Face Value or Down The Rabbit hole or Minority Report or Yes We Khan!



A couple of weeks ago the Fed announced that Harriet Tubman, a slaved African ‘black’ woman would replace President Andrew Jackson on the $20 bill.


The arguments for and against this volte face are running more or less as you would expect.


The pro-Tubman side claim that introducing Tubman is more than just substituting one historical personality for another. It represents the inclusion of a whole kind of person that has been omitted from mainstream establishment American history.


On the other hand the ‘anti’s are obviously wary of falling into the trap of outright opposition, so they suggest that slavery and its most significant protagonists should be celebrated and included in some other way. Keep the money for ‘dead presidents’ they conclude.


On the face of it, (pun intended), it seems peculiar that Germanic capitalism- a form of society that lays claim to the inheritance of the Enlightenment and Reason, should be putting anyone’s face on money. Surely this is uncomfortably close to the sort of feudalistic impulse that Capitalism claims to have superseded.


The truth is that the ‘primitive’ roots of having the face of king or emperor on a coin legitimises the modern money we have today just as it did in times past. It lays bare Capitalism’s dirty little secret- it is parasitical upon the social forms created by ‘feudalism’ and always has been.


Capitalism cannot generate the social traditions necessary to enlist the loyalty of the ordinary people it claims to represent! It needs ‘feudalism’ to do that. For instance, why do you think soldiers dress up in fancy uniforms?


Why don’t capitalist armies dress up for their parades in business suits?! Surely the suit and tie is the ‘folk costume’ of the capitalist nation and its armies!


But experience has shown that people won’t fight and die for Capitalism and capitalists know this better than anyone. Capitalism needs feudalism to survive.


The face on money controversy proves that the past is alive and well and not just in the matter of money.. Donald Trump has achieved the Republican nomination in all but name. There may be sour grapes and carping but for the moment his enemies in the Republican elite dare not attack him outright.


Trump is a prime example of feudal capitalist king and outstanding expression of the ever increasing importance of cultural constituency in the politics of the west. In Obama and now Trump we are witnessing the end of representative democracy and beginning of Constitutional Embodiment.


As I have explained in previous writing on cultural constituencies, politicians like Trump are Cultural Specifics as opposed to ideological representatives. They are not there to represent an idea held in common. These politicians are not old style REPRESENTATIVES of a political ideology, they are the new style EMBODIMENT of a CULTURAL IDENTITY.


A Cultural Specific does not reflect and represent an idea that his constituency wishes to endorse. A cultural specific reflects the way that the members of his constituency wishes to be seen by the world. A representative represents an idea. An embodiment represents you (or not!)


They have no meaningful political perspective based on economics- that is not what they are there to do. They are there to VALIDATE the identity of their CONSTITUENCY. No-one understands this better than Trump himself.


Showing one of the startling flashes of prescience that have made him so successful despite his limitations, Trump has decided to go after Elizabeth Warren -supposed ‘left wing’ scourge of Wall Street and self described native American who,Trump says, is ‘as native American as I am’. Which means of course, not at all.




It is fundamental to classic Germanic Land Democracy, that national and cultural identities are social commodities, available to anyone born in a particular time and place.


Rachel Dalziel may have taken it to an extreme, but she was only doing what ‘Americans’ feel is their right and due. To dip into ‘black’ ( or other) culture for a ready to wear drip dry identity.


Ms Warren feels able to take her own personal journey down the rabbit hole with her proclamation of Nativeness (is that a word?). Surely a look in the mirror would help her to understand the truth of the matter.


Here Trump shows a clear instinctive understanding of Whiteism. Since it is about identity, unlike economic rationale no compromise is possible. You can’t split the difference- you either are a Native American or you aren’t.


Elizabeth Warrens firestorm Twitter response to Trumps IDAttack tells the whole story. She is clearly fighting for her political life. If Trump wins, politicians like Warren and the people she represents will be in imminent danger of becoming politically extinct.


The key to understanding Trump and his supporters is to realise that they now identify and act as a minority; the VolkAmerika cultural constituency, and are no longer interested in being the majority with no benefits and loads of associated social political and economic costs.


Trump doesn’t see himself as being part of the majority tasked with keeping the edifice standing against the minorities. He no longer sees why his supporters should be willing to make sacrifices to keep the system going. He is as ready to kick at the foundations of modern America as any other minority…


Closer to home the election of Sadiq Khan in London as the first Muslim mayor of a major European city extends the advance of cultural constituencies


Khan ran as ‘the son of a Pakistani bus driver’ against the offspring of a Jewish billionaire Zac Goldsmith and accordingly the papers in this part of the Saxon Axis resound to claims of ‘Anti Semitism!’ and corresponding counter charges of ‘Islamophobia!’


But the game is more nuanced that that. Khan was the Muslim who goes on day trips to his local Synagogue (EuroSlam) and Goldsmith a multi-millionaire who cares ‘passionately’. about the environment. (‘Green’back capitalist a la Richard Branson)


So which would you rather be personally identified with:


‘EuroSlam’ Pakistani or ‘GreenBack’ Jew?


Welcome to the post economic rationale world…


And North of the English border comes the starling news that the Tories who have been rank outsiders for decades have returned to centre stage.

For around half a century the Conservatives, traditionally seen in Scotland as quintessentially English, have been a fringe party in Scottish politics.


They were tarnished with Thatcherism which promoted a form of politics centered on the Saxon heartlands of ‘Middle England’. Most famously Thatcherism is associated with the poll tax whose purpose was to make local taxation entirely regressive and removed from ability to pay.


So how did they come back? Or more importantly, where did they come back?


The answer to this is; all along the East coast, the area of Scotland whose population is by majority Lowland Saxon Germans.


The Scottish Nationalist Party maintained its share of vote among the West Coast population. The sea change is that the Saxon East coast population has abandoned Labour, an English ‘left wing’ party no longer seen as providing adequate cover for their interests. Now they openly vote for Tories as an East coast Saxon opposition to West coast Gaelic SNP!!


I have long argued that ‘left wing’ and ‘right wing’ are redundant in the modern world,(if they ever really meant anything) and especially in the case of the Saxon Axis. There has never been a significant ‘Socialist’ party in any part of the Saxon world and there never will be. This is not an historical co-incidence.


The left/right divide was always only a political tool for the promotion of Germanic political culture, Germanic Land Democracy and the Germanic Cult of capitalism.


Now that it no longers serves any practical purpose for the Germanic population of Scotland, they are abandoning it.


And this is happening all around the world- The Great Unravelling

Blink- News From Around The Five Eyes


200Blink -May 5 2016-   by Joe Jones
Fury Boxed In

I have been recently trying to get in touch with Tyson Fury to arrange an interview before the Anglo-Saxon press really try and tear him apart. In this press conference he declares how he does not care about boxing and how he is fighting just to put food on the table.

Good on him, he has a pregnant wife at home and family is his main concern.

Fury, who is the undisputed heavyweight champion, has got nowhere near the credit any other British World champion has had. This is because he does not enter into the Anglo-Saxon model. He is an Irish traveller with a Christian belief system, and what’s more, he is outspoken.

The press will be eyeing up their next move.

Death To America!
Debt To America!

White Working Class Mortality Rates Are Increasing
Other studies indicate rising death rates for a white working class that is in a slow-motion economic and social meltdown. Self-destructive behaviors are outpacing …
The Anglo Saxon Empire is spiralling into chaos and the Anglo Saxon poor have been abandoned.



In 2013 USE predicted that a white population in the developed world would be made into refugees as the consequence of natural or man-made disaster. A little bit later than predicted but this could be it…


Fort Mc Murray Evacuated


Then Water..

Obama Leading from the front drinks some Flint water (filtered of course) Yum!



Prices for Rice can be expected to rise sharply in the coming year. Apparently it’s the fault of the weather- chaos caused by commodity speculation will have got nothing to do with it…


TRiUMPh of the Will

Trotskyist World Socialist Website can’t decide if the Don is an insider pretending to be an outsider or an outsider pretending to be an insider..


And AS liberals can’t decide if they even want democracy anymore..


This Is Not America

This article is titled ‘How is Donald Trump affecting American culture’. Donald Trump IS American culture..As many of the entries indicate.


Madness or The Price Is Wrong or Neo Is The One



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



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




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


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




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





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.








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%


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.




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?



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’



The Enlightenment



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



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



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



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



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

Can anything rescue Japan from the abyss?


Japan’s negative rates a looming headache for central bank

The Birth Of The New Welfare State



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.


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



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



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).




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


Not Any More You aren’t!

See: 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