Posts Tagged ‘Crony capitalism’

Wealth Care’s Endless Summers

July 31, 2013

Abstract: Starting with Nixon, the Kennedy-Johnson welfare state became the wealthcare state. The rise of systematic failures such as Lawrence Summers, was instrumental that way.

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Democrats point at Republicans all the time. In truth, they set-up the Wealth Care State just as enthusiastically. Ever since Nixon, all outwardly socially motivated programs grew that monstrosity. (With the exception of G.W. Bush’s senior drug program! Yes, W. the torture man!)

Nixon publicly funded the HMOs, to make a Kaiser richer. Now Obama has extended plutocratic care. Ever since Nixon, plutocracy has made failure into rapture. It did not start this way, quite the opposite: engineering made the USA rich and powerful. Most renewable energy is hydraulic. It’s symbolized by this dam:

President Hoover's Dam. Engineering, Not Plutophilia

President Hoover’s Dam. Engineering, Not Plutophilia

President Hoover’s dam is an astoundingly high 222 meters (like a skyscraper). The reservoir holds 35 billion tons of water (yes, 35 cubic kilometers). The Hoover dam was launched by Sec. of Commerce Hoover in 1922, and construction ordered, early, by President Hoover, mid-1931.

Imagine Obama built something that big… Instead Obama’s idea of bigness is big money from the wealthy, food from their big tables, sleep in their big beds.

The latest thrust towards the Wealthcare state is a frenzy to make Larry Summers chief of the Central Bank.  The usual suspects push for it: the Rubin-Goldman Sachs-Citigroup gang.

Larry Summers, plutocrat, plutophile, enabler of deregulation under Reagan,  fought to repeal the last vestiges of Glass-Steagall, which separated traditional banking practices and investment (very risky) banking. Summers  deregulated complex derivatives of the world-gobbling type under Clinton in the late 1990s. Summers, grotesquely sexist to the point of imbecility, hyper connected with the worst, the great whale that swallowed the world economy, and regurgitated the neoplutocratic order.

Under Obama, Summers was made chief economic adviser, and gave the worst advice imaginable. Irreplaceable. He is now inciting Obama to see ghosts. Says the President (July 2013):

“let’s make sure that we’re growing the economy, but let’s also keep an eye on inflation, and if it starts heating up, if the markets start frothing up, let’s make sure that we’re not creating new bubbles.

Obama is worrying about inflation?  What else? Little green men? Inflation? Which inflation? Obama is keeping an eye on non-existent inflation? What for? No new bubbles? Really? Is not that rich, Mr. President, after your administration gave about 8 trillion, half of GDP, to the biggest, nastiest banks that ever existed? And all this so those nastiest banks and their bankers could pay the immensely greedy Lawrence Summers, Robert Rubin and their ilk? And fit the vision of the world they have, where financiers know best about everything? 8 trillion dollars to replenish criminals, that’s not a bubble?

After the tragedy of the 1930s, we are now enjoying a farce (before it turns again to tragedy!)

Hoover, an engineer from Stanford U., was no idiot, far from it; and he was experienced: the Hoover dam was his baby. But as President he became an idiot by not understanding the extent of the crisis, and providing an insufficient stimulus program, while allowing banks to de-fund the economy.  Not that Hoover did nothing: look at his colossal dam above. He just did not do enough.

Now here is Obama: one would expect that he heard of Hoover’s meekness. But all he knows is basket ball, not engineering. Obama does not have a Hoover dam to point at: Obama’s stimulus was mostly a fake. He kept his eye on the ball, indeed, from basket to golf.

Obama could have done something to mark the future, as Hoover did, with the Hoover dam. To this day, most of “renewable” energy is symbolized by the Hoover dam (hydro, worldwide, is on its way to pass gas in electricity generation).

What could have Obama done to mark the future with more than basket or golf balls? Get himself genuinely brainy advisers, not just greedy chickens, pecking away (Summers style). An obvious little project would have been Very High Speed trains, where they nearly exist, along the North East corridor or where they are guaranteed to be profitable, as in California.

Much more pharaonic and futuristic would have been for Obama to preside over a massive solar project in the South West USA.

The South West USA is the world’s best place for solar energy (due to solar energy guaranteed & proximity of enormous California, and its two giant metropolises, plus great safety). But Obama did not notice: all he has, is his “eyes on the ball”. The basket ball, historically, and now the golf ball. That’s the balls he knows. Not ball-bearings, not an engineer, just a player.

Yes, Obama gave a bit of money here and there (Mostly to Elon Musk, because he is a tall, good-looking rich South African). Stimulus-wise, Obama is a dwarf Hoover that built dams never higher than a few meters high.

Some will scoff I am unfair to Obama. But I have been too generous: Obama is Hoover in full reverse. Hoover used the power of the government to build a giant dam (so did FDR, only more so). Instead Obama used the power of the government to give money to plutocrats.

A non banking example? Elon Musk and space X, and the like: NASA money has been detoured to give to that clique, to the point NASA does not have enough money to develop the successor of Saturn V… (Finally decided 40 years after Nixon buried it!… except Musk stole the money…)

We have a Great Depression, but Obama has not noticed, because he only listens to Goldman Sachs (historically his greatest source of funds to get elected)! Indeed, Goldman Sachs’s owners are doing great. Obama breathes Goldman Sachs and its ilk. Such as Citigroup.

Goldman Sachs, Citigroup, etc. were all broke. What did Obama-Summers do? Each of the broken banks got about 60 billion from taxpayers, but Obama failed to acquire those properties taxpayers had paid for. So the plutocrats that controlled those institutions still do, and that’s why Rubin’s Citigroup and its immensely paid creatures (such as Lawrence Summers) are resurfacing from the abyss, stronger than ever. Well fed by clueless, pathetic taxpayers.

Why do we have a great Depression? Because presidents of USA such as Nixon, Ford, Reagan, Bush, Clinton, Bush, Obama thought small, supposing they thought at all. Nixon ordered the stupid Space Shuttle instead of improving enormously the fantastic Saturn V (as it was easy to do, and Von Braun wanted), and Nixon conceived the stupid HMOs crony capitalism (= plutocracy).

The corrupt (What else?) Summers is paid by Citigroup (founded by Goldman’s Robert Rubin, B. Clinton’s main minder.) According to the Wall Street Journal, Saturday July 27, 2013:  “Mr. Summers is getting millions from a number of other financial firms.

These include stock-exchange operator Nasdaq OMX Group Inc., hedge fund D.E. Shaw, venture-capital firm Andreessen Horowitz and asset-management and advisory firm Alliance Partners”

Making Summers central bank chief, reminds me irresistibly of the nomination of H. Schacht at the head of the German central Bank.

Schacht, a pawn of the American plutocrat JP Morgan, enabled Hitler. Was it under orders? Schacht was tried at Nuremberg, and rebounded nicely as a master world plutocrat afterwards (he was obviously protected; he was best silent, as he knew all about Hitler’s mighty financiers).

Quantitative Easing (QE) enthusiasts advocate the idiotic, but highly profitable to them, notion that the economy is all about money: just send enough money to the financiers, and they will make the world right for you (such is the main idea of QE).

Many “democratic” economists have advocated QE: send trillions to buy off the (unprosecuted) banking criminals. And thus most of what Obama did was to implement the notion of sending, according to the esteemed economist and lawyer William Black, and also according to the inspector of TARP, and evidence, trillions to the very banks that created the 2008 disaster. (This is not just my opinion anymore: even the Wall Street Journal agrees now, see below!)

(The banks used a bit of that money to “reimburse” TARP, enabling big reassuring titles in the Main Stream Propaganda: “Banks/Companies Reimburse Government Loans”).

Perfect for a world where the financiers in power decide who deserve money (namely themselves and their friends: why do you think Obama spent years calling Jamie Dimon, the daemon head of JP Morgan, “my friend”?)

Thus caring about the economy was straight WEALTH CARE: take care of the rich, they will do the rest. Reagan (“Ray Gun”?) got the ball rolling all over industry. Thanks to Goldman Sachs, Rubin, Summers, Clinton (in that order), it was extended to all financiers, drugged out on derivatives, in the 1990s.

Bush succeeded to out-Clinton by extending wealth care massively to defense contractors by engaging in carefully unwinnable wars: Iraq, Afghanistan, Pakistan, Yemen, all over.

Nixon has started HMOs by giving billions to private companies for Health Maintenance Organizing (HMO). The idea had been suggested to him in the Oval Office by the head of Kaiser Permanente, the industrialist Henry J. Kaiser. (Recent profits of Kaiser are of the order of 2 billions, and its revenue 50 billion; it’s the largest HMO in the USA).

Just as Obamacare flaunts the notion that stock exchanges and turning patients into shoppers will be the royal road to health care. Just send enough money to private insurance companies and health care plutocrats, such as Warren Buffet, Obama’s self interested adviser, and, little people, they will take care of you, thanks to the benevolent (and ‘invisible’!)hand of the market.

QE enthusiasts are propagandists for plutocracy. Just like many of the health care advocates are just poorly disguised wealth care fanatics who see more government subsidies coming their way.

Fine. This is what a plutocracy (aka “crony capitalism”) is all about. What’s not fine is when conscientious liberals fall for these schemes and howl in their favor for years. If one wants a society that cares, one builds a society that cares, and one does not simply throw money at the problem. That latter scheme is not new: Roman emperors practiced it for centuries, until the flood of money had corrupted the entire civilization.

Money even corrupted the most basic intelligence of the elite. When society is exclusively organized by money, there is no room for true intelligence. Even the Wall Street Journal, July 27, 2013, is finally understanding (five years after I got alarmed by Obama’s seduction by Summers!):

Mr. Summers is a master at “failing up.” Screw up at one job, get a better one. He’s now considered a front-runner to replace Federal Reserve Chairman Ben Bernanke in January.

Mr. Bernanke’s response to the financial crisis has been to digitally print trillions of dollars and give most of it to the biggest banks that caused the crisis. This seems to have averted another Great Depression, but at what cost? Eventually, the Fed must ease this money out of the system…

Meantime, President Obama launched yet another campaign to help the middle class. “With this endless parade of distractions and political posturing and phony scandals, Washington’s taken its eye off the ball,” he complained last week in Galesburg, Ill.

He blames Washington, even as he leads Washington. One reason why the middle class is still suffering is because Mr. Obama has a knack for putting the same people who ruined the economy in charge of fixing the economy.

Well, it’s not a knack, it’s a system. There is constant commuting between the Obama administration and the institutions that got the most money from said administration. The woman who wrote so called Obamacare, a high level (VP) health care insurance executive, went back where she came from, after she was done. Single payer, American style: one woman, singularly paid.

But let’s look at the bright side. The Wall Street Journal’s broadsides against Summers are hilarious, and gratifying; the critiques above I put in bold letters I advocated for 4 years at least. At the time, most would have described my ideas as rabid, irrational leftism. In truth, it was only the truth.

The traditional method to deal with bank-ruptcy of banks is to nationalize them: stakeholders get wiped out, management thrown out, the state brings in what’s needed to keep the bank going, and then sells it back to the private sector. This is fair: banks have a monopoly on money creation, granted by the state. Although privately managed, they are still agents of the state. This is efficient: it punishes malfeasance. And it costs taxpayers, thus, We The People, nothing: all the money is brought by the wealthy, twice.

Faced with the bankruptcy of thousands of a type of banks, the S&Ls, Reagan and Bush Senior followed scrupulously the nationalization method.

Yet the American subprime/European malinvestment crisis of 2008 was dealt in the opposite way: money was just grabbed from taxpayers, and given to the criminals, the banksters. Why? So they could do it again? Bush, Paulson a steroid laden football player who was made president of Goldman Sachs, before becoming Treasury Sec., Nancy Pelosi, a plutocrat daughter of somebody, head of Congress democrats, Obama, the basket ball man, and Lawrence Summers took all the decisions, and gave no explanation, except that they saved the world!

Verily, they saved nothing, except an established order that had blossomed in an orgasm of over-exploitation. What they did, was to Transfer Assets to Rich People (TARP), and impoverish everybody else.

So why Reagan and Bush Senior behave fairly, and the politicians of 2008 so dishonestly? Because the world political class of 2008 was much more corrupt than that of 1998.

How did it get there? Under Clinton, that is the reign of Goldman Sachs-Rubin-Summers, corruption got away from any critical examination. That allowed it to reach a crtitical mass. Summers had a screaming fit against the lady heading the Futures’ Commission, insisting, as he did, that financial derivatives ought not to be regulated (under Harvard president Summers’ supervision, that University lost a billion dollars in derivatives trades, meaning students’ money was transferred to plutocrats).

The same lady, Sheila Bair, was unpopular in the Obama administration, just as the highly qualified Fed Vice President, Janet Yellen.

What’s the problem with those women? They are more careful that the men, being more emphatic. Somebody such as Summers believe that greed is the noblest engine of humanity, and government should serve greed. The welfare state is their enemy, the wealth care state, their solution. They have understood nothing to humanity. And even less to how Earth works.

Lawrence Summers helped ruin Russia (by giving Yeltsin terrible advice) and turned it away from democracy, and back to the KGB. Lawrence Summers made the economy of the West “derivative”. Worse than him, there is not. Thus, Summers is intensely attractive to those whose wealth depends upon ruining the rest of mankind.

Summers? Irresistible to the Obama administrators: that’s where the money is. Citigroup will reward them. Amen.

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Patrice Ayme