Posts Tagged ‘Central Bank’

Fewer Nail Salons, More Global Heating Mitigation? Federal Reserve Bank Will Target Higher Inflation… At Last!

August 27, 2020

This is a historic day, the day when the central bank recognized there are bigger issues than inflation. There always have been. Rome didn’t go down from inflation, but from the unemployment and un-empowerment which preceded inflation by centuries. Roman inflation in the Third Century was a big problem, but it originated from much bigger and deeper problems, and first the lack of democracy and the mass unemployment and mass un-empowerment of the Roman plebs.

Emperor Diocletian was able to fix inflation where it really hurt state and society with a command economy, and that worked well: Roman provinces were doing great economically… until they got invaded. Archeology has revealed this to be the case all over, from Italia, to Gallia, to Africa, and even to Syria, which got invaded two centuries later than the former three.

So Rip out and throw away all the economic textbooks of the last fifty years: they were wrong.

The revamp towards higher inflation and a more active economy (as requested by US President Trump!) is designed to address the “reality of a quite difficult macroeconomic context of low interest rates, low inflation, relatively low productivity, slow growth and those kinds of things,” said Fed Chairman Jerome Powell during a conference broadcast online. “We’ve really got to work to find every scrap of leverage in helping stabilize the economy.

I have asked heavens to target much higher inflation, for decades. In the so-called “glorious thirties”, which ended in the mid 1970s, the economy, the technology, the quality housing were all growing fast… propelled by inflation well above 2%.

How much above 2% is not clear because the ways of measuring inflation vary, and have changed from introducing “hedonistic” factors. However, the following graph is telling enough:

Enough inflation, enough real GDP growth (here the ten year treasury is used as a proxy of inflation, and it’s much better than the all too tweaked and humanized, even hedonized CPI)

Also inflation has been very strong in some areas (say health care, medical drugs; quality education), or then tweaked, twisted and tortured (measuring real estate cost from rents instead of face value, etc.)

One of my main reason to favor higher inflation is that, well done, it accelerates the speed of money and the speed of technology, while weeding out obsolete habits.

***

Catastrophic Climate Change, CCC, is upon us, so forest fire mitigation has to become primordial:

Larry Minikes informed me that: “In July, [California Governor] Newsom announced the delivery of $285M worth of dozen Huey Hawk (Blackhawk) helicopters to replace our aged Vietnam-era Bell helicopters. I believe they were ordered in February. The new Hawks can each carry a fire crew plus 1000 gallons of water and are certified for night flying, which the Bell are not. However, as I am reading, pilots are not yet fully certified so they could not be used at this time”.

I did not know about the new helicopters, and Newssom’s initiative. Especially flying at night is good. They better rush, because the maximal fire season is not yet here. Systematic racism against domineering brush would be most welcome, by burning it during the cold, wet months. Some of this brush was/is ridiculous: one has to tunnel through it. It does not have to be done everywhere. That could employ a number of qualified professionals, same technique as counterfires. 

Doing preventive burning in patches would be enough, more effective for large fire prevention, and best to preserve plant and animal diversity. This was done in places like Yosemite already starting long ago, after huge fires, and it was done with reasonable success. Goats should be unleashed: there are enough mountain lions to keep the numbers down should they escape. Bovines are not ideal, but way better than nothing.

The 747-400 supertanker can drop 74 tons of water (20,000 gallons)… What is clear, as we both agree, is that much more, and more innovatively, needs to be done, right away. This should become part of a more general economic reorientation as part of an adaptation to the massive climate catastrophe around the corner. Burning the forests is how much of the change will happen, and will accelerate it, so we need to learn to slow it down as much as possible… And learn to acquire the mentality to divert enough economic activity to do this. 

Less nail salons, more prescribed burning. The responsibility in California is higher: redwoods disappeared from Europe, but they are the highest carbon storage form of life per surface. They also release huge quantities of oxygen, which may come handy if more seas die, with all their plankton… They are one of the answers to global heating: also they are fire and heat resistant.

So we have to change the world economy. And accelerate it. So, inflation, welcome!

In practice it means more loans to engage in more progress. Focusing in quality ecologically correct housing, should be a must, and priority.

Patrice Ayme

Summers Of Discontent

August 6, 2013

Abstract: Agreed, some people are low lives, and focusing on them distract from more worthies issues. Paraphrasing, Paul Krugman himself said that he regretted to have to worry about idiots so much, but somebody had to do it. All the more as those low lives have been leading civilization, into devastation, to the point they may terminate it.

Lawrence Summers had positions at the apex of the governance of the USA and the world, for more than 30 years; he is a plutocratic mastermind.

Obama: Summers To Save World Once Again.

Obama: Summers To Save World Once Again.

No conspiracy in the USA, just a central committee (Goldman Sachs-Citigroup-Clinton’s minder, plutocrat Robert Rubin on the left, plutocrat Lawrence Summers on the right of the clown in the middle, the head of the US Central Bank).

Meanwhile crucial economic activity of governmental type, such as science, is cut all over (because of”sequestration”, another smart idea proposed to Congress by another of Obama’s very bank connected wealthy advisers: who needs neoconservatives when one has Obama advisers, the children of Summers?)

Don’t worry: Summers’ feisty creatures, such as Sherryl Sandberg, Facebook’s spymaster, and other friends, including the U2’s propagandist Bono, are making more billions than ever. Their wealth, certainly, is not sequestrated.

Larry Summers was, as Clinton Treasury Secretary, the point man allowing unregulated financial derivatives, thus making the real economy derivative ever since. Just on that point, from the progressive point of view, he should be disqualified to be in Obama’s cabinet. But Obama is not about progress, he is about the man he admires so much, he said, Ronald Reagan.

***

FASCISM PROVED EXCELLENT TO (MOST OF) ITS COLLABORATORS:

The taking over of the world by the same group of people, families and friends is very old: Senator Baucus’ family has reigned over his state for five generations (Baucus selected some insurance industry VP write Obamacare).

Plutocracy’s blossoming is older than the BIS (Bank of International Settlements), The BIS was created by Washington in the early 1920s, to safeguard (under Reichsbank’s head H. Schacht’s supervision) the transfer of formidable assets of the Nazi Party, and associated plutocrats, throughout the world, before, during, and after World War Two.

(The BIS is the central banks of central banks; however, due to its blatant Nazi connections, its elimination was evoked for a few seconds after WWII… before it got stealthily reconducted)

In the end, Germany prosecuted only 13,000 Nazis. However, the Nazi Party reached, by 1945, 8 million members. Considering all those who died, and Nazis in other countries (like international SS, of which there were hundreds of thousands), this means that 99.9% of Nazis were NOT prosecuted.

Many Nazis became rich from spoiling and then killing other people, in particular, Jews.

Many of the most prominent Nazis or their enablers became shining stars of the world after the war (examples: Marshall Von Manstein, hyper industrialist heir Thyssen, the most powerful German corporation, SS Major Von Braun and his close friends the extermination camps managers, Schacht, the Dulles, Prescott Bush, Harrimans, etc.; nota bene: the Federal Republic Deutschland just launched a campaign to catch remaining Nazi executioners!)

The case of the global corporations (mostly USA based) was telling: although many were the crucial enablers of Hitler, they were not punished. The French Republic tried to arrest IBM directors, in 1945, but secret services of the USA ex-filtrated three of them out of the Republic’s reach. Hitler had given IBM a monopoly for organizing the Reich.

(This was enough of an answer to the question: ‘why is it that there is so much propaganda against France in the USA, and why is it that some French have a problem with USA plutocracy?’)

So many Nazis, and most of their topmost collaborators, thrived after WWII. This fact helped to install the following mood: if the Nazis, their greatest friends, collaborators and enablers could get away with what they did, why not us?

The madness blatant in the Ayn Rand (guru to Greenspan and other neofascists) boiled down to a rage against any regulation, in other words, against any law. But for the law of the jungle. This is not different from the main mode of operation of the Nazis.

***

LET’S TAKE THE WORLD OVER, MORE THAN EVER:

Summers, Sandberg, World Bank 1991. The Worst Rule The World, Because They're Worse.

Summers, Sandberg, World Bank 1991. The Worst Rule The World, Because They’re Worse.

Who elected this people to give them control of the world? Well, their owners. Sherryl Sandberg is Summers’ kind of woman: greed unlimited. Let’s bank on the world, spy on the world, and make taxpayers pay for it.

http://video.pbs.org/video/1302794657/

More than a decade later, Summers blocked Christina Romer’s pleas for more stimulus in Obama’s administration. Blocking the spirit of empathy, fairness, or just the rule of law, seems Summers’ call in life. He had a horrible fight to oppose Brooksley Born, chairperson of the Commodity Futures Trading Commission (CFTC), an agency supposed to combat fraud.

Greenspan, Rubin and Summers told Ms. Born that fraud in financial derivatives should not be something one inquires about. Neither of these three graces is a lawyer. Ms. Born was a very experienced lawyer, since her star days in Stanford, and as a partner in a prestigious law firm, she spent decades practicing high level finance.

In other words, Greenspan, Rubin and Summers were meta-criminals, people who believe some crimes are self-correcting. A meta-criminal believes that some crimes are not crimes.

In the “Committee To save The World”, made of Rubin, Greenspan and Summers, Summers was the “enforcer”. Enforcer of the Law of the Jungle.

Summers screamed to Born on the phone that she was going to cause another depression, and that he had “13 bankers in his office” telling him that. In the end Born’s opponents called an “emergency working group”, and a propaganda campaign was organized against her until Congress demolished the CFTC.

Summers’ sycophants are typically Wall Street operators such a Steven Rattner in the New York Times (02 Aug. 13) going delirious about Summers’ extraordinary intelligence: the most brilliant, most analytical and most surgical brain of anyone I’ve ever encountered.”

***

WHERE IT IS SHOWN SUMMERS IS DUMB:

Summers hyper intelligent? Summers is simply no scientist, being only a vulgar economist (at best).

However Summers, not a scientist, insulted all women scientists by saying that women are not as capable as men. He said this as Harvard President, presiding over a vast assembly of professors who had come to listen to him, in his function as Harvard president.

Yet, several of the very greatest scientists of the 20th century were women. Example: the Curies (Marie and Irene), the towering mathematician Emmy Noether, the discoverer of jumping genes, Barbara MacClintock. Hence Mr. Summers is crass ignorant, arrogant, and not smart (to say the least). Besides being sexist to the point of imbecility.

All the female scientists I just mentioned are not just famous, but turned out to have been brazen geniuses: they introduced science so revolutionary, that it was viewed as completely wrong, sometimes for decades. That, in combination with their genders, made their careers very difficult.

What is a genius to Wall Street has, unsurprisingly, just the mind of a leech, for those endowed with common sense.

***

SUMMERS: FOR CO2, & ALL IMAGINABLE CORRUPTION:

Summers is a condensed parody of plutocracy. He started as a twenty something PhD in Reagan’s cabinet. This stellar career springs from hereditary plutocracy: two of Summers’ uncles were Nobel Prizes in economics.

By 1991, Summers was chief economist at the World Bank, escorted by Sandberg. This is what he said, in his official quality as the world’s guiding economist:“There are no… limits to the carrying capacity of the earth that are likely to bind any time in the foreseeable future. There isn’t a risk of an apocalypse due to global warming or anything else. The idea that we should put limits on growth because of some natural limit, is a profound error and one that, were it ever to prove influential, would have staggering social costs.”

More Summers as chief economist world bank: “the economic logic behind dumping a load of toxic waste in the lowest wage country is impeccable and we should face up to that…. I’ve always thought that under-populated countries in Africa are vastly underpolluted.” [This statement does not sound correct nowadays, even to the clueless, so Summers, smart as ever, now, claims it was meant to be a parody. Sure: Summers himself is a parody.]

But Summers’ position on CO2 was certainly serious. Lethally serious. He was the leading voice within the Clinton Administration arguing against the USA doing anything about greenhouse gases, and against US participation in the Kyoto Protocol (according to internal documents made public in 2009). This demolished Kyoto, as the European Union went at it alone, to staggering unilateral cost, causing the EU an important trade disadvantage.

Big Sister Sandberg: Already Your Boss In The 1990s

Big Sister Sandberg: Already Your Boss In The 1990s

Why to mention Sandberg all the time? Because she is typical of the corruptocracy around Summers. She was sent by the government (what else?) to the top of Google, obviously part of a Faustian bargain. Industrial spying for the government by Google and company started about that time (before 9/11).

Some of Summers’ creatures are expensive, and not just to the Constitution of the USA. Bob Rubin, that wise leech, cost taxpayers 100 billion dollars… So far. Not counting interest. 100 billions, personally, just for his little hobby (Citigroup).

Hence the importance, for the powers that be,  of putting Summers at the top of the central bank: Summers will make sure that his friends the top plutocrats are not left holding the bag. (Remember: he is the brightest croc alive, he will find something…)

Summers’ career is in orbit around the theme that greed is all the need we have. In 2000 Summers, Clinton’s Treasury Secretary,  teamed up with Greenspan and Enron CEO to claim California energy crisis was dues to “excessive regulation”. (They pushed the impudence to lecturing California’s republican governor Gray Davis!)

In truth Enron criminally organized shortages and made a fortune from Summers’ just authorized mood of doing whatever bets with derivatives. “(Conveniently Enro’s CEO Lay had a “heart attack” before sentencing; his conviction, just as conveniently, was then “vacated”.)

Summers pontificated that “…increased government involvement in the health care sector is a risky idea.” But apparently financial derivatives are not a risky idea. Is the rest of the world, with its nationalized health care risky? Yes! Obama wealthcare is safer for those who enjoy it!

On Pinochet loving, libertarian economist Milton Friedman’s death, Summers said that “…any honest Democrat will admit that we are now all Friedmanites.” if honest democrats believe this, one fears to imagine what dishonest ones such as Summers believe.

Summers pressured the Korean government to raise its interest rates and balance its budget in the midst of a recession, right in the middle of the South-East Asian crisis. During this crisis, Summers, along with Paul Wolfowitz, pushed for regime change in Indonesia (See the book The Chastening, by Paul Blustein).

By the way, this shows that neoconservatives are, truly, neofascists, and that the distinction between left and right is irrelevant (as it already was in the fascism of the 1930s: then, all the fascists, including Stalin, were allied with each other, either officially, or secretly, at one point or another!)

In truth fascists and plutocrats are after getting as much power on other men as they can, with whatever methods come in handy.

Hitler explained that the obsession with power, doing whatever to get more power, without ethics or mental coherence, was fascism’s main strength.

Hitler had to re-iterate this explanation after he made a spectacular alliance with the Polish colonels in January 1934, standing on its head the main axis of the Nazis’ implicit program (re-subjugating the nations Germany used to occupy, and had lost because of the Versailles Treaty).

Strength, of course is everything for those who affect to believe the Will to Power is (nearly) everything.

Summers set up a project through which the Harvard Institute for International Development advised the Russian government between 1992 and 1997. It emerged later that some of the Harvard advisers had invested in Russia, to profit from their own advice. Summers encouraged then-Russian leader Boris Yeltsin to use the same “three-‘ations'” of policy he advocated in the Clinton Administration– “privatization, stabilization, and liberalization.”

It got to the point that a USA Federal judge ruled that, by investing on their own accounts while advising the Russian government, Harvard professor Shleifer (and Moscow-based assistant Jonathan Hay) had conspired to defraud the US Agency for International Development (USAID), which had been paying their salary.

Harvard had to pay $26 million and Shleifer $2 million in fines. (Why is it that fat cats mostly pay fines and rarely go to the slammer?)

The Russian-born 45-year-old Shleifer is another superstar of the economics profession. Like Summers, he won the Clark Medal, the award of top economist under 40. Shleifer became the editor of Harvard’s Quarterly Journal of Economics at the age of 28, and became editor in 2006 of the American Economic Association’s Journal of Economic Perspectives. What we are facing is a galaxy of greed from second knives, below the old money and Wal Mart family class (worth around 100 billion dollars, same order as the Gates’ control  of 120 billion dollars).

Instead, Learn to Love Plutocracy.

Instead, Learn to Love Plutocracy.

The perspective, ladies and gentlemen, is something akin to what happened 1,000 years ago, when the richest plutocrats instituted the feudal order in Europe. Plutocracy is what happens when the Dark Side breeds with the mathematics of the exponential. It’s not about brains, or being right, or wrong. It’s about who you know, power, and breed.

1,000 years ago elective processes were replaced first by money, and then, heredity. The best intellectuals, inside the Church, objected in vain that the Church used elections to select the best, and that secular society ought to go on that way. But it was not about being the best, and selecting the best. It was about power that be.

That’s why Obama loves Summers. Not because Summers is lovely (even Obama cannot be that clueless!). But because Obama is scared.

Want fun? Greenspan finally came in front of congress in 2009 and recognized that there was a “flaw” in his perception of “reality” and his “ideology”. He looked ready to puke, complete with quivering lips and bulging eyes. Tough for an addict of the mad Ayn Rand to admit that the law is of some use.

More fun? Sandberg, Summers’ pet, who used to live (in some pictures at least) inside Summers’ arm pit at Harvard, after being installed at the apex of Clinton, Google and Facebook, and making billions, now gives lessons to women of the world to preach to them the exact opposite of what she did.

A word of wisdom from an expert? “…the grossly impudent lie always leaves traces behind it, even after it has been nailed down, a fact which is known to all expert liars in this world and to all who conspire together in the art of lying.”

[Adolf Hitler , Mein Kampf, vol. I, ch. X]

Want hope? The (mostly) Franco-American robot Curiosity, as large as a small truck, just had its first birthday. The scientific results are considerable; they demonstrate that there were streams on Mars, with chemical conditions suitable for life.

Curiously, Mars is anticipated to be so favorable to present Earth life, that the Mars missions are sterilized at huge cost (as much as half a billion dollars for a future life searching mission!). Some suggest to cease that policy. And I agree! One should view Mars as a colonization target, and we may as well send as much life there as possible, in the hope it will adapt (and then we can bioengineer the survivors to produce oxygen).

If it is not lost to treason, civilization will be saved by reason.

***

Patrice Ayme


Artificial Turf At French Bilingual School Berkeley

Artificial Turf At French Bilingual School Berkeley

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Artificial Turf At French Bilingual School Berkeley

Artificial Turf At French Bilingual School Berkeley

Patterns of Meaning

Exploring the patterns of meaning that shape our world

Sean Carroll

in truth, only atoms and the void

West Hunter

Omnes vulnerant, ultima necat

GrrrGraphics on WordPress

www.grrrgraphics.com

Skulls in the Stars

The intersection of physics, optics, history and pulp fiction

Footnotes to Plato

because all (Western) philosophy consists of a series of footnotes to Plato

Patrice Ayme's Thoughts

Striving For The Best Thinking Possible. Morality Needs Intelligence As Will Needs Mind. Intelligence Is Humanism.

Learning from Dogs

Dogs are animals of integrity. We have much to learn from them.

ianmillerblog

Smile! You’re at the best WordPress.com site ever

Defense Issues

Military and general security

RobertLovesPi.net

Polyhedra, tessellations, and more.

How to Be a Stoic

an evolving guide to practical Stoicism for the 21st century

Donna Swarthout

Writer, Editor, Berliner

coelsblog

Defending Scientism

EugenR Lowy עוגן רודן

Thoughts about Global Economy and Existence

Artificial Turf At French Bilingual School Berkeley

Artificial Turf At French Bilingual School Berkeley

Patterns of Meaning

Exploring the patterns of meaning that shape our world

Sean Carroll

in truth, only atoms and the void

West Hunter

Omnes vulnerant, ultima necat

GrrrGraphics on WordPress

www.grrrgraphics.com

Skulls in the Stars

The intersection of physics, optics, history and pulp fiction

Footnotes to Plato

because all (Western) philosophy consists of a series of footnotes to Plato

Patrice Ayme's Thoughts

Striving For The Best Thinking Possible. Morality Needs Intelligence As Will Needs Mind. Intelligence Is Humanism.

Learning from Dogs

Dogs are animals of integrity. We have much to learn from them.

ianmillerblog

Smile! You’re at the best WordPress.com site ever

Defense Issues

Military and general security

RobertLovesPi.net

Polyhedra, tessellations, and more.

How to Be a Stoic

an evolving guide to practical Stoicism for the 21st century

Donna Swarthout

Writer, Editor, Berliner

coelsblog

Defending Scientism

EugenR Lowy עוגן רודן

Thoughts about Global Economy and Existence