Madness or The Price Is Wrong or Neo Is The One

madness

 

The following is an excerpt from Crackernomics 2: The Structure Of Money

 

‘Nowadays people know the price of everything and the value of nothing’.

Oscar Wilde

 

Modern money operates as a universal Lingua Franca – a common language. It has gained this pre-eminence by promising ordinary people a way of understanding an otherwise incomprehensible world

 

But the understanding of reality that modern money offers is warped and mutilated. Modern money actually offers a facsimile of knowledge – an hallucination of the way the world is.

 

The ideology and rhetoric of modern money was created to seal this hallucination off from physical reality. This ideology permanently and irrevocably FRAGMENTS reality so that the cult of modern money cannot be challenged by human experience.

 

The ideology of modern money exists to mutilate your mind by partitioning it.

 

Priests of modern money claim that anything outside of their money model world is irrational and essentially meaningless. They insist that everything experienced outside their framework must be disregarded.

 

The priests of modern money claim that their parody of reason is the end point of the search for universal truth. They say that all other conceptions of value, truth and meaning are primitive, parochial and limited and in the end they will be swallowed up by the cult of modern money. They seek to persuade that the rise of this cult is irresistible because it is Progress.

 

A Kind Of Magic

 

The modern money knowledge hallucination is predicated on creating a description of the world that does not require any actual understanding of the physical characteristics of this world.

 

This claim to produce knowledge without understanding is a magical claim. To produce knowledge from nothing is alchemy- as preposterous as the claims of a fairground clairvoyant.

 

Take a moment to think about this. Across the globe there are vast markets which comprise of commodities being traded by people who in reality know literally nothing about these commodities. The system works because these traders are not required to know anything.

 

The speculative method of extracting wealth is predicated not upon understanding any particular commodity but upon predicting the prices that markets will create for commodities and reacting to them.

 

In other words market speculators are not trading on the knowledge they have but rather trading on the knowledge that others do not have!

 

For instance, a commodity trader is not required to know anything about an actual steak and its physical value to know what it will be ‘valued’ at. If he knows that any particular group of customers only has £5 to spend on steak, then he knows that the price these customers will pay for steak will not and cannot be more than £5. The steak will be ‘valued’ at worth £5 or less, irrespective of any actual physical value and worth.

 

This is an insight into ‘price discovery’. Prices are created not discovered. Contemporary prices are a consequence of previous prices. Monetarism is predicated on this observation. As such it is a repudiation of classic capitalist ideology.

 

Price ‘discovery’ is an illusion in the same way a student takes LSD and ‘discovers’ a whole new world previously unseen. But the truth is that he has not discovered anything. He has created this world by means of introducing a chemical into his brain.

 

Well you might say, how come descriptions of this LSD world seem to be so similar when people recount them? I am afraid the answer is that most people lack the imagination to create anything novel, either under the influence of drugs or not..

 

The money/price hallucination is another created virtual hallucination. It allows the raw resources of the world to be leveraged to extract value by people who will never actually see anything of these resources and who never have to directly face the consequences of their market manipulation.

 

This process reaches a new high (or low), point in HFT-high frequency trading. Modern networking computer technology allows analysis and manipulation of the market to be carried out in amounts of a nanosecond. Now no longer even knowledge of the other market participants required, only knowledge of the technical structure of the system expressed through computer code.

 

Is HFT the end game in the cult of modern money? Or is it possible that money can become even more sealed off from physical reality even as its dictatorship over lives becomes ever more tyrannical? How has money become transported over time from the population to a hermetically sealed dictatorship isolated in an intellectual palace?

 

The claim is made that the modern money hallucination is based on reason and reality. This is the historical link between the modern world of the money hallucination and the ‘Enlightenment’ which was supposed to be founded on reason.

 

The religion of Economics preaches the story of progress from the concrete world of the senses to the transcendent heaven of modern money. How is a system that was supposedly based on reason transformed into one openly based on ‘animal spirits’, fear and greed?

 

Understanding the relationship between the two rests on the difference between a proper description of reality and a money description of reality.

 

Proper Description

 

Here ‘proper’ is not intended as some kind of value judgement. It means to describe real artefacts in the real world using real descriptors- a physical description. A proper description of any particular object has two elements.

 

The first dynamic of proper description defines the commonality of objects. In the case of an apple we can describe an apple as ‘plant’ and then as ‘fruit’. Using the plant…fruit descriptor we associate the apple within an ontology, a systematic description of plants.

 

The second dynamic of description differentiates an object as different from other objects within a class. e.g. Fruits are consistently different enough from all other plants to be defined in their own right. ‘Apples’ are consistently different enough from all other ‘fruits’ to be seen as something definable in their own right. We can further subdivide ‘apples’ into different varieties and then further refine the subdivision process.

 

In theory it should be possible to create a description for each individual apple that locates it within the entirety of nature- by which I mean not just an abstract description of type, but to locate a particular apple within time and space.

 

We start from broad categories:

 

Plants- subdivided to Fruit – subdivided to Apple- subdivided to Variety- subdivided to Location- subdivided to Farm – subdivided to Tree – subdivided to Time of harvest.

 

When we carry out this process something peculiar happens along the way. Numbers begin to substitute for names. There are no longer absolute descriptors (names), such as ‘Apple’ only relative ones; weight, colour, sweetness etc. These require relative numeric values.

 

As we move towards capturing a specific instance the uniqueness we seek becomes lost in relativity. The harder we seek ‘uniqueness’ the more it is revealed to be a chimera. Names are subdivided into numbers. But then numbers are subdivided into codes.

A code is in fact a name constructed from numbers. But where numbers are real e.g. they are descriptors, codes are not real (they are names), and require descriptors!

 

If I describe an apple as the fifth apple picked from a tree, I am not describing something uniquely real about that apple. I am describing something relative- something that only has meaning in relation to all the other apples on that tree. ‘Five’ is a number and it is real; ‘Fifth’ is a code and it is not.

 

And once we have allowed the creation of number/code/names all Hell breaks lose shortly after.

 

The number 400 is divisible by the number two to create the number 200. But the code/name/descriptor 400 is also divisible by the number 2 to create the code/name/descriptor 200. The meaning of this observation is that codes can be made to parallel the logic of mathematics.

In other words CODES can relate to each other numerically and consistently the same way that NUMBERS can. But they are NOT required to be defined and relate to each other LOGICALLY the way that NAMES are. This means that results can be produced from manipulating codes that are consistent but not logical or real.

 

Codes operate in the gap between names and numbers. This is where the hallucination is situated.

 

You can numerically binary encode an image (description) of Superman in a Computer Generated Imagery program. And then you can numerically manipulate that code to make him ‘fly’ in encoded space. The description of his flight will be entirely consistent within the encoded universe. But it won’t be real. It will be a model.

 

When that model is intercut with ‘real’ live action you have real problems telling what is real and what is not. This is how CGI/Live action movies work.

 

At the moment we are not required to act as though a Superman film is a real documentary. (Well, for now anyway). But we are required to act as though climate change models are real. And climate change models are essentially the same thing as a Superman film, real footage intercut with numerically manipulated code descriptors.

 

Climate change models take real stuff and code it. Then they produce a film, (a model), based on that manipulation. The film IS consistent. It DOES make numerical sense. But that does not mean it is logical or real.

 

In order for the climate change ‘model’ to be plausible it has to be cut off from the real physical world so it cannot be challenged by experience. And so it is. It is placed in the future where our real physical world experience cannot go.

 

Superman lives in Metropolis. Batman lives in Gotham City. Climate change lives in the future.

 

The same applies to price. Price is code masquerading as number. As a consequence modern money ‘value’ is also code masquerading as number.

 

Most of the people reading this will be well informed enough to know and understand that the ‘Federal Reserve’ is nothing to do with the Federal Government of America. It is just a name.

 

But do you also understand that the ‘10’ printed in the corner of a dollar note is not actually a number but also just a code/name? And the ‘$1’ price tag printed on a stick of celery at your local market is also actually a code and not a number?

 

The implications of this are massive and staggering.

 

Just as the name ‘apple’ is used in England and ‘pomme’ is used in France and ‘manzana’ is used in Spain, so this artefact is given a different price in all these different territories.

 

What is the relationship between the different names used in the different territories? Is it logical? It is the same relationship as that between the different ‘prices’ for this artefact. There is no real, logical relationship.

 

Outrageous nonsense! I hear you cry. There is a real consistent relationship between prices and the value of money notes. They vary but they make sense in national and international markets.

 

No. There is a consistent real relationship between NUMBERS and codes steal this relationship and use it to masquerade as logical, rational and reasonable under cover of it. It is a parody of reason.

 

Money value is something that various disparate artefacts are held to have in common. As Oscar Wilde famously said :

 

‘Nowadays people know the price of everything and the value of nothing’.

 

It is hard to over emphasise the profound intelligence of this remark.

The deeper truth is that we know the price of everything precisely because we don’t know its value. Price is the only way that the Germanic cult of Capitalism can make practical, intellectual and even moral sense of the world.

 

We don’t know the actual value relationship between a red pepper and a box of matches. But if the pepper is priced at 50p and the box of matches at £1 we say that the matches are twice as valuable as the pepper. Of course this is absolute gibberish, but the world is made to conform to this madness…

 

In another example, two things that cost the same are said to be the same. This gives rise to the outrageous example of the inflation substitution calculation in America.

 

When any particular item in the basket of goods used to calculate the rate of inflation actually inflates in price, it is simply substituted for an alternative at the old price! When steak becomes too expensive to fit the ‘inflation rate’ it is removed as an embarrassment and hamburger is substituted. Quality is not a concern when inflation substitution is made.

 

This outrageous abuse of reason works on the basis that anything at a given price is the equivalent of anything else at that same price. Reason, life and the world are mutilated so they fit the price hallucination.

 

I will finish with a broad description of price rhetoric.

 

Say you wish to buy a vacuum cleaner. You are presented with a list of three possible vacuum cleaners priced at M50, M80 and M600. (M is any standard unit of currency)

 

The prices given generate two categories of apparent ‘information’:

 

1.’Information’ about each particular vacuum cleaner in relation to the others and also

 

2.’Information’ about vacuum cleaners in general as a group of products.

 

Information about each particular vacuum cleaner in relation to the others

 

That M50 and M80 are similar but that M600 is considerably superior in some way; as expressed in price. You can understand this as the quantified (of course no actual ‘quantity is identified, just a code name), difference between a standard saloon and luxury sports car.

 

’Information’ about vacuum cleaners in general.

 

The value of vacuum cleaners in relationship to boxes of matches or whatever. e.g. all vacuum cleaners as a class of product are more expensive and thus more valuable than all boxes of matches as a class of product.

 

It follows from this that if we alter the price list relationship between the three vacuum cleaners we say something different about these relationships and generalities. The price mechanism generates a grammar and a logic upon which the rhetoric of marketing is based.

 

However, the problem is that this information is based upon assumptions about price that are not necessarily true. In order to create a semblance of general logic they assume:
The seller wants to sell at any particular price.

The seller wants to sell as many elements as possible at any particular price

Each price describes an independent entrant into the market

There is a relationship between price and intention

 

But it is often the case that:

 

The seller does not want to sell at any particular price.

The seller does not want to sell as many elements as possible at any particular price

Each price does not describe an independent entrant into the market

There is no relationship between price and intention

 

In other words the market cannot really capture the reality of intentions: Sometimes the market is ‘rigged’, which really means sometimes market participants do not act in the way that the priests of the ‘free’ market claim they should act.

 

And so the free marketers relaxed laissez faire attitude is transformed into rage and they rush to pass laws to protect free markets from… freedom. The free market always becomes a dictatorship of rules to make sure it remains free.

 

 

At the conclusion of the Matrix the ‘Neo’ Man discovers that the whole universe he has been living in is the expression of code. It has consistency but it is not real. Once he sees the world as merely code he can manipulate it in any way he wishes.

 

The Matrix was all about financialisation.

 

It was made in 1999, just when financialisation was really getting going.

 

What else would it be about?

BLINK: Apr 12 2016

 

eye

Nose on your face..

 

In this piece Mr Edelman says:

 

‘Remarkably, today the derivatives positions held by the large banks approach 10 times those of 2007-2008. In four banks alone, they exceed the GDP of the entire world. This is the interesting consequence when unchecked risk management rests in bankers’ hands.’

 

Is this a co-incidence? If it is not a co-incidence, then it must be intentional musn’t it? What could be the intention behind creating ten times as many derivatives as there were in 2008?

 

It seems that central banks and politicians must want lots of derivatives what else could this mean? Why would they want lots of derivatives? What is it about derivatives that central bankers and politicians like? If you visit USE regularly I think you already know…

I’m the real-life Gordon Gekko and I support Bernie Sanders
Asher Edelman

The potential for a depression looms on the horizon. The Vermont senator is the only candidate who can stop banks from spiraling out of control again

 

http://www.theguardian.com/commentisfree/2016/apr/12/real-life-gordon-gekko-supports-bernie-sanders-wall-street-banks-regulation

 

Things Fall Apart..

 

This diagram shows in a very clear and succinct manner the point I have been making in Vector History about capitalism and financialisation DISINTEGRATING society..

 

@ian bremner

 

The best explanation so far

 

 

Head-Brick Wall

 

American Trotskyists can’t seem to understand why information like this doesn’t provoke a move towards ‘class’ politics but instead provokes a move towards what they call ‘identity’ politics. Until they address the arrival of CULTURAL CONSTITUENCIES, they are going to have to continue stumbling around in the dark..

Life expectancy gap between US rich and poor widens
By Jerry White
12 April 2016
http://www.wsws.org/en/articles/2016/04/12/life-a12.html

 

Roll over
Reuters coverage of the Syrian theatre of war just seems to get more ridiculously lopsided by the day..

Syria’s Assad shows no willingness to compromise
CAIRO | By Samia Nakhoul

 

http://uk.reuters.com/article/us-mideast-crisis-syria-insight-idUKKCN0X50O0

 

Cake or Ha’penny
 

You can have millions of pretend jobs or you can have productivity growth but you can’t have both at the same time…

Britain suffers biggest downturn in productivity since the financial crisis
Figures a bitter blow to hopes the UK is finally escaping the stagnation that has bogged down the country since the banks crisis

 

http://www.independent.co.uk/news/business/news/britain-suffers-biggest-downturn-in-productivity-since-the-financial-crisis-a6974011.html

 

Uppity
 

This black gentleman might not quite be on the ball about everything, but he is having a go at thinking about Eurasia etc., so good for him. He seems to me like a reasonably nice, relatively harmless type.  But oh dear, check out the response..

 

Imagine a world without whiteness

Professor Calls For “Whiteness” to be “Abolished”
 “We need to….demolish the whole concept”

Paul Joseph Watson
Prison Planet.com
April 6, 2016

Professor Calls For “Whiteness” to be “Abolished”

 

Living History

 

This is what ancient Greek democracy actually looked and sounded like. It wasn’t Lawrence Olivier and Marlon Brando walking about in bedsheets making speeches over Gina Lollobrigida, it was this: Rape, torture, cruelty and murder. All over Athens, all over Sparta, all over. Next time someone tries to give you the spiel about how noble and great democracy was/is, show them this….

 

‘House of horrors’: Police find apparent sex slave chained to stripper’s pole in Detroit home

 

By Peter Holley April 6 Follow @peterjholley

 

When police searched the run-down, two-story house on Tuller Street in Detroit, they found something that took even longtime cops by surprise: a woman chained to a stripper’s pole, with a padlock around her neck.

 

https://www.washingtonpost.com/news/morning-mix/wp/2016/04/06/house-of-horrors-police-find-apparent-sex-slave-chained-to-strippers-pole-in-detroit-home/

 

 

 

Blink

eye

So much stuff in the news and it goes by so quickly. Blink and you will miss it. Here is some stuff you should see..

New Welfare State

We know the British Welfare State is being re-engineered to meet the need of the coming century. Here is a further illustration of what that restructuring will look like.

Top UK earners to receive as much in handouts as poorest by 2020

New research by the Fabian Society shows generous tax breaks have created a ‘shadow welfare’ for UK’s wealthiest 20%

http://www.theguardian.com/politics/2016/apr/01/top-uk-earners-to-receive-as-much-in-benefits-as-poorest-by-2020

Good Money

Money is a social commons, ubiquitous and free. MONEY IS NOT ANY PARTICULAR THING- IT IS A THING WE DO.  It can be created by communities to serve the interests of those communities or it can be created by speculators and financiers (derivatives) or wannabee speculators (Bitcoin) to serve their own narrow interests. Here is an example of GOOD MONEY

How to Make Farmers Markets Accessible to the Poor

To ensure fresh produce is not a privilege reserved for the rich, farmers markets need to accept SNAP benefits.

 

http://www.alternet.org/food/how-make-farmers-markets-accessible-poor

Whiteism

The German author of this piece openly admits that the ‘Wilkommenkultur’ open door refugee policy was a gambit to establish Germany’s MORAL LEADERSHIP of Europe. Presumably on the basis that any kind of leadership is better than none….

Germany’s refugee crisis has left it as bitterly divided as Donald Trump’s America

We thought we could handle the migrant numbers – I invited them into my home. Whatever happened to our welcoming spirit?

http://www.theguardian.com/commentisfree/2016/apr/01/germany-refugee-crisis-invited-into-my-home-welcoming-spirit-divided

PERMANENT CREDIT ECONOMY

Transitioning from a consumer economy underpinned by the efficiency savings that a welfare state produces, to one where the necessities of life are obtained on credit..

Britons raid savings to fund spending as economists warn recovery ‘built on sand’

http://www.telegraph.co.uk/business/2016/03/31/britons-raid-savings-to-fund-spending-as-economists-warn-recover/

 PYRAMID HISTORY:

The Enlightenment

http://www.spiked-online.com/spiked-review/article/the-spectre-of-democracy#.Vv9sQk9vXZJ

KNOWLEDGE DEMOCRACY:

Science (Knowledge Democracy), has not had a lot of luck pushing seven year olds around. So it reached the conclusion that it is easier to bully three year olds. Now THAT is the scientific method…

Evolution makes scientific sense. So why do many people reject it?

Child psychology studies have identified a natural human bias toward the theory of intelligent design, and pose a solution: teach evolution earlier

https://www.theguardian.com/science/head-quarters/2016/mar/31/intelligent-design-popular-evolution-creationism

GERMANIC LAND DEMOCRACY 1:

Why do the Tories want to hide who owns our country’s land?

http://www.theguardian.com/commentisfree/2016/mar/30/tories-land-registry-sell-off-open-data-privatisation

DEMOCRATISED MONEY

If you wonder why so many people have difficulty understanding the difference between PRIVATELY ISSUED MONEY (Derivatives) GOVERNMENT ISSUED MONEY (Currency Notes), PRIVATELY ISSUED DIGITAL MONEY (Cryptocurrency) this might help explain things…

Being an expert literally changes how you see things

https://www.washingtonpost.com/news/wonk/wp/2016/03/29

GERMANIC LAND DEMOCRACY 2:

Any democracy exists for exactly as long as it’s constituent members benefit to the same extent from that democracy. Once that equality of benefit ends, the democracy is replaced by hierarchy. All ‘democracies’ naturally and inevitably give way to hierarchies…

‘Kensington-on-Sea’ goes to the polls over posh second homes

telegraph.co.uk/news/2016/03/28/kensington-on-sea-goes-to-the-polls-over-posh-second-homes/

DEMOCRATISED MONEY:

Japan has to form a currency bloc with China. There really is no other option

Can anything rescue Japan from the abyss?

telegraph.co.uk/business/2016/03/27/can-anything-stop-japan-from-falling-into-the-abyss/

Japan’s negative rates a looming headache for central bank

The Birth Of The New Welfare State

george

 

Although not often headline news and analysis, one of the main purposes of quantitive easing was supposed to be to provide national economies with the space to undertake comprehensive economic and social “Restructuring “.

 

The Bank of International Settlements, the International Monetary Fund and a whole host of governmental and quasi-governmental international bodies, have repeatedly insisted that national governments do more to implement ‘restructuring.’ They have constantly complained that national governments have failed to undertake restructuring at a sufficient pace.

 

But despite being vocally interested in the pace of restructuring, these bodies have generally been quite reticent in spelling out what restructuring actually consists of. Nevertheless I suppose that you and I could hazard a pretty good guess at what is meant.

 

Privatisation, running down and removing public services, deregulating employment conditions, opening economies to mass migration, all form the core of restructuring. If this is indeed what restructuring is, it could well be argued that no nation is further along this road than Britain.

 

Britain and the City of London can rightly be considered to be at the very epicentre of Financialisation and the Credit Crunch that followed. Britain undoubtedly suffered some of the most profound economic and political shocks as a consequence of the Credit Crunch.

 

And Britain has been at the forefront of implementing ‘austerity’ as a response to the Credit Crunch. Indeed, Britain remains virtually alone in the developed world in adhering rigidly to the rhetoric and the logic of austerity when economists and politicians in so many other nations have abandoned it as a temporary response to the immediate aftermath of the collapse.

 

This was the context in which we saw so the unveiling of the latest in a series of austerity budgets by Chancellor of the Exchequer George Osborne yesterday, Friday the 16th 2016.

 

Since cutbacks in government provision of welfare for disadvantaged groups in society (including basic disability payments), have become increasingly stringent there has been something of a push back in the media and society generally.

 

But this media furore over headline disability cuts has tended to obscure the real significance of the budget, which is that further major elements of restructuring are being introduced into the British economy.

 

Unsurprisingly perhaps, most people don’t realise the significance of restructuring, and media outlets don’t find it ‘sexy’ in comparison with the headline welfare cuts. But the truth is, the measures that have been introduced are indications of a profound change in the way that society in Britain is being organised. Much more significant than any relative monetary change to the nations accounts, no matter how large or small it might be.

 

The two most striking examples of restructuring in the latest budget have taken place in the realm of money and education.

 

Money Saving and Interest

 

Ever since  the implementation of Quantitive Easing, the policy of zero interest rates has meant that it is effectively impossible for ordinary savers to receive interest payments on the deposits they make in the banking system.

 

For over seven years now, savers have been told that the government issued money that they hold no longer warrants interest on deposit. It has been estimated conservatively that this has cost around £160 billion to the savers of Britain.  Fortunately for the Monetarists in charge of the bank of England, the savers of England seem to be prepared to suffer this loss with relatively little complaint.

 

However, it is clear that this state of affairs could not continue indefinitely. The relatively old and wealthy voters who constitute the backbone of Conservative support in England have traditionally relied on interest on savings and investments as the source of income.

 

Zero interest rate policy has meant that these savers have had to forego interest in the traditional sense or else put their savings and investment in far riskier endeavours such as the stock market. This has been the cause of some increasing disquiet.

 

In response to this problem, a previous Conservative administration decided to offer what was effectively a government backed savings investment scheme that guaranteed ‘quasi-interest’ in the form of direct government ‘top-up’ payments and tax relief on savings. This was called an ISA scheme.

 

In addition to this, the government also allowed retirement savers to withdraw all their savings from state sponsored retirement schemes at a certain point and to do with them what they wish.  In other words the policy was: ‘Since we can no longer guarantee interest payments we can at least leave you to be free as you do to do as you wish with your own money and get what you can out of it.’

 

Seen in isolation these two measures could just be short-term political fixes for the problem of older generation savers who could no longer get an adequate return on their savings.

 

But in this most recent budget, Chancellor George Osborne has expanded and developed this scheme in such a way as to indicate that it and schemes like it, are going to become an integral part of the way that money is ‘saved’ in Britain.

 

The new scheme is aimed at ‘young people’ of ages 18 to 40.  And more importantly it is being marketed as a lifetime saver scheme. A lifetime alternative saver scheme? This implies that there is not going to be any significant interest paid on deposits in the lifetime of the young people who live in Britain today!

 

It is worth taking a moment to consider the significance of the implications of this statement.

 

This scheme is meant to provide a savings route for young people to enable them to buy a house or pay towards their retirement. And it is based upon the idea that these young people will not be able to achieve an adequate rate of interest return from any of the traditional sources in economy – for the space of their entire working lifetime !!

 

So it is absolutely clear that for at least the next 40 years or so, the Chancellor of the Exchequer sees no possibility that government issued money will be able to generate sufficient level of interest to pay for housing or retirement for a significant section of the population.

 

I have previously explained the significance of the 2- 2 ½ % interest rate that has become a de facto predicted norm in the Anglo Saxon economies. It is half the general average, indicating that from now on, government issued money will service only half the available economy. Privately issued Democratised money will service the other half.

 

Given that real terms inflation will continue to run at 2% or over, 2 – 2 ½ % government issued money interest rates are effectively a bust. So the government will have to directly step in and provide an alternative savings route.

 

But the key point to understand is that the extra donated into the savings pot of individuals IS NOT INTEREST. Interest on Government Issued Money is an idea whose time is gone. This scheme is clearly a means to transition to something else.
Education

 

The significance of the Government saving scheme will gradually become apparent over the coming years. The significance of changes to the way that education is provided is as clear as a bell today.

 

Announced government policy focuses on two major changes:

 

1.Forcing schools become autonomous ‘academies’

  1. Taking parents off school governing boards

 

Before I examine these changes in more detail I first want to refer to what I wrote in Crackernomics as part of ‘2023’; a set of predictions dealing with some of the most important developments in the coming decade:

 

‘Title: 2023: CONTROL AND FUNCTION: Open timetables and Permeable

schools.’

 

Core or control education universally provided by the state will increasingly

centre on enforcing social control. Control education, whose purpose is to

‘socialise’ children in openly political ways will be the core of a 3 day school

week.

 

Parents who can afford it will have the option of paying directly or indirectly

for more elective days; increasingly these will be on different campuses from

control based education.

 

An increasing number of key skills will be designated as elective: put in

straightforward terms, ‘A’ level equivalence (pre college/university education-AP) will be effectively privatised.

High school holding pens described as technical clubs and vocational organisations run by charities and local government will begin to appear for those people who cannot afford supplemental education. They will be a place to warehouse children whose parents have to work radically longer hours.

 

To offset opposition and build a new social constituency to defend the changes,

governments will start offering educational discounts on elective education

(probably based on reduced interest rate loans) for: Military service reservists.

Volunteers for public events such as the Olympics. Key sections of workers in

health care, (mainly because will no longer have adequate occupational pensions

or working conditions).

 

SPECIAL FORECAST

 

These territorial paramilitaries will be the backbone of the emerging social order.

 

To summarise I am predicting that the social function of education is to be radically altered to fit the newly emerging requirements of society .

 

Social Control and Social Function

 

For most of the last century public education was designed and implemented to produce workers who could interact with a mass production society. It was broadly agreed across the political spectrum that the social good of the pupils and the social good of society was the same.

 

Mass production education was agreed to be the social function of education. Pupils receive the benefits of basic literacy and numeracy etc which was held to be an advance over what they had before. This basic technical education would benefit society generally through increased productivity and would therefore be paid for out of taxation

 

Since pupils now had literacy and numeracy they could also more effectively be indoctrinated in the forms of ideology and propaganda that would be required to control a new growing urban population.

 

But now the idea that broad swathes of the population will be provided with a technical education that they will never be able to apply because of lack of suitable jobs is simply not credible.

 

The market, driven by technical innovation, requires an ever decreasing number of ever increasingly more specialised technicians surrounded and serviced by an ever growing cohort of generalised menial workers.

 

In this environment, the social function of education is being redefined to conscript the technical cohort and control the menial cohort. In other words, to prevent the menial cohort becoming independently economically and politically active for as long as possible. This takes the form of an extended education that teaches next to nothing. And when this cohort does become economically and politically active to make sure that it can pose no threat to the new order.

 

So the ‘education’ element is being separated out from the ‘indoctrination’ element.

 

Since education can only benefit a relatively small technical cohort (because of reduced employment opportunities), it will be rationed. How will it be rationed? The same way everything else is; through the price mechanism; it will be privatised.

 

But the indoctrination component still benefits society as a whole (which is to say it benefits the elite in society). Especially now that the menial cohort can never expect to have access to high paying technical jobs. If they can’t have a life they can have propaganda instead. So that will be paid for out of taxation.

 

But there is a further wrinkle that will have to be negotiated… No matter how dumbed down the menial cohort is, some of them may figure out what is going on…

 

And that is where education will increasingly function as an overt way to distribute social wealth.

I made the statement that:

 

‘…territorial paramilitaries will be the backbone of the emerging social order.’

 

And that will indeed be the case. It would be a mistake to imagine that the ‘welfare state’ will be completely dismantled in the coming years. It is far too valuable a tool of control for that. But it will be redefined and reconstituted to create a social constituency whose purpose will be to enforce social control throughout society.

From this perspective we can now understand the long term significance of the policy of making schools into academies and removing parents from govenorship roles.

By making schools directly answerable to the central state as academies they are transformed into a collective resource that can be integrated into the model I describe above. Individual schools and groups of schools can be designated as warehouse or education schools as part of a nationwide system. Since there will no longer be any  local control, the chances of effective political resistance at a  local level are minimised.

The same is obviously true for the removal of parent input. Any resistance from parents who begin to see what is being done is effectively short circuited.

The New Welfare State is a subject I will return to in the near future….

Refugee influx to drive up housing prices in Germany – Postbank — RT Business

WE ARE THE PEOPLE

Not Any More You aren’t!

See: The Real Name Of The Game

https://unitedstatesofeverywhere.wordpress.com/2016/03/03/the-real-name-of-the-game/

 

The growing number of migrants is starting to affect Germany’s property market as a lack of housing will inevitably lead to prices rising, according to Postbank.

Source: Refugee influx to drive up housing prices in Germany – Postbank — RT Business

Notes on the Standard Narrative..

 

http://www.theguardian.com/business/2016/mar/05/timeline-seven-years-of-record-low-interest-rates-bank-of-england

The Guardian recently published a potted history of interest rate setting and associated financial shennanigans, seven years after the start of the Credit Crunch. I have reproduced it here in full along with a few comments of my own (in bold) offering an alternative interpretation of central bank policy and what its real purpose is.

From ‘The Guardian’

By Katie Allen Saturday 5 March 2016 07.00 GMT

 

Seven years ago on Saturday (5 March), the Bank of England slashed interest rates to a record low of 0.5%. At the time, the cut and plans to pump billions of pounds of electronic money into the economy seemed like an emergency measure to cushion the UK from the global financial crisis. But borrowing costs are still at their record low and amid warnings that a new global slump is around the corner, Bank policymakers show no signs of raising rates any time soon.

 

We look back over seven years of ultra-loose monetary policy:

March 2009: The Bank of England cuts interest rates from 1% to 0.5%, the lowest since the central bank was founded in 1694. Policymakers also push the button on a quantitative easing programme – which will pump tens of billions of pounds of newly created money into Britain’s troubled economy.

 

‘The lowest (interest rates) since 1694’ – effectively since the beginning of capitalism.

 

If the base interest rate reflects the value of a national currency, and a national currency reflects a nation and its economic system, this is another way of saying that as of March 2009 the net added value of three centuries of modern capitalism is zero!

 

‘Pump tens of billions of pounds into…’

As though something is actually being put into the economy instead of the value of existing money being debased by ‘printing’ more money without any increase in production…

 

‘ into Britain’s troubled economy..’

Guardian being careful not to specify which part of the economy all of this money is going into- so as to imply it is going to all parts of the economy equally (which it did not, and was not intended to ).

 

It is the sixth time that UK borrowing costs have fallen since October 2008, when rates were still 5%. Announcing the cut to 0.5%, the Bank’s monetary policy committee, led by governor Mervyn King, notes a slowdown in the global economy and “persistent problems in international credit markets”. In the UK , it highlights a drop in economic output at the end of 2008, a rise in unemployment and tight credit conditions for businesses and households.

 

King says it is unlikely that the bank rate could go any lower and policymakers will shift focus to creating money instead. “We are very close to zero. What we are doing now is switching to injecting money into the economy directly.”

In the case of the Bank of England, QE took the form of banking ‘other institutions’ as though they were licensed banks- effectively giving them the status of licensed banks.

 

This means taking them directly under the wing of the Bank of England and licensing them to create money just as private banks do, with protection as privileged institutions. Non bank ‘financial institutions’ were given the same status as banks. And their products- private democratised money in the form of derivatives, were given the SAME PROTECTED STATUS as private bank credit issued in the form of loans.

 

May 2009: The Bank of England surprises the City by announcing it is to increase the size of its quantitative easing (QE) operation by £50bn to £125bn, amid growing concern that the programme announced in March is failing to turn the economy around. It is the first of many increases in QE to come over the years that follow, taking the total to £375bn.

On the same day in May 2009, the European Central Bank (ECB) cuts interest rates to a record low of 1% and says it will follow the Bank of England in launching QE in a bid to pull the Eurozone’s stricken economy out of recession.

 

Part of a co-ordinated global response to the crisis. By devaluing ALL government issued money simultaneously, Monetarist cabals are launching their all out war on government issued money – which is now intensifying as the War On Cash’.

 

May 2010: A new coalition government is formed by the Conservatives and the Liberal Democrats after the general election. Bank of England governor Mervyn King gives his strong backing for spending cuts in new chancellor George Osborne’s first budget to come later in the summer.

 

The breathing space granted by QE was designed to be used for the restructuring of western economies and the end of post WWII welfare states, to get them in line with the new privately issued money system. This process is being led by the Monetarists of the Saxon Axis.

 

June 2010: George Osborne announces the biggest shakeup in City regulation since 1997 and hands sweeping new powers to the Bank of England designed to prevent a fresh financial crisis.

 

King emerges as the big winner from the chancellor’s shakeup of supervision that will abolish the Financial Services Authority. The Bank is given new tools to prevent bubbles from developing in the financial system, including the right to force banks to hold more capital during boom periods.

 

This is the formal recognition of the new structure whereby private financial organisations are brought under the wing of the Bank of England and granted money creation privileges. From now on there is to be NO formal democratic political control of the money issuance process at all. It is entirely privatised.

 

September 2010: The Bank’s deputy governor Charlie Bean urges Britons to go out and spend to help invigorate the UK’s economic recovery.

Rising inflation stokes rate rise bets

Inflation rises, pushed up by higher petrol prices

 

‘Britons’ are supposed to max out credit cards to wet the head of the democratised money baby. A bit like your wife telling you that her pregnancy is the product of a sexual liaison with her personal trainer and then demanding that you organise and pay for a baby shower..

February 2011: Following a VAT rise and a pick-up in petrol prices, official figures show inflation hit 4% in January – well above the Bank’s 2% target. Inflation goes up further over following months and peaks at 5.2% in September 2011.

 

City speculation rises that the Bank of England will be forced to raise interest rates within months to curb price pressures. The CBI business group predicts interest rates will begin to rise in the next few months and will end the year at 1.25%.

 

Minutes from the latest monetary policy committee meeting show concerns about inflation are growing there too. Two members voted for a quarter-point rise in interest rates while a third urged a half-point rise.

 

All of which goes to show that the Bank Of England never had, and never will have, any intention whatsoever of ‘fighting’ inflation. The purpose of these maneuvers is to devalue all government issued money and raise the relative exchange value of privately issued money (derivatives) in relation to the pound.

 

July 2011: The Bank of England’s Eurozone counterpart, the European Central Bank, shrugs off the region’s debt crisis and raises interest rates for the second time in 2011 to curb inflation. The move takes the ECB’s benchmark rate to 1.5%. The ECB is forced to start reversing those rises before the year is out amid fears the eurozone crisis could tip economies in the single currency bloc back into recession.

 

Unlike the Anglo Saxon oligarchies, the continental Germanic government which controls Europe has two factions; one which fully embraces Saxon financialisation and one which seeks to hold on to the post WWII social corporate state system. Guess which one has more or less lost the battle…

 

August 2011: Against the background of wild swings on world stock markets, the two hawkish members of the Bank’s monetary policy committee abandon their calls for borrowing costs to rise.

 

Get away- you don’t say !

 

November 2011: The world’s major central banks pledge concerted emergency measures to underpin fragile eurozone banks and prevent the global financial system from freezing up.

 

After a teleconference chaired by King involving six central banks, they announce “coordinated central bank action to address pressures in global money markets”.

 

The moves are reminiscent of autumn 2008, when central banks came together to slash interest rates and inject liquidity into financial markets in the wake of the collapse of Lehman Brothers.

 

More QE and a new funding for lending scheme

How did Katie somehow forget to mention at the beginning that all of the central banks had been co-ordinating an attack on government issued money from the very beginning of the crisis?

 

July 2012: The Bank’s monetary policy committee votes to raise the total amount of quantitative easing to £375bn, citing signs that the global economy is flagging and having knock-on effects on the UK’s recovery. The move coincided with interest rate cuts in the crisis-hit eurozone and in China.

 

Later the same month, the Bank of England unveils a scheme to boost lending to first-time buyers and small companies in a move that ministers hope will inject fresh funds into the ailing UK economy.

 

The “funding for lending” scheme is welcomed by the chancellor, George Osborne, who says the launch of the £80bn emergency facility shows Britain is “not powerless to act” in the face of the eurozone crisis.

 

The scheme offers cut-price loans to banks and building societies, which are expected to make the money available through mortgages to homebuyers and loans to small businesses. But experts warn the new cash may not reach those who need it the most.

 

August 2012: A Bank of England paper concludes that Britain’s richest 5% gained most from quantitative easing. Threadneedle Street said that wealthy families had been the biggest beneficiaries of its £375bn QE programme but also insists the scheme has helped all sections of the population by sparing the country from a deeper slump.

 

In order to protect existing ‘Mortgage Backed Securities’ and even more importantly to protect the PRINCIPLE that private entities will issue democratised money and the state will clean up any resulting mess, the housing bubble has to be protected as the basis for Mortgage Backed Securities -financial instruments- derivatives-privately issued money.

 

November 2012: The Treasury announces that big cash balances amassed by the Bank of England as a result of its electronic money-creation programme will be used to pay down the national debt by £35bn over the next 18 months. Osborne wants Threadneedle Street to hand over the interest payments it has received on the gilts bought since the start of the QE scheme in early 2009.

They steal your car but they leave your furry dice on the pavement as a consolation..

 

November 2012: George Osborne springs a surprise on the City by announcing Canada’s central bank chief will succeed Mervyn King as governor of the Bank of England.

 

Mark Carney, the governor of the Bank of Canada, is the first non-Briton to become Bank of England governor. He is largely unknown outside the cloistered circles of central bankers and financial regulators, but has gained a reputation as a tough operator able to confront leading banks at the heart of the financial crisis.

 

It later emerges that Carney will pocket an annual £250,000 housing allowance, taking his total pay package to £874,000 a year when he takes the reins in the summer of 2013.

 

July 2013: Mark Carney takes over from Mervyn King as Bank of England governor. On his first day in the new job, Carney arrives in Threadneedle Street by tube.

 

First of all the idea was to make the Bank of England run by a group of non elected technocrats. Then the idea is to give it over to be run by someone who was not even English! The next appointee will be someone wearing a black hood and you won’t even be allowed to ask his (or her) name…

 

August 2013: New Bank of England governor Mark Carney unveils a strategy of “forward guidance”, under which policymakers will not consider raising rates until unemployment declines to 7% (from 7.8%). The Bank’s own forecast puts unemployment above 7% in 2016.

 

The governor says the Bank will only think again about its pro-growth stance if there is a threat of higher inflation or asset bubbles.

 

The scheme is greeted with skepticism in the City. Long-term interest rates, set by investors in financial markets, rise after forward guidance is first announced, amid a slew of upbeat data about house prices, retail spending and business confidence.

 

September 2013: Chancellor George Osborne says he is giving the Bank of England greater powers to prevent the government’s help-to-buy scheme causing a property boom.

 

The ‘fighting inflation’ story was shown to be nonsense, so then the Bank Of England concocted a story about unemployment being the most important indicator. Anything to avoid the truth, that it was the relative value of derivatives in comparison with the state issued currency that was the most important factor.

 

November 2013: Bank governor Mark Carney reins in the mortgage market in a bid to prevent five years of ultra-low interest rates and George Osborne’s help-to-buy scheme from fuelling a housing bubble. Carney announces he is refocusing the funding for lending scheme that gave lenders financial incentives to provide home loans. The focus will now be on business lending, the governor says.

 

February 2014: Just six months after forward guidance was launched the unemployment rate has already dropped below 7% – two years earlier than the Bank had been expecting. Carney signals, however, that the Bank will keep interest rates at the record low of 0.5% for at least another year and that policymakers “will not take risks with this recovery”. He also insists “forward guidance is working”.

 

Inflation was a nonsense excuse for QE now unemployment was shown to be nonsense excuse for QE

 

May 2014: Mark Carney warns that the housing market poses the biggest risk to Britain’s economic recovery as a shortage of new homes drives up prices.

June 2014: Bank of England gets new powers to control the size of mortgages. Carney warns that interest rates are likely to rise before the end of 2014.

 

Later that month, members of parliament’s Treasury select committee accuse the Bank of behaving like an “unreliable boyfriend”, giving mixed messages on when the first rise in interest rates is likely.

 

September 2014: Carney warns workers they face higher interest rates in the spring of 2015 before they receive rises in real wages.

 

The Bank of England, like the Fed desperately wants to ‘normalise the situation, by getting off zero interest rates.

 

 

Deflation threat sparks rate cut talk

 

March 2015: With inflation falling closer to zero, Bank of England chief economist Andy Haldane suggests policymakers may be forced to slash interest rates to zero in the coming months to tackle the threat of deflation.

 

Official figures after Haldane’s remarks show that inflation has dropped to zero for the first time on record in Britain. Inflation was pushed down by a deep oil price slump and a fierce price war being fought out by supermarkets. Inflation, measured on the consumer prices index (CPI), turns negative in April.

CPI inflation.

 

May 2015: The coalition government is replaced by a Conservative government. The coalition was the first administration in more than half a century to enjoy unchanged borrowing costs for its entire term. In the first announcement from the Bank under the new Conservative government, interest rates are again held at 0.5%.

 

New rate rise hints from Carney

 

FFS!

 

July 2015: The BoE governor says an interest rate hike in the UK is “moving closer”. He tells the Treasury select committee households should start to manage their finances with a future hike in mind and he notes the UK economy has been performing well, that wages are starting to pick up and that employment has seen a big increase.

 

Later that month, Carney suggests the first interest rate rise since the global financial crash could come around the turn of the year. In a speech, he adds that after an extended period of what were expected to be emergency rates, borrowing costs were likely to peak at just over 2% – half their average historic norm since the Bank was founded in 1694.

 

‘borrowing costs were likely to peak at just over 2%’

There is a direct relationship between the total amount of money in circulation, the amount of the economy it services and the base interest rate. The long term average interest rate is PROCLAIMED by the Saxon elite henceforth to be around 2% as a clear statement of intent: From now on, Government Issued Money will only service a fraction of the total British economy.

 

What fraction is this?

 

The previous average post war interest rate is approx 5%, so it will be 2% divided by 5% – or 40%. In other words, the elite have proclaimed that in the medium to long term OVER HALF the British economy will be serviced by privately issued money.

 

But minutes from the Bank’s latest rate-setting meeting show concerns among policymakers that slow progress resolving the Greek debt crisis could delay a rate rise.

Chinese slowdown fears intensify

August 2015: China devalues its yuan currency against the dollar, sending shockwaves through global markets – already jittery over signs of a worsening slowdown in the country’s economy and wild swings on its stock markets.

 

The currency move dampens talk of interest rate rises in the US and UK given the prospect that cheaper Chinese goods will reduce inflationary pressures in those countries.

 

But Carney says that while a slowdown in China’s economy could push down further on inflation, it does not change, for now, the central bank’s position on when and how it might increase interest rates.

 

Carney really wants to push the button and get on with it. Raising interest rates is an important signal that the democratised money project is concluding its initial stage.

 

September 2015: BoE chief economist Haldane again warns that interest rates may have to be cut further from their record low level as he highlights signs that the global financial crisis is entering a third phase of turmoil.

 

Haldane is speaking a day after the US central bank decided to delay an interest rate rise for the world’s biggest economy. The US rate-setters blamed a more fragile global outlook in remarks that further rattled jittery financial markets.

 

November 2015: The Bank of England is ready to step up controls on the housing market if a prolonged period of record low interest rates risks inflating a property bubble, Carney says. As he signals that interest rates are likely to remain on hold well into 2016, Carney suggested the Bank may have to revert to other measures, such as tighter lending rules, to keep a lid on house prices.

 

KATIE YOU FORGOT TO MENTION THAT THE FED RAISED INTEREST RATES IN DECEMBER!!!

 

What does this tell you about the quality of economic reporting in the Guardian and the media generally with regard to finance and the economy?

 

February 2016: Carney says policymakers in the UK could cut interest rates to zero if necessary, but would seek to avoid following Sweden, Denmark and the eurozone by setting negative rates to bolster growth and inflation.

 

Responding to questions from MPs on the Treasury select committee, Carney says the world economy has entered a period of low growth and low interest rates and is likely to be prone to financial shocks.

 

March 2016: The UK marks seven years of record low interest rates.

 

New research marking the anniversary claims rock bottom borrowing costs and quantitative have cost savers an estimated £160bn, but supported strong increases in the prices of property, stocks and bonds. In its analysis, financial firm Hargreaves Lansdown suggests loose monetary policy has “annihilated” returns on cash.

 

Savers have net transferred value to speculators to the tune of £160bn (and you can bet it is considerably more than that). More importantly, the ‘interest bearing function’ of money is being destroyed. One of the benefits of government issued money is being destroyed, taken away from you. What is the effect of this? It makes the alternatives to government issued money seem a lot more valuable. One of the alternatives of course, is Democratised Money.

 

Throughout the entire Guardian narrative the central bank response to the Credit Crunch is presented as being fundamentally arbitrary, contingent and chaotic. In other words there is no fundamental perspective or purpose that is driving the logic of central bank actions.

Actions and consequences happen in a confusing and sometimes contradictory swirl of intention and understanding.

 

So the drama unfolds as a revelation to the authors of the crisis as much as it does to us.

 

But from the perspective of privatising the supply of money- the democratisation of money- the actions that have been taken by monetarist central banks and the consequences that these actions produce, suddenly seem straightforward and entirely predictable.

 

 

 

The Real Name Of The Game.

 

 

The referendum on Britain remaining part of the European union has focused minds on the benefits and disadvantages of membership.

In truth it is impossible to make a rational and considered case for staying or leaving on the basis of a simple comparison of National Advantage or disadvantage for any member of the EU.

Political, economic and cultural relationships between the signatory states are so entangled and interdependent that there is no simple way to conclude that any one aspect of the EU agreement is either all beneficial or all bad.

In addition the entire European Union project has historical components that cannot be reduced to contemporary accountable credits and debits – the political and cultural rehabilitation of Germany being the foremost of these.

These complicating factors mean that both sides of the argument are finally reduced to motivating their respective constituencies through vague fears and even vaguer aspirations.

Pro-EU argue that the dangers from leaving the European Union are too great. Anti EU argue that fear of change reflects an unpatriotic lack of confidence on the part of their opponents. They say that Britain can be great outside of Europe. For anyone who wants to really understand the underlying meaning of the European referendum debate this superficial tub thumping is pretty depressing stuff.

There is a way to make a rational accounting of the pros and cons of European membership. But in order to do this we must have an understanding of what membership of the European union actually means within its component states.

Let us start from deconstructing the ‘national advantage’ perspective.

The relationship between Britain and Europe is based on treaties that specify certain obligations. Either the disadvantages arising from obligations outweigh the benefits of membership, or the benefits outweigh the obligations. That seems straightforward enough.

So from the national advantage point of view, our task would be to determine whether Britain or Europe is the net beneficiary of the relationship.

Let us assume that membership of the European Union is net beneficial for Britain and correspondingly less beneficial for the rest of Europe. If this were the case, European elites will be in favour of Britain leaving the European Union. But all of the European union leadership is increasingly openly bargaining for Britain to remain part of Europe.

If on the other hand, membership of the EU net benefits Europe more than Britain we would expect all sections of British society (including the financial elite) to argue that Britain should leave the EU. This is clearly not happening. The financial and industrial elites of Britain are increasingly openly arguing that Britain should remain part of the European union.

The actually observed behaviour of European and British elites does not correspond to a situation where Britain net benefits from the association to the detriment of Europe, or Europe net benefits from the association to the detriment of Britain. From this we can conclude that neither side has net national benefits or disadvantages from this association. Or at least, any comparative advantage or disadvantage is so small as to be incalculable.

If this is the case, comparative national advantage cannot be the rational basis for national elites (or anyone else), deciding either to remain or leave the EU. If the difference is so small as to be negligible why does it matter to anyone either way?

Because the significance of the EU does not lie in the formal relationship between the nation state members and their respective elites.

The first thing most important thing is to establish is that EU is an agreement between elites. European ‘politics’ is actually based on media and politicians doing what is necessary to get respective populations on board with ever increasing integration.

A classic example of this was the excruciating Irish referendum where the people were forced to keep voting ‘until they got it right’. The subsequent political and economic European gangbang of Greece was a further extension of this process. The people don’t ever get a say is a fundamental principle of the EU..

That Europe is a project of elites is hardly a revelation, most people get that. But what most people don’t understand is the consequences of this state of affairs.

Europe is effectively creating a new DEMOS – a new constituency; actually a new republic funded by wealth redistribution within nation state members. The EU is using the existing wealth of nation states to fund the creation of a new organism from within the shell of the old one. It is doing this by redistribution.

What is the nature of this internal redistribution ?

In a British example redistribution means that those who are disadvantaged by various European agreements are effectively paying a toll to those who are advantaged by those same agreements. Of course, it will come as no surprise that those who are disadvantaged tend to be the already poor and those who are advantaged are the already rich.

Here are a couple of specific illustrations of the redistribution process in Britain. They are illustrative of the process as it applies to all relatively affluent nations in western Europe:

Rents

Increased immigration (labour force mobility), from Europe means that rents rise due to increased demand for lower end housing. As a consequence of these rent rises landlords benefit directly. House prices in general are also pushed up as a consequence and all those who profit from housing in general benefit. People who have to pay rent lose out correspondingly. Where do immigrants tend to congregate? Not in affluent areas- prices are already too high! The congregate in poorer areas. Rents and house prices in poorer are pushed beyond the reach of local poor people.

Schools

Increased immigration means that more children are forced into existing provision. Foreign children who do not have English as a first language require many more extra services. These extra services have to come from the provision from existing children.

Where do immigrant children go to school?

Where they congregate of course.

Where do they congregate?

In poorer areas!

Healthcare

See above

Wages

Supply and demand. Increased immigration leads to lower wages.

There is a clear process that can be observed. Over time, the wealth and living conditions of immigrants tend to converge with the wealth and the living conditions of the local host community. In other words, the living standard of a Romanian immigrant into England will tend to rise somewhat and the living standard of the English people around him will tend to move downwards towards the Romanian standard.

This is not controversial. It is an openly stated objective of EU policy to harmonise living standards across the EU. What is not openly stated is that this harmonisation will involve the falling of living standards for a considerable section of the European population.

With this process in mind, one or two things become immediately clear.

There is no national interest as such, in voting for the EU, there never can be. By its very nature the purpose of the EU project is to divide nations up; it is meant to do this. It can never be in ‘Britain’s’ or any other nations interest to stay in the EU or leave because this is a fundamentally mis-stated question!

If you are in an area, that is targeted for transformation, (i.e. if you are a relatively poor member of a relatively rich society), your immediate interest is in stopping the process, since you will immediately lose out. Of course, the poor and ignorant are the least likely to vote or take part in the politics. This accounts for the relatively easy ride the process has had so far.

The areas transformed by immigration will necessarily expand over time. The longer the process goes on, the more that people ‘doughnutted’ in wealthier areas around immigration hotspots will start to feel the effects of the process and realise that they should oppose it.

Because of this, it is CRUCIAL to have as many referendums etc as early in the process as possible (and it is still relatively early in the process), since the longer it goes on, the more likely there is to be organised resistance to the process within relatively wealthy sections of national communities.

And doesn’t this, rather than the supposed national advantage perspective, more accurately correspond with what we actually see?

All over Europe it is people who live in the ‘immigration doughnut’ regions of western Europe who are protesting most about EU integration. (NOT, you will note, those on the EU periphery such as Greece..)

All over Europe it is those sections of national communities that have clearly benefited from ‘freedom of movement’ that argue for increased EU integration. (In Britain, this would be the City of London etc)

To go back to the original question:

Is it possible to make some kind of rational assessment of how much EU has benefited its constituency and disadvantaged those around it?

Well a couple of graphs here* can point towards an estimate:

This is the Earnings to mortgage ratio.

house-price-to-earnings-ratio-600x536

And this is  Bank of England base rates:

base-rates-bank-rates-mortgage-rates-500x354

You can see that broadly speaking, house prices take up an ever increasing proportion of wages in Britain. This process has begun to accelerate in the last decade. The only reason it has not accelerated even more is explained in the second graph which shows that the Bank of England policy of keeping base rates at zero has meant that mortgage rates have been ‘artificially’ held at a relatively low level. As a consequence mortgages are an artifically low proportion of wages.

You can see that where immigration and in particular European immigration is at its most concentrated, in the London region, the disparity between housing and wages is at its most acute.

This is what we would expect to see in line with my description of the redistribution process.

If I had to make a guestimate of the total loss to the poorest part of the British population as a result of European integration I would say:

Loss of wages.

Lack of access to health and education.

Increased rents

Increased house prices

Lost social benefits,( denial of trades union membership, denial of social welfare benefits)

All adds up to a loss of 25% of total wealth so far.

And this is only the beginning.

 

Typical tenant pays £40,000 in rent over five years, report finds

http://www.theguardian.com/society/2016/mar/03/tenant-paid-40000-rent-five-years-shelter

Wages for British workers will rise in the event of a Brexit, head of in campaign says

http://www.telegraph.co.uk/news/newstopics/eureferendum/12181385/Wages-for-British-workers-will-rise-in-the-event-of-a-Brexit-head-of-in-campaign-says.html

*http://www.economicshelp.org/blog/5709/housing/housing-market-stats-and-graphs/

 

There is more to say here:

The Fall of Europe and the Rise of Eurasia

The geo-political reality is that Europe -whatever it’s disputed borders might actually be- is the western part of EURASIA. Europe has managed to exist ‘separately’ for 4-500 years or so because of its relative economic and cultural advantages over the rest of the landmass. It was an economic/cultural grouping strong enough to keep Eurasia out. That relative strength adavantage is evaporating quickly now. The fall of Europe is the rise of Eurasia.

The elites of Europe (and Anglo Saxon elites) are entirely aware of this process. They are ALREADY ‘democratically’ transforming Europe into a LATIFUNDIA system- pockets of relative wealth and stability within the larger western Eurasian area that will be subject to falling living standards and relatively high insecurity.

There will be no progressive, social Europe or EU to be part of in the next decade. There is no possiblity of reforming Europe or the EU. They are both the creation of western European elites and will always continue to be.

These elites were forced to pay lip service to the Anglo Saxon ideal in the post WWII period. But that is no longer possible or desirable for these Europeans.