Tuesday, July 27, 2010

The Crisis of Capitalism - Animated Explanation


"WE HAVE A DUTY TO CHANGE OUR MODE OF THINKING!"

OK, stop!
Now there is no excuse anymore telling everybody you do not understand what is going on the financial world. Watch this beautiful animation, full with explanations, background information and thoughts. Only 11 minutes and worth while every second of it. Big h/t Maia.

BTW, I found the remarks on the fluctuation in power between the labour (communism) and the henchmen of capital (present day oligarchy) thought provoking.

RSA Animate


Monday, July 26, 2010

The Year America Dissolved






Counterpunch. Paul Craig Roberts
(h/t/ Jesse)

It was 2017. Clans were governing America.

The first clans organized around local police forces. The conservatives’ war on crime during the late 20th century and the Bush/Obama war on terror during the first decade of the 21st century had resulted in the police becoming militarized and unaccountable.

As society broke down, the police became warlords. The state police broke apart, and
the officers were subsumed into the local forces of their communities. The newly formed tribes expanded to encompass the relatives and friends of the police.

The dollar had collapsed as world reserve currency in 2012 when the worsening economic depression made it clear to Washington’s creditors that the federal budget deficit was too large to be financed except by the printing of money.

With the dollar’s demise, import prices skyrocketed. As Americans were unable to afford foreign-made goods, the transnational corporations that were producing offshore for US markets were bankrupted, further eroding the government’s revenue base.

The government was forced to print money in order to pay its bills, causing domestic prices to rise rapidly. Faced with hyperinflation, Washington took recourse in terminating Social Security and Medicare and followed up by confiscating the remnants of private pensions. This provided a one-year respite, but with no more resources to confiscate, money creation and hyperinflation resumed.

Organized food deliveries broke down when the government fought hyperinflation with fixed prices and the mandate that all purchases and sales had to be in US paper currency. Unwilling to trade appreciating goods for depreciating paper, goods disappeared from stores.

Washington responded as Lenin had done during the “war communism” period of Soviet history. The government sent troops to confiscate goods for distribution in kind
to the population. This was a temporary stop-gap until existing stocks were depleted, as future production was discouraged. Much of the confiscated stocks became the property of the troops who seized the goods.

Goods reappeared in markets under the protection of local warlords. Transactions were conducted in barter and in gold, silver, and copper coins.

Other clans organized around families and individuals who possessed stocks of food, bullion, guns and ammunition. Uneasy alliances formed to balance differences in clan strengths. Betrayals quickly made loyalty a necessary trait for survival.

Large scale food and other production broke down as local militias taxed distribution as goods moved across local territories. Washington seized domestic oil production and refineries, but much of the government’s gasoline was paid for safe passage across clan territories.

Most of the troops in Washington’s overseas bases were abandoned. As their resource stocks were drawn down, the abandoned soldiers were forced into alliances with those with whom they had been fighting.

Washington found it increasingly difficult to maintain itself. As it lost control over the country, Washington was less able to secure supplies from abroad as tribute from those Washington threatened with nuclear attack. Gradually other nuclear powers realized that the only target in America was Washington. The more astute saw the writing on the wall and slipped away from the former capital city.

When Rome began her empire, Rome’s currency consisted of gold and silver coinage. Rome was well organized with efficient institutions and the ability to supply troops in the field so that campaigns could continue indefinitely, a monopoly in the world of Rome’s time.

When hubris sent America in pursuit of overseas empire, the venture coincided with the offshoring of American manufacturing, industrial, and professional service jobs and the corresponding erosion of the government’s tax base, with the advent of massive budget and trade deficits, with the erosion of the fiat paper currency’s value, and with America’s dependence on foreign creditors and puppet rulers.

The Roman Empire lasted for centuries. The American one collapsed overnight.

Rome’s corruption became the strength of her enemies, and the Western Empire was overrun.

America’s collapse occurred when government ceased to represent the people and became the instrument of a private oligarchy. Decisions were made in behalf of short-term profits for the few at the expense of unmanageable liabilities for the many.
Overwhelmed by liabilities, the government collapsed.

Globalism had run its course. Life reformed on a local basis.

Paul Craig Roberts was an editor of the Wall Street Journal and an Assistant Secretary of the U.S. Treasury. His latest book, HOW THE ECONOMY WAS LOST, has just been published by CounterPunch/AK Press. He can be reached at: PaulCraigRoberts@yahoo.com

Thursday, July 15, 2010

YOU WRITE WHAT YOU'RE TOLD!

Just listen to the spin! I wonder how this Hilsenrath guy sleeps at night. He copied and pasted the spin directly from the Fed's emails. No criticism, no thinking..nothing. As long as the boss is happy. Just plain BS while America is burning.

*...* are mine

Wall Street Journal, by Jon Hilsenrath

Federal Reserve officials are beginning to debate quietly what steps they might take if the recovery *surprisingly* falters or if the inflation rate falls much more.

Fed officials, who meet next week to survey the state of the economy, believe *a durable recovery is on track* and their next move—though a ways off—will be to tighten credit, not ease it further. Fed Chairman Ben Bernanke has played down
the risk of a double-dip recession and signaled *guarded confidence in the recovery*.

But fiscal woes in Europe, stock-market declines at home and stubbornly high U.S. unemployment have alerted some officials to ...

Friday, July 9, 2010

Indictments, prosecutions, convictions, and imprisonments


Prison population rate (number of prisoners per 100,000 people)
Source: International Centre for Prison Studies (2006)




<--- Welcome in prison, just shift up.

Tremble, Banks, Tremble

The key to financial recovery: restoring the rule of law on Wall Street.


What happened?

First, there was a stand-down of the financial police.
Second, the response to desupervision was a criminal takeover of the home mortgage industry.
Third, the counterfeit mortgages were laundered so they would look to investors like the real thing.
Fourth, the laundered goods were taken to market.

Upon taking office, President Obama had a chance to change course and didn't take it.

In this way, the financial sector remains a fatal drag on the capacity for strong growth. And the financial reform bills about to clear Congress will not cure this.

What to do?

To restore the rule of law means first a rigorous audit of the banks and of the Federal Reserve.

Indictments, prosecutions, convictions, and imprisonments.

A reconstructed financial system should finance the reconstruction of the country.


Read the article of James K. Galbraith in the New Republic here


My comment: Won't happen: we passed the point of no-return. It is too late.

Sunday, July 4, 2010

Inflation Is A Secret Tax.




Ever wondered what is inflation?
Ever wondered how to stop inflation IMMEDIATELY?

Stop searching. Here is the answer explained within in 1minutes and 30 seconds by Milton Friedman.

Watch it first. Then read on:

Think it through: the more the government prints, the higher the inflation. Say the government prints 20% more money than the economy grows (say: 6%). Inflation: 14%.

The government can now spend 14% more, no budget, no transparency, nothing.

But your money has 14% less value. You just became 14% poorer.

That's why inflation is also called: "a secret tax".

You see, the money in your pocket and your bank account is not yours, It belongs to the government. They can do with it what they want and this includes making it worth less. Your opinion on this is of no value. But you can be assured that our money system has a winner. Which is certainly not you.

This is precisely the reason you should own gold. Gold belongs to you. It is YOURS!