property of private banks? That’s so-called “Quantitative Easing“… Thus enabling the bankers, banksters and gangsters who caused the crash of 2008 to keep on deciding who wins, and who loses, socioeconomically?

The private banks, extend credit to the richest of the rich.Thus they comfort, and buttress the plutocrats… Who then invite the president to gather money during parties in their mansions.

Why have so few people, so much power? Under which political theory? Which theory advocates that only a few people rule? Few: in Greek, Oligos. To rule: Arkhein. Oligos-Arkein: such a theory is called Oligarchy.

So the few rule. Question: why is a MIT gang better than a Chicago gang, a Wall Street gang, or a Sicilian gang?

Because we owe more respect to a MIT gang than to the Mafia? Why? Did we vote to have so much respect for MIT, we want them, MIT gangsters, to take all the decisions about the society in which we live? Our economic well-beings? Our employment? Our lives?

And when did we switch from democracy (Greek: Demos-Kratos, English: People-Power) to Oligarchy? Did we vote to surrender our powers to various gangs? I gather we did not. Thus, when, and how did this silent coup occur? What measures do we need to take, to return to democracy?

Patrice Ayme’

Note: Some commentators have complained that I am too tough on Krugman: he is a good guy, he is on the side of progress, he is on my side, I am biting a fellow creature. Indeed, Krugman is viewed as the standard bearer of social progress, and not at all the standard bearer of plutocratic universities. So let Krugman talk a little bit more in his own offense in the editorial at hand: : “If you don’t know what I’m talking about, the term “Chicago boys” was originally used to refer to Latin American economists, trained at the University of Chicago, who took radical free-market ideology back to their home countries. The influence of these economists was part of a broader phenomenon: The 1970s and 1980s were an era of ascendancy for laissez-faire economic ideas and the Chicago school, which promoted those ideas.

But that was a long time ago. Now a different school is in the ascendant, and deservedly so.”

Notice the pernicious context. What you have to know is that these “Latin American Economists trained at the University of Chicago, who took radical free-market ideology back to theior home countries.”

It sounds innocuous, but actually these “boys” set-up dictatorships in their countries, who killed tens of thousands of people in Argentina alone.

Similar “economic” performance was achieved in Chile, Brazil, and a dozen other Latin American states thus inspired. Nothing that Paul Krugman is allowed to remember while he wants to stay in good standing with plutocracy supreme.

Patrice Ayme’

 

Plutocracy’s Fascist, Europhobic Dream

July 20, 2015

Europe’s Impossible Dream” proclaims the New York Times’ Paul Krugman. What dream is that? The dream that Europe needs another currency, besides the dollar. All right American supremacists do not say this in so many words… Instead they use convoluted, illogical reasoning, as I will presently demonstrate.

Good propaganda starts with correct facts. Krugman:

“Greece is experiencing a slump worse than the Great Depression, and nothing happening now offers hope of recovery. Spain has been hailed as a success story, because its economy is finally growing — but it still has 22 percent unemployment. And there is an arc of stagnation across the continent’s top: Finland is experiencing a depression comparable to that in southern Europe, and Denmark and the Netherlands are also doing very badly.

How did things go so wrong? The answer is that this is what happens when self-indulgent politicians ignore arithmetic and the lessons of history. And no, I’m not talking about leftists in Greece or elsewhere; I’m talking about ultra-respectable men in Berlin, Paris, and Brussels, who have spent a quarter-century trying to run Europe on the basis of fantasy economics.”

Commodities Crashing Worldwide: Not A Euro Problem, Mr. Krugman!

Commodities Crashing Worldwide: Not A Euro Problem, Mr. Krugman!

Then Krugman operates his bait and switch:

“To someone who didn’t know much economics, or chose to ignore awkward questions establishing a unified European currency sounded like a great idea. It would make doing business across national borders easier, while serving as a powerful symbol of unity. Who could have foreseen the huge problems the euro would eventually cause?”

Several remarks here: first, for people like Krugman, apparently society and economics is reduced to “doing business”. In truth, having multiple currencies was a major hindrance, I have said this many times. Try a currency in New Jersey, one in New York, one in Connecticut, one in Massachusetts. It’s not just business which will be inconvenienced. Europe has as many states as the USA. Krugman can’t understand this: not smart enough, or with an agenda? You judge.

Commodity Deflation, In Dollars. Not A Euro Crisis, Mr. Krugman!

Commodity Deflation, In Dollars. Not A Euro Crisis, Mr. Krugman!

Good propaganda accuses the scapegoat with wild abandon. According to Nazis, everything was the fault of the Jews, and the French. According to Krugman the ills of the economic world can all be traced to the Euro. Bankers who feed him, are beyond any suspicion. The bait is to enounce correct facts, the switch is to accuse the innocent, in this case “Europe’s Impossible Dream” and the common currency, thus causing unfathomable distraction, away from the real culprits. Krugman:

“Who could have foreseen the huge problems the euro would eventually cause?

Actually, lots of people.”

Who are Krugman’s heroes? Eurosceptics, naturally. Krugman:

“The only big mistake of the euroskeptics [sic] was underestimating just how much damage the single currency would do.

The point is that it wasn’t at all hard to see, right from the beginning, that currency union without political union was a very dubious project. So why did Europe go ahead with it?”

The problem with someone as Krugman, is that he has no idea about European history, whatsoever, except the pro-Nazi propaganda of Lord Keynes. Krugman affects to think Europeans are idiots anxious to please plutocrats, and their obsequious servants:

“Mainly, I’d say, because the idea of the euro sounded so good. That is, it sounded forward-looking, European-minded, exactly the kind of thing that appeals to the kind of people who give speeches at Davos.”

***

Krugman, Or The Pseudo-Left: 

Who is Paul Krugman? Not only does he have a bully pulpit at the New York Times, and a Nobel, but he is, according to polls, the most trusted voice by the left… in Europe. Listening to him too uncritically can only lead to anti-Europeanism.

The domination of English is also the domination of the Financial Times, The Economist, The Wall Street Journal, and the ever more sneaky New York Times. The Anglosphere’s tendrils are definitively plutocratic in their outreach.

In his very anti-European article, Krugman says that the case for devaluing the Greece currency is overwhelming: I agree with this, the Euro ought to be devalued.

If Greece had its own currency, and devalued massively, it would not profit much economically: Greece’s main import-export activity is to buy petrol and then sells it refined: all these transactions are priced in dollars. Leaving the Euro would make Greece ready to become a satellite of the USA again (complete with colonels).

***

Why are we submitted to so much anti-Europeanism?

Because the plutocrats and their obnoxious servants have interest to say that the problem is the Euro, not banksters, and banksterism, the situation where bankers create money (as credit) and give it to they friends.

Then said friends run away with the money, banks turn around, and ask treasuries and central banks to allow them to make money again. (One way to do this is Quantitative Easing, something Krugman love as it feeds the banksters, who feed him.)

None of this giant financialo-economic drama has to do with the Euro. To imply that Denmark, the Netherlands and Finland have problems because of the Euro is inaccurate (to put it mildly). Switzerland is also pegged to the Euro, and does great, because of its diversified knowledge economy (where pharmaceuticals dominate).

Krugman is aware, but disingenuously denies, that loving the dollar is hating the euro:

“if you were an American expressing doubts you were invariably accused of ulterior motives — of being hostile to Europe, or wanting to preserve the dollar’s “exorbitant privilege.”

And the euro came. For a decade after its introduction a huge financial bubble masked its underlying problems. But now, as I said, all of the skeptics’ fears have been vindicated.”

***

Why the Euro?

Because France and Germany have had enough to fight each other. The two countries are roughly comparable in all ways, economically and financially. They are converging demographically. They used to be the same country for five centuries, a time during which a unified Germany, and a German language was created.

The re-creation of a unified Germany, after 1,000 years, without, led to near continuous war between France and Germany, for, fundamentally, philosophical reasons.

France won, both sides are now sister republics, ready for total reunification. Thus they need a common currency. Then the in-betweens (truly pieces of France which were torn away from France, to make France weaker) cannot survive without using that same currency. Then one has to add contiguous areas with the same socioeconomic level (Austria, Northern Italy, Catalogne; the latter two long part of French territory, especially if one defines France as more than just the so-called “kingdom of France“, which was often a very small, relevant territory  inasmuch as it was supposed to be the imperial seat). At this point one is well above 200 million people with the same currency, and a GDP only second to the USA.

This territory is the old Francia which founded Western Civilization. Western Civilization is not just Jerusalem, Athens plus Rome, as many have it. It’s also the Franks and the tolerant melting pot they imposed on the Germano-Gallo-Romans, with their home made, advanced, pseudo-Christian philosophy.

How can the rest of Europe be excluded?

The USA acquired its common currency during the Secession War. So far, the attempt to secede in Europe are rather meek. Let’s keep them this way.

Naturally, the USA’s patriots can only hate to have a second world reserve currency. The dollar as world currency was imposed on Keynes through the substitution of the crucial document for another one.

Paul Krugman never mentions the felony that gave rise, over Keynes’ obstinate resistance, to the dollar as world currency.

Europe is not an impossible dream. Should it become so, so will human civilization. Because Europe is a toy model of the global problem of nationalities.

More fundamentally, today’s civilization, all the way to China, Japan and Patagonia or South Africa, was invented mostly in Europe. Admitting it is impossible, is admitting a nice future is impossible.

Is all lost? Did American europhobic university professors win? Not sure. Hollande and Merkel are working on a Eurozone government, democratically anchored through a subset of the European Parliament. It’s high time. “Le nationalisme, c’est la guerre!” (nationalism is war) said French president Mitterrand in one of his last discourses. Ironically, Chancellor Kohl had proposed further political union when he signed on the Euro project, and Mitterrand, then hindered by a divided government, turned him down.

I am sure Frau Doktor Merkel remembers this, and will seize the opportunity.

Patrice Ayme’

Banksterocracy

July 4, 2015

The Champagne region was proclaimed a world heritage site by UNESCO today. Champagne, a method to make sparkling wine, was created by a cleric, Dom Perignon, four centuries ago.

Mr. Yannis Varoufakis, Greek finance minister: “Why did they force us to close the banks? To instil fear in people. And spreading fear is called terrorism.” Indeed. That is what I was saying before: arguably the demons of High Finance, the shills of the IMF, Goldman-Sachs, the ECB, etc, are the main force deep behind Islamist Terrorism, because they cause misery, while weakening enormously the military capabilities.

Added Varoufakis:”The EU will have no legal grounds to throw Greece out of the euro, and then the real negotiation will start with creditors.”

Unbelievably, the European Central Bank has put the entire Greek economy in a deep freeze, with a very low ceiling on the Emergency Loan Agreement (ELA). What for exactly? With which authority? Just because its (ex) Goldman-Sachs head, Draghi, is used to make a profession from dragging people in misery?

Bait & Switch, Or How The Public Was Made To Pay For Being Ruled By Banksters

Bait & Switch, Or How The Public Was Made To Pay For Being Ruled By Banksters

Look at these numbers above: how come France, Germany, Italy, etc. invested in Greece? Of course they did not. What they did is that they “lent” Greece money so that the Greek plutocrats then in command of Greece could refloat the French, German, etc. bank subsidiaries which had gone bankrupt lending to fellow plutocrats they had met earlier, taking champagne baths, all together. Now we are supposed to drain the bath, and serve them more champagne.

Meanwhile, Christine Lagarde, the Marie-Antoinette who proposed that, because gasoline was to expensive for them, the French ought to switch to biking, hangs tough about “Greece”. A buffoon shilling for plutocracy with a misleading French accent. Just look at her shifty eyes: she knows how dirty she is.

As Oxford economy professor Simon Wren-Lewis puts it, the IMF was “captured” by the banksters: “the Troika made a huge mistake in using their citizens’ money to lend to Greece so Greece could partially repay these private sector creditors – that is where most of the Troika’s rescue package went.”

(Yes, apparently, 92% went to banksters; but thanks to propaganda, most people believe We The People of Greece splurged, whereas, it is the banksters who splurged).

The first order of plutocracy, nowadays is banksterocracy: bankster-power. Let me quote extensively from Atrios, a USA citizen originally from Australia, with a PhD in economics. Atrios writes a wildly successful blog, taken seriously by major economists. Quoting others extensively, Atrios comes below to the conclusion I reached more than six years ago, about the nature of who rule us, and this is most pleasing:

“Saturday July 4, 2015: What’s It All About Then

Greece’s Euro “membership” isn’t about using the currency, it’s about having access to various loan facilities and support from the ECB, which it already doesn’t have.

Bloomberg reports that Bulgaria, which is not a Euro member but backs its currency with Euro reserves, has just been allowed to borrow from the ECB at the same rate as Euro members, thus enabling it to firewall its banks from Greek contagion. This is a privilege normally only accorded to Euro members – and it has been WITHDRAWN from Greece. If this is true, then Bulgaria (non-Euro member) can obtain Euros from the ECB while Greece (Euro member) cannot. It is hard to see what benefit Greece’s Euro membership confers, apart from redistribution of seigniorage receipts.

And finally someone gets the logical endpoint of central bank “independence.”

For the central bank of a currency union to deliberately restrict the money supply in regions within the currency union is bizarre. No other currency union central bank on earth does this. It would, for example, be unthinkable for the Bank of England to deny liquidity to Scotland’s banks. But the ECB has denied liquidity to Greece’s banks, not because they are insolvent (which is a reasonable reason to deny liquidity to banks) but because the sovereign won’t toe the fiscal line. It has taken on a political role that it should not have.

Of course, the ECB’s shareholders are the member state governments. But those governments have bound themselves by laws and treaties that prevent them interfering with or in any way controlling the ECB. So the Eurozone is in reality a financial dictatorship run by bankers. I struggle to see why anyone would voluntarily join it, let alone want to stay in it. But that’s democracy for you.

Whatever it is, it ain’t democracy. It’s banksterocracy. The concept of central bank independence was, once upon a time, thought to be necessary to prevent irresponsible governments from doing, or being perceived as doing, irresponsible things with the money supply. Now the point of central bank independence is to hand immense power to a bunch of unelected unaccountable people engaged in revolving door careers with the banking system. Let’s continue laughing at the silly Greeks and their silly corruption.  

The first irresponsible thing to do with the money supply is not to provide enough money to run the economy. This was a major problem during the Roman empire’s Fourth Century (due to a dearth of precious metals and not enough police powers to insure the value of the Fiat Currency). By 300 CE, the imperial government instated a massive command and control system to insure the core functions of the economy.

The problem we have now is different: so-called austerity is actually a refusal to finance important sectors of the economy, including not just basic decency, but also science and education. Meanwhile China has boosted its science budget to a nearly incomprehensible 192 billion dollars (more than all the West combined).

China is right. 100%. (Then the land of Confucius gets accused of “ethical breaches”, by professional bleaters, for pulling ahead on genomic research)

On the other hand, those who have starved, and are starving the European economy, from sheer lack of currency, are not just betraying their birthplace, but civilization itself.

Patrice Ayme’

 

Bank Worship

May 20, 2015

BANK WORSHIP IS ALL WHAT MIGHTY ECONOMISTS KNOW:

I have fiercely condemned, for a decade, the policy of reducing the economy to interest rates. As I have said, and will say again below, this is identical to making (private) bankers into gods. “Liberal” (meaning “left” in the USA) economists love to say that low interest rates is all the socialism we need. Nobel laureate Paul Krugman is trying to make fun of the serious arguments found in scholarly critique of his “interest rate idolatry”. Says Paul:

I’m With Stupid.

No doubt, dear Paul, no doubt. Being stupid is more profitable, quite often, than being smart and moral.

Banksters Steal The World, And Prosper, Ever More

Banksters Steal The World, And Prosper, Ever More

Via FT Alphaville, James Montier has an interesting piece castigating economists for their “interest rate idolatry”, their belief that central bank-set interest rates matter a lot for the economy…” Montier writes down notions I used to brandish at the beginning of the Obama presidency. I stopped after I realized everybody (Very Serious People, Academia, High Finance, Politicians, Media) was on the con. That meant, in practice that, if one talked about it too much one was viewed as mentally imbalanced (just as pointing out that the Qur’an prescribes terrorism may one looks as a racist, according to the Politically Correct insects). Here is part of Montier’s well-thought essay:

A wider idolatry: the greatest con ever perpetuated

Lest you think I am being unduly harsh on the world’s poor central bankers, let me turn to the wider idolatry of interest rates that seems to characterise the world in which we live. There seems to be a perception that central bankers are gods (or at the very least minor deities in some twisted economic pantheon). Coupled with this deification of central bankers is a faith that interest rates are a panacea.

Whatever the problem, interest rates can solve it. Inflation too high, simply raise interest rates. Economy too weak, then lower interest rates. A bubble bursts, then slash interest rates, etc., etc. John Kenneth Galbraith poetically described this belief as “…our most prestigious form of fraud, our most elegant escape from reality… The difficulty is that this highly plausible, wholly agreeable process exists only in well-established economic belief and not in real life.”

This obsession with interest rates as a cure-all rests on some dubious views about the way the world works.”

Montier points out that the fundamental official argument for lowering interest rates down to zero is flawed: …”firms generally rely on internal financing to fund investment, rather than borrowing – witness Exhibit 6. Over 100% of gross investment is financed by internal funds.”

The obsession with interest rates has meant, in practice, that so-called liberal, self-described “progressive”, friends of “We The People” economists, have prescribed, implicitly, to lower taxes on the hyper-rich as much as possible. So they masquerade as left-wing, but, in truth, they are plutophiles. This is an old method, and why Polar Bears are white, instead of brown or black as their ancestors were. Montier:

“Just in case you were wondering about the much-lauded ability of the central bank to create inflation via helicopter drops of cash (or its modern-day equivalent), this is actually a form of fiscal policy, not monetary policy. As I noted above, monetary policy alters the distribution of net worth while fiscal policy alters the levels of net worth. Because helicopter drops effectively give everyone a boost of cash, this is clearly a change in net worth and thus is likely to be helpful in stimulating demand.

As you may have gathered from the preceding paragraph, the good news is that there is an alternative to monetary policy, and that is fiscal policy. These days fiscal policy is deeply out of vogue amongst policymakers and politicians. However, it has a much more direct link to growth than any of the channels suggested for monetary policy – it is part of the construction of GDP, and has a clear impact upon incomes.”

Krugman made a very feeble defense, which mostly consisted, weirdly, but tellingly enough, to laud Lawrence Summers, one of the architect of the dismantlement of the financial regulations under Clinton, to create a class of hyper-rich financiers. To his credit, Krugman published my comment:

In the USA, houses are started massively all the times. It’s a mark of unsustainability (presumably flimsy housing is replaced). Reducing the entire economy to this, is imbalanced. Why not consider infrastructure starts? Research? Health?

The fundamental question is: what is an economic activity which is profitable for the society?

The conventional answer is that banks know best. As the banks’ lending goes up as interest rates go down, bringing the latter down, improves the economy, say banks’ friends.

Let’s call that BANK WORSHIP.

Bank worship has enabled big banks’ heads and associated high financiers they collaborate with, to be so powerful and dishonest, that they changed the hearts & minds of all the power that be in society.

The latest case is the French Societe Generale: the police chief in charge of an inquiry on an eight billion dollar fraud therein, now admits, years later, that she was manipulated by the bank (a lower level employee, Jerome Kerviel, was sued, chased down, and condemned severely, although he claims he acted under orders). The fraud was reimbursed by taxpayers. This means that Societe Generale bosses, just in this particular case, of this particular fraud, stole around 50 dollars to each French citizens. Don’t worry for them: the thieves live big. An even bigger picture is that, in the leading countries, big bankers are banksters, and they corrupted institutions of the Republic (including politics, government, justice and police) thoroughly.

The problem is the same in Anglo-America: time after time, giant frauds of the biggest banks are exposed, and they are condemned to fines. In the end, a bank-too-big-to-fail condemned to a fine means nothing: in the worst possible cases, it’s tax payers who pay. It is the case where the criminals’ punishment is to make the victims suffer.

The latest such case is the LIBOR “punishment”, proclaimed today. In it, big banks in London manipulated the world’s leading interest rate (they call that the “market”). You would think that, after stealing billions the heads of banks such as JP Morgan would go to jail. No. Taxpayers go to jail.

Zero Interest Rates, To Serve High Finance Plutocracy:

Another problem is that zero interest rates have proven devastating for small savers, while providing the banks and their accomplices with quasi-unlimited funds for playing with each other the derivatives’ market, something that is not a real economic activity, except by making the richest ever richer.

One lends to the rich. By making lending ever easier, government policy has made the rich ever richer.

Correct economic activity would consist in the government encouraging activities which are profitable to the people at large, very long term.

The “market” is driven with what bankers think is profitable, short term.

Conventional wisdom by the economists in power is that we can trust the bankers to encourage the economic activity most suitable to the “market”, hence society.

Governments were told by the economists in power to make the job of bankers easier, to make for a better economy, hence better society. Trust bankers, give them all the lending capability, hence all the power they want, and We The People will become richer.

Thus the general strategy of bank worship assumes a trait that is true: a banker is a government official. A banker is a non-elected, uncontrolled government official, with unlimited funds, and inexistent oversight by the People’s representatives.

Bankers control the market, which controls the economy, which control society. Is that the society we want? Do we want to be controlled, financed, by an oligarchy of non-elected little Big Brothers who decide what activities the society will engage in?

Bankers are little Big Brothers who are free to finance the high financial class they belong to, as much as they want. That’s why derivative trading is more than ten times larger than real trade, worldwide. This is also why half of the world’s money is in Dark Pools. And so on.

The cause of this nightmarish world is bank worship. Bank worship is very smart for the Big Bankers. Krugman is NOT with stupid, as he disingenuously claim. He is with the winning crowd. To go interact with people such as Paul Krugman and Joe Stiglitz, the fact is, one needs to be seriously independently wealthy (then one can become a “student”, meaning a future co-conspirator, or mingle at parties).

It is very stupid for the rest of us to have become adulators of bank worship. Bank worship made society subject to a dictatorial oligarchy operating in the shadows.

What happened to the Enlightenment? It seems to have sunk in “Dark Pools”.

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’

Plutocracy: I Lie, Therefore I Am

March 14, 2015

Submission To High Finance From Propaganda To Corruption, USA To EU:

IN EUROPE, OR ELSEWHERE. WHAT IS IT TO BE PROGRESSIVE, OR ON THE LEFT?

The debate about what is progress has been going since before Marx was a toddler. Actually, one can go back to Voltaire, and even all the way back to philosopher Abelard fighting Saint Bernard (Twelfth Century).

Abelard believed in debate (“Sic et Non”). Whereas Saint Bernard was all about having explained the world, all by himself, by following the herd, just as the average Christian gnu. Bernard, one of history’s greatest criminals, and thus, a “Saint, said, with revealing madness: ”I believe though I do not comprehend, and I hold by faith what I cannot grasp with the mind.”

Nowadays, many emulate Bernard, holding by faith that what they call the “free market” is the way to whatever they believe we are going to. In the “Free Market”, which is neither free, nor a market, banksters are free to enslave Peoples with as much interest as catches their fancy:

Unemployment Reached Nearly 30% in Greece, To Serve Better Banksters & Their Obsequious Servants

Unemployment Reached Nearly 30% in Greece, To Serve Better Banksters & Their Obsequious Servants

[Well above 50% of the total Greek debt is interest. The graph shall be produced another day! Greece has been ravaged by plutocracy, but is starting to resist.]

My answer is the simplest, to guide those who want a better, or just survivable world: You want progress, go with the truth. And truth is always from debate. That is what should guide the “left”, or whatever they want to call themselves.

Want some simple truths?

***

WHY CLIMATE CRIMINALS ARE RICH:

Vanuatu was just lashed by a grade 5, maximum force hurricane. Those used to be very rare. But heat is energy, so more heat, more energy.

A truth that is simple: California is experiencing the greatest drought in millennia. This is directly related, in my learned opinion, to the general accelerated upwelling observed along such coasts, at such latitudes, worldwide.

Thus the unfolding California disaster (expect striking restrictions within weeks), is part of a much more general catastrophe.

Ironically, California, as the epicenter of USA propaganda, is punished by its own instruments.

This ecological disaster wisdom is percolating down. “70% of the unfolding catastrophes experienced today are caused by the climate change.” Just said in Japan, Laurent Fabius, the extremely experienced French Foreign Minister (an ex-Prime Minister).

His USA homologue, John Kerry warned: “future generations will not and should not forgive those who ignore this moment, no matter their reasoning… It is time, my friends, for people to do real cost accounting,” Kerry said. “The bottom line is that we can’t only factor in the price of immediate energy needs. We have to include the long-term cost of carbon pollution. We have to factor in the cost of survival. And if we do, we will find that pursuing clean energy now is far more affordable than paying for the consequences of climate change later.”

Survival is the concept I have been using for years.

When the greenhouse crisis will strike in full, BILLIONS will die. It’s not just a question of acidic seas rising. One thing will lead to another. Giant wars will erupt as ecological systems collapse.

The attack on Crimea by Putin was fully part of it: Crimea controls half of the Black Sea potential oil fields (and exploration was set to start; now it has been blocked by Western law; companies such as Chevron are blocked; corrupt and backward Russia does not have the tech). Ukraine also has potential vast reserve of Shale Oil and Gas.

One should speak of climate derangement caused by the CO2 CRISIS…

***

PAY SCIENTISTS WELL, THEY WILL SAY AS PLUTO WANTS:

It turns out that some Climate Skeptics” were paid by the fossil fuel industries. All the way to the usual suspect, Harvard University. Cash for claims, that is the faith of academics who grew up in plutocratic universities (I have spent two decades in them, I should have seen many things; I did).

Says the New York Times: “For years, politicians wanting to block legislation on climate change have bolstered their arguments by pointing to the work of a handful of scientists who claim that greenhouse gases pose little risk to humanity.”

The New York Times then details the case of a Harvard-Heritage Foundation, Asian looking (that seems more serious), prostitute, who got at least 1.2 million dollars below the table to say absurdities about CO2.

“Historians and sociologists of science say that since the tobacco wars of the 1960s, corporations trying to block legislation that hurts their interests have employed a strategy of creating the appearance of scientific doubt, usually with the help of ostensibly independent researchers who accept industry funding.

Fossil-fuel interests have followed this approach for years, but the mechanics of their activities remained largely hidden.

[By the way, the recent revelation are coming, through Greenpeace, thanks to Freedom of Information Act, which acts only on government agencies, in this case the Smithsonian Institution; lying, private, plutocratic universities are not forced to reveal the corruption; and also: why did the Obama administration revealed it by itself?]

“The whole doubt-mongering strategy relies on creating the impression of scientific debate,” said Naomi Oreskes, a historian of science at Harvard University…”

The god debate in the USA is the mother of all plutocratically founded brain washing: thousands of extremely rich people in the USA work for god, and are paid by taxpayers.

Plutocrats love god, because god works for them.

As Jesus will save all Americans, Americans should just lay nailed to the cross, as plutocrats walk all over them, and just thank them for giving us a hard time, easing our way closer to you, my lord (of Wall Street).

***

SWEDISH CIA WHORES CHANGING SONGS:

So Sweden, who told us that it was “illegal” to go interview Julian Assange for hard-to-believe sex charges, is changing its mind. Now that plutocrats have spent already 20 million dollars keeping him caged because he looked at a Swedish CIA woman funny.

After 1,000 days of detention in the Ecuadoran embassy, Julian Assange will be interviewed by Swedish prosecutors inside the embassy (for having sex in a non-Swedish way).

British plutocracy has spent more than 10 million pounds watching Assange. Yes, more than 18 million dollars.

Money in the pursuit of plutocracy has no limits. This, from a government which introduced PAY TO PLAY, all over Britain, including education.

It is widely expected that, as Sweden is a stooge for the USA, Assange would be deported to the Guantanamo Archipelago, to see his human rights trampled into nothingness. Nothing personal, it’s all about terrorizing Americans.

Sweden’s Minister of Justice, Bodström

Two women admitted to consensual sexual relations with Assange, but then asked him, they said, to stop what they had agreed to, and that he did not. After this sort of interrupted coitus interruptus, one woman lauded Assange on the Internet, and to the next future victim, who proceed immediately to be equally victimized, upon apparent recommendation of the first.

It turned out that one of the accusers of Assange provided the CIA torture program called “rendition” with victims. So Sweden’s Minister of Justice, Bodström tortures, and that is OK. (That was obvious all along, as he tortured Assange for all to see.)

Assange’s biggest crime? Publishing a video showing Americans pilots gunning down journalists, and then those who tried to rescue them. The Pentagon immediately claimed that WikiLeaks was a “security threat”.

It obviously said something about the USA, namely that the behavior of police in Ferguson is something that the USA finds so natural (shoot first, check later) that it is anti-American to reveal it.

***

HAVE THE COURAGE TO CALL POLITICIANS CORRUPT CRIMINALS:

Matthew Yglesias repeated like a parrot what I have said for many years: small-country, and even medium-countries (Sarkozy, Brown, Blair, Monti, Schroeder), or large-countries (Clinton) politicians generally have personal incentives to go along with troika, or plutocratic demands even if they are against their nation’s interests:

“Normally you would think that a national prime minister’s best option is to try to do the stuff that’s likely to get him re-elected. No matter how bleak the outlook, this is your dominant strategy. But in the era of globalization and EU-ification, I think the leaders of small countries are actually in a somewhat different situation. If you leave office held in high esteem by the Davos set, there are any number of European Commission or IMF or whatnot gigs that you might be eligible for even if you’re absolutely despised by your fellow countrymen. Indeed, in some ways being absolutely despised would be a plus. The ultimate demonstration of solidarity to the “international community” would be to do what the international community wants even in the face of massive resistance from your domestic political constituency.”

But a genuine government of the left would be very different. And this is what we have got in Greece right now with Syriza. — not because its policy ideas are wild and crazy, which they aren’t, but because its officials are never going to be held in high esteem, and great gratitude by the Davos, private jet set. Alexis Tsipras is not going to be on bank boards of directors, president of the BIS, or, probably, an EU commissioner. Neither he, nor Finance Minister Varoufakis even like to wear ties, and they have announced they won’t wear any as long as the Greek debt crisis goes on.

Yglesias’ cogent remarks are nothing new, I have been writing about them for more than a decade. OK, Yglesias is part of the establishment of sorts, he has high visibility, he went the plutocratic university par excellence, Harvard, studying philosophy, so he is supposed to be taken seriously (Krugman refers to him continuously, while censoring my declarations saying the same for years).

All right, so that leaders of small countries betray their countries to foster their careers, is not new, indeed. Draghi, for example is a pure product of AMERICAN plutocracy (PhD MIT, jobs at prestigious American Think (Sink?) Tanks, Goldman Sachs, etc.). So how come this pure pluto made in USA is one of the leaders of Europe? Because European plutocracy is the poodle of American plutocracy.

Not that I do not like Draghi. He is better than his Prussian alternatives. That was just an example.

The situation with Luxembourg and Juncker has been even worse: we are talking about 200 billions of tax evasion a year, there.

When there is no economy but corruption, Pluto is its prophet.

We need a name for all this activity. We have it: corruption.

OK, let’s take a rest. Next I will explain why, as in Greece, Nationalism may help. Syriza governs with a right wing party. In Israel, the corrupt Netanyahu may lose power to a left wing opposition which proclaims its nationalism (“Zionism”).

But it will not end before the fat lady sings, and it’s in France that she playing Valkyrie. Fear, little Plutos, the pain you visited on the world!

Patrice Ayme’

ADDED VALUE IN THE XXI CENTURY

March 9, 2015

PRODUCING SUPERIOR THINKING TO IMPROVE NOT JUST WORLD SOCIO-ECONOMY, BUT SURVIVAL:

Capital Exponentiate, Decapitate Wealth To Feed Minds:

Piketty’s “Capital In the XXI Century” argues that the return on capital is greater that that on labor: r>g. All economists from the pseudo-left fell on their knees, astounded by the depth of that observation. They obviously never studied history, let alone archeology.

In truth, Piketty’s big deal inequality, that r>g has been known for 12,000 years, as I have emphasized in countless essays, for years. I have even explained the mathematical-psychological reasons why r>g. Piketty has smirked that he discovered r>g when he wrote the book. (A case of arrogant ignorance buttressed by colossal stupidity: that r>g ought to have been the first law of economics. That it took centuries for economists to discover this cannot possibly be a matter of stupidity, but of the will, on the part of economists of not understanding how the masters who fed them got their power from.)

So Piketty claims he just discovered that r>g: maybe economists are not idiots, but they play some on TV? (Some are bound to think that Piketty should be my ally, and thus I should be nicer to him; however, correct philosophy tends to be done by being only friendly to truth.)

Homo Thrived In This Cold Climate For 2 Million Years (Georgia, Tusheti NP.) Thanks To Science & Technology

Homo Thrived In This Cold Climate For 2 Million Years (Georgia, Tusheti NP.) Thanks To Science & Technology

It was so well known, that the return on capital was higher than that on income, r>g, that all reasonably sustained societies had colossal, decapitating taxes on wealth.

By law, hook, or crook. And when this was not the case, when wealth became hereditary in an exponential way, disasters happened. Generally invasion and destruction.

This happened to all the plutocratically corrupt Chinese empires when Genghis Khan’s Mongols came down.

The peaceful variant is revolutions such as 1789 (for twenty years the king had been meekly trying to make the aristocracy pay enough taxes).

When a great Native American, or great Viking chief died, much of their possessions (it could thousands of horses) would be redistributed.

Time to re-learn the wisdom of the ancients.

***

SUPERIORITY OF THE WEST?

Why did the West become so superior? Or China, for that matter?

Technology. Superior technology. Coming from superior thinking. Both the Greeks and the Chinese had colossal contempt for barbarians. (In both cases it went so far that the Greeks lost everything, and the Chinese came very close to annihilation).

Around the year 1000 CE, the Vietnamese (it seems) invented new cultivars of rice, which could produce an entire crop, twice a year. The population of East Asia exploded accordingly.

A bit earlier, the Franks had invented new cultivars of beans. The Frankish Tenth Century was full of beans. Beans are nutritious, with high protein.

Homo is scientific and technological. Thus, two million years ago, pelt covered (tech!) Homo Ergaster lived in Georgia’s Little Caucasus, a pretty cold place in winter. And the population was highly varied genetically (showing tech and travel already dominated).

***

A GREATER OBSESSION WITH FREEDOM MADE THE WEST SUPERIOR:

Here is the very latest. Flour was found in England, in archeological layers as old as 10,000 years before present. It was pure flour: there were no husks associated. The milling had been done, far away. How far? Well the cultivation of wheat spread to Western Europe millennia later. The flour had been traded, and brought over thousands of miles. Most certainly by boat. Celtic civilization, which would rise 5,000 years later, was expert at oceanic travel.

What’s the broad picture? Not just that prehistoric Englishmen loved their flat bread, no doubt a delicacy. Advanced technology has permeated Europe for much longer than is still understood now by most historians. Remember that the iceman who died in a glacier, 5,000 years ago, was not just tattooed, and had fetched in the lowlands a bow made of special wood. More telling: he carried antibiotics.

China and the West diverged, because the philosophies of the Franks and the East were different. The Franks had outlawed slavery four centuries before the great divergence started. This helped freedom, especially the freedom to think of new technology and science.  (Frank = Free.)

The more enslaved a population, the less inventive. It is not just a cultural-psychological phenomenon. It may be epigenetic. The Franks were more ethologically correct, and that enabled to unleash full human epigenetic.

(Being endowed with full human capability, is perhaps why G.W. Bush was incredibly brazen when he became president, going to invade Iraq, whereas Obama was subdued, and just worked, under Summers’ orders, to save the established plutocratic order, like a little boy, obsequious servant of the great white masters; OK, Obama did not descend from slaves, yet he was exposed to the black slave culture, throughout, and somewhat clueless about it.)

The Germans had been obsessed with freedom since ever, and, since in particular, their first contacts with the Romans. All that Germanic freedom led to population explosions, and invasions of Greco-Roman lands, which, for centuries, were systematically cut down by hyper-disciplined Roman armies.

All this was brought into one mold by Consul Clovis, who, as Roman Imperator, and himself son of Roman Imperator Childeric (also elected king of the Salian Franks), made the soldiers of his army understand that they would have to be extremely disciplined too, under the penalty of death (Roman style, a revolting notion for free Germans).

Militarily, the Franks by combining freedom and discipline, were an undefeatable force ever since (the Mongols knew this all too well, thus did not send their scouts west of Croatia; then allied themselves to the Franks to capture Baghdad and Damas).

Free peasants had no slaves, but they needed help: domesticated beasts and mechanical advantage were thus evolved by Frankish society. When Europeans made it to China, they were astounded that people did everything, without using machines or beasts.

So not too many children, but then communal living: Middle Ages villages in Europe were commune-ist regimes. Exploitation of property was divided according to how many could work.

The end result was strong philosophical pressure for ever more advanced technology. Although China was ahead in some tech, as soon as Europe heard of it, it captured it greedily. That philosophy permeated all of Western European society. Peter the Great, emperor of Russia knew this so well, he went to study incognito as a worker in Dutch naval shipyards.

***

AMERICAN ECONOMIC DISCOURSE: A TROJAN HORSE

Does the drive to advanced tech dominate now?

Not as much as it used to.

Why? American plutocracy. And the “Nobel Prizes” of a whole army of obsequious plutophile servants thereof.

Because the spirit of all-conquering technology has been displaced by Capital in the XXI Century. And more specifically its USA monopolistic operators (such as the insufferable Bill Gates, and cohorts of financial operators). Technology is, and will stay, of course, the main and ultimate capital of humanity. That’s how Homo colonized the Caucasus, two million years ago.

Piketty, in his book, brushes technology off. Absurdly, he believes that tech can provide only a 1% return. That’s thoroughly stupid: inventing full Quantum Computers, for example,  would have tremendous consequences, as any device could be made hyper intelligent.

Yet, this sort of attitude makes Piketty an object of admiration in USA Academia.

Why? Because USA Academia is plutocratic through and through. Piketty’s ideas do not threaten plutocracy. Quite the opposite: they will allow it to survive. Diminished, true, but alive. My ideas would destroy plutocracy. Let alone the fact that it would take a long time to implement Piketty’s scheme. My schemes, being multi-dimensional, could be implemented faster, and start to bite right away.

(I do agree with several of Piketty’s propositions, such as a world cadastrum, and progressive taxation on capital: I have advocated them for more than a decade!)

***

PLUS OULTRE:

However, a European solar plane just took off from Dubai. It will go around the world on solar power alone. The main force behind this project, the inventor and pilot, the engineer Picard (scion of ancestors just like him) asserts that the global adoption of such technologies would lower energy waste by half.

Europeans, following the Europeans who had migrated to North America, were the richest, most powerful, better nourished people in the world, for five centuries, because their economies produced more ADDED VALUE than any other economies (in particular, better guns).

To re-establish relative riches, Europeans need to focus on what produced that superiority in added value production. That means technological superiority, and this is fed by a more educated population. More educated scientifically, and thus philosophically.

Philosophy, done in a humanly ethologically correct way, is the metaphysics of science. It all fits together. Anything else is an amputation of the possible. Of the humanly possible.

China understands this very well. At least the science part. (Not too sure about the philosophical part; without it, China may well follow the path of fascist Germany. It’s going that way, with a military budget bigger than France, Britain and Japan combined: $145 billion.)

How to do this?

How to add so much value from mind that superiority is re-established?

Well establish the correct philosophy, put it in power, teach it, finance free maximum quality education, free at all ages.

Pay by taxes on wealth, and large incomes, fortunes, in such a way that there would be a practical cap on wealth, as the Roman Republic used to have, when it really worked.

Decapitating wealth is important for the youth: it will show youth that material wealth to excess is such a bad thing, it had to be made unlawful. It will replace mind at the apex of what youth ought to aspire to, and be programmed by.

***

KEEPING A CIVILIZATION GRADIENT WILL SAVE BILLIONS:

Billions of lives, that is.

The usual partisans of insignificance, nihilism and masochism will no doubt whine that Euro-American economic ascendency is a bad thing. They prefer to be haughty slaves than responsible masters.

European scientific superiority led to a reasonably stabled world order. (Except for some populations of the Americas who got exterminated, thus clearing the lands for Europeans.)

In a world where everybody has the same weapons, and ecology is collapsing (still not raining in California, fourth year in a row, in the greatest drought in several millennia), it is to be feared that disorder will express itself as it has in the past: the sort of massacres that make entire populations disappear. That is what Netanyahu is thinking of…

So defining properly Capital in The XXI Century is not just economically and socially important. It is morally important, in the apocalyptic sense of “moral”.

Superior mind is the ultimate capital. Obviously hardly a notion that comes naturally to economists. As what is called “economics” is mostly a fake science, and famous economists are mostly people who have learned to lie about that fact.

When Piketty claims he just discovered r>g, 10,000 years after most of our ancestors, he demonstrates that. More generally, the same critique can be directed at entire fields such as most of theoretical physics and even mathematics, as funding from plutocrats has become ubiquitous. By buying the hierarchy, the plutocrats bought the thinking. That’s what they wanted. Thinking to be directed incorrectly.

We have see this before: this is how Aristotle, or more exactly his sponsors, nearly destroyed civilization. The difference? The stakes are much higher now.

Can I be more specific in my critique, give a hint of what is wrong with Academia? Most thinkers in Academia are too specialized. Right, much science requires hyper-specialization. Say when one is studying Pluto’s atmosphere (the Solar planet not the god of planet finance). One needs hyper-specialized science. However, there is also the science, and the thinking, about big questions. In those fields, hyper-specialization, unguided by the broad picture, can lead to error: look at much of theoretical physics, much of philosophy, much of economics.

It is precisely because Thomas Piketty is obviously pretty ignorant of history, that he believes he just discovered r>g. After 10,000 human societies made the  notion central to their cultures. It is also why economists do not even know that, during most of humanity’s history, money creation was not farmed out to private individuals (the bankers). So they cannot even feel that there is anything wrong with the present money creation system.

Ignorance allows the devil to hide in the details.

Patrice Ayme’