Posts Tagged ‘Rothschild’

Macron, Bankster, Executioner

September 7, 2014

Humanity is facing its greatest crisis, ever. Clearly the situation of the biosphere is the most dangerous in 65 million years. And what do we do? We put in charge of everything individuals such as Mr. Hollande, an obvious half-wit with a vicious sense of contradiction (his ex-mistress revealed that “socialist” Hollande calls the poor “Sans-Dents”: “No-Teeth”).

Krugman wrote in the “Fall Of France”: “At this point, Europe is doing worse than it did at a comparable stage of the Great Depression. And even more bad news may lie ahead, as Europe shows every sign of sliding into a Japanese-style deflationary trap.” That has long been clear, as I pointed out in GREATER DEPRESSION, more than three years ago.

Hollande: Bankster To Lead France

Hollande: Bankster To Lead France

Krugman: “[Hollande] was elected on a promise to turn away from the austerity policies… Since the intellectual justification for these policies was weak and would soon collapse, he could have led a bloc of nations demanding a change of course. But it was not to be. Once in office, Mr. Hollande promptly folded…

Let it not be said, however, that he is entirely spineless. Earlier this week, he took decisive action… Mr. Hollande’s force was focused on purging members of his government daring to question his subservience… you need to understand two things. First, Europe, as a whole, is in deep trouble. Second, however, within that overall pattern of disaster, France’s performance is much better than you would guess from news reports. France isn’t Greece; it isn’t even Italy. But it is letting itself be bullied as if it were a basket case…”

(Actually French employment rate in the prime slice from 25 to 55 years of age is better than the USA’s!)

Hollande nominated an entire team of half-wits to lead France; several of whom apparently hoped that, being at the top of the state would put them above any suspicion, and allow them to engage in massive tax evasion.

The latest of these low lives was Trade Secretary only nine days before it came to light he did not declare his income for years. Not to worry: he is back to Member of Parliament again, where he will be presumably able to make discourses attacking those in the Middle Class who complain about confiscatory taxes, as he used to.

Hollande’s fate is reminiscent of Obama’s. Here are two presidents elected to enact real change profiting We The People. Yet, they soon surrounded themselves with people from the other side, the side of very high finance. Then they surrender to the reality they had themselves created.

In both cases, it has been a triumph of the bankers. In both cases individuals who worked in, and for banks, became pillars of the administrations. And not just any banks. The major banks, those entrusted by society to create massive credit, that is money, to support the economy.

Instead those giant banks spend all their muscles engaging of a casino of their own making, in which they make money off each other and a secretive universe of hedge funds and so called “Dark Pools” (more than half the world’s money).

Hollande just nominated Mr. Macron, 36 year old, Economy Minister. Macron is a graduate of ENA who worked as a Finance Inspector, before being employed by the Rothschild Bank for four years. Presumably Macron was using his know-how of the Finance Inspectorate to tell Rothschild how to avoid taxes and prosper. Macron made a huge fortune.

Rothschild had already pulled this trick over a twenty year period in the 1960s and 1970s, when another of its equally ignorant creatures, Pompidou, came to lead France as PM and then President.

The Daily Beast, in a burp of propaganda: …”[Macron] got rich on his wits. He is, by all accounts, brilliant; a dashing, urbane go-getter who exudes charm. A sharp intellectual. A prodigy. He is even a prize-winning classical pianist. The guy’s a winner… Nicknamed “the Mozart of Finance,” Macron spent short but extremely lucrative years as an investment banker at Rothschild Group. His key role in shepherding Nestlé’s $12-billion purchase of Pfizer’s infant-nutrition unit is said to have set Macron up financially for years to come.… ”

Key role? Let me laugh. One of the main reason for acquisitions right and left is so-called inversion, in other words, tax evasion. Sharp wits? No doubt it’s smart to be a crook, when being a creep puts the world at one’s feet.

This all begs the question: how extensive is corruption in the democracies? When all the leaders are bankrolled so extensively by the most powerful, most perverse financial system ever created, is it surprising that the leaders’ decisions favor private banking?

And how come that banks, those daily beasts, have acquired that much power?

Lest Americans congratulate themselves about such things not happening in the USA, let them know that what is going on in the USA is even worse. In the USA many of the tax avoidance schemes which are unlawful in France, are perfectly legal.

In all and any cases, the conclusion is the same: the definition of plutocrats is that they do not pay taxes.

This is exactly what happened with the French Ancient Regime aristocracy. Now top public servants (that is top politicians) are on the take from said plutocrats.

Even the educational system has been thoroughly tweaked: no instruction is ever given revealing the role bankers and plutocrats (most of them US plutocrats) played in the rise, one should even say the creation of Nazism and even World War One.

What remedy is there now? Why not try democracy? Real democracy, not the representative oligarchy we have, which insults us by calling itself democracy.

Direct democracy works in Switzerland (where banks have been reined in better than anywhere else, contrarily to repute). It could be tried in other countries. It is too bad that a call to direct democracy has not been made the main axis of the Scottish Independence referendum.

But it is not too late for more local entities to shake the slavery to extreme finance.

A last hilarious note about Macron. When “Macron” was named finance dictator of France, I could not believe it. Macro, in French “Macron”, was one of Tiberius sidekicks. Macron, a Roman prodigy similar to the French Macron, organized emperor Tiberius’ passing, and nominated Caligula. According to Tacitus and Suetonius, Tiberius was in no hurry to depart this world, and Macron, in the end, smothered the old Princeps below blankets and pillows.

But do not expect any of the French intelligentsia to react to this amusing historical connection: France used to be a place of high esprit and culture, but now it’s fading fast (with the USA) in the PISA OCDE classification of 65 countries. (Latest results: PISA 2012.)

In both the case of France and the USA, it was found that the elites themselves (the top fifth) are sinking fast in their ability to hold a rational discourse in math, science and reading. The differences are not small: Chinese students were found to be three years ahead of their somewhat lamentable Franco-American colleagues.

Moral, and then mental degeneracy has proven a strong force, throughout history. The Greco-Roman empire went down that way. So did the Jin and Song dynasties, let alone the Baghdad Caliphate.

So long live the prodigiously immoral Macron, fit for a brainless age, Caligula should be around the corner.

Patrice Ayme’

Bitcoin: Naïve, Evil & Demented

March 1, 2014

But Some Related Hope Nevertheless Lays Down Deep Inside, Thanks To ABSOLUTE WORTH ENERGY (AWE).

Shall I start with the evil part, or the demented part? Bitcoin is not just a bit con. Bitcoin is obviously a Ponzi scheme. It’s always a pleasure to infuriate geeks and tiny crabs. “Harriet” from Oakland (a Silicon Valley suburb) contradicted me, with typical techie arrogance: “Please learn what a Ponzi scheme is. Wikipedia will help you.”

Wikipedia is to geeks what the bible is to pedophile priests. A Ponzi, or pyramid, scheme is a financial scheme where early investors make money from later investors. That’s surely the case of Bitcoin. In 2011 the value of one Bitcoin rapidly rose from about $0.30 to $32, before falling back down to $2. Those who bought $30,000 of Bitcoins at $30 soon found their so called “investment”, or “saving”, to be worth $2,000. Now in Japan, a Bitcoin bank disappeared. Real money was exchanged for sheer bamboozling.

The Truth About The Public-Private Fractional Reserve System

The Truth About The Public-Private Fractional Reserve System

Geeks tend to be extremely mentally undeveloped outside, while being very smug about their small pathetic idiosyncratic view of the world (in particular all that they do not understand, they turn into a two cent joke; that’s also a characteristic of mathematicians; being one of them, I know the syndrome well).

Geeks believe that there are no empires, and they believe that, if there were some empires, they would be evil, thus irrelevant. They also believe, that they, the Geeks, are not evil, that Wikipedia (in English) is never wrong, and that links are all the truth you need.

Why to step in that mental swamp? Because Bitcoin is a delicious counterexample to the naïve concept of currency.

What’s a currency? It’s a space where an empire allows rewards and promises to be exchanged, backed-up by the empire military might. Fundamentally, a currency is the token system the empire’s soldiers are paid with. Emperor Septimus Severus pointed out to his sons, while dying in Britannia in 211 CE, that was the basis of all.

This is the hard version. This is reality.

To feed the state, the population needs to works, partly, for the state. That’s why taxation was invented. When there is not enough taxation, the state collapses. The best example of that collapse is the Late Roman empire, when there was not enough taxation of the rich to pay for defense (thus the cheap trick to use the Franks to insure defense).

Compare with the only back-up of bitcoin: not an army of soldiers, but an army of con men on Wall Street and other well organized crime. (Organized crime used Bitcoin for money laundering.)

Here is a related example: why is betting so popular in Asia? Because those who bet actually win. Why? So that they will be encouraged to bet some more, throw more money in the system. For which purpose? Because Organized Crime needs to launder money, and betting is how it does it. Losing 20% or so, is the cost of the laundering service to Organized Crime (such as Drug Trafficking).

Is a currency always created by an empire? At first sight two objections come to mind: the Thaler, and the Euro. For both it looks as if no empire was connected to them. However, that’s an illusion. (As anti-European fanatics are finding out, to their horror.)

The Thaler (or Taler or Czech Tolar… hence Dollar) was a silver coin used throughout Europe by many states for four hundred years. ( Etymologically, “Thaler” comes from German for “valley”, same as Neanderthal.) The Thaler was backed by states with serious armies: Austria, the Holy Roman German empire, Prussia, the Netherlands, etc.

A loose coalition of states can just be articulated around the army of just one state. That’s what happened with Prussia, which totally dominated the German speaking world from 1815 (partial dismemberment of Revolutionary France) until 1945 (eradication and annihilation of Prussia).

Similarly, the Euro is (mostly) backed by Franco-German might at this point. (Franco-Germania plus its immediate satellites makes a super-power, albeit one different in nature from the territory-rich USA.)

The naïve fundamental idea of Bitcoin was to create a currency without guns to back it up. Bitcoin one of the most famous Ponzi schemes in history? Some naive “techies” furiously object.

They are the same ones who firmly believe that Yahoo, Google, Facebook, are not, repeat: not, government spies agencies. (Hey, did not their chiefs “protest” to the “commander in chief”?)

If you think the usual suspects, the pirate speculators  of the Wall Street type have nothing to do with Bitcoin, please learn about Wall Street. But Wikipedia won’t help you (Wall Street guys have enough money to make sure Wikipedia says exactly what they want it to say).

On 19 November 2013, the value of Bitcoin on the Japan-based Mt.Gox exchange soared to a peak of US$900 following a United States Senate committee hearing, at which the committee was informed, by the FBI, no less, that virtual currencies were a legitimate financial service. On the same day, bitcoins traded for over RMB¥6780 (US$1100) in China.

How could the FBI be that corrupt? Some will whine. Well, what’s the FBI? An instrument of the state, just like the Dollar. It’s all about a tribe, or its leaders, exerting power.

Now visualize this: the true leaders of the USA are the plutocrats. They devised a tax code so that they don’t pay enough taxes to prevent them to become ever richer (why would they? They are in power, and the rabble does not know it!).

How did the plutocrats acquire so much power in century? Mostly by doing exactly what president Jackson was afraid the Rothschild would do to the USA (and what the Rothschilds claimed they were doing in Europe… not that their fellow big time bankers were not doing it too). In the present fractional reserve system, the state has farmed out the making of money to some private, unelected individuals, the bankers.  The Bitcoinists thought they had found a scheme to do the same. That was naïve. They drunk Ronald Reagan’s idiotic propaganda, and come to believe that We The People could do without a state.

For more than 2,000 years in the West, the government created money (with a face value often much higher than its real value), but tax collecting was farmed out to private enterprises. Now it’s the other way around: tax collecting is public, money creation, private. That’s a big mistake. We have, unsurprisingly, a system in which the money creators, the bankers, create money, that is, power, at will. That abundance of money has allowed them to buy the “democratically elected” representatives.

Thus now, as Rotschild said, the bankers control the government. Plutocracy found that money creation to be its best trick in a long time.

Can we enjoy a loftier perspective? Sure. Money is power, and power is measured by energy. Not all energy is good: blowing up the Earth won’t be good. A way to do that? One could set fire to 20 trillion tons of coal underground, and get plenty of energy, until the biosphere is destroyed. (Some plan to do that.)

So energy expenditure has to be controlled by long term ethics. This is what I call AWE (Absolute Worth Energy). With the enormous computing power we now have, it’s practical. AWE, accounting in useful energy units, is unavoidable, as it’s the only accounting system that will save civilization. AWE would make a perfect Bitcoin (AWEC: Absolute Worth Energy Coin). But of course it would need the support of the government, and that only if We The People pass laws to force it to do so.

Patrice Aymé

Note 1: A big deal  is made by Bitcoin crooks that computers are computing the scheme. In the geeks’ minds, computers are superior souls, above the fray. However, it doesn’t matter that  computers compute in the background of Bitcoin. Pyramid schemes are always about guys making computations in the background.

Note 2: Those who believe in bitcoin don’t believe in history, or sovereignty. That the wealthiest use a parallel currency with artworks, reinforces my point: only the sovereign, wealth, can create a currency durably! The wealthiest can use artwork as a currency in all impunity, precisely because they rule the world (and only the wealthiest are wealthy enough to use that currency). Average bitcoin users don’t rule the world (although governments let organized crime use bitcoin for quite a bit…)… thus their currency will not rule the world, either…

Greed Can’t Lead

February 20, 2010


Many parts of the economy of the USA are falling apart, or getting retarded. It is as if the economy was not an activity worth having anymore.

Even Lawrence Summers, President Obama’s chief economic adviser, an admirer and perpetuator of plutocracy, recognized that 75 percent of the public schools have structural deficiencies and 25 percent have problems with their ventilation systems. Dozens of thousands of bridges are falling apart, and the number of those decaying is growing faster than the number of those getting repaired. Even Russia is building high speed electric rail, and China claims to build 47 such lines, but the USA is not working on a single one. What is going on?

A small power elite has grabbed the debate, and imposed its conceptology, and its axis is maximizing financial profit, independently of any other considerations. Unfortunately for humankind, that financial world is derivative, not primary. It is a convention, not a realization. Thus make belief has replaced what really is. The real infrastructure is disintegrating, precisely because the derivative rules, and, as all mathematicians know, integration is the inverse operation from differentiation.

This is not a silly play on words and concepts: the mathematical analogy here goes all the way; letting financial derivatives rule is basically a gigantic mathematical mistake civilization has been making, in great part because those who decided, or let decide in their name, a bunch of lawyers without calculus background, such as Bill Clinton, were cognitively incapable of understanding the most basic mathematics in play.

To have made financial profit the guiding principle of civilization is, of course, deeply absurd: the fox was made guardian of the hens.

Finance was given extravagant powers in the last two centuries, powers that it did not have in the 4,000 years of civilization before that, and for very good reasons.

This abdication of power made finance the real power behind the throne, worldwide.

As Baron Nathan Rothschild (yes, from the Rothschild family) put it: "I care not what puppet is placed on the throne of England to rule the Empire, …The man that controls Britain’s money supply controls the British Empire. And I control the money supply."

Puppet. That is Rothschild’s word, not mine. It is also reality. A reality that explains the main diversion of most available capital towards the system set-up by Goldman Sachs and the like in the last 90 years, and, in particular, reinforced in the last 13 months.

Indeed, unbelievably for those not in the know, this is the exact same system that brought fascism to Italy, Germany, Spain after World War One, and made Britain, France, and the USA into close calls themselves.

The same system of thought, and actually some of the other same institutions were tender nannies for nascent Nazism (Nazism being just the most outrageous example, outrageous not just because it happened that way, and the horrendous toll, but because the instigating institutional system was capable to successfully cover its tracks. Of the people behind the Nazi scene, only Hjalmar Schacht, a "Lord Of Finance" was put on trial, and promptly acquitted in 1946. But Schacht, directly, and his ilk, more generally, made it so that Hitler got his job).

There are extremely extensive regulations in most economic domains, worldwide, but not so much in finance, although finance is the overall money creating and money allocating system.

Finance created Hitler, even the Soviets. Lenin used to joke that the "capitalists would even sell him the rope to hang them with"; at least one American plutocrat, Averell Harriman, was bestowed with the honor of being made a "Hero of the Soviet Union". Harriman got the top medal both from the Soviets, and the Nazis!

The bank Brown Brothers Harriman was a massive money laundering operation for the Nazis. JP Morgan organized and financed German cartels that propelled Hitler, etc. Unsurprisingly the same lords of finance are back to variations of their old tricks, as they allowed, if not incited, some governments to turn around all sorts of laws. Then, having violated the law, they trade on this, as the ultimate insiders! [Some of this occurred even in the last few weeks, so sure of impunity Goldman Sachs is. I say: write international warrants of arrest!]

So what is happening now, with the invention of financial derivatives, is that most of the world’s disposable capital is manipulated by financial sharks, so as to create fake revenues, to justify their bonuses and overall power wielding. There is therefore no more capital for the real economy (or, more exactly, increasingly insufficiently little).

Hence all financial products ought to be declared unlawful, until proven safe and effective. Financiers already are endowed with the regalian power of creating money (which government bestowed on them in the last 2 centuries, but which they did not have prior).

However, financiers know not enough to create a sustainable economy. Financiers are not engineers, just profiteers. And their search for profits has blinded them to their extravagant privilege, and even to how the universe works. Civilization is an exquisite mechanism, and so is an increasingly stressed biosphere. [This is not to be taken lightly: violating ecology and civilization simultaneously is how the immensely old Maya civilization self destructed, without any exterior input aside from a drought.]

None of this is new in principle. As James Madison, fourth president of the USA put it: "History records that the money changers have used every form of abuse, intrigue, deceit, and violent means possible to maintain their control over governments by controlling the money and its issuance."

This is not new, but we have just reached the breaking point, the point at which civilization and the biosphere are not sustainable anymore, from the activities of that obsolete particular financial system. It brought us Auschwitz, among other disasters. Left in power, it will bring up worse, soon.

There are other emotions than greed. Love, altruism, the passion for understanding, or for a job well done, can guide reason better than the obsession with having what one stole from others as they were looking somewhere else. It is time for reason to guide, and greed to be crushed. Otherwise there will be no world to call home, for anybody, whatsoever.

Patrice Ayme


Annex and background: 1) FINANCIERS HAVE BEEN TELLING US WHAT MAN IS, AND THEY ARE WRONG. They have just been telling us about who they truly are. It’s all about them, not us.

Subjacent to economic theory is neuroeconomics. The hypothesis that the financiers and their political servants made, that profits ought to dominate social organization, was, fundamentally, a neurological hypothesis.

But greed belongs to the basic instinct of the Will To Power, whereas studying neurology belongs to the specifically human endeavor of establishing systems of thought. In other words, the neurologist is a new species, with a new kind of motivation, whereas the financier is an all together different species, animated by the sort of motivation we have seen in the last half a billion years, since there are social animals, and they crowd together, and need a unique leader, to have the single mind that allows them to stick together. This need, E Pluribus Unum, is the fundamental reason for the Will To Power, Nietzsche talked so much about. Will To Power is also the mechanism behind tyranny, oligarchy, and the domination of the Lords Of Finance.

Man is the species that went beyond Will To Power as the fundamental organizational principle of society. Being overlorded by finance is subhuman.


2) The "Nobel" Prize in Economics was given for some equation helping to price some financial call options. It surely will not be given for the simple mathematics alluded to above, which are much more drastic, but much more deserving, as they throw the entire existing financial system out of the window, as deserved for flaming material threatening to burn down the house of civilization.


3) Shacht (economics PhD, 1899) met with the American JP Morgan as early as 1905. Yes, JP Morgan, founder of the eponymous bank, whose present leader is much admired and befriended by Barack Obama (so he says).

Shacht, in charge of finances in imperial Germany occupied Belgium, was summarily dismissed, when his superior, general von Lumm, discovered that Schacht had diverted funds through his present and future employer, the bank (Dresdner), the sort of incest that passes for routine in present Washington.

After WWI Schacht came to lead the Reichsbank, the German central bank, and got to campaign against Germany paying war reparations, and helped set-up the Young and Dawes plans with Wall Street (which made Germany into Wall Street toy and profit generating center).

By 1926, besides supporting Wall Street, JP Morgan and various American banks’ operations, Shacht, the most important Lord of Finance in Germany, entangled with American financiers, through and through, was supporting the Nazis. Soon Schacht organized petitions by top personalities and plutocrats to persuade president Hindenburg to nominate Hitler Chancellor. Schacht’s financial career blossomed further under Hitler, as he headed the Reichsbank and the economy ministry (busy stealing Jews and other victims). He was to rise again after he got cleared of any wrongdoing in 1946.

Not to say that Shacht was thoroughly evil in appearance. He was not. Like Eichmann, his evil was rather “banal” (to use the concept from Hannah Arendt). Like Eichmann, Schacht pretended to keep on befriending Jews under the Nazis, and have empathy for them.

For a plutocratic servant, Schacht was rather personally pristine. But he efficiently pushed many extremely criminal ideas in his lifetime, and thus he was an ideal instrument for the plutocrats. Such people are legions. Instead of attacking them one by one, day by day, emotion by emotion, and anti-idea by anti-idea, it is more productive to attack the system of thought that gave rise to them.

And, as it is, the criminal system of thought is the regalian fractional reserve banking system, which allows private, unrepresentative, unelected, unsupervised money men, the bankers, to create most of the money, and distribute it to whoever they want, to do whatever they please.

Indeed, contrarily to what most people believe, although the state makes physical bank notes and coins, it’s the big private bankers who create most of the money, and, aggravating factor, do it through debt. That system was created, because it is very profitable to those, the plutocrats, who selected the politician-servants who defend and further their interests. That it went on for about two centuries in some parts (Britain) does not mean it is sustainable. Rome switched to a system biased towards plutocracy in 300 BCE, but lost its republic about 255 years later.


The question of how to have a currency, and how to make money to use in the USA, was a central question from 1791 (when up to an amazing 50 currencies were used inside the USA) until the “greenbacks” of the Secession War. Two attempts were made at making a “Bank of the USA”. The second such bank helped create a huge bubble in land and agriculture, to feed Europe, and displace its agriculture, after the old continent had been devastated by the Napoleonic wars (this to say that speculative bubbles can serve imperialism well). Because the “Bank of the USA” got accused of corruption and undue influence of European financiers, it was allowed to expire under president Jackson.


Stimulate The Economy, Not Goldman Sachs.

November 5, 2009


Abstract: Beyond the debate about the stimulus in the USA, the real question is:"Who is the boss?" What is the best method of governance? Can the economy do better with a measure of public thinking? A bit of public planning, for the vision thing, the French way, or only just the entrepreneur-hero, a la Ayn Rand? Rand is found in this essay to be naive, even self contradictory, since, from her own exalted definition, her ultimate role model ought to be Joseph Stalin, precisely who she escaped with her body… but, I would propose, not her mind.

Moreover Rand’s entrepreneur-hero has been swallowed, as Gold Man Sacks. Time for a re-think.


Recent US GDP numbers show that the slide of the USA into a clear and present economic disaster has stopped, no doubt thanks to Obama’s rather small stimulus (small, once one has considered the cuts in states’ spending). The idea of that Obama stimulus was, indeed, to stop the slide into the abyss. But the idea was never to learn to climb out, of the abyss. As Paul Krugman points out, "if we take 3rd quarter growth to be more or less equivalent to average Clinton-era growth, even after 8 years of growth at that rate we’d only expect unemployment to have fallen from the current 9.8% to a still uncomfortably high 6.3%. It would take us around a decade to reach more or less full employment […] that’s well into President Palin’s second term."

The USA is controlled by abyssal, not to say abysmal, critters: they like it down there, in the dark, obscurely financing their dark politicians, somberly advancing their entangled "derivative" plots and variously related conspiracies.

Its leaders want to think of the USA as an Ayn Rand society, where the entrepreneur is supposed to create all that be. Ayn Rand, a philosopher popular in the USA, was an ersatz of Nietzsche rendered innocuous enough for usage by the Chamber of Commerce (she has enthusiastic followers, such as Alan Greenspan, the ex Fed chief, full of bubbles in the shallows of his mind).

One difficulty of the Ayn Rand vision is that without capital, the entrepreneur is nothing, because he cannot do anything. He is at best an engine, without fuel. Then the entrepreneur has to meekly pray on his knees that he will be noticed by his one and only one jealous, greedy and unpredictable God, the Big Banker, who is Too-Big-To-Fail, and Goldman Sachs is its prophet,

Peace be Upon Them. But of course Big Banker does not need the entrepreneur anymore: he can call the White House and the Fed, and bark out orders to manipulate both the markets, and the capital he disposes of, which, as it turned out, is all the capital there is.

As Ayn Rand put it:"I am not primarily an advocate of capitalism, but of egoism; and I am not primarily an advocate of egoism, but of reason. If one recognizes the supremacy of reason and applies it consistently, all the rest follows."

Rand conveniently overlooked the fact that the Big Bankers would end up crushing everybody and everything with the supremacy of their own selfish reason. Rand should have known better. Of her real name Alisa Rosenbaum, Rand had fled Stalin. Stalin started his career by stealing banks at the head of an extremely heavily armed gang (the money fed the Bolshevik party). Stalin ended up being the world’s largest banker, since he controlled all the capital of the Soviet Union, all by himself.

According to Rand, the essence of her philosophy, which she somewhat deviously called "objectivism" is "the concept of man as a heroic being, with his own happiness as the moral purpose of his life, with productive achievement as his noblest activity, and reason as his only absolute." Stalin fit that definition perfectly.

Since Rand held that the only moral social system is "laissez-faire capitalism", this ought to be a wake-up call for those that consider that Rand makes sense, and, or, that it is moral to be opposed to democratic government… which is what they are doing when they claim that one should let the Big Bankers laissez-faire whatever they want with capital… because, as it turns out, Big Bankers control all and any capital. Democracy has fallen into an abyss dug by the Big Banker as "a heroic being, with his own happiness as the moral purpose of his life".

To climb out of the Big Banker abyss, the US government, supposedly by the People, and for the People, should keep the economy from falling back into the pattern of a few unelected, incompetent Big Bankers taking all the decisions, enjoying all the profits, suffering none of the consequences, and being replenished by taxpayers’ money each time they suffer a loss (so that they can keep making campaign contributions and pay for the politicians’ "talent", as soon as the later stop "serving" the nation, and start splurging for themselves.) Since said Big Bankers take all the decisions, and their servants in Washington just implement them, no change has happened that Big Bankers could not believe in.

The debate about the principle and interest of a stimulus is a debate about central planning by elected public officials, versus private development planned by Goldman Sachs, for Goldman Sachs, and for those who pull Goldman Sachs’ strings. (Here "Goldman Sachs" is an all too real euphemism for politically connected individuals who their lackeys in government allow to control and create the nation’s capital.)

France, with its three trillion dollar GDP, has resisted the crisis better than any other large economy. Not by accident. The French socioeconomic model has become very different from that of the present day USA: the short term French stimulus was augmented by a medium term, and then a long term stimulus. (The short term stimulus is publicly financed, longer term ones are increasingly public-private partnerships, where the government’s role is to facilitate private investment in projects that elected officials, and other democratic institutions, plus the People in general, view as of public interest. An example of long term stimulus are the Greater Paris plan, with a giant, fast, automatic 24/7 subway, supposed to break ground in 2012, or various, and many very high speed rail, or nuclear plants, or investment in various physical plants, etc. France will finance some by a National Emprunt.)

Now, of course, France is not on the radar of the officials of the USA; it is the bad example, better forgotten as totally irrelevant (lest it be reclaimed by the American populace).

So GDP grew over a quarter at a 3.5% annual rate, no doubt mightily helped by the financial sector. But GDP Growth is relative to population growth: if the later increases fast, the former needs to grow just as fast, just to stay still. The population of the USA is still skyrocketing: it’s now 307 million, it was just 300 million two years ago (source: CIA). So the GDP number, in the case of the USA, ought to be replaced by the GDP per person.

A lot of the GDP growth in the USA having to do with financial growth (which means nothing to those who don’t get financial bonuses, 99.995% of the population), how is that sort of "growth" to be distinguished from the metastatic growth of anthropologically useless financial "derivatives"? I want to know: "Collaterized Debt Obligations Squared", anybody? Of course no one knows what a "Collaterized Debt Obligation" is, and, a fortiori, a CDO of a CDO, which is what a "CDO Squared" is. Rest assured: it can be way worse: Big bankers have invented "CDO Cubes", the CDO of the CDO of the CDO. The Big Banker is a big hero, and you are a Big Zero. Keep on voting for your dark politicians.

"CDO Squareds" and various even more grotesque "derivatives", that is a lot of what the USA produces nowadays. Rest reassured: it produces increasingly less of everything else. Only American style financiers can buy those "[products" and "financial innovations" from American style financiers, and they have no collateral (Why? Because the total market of derivatives being 800 trillions, 40 times world GDP, no real collateral for these financial notions is imaginable).

Because the best and brightest have been detoured towards organized finance, there has been increasingly precious little best and brightest for any other activity, thus the expertise of the USA in non-finance has faltered. The miserable nightmare called the "Dreamliner" illustrates this best.

What an example indeed. Plane making is a master economic activity, because it leads thousands of the most high tech subcontracting technologies, from energy, to material science, to software or the most sophisticated electronics. The democratic allies won the war against Hitler by bombing his mad kingdom to the point that one million soldiers were manning anti aircraft guns, and still all the Nazi industry had to go underground, or hide in small units in the forest, and, or be destroyed (which it mostly was). In Japan, the US Army ran out of objectives to bomb. Boeing produced thousands of superb bombers, during that war, so mighty and fast, they could fly over Japan without escort. Fast forward 65 years: financiers have done what the fascists could not do, they have conquered Boeing, and hold it captive in Chicago.

To make planes, a company such as Boeing now contracts with the entire planet, especially with Japan and Europe, where the know-how of the real world is (remember, the USA specializes in the "derivative" world).

Boeing wings come from Japan. Huge parts of the 787 aircraft’s body arrive from Italy. Britain delivers engines, and China contributes rudders. France is producing the (carbon fiber) landing gear, doors, glass cockpit, and overall design software ("Catia"). It’s estimated that close to 70 percent of the 787 "Dreamliner" is a dream built outside the United States. That means fewer than 1000 jobs in Puget Sound to assemble the new jetliner (Boeing used to be based in Seattle).

Clearly the "Dreamliner" has become a nightmare for US workers. And it should be a nightmare for prudent and patriotic Americans: do they really want to depend upon the French for airframes in the near future? (Of course depending upon the French would be like depending upon the mother country, it is not a problem; but the USA has only one mother, and depending upon other countries than France, could be a strategic disaster; France knows that there are strategic industries, and acts accordingly.)

Instead of the real world, the USA is becoming expert at the Goldman Sachs world. That American world has become derivative, instead of integral (this is an insider joke for those who know rudiments of calculus, as a few Americans may still do outside of Wall Street).

To insist that private individuals, unelected and incompetent, known as the Big Bankers, who, like God, are too "big to fail", will solve all the problems of the USA, as the present US government persists to believe, requires, first of all, to suspend a healthy sense of reality, and then to leave the US interest rates so low for so long that they will discourage the dozen of millions of would be savers out there in the USA. Then who is supposed to save to finance the USA? The Chinese? How patriotic is such as plot? Why does the USA thinks China is propping up the USA? Because China, differently, from Ayn Rand, is intensely altruistic? Or is it because China has a plan? What would be more normal, for China to have a plan about what to do with the USA, for a country that makes detailed economic and social plans, all the time, and stick to them? Is China crafty like a fox, while the USA is disorganized like a chicken?

If the organization of the economy, and society of the USA, sounds like a mess, it is because it is one: a few individuals, notoriously incompetent, unelected, all no doubt laureates of the Nobel Prize in Greed, for their impudence while robbing the planet, are driving the "changes they can believe in", or rather the lack thereof. The Big Bankers are the best example of this species. But they are not the only one. A good example is the health care debate, where "progress" could happen only if profiteers were promised they would profit some more (so this is the only aspect of health care "improvement" one can be sure of, and polls show that the American People is wise to that, hence the low popularity of the proposed Obamacare, which will force all Americans to fork money over to private insurers, if a "public option" does not pass.)

It is certain that the USA needs to change development models, from hoping that private initiative, and greed, will be enough to organize the entire society, to a touch of central planning, and public empathy, helping the private sector to get focused as needed.

Public planning, and public socio-economic engineering are not un-American. It used to be the case, say under Teddy Roosevelt (who broke the firms that were too "big to fail"), or Franklin Roosevelt (who prevented the banks from playing Wall Street with the public’s money, something reverted by Clinton, Summers and Geithner), or even under republican president Eisenhower (the Interstate freeway system of the USA was a government program, that is a stimulus program, apparently inspired by the earlier German one; in France, "freeways" were developed instead by the private sector, encouraged by the state, and so are not "free"). Of course Johnson created Medicare, etc. That was the good old USA, not in any sense very different from, say, hmm, the French republic. Some of what plutocratic propaganda nowadays views as "European" welfare was actually implemented in the USA first.

If the People of the USA, and its elected representatives, regained control of economic planning and capital, economic growth could be torn away from the casino in the sky of Wall Street, and its unregulated "derivatives", and economic growth could be instead concentrated where the People and the country needs it, in the real world, instead of the derivative world.

Such a stimulation of the real economy would also allow to bring interest rates up, since they are presently exaggeratedly low. Non-existent interest rates for saving accounts punishes savers, aka average Americans, and especially retirees, while punishing the prospects of the workers. Near zero interest rates also risk the danger of a run on the dollar. A run on the dollar is an increasing risk, as the USA is increasingly losing its industrial edge, meaning that the economy of the USA has ever fewer added value goods to sell as the dollar goes down, thus preventing an automatic stabilization of the currency (as foreigners would purchase American goods, which they cannot do, if such do not exist).

As it is, the economic system of the USA has socialism, and even social welfare, for the biggest and the ugliest, those who are free to create and dispose of the capital of the entire nation (not to say the world). That would not be Ayn Rand’s proverbial entrepreneurs, creators armed with visions, as she naively hoped, in another age, but the Big Ugly Bad Bankers, armed with all the world capital, which they just stole, before losing it all, and then stealing it all over again, drunk on greed.

When the Big Ugly Bad Bankers lose it all, the US government grabs, from average Americans, from taxes and borrowing in their name from other nations, all the capital that the ex-capitalists just lost, and reinstates them precipitously in their capitalist role, same as they had before. It’s communism for capitalists, and exploitation for everybody else, and everything else, and, first of all, for the future, including that of the entire planet.

At least Stalin had one good excuse: he knew the Soviet Union would be, within a decade or two, the object of an exterminating attack. So he mobilized all its capital, and his associates and victims with and below him, knew this analysis was cogent enough, with stakes high enough, so they let him get away with it. Notice too that Stalin’s fundamental emotional drive could be viewed as altruistic: saving the Soviet Union. Today’s Gold Men sack everybody for no reason in particular, except that they own the world. Always had, always will. Starting with the White House, and its dark pursuits.

As Meyer Rothschild (a made up name from "Red Shield"), creator of the fractional reserve central banking system put it:"Let me control the money of a nation and I care not who makes its laws." But then what? At least the bandit Stalin or his colleagues, such as Lenin or Trotsky, had higher purposes. But the greedy financiers have none beyond financial greed. When they, and only they, drive the investment policy of a nation, financial greed is all there is in that nation’s future, and that is not enough, as the USA will find, soon enough.

Patrice Ayme

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