Posts Tagged ‘pirates’

Raid Treasure Islands, Finally?

March 24, 2013

Abstract: The plutocrats, plutophiles, and hired guns who dominate the planet have brought a Greater Depression. A punier crisis in the 1930s brought political fascism all over. To avoid a repeat, representative democracies need heavy corrective measures, now. Here is the latest outrage.

Cyprus has invested many times its GDP. In Russia alone. Year after year, for years. Cyprus is a money laundering scheme. One of the many pirate islands around the planet, whose main enterprise is organized crime. Initial violent reactions in Moscow from president Putin and his prime minister Medvedev show that they were party to this conspiracy.

That set-up allowed plutocratic mobsters to buy more and more of Russia. It has also enabled them to purchase a large part of the West. Criminal money, satanic minds, all over, what could go wrong?
Enough has been seen, it’s time to use force.


Pompeius: Magnus Accomplice to Pirates?

Pompeius: Magnus Accomplice to Pirates?


In the late Roman republic, the seas came to be paralyzed by piracy. Roman politicians, busy at each others’ throats, had overlooked the growth of pirate havens. Pirates owned ports, cities, countries. The situation became untenable; international trade was coming to a stop, and Rome depended upon grain from overseas. Pirates were hanging just outside of Rome, Corsica was full of corsairs, very naturally, even a young Julius Caesar was kidnapped against ransom.

Finally the Roman Senate gave full power to a young Gnaeus Pompeius. After a winter preparation, Pompeius sent 13 legates all over. Cicero was enthusiastic: “Pompey made his preparations for the war at the end of the winter, entered upon it at the commencement of spring, and finished it in the middle of the summer.”

Some say that it took just 40 days for Pompeius to re-establish  freedom of navigation. Yet, years later Cicero knew better. He bitterly criticized Pompeius’ work: “we give immunity to pirates and make our allies pay tribute.”

Sounds familiar? If Cicero’s charge is true, it explains a lot of the further deterioration of the Republic. Two reasons to believe it’s true: 1) No anti-plutocratic measure was taken in Rome at this stage.

2) This is exactly what we have been doing since 2008: exacting tribute from the citizens, and paying the pirates. “Quantitative Easing”, that is money given to the very banksters who caused the 2008 crisis was tribute paid by the citizenry, while immunity was given to financial pirates.

The grossest of the gross will claim that we have nothing to learn from Rome. But Rome had a republic, a pretty direct democracy functioning for more than 4 centuries, and that’s still the world’s record in duration. How did the Roman pull that trick?

The Roman republic lived for more than 4 centuries with an explicit limit on the wealth that could be acquired by any given family. It is precisely attempts to break down inchoating plutocracy by application of an existing law enforcing that limit, which brought the civil war that the Gracchi brothers lost. By then the plutocrats had private armies, and they used them to kill the Gracchi and thousands of their supporters.

Conclusion: Crack down on plutocracy, before it cracks you.

So what happened to Rome? Plutocracy kept on going, until by the Late Second Century it devoured the ability to destroy foreign enemies, and then devoured the state. In the Third Century, plutocracy devoured the socio-economy until the military rebuilt society in its image. In the Fourth Century, plutocracy merged with theocracy, and devoured philosophy and the brains. By 400, plutocracy devoured the army itself. The Franks were put in charge of the defense of the North-West corner of the empire.

Next Roman state was replaced by the Frankish state, which was very lean, and Frankish law came to rule. Frankish law enforced equal inheritance in (large) families, and leaders were elected. Plutocracy did not die, but became a shadow of its former self, all the more as brains were re-established under the guise of a church ruled by a secular state, that ordered it to teach secular.

Clearly the Gini Index of the Imperium Francorum and the Renovatio Imperium Romanorum that followed was much lower than that of the Roman empire. Only then could civilization be re-launched. Because there was money to finance progress. Again.

Conclusion: plutocracy is a malignancy, it has to be eliminated ASAP, should one want civilization to go up, instead of down. (And of course nowadays we need more civilization than ever, as the old civilization we enjoyed is running out of resources. Same as what happened to Rome, just way worse, and on a planetary scale.)



Injecting 85 billion dollars a month, as USA central bank chief Bernanke announced he was doing, is not enough (although that’s injecting 7% of GDP a year in printed money!). Rats have to be removed from power, prosecuted, fiscal havens have to be exploded, and tax cheat global corporations have to be forced to pay tax where they make sales. Earth’s problem is bigger than just banksters, and oil men.

Such was the hope Obama surfed, before he spent four years flashing his mesmerizing, mile wide, dazzling smile-to-seduce-the-world. And nothing happened.

Fortunately there are inkling that the mood is changing.

The  evidence is coming from Franco-Britannia, the EU, the Eurogroup. Suddenly, laws are passed: Financial Transaction Tax, limiting banksters’ bonuses. Taxing tax eschewing corporations is considered. The latest: telling Russian plutocratic mobsters that they have to pay tax, if they want to go on pumping dirty money through Cyprus.

This turn of civilization against plutocracy, to save itself is slow going. Indeed, the leaders of the West profit of a system rigged by plutocracy. Those elected politicians, supposedly servants of the People, live like kings, in the service of their plutocratic masters. Putting a few in jail, as justice is trying to do in France, may help.



First the good news: the plutophile who was French president a year ago, has been indicted (“mis en examen“). Justice believes there is enough evidence that Sarkozy was “abusing” an old lady, to put him under “examination”. One cannot make that good stuff up: elder abuse is next to Pluto, second only to pedophilia. Meanwhile many prominent politicians are on trial for  what they did in Iraq. French politicians, of course.

Amazingly, the abuser of the elderly, Sarkozy his name, married to a Franco-Italian billionairess, cost French taxpayers 2 million euros a year. The rich is never rich enough, in the mind of the established order of things. The suspected criminal prepares his defense from a 300 square meter office, next to the Élysée! ($250,000 a year in rent, paid by French taxpayers.)

Top Americans politicians cannot be suspected of any wrongdoing; they prey next to god, as they emphasize all the time, and never go on trial (except for the son of Jesse Jackson). Does not matter if they chew down the Fourth Geneva convention for breakfast. In fact Sarkozy is hounded for practices that are perfectly legal in the USA. 

Sarkozy had to hide in the dark, and persuade an old lady it was perfectly OK to give him money. While he was doing what Obama does one thousand times more, just in one day, and while Obama does it for a thousand days, as he buys himself a presidency.

Americans have stricly no problems when they see their president sleeping in a plutocrat’s bed. And if the president sleep in 100 plutocrats’ beds, it’s one hundred times better. Well, in France, it’s illegal, and it’s elder abuse to make the richest lady in Europe believe she is suddenly in Palo Alto, or something, and American law has superseded French law.   

Ex USA presidents cost USA taxpayers at least 4 million dollars a year (without counting their health care cost, and regalian security cost for them and their relatives). Obviously they deserve it: they all are extremely rich multimillionaires, and the richest get subsidies, so that low lives can dream even more.

Meanwhile in Spain more and more people are imitating the king, his family and the PM: they are living outside of the law. In the region of Andalusia, unemployment is at 35%. Low lives have started to seize government property, and cultivate food to survive. I guess austerity has met ingenuity.

French President Francois Hollande confided that “the unthinkable is now becoming possible, in France and many other countries, I know what I want to do, the problem is I do not have much time to succeed”.  By “unthinkable” he means the return of fascism.

Some may scoff: “who cares about France?” But France is the brainy spider in the middle of the European web. The decider on Cyprus was clearly the French finance minister Moscovici (in full accord with his wheelchair bound German colleague). Interestingly, France is also of one mind with Britain, and not just about Mali… But about taxes!



It is clear that France and Britain have had enough with mobsters (aka tax cheats). The governments there are on opposite ends of the political spectrum, that makes their alliance all the stronger. Alliance? Were not they trying to eviscerate each others’ budgets recently?

Conservative PM Cameron has realized that austerity alone does not work (as many have pointed to him with relish). British GDP numbers are worse than in the 1930s “Great Depression”. To relaunch the economy, Cameron reduced top tax margin from 505 down to 45%. Yet, Cameron is running a terrible deficit, he has to increase revenue.

Can taxes be augmented in France? The newly elected Socialist French government knows it has taxes as high as they can get without having the Sans Culottes take over. Indeed the Constitutional Court barred the proposed 75% proposed top tax margin rate (throwing the law out, although it had passed!). Then the Council of State followed on March 21 2013 by declaring that the top rate ought to be no more than 66%.

(The USA has neither a Constitutional Court, nor a Council of State, but it has a Supreme Court that plays with the constitution, when plutocracy is at bay, contrarily to, well, the constitution…)

So both the French and British government discovered the only solution: get those who pay no taxes to contribute, by force.

There are two main types of those: 1) multinational plutocrats, 2) multinational corporations.

So Mr. Osborne, the UK finance minister and his French colleague, Mr. Moscovici, sent a check to the OECD (Organization for Economic Co-operation and Development, based, in Paris, France). They asked this economic organization of the 34 most developed countries to find out how to tax multinational corporations.

there for a decade or so, The head a OECD an ex Mexican finance minister, Mr. Gurria partly educated in the USA at Harvard. On Saint Patrick day, march 17, 2013, he flatly declared on Tele5Monde (French speaking world TV): “les multinationales ne paient pas d’impots” (“multinationals do not pay taxes”).  And he added in no uncertain manner that this had got to change. He is very happy with the Franco-British checks. And

So even Osborn is determined to tax an entire category of international plutocrats and corruptocrats. Gurria insisted that it was Osborne the Conservative, and not Moscovici the Socialist, who launched the initiative.



For me, plutocracy is, first of all, the rule of the Dark Side without any overwhelming justification from the Light Side.

This being said, Assad’s family is filthy rich in the traditional sense, having stolen We The People more than quite a bit. His shop-alcoholic wife used to support London’s luxury stores, and now she has fled to Moscow, one of Assad’s cornucopian source of weapons (the other being Iran, thanks to Iraq). She and Putin can commiserate of the fate of their funds in Cyprus, I guess.

To make their meaning clear, that the days of arrogant plutocracy are numbered, France and Britain announced they will ship soon to Syrian rebels absolutely lethal French and, or, American anti-aircraft missiles. The Americans do not even have to agree, because the French Mistral are even faster and more deadly than the American Stingers.

The essence of the matter is to make revolutionary secular forces win the war, because otherwise Russian inspired, or Salafist inspired, plutocrats will surely win, and establish their terror, strong as they will be after killing a million or so. Not intervening in the Spanish Civil War had been the fundamental mistake of France, Britain, and the USA in 1936… OK, intruth American plutocrats were fully on the fascist side (with fuel, ammunition, weapons, and Texas oil). At least, this time, those three are no as inert… 


Cyprus’ banks invested heavily in Greece, while paying, year after year, interest rates between 5% and 9%, for years. Cyprus’ banks need immediately 17 billion Euros to keep on operating.

The Eurogroup (mostly the finance ministers of France and Germany) agreed to give ten billions, if Cyprus found the rest. As the Greek church is part of the state there, it could easily sell part of itself, and find the money. Another solution is to tax plutocrats. There are 8,000 (mostly Russian) plutocrats in (nominal) residence in Cyprus.

The European Union gave a banking ultimatum to Cyprus. I saw that one coming. Cypriots had a good run. Money from their tax haven. Hush money. Who protects the tax haven from, say, Turkey? Franco-British military force. Do Cypriots pay for the Franco-British military establishment? Now they will.  

Moscovici agreed to lift the limit of reimbursement to 100,000 euros. (I don’t see why, as those accounts made huge money in the last few years!) That means the Plutos will be taxed at an even higher rate. 25% has been suggested.

There can be NO run on the banks, as all accounts have been blocked in Cyprus. Even the smallest ones. Plutocrats are given a choice: be taxed, or go bankrupt.They can’t even escape, because of capital controls. The days of Cyprus as a tax haven are over. Let all other tax havens join them at the bottom of the sea.

The problem with plutocracy is not just the plutocrats themselves, and the institutions that serves them. It’s also the general mentality that crimes pays, and the more criminal, the more paid one is.

That psycho mechanism, that crimes pays best, has to be broken at some point, and the point is now. Otherwise one would down in the sort of catastrophe that affected Germany. Nietzsche screamed in writing, by the 1880s, that Germany’s mood was turning from ugly, to criminal, and even mass criminal. Nietzsche even explicitly accused Kant. Indeed, Eichmann in Jerusalem, tried for the assassination of more than one million people, brandished Kant’s moral system as his justification.

Nietzsche was not listened to by Very Serious Germans. Why? Because Germany was a successful, run-away plutocracy, ever more fascist to fight the socialists. When Bismarck, no shrinking violet, nor fanatical socialist, finally understood a monster was born under his loins, he was thrown out, and Nietzsche’s prophecy, the destruction of Europe by Germany, proceeded.

We now have the same situation, on a world scale.

Plutocracy, fascism and depletion of resources (including climate) are all entangled. if we did like the Romans, and let our civilization go down, we would not have, like the Romans, a plan B. For the Romans, plan B, as it turned out, was the Imperium Francorum. 

What is therefore needed, immediately, is to traumatize plutocracy. In all sorts of ways. Exploding the island tax havens is a good start.

It’s a new paradigm. Common financial commentators in the USA whine to high heavens that trust has been breached, never to be seen again. Quite the opposite, a new trust has been established. It’s all about trust. Put your money in a tax haven, TRUST the European Union to tax it.

Spare nought. Cyprus today, Monaco tomorrow.

Even Monaco Has Got To Go

Even Monaco Has Got To Go

Of course, it’s traumatic. Voltaire gave a moral order:”Il faut ecraser l’infame!” (“One ought to crush infamy“) Traumatizing infamy comes before crushing it thoroughly. What else?

So it’s very simple: give an ultimatum to every single tax haven. The truth about these havens is that they are a modern form of piracy. Their relationship to the West is even more abusive than that of Rome’s pirates to Rome. Indeed, they are just another face, another interface, of Western plutocracy with the the weak it’s abusing.

The exact charge against Sarkozy is “abus de faiblesse” (“abuse of weakness”). It’s highly symbolic

In the case of Cyprus, it can submit, or be kicked outside of the Eurozone, to join the fishes at the bottom of the sea. Against the Russian mafia, a greater force has to be employed, and examples made. After years of tremendous interest rates, Cyprus’ parliament has stupidly decided to be greedy in the line of fire. Excellent.


Patrice Ayme

Financially Metastatic, Philosophically Ignorant.

November 8, 2009



Something we have hammered for years. Paul Krugman points out that: "…Advanced economies actually grew faster in the era before modern finance took hold. There have been assertions that it was all about rebuilding from the war, or that the picture looks very different if you look at per capita real GDP, with some flat assertions that if you look at the numbers right growth has been better since 1980s.

Um, no.

Take the United States, which wasn’t damaged in the war. Take per capita real GDP. Give hostages by taking data from 1950 to 1980, which means including the 1980 recession, but stopping at 2007, so that the current slump isn’t included. Then here’s what you get:

Growth in per capita real GDP from 1950 to 1980: 2.2 percent per year
Growth in per capita real GDP from 1980 to 2007: 2.0 percent per year

Oh, and if we look at real median family income instead, we get:

Growth from 1950 to 1980: 2.3 percent per year
Growth from 1980 to 2007: 0.7 percent per year

Sorry: there’s no measure I can think of by which the U.S. economy has done better since 1980 than it did over an equivalent time span before 1980. It may be something you’ve heard, it may be something you’d like to believe, but it just didn’t happen."

And of course the GDP growth from 1980 on was polluted by the metastatic growth of financial sector piracy. By that token, the GDP of the Caribbean augmented enormously when the pirates took over in the seventeenth century: after all piracy and its innovations, like finance and its "innovations" are a form of frantic activity, and if one decides to measure that proudly instead of the rest, this can grow instead of the rest. For decades the pirates of the Caribbean played government against government, nation against nation, same as today with financial pirates. When the real economy of the Caribbean region fell apart, the governments finally took concerted action: laws were changed, justice was enforced, the pirates were arrested, and many were hanged.

That was nice. Now, what about getting the governments together, change the laws, and send some of the financial pirates to jail?

What some finance and economy professors and other critters serving the oligarchy claim not to understand is that the pathetically low growth of the median income proves that the financial sector sucked up way too much of financial capital. In the present, grotesquely undemocratic fractional banking system, it’s the banks themselves which create most of the money, and then, in an obvious conflict of interest, decide who gets the money. To stabilize this outrage through carefully tuned influence peddling, they then take political manipulators such as Rahm Emanuel, and give him quickly 16 million dollars in two years, so he would know, and let it be known, who the true masters are (then he can teach his friend Obama).

Democracy is clearly at bay. The financial sector is sucking most of mother’s milk of free economy, capital, become it controls, it has become the mother itself. But, fundamentally, whereas the economy needs shoemakers, it does not need financiers. finance ought to be just a trusty communication device between savers and entrepreneurs. so finance is servant of the economy, not its master. a fortiori, finance ought not to be the master of the democracy. but when finance is the greatest contributor to the democracy’s elected representatives, when finance is therefore buying itself a democracy, things have got out of control.

The "democratic" governor of New Jersey, Corzine, just thrown out by voters, used to be CEO of Goldman Sachs. His right hand man was Paulson (who succeeded Corzine as the next CEO of Goldman Sachs). Paulson, with Geithner (Obama treasury man), was the main architect of the Bush-Obama plan of sending all the disposable cash of the USA to the world’s richest men, so that they can stay in control. Why? because as long as the fat cats big bankers control all, the rotten politicians, already rich, and soon to be much more so, can stay on their future payrolls.

One cannot sweep things under the rug, and shrug that, if Americans want to stay oppressed by their plutocrats, and the oligarchy connected to them, that the business of the USA. A century ago something similar developed and the possessing elites were favorable to a big distraction, a mighty source of profits, and comforting for most of the worldwide oligarchic system (or so most oligarchies hoped at the time). That distraction came to be called the First World War. Socialists, in France and Germany (among other places) came to see it that way, and tried to stop the war, by calling for a strike instead. Jaures, prestigious leaders of the French socialists was assassinated, though, and the World War started a few days later. Although it is true that the fascist Prussian generals who decided to assault the world, had a mind of their own, the oligarchies in Europe, and especially in Germany, viewed the socialists as a greater danger than the nominal enemy.

An amusing proof of this is the defeat of France in May-June 1940. Although the Nazis lost 2,000 planes (!), their Luftwaffe was able to acquire control of the skies. How? The French had plenty of state of the art fighter planes, several hundreds of them, equal to the very best that the Nazis had, which were not engaged, at a time where every single supremacy fighter counted. They were not engaged, because they were not armed. They were not armed, because the political powers that be did not trust the workers with the heavy guns needed to arm the planes…

Iraq, Iran, and Afghanistan are obvious distractions. More damage is made to the strategic supremacy of the USA by the pathetic spectacle of the Wall Street government in Washington.

Obama has not decreased the military spending and augmented the adventurism in Afghanistan, hoping for a while that technology (drones) would replace ideas.

Let’s leave the final word to the Macroeconomics blog:

Just look at the red line of the “Not In Labor Force”:

That hasn’t happened, as I reproduce again in this chart:

The "Not In Labor Force" graph is worse:

This graph continues to accelerate in a near-parabolic rise since June.  In the history of the data available for this series, unfortunately only back to 1999, this has never before happened.

Our government, by choosing to protect the oligarchs and banksters instead of allowing the market to force the bad debt out into the open where it defaults has chosen to saddle our nation’s citizens with unconscionable and unsustainable debt loads, both at a government and personal level.  This was a critical error and, as I expected and predicted, it is now being reflected directly into the employment situation.

I would add this: it is not just a question of debt, a notion that strikes the future, and attacks the dollar, but of MISASSIGNEMENT OF CAPITAL. That, the latest notion, is why the unemployment rate is skyrocketing up, right now.

I have been saying this, I have been fulminating against this, much more than a year ago when the Geithner-Paulson plan, of saving Wall Street and losing democracy got enacted. Some day it will be known as the Bush-Obama strategy of Wall Street first. The Macroeconomics blog also shows that the latest GDP numbers are not what they look like: they actually mask a dramatic deterioration of the financial situations of individuals.

Can Obama back off? Well, first he would have to understand that there is a problem. But he can’t, because he does not have the philosophical background. It’s simple, though: if you save your financials when they got metastatic, you lose the patient. Does not matter how many health bills you pass.

Patrice Ayme