Posts Tagged ‘Keynes’

Wisdom Not An Itch, But Economy Hitching Dark Side, A Gangrene

September 13, 2015

Is Philosophy Just An Itch? Far from it. Even if it were, as Wittgenstein had it:

“Philosophy hasn’t made any progress? – If somebody scratches the spot where he has an itch, do we have to see some progress? Isn’t genuine scratching otherwise, or genuine itching? And can’t this reaction to an irritation continue in the same way for a long time before a cure for the itching is discovered?”

It is not true that philosophy asks always only the same questions, and it is not true that philosophy has not progressed in 3,000 years.

Instead the opposite is true. contemporary with Socrates was Xenophon, who named and defined “Economics”. Xenophon was student and friend to Socrates, a writer, historian, soldier, general, and retired as a horse breeder.

Krugman Is A Philosopher, He Rules World. But Who Pulls His Strings?

Krugman Is A Philosopher, He Rules World. But Who Pulls His Strings?

[Paul Krugman, appropriately surrounded by the Dark Sides.]

Paul Krugman is one of the world’s most respected – and most feared – economists of our time. Illustration by David Simmonds.” –Handelsblatt which adds: “Many think the U.S. Nobel Prize winner is the most influential economist of our time and a leading voice on the left. But many of his major ideas are controversial. And rightly so.”

Those familiar with my disagreements with Krugman know that we differ philosophically. Our differences are mostly about finance, banking… And especially believing that, if only bankers had even more money, through Quantitative Easing, the world would become richer, fairer, and more comfortable. That is anathema to me, for many reasons, including the fact I do not trust too much power in too few hands, whatever the reasons evoked, or even if one calls these people, bankers, and Obama admires them very much.

Philosophy named and defined much progress.

Behind all and any empire is an economic organization backed up by a philosophy. Darius, founder of the Achaemenid Persian empire, changed economic organizations very quickly, according to circumstances, , from military to command and control, to building the world’s first fast road system, to libertarian capitalism.

It is possible to argue that the Greco-Roman empire failed, because it failed PHILOSOPHICALLY. Namely, its philosophy failed. It failed because the (Macedonian) military leaders got imprinted on the erroneous, despicable, and lethal philosophy of their friend Aristotle, itself all too inspired by Plato, Socrates, and other golden youth, or their fellow travellers.

One can view the Middle Ages greatly as a struggle against much of Aristotelian philosophy: not just against Aristotle’s physics, which was egregiously wrong, but also against his Ethics and his, related, preferred theory of government. Aristotle embraced dictatorship, also known as monarchy, hence theocracy.

In Socrates’ times, democratic institutions were, in many ways, brutally primitive and inappropriate for sustaining the Athenian Republic. These brought not just the death of Socrates, but were decisive to bring the defeat of Athens in the Peloponnesian war (which nearly brought the annihilation of Athens, and certainly an eclipse of democracy for more than 2,000 years). The People’s Assembly had decided to massacre entire populations (Melos), and brought hatred against Athens.

Much of Socrates’ work was about improving the Athenian democracy, and many of the philosopher’s critiques were addressed during the Middle Ages, by inventing new institutions.

So there has been progress in philosophy, and also considerable social and political progress in implementing progress in wisdom.

We need more. Behind Krugman’s vision of the world, lays a benign, naive trust in human beings benevolence. At least, that’s the excuse.

Friends, Not To Say Lovers Of The Same Values. How Far Are We?

Friends, Not To Say Lovers Of The Same Values. How Far Are We?

Instead, I go further than “French Theory“. French Theory, generalizing Nietzsche’s approach, is suspicious of all and any institutions. I propose to remember what the Marquis De Sade implicitly proposed: those who take, those who are entitled, those end up being able to take decisions on behalf of the many, are, intrinsically, moved by the Darkest Side. Even if they did not start this way, the stress they are subjected to, insures that they end up that way.

Yes, Krugman is a philosopher, in the sense that his work, and advice, and popularity among, thus, power on, the mighty, depends upon his philosophical positions. Yet philosophers to the Dark Side, by their very presence where they are, embrace it.

This is not all just words. I love and respect Paul Krugman. in some ways. However, contemplate this: “Enron, a notorious corporation which conspired in organizing energy shortages in California, later to collapse in scandal and bankruptcy, employed Krugman. Paul’s fee? $37,000 for three days work. It provoked outrage. Wasn’t this excessive?. Mr. Krugman used his column to respond: not at all, he wrote. At the time his fee for a one-hour talk was $20,000. Enron got a deal.”

And the worst? Paul Krugman is very small fry, in the plutocratic world, as far as income is concerned. Donald Trump recently pointed out he “knew hedge fund managers. They pay no tax.” And some of those earn billions. General Electric got (60) billion dollars from the Obama administration, paid no tax for years, and then proceed to buy its French competitor, Alstom. Even the European Commission found that not kosher (although the plausibly secretly compensated by huff and fluff ,French government had approved).

Krugman at some point proclaimed himself the “lonely voice of truth in a sea of corruption”. The worst? It’s true. Because Krugman had dared to say the Obama administration was soft on punishing Wall Street after the 2008 corruption affair (the so-called “crash”), he was not invited to participate in said administration of the useless and redundant (as plutocrats connected to the so-called “Deep State” take all the decisions).

Handelsblatt: “Somehow Mr. Krugman’s fury keeps on growing. The source of this anger may be the man’s greatest enigma, since in fact worldwide there has never been as much Keynesian intervention as there is today…”

The answer to this, Handelsblatt, is simple: the crisis is getting ever worse. To the point the spectrum of war is rising. Even the Pope, noticed this.

Handelsblatt: “Since the crisis began, the largest central banks have flooded the world economy with liquidity, and brought their base rates close to zero. The governments of the industrialized world, with the exception of Germany, are still running huge budget deficits. They have put together enormous rescue packages, partly to rescue the banks, partly to bail out bankrupt states, partly to invest in infrastructure.”

Well, and this is my main difference with Krugman, rescue packages were all about the (“PRIVATE”) banks, and they bankrupt(ed) the states. To correct this, the entire banking system needs to be completely overhauled. In first approximation, the spirit of the reforms of president Roosevelt, ought to be re-introduced.

In Great Britain Jeremy Corbin, an anti-dictatorial (anti-monarchist) was elected to head Labor. Tony Blair, one of the world’s most corrupt politicians, ever (Bliar gets money from various dictator, including that of Kazakhstan) suggested that: “those who say their hearts are with leftwinger Jeremy Corbyn should ‘get a transplant’.

Darius, like the Incas, like Diocletian’s Rome, or the Tang in China, or the empire of the Franks (which mutated into the “West”), or Themistocles Athens, let alone Stalin’s USSR, or today’s China, let alone the mercantilist USA, show that the primary actor, and author, of the economy is not the little capitalist, but the massive state. Handelsblatt claims not to understand this, and calls Krugman a fool.

However, the USA’s government institution revealingly known as the “Fed”, created more than 13 trillions (yes, that’s a t: trillion) dollars of money to inject in the economy, and the European Union, less than two trillion. And yes, that’s a problem: too much money chasing too few investment possibilities. So what ought government to do? Create more investment possibilities. Titanic investment program. As Darius did with his Royal road network. Now the Royal Road ought to lead to Mars. And the Quantum Computer. And Thermonuclear Fusion. And the Space Elevator. And a research program to fight aging (a major economic, not just military problem). Those who don’t want progress get regress, not to say egress.

Imagination, ladies and gentlemen, is more important than austerity, and not just in economics.

Patrice Ayme’

Sometimes ALL YOU NEED IS WAR: West Country Men & The Like

March 7, 2015

“All You Need Is Love” is worse than hypocrisy. It is the wrong strategy, especially in the worst cases:

War is not fashionable among moral exhibitionists. However, as the Romans noticed more than 2,000 years ago, those who really love peace, prepare for war (Si Vis Pacem, Para Bellum).

After the dictatorship of Kaiser Wilhelm II suddenly attacked the world on August 1, 1914, Earl Grey the British Foreign Minister, went to the Commons, and made an excellent speech about joining the war to defend civilization. Bertrand Russell, the philosopher, understood none of it (because like Keynes, or the Kaiser, Russell was on the plutocratic side).

War can be a horrible thing. Even for warriors:

HMS Queen Mary Exploding @ Jutland Battle. Traumatizing Churchill?

HMS Queen Mary Exploding @ Jutland Battle. Traumatizing Churchill?

[Explosion of the British battle cruiser “HMS Queen Mary” during the Battle of Jutland on 31 May 1916. Of the 1,266 crew members, only 20 were rescued. Several British capital ships exploded within minutes during a formidable artillery exchange; the top British admiral in the leading battleship quipped: “Something seems to be wrong with our bloody ships, today.” However, the Royal Navy prevailed, and the German Navy never confronted it again in force.]

Churchill was a serious warrior. It’s not just that he had an anchor tattooed on his arm. He was involved in the Boer War, and was Lord Of the Admiralty (head of the Royal Navy) in World War One. The short of it: fiercely led by Winston, the Royal Navy kept the Kaiser’s Fleet bottled in Germany, and when it tried to come out, it was defeated.

That strangled the Prussian fascists’ war economy, although our frienemies the plutocrats of the USA sold, for a good price, all sorts of war materials to the world conquering Kaiser, through the hypocritically “neutral” Netherlands.

France and Britain were furious, but could not do anything, as the largest ethnic group in the USA was that of Americans of German descent (there are more of them than people of partly sub-Saharan descent, to this day, about 50 million).

France and Britain were not too sure what fancy would catch next their rogue child the USA. After campaigning on the theme “All We Need Is Peace”, president Wilson, ex from Princeton University, apparently felt declaring war to fascism was a better deal, and duly came to the rescue of victory, so it could be stolen from those who had fought the war.

***

WORLD WAR ONE: A PYRRHIC VICTORY FOR FRANCE AND BRITAIN:

Pyrrhus was an Hellenistic adventurer, a plutocrat, a self-styled king, whose services, as an excellent general, complete with an army, were for sale. The Greek cities of Southern Italy got the bad idea to recruit him (it was a bad idea, because the better idea would have been to negotiate with the Roman Republic).

Pyrrhus used elephants and the best professionally trained army, He won his battles against Rome. However, he noticed (paraphrasing):’A few more victories like that, and I will have lost the war’.

The USA won World War One. Nobody else did.

Both France and Britain came out exhausted from World War One. About half of French men had been killed or wounded. 27% of the 18 to 28 year old French were killed in combat. France suffered the highest proportion of dead and wounded of all the powers involved. (Except for Serbia, which lost 33% of its entire population, after the Austro-Hungarian army surged back and forth through Serbia, like a tsunami.)

The British upper class, which leads the country, was full of contradictions: after all the Kaiser, just having fled to its accomplice the Netherlands (naturally) was the grandson of Queen Victoria.

Lord Keynes, a top British diplomat, and money shuffler, came out with a piece of racist trash, “The Economic Consequences of Peace”, which argued that, considering what he viewed as the inferior racial status of Poles, dismembering the imperial exploitation-occupation system set-up by German plutocracy would have an adverse effect on economic activity. (an argument ignorant intellectuals of Jewish descent such as Paul Krugman keep on brainlessly repeating, not knowing they approve Auschwitz, doing so!)

The French leadership was cynical. Blocked by the Anglo-Americans, the French Republic could not obtain the guarantees it needed.

All France got was part of her property on the left bank of the Rhine, and the heart of France (on the grandest historical scale, the entire west bank of the Rhine was Gallic, or, and Frankish; the various partitioning of the left bank were just tricks to enfeeble mighty Francia: even now, with the entire left bank, France would be 100 million strong…)

So France came out of WWI not sure of her allies, and Britain not sure of herself. Only the USA was doing great, guided by pragmatic deal making, and disposing of Germany as if it was its private reserve.

Dr. Schacht, who could be viewed as an agent of JP Morgan (not just the bank, but the man), launched the “Second Reich” (“Weimar”, not really a republic) into hyper-inflation, to pursue war against France by other means. The French reacted by invading (something Krugman, the Jew who has learned nothing important, still finds “unbelievable”). Etc.

***

ANGLO-AMERICAN COLLABORATION WITH NAZISM:

Churchill himself changed enormously. Churchill was pro-Nazi to the point of threatening the French Republic in 1929 with the… Royal Air Force… If the French kept of harassing Germany’s Second Reich (official name of ‘Weimar’!) about its secret re-armament, which violated the Versailles Treaty.

To avoid French eyes, Germany had been re-arming using not just British pets such as Portugal, but even the… Soviet Union; this sorts of situation puts to rest the theory that all there was wrong about Germany was Nazism: at the time, in 1929, the Nazis were not important as a party… But Nazi MENTALITY was already ruling. Actually it had started to rule, even before Hitler was born, as reading Nietzsche’s cogent critiques show all too well…

Churchill himself was Anglo-American (one of his parent was American, the other British).

***

WEST COUNTRY MEN, The Essence Of The “Anglo-Saxon” Spirit:

The exploitation spirit which reigned over Britain and the USA is very old. It was launched in full by the “WEST COUNTRY MEN” of the Elizabethan Age.

Initially Elizabeth I, fully the daughter in spirit of Ann Boleyn and Henry VIII, got the idea of endowing such men with immense powers, to go, pillage and exploit, using military might that came in handy to defeat the Gran Armada of Spain. It worked.

The same spirit, and the same immensely wealthy investors, were endowed with full powers to apply the same terrifying methods in Ireland, then North America. It worked splendidly.

The West Country men were an ensemble of wealthy individuals in Elizabethan England who advocated the English colonisation of Ireland, attacks on the Spanish Empire, and profitable overseas colonial expansion. The group included Humphrey Gilbert, Walter Raleigh, Francis Drake, John Hawkins, Richard Grenville and Ralph Lane. Several of these prominent figures originated in the far southwest of Britain known as the Westcountry, particularly associated with the sea ports of Devon including Plymouth (notice that’s where the Mayflower came from…)

***

That spirit of homicidal exploitation of the West Country Men, lives to this day: see the private armies people such as Bill Gates invest in secretly, through… Monsanto; the strategy was used in WWIII, with the Flying Tigers, in Vietnam, and recently in Iraq, by Bush, with Black Water/Xe/Academi… the private army now secretly financed by Gates).

This went on until 1936 (in 1935, the British gov. organized a “Naval Treaty” with Hitler, which violated the Versailles Treaty). Hence the fiasco of Munich in 1938, when France was made understand she had to go alone against fascist Germany and Italy (this would have allowed the plutocratic Anglosphere to accuse France again of wanting to attack Germany all the time).

***

BRITAIN UNDERSTANDS IN 1939 THAT KEYNES WAS WRONG:

The UK aligned itself behind France only in 1939, after Spain fell to Hitler’s pet, Franco, and after Hitler invaded all of Czechoslovakia (and not just the Sudeten land)…).

Churchill turned around completely by 1939… But then he became hysterical and did not want to wait for the new planes to reach mass production (he wanted to mass produce obsolete types).

However, Churchill did not allow the assassination, or, let’s say, execution, of Hitler (many top German generals would have been happy to help, and had actually contacted Brits and Americans… who then betrayed them!)

That was a moral mistake. Maybe. Although it could be argued that, differently from World War One, Germany needed a thorough spanking as a civilization, and only being completely crushed, and literally decimated in May 1945, was what the doctor ordered, to express the Nazism out…

***

ALL YOU NEED IS MIND:

“All You Need Is Love” was, with all due respect, mental masturbation of the worst type.

The Beatles (Lennon, PBUH) put “All You Need With Love”) to the sound of the Marseillaise, playing in the arms, the embrace, of the Pitts, Prime Minsters, father and son, who launched a 25 year war against “Liberty Equality Fraternity”.

The Pitts were opposed in Parliament, but their extreme anger at France carried the day, and led to a generation of wars, all around Europe, and the death of more than ten million.

So John Lennon, without knowing anything about it, sided with the enemies of the Marseillaise, and thus for the partisans of that 26 year war, which was a terrible mistake, as Lloyd George, Prime Minister of Britain, admitted a century later.

Lennon should have read more. Getting the Member of the British Empire medal, was not all there was (he realized this later, and returned his MBE).

Make no mistake, I love the “All You Need Is Love” song, but I despise, and condemn the message.

As I have explained in all directions, Britain was certainly at fault in 1789-1792. As the British armies and Navy, plus the Prussians, Austrians, Russians who invaded France at the call of British plutocrats, invaded France, All The French, And Humanity, needed, was the Marseillaise, and spill the blood of the invaders as happened at Valmy (September 21, 1792) and soon Toulon…

***

WANT GOODNESS? AVOID HYPOCRISY.

Everybody wants goodness to triumph, to the points that some of the greatest tyrants of history, such as Saint Louis, Luther, Louis XIV, Napoleon, Lenin, Stalin, Mussolini, Hitler, Mao, spoke of little else.

Homo is the altruistic animal.

However, it’s also the Dark Side animal. And, to a great extent, the more altruism, the greater the population, and, from this rich soil, the greater the Dark Side.

How to optimize goodness then become a logical problem, even for the most loving minded.

A good rule? Avoid hypocrisy. It gets in the way of truth, thus logic, thus efficient altruism. And make no mistake: loving plutocrats will not help. Ignoring them will not be much better, as they will not ignore you. To get out of the fall into plutocracy will require war. Jihad, as the Islamists say.

Patrice Ayme’

France Versus Dollar Justice

June 4, 2014

WALL STREET JUSTICE: USA BANKS RULE, LET’S KILL OTHERS

In Brief: The attack of Manhattan “Justice” against French bank BNP is reminiscent of the sanctions of the USA against France in 1939… because France had declared war to Hitler. With “Justice” like that, no wonder Putin does “Justice” himself. Morality: If there is no Justice, but Wall Street Justice, it’s time to strike back at the empire.

***

The world is complex, so is human society, history, and explanations thereof. The Wall Street Journal condemned, once again, stridently, the sale of French Mistral ships to Russia. It forgot to mention that the USA has several times greater business with the Russian military-industrial complex. That’s propaganda, for you.

I sent a comment tying the sale of the Mistral up with the extravagant attack of Manhattan “justice” against the French bank BNP. It was censored immediately. As the sheep say, there are no conspiracies, just, stuff happens.

If Around The USA Beware About Who Is Lurking In Your Hotel Room

If Around The USA Beware About Who Is Lurking In Your Hotel Room

Thomas Piketty, a young French economy professor, made a devastating attack against the Wall Street plutocratic system in his book, “Capital in the 21 C”. The goons in Manhattan reply with calling for an 11 billion dollar fine to bankrupt BNP, just because they can (BNP violated no European or French laws, just the hatred the government of  the USA has for Iran and Cuba).

It’s time to arrest the respect those goons get. They are not any better than the clowns around Putin. I will actually that they are worse, since, as Putin himself would point out, they are more subtle. (Meanwhile Piketty ought to be careful when visiting the USA)

The presidency of Barack Obama has been characterized by a lack of punishment of the bankers that had organized the heist of 2008. How could Obama do anything? Supposed liberals such as Krugman have just been clamoring for more money for the banks: that’s how the left is defined in the USA. The rest of the USA, or at least, the USA’s Main Stream Media, is on the right of that. Giving money, ever more money, trillions of dollars in monetary base or bond buying (= Quantitative Easing, Twist), in the USA, defines the “left”.

Obama has been cracking on bankers, but only Swiss bankers. Switzerland’s banks destruction became a golden opportunity for the banks of the USA, which can now manage thousands, not to say hundreds of thousands, of new clients.

The USA is against tax havens: that’s the law. Overseas tax havens, that is. Slight problem: the USA is, by far, the world’s largest tax haven.  Delaware is, by itself, the world’s largest tax haven state, as USA Den Of Thieves pointed out. The USA legislative system is an enormous tax haven for the hyper rich.

So why so upset that BNP conducted some transaction overseas between overseas clients, using the world’s reserve currency? That’s just a pretext. BNP is one of the two largest European banks. It’s also one of the two largest banks in Europe, and one of the top five dollar clearing banks, worldwide. As the dollar is the world’s reserve currency, gigantic reserves of dollars are overseas, never to transact through regions directly controlled by the USA.

BNP had business in Iran for generations. But that’s the point. When the USA applied sanctions on Iran, it forced the rest of NATO to do the same. That devastated French industry. In particular the car maker Peugeot, the second car maker in Europe at the time. It devastated no American industry.

However, what is the difference between Iran and Saudi Arabia? Women cannot drive in Saudi Arabia. Yet, they can in Iran. Clearly a crime, in Washington’s eyes, if it’s done in a Peugeot. So Washington struck Iran, and thus Peugeot, with sanctions.

American economists such as Paul Krugman, hopefully lying through their teeth (the alternative, that they are really believing what they are saying, being worse), have claimed that the fact that the dollar is the world’s reserve currency presented no economic advantage to the USA.

Why this will to destroy France? Because, if France is on her knees, so is Europe: the European Union, re-instatement of the Imperium Francorum, is mostly a French multiplier, and is built around the principle of 1789, the FRENCH Republican Constitution of 1789 (Liberté, Égalité, Fraternité), not the Constitution of the USA of 1789 (We The People of the USA, whatever that is, friendly to all sorts of discrimination, extermination, exploitation and slavery).

OK, I am exaggerating a bit. The master does not want to destroy the slave. The Master just want the slave to abide by His law. The law of the strongest. Cyrus Vance, a francophobe in Manahattan, is the strongest. His Law is the best. Vance knows well that, this French spirit of 1789 is counter-attacking. He needs to fight back.

So he caged DSK, head of the IMF, who had the impertinence of raising hundreds of BILLIONs dollars of SDR. A word on this here, as it goes to the ugly heart of the USA centered global plutocracy.

Under Strauss-Kahn, a senior, famous economy professor, the IMF’s pursuit of financial stability called for a new world currency to replace the dollar as the world’s reserve currency. An IMF report from January 2011 called for a stronger role for special drawing rights (SDR), to stabilize the international monetary system. For most countries, there would be many serious advantages in switching the pricing of certain assets, such as oil and gold, from dollars to SDRs. The BNP affair is a case in point.

For Manhattan “Justice” gangsters, the call for SDRs was a call for the end of Manhattan, New York, Wall Street.

DSK had followed Keynes’ idea (Krugman is anti-Keynes about this, unsurprisingly). To foil Keynes, the head of the financial commission at Bretton Woods, the American goons substituted false documents at the last minute. This forgery is how the dollar became the world’s reserve currency.

And how Wall Street has now a weapon to destroy European banking.

Symbolically, only one man was criminally prosecuted for the 2008 financial heist. A lower employee of Goldman Sachs. A French citizen, of course. Tragedy is emphasized by comedy, to make it more blatant, that, whatever it is, it’s the fault of the French.

My advice? It was important to go all-out to blunt Putin’s Pluto grab. But one should remember one ought to crush infamy (“Écrasez l’Infâme”; Voltaire signed it: Ecr. L’Inf.)

This, this BNP affair, is even worse than Putin. In a way, it is the sort of mood and chronic conspiracy, that caused Putin to act the way he did.

The old Putin, say of 20 years ago, just as the old Yeltsin, was naïve: he really believed the free market propaganda oozing from Harvard, and other austere American institutions. Then Vlad found out how the sausage was made. He decided to make his own. (Hitler went down that road too, sort of.)

The Russian plutocracy, around Putin, is just a subset of the global plutocracy that individuals gravitating around Wall Street feel, and think that they direct and control.

Thus, it is even more important to smash the power grab of the USA’s plutocracy. Putin made an error, a grave error. He has to reverse it. However the system of exponentiating greed around Wall Street has been messing with the world, big time, for EXACTLY a century. (As I have explained, the White House excited the Kaiser to go to war against France in 1914, and then proceeded to make a fortune, feeding and arming the Kaiser.)

When I wrote “Mistral Blows Hard”, I argued that it was smarter to give Putin his amphibious, French made, aircraft carriers. Now, I would argue, it’s a necessity.

Be it only so that Putin can land his “little green men” in Manhattan, and go arrest the criminals there who call themselves proponents of “Justice”. When extirpating cancer, one has to exterminate its stem cells. This important, recent discovery in oncology has a morality of its own, that carries far, and wide.

Truth ought to look better than any of us. And that’s:

Ecr. L’Inf.

Patrice Aymé

Synthesis Found: GOVERNMENTALISM WORKS.

August 13, 2013

In “Synthesis Lost” the honorable Paul Krugman courageously ponders the unthinkable:“you have to ask why, if markets are imperfect enough to generate the massive waste we’ve seen since 2008, we should believe that they get everything else right. I’ve always considered myself a free-market Keynesian — basically, a believer in Samuelson’s synthesis. But I’m far less sure of that position than I used to be.

Indeed, the economic beliefs that built-up civilization, East or West, rested on a completely different notion: the irreplaceable genius of government funded & commissioned Public Works.

Pont Du Gard: Not built By The Free Market

Pont Du Gard: Not built By The Free Market

The aqueduct above brought water to Nimes (Latin Nemausus, local Celtic god).

The first three aqueducts built into Rome, about 23 centuries ago, later carried 400,000 tons of water into the city, each day.

The first one, the Aqua Appia (312 BCE) was one of two major public projects commissioned by the censor Appius Claudius Caecus; the other was a strategic, super strong and super durable road between Rome and Capua, way south.

Eleven (11) giant public aqueducts served Rome at her peak, some piercing mountains through tunnels. Although extremely expensive to build and operate, the water the aqueducts brought to the public was free. So were the uncountable baths found in all Roman cities (many had curative properties… Thus, RomanCare was free!).

Rome was not called a Republic for no good reason.

That Republic worked as long as the law limiting wealth absolutely was enforced; as I have argued, globalization was the undoing of the law first, and the republic, next. A vivid lesson for today, when the situation is pretty much the same.

Don’t try to explain the relevance of Public Works to the economists who helped bring the present Greater Depression, slowly morphing into a Great Degeneration. They will look around with boiled cod eyes.

In “Colbert Good, Keynes Not So Smart” and in “To Save The World, Please default!” I have attacked Keynes as one of the creator of the vengeful Nazi mental system and a promoter of the powerlessness of the plebs (I may fire another blast against him, and his admirers some day soon). “Keynes” does not deserve to be honored in economics. All the more as the correct parts of “Keynesianism” have been known ever since there are serious governments, and they erect pyramids.

Here is a proof:

Grand Canals Of China: Built By Government

Grand Canals Of China: Built By Government

The Grand Canal Hangzhou-Beijing, 1,800 kilometers long,  was built from 581 BCE to 1290 CE (when the Mongols/Yuan finished an elevated section to reach Beijing, using locks, the first summit level canal in the world). At some point during the Sui dynasty, 14 centuries ago, over a 6 year period, 3 million worked on the Grand Canal.

Looking at this, one understands better why China has built a gigantic Very High Speed Train network. It’s the very Chinese thing to do.

The Middle Kingdom found, all by itself, just as Egypt, the Middle East, Persia, Roma, and Europe (starting with Francia and the re-emerged Italian Republics), that only public works can achieve certain tasks. The most important tasks.

Grand Canal: Public Utility For 26 Centuries.

Grand Canal: Public Utility For 26 Centuries.

So much for the concept “Keynes”. Now for eliminating the so-called “free market”, as a most fundamental concept. (In a follow-up essay, I will explain what allows the free market in the first place,”governmentalism“).

There is an entire religion around the free market. It is immodestly compared to god, complete with his ”invisible hand“. Adam Smith, a student of the French physiocrats, had mentioned the “invisible hand” no more than a handful of times in his entire works. Wall Street made a cult of these two words… Yet, Adam Smith was a government official, and no rabid free marketer. Some of the French economists had previously stridently, and correctly, called for freeing the markets… but for excellent reasons. However:

***

THERE IS NO REALLY FREE MARKET:

This is a basic, but fundamental observation. The free market is a carefully contrived illusion, a myth. Plutocrats have recently exploited that myth, to make their hands invisible as they manipulate society into submission. (That’s why the plutocrats want us all to worship the ‘invisible hand’, so that we will worship their invisible influence too!)

As long as there were ferocious Marxists all over to bark naïvely about “capitalism”, plutocrats had to stay honest enough to prevent a critical mass of critics to not go over to the other side. But, when Stalinism collapsed, the ex-USSR embraced the Harvard version of plutocracy (not as bad as Hitler’s, but still pretty bad). On the other side of the Amur, cynical Chinese plutocrats embraced all capitalists willing to change from their pesky, expensive workers at home. Soon enough, the German Socialist Chancellor introduced tough reforms of the German welfare state, making it distinctly less comfy… And it, literally, worked!

The leftists, the progressives, the socialists, the liberals and the humanitarians were thrown in total confusion and spastic despondency by this collapse of the idols. Still are. (Hence Obama’s feverish clinging to Warren Buffet and Summers).

All the more as a heavy propaganda from the plutocrats, pouncing for the kill, insisted that the ‘free market’, namely themselves, was everything. In a word: god.

Yet. There always was no free market, and there will never be any free market. The free market is a playground set-up by the government, always. That’s done through various laws and regulations, and the exchange of personnel.

That became very clear in 2008. The ex-chairman of Goldman Sachs, Sec. of Treasury that G.W. Bush and Barack Obama had left in total control, Hank Paulson, went on his knees to beg Nancy Pelosi, a democrat in control of Congress, for nearly a trillion dollars to save all the largest banks of Wall Street (we are now, with “Quantitative Easing”, and counting a similar aid in Europe, well above ten trillions!).

Pelosi gave the People’s money to Paulson.

Yet that was not hers to give. In a democracy, people would have voted to see if they wanted all their money to go to the richest owners in the land.

Left unsaid was the fact that the richest people in the land had lost all their money to the… richest people in the land. To themselves! It’s a case of insurance fraud: plutocrats stole the loot, and then asked the people to pay for it.

Pelosi gave all the People’s money to the richest, because she is an immensely rich woman, and got there by being extremely kind to families controlling assets 100 times (of more) her own wealth. By being kinder than ever, to the powers that be, no doubt her family will prosper, further and better than it would otherwise.

The entanglement of plutocracy and supposedly democratic politics is a worldwide phenomenon. For example Pompidou, director of bank Rothschild in France, was selected as Prime Minister by president De Gaulle, and then later succeeded him. In Britain, past Prime Ministers Thatcher, Major and Blair, were handsomely rewarded, no doubt to encourage their successors to be just as kind to plutocrats. Clinton, a simple man driven by basic instincts, was little more than the puppet of Goldman-Sachs’ Robert Rubin, and then his assistants Summers and Geithner (all of them plutocratically connected, just as Susan Rice, a fixture of plutocracy under Clinton, now Obama’s National Security Adviser.).

In the Obama administration, most personnel with a say in economics are young multi-millionaires shuttling back and forth between White House, giant banks and Wall Street; this corruption is even considered an objective criterion of seriousness. It is reproached loud and clear to Janet Yellen, the very qualified, and prophetically accurate, Vice President of the Fed,  who ought to be the obvious successor to Bernanke, to “lack experience” at being such a corrupt double dipper!

There is no such a thing as an economy independent of the government. The government rules. The real question is who is ruling the government. (In the USA, the likes of Susan Rice rule, for now more than 20 years, in her case; she was only elected by the plutocracy, but that’s good enough; Summers, just as unelected, was in the White House already 32 years ago…).

In a democracy, We the People rule. In a plutocracy, an oligarchy of admirers of the Dark Side rules, more or less invisibly. That oligarchy will use whatever means to stay in power, and their impudence knows no bounds. As Anne of Austria, queen and regent of France, sneered to the head of the Paris Parliament during the Fronde:“Do you believe this is a republic?”

Question, Ms Anne of Austria:”When and how did it stop being republic?” Answer: well, insensibly. Just the way a frog is being boiled by rising the temperature slowly. And that is exactly what today’s plutocrats, who hold the government, are doing.

Banks using leverage insured by the government are not private, but agents of the state. Indeed, they could not exist without that insurance and implicit back-up (“the lender of last resort”). They claim to be private, so that the few individuals who manage and “own” them can grab what are, truly public funds and public profits.

Jamie Dimon, for example, is a rogue agent of the private-public financial system. The government gave him the huge bank Bears-Sterns in the famous “Jamie deal”.

A number of private mercenaries feeding at the teat of the Public are the dark lords of that system. While of course denying that this teat is a teat, or has any milk, or value.

(That’s why plutocrats love Summers; because he is so dark; the richest banks have been given eight trillion dollars, in the USA alone; the problem Summers will have to solve is how they keep most of that while making it appear otherwise; the trick of paying TARP with QE may not work again…)

There is no such a thing as an independent financial system when the fractional reserve system is used. Finance is an instrument of the government, at least proportional to the leverage used. For example with 3% reserve, one can view a bank as 97% government (and 3% private!).

Why? Because if there was no governmental back-up, people who have deposited money in the bank, understanding that the bank has lent 30 times the money it really has, would rush to recover their money. In hours, the bank would have zero reserve, and then would be bank-rupt.

Hence a new synthesis has to be founded, with these truths made central. I call it “governmentalism”.

Grand Canal: No Mountain Is High Enough To Stop The Government

Grand Canal: No Mountain Is High Enough To Stop The Government

It’s nothing new.

***

Patrice Ayme

To SAVE The WORLD, Please DEFAULT!

September 14, 2011

GRAB CAPITAL & RENT BACK FROM THE CONNIVING PLUTOCRATS!

[Sep. 14, 2011.]

***

Abstract: The Greater Depression keeps unfolding, propelled by the deliberate stupidity of the best leadership plutocracy could buy.

In constant dollars, the income of men in the USA has fallen to the level of 1978, shortly after the USA started its covert, but massive attack against the republic of Afghanistan. This is not a coincidence: the unconscionable instrumentalization of Muslim fanatics to destabilize a progressive republic so as to grab its resources demonstrates that various plutocrats had seized control of the USA to an extravagant extent by the mid 1970s (under the democratic administration of Saint Jimmy Carter, worthy follower of the morally insane crusader Saint Louis).

This stagnation of income lasting 33 years is unrivaled in any 33 year period ever since the American English colony was born. Thus, it’s a new phenomenon.

There were never three decades of stagnating incomes in English America, including in any period straddling the so called French & Indian Wars, the Independence War, the Secession War, and the Great Depressions of the late 19th century and that of the 1930s.

This remarkable stagnation confirms that the present Greater Depression is worse than the one of the 1930s. Indeed the GDP graph is now doing worse in Britain than it did during the 1930s. And we are just getting started. Why? Why just getting started? Because the leaders of the West have adresseds none of the gathering causes of the depression, yet. (By contrast, FDR, ordered a flurry of astounding decisions in the first few days of his presidency in 1933.)

Can we get out of the unfolding disaster? Yes, with judiciously implemented inflation (as Turkey, Argentina or China have decided to do, so far successfully) or with default made so carefully that it will defang the plutocracy (the occasion presented itself in 2008 and 2009, but Bush and Obama declined to do so, although it was their fiduciary duty to do so). Once plutocracy is defanged, some of its contrived connivances, such as plutocratic globalization enabled by plutocratically friendly localized laws in tiny places, the tax havens, could be easily addressed.

A good place to start to dismantle plutocracy is Greece. The only reasonable resolution to the Greek sovereign debt crisis, is actually to default in a well organized, carefully measured manner (I have long advocated strategic default as a panacea since at least 2008).

Letting Greece out of the Euro, as dollar supremacy propagandists insist Greece should do, would be an utter catastrophe, for all concerned, except for U.S. supremacists. A Eurozone exit would be especially a disaster for the Greeks, contrarily to what Paul Krugman pretends, and the reasoning is so elementary, that Krugman ought to be ashamed of himself. Massive devaluation would solve nothing for Greece. True Greece lives off tourism, and that would improve, but Greece has to buy everything outside…

And especially Greece has to buy all its energy from outside sources. Energy is something the economy is fundamentally about (a notion which eludes most professionals paid for telling economic lies, and quite deliberately so).

Greece’s situation is completely different from that of demographically tiny, resource wealthy Iceland, the terrible financial crisis of which is still unresolved, especially in the matter of outstanding bills and criminal activities still unrevealed, and unpunished.

Iceland is often brandished by the enemies of the euro as a demonstration that countries which have their own currency do better. However Krugman and other europhobes always forget the few facts I just mentioned, when they laud Iceland and its brazen, 100% default (so far), which caused a major, still unfinished crisis.

There are many types of default, indeed. The sort of default which happened in Iceland was very peculiar, quite terrible, it is not duplicable, and I do not recommend it (and, as I said, it’s not over!) When I say that Greece ought to default, I speak of a completely different sort of default. Quite different from the grand theft which occured in Iceland. (A theft which will be fixed someday, a detail Krugman does not seem to be aware of: there are actually assets in Iceland set aside to reimburse the European governments which paid for Iceland.)

Why so much hateful hysteria on the part of the plutocratically connected Americans against European institutions? Because American plutocracy is collapsing the USA, and it is trashing around to keep controlling the world reserve currency, just as the one who drowns grabs whatever and whoever.

Paying fossil fuel in euros would be the end for the USA, as it would find itself in a similar situation to that Argentina found itself in, a century ago. However, and paradoxically, it’s in the interest of the USA to keep the euro high enough to make the European Union industrially uncompetitive. The goals are opposed, so the situation is unstable.

Default here and there would precipitate instability, overall. However, that would be a good thing, after the fright. It would allow to put banksters where they belong: if not in jail, then at least to pasture, after repossessing the property they connived to steal. In other words, high time to do what was not done in 2008!

The real truth is that Greek debt is only 300 billion dollars, a fifth of the subprime debt in the USA in 2008. So what’s the real problem? Well, Spain, Italy, and, soon, France. Of course a French default of some sort would be a world cataclysm. But a cataclysm is what is needed to get rid of the predator on our back, the world plutocracy.   

So let’s bring it on! Better this than Greater Depression forever.

***

***

GREECE IS EVERYWHERE, WE ARE ALL GREEKS:

Some will say: “Europe again? Who cares? Is not that the OLD continent?” Well, as I will show, we, all of us, who own anything, own some of Greece. Even Americans, all Americans, own French and German banks, and, thus, Greece.

Second, Europe in the biggest socio-economic sense is nearly one billion people. Yes, some lunatics, like the Swiss, speak delusionally as if they were not in Europe. In some metaphysical sense, obviously, because Switzerland occupies a third of the Alps, a mountain range installed in the exact geographical center of Western Europe. As I predicted in the past, last week the Swiss National Bank pegged itself to the euro. The SNB promised to buy “unlimited amounts” of Euros each time it takes less than 1.20 Francs to buy a Euro. In other words, now Switzerland has jumped in the Eurozone.

Is Suisse not getting its orders from Washington anymore? Is Krugman going to cry a river? And Polanski is going to receive a prize in Zurich next week! Only the naive would feel all of this to be unconnected.

Little known to the rabid anti-Europeans, countries such as Norway, Ukraine and Iceland are already part of various European unions. There are, inside Europe, unions of free travel, unions of free commerce, even unions of usage of the euro while NOT being in the Eurozone, plus an union of countries economically assimilated to the EU, while not being in the EU, and even other countries admitted to candidacy to the European Union.

Those unions are far ranging. For example the economic might of Turkey is greatly explained by this republic being an associate member of the European Union and its predecessors since 1963. By the way, many a European problem would be lessened if Turkey joined the EU much more. Why not include Turkey in the Eurozone? (That could help Eurozone financing.)

At the center of Europe is the Eurozone, and its core is bicephalic Franco-Germania (however it may hurt all the nostalgic of francophobic Keynes and Hitler).

Not forgetting the rich Franco-Germanoid fragments of the Benelux, which are in between, and inseparable from France and Germany, one contemplates in Franco-Germania a super power with 180 million people, and the most advanced technology. OK, French and German private banks have lent a lot to Greece, and now they are threatened by a Greek default, because they lent so much to the Greeks, that the Greeks cannot possibly pay back. Right. So?

Same with Spain, or Italy? So? Are not the Germans happy that Spain bought from Siemens, that is, from them Germans, very high speed trains? Would they have preferred Spaniards to buy trains from French Alsthom instead?

Many cautious Americans will scoff that they have their money in American money markets, so they have nothing to do with Greece. However, the truth is, all large banks, especially including all large banks of the USA, have a piece in Greece, and a fortiori Spain or Italy. Even the Chinese are deep in the Greek picture. Hence the (well justified) dressing down of the Chinese Premier to the most advanced countries: “We have been concerned about the difficulties faced by the European economy for a long time and we have repeated our willingness to extend a helping hand and increase our investment,” Wen said. In exchange China wants WTO membership.

Americans who think they are out of Greece do NOT know how money markets work. What is a money market? Well, a market of very short term bonds. Some of these bonds are Greek bonds, some of these bonds are bonds of banks which have lent money to Greece, or bonds of institutions which lend money to companies which invested in Greece, or have “swaps” with such. And so on. Thus all Americans, and actually the entire planet, are entangled with Greece and company. If a black hole develops in the middle of that system, much will be swallowed.

Third, and more importantly, a terrible paradigm is created in Greece; the innocent are made to pay for the crimes of criminals, as these criminals still have access to all the levers of power. As long as this is not addressed, the crimes, and the crisis, will keep on rolling.

***

UNREAL BANK RESERVES, REAL AMERICAN WAR:

How the banks are threatened by lenders unwilling to pay back the whole gamut of what they owe is a bit convoluted. Banks are supposed to have some capital reserve requirements, and are supposed to stop operating if they don’t. European regulators are fiercer on this than American ones. Oh, yes, because American banks would already to have to stop functioning if correct financial requirements were applied to them. So the funny thing is that the panic is about French and German banks having fewer reserves, but still much more than their American competitors. (But of course, perception becomes realization; so the hysteria has real effects, positive for the hysterics!)

In truth, the bottom line of the whole problem is that the USA is trying its best to keep its supremacy. So Americans are running around in a panic screaming that Europe is sinking. Whereas the truth is that European banks are still in much better shape than the banking-Federal Reserve-U.S. government complex in the USA.

Right now, the one year Greek Treasury Bond carries an interest of 111%: an investor in that vehicle will double her/his money in 5 months. Such an investor will bet that other European states will keep on forking money over to keep the Greek state afloat.

So why am I for a Greek default, as I have suggested forever? Actually I was also for the default of the Too-Big-To-Fail banks in the USA. Within a month of the election of Obama, I was enraged that Obama had decided to send to the banksters all the money in the world, no questions asked (TARP was just a small portion of the money lent, or given to the banksters). I saw the criminality of it all, very clearly. See: https://patriceayme.wordpress.com/2009/02/24/time-for-rico/.

I was for the nationalization of the Too Big To Fail banks. Instead of just giving them the money, many times over what they were worth, as Bushama did. If nationalizations had been done, the economy of the USA would have restarted by now, and the future, even of the deficit, would be rosy. By the way, nationalization of banks is what Iceland did.

Much later, the Tea Party was created, and adopted the same line that the Too-Big-To-Fail banks ought to have been allowed to fail. Whether its partisans understood that meant nationalization of a big chunk of the financial system of the USA is another matter entirely (they are too busy being mystified by the theory of evolution, having dinosaurs galloping all over their little minds…) A dreadful possibility is always that Chinese (say) banks would swoop and acquire all the failed banks in sight. Nationalization avoids that.

So, yes, I am for the Greek default. For the same reason. That will allow to avoid in the Europe Union, the treacherous, unjust slope into the abyss, of using most available public finances to support the very men who have caused the crisis, and the very exact systems they have created and lead, and brought us all to the pauper house, where we will be to stay in residence if, and only if, we become slaves to the Chinese dictatorship (yes, I am not insulting China, it’s officially a dictatorship).

***

THERE ARE MANY SORTS OF EUROPEAN UNIONS:

Is Turkey in or out of Europe? Those who say out, know nothing. Why to talk about Turkey? Because, actually Turkey has very different strategies and capabilities which have not been tapped. And, by the way, the unaffordable Greek military budget is naively aimed at Turkey, an unacceptable situation both economically and between NATO members.

The question of Greece leaving the European Union has nothing to do with a financial crisis, even a sovereign financial crisis. Even leaving the Eurozone and having a sovereign debt default are completely different notions.

Anti-Europeans, strong and strident in the USA, deliberately confuse all these notions: they are paid to do so, making them what they are. Sexual prostitutes provide a service, and, if everybody comes ahead, it’s all for the best and a legitimate business. But when famous economists use the bully pulpits they are paid to bellow from, to tell complete lies, they are definitively turning into public enemies. What do they want, besides money? What do they do besides spewing hatred?  Do they want war with Europe? Well, that’s what they are doing.

Even the head of the bosses’ union in France said so. She said there was a deliberate, organized, orchestrated effort by “the Americans” to destroy the European Union. And the confusion of all the notions is part of it. I would not be surprised that Stark, the chief economist of the ECB who left in a huff 5 days ago, were to be found, someday soon, to have been paid by “the Americans”. Watch carefully who his next employer will be. Mr. Orszag, the Obama budget director, helped send 60 billion to Citigroup, and is now employed there, earning giant amounts of money in compensation for his gracious service.

Suppose California were bankrupt: would it leave the Union? No. And guess what: when California paid with “IOUs” (“I Owe You”), do you think California did that just for fun? IOUs are little pieces of paper supposed to replace the Federally official little pieces of paper known as dollar bills. Guess what? It happened, because California had literally run out of money of that currency union, the USA!

And no American suggested that California ought to leave the Union. Where was Krugman when Anti-Americans needed him? Anti-Americans would have loved hearing that California had to leave the Union, as straightforward Krugmania would have it. Did I misunderstand something? No, Krugman’s reasoning for Greece somehow does not apply to California (although California is endowed by a massive indigeneous energy production, from oil to hydro).

Some fear that Greece may sink that low in next few months, if Sarkozy and Merkel can’t figure it out. As low as California: a terrible thing, that would be, indeed, for the land of the Parthenon!

But then, if Greece were to sink as low as California, pro-Europeans will not fail to notice that Greece does not have anymore reason to leave her Unions than California had to leave the USA.

Thus the hysteria of Paul Krugman and his unfortunate kind against Europe and the Euro is painful to watch: is this the best the USA can produce in the way of deep thought? Merkel, and several French politicians seems thoughtful relative to Paul losing his marbles about the euro. Krugman does not realize that a fast driver can go in five hours or so, from Spain to Italy, through France. And when the Very High Speed lines presently in construction will be finished, one speaks of less than 2 hours. The time to go from London to Paris, by rail, center to center. Why does not Krugman propose a currency in Washington, and one in Boston, another in Chicago, and one in Detroit. Would not that help Detroit’s depressed economy, according to full blown Krugmania?

***

FRANCO-GERMAN UNIFICATION MEANS MONETARY UNION OF ALL: 

True some German loud mouths seem to have understood nothing since Hitler was consumed by gasoline next to the Reichstag. Hitler started his career hating France and her Versailles Treaty (still hated by many a Nazi nostalgic to this day). He ended it, defended by SS and their officers, who were native French speakers SS. The irony ought not to be lost on europhobes.

The loud mouths dream to reconstitute a larger, Aryan version of the Deutschemark. But those fools have not understood the first two things:

a) Germany has surpluses to a great extend because the south has deficits. Germany can leave the euro, fine. The Greeks will buy Peugeots and Renaults instead of VWs and Mercedeses.

b) The euro union is about unifying France and Germany. Right now France has extracted herself from the demographic black hole she was in for two centuries, and especially around 1870. French demographic growth is now strong and internal. It does not rest, as in the USA on demented immigration and the growth of non integrated recent migrants (a large part of the population of California has, technically passports from the USA, but is truly Mexican; I know some, they are charming, and I prefer them to white, racist, narrow minded Americans, but they are no such thing, precisely; in particular their value system is different, and access to higher education is barred to them, by price, as much of the public education system in the southern USA is being privatized, so their children will also be Mexican!)

To come back to France and Germany: France is, in many important ways, the superior partner. It is the result of a determination of France to never find herself in the situation on 1940, when it was defeated by the unholy union of the plutocratic USA with the USSR and Nazi Germany.

The French have carefully made themselves world masters of all the superior technologies. Germany’s superiority rests on high tech Mittelstand, family enterprises which master the middle, but not the highest. France is the spider at the center of Europe’s highest technology: look at EADS and Arianespace, etc. Giants such as MBDA, the world’s largest nasty missile company are not even on the radar of the close minded, rabidly anti-euro, such as Paul Krugman.   

Of course French spending in ultimate high tech costs a lot: look at the inertial fusion facility built in Bordeaux, which will be the world’s most modern and powerful when it comes on line within two years. It has only one equivalent, worldwide: the National Ignition Facility at Livermore, California (with which France cooperates semi secretly; NIF has made 300 shots so far; an inertial thermonuclear fusion plant will have to make 300 shots every minute to become a productive power plant…)

France gave, and is giving, herself the means: total government budget is more than 56% of GDP. As a French politician quipped in the 1990s: “France is a USSR that has succeeded”.

Germany’s government is 47% of GDP (already basically 50% more than the USA). But Germany is not building its own massive thermonuclear project, and does not make its personal supremacy stealth fighter, and personal strategic nuclear submarines, with personal city pulverizing rockets, capable of taking out 50 million people. True, France is much less efficient with its goverment: she would save a lot if she were as efficent as Germany, with much fewer civil servants.

Not that renewable energy is neglected in France: there are a lot of problems with wind, so France is late in developing that. However, the giant utility EDF has started to install giant “hydrauliennes” to capture tidal power at the bottom of the sea. A world first. If those work, France will have basically resolved its energy problem. OK, it’s a big IF…

***

KEYNES WAS A FRANCOPHOBIC PROTO NAZI:

It’s not just Murdoch’ media machine. Even the American economic left has a strange anti-French bend. This is of no small consequence, because it has made Americans incapable to point at France, and similar socio-economies in Europe, which is pretty much all of Europe, as positive examples for American politicians. The result is that economic ignoramuses such as Obama come to power, and they are advised by dedicated servants and members of the plutocracy, such as Larry Summers, somebody who should have actually been prosecuted for visiting socio-economic hardship on billions of people. As he was the dismantler of FDR’s work, and one of the main agents of the reinstauration of a worldwide plutocratic order, same as before, just worse.

Obama thinks that if forces NASA to give billions to his plutocratic pals, or to whoever wants to make something renewable, he has caught the future. All he has caught is the hope for a shinier toy in the playground. It’s infantile. Also, completely corrupt: what’s the meaning of forking public money, through NASA to a guy who is not an engineer, and laughs as a goat bleats? Or to a non engineer such as Musk, just because he looks good. Musk, like Murdoch is not really an American, just a plutocrat hitching a hike on the back of American taxpayers. 

The Europeans, in striking contrast, have given a lot of very deep, professional thought to improving their socio-economy. They did not just become fascinated by proto or pseudo Nazis telling them, a few generations ago, what they wanted to hear. (Allusion to Keynes and the so called “Austrian school of economics”.)

Where does that American francophobia comes from? Well, the key is that left, “democratic” economists in the USA admire Keynes, and therein, a contradiction. Germans who dream they can do it without France, are just pursuing a dream that KEYNES started, and Hitler implemented. OK, a Keynesian nightmare that Hitler tried to implement.

Yes Keynes, Nazi in disguise. Keynes: Nazism’s own professor of anti-French science. I just read “The Economic Consequences Of Peace” Keynes is famous for. What a piece of Nazi trash! Keynes calls the re-creation of Poland, Romania and other occupied nations in the east “scatter brain”. Why? because it would deprive Germany of economic power! Is teaching Keynes teaching hate speech?

The glorious Keynes whined that it was “victorious France” who wanted to impose what he viewed as a monstrosity, the independence of those previously subjugated nations, the freedom of Germany’s former slaves. And the great man moans. Soon Hitler would foam just the same. Did Hitler read Keynes? Many of his criminal co-conspirators certainly did.

Keynes was afraid that France, having, according to him, unlawfully, unwisely, unjustly recovered Alsace and Loraine, occupies German land which have been German for more than 1048 years, he says. What an idiot! Imperial Germany was founded in Versailles in January 1871, 48 years before Keynes put his Nazi ideas on paper.

No wonder that, after being instructed with such trash, Hitler was completely surprised that, after all, Great Britain joined France in declaring war to him in 1939! Did not his advisers read Keynes?

If one wants to go legally technical, and constitutional, “Germania” was certainly part of “Francia” by 800 CE. The Carolingians even invented German (and not just the Carolingian minuscule which even Keynes used, making him another victim of “victorious France“).

The division of the Frankish empire in three pieces was viewed as another case of the standard way to handle inheritance among the Franks. Something they had done for 5 centuries. It was not viewed as definitive. It was made explicit, at the time, that the Western Franks were to stay prominent (they were supposed to elect the eastern king, or emperor, something which soon bored them to death!)

Having many kings was also standard among the Franks: kings were elected, in theory, and having many kings was like having many presidents. However, it was viewed that the king of the western part was “emperor (in his kingdom)”, due to the fact the Franks in Francia (“Salian Franks”, or salty Franks) had fought hard for 4 centuries to unify all of Germania to Francia (Julius Caesar’s old project) .

***

NATIONALIZATIONS A EURO SOLUTION, PLUTO THE WAY OF THE USA:

To come back to Greece; a Greek default has nothing to do with Greece exiting the Eurozone.  True, the Drachma was converted at too high a rate, because of misplaced national pride: one has to live with it. True, the Americans want to break the European Union, and they may as well start with the Eurozone.

A Greek default may leave some major French and German banks with insufficient “tier one capital” to operate according to international regulations, and the markets indicate that they will be unwilling to provide them with it. So what? If it cost little to buy BNP, the French government can find what it takes, before China does, as the German government was able to find enough money to buy Hypo Real Estate. Hypo Real Estate was among the 30 largest companies in Germany. It was fully nationalized in 2009.

Great Britain and Belgium also chose to nationalize banks consecutively to the 2008 crisis. The friends of plutocracy, Bush and Obama, the greedy Bushama, instead offered to their banksters friends as much public money as they needed, without taking possession of their banks in the name of the American public they were so generously offering all the money of. But that is the problem of the USA: no more money for anything else. Bush and Obama, real friends of the Tea Party have not followed down the Marxist, government friendly path traced by those far left liberals known as presidents Reagan and Bush Senior.

Now Dimon, head of JP Morgan Chase, who Obama called repeatedly “my friend”, in his pro plutocratic penis envy, says that the bank of international settlements is “anti-American”. So not only Paul Krugman is going on a pseudo hyper nationalistic pro American rampage. They should be reminded that there is nothing nationalistic at going crazy. Hitler, too, posed as a nationalistic, but he was anything but. In truth he turned into the destroyer of Germany. Anti Hitlerian French were better German nationalist than all of Hitler’s supporters.

BNP is as big as the biggest American banks, but the French republic will nationalize it in a flash, if needed. France, as a state, will also make a lot of money that way (nationalizing very big banks is always profitable, it seems). And then what?

A nationalized BNP will be directed to lend more to people and projects which can pay for themselves, not just to cheating plutocrats they are conniving with. The connivance between banksters, plutocrats, and their servants in government (Obama) is ongoing in the USA, so the economy is falling apart there. Does Europe want to join the USA on the plutocratic road down to hell?

In the 2008 banking crash, banks, and not just in the USA, but also in Europe, got money from the states. Instead of replenishing their cash reserves, as required by International regulations, they paid their managers fortunes, paid large dividends to fellow plutocrats, etc. Now the cash reserves of American banks are 3%, just a bit more than what Lehman Brothers had in 2008 before it failed. They should have 8%, according to regulations, and common sense. And they are supposed to go to 10%. Swiss banks have 20% in reserves (explaining a lot the rush to Alpine gold!)

In other words, the banksters were treated with immense generosity last time, even in Europe.

So will Europe force the People to give money to the rich, so that they can become even richer as in the USA?No. Enough is enough: been there, done that. Thus Greece has to default. The Greek people ought not to pay while its plutocrats, and untaxed, wealthy church, keep on cheating.

***

NOT ENOUGH EUROPE YET TO AVOID A GREEK DEFAULT:

How could Greece avoid a default? Well, Greece could avoid a default only with the help of not-yet-in-existence European structures.

An example of such a structure would be treasury bonds for the European Union, or, at least, the Eurozone. But they do not exist: there is no European Treasury, no European Treasury Bonds, no European Federal debt. Of course, there is no Federal Europe. At least fiscally speaking.

France has 1.6 trillion euros of French treasury debt, Germany 2 trillion euros of the German equivalent. The USA has around 14.5 trillion dollars of U.S. federal treasury debt (but that does not count more local debt).   

It is because there is a U.S. Treasury and U.S. Treasury Bonds, and a transfer system, that California, and several other states, have avoided default. So far. But, of course, at the rate of augmentation of the deficits in the USA, it should not take much longer…

Some Germans, stuck in the Prussian-Hitlerian model, may want to build a greater Germany. They would not end up exactly like before, because Germany’s power is not what it used to be. In France, however, more than ever, the political class knows that salvation lays in Union. France has basically a discrete union with many African states, Francafrique, and it should be boosted. This is the deep reason for the Libyan adventure, as the oil propelled Khadaffi dictatorship messed up much of Francafrique: whereas he spent not much on Libya, Ghadafi was lavish with those in other countries who he wanted to influence.

Another obvious French idea is the Mediterranean Union. Here, Libya again is an obvious centerpiece. Right now France is pushing hard on dictator Assad, while writing the Palestinian state proposal. The Americans are going to be all astonished when they find themselves pushed out of the entire Middle East… which will happen if they don’t cooperate with France (because French leadership on the question is gathering lots of followers).

To come back to Greece, the concept of “Greek bail-out” is misleading. if one wants Greece to be bailed out, Greece has to pay less in interest on the money plutocrats lent it. The so called “bail-out of Greece” is actually a bail-out of the existing plutocratic structure in Europe, or, even, in the world. But plutocracy is not as strong in the EU as in the USA, as the British, Belgian, Icelandic, and German bank nationalizations after 2008 showed. So let’s nationalize some more.

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EUROPE INTO THE ABYSS, INSPIRED, & ASPIRED BY THE FREE FALL OF THE USA?

I did not even watch the Obama speech. Sometimes a human being has seen enough. How many times does one need to go at the zoo, and see the chimp throwing excrements at the public? Ok, nowadays, most zoos are better designed, and just as there are teleprompters, and human beings can be selected, who make excellent robots, chimpanzees are behind bullet proof glass.

Obama and his handlers have got crafty. They sent early versions of Obama’s teleprompted speech to a number of people, who went all pink and warm inside from receiving the favor of what they feel is a great man. So Krugman admitted that was the case for him, and, flattered to no end, in spite of himself, he fell into celebrating Obama’s speech. In a colossal flourish of naivety unbound. Thus the pundits are also prompted at a distance (tele), for all to see.

Colossal naivety? Indeed, Obama is the bipartisan president, so, in particular, the president of the Tea Party, which is the one controlling Congress. His ridiculous propositions do not impress me except as more of what is burying the USA. As usual most of what Obama proposes is tax cuts. This time he is busy undermining the financing of Medicare and social security, to give a bit more money to those already employed now, so that they will have diminished Social Security and Medicare tomorrow.

How does that help the unemployed? Where are the jobs? Oh yes, president Tea Party will ask the Tea Party to raise taxes to pay for a little bit of needed construction. Obama is intelligent enough (I hope!) to understand that will never happen. So, by suggesting to do something he knows very well will never happen, he is lying to the People. OK, pundits are paid to not notice this so loudly, that it gets reinforced.

On the other hand, he should be able to spend many happy vacations in Bali again in the future, with many domestics. Obama is not, and never was, an average American. I used to think I lived like an aristocrat in Africa, because we employed a cook and a house helper. Then I read Obama’s books, and I was left with a weird feeling: something did not add up. He presented himself as poor, but he did not think poor. Interviewing plenty of people who knew him when he was 10 confirmed the weirdness. Young Obama behaved more like young Bush than young me.

Then the New York Times finally did his job and enquired about Obama’s childhood. In Indonesia, his mother was married to a millionaire, a well paid Indonesian front man for big American corporations to hide behind. According to the NYT, Obama lived in a mansion with four lived in domestics in  secondary housing on the premises. That explains a lot, especially in the conjunction of posing as a victim of the system in one’s fictional biographies.

So, as even Maureen Dodd of the NYT asserted, Obama’s motivation is to join the highest plutocracy. He does not mind if he betrays all his supporters: for him, they are just suckers, too bad for them that they sucked the wrong tit. As he said in his books, and in unguarded speeches, it’s all about navigating.

Those who play to the “adult in the room” have always reminded me of chimpanzees playing with tuxedos with utmost seriousness.

In truth, the wise know that navigating is about a journey, and the journey to a destination, and those who eat part of the crew are unwise. All of this escapes the small men.

In the district of the (republican) speaker of the house, Mr. Boehner, there are 89 “structurally deficient bridges“. Ryan, leader of the republicans in Congress, has 95 “structurally deficient bridges” A virulent blonde republican has 192 structurally deficient bridges. And she is still hysterical against public spending. She cannot even understand that the private sector does not own these bridges.

Some of these bridges carry more than 50,000 cars a day. It has already happened that one even larger bridge with a giant interstate freeway on top collapsed. More is to come. Obama says: let the banks play with each other, faking profits with their electronic casino, so they can keep their mansion, yachts, private jets, tax heavens. Boehner says:”We should not spend.“But the banks do spend, to, and with, each other, in their derivative universe.

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TIME TO RESIST, AND REBEL: “INDIGNEZ VOUS!”

In France last year an Auschwitz survivor, Stéphane Hessel, published “Indignez Vous!“, a small book advocating that it was high time for common people to rebel against the plutocracy. Mr. Hessel is 94 years old, full of life and youth. Many of those who are young today are, instead mental dead wood, as they confuse feeling good inside and having a moral system. See David Brooks’ editorial in the NYT, “If It Feels Right…” Says Brooks: The rise of moral individualism has produced a generation unable to speak intelligibly about the virtuous life.”

“Indignez Vous!” has become the banner of the indignant ones who demonstrate throughout Europe.

Here is Stéphane Hesselin his own words, last year:

“Ninety-three years. I’m nearing the last stage. The end cannot be far off. How lucky I am to be able to draw on the foundation of my political life: the Resistance and the National Council of the Resistance’s program from sixty-six years ago…

The motivation that underlay the Resistance was outrage. We, the veterans of the Resistance movements and fighting forces of Free France, call on the younger generations to revive and carry forward the tradition of the Resistance and its ideas. We say to you: take over, keep going, get angry! Those in positions of political responsibility, economic power and intellectual authority, in fact our whole society, must not give up or let ourselves be overwhelmed by the current international dictatorship of the financial markets, which is such a threat to peace and democracy….

We must realize that violence turns its back on hope. We have to choose hope over violence—choose the hope of nonviolence. That is the path we must learn to follow. The oppressors no less than the oppressed have to negotiate to remove the oppression: that is what will eliminate terrorist violence. That is why we cannot let too much hate accumulate….

To you who will create the twenty-first century, we say, from the bottom of our hearts, TO CREATE IS TO RESIST.

TO RESIST IS TO CREATE.”

Hessel is generous to speak of the “financial markets”. In truth the plutocratic class is more like it. There is an important difference between retirement funds and those manager-owners managing them, and conniving banksters of the financial system. Much more, if it is really much more, is completely different.

***

GREEKS ARE NOT LAZY, BUT AMERICAN TAXPAYERS ARE NAÏVE:

The Greeks work much more than the Germans, so why should they work even more while being admonished that they are lazy spendthrifts?

According to OECD.org, in 2008, Germans worked in the average 27 hours a week, 1492 hours per year, while the Greeks worked 41 hours, 2120 hours per year (French work 30 hours a week, 1542 hours per year, Americans USA: 35 hours per week, 1792 hours per year. The British work 32 hours per week, South Koreans, 44 hours per week; philosophers work all the time, 140 hours per week!)

Greek GDP was down 5%, two years in a row, increasing the relative size of the Greek debt. So austerity, per se, is not working. The same will happen in all countries which try that “austerity as prosperity” trick, worthy of lost chimps.

G20, G7, G whatever, have not done anything about banksters: after the bankruptcy of Lehman Brother, American plutocracy saved itself by harnessing American taxpayers, and the entire American money creation machine.

Multiple rounds of deliberately obscurely and misleadingly named “Quantitative Easing” directed trillion of dollars towards the very bankers, and the very banking system which had created the crisis. Banks got short term money for free then turned around, and  invested it long at a higher interest rate, with the government, generating fake profits. Armed with those, they could keep on playing the derivative markets, and fake some more profits. Indeed, as they play with each other, it’s a zero sum game, no economic value is created, as money is just a symbol, not a reality.

There is a lot of misinformation going on. As a rule, American economists, even of the leftist, pro-government sort, are hostile to the European construction, even when they are esteemed advisors in Europe (Krugman has advised Spain), or teach there (Stiglitz, another economy Nobel, teaches in Paris). They always say that they love Europe, and want it to succeed, but then hates the fact Europeans want to have just one currency. What’s next? Just one flag? Are not only Americans allowed to have flag and currency, as the Very Serious Country it is?

There again, they follow Keynes, who used to rage that so many nations had been freed from German imperial subjugation in 1919. How can these American economists be received nicely in Eastern Europe, knowing that, following their racist master, they would like it subjugated?

***

ICELAND VERSUS GREECE:

Could Greece exit the Eurozone? Sure, that is what the USA want. And the USA is doing its best to make it so, having unleashed its plutocracy (why have the Europeans not yet brought warrant of arrest against Goldman Sachs’ executives?) And its wolves howl that way.

Paul Krugman, disingenuously claim that all Europeans are different and they should all have their own currency from Malta (population: 400,000) to Germany: population 83 million. Does Krugman know how many nations there are in Europe? Or all luxury hotels feel the same? Does Krugman know that poor Europeans, now that they have the euro, male comparison shopping among countries, to buy, say, a cheaper car? I don’t think the plutocracy cannot even imagine how the commons live.

Krugman lauds the default of Iceland, and its massive devaluation. He forgets, or rather, refuse to consider that, after Iceland basically stole billions to millions of EU citizens, their governments stepped in, and that those powerful governments are still determined to recover the money. In case Krugman does not know, Great Britain is 200 time larger than Iceland, and, ironically is (partly) in charge of the… defense of Iceland. 

In the second quarter 2008, Iceland’s external debt was 9.553 trillion Icelandic krónur (€50 billion), more than 80% of which was held by the banking sector, mostly in 3 more or less private banks. By comparison, Iceland’s 2007 gross domestic product was1.293 trillion krónur (€8.5 billion).

Krugman is always saying that the fact Iceland has its own currency and so was able to solve the crisis by devaluing its currency. This is deeply dishonest. A glance at the Wikipedia article shows that Krugman’s view of the situation is an affabulation. That is Iceland has improved, but not because of the currency dropping. Actually, Iceland was so desperate that its currency was going to the bottom of the ocean, that it went on its knees to enter the Eurozone.  It was told it had to enter the EU first. Since, arguments have blossomed about whale killing, and the negotiations are ongoing.

And, by the way, fixing the root of the crisis was just differed. Countries such as Great Britain, who reimbursed her 300,000 stolen depositors (as many as Iceland has inhabitants), have evoked the anti-terrorist act against Iceland, and are still determined to recover their losses. Other aggrieved  countries are the Netherlands and Germany, or Norway. French veteran magistrate (and presidential candidate) Eva Joly was named by Iceland to head a serious economic crime unit of 20 detectives to find out the causality (hence culpability chain) of the whole thing.

If Greece had its own currency, it will have one positive consequence: tourists would flood to Greece, because that currency would be worth very little. Krugman would say:”I told you so”.

However Krugie boy forgets that Greece basically makes nothing, so Greece would still have to buy everything outside, and that would be very expensive. then Krugie boy will jump up and down, and squeak:”How did Iceland do it, then? Nananana!”  

Well Iceland has giant geothermal resources, and also mountains, with a very wet climate. Over 80% of Icelandic electricity is generated by hydro power. Whereas Greek energy has to be fully imported. And with a collapsed currency, that would be ruinous. So there would be tremendous inflation, and the Greek central bank would have to raise interest rates very very high.

In other words, Krugman panacea is just an absurdity. Hopefully the Europeans will be able to resist the American plutocratic conspiracy, its siren songs of the mentally undeveloped, and not fall into the abyss.

***

WHEN THE USA FIGHTS FOR ITS LIFE:

A default for Greece would not mean that, as Iceland did until now, and Krugman always fail to mention, Greece would run away with all the money. Far from it. Wiping out 50% or so of the Greek debt ought to be fine. Next time the banksters will have to be more careful, or more brazenly conniving.

It is clear to me that huge banks and their bankers try to become more influential, more Too-Big-To-Fail, by lending more. That was clear with the subprime madness in the USA. Madness for the victims, crafty for the biggest bankers, the banksters.

How do plutocrats operate, when they have achieved plutocratic sustainability?  They extract a rent from the multitude. Such individuals are who, historically, the French called “rentiers“. Tellingly, the meaning of the word “renter” in English is the exact opposite (inverting meaning is a good way to confuse). Paying rent of own’s life is close to the idea of serfdom: one does not own anything, and one spends all of one’s life paying rent to the overlord. This is basically how Americans live. And then they have been imprinted to feel proud, insuring they don’t understand a thing about what ails them.

American propaganda says most Americans “own” their homes. Instead Americans actually rent their homes to banks. The average American homeowner now has 38 percent equity, down from 61 percent a decade ago. Thus in truth, American own only 24% of their housing market: they rent at most than 75%, and most of it at a totally overvalued rate. The money is sent to the friends of Obama such as the daemon Dimon, who then live in mansions, and buy the president (who loves to be bought so he can live in mansions too! Even “The Economist” has started to make fun of Obama’s luxury bed!)

Well, it’s high time to stop paying rent to the plutocracy.

As I write this, hordes of armor clad American sharp shooters are fighting on roof tops inside Kabul, killing Afghans who are stupid enough to believe American propaganda and feel they own their country. I have live access to both foreign and United States media. It was amazing how much the attack was downplayed and misleadingly represented in the media of the USA, which said things one could see were blatantly not true: non American TV showed clearly hordes of Americans fighting, contrarily to what was said in the USA, where it was falsely claimed most of the fighting was made by Afghans, and giant American helicopters turning around the battle were just sightseeing.

Well worth spending lots of money, treasure, lives, and brains on it, indeed, this little adventure in Afghanistan, designed to show that, like Carter, Obama deserved his Nobel Peace Prize, because, like Carter, he attacked Afghanistan much more. Thus the dollar has to stay both strong and weak, and the euro better disappear from sight, as its rise could mean that other countries could follow Saddam Hussein’s Iraq, and switch to the euro for oil payments.

For the same reason that switching to its own currency would be ruinous energetically for Greece, for the dollar to lose its solitary reserve currency role would be energetically ruinous for the USA. Hence it would be ruinous for Paul Krugman. The energy budget for heating and cooling the mansion in which he lives would become considerable. Let alone the fact that his sponsors would be disappointed that he did not deliver a demolished European currency. Funny how it all makes sense.  

“Indignez Vous!”

***

Patrice Ayme