Posts Tagged ‘GDP’

Ongoing German Lies Destroying Europe, & World: 2) Debt & Investment

August 25, 2019

In light of the Biarritz 2019 G7 Summit:

German lies have long reigned as European lies: one of the causes of Brexit. Nobody says it, so I will: the British could only feel good, because their central bank provided their economy with enough “liquidities”… Not the case in Europe, because the ECB, tied in by German (and secondarily) French plutocracies, barely provided enough money to keep hundreds of millions of Europeans alive. The British then, felt there was something right about the UK keeping its independance… and they were right.

For years, US presidents (in particular Obama and Trump) have asked the European Union to augment “consumer spending”, or “demand”. The US can’t ask loudly Europe to augment investment (except in military matters, where the USA have long asked for more EU spending) but they mean it More surprising, Europeans themselves are lackadaisical about investing… or anything else having to do with a better future….

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We Are, Because We Lie… says the herd, and it moos, all together now. What makes a better bound than a lie?

Plutocrats and the plutocracies they depend upon, lie. Otherwise, they would not stay in power: only with lies can a few rule the billions. Those lies, initially imposed on the billions, are believed by the billions. Attacking those lies, thus, means attacking those billions.

For Estienne La Boétie (a close friend of Montaigne who was also a judge) the great mystery of politics was obedience to rulers. Why do people agree to be looted and otherwise oppressed by government overlords? It is not just fear, Boetie explains in “The Discourse on Voluntary Servitude, Le Contr’un,” for our consent is required (La Boétie naively thought). And that consent can be non-violently withdrawn (even more naive: as soon as one strays, one’s career is destroyed, thus the power to eat, let alone influence…)

To go beyond Estienne La Boétie, and his observations on voluntary servitude, one has to realize that obedience is not as much to rulers themselves, as to lies. Systems of lies.

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German fascism rested on lies:

The camp of those who think Germany is lying has grown a lot: Trump is in it, and now even Trump’s nemesis Paul Krugman agrees with the liar in chief on Germany. German readers may object that France also lies (and everybody knows about delusional, Brexiting UK). However German lies are convenient for French corrupt politicians, Germany (in spite of all the fascist dictators), having a reputation for seriousness.

One may even argue that Germany ended up with monsters such as the Kaiser and Hitler, precisely because it had such  a serious, quasi-scientific repute… Which the Germans were the first to believe. 

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Lies Rule History: 

How did Germany become this fascist, racist monster, Friedrich Nietzsche stridently condemned, telling us it would bring a disaster to humanity, a full 35 years before the Zweite Reich? By telling lies. And first of all, to itself.

How come France was so unprepared to fight a world war with Germany in May 1940, after declaring war to Hitler, eight months prior? By telling lies. In this case the lies were from the French High Command, to itself. And from the French government to itself: one doesn’t launch a world war without checking first one is ready (and to be ready, France had to go to war in Spain against hitler and Mussolini)

Disasters and holocausts are often accompanied with lies, or by their mildest, yet most pervasive form, “non-saids” (“non-dits” in the original French). One such lie, or enormous “non-said” pertains to erroneous attitudes of Germany in several dimensions. Nowadays. (Instead one focused on the Greeks.) Here are some of the errors, by order of importance: immigration, ecology, and European economy activity and the attending debt problem. I will ignore the attitude to (mass) immigration (of Muslims, not all of them integrable): its main effect was Brexit. Even Krugman, following Trump, sort of, has to admit there is something rotten in Germany… As I have said for more than a decade.  

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Want to see what lies lead to? Consider carefully the two curves in the graph below:

Degenerating, increasingly impoverished Europe. The blue EU curve, above, is similar to that of France and Germany… Except. of course, France is increasingly lagging, as German policy has been effectively advantaging Germany Uber Alles, all along, as usual… Bankrupt banking in Germany is the great secret advantage…

I have explained that those things would happen, and why, for years. Now they have. Paul Krugman (leftist Nobel star editorial of the New York Times, famous “liberal” economist) didn’t understand for years, what the problem was and now, not only does it, but his position is quite close, in practice, to… Donald Trump. (And Trump is not as far from Obama in several dimension, from MAGA, America First, to debt and championing the US economically through mercantilist policies…)

Paul Krugman in The World Has a Germany Problem

The debt obsession that ate the economy.

“…he’s [Trump] preparing to open a new front in the trade war, this time against the European Union, which he says “treats us horribly: barriers, tariffs, taxes.” 

The funny thing is that there are some aspects of European policy, especially German economic policy, that do hurt the world economy and deserve condemnation. But Trump is going after the wrong thing. Europe does not, in fact, treat us badly; its markets are about as open to U.S. products as ours are to Europe’s. (We export about three times as much to the E.U. as we do to China.)

The problem, instead, is that the Europeans, and the Germans in particular, treat themselves badly, with a ruinous obsession over public debt. And the costs of that obsession are spilling over to the world as a whole.”

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What the European sheeple doesn’t understand is that Public Debt can be defaulted upon. The USA did this many times. It’s painful for investors. But no big deal for a truly sovereign country (thus, not Argentina… or Russia…). 

I have explained many times: Public debt is, should everything go wrong, and a default on that debt occur, a possible, partial tax. Thus European governments, by substituting tax to debt, preventing the latter by splurging in the former, engaged in the worst outcome, basically taxation equating debt going into default, while calling this over-taxation, moral and prudent.

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And Paul Krugman to explain:

“Some background: Around 2010, politicians and pundits on both sides of the Atlantic caught a bad case of austerity fever. Somehow they lost interest in fighting unemployment, even though it remained catastrophically high, and demanded spending cuts instead. And these spending cuts, unprecedented in a weak economy, slowed the recovery and delayed the return to full employment.”

Notice here that Krugman is criticizing Obama… now… whereas at the time he didn’t (but I did, stridently; Obama didn’t do then what Trump is doing now, namely beating the drum for a stronger economy by helping We The People directly…)

“While debt alarmism ruled both here and in Europe, however, it eventually became clear that there was a crucial difference in underlying motivation. Our deficit hawks were, in fact, hypocrites, who suddenly lost all interest in debt as soon as a Republican was in the White House. The Germans, on the other hand, really meant it.

True, Germany forced debt-troubled nations in southern Europe into punishing, society-destroying spending cuts; but it also imposed a lot of austerity on itself. Textbook economics says that governments should run deficits in times of high unemployment, but Germany basically eliminated its deficit in 2012, when euro area unemployment was more than 11 percent, and then began to run ever-growing surpluses.”

And Paul explains that “Why is this a problem? Europe suffers from a chronic shortfall in private demand: Consumers and corporations don’t seem to want to spend enough to maintain full employment…

The European Central Bank, Europe’s counterpart to the Federal Reserve, has tried to fight this chronic weakness with extremely low interest rates — in fact, it has pushed rates below zero, which economists used to think was impossible…. Indeed, much of Europe may well already be in recession, and there’s little if anything the central bank can do.

There is, however, an obvious solution: European governments, and Germany in particular, should stimulate their economies by borrowing and increasing spending. The bond market is effectively begging them to do that; in fact, it’s willing to pay Germany to borrow, by lending at negative interest. And there’s no lack of things to spend on: Germany, like America, has crumbling infrastructure desperately in need of repair. But spend they won’t.

Most of the costs of German fiscal obstinacy fall on Germany and its neighbors, but there are some spillovers to the rest of us… characterizing this as a situation in which Europe is taking advantage of America gets it all wrong, and is not helpful.

What would be helpful? Realistically, America has no ability to pressure Germany into changing its domestic policies. We might be able to provide a little moral suasion if our own leadership had any intellectual or policy credibility, but, of course, it doesn’t. There’s a sense in which the whole world has a Germany problem, but it’s up to the Germans themselves to solve it.

One thing is for sure: Starting a trade war with Europe would truly be a lose-lose proposition, even more so than our trade war with China. It’s the last thing either America or Europe needs. Which means that Trump is probably going to do it.“.

As we will see next the de-industrialization of Europe, for example France, and soaring mediocrity, is striking, and is directly related to the (plutocrat favoring) austerity… The main champion of this disaster has been the one who profited the most from it, relatively speaking, but not absolutely speaking, Germany. And its weapon of mass destruction of the neighbors, has been the attitude relative to debt and deficits: giant in the US, tiny in Europe… Whereas, in truth, Europe needs debt more than the USA does…

Germany developed and pushed that attitude, precisely because it provided it with an arrogant advantage inside Europe. But this is a childish, all too childish, game, the one which brought us world wars: intra European strife leads Europe only to ever greater degeneracy… not just relative to the rest of the world (aside from the even more degenerating Prophet land), but, more importantly relative to what is needed to preserve Earth…

Patrice Ayme

GDP Doesn’t Produce Life

March 10, 2014

One of my not so sophisticated jokes is that GDP stands for “Gross Demonic Product”. I have long compared France and the USA in economic matters, as the two republics are highly comparable. Paul Krugman is now of this opinion. As he puts it:

“I think I can usefull [sic] phrase my concerns in terms of my favorite comparison on these matters, which is between the United States and France.

The GDP Economy Roars Ahead In the USA: Nowadays, Americans Pay For everything

The GDP Economy Roars Ahead In the USA: Nowadays, Americans Pay For everything

Why this pair? Because we’re talking about two advanced countries that clearly have similar levels of technological competence but have made very different social choices; in particular, France not only does much more redistribution, it has expanded its redistribution over time, limiting the rise in overall inequality, while the United States has not.

So how have the countries’ destinies compared during the New Gilded Age? French growth actually has been somewhat slower, although hardly the catastrophe the country’s incessant bad press might lead you to expect.”

Overall French GDP is about 20% less, per capita than that of the USA.

However, it’s not clear that it means a lesser way of life.

Take medication: the French can buy the exact same drug, from the exact same manufacturer (French, American, or German), and the same package, and pay a fifth the cost. That’s fifth LESS contribution to GDP. The money contributing to GDP ends up, overseas, in some tax haven. How does that help well-being? By helping tax dodging plutocrats?

Take education: there is more than a trillion dollar of student debt in the USA. That’s a trillion dollar of contribution to GDP… of inextinguishable debt. The French GDP is terrible that way, because there is NO contribution to GDP, in France, from over indebted students.

Take transportation. Contemplate an American going around with his car. The car uses much more GDP per mile than the High Speed trains millions of French use every week. So GDP tells us the greater the efficiency of fast, modern transportation, the poorer a nation.

The USA’s economy has much improved since 2007. Thanks to fracking. Now the USA is the greatest fossil combustible producer in the world, even beating Putin’s petro-state. Fracking the planet to death since 2007 is great for the GDP of the USA. However, scientific studies in 2013 show that methane leaks all over much of the USA: that’s not so great for the planet, as CH4 is twenty, or more, times more of a greenhouse gas than CO2. (CO2 itself acts as a trigger for H2O, itself the prime greenhouse gas.)

The French, in vacation all the time and retired, early on, enjoy life outrageously. That brings a lower GDP. OK, so the French GROSS product is lower than it could be. Does that mean that French refined product is low? Of course not, quite the opposite: the grosser, the less refined.

Is a slave working the GDP per capita of his master up, better off?

France has been handicapped in recent years by artifacts related to her refusal of some methods, such as OGMs. The result? France went down from the world’s second food exporter to fifth. France has also outlawed fracking. An efficient crack-down on corruption (by contrast to corruption perception) has led to the loss of many contracts overseas.

What is GDP? The sum of all moneyed transactions. Thus, when a young French retiree works exclusively in a non-profit fashion, no GDP is generated. But that does not mean nothing is produced. Instead what’s produced is too precious to be moneyed.

In general, in an economy, what is the most precious, cannot be bought, or sold. That’s one thing free market naïfs don’t get.

It’s not a coincidence that Doctors Without Borders, Journalists Without Borders and the like got started in France.

Patrice Aymé

Worse Than The 1930s

December 15, 2013

GREATER DEPRESSION II.

I have long argued that we are in a Greater Depression. See: https://patriceayme.wordpress.com/2011/07/23/greater-depression/

Europe is actually doing worse, GDP-wise, in the aftermath of the 2007 crisis than it did in the Great Depression shock of 1931. Actually these are the early stages of the greatest catastrophe ever known to have struck the genus Homo, I claim, and will so develop, lest drastically new thinking is applied. Krugman is slowly coming on board.

In the 1930s, the word “plutocrat” was well known, & an object of contempt. In the early 1930s, revolution was simmering; the governments had to do something. The USA & UK went into full, Soviet-like, command & control economy to rearm. FDR launched a program of construction of no less than 24 giant (“fleet“) aircraft carriers in 1933!

In “If Only It Were the 1930s” Krugman shows the latest graph of relevant GDPs.

Worse Than 1930s Great Depression

Worse Than 1930s Great Depression

[Germany, UK and USA were not in the Gold Bloc, but applied pretty much the Sterling method: default. France refused to default thus kick back on her armament program… When war against Hitler was already in full swing (1939-1940)]

Says Krugman:  the UK actually had a substantially higher ratio in the 1930s— and even more so after World War II. How did it deal with this debt? Not through the recipe currently being imposed in Europe, of fiscal austerity and internal devaluation. Instead, the UK relied on a cheap-money policy that produced low interest rates and moderate inflation — “financial repression” — with the central bank “subservient” not just to the government, but to government debt-management policies.

Amusingly, but tellingly, Krugman forgets to mention that the USA devalued in 1933 (devalued its debt, that is). That’s one of the first things Roosevelt did, hence the hatred of bankers.

Nowadays, erroneous policies boil down to who owns the world. The world has been colonized by the plutocrats. To service them, they impose slavery on all.

Little economists paid for sleek plutophile propaganda form a crucial, well rewarded, part of the scheme.

(Otto Rehn, by the way is thinking to run as a major extreme right wing politician in the coming European elections; thus the European Commission is led, in economic & financial matters, by a declared right wing extremist, and an ambitious one, indeed, not the cool technician he claims to be… hence his rage against socialist France.)

The radical solution is to default on the debt (I have advocated this long ago in: ”To Save The World, Please Default”). https://patriceayme.wordpress.com/2011/09/14/to-save-the-world-please-default/

Or at least default on interest payments. That could be done right away. Plutocrats would not be happy, they would plot.

To shut plutocrats down entirely, establish a worldwide register of property, and tax plutocracy accordingly.

Using force is not as utopic as it sounds: the Swiss Parliament just denounced a fiscal accord between France & Switzerland. What’s next? France will use force and impose whatever it has decided Switzerland will do fiscally. That involves, among other things, not just taxing French plutocrats hiding in Suisse, but also 190,000 Swiss citizens.

Some will say: “Is not force bad? If France uses force against Switzerland, surely, this is bad.” Well, no. First, force is already used. Plutocracy is satanic violence, the worst side of man, ruling. Second, force in the service of goodness is always good, just as weakness in the service of badness is always bad. The difference? Morality.

At that point the famous John from Hartford, who is paid to sound smart on the behalf of the plutocracy, intervened. Said he: “Default on the debt? Yes I can see that doing wonders for growth and employment when personal and corporate credit in the US economy totals around $60 trillion compared to the less than $3 trillion of cash in circulation.”

John meant to be sarcastic, but he is just idiotic instead. I politely replied: John, thanks for pointing out this misunderstanding. Please pay attention to the context. We are talking about government debt. This is in the name of what the austerity is done. First point. I would be glad if this got cleared up in your mind, all the more since you are probably not the only such case.

Second point: money is created through credit from private banks or dark pools, in normal circumstances. But, for example before and during WWII, this was thrown out of the window, when a command and control system was put in place.

That the USA required Great Britain to pay its war debt after 1945 was hostile to justice, decency, civilization, and highly detrimental to the British economy. That was made possible only by a British elite sold to Washington. That this is still going on today does not mean it will, tomorrow.

All governments’ fiscal problems would vanish if the hyper rich were taxed enough to kill the plutocratic phenomenon. This is a necessity, not to re-establish fiscal balance, but to re-establish civilizational balance.

Oh, by the way, John Hartford is grossly ignorant of what happened in the 1930s. Then all major governments (USA, UK, Germany) but for those on the gold standard (France) defaulted. The non-default of France was a disaster for the French economy.

Patrice Ayme

More Europhobic Madness.

July 6, 2013

Krugman talking in “Rationality and the Euro: Gordon Brown… concluded that the case for euro membership was not good. And boy, was that a good call…there’s no comparison between British woes and those of other European nations that had large capital inflows and housing booms… it’s also largely because of a point that was perfectly well understood in 2003 and has been confirmed by experience: “internal devaluation”, reducing relative prices with a fixed exchange rate, is really hard compared with just devaluing your currency. Here are BIS estimates of the Spanish and UK real exchange rates, 1999-01 = 100:

British Worth Collapsing, Krugman Happy

British Worth Collapsing, Krugman Happy

Krugman: “Notice how Britain effortlessly achieved a real depreciation that, if it’s possible at all, will take years and years of mass unemployment in Spain.”

So let’s repeat slowly to expose the prestigious professor’s reasoning. Suppose a Spaniard and a Brit started in January 1999 with a total worth of 300,000 Euros. Now the Brit is worth 225,000 Euros, and the Spaniard 330,000 Euros (I adjusted to the latest value Euro/Pound). How did they get there? The Brit worked very hard, and the Spaniard, less.

So Krugman’s logic is this: work hard, and get poor effortlessly: good. Work less, and, however your efforts, get richer: bad.

Europhobes insist that getting poorer, from currency devaluation is good. We just saw it’s not good for one’s wealth. Is it good for GDP? Can one devaluate oneself to prosperity? Krugman loves to claim that this is relatively easy. So how come the British GDP is doing so badly?

UK GDP Doing Worse Than In 1930s, So What Is Krugman Talking About?

UK GDP Doing Worse Than In 1930s, So What Is Krugman Talking About?

Krugman: “an actual rational decision process is all too rare — perhaps especially when it comes to the euro. Talk to euro advocates and they cannot entertain, even as a hypothetical proposition, the notion that the single currency was a bad idea; I came away from one talk with the clear message that the euro cannot fail, it can only be failed, that any problems simply show that countries and leaders lack sufficient nobility of purpose.

And despite the overwhelming evidence that the euro was an even worse idea than it appeared 10 years ago, countries — notably Poland — are still considering joining. I understand that leaving the euro is a very difficult thing to contemplate; but getting in now, when you had the great good luck to avoid this mess? Awesome.”

Krugman knows not enough: countries are supposed, by treaty, to join the Euro. Also, although he and fellow Europhobes present the process of the UK not being in the Euro as a rational process, it was anything but. It was a plutocratic process. So what Krugman is saying is that plutocratic behavior is rational. Just as the croc devouring the child, I guess.

Indeed a plutocrat, Soros, made a billion dollars by forcing Britain out of the European Monetary Union. Soros did so, thanks to his corrupt accomplices in the British government. 

So, what Krugman is saying is that gangsters conspiring to steal We The People is rational, “awesome“.

What’s even more awesome is that Krugman keeps on missing the purpose of the Euro, loud and clear. Economics ought to be slave to politics. And, not vice versa, as is the case in the USA. Vice versa, like in “vice”: in the USA nobody object to seeing the so called “president” spend much of his time begging for money from his rich “friends”. (Sponsors, or “friends”?)

Europhobes keep telling Europeans that they should not have a country, but dozens, with dozens of currencies. Try moving around New England, while using several local currencies. That would have a very heavy economic cost. Maybe europhobes want Europeans to be enslaved to what president Roosevelt called, with contempt, the “money changers“?

Krugman’s entire case against the Euro, officially speaking, is that, the poorer the People is, the better it is for the People. Is it not the truth that plutocrats hold as self evident? So europhobes see the worth of the British collapsing with their British Pound, and they say that British devaluation is very good.

Europhobes see Britain doing worse than in the 1930s, and tell us that the Euro is very bad, because PM Brown was so good? 

What about logic 101? Is that bad too? Is dereason rational, and rationality illogical? 

The anti-Euro obsession allows to focus on what is not the real crisis. Spain, for example had a mis-investment crisis, that led to all sorts of imbalances. In any case, the fundamental reason for the present crisis was a political-banking corruption mix… That has nothing to do with the Euro. For example politicos from around Valencia are in jail, just for that reason.

But the banksters have not been prosecuted enough. And why so? Because, in part, all too many pundits make a profession from barking at the foot of the wrong trees. Corruption starts with greed, it ends up with rotten minds who cannot tell reason from hatred, or madness.

It could get worse; plutocrats and plutophiles could, like the Muslim Brotherhood, make madness and hatred into a religion… They have, many times before, in all lands. Then they, and their ilk, could hold power for 13 centuries, as the superstition called “Submission” did in Egypt. Way out? In Egypt, as in Europe? Force. Mental force, and, if that’s not enough, physical force. So the Euro is force, just as the Egyptian army is force.

Sometimes nothing short of force will get things to move, in the right direction! The whole idea of the Euro was to FORCE European Unification further. And this is exactly what is happening, in combination with solving the banking crisis.

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Patrice Ayme

GDP: Gross Demonic Proclivity?

August 14, 2011

Why Was The USA Down Rated?

BETTER ECONOMY FROM BETTER IDEAS, OR NOT.

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HOW TO GET OUT OF THE GATHERING ECONOMICOLOGICAL CRISIS?

Simple: superior ideas ruling. So:

1) Plutocracy is fundamentally anti-intellectual, thus anti-ideas. Crush plutocracy, drive it back underground, where it belongs, by definition.

2) Foster education and creativity in the West. This means free, and best education for all, as used to be the case in France or the USA in the past, for decades, when those countries were domineering. Yes, it means more government, more taxes, as it used to be in the past. Go teach that to Obama and his bipartisan wet dream, the Tea Party. The hard way: don’t give them a penny, heap contempt on them.

3) Price intellectual innovation correctly, worldwide. Declare economic war to those who refuse to go along.

Yes, it will be a bit delicate with drugs. But accords, government to government, can solve that: if India and China are doing so well economically, they can pay their way. By definition: we are just talking about balancing trade here. India cannot crow about its success in matters economic, buy major companies in the West, fire their workers, and then steal drugs, because it whines that it has no money. (I do not mean that drug companies are not thieves, especially in the USA, that is another subject.)

Allowing much superior ideas to rule is the solution, the only one, not just for saving the West, but for saving the planet.

Oh, what of that neologism: economicological? The words economy and ecology are closely related: eco means “house”. “Nomy” means “manage”, and “Logos”, even the Christians had to kneel to. Thus the distinctions between economy and ecology are artificial. And that point of view has drastic consequences; when coal burning is fully priced in full ecological context, its impact is clearly worse than nuclear energy, by orders of magnitude (especially when one considers that nuclear can be immensely improved, but not so for coal burning: there is just one way to burn fossils, there are many ways to go nuclear! Most of them undeveloped).

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WHY WAS THE USA DOWN RATED?

It’s a bit the same question as why was Obama down rated. The questions are closely related, in many ways. It’s all about taxes.

By refusing to augment taxes on his “friends”, the hyper rich, Obama deliberately decided to down rate the USA, and he is still at it. He clearly became president, in a desperate situation, where clearly spending had to be lowered and taxes increased. He did the exact opposite.  To make matters worse, he spent all the money on useless wars and his plutocratic friends, especially the bankers.

Obama is a child of Reagan, economically speaking. A consensus was created, starting with Reagan: government is the problem, taxes are bad. Reagan himself, and his advisers, did not believe his own grossest propaganda, as the record shows, and his advisers are themselves saying today (as they disagree with the Obama-Tea Party economic line of less taxes, less government, less economic activity). A curious thing: Reagan’s old advisers sound like leftist, relative to Obama.

People like Obama, and children such as his “senior” adviser, the greedy child Plouffe, barely 40 years old, were not reached by the full reality of Reagan’s rule. They did not have the attention span for studying it carefully. They were not interested, anyway: they are all about themselves.

Obama’s autobiographical books are just fantasies about himself. There is clearly no further horizon than an imagined Obama (I know very well people who were intimate with Obama at the time, and his books are totally fanciful). There are no preoccupation about the big wide world, it’s all about the imagined hero, toughing it out in an imagined tough world.

In truth Obama lived in Indonesia with four lived-in domestics (according to the New York Times, 2011). It was not yet as many domestics as in the White House, but he was clearly on his way. Obama’s mother had married an Indonesian millionaire (he was there just so that a truly American company could claim to be Indonesian, according to evidence, and the NYT).

Then, of course, Obama went to the top private school in Hawai’i, starting at age ten (consider the expense until graduation!) So Obama was truly a child of privilege, something that counfounded me this year, when I realized it. I had believed in his books, sort of, and believed he had a really tough youth, brushing off the many dissonances along the way. No wonder that as president he made it so that hedge fund managers could keep paying a maximum 15% tax rate. (Some hedge fund managers take as much money as would pay for 150,000 teachers!)

Obama had obviously to do little thinking during his whole career: it was all about posing. And now he is posing in the White House, waiting for some more good things to come to him, the hero, and some people are getting angry, for some reason that he cannot understand, nor does he care to.

Instead of understanding the complexities of the world, or even of the Reagan administration, the Obama operators just heard the roughest outline of Reagan’s propaganda. So they deduced, with their tiny brains: taxes are bad. That is why Obama lowered taxes lower than Bush, and keeps on repeating like a deranged parrot that taxes have to be lowered further, “to put more money into people’s pockets“. He repeated that, even after having been slapped by the USA down rating, which has everything to do with taxes (or, rather, lack thereof!)

Well, we can see who is putting money in his pockets: conniving Obama’s men such as the plutocratically sleeping (literally!) Orzsag, who sent dozens of billions of taxpayer money before joining his present employer, Citiroup. (A behavior illegal in Great Britain: there Orzsag would have been put in jail!)

In a striking contrast, to the aggressive greedy naivety of the Obama crowd, the whole planet knows that American taxes have to be brought up. But the American consensus against taxes, and against government, has set the USA on a quick course to oblivion. It threatens both the deficit, and, paradoxically, economic growth (growth is the only way to get out of the deficit).

The USA was down rated,  because the prospect of rising taxes in the USA is nil. The USA will keep on doing the wrong thing, full power on, commands completely in the wrong position, just like the crew of that doomed Air France jet, whose crew did the wrong thing all the way into the ocean.

OK, the Air France crew had many excuses, such as alarms screaming when they did the right thing, and silent when they persisted with error. But the USA does not have any excuses: what ails the USA is very well understood, worldwide, and only the USA is dumb enough, or arrogant enough, to keep on claiming that it should be doing what nobody else is doing.

Whereas in the case of the Air France jet, everybody is culprit to some extent, not just Air France and Airbus (which are criminally prosecuted by the French government), but also world air safety authorities, which should have seen the problem coming, or even the American FAA, which insisted on wide pitot tubes for the A330 jets, causing the stuffing of these with ice!

Compare the USA with Italy. Italy increased taxes on the rich, bringing them up 10%, a week ago (as part of huge austerity package). And PM Berlusconi, a conservative, and a plutocrat, worth more than ten billion dollars, cannot be accused of naïve leftism. He is anything, but. He also had engaged himself to never rise taxes. But, as Berlusconi readily admits, the situation has completely changed.

So where is Obama? Somewhere way to the right of the  PM Cameron, a British conservative, who, differently from Obama, plays it, as he said he would. Trojan horses are fewer and far between, though. Trojan horses are all about posing.

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WHAT DOES GERMANY HAVE TO TEACH?

Well, Germany is doing well right now, propped up, as it is, by precision machinery, best in the world, that it can sell at high price. How did Germany get there? Through more than a decade of austerity, starting in 1990s. Everybody was asked to take a cut, including the higher-ups, and including the unions. Many German companies took engagements to stay inside Germany.

Union representatives sit on the board of German companies, by law. Where does that German attitude comes from? Well, organized labor resisted Hitler, sort of: Hitler could not break it and thoroughly Nazify it.

Germany went down as a civilization because of plutocracy, the real force behind the crazed Prussian generals who attacked Europe in 1914, and behind the Nazis. Germany learned the lesson of the rule of Pluto the hardest way: more than 10% of the German population was killed, and German civilization went from the highest, to lower than beasts. 

In the former case, that of the Prussian attack in 1914, the plutocracy behind the generals was mostly German. In the latter case, that of Nazism, there was a big Anglo-Saxon component, carefully swept under the rug since (since it has contemporary consequences of the heaviest type).

For example Hitler was paid by Ford considerable money, $50,000 a year, maybe the equivalent of half a million today, as early as 1921. In exchange Hitler advertized Ford’s nefarious theories on the Jews, and gave Ford huge sway inside Germany, and orders from the Wehrmacht, once he was in command, 12 years later.

Many respected German intellectuals noticed this, and called attention to it. So Germany has been leery of plutocracy, and has respected its unions and fostered a common social bound, and co-responsibility. The same extends to France, to a great extend. If anything, today’s Germany learned from France that way.

In 1936, as Germany enjoyed Hitler, France was led by socialist Leon Blum, a Jew who introduced massive social reforms which are now the norm, throughout the West.

In 1914, French and German socialists tried to stop world War One with a strike. It failed, in part (at least) because the immensely charismatic, clever French socialist leader Jean Jaures, an intellectual, was assassinated by a crazed French hyper nationalist. Genuine German socialists and progressives could only watch with envy, as Blum introduced a new civilization, and Germany was sunk, deep into barbarity.  

So a higher lesson? That France and Germany have to do it together, keeping plutocracy underground.

Meanwhile,  the plutocratic component, a culture of privilege and its grandchildren of wealth, that component which fostered Hitler is what presently ails the USA. It came to believe it could get away with anything, exactly what German based plutocracy believed for a few generations. And it has been tempted by the military solution, just as German plutocracy was, and that is why it spends a trillion dollar a year on defense, with money it does not have.

***

Some Ideas Work, Some Don’t:

In all justice, German socializing tendencies were launched by Bismarck, a robust fascist, and his national health care system. The German socialists were very powerful, and a factor in panicking Prussian generals and plutocrats into war in 1914. Now, of course, the Germans had learned enormously from Napoleon and the French revolution he was riding. They learned in particular that Germany could be unified, and unified enthusiastically as an empire of comrades, ready to take on the world (under Napoleon a very bad typhus epidemic killed the Grande Armee, greatly made of German youth, as it invaded Russia).

Not all French ideas are good. The 35 hour work week is the law in France. It has been for a decade. The idea was that, by diminishing the number of hours people worked, companies would have to employ more people. That underestimated French ingenuity.

The 35 hour work week did not work in France. Not at all. It just lowered French GDP, and fostered a decrease of income per head, and thus of wealth per capita. Companies reacted by just augmenting productivity, not employment. It was basically rescinded under Sarko I, and will not be reinstated under the socialists, should they come to power again.

A much better idea is the present government line in France. It is to foster free university education at the highest world level, and build the highest value tech products in the world (so it is the same line as Germany, but for the top most technology, whereas Germany focuses a bit below). France borrowed for doing this (“Le Grand Emprunt”). A good usage of debt. And the socialists agree.

In truth, this strategy, of scientific and technical superiority, fostered by education, is the oldest French strategy: it was practiced by the French Third Republic, the French revolution, even the ancient regime, and characterized the Franks, as they harassed the Romans, shortly after appearing on the world scene, way back. 

***

GDP MENTALITY & INTERNET DEVOLUTION, AND HOW TO FIGHT THEM:

Prime Minister Cameron loved the Internet, as long as it caused havoc overseas. Now that organized bands are rising a sort of popular tax on the haves (people with devastated businesses will be mostly reimbursed, one way, or another), Cameron wants to shut down “social networks”. OK, true, much of the Internet is a vast devolution of the mind. Some people on Facebook, with thousands of followers, think it’s really important that they purchased a new guitar, or that the mocha at Denico is not all what it could be.

Human beings have propensities. Some desires were all the stronger, the less they could be satisfied in the wild. Well known examples are the cravings for sugar and fat. Sugar demanded to fight it off with untamed bees, it was nothing too readily enjoyed. but there much more subtle cravings, such as becoming the center of attention. Modern tech allows nobodys on Facebook to satisfy it, or Obama, or Hitler, or Stalin, to believe they are intellectually splendid. When artificial machinery allows to satisfy readily those hard-to-satisfy-in-the-wild cravings, things go out of (ecological) control, and there is a possibility that both individual minds and the society at large are in the process of self destroying, because those rare cravings are not meant to be abundantly satisfied; just look at Obama celebrating his 50th birthday in front of an ocean of American flags. Last European to do such a thing was Hitler. But, of course, there is a craving to take oneself for God: the tribe needs a very bold, slightly crazed leader believing in himself unrealistically to confront the lions, and persuade them that he is completely crazed, and thus too dangerous.

With the Internet, society has caught the information bug. Or is it just the gossip bug? In any case, much of the Internet is a form of diarrhea.

An article in the New York Times, the “Elusive Big Idea“, attracts attention to the fact that the very idea of idea is getting killed. Nietzsche, in his times, already attacked newspapers for fostering stupidity, baseness, devolution, the “last man”. Some will scoff, but less so, when they realized that out of German newspapers came the early twentieth century German mind, famous, among other things for the crimes against mankind, in 1914-1918 and 1939-1945, as Nietzsche had predicted with great vigor, and bellowing condemnations.

So how to get out of the present devolution? The NYT author says that information is killing thought. More exactly, idiotic information is killing deep thought. So is cut and paste. Obama’s electoral campaign was obviously a cut and paste job (from sites obviously including mine, which has left me deeply infuriated). Cut and paste artists cut and paste not just things they don’t understand, but things they can’t understand, and precisely because they can’t understand them. And the most notorious play one on TV, with the teleprompter, as Obama does.

So what is a possible remedy? One certainly has to go back to the great polemists of the past. Voltaire, Sade, Hugo, Nietzsche. They did not hesitate to use insults. Hugo called Napoleon III, an elected president who proclaimed himself “emperor”, after suspending the republican constitution, “Napoleon Le Petit“.

If civilization cannot use insults, who can? Certainly the established order does not hesitate to use whatever: the main opponent in Malaysia was accused of sodomy (a grave charge in that state where Muslims are judged according to Sharia inspired law); Sade was accused of madness by Napoleon. Sade’s crime? He had immense renown, as one of the main instigators of the French revolution, and one of his most courageous leaders, fighting to death to stop Robespierre’s terror. Sade opposed Napoleon’s wars and his despicable madness as a ruling gangster. So Napoleon caged Sade, thanks to his insults. Insults, like torpedoes, can work.

So how to protect civilization from the slide into mental superficiality favored by the Internet, in combination with the GDP mentality? Ah, what’s GDP mentality? GDP stands for Gross domestic Product, or, properly considered, GDP = GROSS DEMONIC PROCLIVITY.

GDP mentality says that products have price. No price, no product. In particular ideas, having no price, are not products. Anything which cannot be priced is unworthy. But a traffic jam, which costs a lot, as measured by the wasted gasoline, is worthy, and that is why the USA loves to produce so much of these, increasing its glory, at least in its mind.

Well, Obama would say that the bipartisan spirit, above the fray, is where the highest belong, and he has indeed to do nothing, while filling his pockets; it is just another form of the GDP mentality. In truth, civilizational Trojans have nothing to say: Thry are just rolled in by the naive, and regurgitate their deletrious contents in the middle of the night.

Verily, just the opposite is true. One opposes the fray, one does stand above it like a cloud. One opposes the fray, by going into the fray: “I welcome their hatred“, as FDR said.

Thus, what is needed is not the coolness of Obama, claiming implicitly that nothing untoward is happening. Quite the opposite: plenty of contempt is what is needed. Too many people are getting away with base, stupid, even racist comments. Which are not considered so, because of the stature of the offender. How is stature determined? Once again, from GDP. Extremely well paid pundits commanding high incomes are taken seriously because of this, and the power TV gives them.

There have been zillions of such examples since 9/11. For example, that bin Laden was a renegade CIA employee was systematically erased.

A prominent example, rich in dreadful consequence, was Obama laughing that Sweden nationalized its banks because it had “only 3 or 4 banks” [laughter]. That was a total lie. Sweden needed to nationalize just 2 mega banks, as the USA needed to nationalize just a handful.

Racism has its advantages that reason has not. After exuding spite on Sweden, and thus the Swedish idea of handling the property of the People right, Obama gave crooked bankers all the public money they wanted, without asking anything in return. Great man. Or maybe just great horse.

Telling it as is, and heaping spite on stupidity, and the worshipping of the basest instincts, is now a moral order. Respecting imbeciles, and imbecility, is evil. Because crime is never far removed from imbecility unbound.

Superiority is not arrogance, if it can be justified. Real superiority is what the best ideas are made of.

***

And why has education gone down, instead of going up, as needed?

Because education went down; watch Michelle Bachman, a neurologically smart, culturally idiotic, know nothing who won the republican sort of election in Iowa (to run for president, no less: dumb gets dumber!) OK, maybe she scored because she attacks Obama fiercely, as deserved! Thus dumb brings dumber.

The world is sick with a grave attack of global plutocracy. See how the plutocracy leveraged for its own profit the crisis of 2008, that it had itself created. Speaking of leverage, the fractional reserve system allows bankers to create money nearly as they wish, and, contrarily to pre-plutocratic times, they are allowed to keep the money to themselves. When did you see one of the supposedly left wing economists (Krugman, Reich, etc.) mention this?

Thus there is not enough money, in other words, capital, for most people and the institutions supporting people. Such as education.

But this is no coincidence: education sponsors revolution. Plutocracy fears only revolution.

The Chinese students who are so good in math profit from a superlative math teaching educational system. One of the last aspects where the People’s Republic justifies its name. Those opportunities are not available anymore in the USA. Why?

Because the plutocrats fear revolutions, and the best way to prevent such unhappy occurrence, from their evil perspective, is to bring up masses of young people who know nothing, and have lost even the notion of being elevated in their desires.

The plutocrats have been very successful that way. In the USA. “Cut & Paste” Obama is a case in point; his heart has not been educated, and he believes in nothing, as his ideas, short of making a billion dollars for himself, come too short to support lofty beliefs. Hence his dependence on the teleprompter, as even Michelle Bachman, the ever more popular cultural idiot who makes an asset to not believe in the biological theory of evolution, points out. Correctly.

In China, the plutocratically serving dictatorship maintains order with a firm hand, so the youth is allowed to gather some advanced technical knowledge. The dictatorship has it easy, as the condition of the Chinese People is increasing by leaps and bounds.
Whereas the West is slowly boiled by plutocracy, as happened to the Roman Republic, 22 centuries ago. Yes, time flies. The USA was down rated because it has too much Gross Demonic Proclivity to dig itself out of the hole it is busy deepening, from its domination by the basest instincts, and the passivity of its own population, which bleats, but does not flinch, as it is fleeced. Even  instruments of plutocracy such as rating agencies had to admit this, to keep a semblance of authority.

High time for a revolution.

***

Patrice Ayme

Love Can Be An Authority

August 7, 2011

Abstract: The clown in chief gets all the tricolor flags out, parades in front of them celebrating himself, his blackness, while his debt reaches heavens. He just forgot to pay for it. He insists that “the USA is a AAA country, we all know this, make no mistake“. Meanwhile one of Obama’s killer toys causes sorrow, while strafing the natives on the other side of the planet, just because. All those events are causally related by the logic of the deliberately stupid.

The epic failure is global: even American left wing economist have bought the sycophantic line. The USA prefers oil & gas to… water itself, a choice which may leave the USA low and dry. Many American economists believe more of the same is the essence of the future, and they are wrong.

Well, there is no essence, but the Quantum, and it jumps around in unexpected way. Expect the unexpectable… But suspectable. With the Quantum, properly understood, the philosophy of suspicion has fused with the physics of probabilities.

***

***

 Great Triumph Of The Great Leader; He Made It To 50!

The leader celebrated his birthday in public, thousands in attendance, close to tears, there was singing. The great leader passed, discreetly waving, moved by the collective fervor, dozens of giant tricolor flags behind him, red, white… Adolf Hitler, of course.

And Barack Obama, de facto, August 4, 2011, apparently celebrating the passing of 100% GDP debt, and his abdication. Indeed the president had just renounced the pesky pretense of being master of his destiny, or leader of the USA. From now on, he would just watch, officially as a dozen Congress people would decide or apply automatic cuts, balanced between Medicare and whatever. When the “You guys” guy has run out of clichés, he is naked, and that’s what happens.

The two most important words in politics are: de facto. Out (of) fact. De facto, Obama is Tea Party. That he screams otherwise, despite the colossal evidence to the contrary, makes it even more so. De facto, Nixon was an extreme left winger, relatively speaking, by today’s lamentable standards.

***

Mr. Obama, Where Is Your Hoover Dam?

The worth of the debt of the USA has been the object of collective hallucination on the part of worldwide investors and the American public and government. American debt is worth very little. Why? Because the USA WILL DEFAULT. It’s only a matter of time. A lot of time, but a foreseeable time.

The U. S. Federal debt, and U.S. consumer debt was used for … consumption. Still is. Consumption consumes, by definition. As Christ said on his cross:”All is consumed“. Meaning he was finished. If Christ was American, he would have paid for his cross with crushing debt.

70% of the U.S. economy is consumption. One guesses that, just to have sustainability, one ought to balance consumption, that is, destruction, and construction. But it is not so. Obama could not build a bridge, let alone the equivalent of one of the many giant dams which republican president Hoover saw built during his tenure. (For example Obama could have built a High Speed Rail line… But he did not. Although the Eastern corridor was ripe for an upgrade.)

***

Hoover Did Public Works, FDR Made Even More, And Cleaned The Stables, BHO Did Nought:

The conflict between Hoover, an engineer by formation, and F.D. Roosevelt was extreme. FDR was a lawyer who had very high government responsibilities, such as Assistant Sec. of The Navy for seven years (but he was truly the man behind the Navy built-up, and especially the submarine force), and it was during World War One, when the German submarine force was terribly successful, for all too long, threatening to isolate Britain, and cut-off the USA from France. Then FDR was governor of New York state, and re-elected. A person of immense experience. His cousin Teddy, also another revolutionary U.S. president for this privileged family, stood-in as his father in law during his wedding (thus FDR was much closer to Teddy than is generally assumed, and was no doubt encouraged by his dashing mien).

Perfidiously, FDR ran against Hoover’s deficits. FDR wanted “immediate and drastic reductions of all public expenditures… abolishing useless commissions and offices, consolidating departments and bureaus, and eliminating extravagances”.

But FDR changed his tune, once elected: “I pledge you, I pledge myself to a New Deal for the American people… This is more than a political campaign. It is a call to arms.”

In a way FDR was the anti-Obama: he campaigned conservatively (except for the repeal of prohibition, which he called for), but reigned revolutionarily.

FDR realized an enormous government intervention in the economy, and the cleanup of the banking system. Hoover thought enough enormous state sponsored works were in the pipeline. As events showed, FDR was right, and Hoover was wrong. Obama would have accused Hoover to be a far left wing liberal, and he would have found no words harsh enough for FDR. 

FDR shut down the banking system on day one of his presidency. What did Obama do that day? He celebrated himself. On day one, Obama celebrated Benito Mussolini style, chin sky high in front of the multitude, as if visited by Zeus himself. It’s funny, this chin thing the great leaders have. The elevated chin detracts from the rest.

***

FDR As Anti-Plutocrat:

The world has sunk in depression. Says FDR: “Primarily this is because rulers of the exchange of mankind’s goods have failed through their own stubbornness and their own incompetence, have admitted their failure, and have abdicated. Practices of the unscrupulous money changers stand indicted in the court of public opinion, rejected by the hearts and minds of men. True they have tried, but their efforts have been cast in the pattern of an outworn tradition. Faced by failure of credit they have proposed only the lending of more money. Stripped of the lure of profit by which to induce our people to follow their false leadership, they have resorted to exhortations, pleading tearfully for restored confidence….The money changers have fled from their high seats in the temple of our civilization. We may now restore that temple to the ancient truths. The measure of the restoration lies in the extent to which we apply social values more noble than mere monetary profit.

Who speaks this way nowadays, among the dwarves who are supposed to lead? (OK, they only lead with more fund raising from their plutocratic owners.) This present situation is in part explained by the vast de-politization, decerebration of much of the populations of the leading Western countries (especially in the USA: FDR got support from a vast tradition of recrimination, protests and large unions, both of which have pretty much disappeared from decades of propaganda to make most people stupid enough to be led by the nose by the masters).

One may notice that “Faced by failure of credit they have proposed only the lending of more money”, is the main line of the USA and the EU. Greece was lent hundreds of billions… to pay the interest on her debt to private banks. But of course the banks, or more exactly the managements of these banks are co-responsible, and should take a cut. And if they need too much help from the People, the People should take possession of them (= nationalization). Instead of giving the crooked bankers money for nothing, so they can keep on with their “false leadership“, as FDR put it.

However, debt is complicated; interest payment of the U.S. debt was 451 billion in 2008. It is projected to be only 411 billion in 2011. Yes, the debt augmented considerably, but the payments went down. Because, as the economy tanked, interest rates went down.

As I have long argued, now is the time to borrow maximally to create jobs. The failed banks which should have been nationalized should now spearhead this effort.

In: http//krugman.blogs.nytimes.com/2011/08/06/the-arithmetic-of-near-term-deficits-and-debt/, Krugman points out that borrowing trillions would cost nought. Now.

But of course it ought to be to create intelligent jobs, highest value jobs. In other words, create jobs for those who will rebel, adopt FDR’s ideas, and throw down the plutocrats. So the plutocrats are not keen: they say no to the infrastructure bank.

The unemployment is a political choice, not an accident. A choice of Obama and his sponsors. Obama has chosen his class. It’s the class of Bush, the class which views most people as crumbs. Anything else is a big lie.

***

Quoting The Devil Approvingly:

Xinhua, the official newswire agency, wrote an editorial:  “The days when the debt-ridden Uncle Sam could leisurely squander unlimited overseas borrowing appeared to be numbered… mounting debts and ridiculous political wrestling in Washington have damaged America’s image abroad…. All Americans, both beltway politicians and those on Main Street, have to do some serious soul-searching to bring their country back from a potential financial abyss.”

The editorial recommended “substantial cuts” to “bloated social welfare costs” and a “gigantic military expenditure.” This echoed China’s top general, Chen Bingde, who told a press conference last month that as America deals with “difficulties in its economy … it would be a better thing if the United States did not spend so much money on the military.” He said so while standing next to Adm. Mike Mullen, the chairman of the U.S. Joint Chiefs of Staff.

Earlier in the week the Beijing-based Dagong Global Credit Rating Co. dropped its rating of the United States from A+ to A with a negative outlook: “the defects in the (U.S.) political structure exposed in the bipartisan struggle indicate that the U.S. government has difficulty in ultimately resolving the sovereign debt crisis.

Friday Standard & Poor followed Dagong, with the same terms. Xinhua noted approvingly that this “proved what its Chinese counterpart has done is nothing but telling the global investors the ugly truth.

Well all this boils down to child in chief Obama having not faced reality: he had total control, and, while the deficit exploded, he did nothing. No new taxes, for Obama, and knocking off many pre-existing taxes. Moreover, Obama invested in nothing. Oops, I forgot that big investment, the biggest of them all, Afghanistan.

Nowadays, investing a trillion into the real economy would cost nothing in GDP (because interests have collapsed, as Krugman explains).

One has to understand that, without investments, debt becomes unserviceable. One GROWS out of debt. The Russian debt to France was paid back, only because Russia grew out of it, 90 years later. Yes, 90. The American Federal debt of WWII was never paid back, really, but grown out of.

Debt and investment are separated by fools only.

Since Obama gets orders from banks, he cannot order them to invest in the real economy, that would contravene his orders. So he wants to create an infrastructure bank, a way to compromise, so he hopes audaciously. But Geithner, the creature of Wall Street, does not want to do so. Indeed, an infrastructure bank would make Wall Street lose its tight grip on the U.S. economy…. And thus on U.S. society (thus exposing Wall Street plotters and thieves to prosecution).

Indeed, Wall Street controls his boy Geithner; with them, the world is his oyster. And so on. Around it goes. A few dogs chasing money around in the wind, their mission in life. Applying social values more noble than mere monetary profit to themselves totally escapes this crowd of plotters.

***

The Violent Truth; A Drunk Is Under The Bridge:

The USA has not been taking care of itself. It’s like the old, sick, depressed, confused, overweight smelly drunk lying in urine for too long below a bridge. Nobody took care of the bridge, either, and now that work of art is falling apart, threatening to crush the drunkard. Who will dare to do something? Why should that scene be worth anything? That is the scene of American debt.

The president just showed he was a child who abdicated all responsibility, abdicating, as he did, in favor of Congress, where “supercommittees” are going to be created to decide of all what’s important. Including, supposedly, defense. By the way both the French and British parliaments approved the Libyan war. At least the semblance of representative democracy are been kept. There. In the USA, Congress did not vote on Libya.

What’s next? A super dictatorship? A bipartisan dictatorship? President plays golf, looking real cool, the child cannot do his job, so supercommittees of the bipartisan party rule?

Anybody travelling the USA can observe that the country is decrepit, and increasingly so. Out there in the boondocks, much of what people live in was built at the earliest, 50 years ago. But it was not built with good timber, as in the Middle Ages, or good stone, as in Renaissance Europe. Instead much was built in plywood, a mix of wood pulp and glue. It is now falling apart, and mold pervades it. Let alone the fire hazard.

Obama called a “stimulus” to rush money so that fire departments would not be closed, all over the USA. But even in Silicon Valley, the richest part, at least one police department closed, and a fire department of a major city of the valley of silicon soon will.

Meanwhile Afghans object to the invasion force in their midst. They are arming themselves. 38 imperial troopers went down when their chopper was shot down on takeoff. A few hours later, two French legionaires got killed, and five wounded, in a good old fashion assault against Taliban fortifications. A colonial war, without the colonization. Brute force, for nothing, just the heck of it.

Concludes the valorous soldiers war chief child Obama: “Their death is a reminder of the extraordinary sacrifice made by the men and women of our military and their families. We will draw inspiration from their lives, and continue the work of securing our country and standing up for the values that they embodied

Which kind of lives are those? Going to the other side of the earth, fighting to death, for the Islamist drug lords in Kabul?

Standing up for which values? Fighting for the Islamist Constitution of Afghanistan? And how does spending a trillion dollar a year on “defense” (in the Hindu Kusch, killing the natives) will help defend the USA? Bin laden was recruited and trained by the CIA (and its Saudi subsidiary).  So if one wants to go bomb and kill the origins of bin Laden, no needs not to go all the way to the other side of the Earth. The 9/11 commandos were trained in Germany and the USA, so why not to go attack that instead?

Standing up for which values? Everything indicates that the topmost values of the leaders of the USA are corruption, collusion,  connivance and confusion, in this order.

***

Debt For Nothing (Continuing):

One thing is clear: the USA ought to change from a fiscal and judicial context favorable to consumption, to one favorable to investment. Getting in debt for consumption is very different from getting in debt for investment. That is why I am bullish on Europe. And those who are bearish on Europe are wrong: The euro is just a bait. Sure it was good to eat, it was meant to be. There is a hook inside that delicious euro, a federal hook, and it’s starting to hurt. Pain does not prove that there will be no gain.

Even Greece has some recent infrastructure to show you (subway!) than the USA, and more of it. The only serious bridge (re)built in the USA right now the Oakland-San Francisco bay bridge. It has been made in China, for more than 20 years, an humiliation.

By comparison, a French private company built the world tallest bridge, the 3.5 mile long Viaduct de Millaut, in just three years. French, not Chinese engineering, employing French, not Chinese engineers! Economics without industry is only ruin of society.

***

The Empty Suit Is A Right Wing Cataclysm:

Under Obama the total federal deficit exploded. Under his watch, the Federal deficit went completely out of control.

It is a subtle thing, because much is hidden. Looked at it one way, the debt augmented 45% under Obama, in absolute value, from 10 trillion to 14.5 trillion (August 2011). The face value, official debt went from 80% of GDP (end of Bush II) to more than 100% of GDP. Soon we will be above 120% of GDP, the maximum, ever attained by the USA, during World War Two.

Of course, World War Two was a giant investment: the USA ended up owning the world, except China, the USSR (and Eastern Europe that Uncle Sam offered to Uncle Joe, with negotiating skills reminiscent of Obama).

However, many items are not counted in the 14.5 trillion. Some items pertaining to TARP (giving or lending money to the bankers who ruined the country; when it’s a gift, it’s counted in the deficit, when it’s lent, it’s not). Some pertaining to whatever. The total potential debt of the USA is more than 70 trillion dollars. And increasing fast.

Contrarily to what is said by the plutocratically sponsored politicians, debt is increasing fast, not because there were not enough cuts, but because there were too many cuts. What counts is not the value of debt, but the debt-valuable investment ratio. So I say.

Because the USA confuses economic activity with consuming consumption, that ratio stays bad, and the recent decisions, the recent abdication of Obama, guarantee that it will get way worse.

As the rating agency S & P pointed out, the politic positioning of the ill named “Republicans” makes it unlikely that taxes will be raised. Obama made the so called republicans’ beds, as he did nothing, when he could, and should have.

Differently from Italy, where the Italian government owes its debt to the Italian People, the USA owes its debt to foreigners, as Xinhua pointed out. Foreigners own approximately 50% of all the federal U.S. debt held by the public.

This means that, if foreigners feel that the USA cannot be trusted anymore, as a place of investment, the Federal government will suddenly be 20% short in the budget it has at its disposal. It could only compensate for that by making foreigners offers they cannot refuse. meaning very high interest rates (as happened with Greece).

***

The Empty Suit: Right Of The Tea Party?

That is the only question which is amusing enough. An article in the New York Times, “The Madman Theory“, points out that, Nixon was a “de facto liberal”. Although, at the times, he was evil personified as far as half of the USA was concerned, and most of the planet. Obama, in comparison, is, de facto, the most right wing president, ever. His mouth may be on the left, but his hands are on the extreme right.

We have known for a long time that Obama is way to the right of Nixon. I knew this on the day after his election as president: he went to work at a hedge fund in Chicago. That he does want to admit what it means makes it even more so. He is a bad negotiator, intentionally, beyond grotesque: he bears witness against himself.

Now Obama wants to make a billion, that’s Obama’s declared aim in life. Chin up! Higher! Mussolini is jealous! Further! The audacity of dope.

***

Anders Brievik’s Massacre In Norway:

I am for immigration. In a sense, I have been emigrating my entire life, I know how it feels when one does not belong. Sometimes it’s OK not to belong, and it helps the country one does not belong to spiritually, by opening to it new knowledge, enriching wisdom.

However, there is integration and integration, and integration ought not to be confused with disintegration. Examples abound, in history, where a civilization collapsed under a migratory flux. Immigration without integration at all is only disintegration of civilization, let alone explosion of edification.

Meaning? Norway brought 550,000 nationalized (OK, “naturalized”) immigrants in 15 years (that is more than 11% of the population). Out of that, officially, about half were extra-European Muslim (thus harder to integrate). That is way too much, way too fast. Dubai would not have naturalized one of them (OK, Dubai is racist, but also, prudent).

This crazed immigration does not explain the insane maniac’s convoluted thinking process. It just made it unavoidable. I was myself bombed by an extreme right wing French commando of Breivik like characters, long ago.

That is actually ironical: Breivik had serious deficiencies in his fascist, racist culture: there is an old, fascist, not to say racist current in France, which helped inspire even Hitler. Breivik wanted to change the “multiculturalist” regime in France (Sarko, multicultural, really?)

Breivik wanted to set up a nuclear device on the Eiffel Tower. It was completely silly, as the overall principle of France is integration, not multiculturalism. (The French principle of integration was weakened in the last few decades under withering criticism by the Americano-Northern European cultural multiculturalist opportunism, but that critique is now in full disarray, and retreat, so one suspects that French integrationism is going to return with a vengeance, as the Qaddafi clan can testify.)

Much of French ancestry can be traced to North Africa and the Middle East (Arab, Berbers, Jews), genetic tests show. (OK, and Italians descend from Iraqi agricultural immigrants, 7,000 years ago!)

Overall, a peculiar culture, now identified with the United Nations and Human Rights, a culture which one should call Paleolithic, triumphed. A paleolithic moral diet.

At least it triumphed ever since slavery was outlawed in 660 CE (forgetting about lamentable episodes such as most Crusades, “Saint” Louis the Cruel Butcher, the insane Religious wars, and the confused immoral Louis XIV). So, if Breivik was talking about culture, against and swallowing hard core Islam, France is where the successful imperialism is. The French like culture is triumphing worldwide, much more than any other cultural current, at this very moment, as the head of the UN go teach the Syrian dictator human rights.

***

Frack Me Up!

European bashing is a strange thing. American economists, even “left” wing economists (Krugman, Stiglitz, Johnson) do it a lot. It seems to me that the Europeans are trying harder than the Americans to get their house in better order. The USA was economically fortunate to have plenty of energy, for 150 years, at least. In places, as it still does in some parts of Iraq today, crude oil was gathering in lakes at the surface. Starting in Pennsylvania, the gods made the USA the world’s first producer of oil, for most of the age of oil. That was extended, after 1945, by a pact with Middle East feudal devils.

Now all American hopes are in fracking. Fracking consists in injecting one truck of pure acid underground, mixed with ten trucks of water, adding many agents meant to kill all life (in case it survived the acid!)

But how well will fracking work? In truth, nobody knows. But the entire USA has bet that it will work, that cheap energy will keep on coming. Top economists take this for granted. If it does not, the economical disaster will be enormous, because the USA expects to keep on going with an energetically inefficient economy. If fracking backfires (literally) the USA will roast.

How could fracking backfire? Well, the process of creating fractures underground is renewed many times in the same well. The deadly acidic mix is pushed down, then regurgitated, brought back up to the surface, and gas is extracted, until pressure drops, and a new deadly acidic mix is prepared, pushed down again.

As this cycle is repeated, fractures keep on propagating. Most of the well is horizontal (the drilling bit can be steered). A drawing shows that, after a while, fractures should reach up, and contaminate the water table. And that is where the economics fail, because water is much more precious than oil, or gas. One cannot drink oil, and one cannot breathe gas.

***

Desalination Requires Energy:

Desalination plants can bring water in: Barcelona built a massive plant quickly to lessen its imports of water from the French Hautes Alpes, 700 kilometers away. But Barcelona is on the sea. Huge European companies are selling desalination plants all around the world, and no doubt some progress will be done using renewable energy, such as solar, more than now.

However, desalination plants need clean sea water, and a lot of energy. Therein a vicious circle: if your energy destroys your water, you lose both water, and energy.

The main fact of economics: it’s all about energy management.

***

What Is The Essence Of Quantum Physics?

Quantum (De Broglie) hypothesis: Any natural phenomenon evolves according to a wave associated to it, which determines its existence. Its wavelength is inversely proportional to its momentum, and proportional to Planck constant.

The Quantum (De Broglie) hypothesis has various spectacular consequences, such as the penetration of forbidden regions, as waves do not stop on a dime (this is the tunnel effect).

The point is that the Quantum is all about waves, existence waves, no less. And those waves are globally determined by the geometry that can be reached (in the wavy sense of reaching, which entails penetration, as I just said, a phenomenon already known in classical electromagnetism).

When one starts to think in a Quantum way, a lot of the real world is illuminated anew.

***

Existence Is Quantum, Or Is Not:

So what to think of philosophers who talk about existence, time, nothingness, and know no Quantum Physics? Well, they have an excuse, if they were contemporaries of the birth of the Quantum. But their philosophies do not have that excuse, nowadays.

Now, if we want to think about the world, truly, we have to follow, and respect, the Quantum paradigm.

***

Does Authority Rest On Guns, Ultimately, Always?

To a great extent. However, there is something as proximal reason. The Nazis did not have as much guns as the German army. They resolved that by seducing the army. Actually, the Nazis were nearly all about seduction. OK, they killed 10,000 opponents in 1932. However, they told voters that they represented a new order, a new hope, and they were audacious, that was guaranteed. If Germans voters had known what the Nazis were really in the bed of the plutocracy (they claimed the opposite, the Nazis claimed they would submit the filthy rich), and that the Nazis truly planned another world war, German voters would not have voted for them in national and regional elections, and referendums.

Meanwhile the Nazis, and, in particular, Hitler, seduced the army chiefs. With the army wrapped around their little finger, they had big guns, indeed. But they got them through love.

The Germans were seduced with very big lies, quite a bit as Obama seduced those who wanted change in the USA, and all he did was more of the same, more plutocracy, more military-industrial complex, more debt for nothing, more loopholes for the hyper rich, and his hedge fund friends. Alright Obama talks against his billionaires and his hedge fund sponsors. So did Hitler, on an astronomical scale, and, truly, he did the opposite.

The louder Hitler was, the more suspicious one should have been. Hitler used to holler about his desire to protect peace and minorities. Such were his great themes. This has been forgotten now, so Hitler’s seduction of the masses is now mysterious.

All what was in the way of peace and minorities, Hitler screamed, was the Versailles Treaty (a colossal lie, generally repeated ad nauseam by pseudo intellectuals, to this day).

Lies, spring, eternal. The leopard does not have dots because they are pretty, but because they are confusing, and masks the true shape of the flesh eating monster. Voracity comes with camouflage.

One does not have to chose between love and guns. Love can bring control of the guns. Love can commandeer guns. Love too, is authority.

But authority without truth is, ultimately, only the ruin of power.

***

Patrice Ayme

Pee Pee Pee

May 29, 2010

 

WHEN NOTIONS THAT LIE PLEASE PLUTOCRACY:

Abstract: Plutocracy has caught American society in an overwhelming web. Pernicious concepts and tools have been engineered by financiers and economists to justify its rule. The credit rating agencies are a famous example: they, and their plutocratic owners (Warren Buffet) rate the privates who pay them (but the governments do not pay them, so raters can rate them according to whether their private clients are long or short, the example of Greece and Goldman Sachs, also a Buffet property, a case in point).

Economic concepts such as GDP, productivity, PPP, the very basics of measuring economic performance objectively, are grossly biased. But always in the same way.

Price Purchase Parity, PPP, was invented mostly, in its present nature, to prove to the increasingly suspicious masses, that American plutocracy is best. GDP, itself biased, was not biased enough, in the eyes of the plutocratic masters. So the little economist robots functioned as wanted, and biased the bias some more, until masters were pleased. I am not saying that the concept of PPP could never work. But, as it is, it works only for the owners of the USA, and the obsessively materialist world they want us to live in.

As it is PPP belittles the economic achievements of other countries. PPP excludes services, hence health care, education, welfare, and general services (such as child care, public transportation, smart web and very high speed trains). Instead the existing PPP favors goods, thus consumption, and the more frantic the better. It judges a man’s happiness by its stomach. Existing PPP blossoms with debt, the way most of the money is created in the USA (by private bankers funded by the state in several ways, some secret, some blatant). Too much debt served, that’s called serfdom. Debt can destroy democracy: that is how the average Frank ("Free") became a serf, over a few centuries, in the High Middle Ages.

Even leftist "opponents" embrace many an erroneous basic economic tool (as I show by deconstructing my preferred self conscious economic robot once again).

***

***

DISINFORMATION EVERYWHERE:

Let’s recapitulate first the biggest absurdity of the American economy in the last two years (and thus the absurdity of economic and financial theory when reduced to the cult of greed). Citizens of the USA were programmed into believing that nationalizing the so called financial "institutions" was "not-American". So what happened?

PEOPLE WERE NATIONALIZED BY THE BANKS:

Five corporations controlled by the rich constitute the U.S. mainstream media: there used to be around fifty independent news organizations in the early 1980s. No wonder people think all the same.

The right screams that Obama nationalized the banks, and that this is "un-American". The left says that banks could never be nationalized, because this will not fly in America. Both are sure of their opinions, both are wrong.

Verily, the nationalizations were paid for, but without acquiring title. The Obama administration, like a deer in the headlights, chose the middle course, the middle of the road, a place of wisdom, according to deer in headlights. Obama was being fed delicious poisonous advice by the wolves surrounding him, his "friends" Summers, Geithner, Dimon, Buffet, the agents of Goldman at the White House, etc…

Those worthies thought they could foil everybody. And, so far, it has worked, because opinion makers have been thoroughly confused, or have been in the position to claim they were thoroughly confused. The insistence that it was all the fault of little people who had defaulted on their mortgages, masked the reality that the largest hedge funds in the world were the publicly financed private banks, and they had failed, but not because of the little guys. They had failed, because they all piled up on the same side of a losing bet, with huge leverage. So the little guys got accused, while we read everywhere that hedge funds did not fail. That is disinformation. Smaller hedge funds made a fortune against the publicly financed, privately managed, HEDGE BANKS, which were too big to unwind their giant "investments" (and still are).

Imagine offering to pay for somebody’s house, because they had lost their house playing with your money, with their friends. And then you, the public, have to pay for the next house too, and the house after that, and the entire neighborhood of fat cats, as they all played with each other, with your money, and "lost" it all, giving your money to each other, buying for themselves other stuff with it, that it is none of your business to look at. All of this to ensure they still own the neighborhood, although you paid for it. This astoundingly gross conspiracy is what happened, it is called the "financial crisis of 2008", but the propaganda is so thick, nobody seems to understand the simplicity of it all.

The way out was just to nationalize everything, wipe the crooks out, and order the nationalized banks to finance the economy as needed for the furtherance of economic growth. It is said that government spending is responsible for 40% of Japanese growth in the last 20 years (but then, the government debt is 200% of GDP, much higher than Greece).

Those who had bankrupted the banks, were left just as powerful as before, if not more, because they realized they could get away with anything. They are so powerful that they are now able to block any reform which would hinder them. The bankers can even block understanding the very system which made them rich, this system that turn into a profit for the few, bankrupting not just the banks, but the entire "developed" world. Their half sentient robotized professors go on TV, orchestrated by the likes of Glen Beck, and sing as ordered.

Just today Glenn Beck, this uneducated, but well financed right wing preacher who weaves his discourse with material which sometimes seems straight out of this site, was comparing the fate of bankers under Obama to that of the Americans of Japanese descent under Roosevelt. The citizens had their freedom and property taken away, while the banks had the freedom and property of the citizens taken away from them, but for plutocratic propaganda it is all the same. Old fashion propaganda made people believe lies, but we have now a new type of propaganda, deliberately as confusing as possible. When the public does not know what to think, it does not know what to do, and, meanwhile plutocracy splurges.

***

HOW PPP LIES ABOUT WELLFARE STATES BEING POORER THAN THE USA:

Groupthink was made worse as economics, the theory of house (eco)-management (nomy), presently in power, is obviously wrong. Not just because it crashed, and stays crashed. But also because it can be easily demonstrated to be deeply flawed, in its most basic logic, here, there, and everywhere. Economists learned to enjoy a non sense financial system, a tail that wags the dog, making rich the opinion makers who approve of it. It paid to become non sensical.

I focus here on a technical instrument, PPP, Price Purchase Parity, used, often implicitly, by most American economists (see the extract from Krugman below). That neat little PPP trick ruins all fair comparisons of the USA with Europe. That is why PPP exists, in its present nature, for the greater glory of the USA as it is, and thus of American plutocracy. PPP undermines the will to leave behind the economic lunacy implemented in the USA in the last 30 years. Even the most critical of American economists are affected by plutocratic PPP cult.

Here is a subtle example of plutocratic propaganda hidden, no doubt unwittingly, inside Paul Krugman’s logos, just as he is making… a particular case of the general philosophical point I am making in this essay!

"There’s also an issue of labor-leisure choices. In the 70s the long-run trend of taking productivity gains out partly in the form of shorter working hours came to an end in the US, while continuing elsewhere. What that’s about is the subject of dispute, but it’s important to understand that a large part of the GDP difference between the US and Europe reflects that choice. France, in particular, is a country with about the same level of technology and productivity as America, but with roughly 25 percent lower GDP per capita; this mainly reflects longer vacations and earlier retirement, which may or may not be bad things, but are not a straightforward case of inferior performance."

I agree with Krugman’s basic drive here. The French could work more, but they prefer vacations. That is a different philosophy of economics. (Although the French government think the French ought to work more.)

At first sight, it is hard for US citizens to detect the misinformation above, because they have been fed it so many times before, it has become them. Moreover there is nothing subtle about it, and, as Hitler said, common people cannot detect big lies, because they only practice small ones. Repeating big lies all day long makes them into the truths, as far as the commons are concerned. That is the real tragedy of the commons.

Verily, here are the latest numbers from the World Bank in "nominal" GDP per person:

12. United States $46,716

13. Belgium $46,486

14. France $45,981

("Nominal" means: the raw numbers, as they are, converted as the currencies stand. "Latest": 2008.)

Contrarily to what the honorable Paul Krugman breezily asserts, one does not observe a 25% difference in GDP between France and the USA. It’s more like $750 per head, namely 1.5%. Tellingly, this deviation from reality is systematically entertained by American economists: they always insist that France is much poorer than she really is.

I must recognize it is embarrassing: the French are having their cake, and eat it, during their unending vacations. (Moreover, it’s even worse than that: France producing only a small fraction of CO2 per person or per unit of GDP of the USA, per person, or per unit of GDP, the difference of "wealth" of a grand $ 750, is more than compensated by the energetic inefficiency of the economy of the USA. In other words, the USA spends more on waste: sitting in traffic jams augments US GDP, more than it does the French.)

The left wing American economists say: "France is much poorer, but…" the neo-conservative, if not neo-fascist, American economists say: "France is much poorer, and… ". In both cases, American economists keep on crowing about the unequalled greatness of the USA, never mind that the numbers say otherwise.

However naïve and inappropriate, GDP is a straight calculation: it is the addition of all money transactions (kisses don’t count, only cash). However, Krugman and all American economists in good standing in the power halls of the USA, do not use GDP to compare France and the USA, that would be too sad. Instead they use a completely flawed theory of PPP. PPP is GDP manipulated by those who want to please plutocrats, as the later provide economists with halls of power to amble through.

***

PPP IS IMPORTANT, AND ITS BIAS MATTERS:

As it is, Krugman reinforces, however unwittingly, as I already emphasized, neo-con Americans with just what they want to hear. Namely that the French live 25% less well than the Americans. This looks like splitting hair, but the case of France is important, because France does everything the USA does, PLUS has a lesser gap between the rich and the poor, and is more of a welfare state. That is why American plutocrats obsess about France all day, and all night long, and make sure that the American public gobbles a distorted vision of that original source of American civilization (As Michael Moore pointed out in his movie, "Sicko", the danger is that Americans like the French all too much).

Americans plutocrats have been arguing that "welfare states" cost too much, and France, as she really is, proves that they are lying. PPP is the device that make academics able to support that lie with a clear conscience.

Why is PPP important? To validate an economic strategy, one needs to look at different economic systems, worldwide, and compare them. (PPP calculations are used to measure poverty rates, so they are very important socially, worldwide.)

Comparisons between economic systems are difficult to do because the worth of countries is, at first sight, dependent from their currencies, and the relative worth of currencies vary in time, often spectacularly. (Example: the value of the euro has varied, relative to the US dollar, by a factor of two, in less than a decade, from about 80 cents to 153 cents!) So economists invented PPP, to correct for that. It was a good basic idea. What is not working is that the computation made rested on an 80% wrong philosophy. In other words, it had a huge conceptual flaw, as I will explain.

***

CONSUMERIST OBSESSION VERSUS A MORE WHOLESOME PHILOSOPHY:

Existing PPP is erroneous for a drastic reason: STANDARD PPP ASSUMES THAT WEALTH IS ONLY MEASURED BY A FEW PARTICULAR CHEAP CONSUMABLES, AND THE CHEAPER, THE BETTER. As it turns out, the French care less about these particular goods, the French prefer other goods and SERVICES.

American economists find themselves in the curious position of cows declaring lions to be poorer, because in the lions’ den, grass is expensive. And cows believe that stuffing oneself with grass is of the essence. (Don’t laugh: the French have the highest animal protein consumption per person, in the world, they do not eat water logged meat as all too many Americans do.)

Let’s go back to the problem at hand. The GDP per capita statistics used by the honorable Krugman (USA 25% above France) reflects INTERPRETATIONS American economists traditionally have to make, because they like to earn a good living.

It would not look good if the USA was not superior, where it is supposed to be superior, in providing wealth. The wealthy masters would be displeased, should that impression endure, and thus the rabble could become suspicious of the incomparable greatness of the USA, and thus for their great leaders. In North Korea, one cannot doubt the Great Leader, in the USA, one cannot doubt the Great Leaders, the so called "philanthropists", who lead America. So American robot economists, as good little scribes who want to keep their jobs, improve the statistics by nearly 25% in favor of the USA.

***

PPP: PHILOSOPHICALLY WRONG:

In particular PPP does not reflect behavior modifying taxes. The European Union has a mandatory minimal 15% Value Added Tax. That VAT makes everything at least 15% dearer in the EU. In France, Germany, the UK, the VAT is 17%, and 23% in Greece (as an emergency measure). The American economists react by saying that Europeans are that much poorer (by 17% in Franco-Brito-Germania).

This VAT abates the consuming of goods, indeed. It also buys Europeans a lot of state mandated services… The wealth does not disappear, it is replaced by a balanced diet, with more services in it. Those services the Americans are deprived of, but the Europeans cannot do without. So who is the wealthier? Those, the Europeans, who have services that the others, the Americans, have not, or are those Americans wealthier, because they can buy even more stuff made in China?

Thus I have a general objection to PPP. Conventional PPP assumes that wealth is judged by goods Americans splurge on. This is weird: most of the wealth produced by advanced countries is in SERVICES. Services constitute more than 80% of the economy of the France, or the USA. PPP only concentrates on 20% of the economy.

The French like to be served, with health care, education, and general caring. The difference between France and the USA, is that Americans are content to go to the restaurant, and be served there, so restaurants, and valet parking, are very important in the USA. Whereas the French like to be served all day long, not just when they go to restaurants. The French like to be served in health, education and welfare more than Americans do, so more French economic activity is diverted into services rather than in purchasing some particular consumables Americans are more obsessed by. The French do not just define wellness with splurging on Chinese made goods (although they do that too, just not as much).

PPP assumes that if a hamburger cost only one cent in the USA, and 100 cents in France, the Americans will buy 100 hamburgers when the French can buy just one. Thus, say American economists, the Americans are 100 times richer than the French. Instead, a good doctor will say that the American economists are risking obesity, and cardiac arrest. And obesity of the brain, too, they think too much.

Moreover this is a virtuous, or, at least, a fattening, loop. While Americans gulp more and more hamburgers, the price of hamburgers drops, because the more demand, the more supply, the more of the Amazon forest is cut down for vast pastures to raise cattle to feed American economists and financiers, etc…

***

PPP: PLAIN PLUTOCRATIC PHILOSOPHY:

A country such as France deliberately taxes consumption. The idea is to limit waste, and increase savings, thus investments (France has indeed a better, more modern and performing physical plant than the USA; only the army of the USA is better equipped). The difference between the gourmet and the pig comes to fore.

The encouragement to save and invest reminds one of what is asked from private banks today: augmenting capital requirements, lending to the real economy. France wants its population to be rich, not just indebted. It is a lesson of history. A debtor, in the European Middle Ages, one called that a serf. Men who wanted to be freed of their obligations defaulted by fleeing to the cities. Later some fled to the Americas. A land of owners, such as France, is more economically motivated than a land of debtors, such as the USA. So they get more involved, and demonstrate more. So good was this approach that it was adopted by the entire European Union (even the UK, as I said!)

Hamburgers or savings? That is the question. PPP, as presently computed, is biased towards viewing consumption of goods as an absolute good. Health care basically is free in France, thus, say American economist, worthless. Same for education. Free in France, so worthless.

Those who have long lived both in France and the USA, will guarantee you that the average person lives poorer in the USA. And even the rich in the USA have to worry about private school for children, extraordinary medical expenses etc (there are private schools in France, 25% of the total, but they are getting state subsidies, and are about ten times cheaper than in the USA, where they typically cost at least a third of the average family income!).

It is revealing that American economists such as Krugman, who howler about the end of the euro, because it is coming down from its 54% overvalued peak, use an undervalued euro to evaluate French overall economic performance. It is variable geometry economics: true here, false there, depending upon what one wants to prove, depending upon what will please the masters, those whose name is on the buildings on the hallowed campuses of power of the USA.

In any case, Price Purchase parity is an example, one of many, of a basic economic notion assuming the inferiority of some philosophical values. Unfortunately for the long term reputation of American style economic theory, our civilization, and even our non pathological neurology cannot do without these philosophical values.

***

Patrice Ayme

***

P/S 1: I have already complained about PPP, in a more general set-up.

P/S 2: PPP, this Pathological Plutocratic Ploy, has long been well known to be biased. The conventional objection to PPP is that it does not reflect standards of living, because:

• PPP numbers can vary with the specific basket of goods used, making it a rough estimate. (Example: "The Economist" loves to use the price of hamburgers, worldwide, and claims that its "Big Mac index" is just as good as PPP, thus unwittingly proving how bad PPP is, since in many countries people don’t care about hamburgers. In those countries there is less demand for hamburgers, hence less supply of hamburgers, hence smaller economies of scale, hence higher prices.)

• Differences in quality of goods are hard to measure and thereby to reflect in PPP. (Example: In the USA , meat is often loaded with water to be made cheaper, a cheap trick unimaginable in France. So USA meat is less good quality than French meat, its lower price reflecting in part the lower price of water. other ways to improve the PPP of American meat are antibiotics and hormones and lower quality feeds, the first two are, unlawful in Europe)

I added above my more drastic objections.

P/S 3: The cheating on PPP affects primarily international comparisons. The cheating on other major economic such as the CPI affects more directly daily lives of average citizens. Using the pre-1980 inflation calculation method, the Consumer Price Index would be over 9 percent. Today’s reported, official CPI, is around 2 percent.

The government gets there by using a a basket of goods that does not match the real-world cost of living. For example, health care costs are one sixth of GDP. but only one-sixteenth of the price index.

Subdued reported inflation enables the Fed to rationalize its easy money policy (which profits big banksters and their derivatives), and it allows the government to reduce payments to the common People (such as social security). It also allows to overestimate reported real GDP, higher reported real income and higher reported productivity.

***


Artificial Turf At French Bilingual School Berkeley

Artificial Turf At French Bilingual School Berkeley

Patterns of Meaning

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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