E=MC Too

 

 

The American health care system clearly needs to be rationalised. It is inefficient, with multiple competing bureaucracies, high costs and poor outcomes. many people cannot understand how it has continued to develop in what appears to be such a dysfunctional way.

 

But what if the size and shape of American health care is entirely rational if you understand the parameters that it operates within?

 

In my general theory of money I argue that the fundamental structure of capitalist economies is a broad alliance of competing money forms, (partial money), that act as a means of extracting wealth from society as a whole for their respective constituencies and through this process money forms divide up the economy.

 

Under this model INSURANCE is a money form, whose purpose is to allow its issuers and users (constituency) to extract wealth protected by its representatives among the elite: FACTIONINSURANCE.

 

You might imagine that because ‘healthcare’ is the subject of insurance that ‘health’ is somehow integral to this insurance business. It is not. ‘Health’ is no more integral to health insurance than birds are integral to ‘Dove’ shower creme.

 

To make it absolutely clear: ‘Insurance’ does not exist as a consequence of the social need for ‘Healthcare’ rather ‘Healthcare’ exists as a consequence of the economic need for ‘Insurance’. Who has an economic need for insurance? The faction that creates, buys, sells and uses it.

 

An easy way to understand it is to look back at the development of both rail and then car travel. First trains were invented and then the marketing department for the rail companies had to think of somewhere desirable to go on them. The same applies to the motor car. First the car was invented and then a desirable destination had to be invented. In this way first the ‘seaside’ and then the ‘countryside’ were invented…as well as the suburbs.

 

Insurance was invented as a money form. Then the insurers had to find something desirable to insure- enter healthcare.

 

I will build on this insight:

 

There are a number of competing money factions of which FACTIONINSURANCE is one and FACTIONDERIVATIVE is another; the latest edition to the elite power structure.

 

I have previously explained how QE was specifically an economic and political arrangement to protect and regularise emergent derivatives in the wake of the crash they caused.

 

If we accept that there are a number of money factions competing for economic and political primacy and we accept that derivatives have been inducted into the elite club, we can surmise that the derivative share of power must have been allocated at the expense of another competing money faction.

 

In other words someone must have been made to move over to make room for derivatives at the money table. Which brings us to the following intriguing anomaly:

 

In both Britain and America the newly elected post credit crunch administrations undertook ambitious and far ranging ‘reforms’ of their respective health care systems, despite the fact that many observers noted that the administrations had far more pressing concerns that they appeared reluctant to confront.

 

It does seem odd that a Conservative a government in Britain and a Democrat government in America should go out of their way to look for trouble when they had so much of it already.

 

But what if, in line with my model, they had to rejig the position of FACTIONINSURANCE within the system as a whole to accommodate FACTIONDERIVATIVE?

 

To put it another way, to get the support of FACTIONINSURANCE they had to get something in return for what they were losing to FACTIONDERIVATIVE

 

Then the actions of both Anglo Saxon elites would entirely make sense.’ Healthcare reform’ can now be seen for what it is- a central ECONOMIC part of the QE programme.

 

If my model of how the system operates is correct- how would that be reflected in what we actually observe? We would expect to see an increase in health insurance without a corresponding increase in health. Sound familiar?

 

All of which brings me to my E=MC2 moment. This is a simple formulation which is the basis for explaining all economic and political history over the past hundred years. It supersedes and clarifies all other economic theory. (Is that all, Andy ?)

 

Among other startling things my theory makes it possible to calculate to 2 decimal places the Socialism of any individual in comparison to any other individual on the planet.

 

The Credit Crunch and subsequent QE heralded the formal acceptance of derivatives into the elite money pantheon.

 

I explained how FACTIONINSURANCE got paid off to allow this to go ahead. But what about FACTIONEQUITY, FACTIONBOND etc?

 

Well they all got paid off too. In fact everybody seems to have got paid off, except one faction, and you know who that is don’t you?

 

Yup,

 

FACTIONCASH got shafted on all sides.

 

And what happened as FACTIONCASH had its political and economic power stripped away?

 

Why, Socialism evaporated into the air as though it had never existed!!

 

Surely this is the time above all others when people would have turned to Socialism. But they can’t turn to socialism because it doesn’t exist as a real separate political force.

 

Which leads me to my central formulation:

 

CASH=SOCIALISM

SOCIALISM=CASH

 

Want to know exactly to two decimal places how socialist any particular person is?

 

Find out what percentage of their wealth is held in cash and how much cash  they carry around..

 

I have prepared the following graphic for you to approximate just how Socialist you and your friends and colleagues are…

 

If you doubt my analysis ask yourself:

 

What would the world be like if there was only one money form and it was cash?

Socialism, no?

 

Why were elites all over the Saxon Axis so desperate to get welfare recipients onto digital payments?

 

Because it is bad enough if some members of society are socialist, but it really would be too much if the poor were as well…

Crackernomics General Theory Of Money Part 1

I have been working towards finishing Crackernomics 2: The Structure Of Money for a couple of years.

 

When I first began writing about the credit crunch in 2010 I described the form of the crisis and recovery process the same way one might describe the appearance of a conjurors illusion without actually understanding how the trick works. I had the form of what was happening but not the underlying content.

 

After further observation I began to realise the significance of the specific case of derivatives- that they were in fact a form of money and that QE had the overall purpose of regulating and guaranteeing them as such.

 

Over the next year or so I extended this understanding of money issuance with my analysis of Bitcoin and other crypto currencies.

 

However, it turned out to be another six years or so before I understood the general rule and I could produce a comprehensive general analysis and monetary theory…There are two parts to the general theory.

 

Here are the bones of the first half of that General Money Theory.

 

Under the cult of Capitalism the state has an effective political monopoly on the creation of money.

This leads people to erroneously presume that since there is only one state operating within each nation state territory that each individual state only allows the production of one kind of money.

 

In fact capitalist states directly and indirectly sponsor various types of privately issued money including bonds, equities and some forms of insurance. State sponsorship of these other forms of money takes the form of guarantees and regulation. These sponsored other forms of money allow the extraction of wealth from and the regulation of, the capitalist economy.

 

In the nineties one faction within the American state began to sponsor and promote a new form of privately issued money. This form became generally known as derivatives. Because of the scale and novelty of this form of money issuance it inevitably led to destabilisation and a crisis that is referred to as the Credit Crunch.

 

The broad idea is the same as the CIA, Kennedy and the Bay of Pigs. The CIA started a crisis by invading Cuba and then tried to force Kennedy to back them up. Kennedy refused and you know what happened as a consequence.

 

In the immediate aftermath of the credit crunch Bush and Obama accepted the fait accompli offered to them by the derivatives faction and used the state to back up the new form of privately issued money.

 

Under the cult of capitalism Germanic elites established an effective political monopoly over the production of money BUT actually produce more than one kind of money through the sponsorship of bonds, equities, forms of insurance and unmentioned till now; BANK CREDIT which leads to the following central idea:

 

The history of money production under Capitalism follows this pattern:

 

A particular political/economic faction in a given society petitions to join the elite and create its own form of money.

 

It begins to manufacture and use this form of money.

 

The production of this novel form of money creates a social and economic crisis.

 

The existing elite either agrees to accept the new form of money and collectively guarantee and regulate it or it does not.

 

This is how paper cash came to be a form of money- crisis and then acceptance

This is how insurance came to be a form of money- crisis and then acceptance.

This is how bonds came to be accepted crisis and then acceptance

This is how equities came to be accepted -crisis and then acceptance

This is how bank credit came to be accepted crisis and then acceptance

 

THIS IS HOW DERIVATIVES ARE COMING TO BE ACCEPTED -CRISIS AND THEN ACCEPTANCE.

What do we call this process of collective acceptance of derivatives; their regulation and guarantee by the elite?

 

We call it QE.

 

Sometimes this process fails. The Dutch tulip bubble is a good example. The tulip faction failed to get bulbs accepted as a form of currency!!

 

Here is a fundamental insight:

When a faction bid to create a new form of currency fails it is referred to pejoratively as a bubble. The wealth accrued to that new form of currency is redistributed among its competitor currencies.

 

The Significance of Gold

 

The creation of the Federal Reserve was the crisis and acceptance of bank credit as a sponsored money form.

The Wall Street Crash and its resolution was crisis and acceptance of equities as a sponsored money form but;

 

But the withdrawal of the gold standard was EXACTLY THIS PROCESS IN REVERSE. The original and founding member faction- the GOLD MONEY FACTION was blackballed and EXCOMMUNICATED from the Germanic money elite like the founding CEO of a company being turfed out by other board members!!

 

This is the significance of going off the gold standard. The original founding faction reduced to penury and obscurity, the plaything of the very factions that it originally allowed into the gang!!

 

There are money factions operating within Germanic societies which sometimes successfully petition and join the elite. But the end of the gold standard was historically unique in the history of capitalism since it was the first time a money faction was DE-LISTED and DELEGITIMISED.

 

Next we can identify the money factions. The basic money factions at present are

 

FactionInsurance

FactionBond

Faction Credit

FactionEquity

FactionDerivative

and last but not least ,(not yet anyway),

Factioncash (which is supposed to be the pre-eminent faction but we all know about the war on cash).

 

After some consideration I believe there is only room for a LIMITED NUMBER OF FACTIONS at the top table.

 

Here is my prediction:

 

It is very possible that FactionInsurance or FactionBond will be delegitimised and expelled by Trump in this administration just like Nixon did to Factiongold!! (Actually on further consideration I think it might very well be Factioncash that is for the high jump..)

 

Notes On Factioncrypto

 

Presenters of The Keiser Report Max Keiser and Stacy Herbert are good exemplars of Factioncrypto. They are Pro gold-Anti derivatives- Pro Bitcoin because:

 

They want the  FactionGold to be re-admitted to the monetary elite but this is not going to happen. (I suspect they know this and their support for Factiongold is only rhetorical.)

 

They want to prevent the legal and political legitimisation of derivatives and Factionderivative, which is why they always refer to derivatives as ‘fraud’. But derivatives are more or less entirely legitimised. Only a major overturn can prevent the successful finalisation of this process.

 

Factioncrypto want Bitcoin to be accepted as part of the Germanic money elite. But to do this they have to do what every petitioning faction has done before them- they have to use MONETARY TERRORISM tactics- just as they rightly accuse the derivatives faction of doing.. to provoke a crisis, then bargain for acceptance and regulation.

 

How this general theory of money can explain Real political parties

 

I have argued that the actual history of politics and economy is not a duopoly/dichotomy of left or right or working class or capitalist or nationalist and globalist but rather a number of competing factions that use money forms to extract wealth and regulate and divide up the economy. This is the true underlying form of politics under capitalism.

 

But we can take this further and argue that each faction has its supporters in wider society and that this is the actual way we can understand how society is divided up and operates. Each faction has a broader money constituency within society that supports it. This constituency uses their specific money form to extract wealth from the general economy.

 

 

Factioncash has a corresponding cash constituency. Factioncash is the REAL PARTY of Cash constituency.

 

Factioncredit has a corresponding credit constituency  Factioncredit is the REAL PARTY of Credit constituency.

 

Factionbond has a corresponding bond constituency  Factionbond is the REAL PARTY of bond constituency.

 

Factionequity has a corresponding equity constituency Factionequity is the REAL PARTY of equity constituency.

 

FactionInsurance has a corresponding insurance constituency  FactionInsurance is the REAL PARTY of insurance constituency.

 

Factionderivative has a corresponding derivative constituency Factionderivative is the REAL PARTY of derivative constituency.

 

Factiongold has a corresponding gold constituency  .Factiongold is the REAL PARTY of gold constituency.

 

Factioncrypto has a corresponding crypto constituency  Factioncrypto is the REAL PARTY of crypto constituency.

Actual political identity; that which determines what any individual or group within capitalism will do is determined by the form of money each faction uses.

 

From this we can observe that some factions have a greater or lesser constituency than others to the extent that some constituencies have little or no faction representing them in the elite and some factions have little or no constituency on the ground.

 

This exactly and specifically determines how each faction/constituency will act politically. It means we can begin to predict with an unprecedented  degree of precision what each grouping will do.

 

These degrees of constituency can be arranged and compared in a PERIODIC TABLE OF MONETARY FORMS.

 

We can draw an analogy with the model of an atom. Factions represent the nucleus and constituencies represent the electron configuration outside the nucleus. CONSTITUENCIES therefore influence the relatively trivial domain- the physics and chemistry of the economy and factions influence the profound- the atomic power of the economy.

 

While the specific balance of components varies from nation state to nation state the basic relationship can be described thus

 

From top to bottom these are the money forms with the largest real parties (constituencies)

 

(Largest constituency):

 

FactionInsurance

Faction Credit

Factioncash

FactionEquity

FactionBond

FactionDerivative

FactionCrypto

 

(Smallest constituency)

 

I will apply my model to two well known historical anomalies to illustrate how effective it is:

 

The mystery collapse of ‘left wing’ working class politics and

 

The mystery of Quantitive Easing:

 

1:The mystery collapse of ‘left wing’ ‘working class’ politics

 

Each monetary faction has a constituency. This is the real nature of societal division. In Britain up until the 1980’s the vast majority of what is called the ‘working class’ were represented by Factioncash and were therefore members of Cashconstitiuency. They were paid in cash. They purchased in cash. They lent and borrowed in cash. They relied on cash as the means to extract their share of society’s wealth.

 

But as you know in from the 1980’s through massive economic reprogramming the majority of ‘working class’ was forcibly transferred from Factioncash to Factioncredit. They were relocated in Creditconstituency. And so their priorities and allegiances accordingly changed.They were paid in credit. They purchased on credit. They lent and borrowed in credit. They relied on credit as the means to extract their share of society’s wealth.

 

It is this which explains the collapse of ‘working class’ left wing politics. In essence it was the forcible transfer of political allegiance of the ‘working class’ from Factioncash to Factioncredit.

 

The mystery of Quantitive Easing

 

We are familiar with the immediate aftermath of the initial credit crunch. There were a number of meetings between Obama and the bankers. The story goes that the bankers issued Obama with an ultimatum: back us and back derivatives or we will bring the system down. Why did the administration go along with this demand? Was it because they are all Wall Street stooges etc?

 

Consider the reality of the situation from a faction perspective.

 

Derivativeconstiuency (DerC) was effectively bankrupt. That ‘s what the Credit Crunch crisis was effectively all about; are derivatives to be accepted and protected or are they to be refused protection are therefore be deemed to be worthless – a bubble?

 

Factionderivative (FacD) the political representatives of DerC went to bat in a do or die situation. But this was not something new it had been the same for every successful faction since capitalism began.

 

And FacD had an ace in the hole. The administration was Monetarist and as you probably know Monetarists ABSOLUTELY HATE cash more than anything else on the planet. So the FacD play was simple: Let’s use this opportunity to get together to f*ck cash for once and for all. That was the true nature of the play. And it has worked. Derivatives were preserved at the expense of cash.

 

Authors note:

I know this is all a bit scrappy and in semi-note form but it is covering a lot of territory and I want to get as much of it as possible down as quickly as possible. I will return to the themes and ideas I have outlined here at a later date.

By the way, I am Factioncash (FacC).

‘I Come Not To Praise’ Or The Entertainer Or 293 Or 293 Or 293

 

 

Now we have reached the stage where the only people still talking seriously about the ‘working class’ are a conglomerate of fleabitten left-wing radicals and some of the more sentimental elements of the libertarian right.

 

Increasingly the phrase: ‘The Working Class’ is beginning to sound like a rhetorical relic of a bygone age. Meanwhile modern ‘liberals’ are reduced to supporting the machinations of CIA/deep state proto fascists against elected President Donald Trump. Formal democratic values are following the ‘Working Class’ off stage left….

 

Left and right wing perspectives have collapsed completely into a state of complete all encompassing confusion. The historical narratives of Capitalism and Socialism that have dominated the past century and a half are now effectively dead as methods of mobilising large sections of society.

 

Ask yourself this simple question: In the world in which we live now could any government anywhere get significant numbers of people to fight and die under the banner of ‘Socialism’ or even that of ‘Capitalism’ ?

 

While this process of collapse and decomposition has been taking place I have argued that both socialism and capitalism are at root expressions of Germanic political culture. This is a materialist analysis. It is founded in concrete history. capitalism and socialism are complimentary to each other and each is a necessary corollary of the other.

 

If this is correct the collapse of capitalism must necessarily entail the collapse of socialism. And likewise, the collapse of socialism must necessarily entail the collapse of capitalism.  Just as Capitalism and Socialism were once both mutually supportive, in their death throes they are mutually destructive, dragging each other into the abyss.

 

I have argued that the political narrative of capitalism finally collapsed in the credit crunch. Massive open ended state intervention necessary to preserve even the hollow edifice of capitalism showed that there can be no longer be any chance of a meaningful free market anywhere in the world.

 

Like the ‘working class’,  even the phrase ‘free market’ sounds somehow fringe and unconvincing. And on the other hand political and economic developments since 1945, in particular since 1970, have shown that socialism is not now, and can never be a viable conception for the organisation of European society.

 

In light of what I argue above this implies that the final failure of capitalism in the result of the failure of socialism and this is so. In the final analysis socialism failed to save capitalism from itself…

 

The main consequence of these developments is that because both Germanic grand conceptions of history has failed, neither has an interest in any grand narrative of history. Both Socialists and Capitalists, ‘left’ and ‘right’, are now only interested in spreading short-term confusion hence the descent into increasingly petty and meaningless attacks on each other.

 

Neither side of Germanic society has a convincing story to tell, but you can be sure that they are damned if they will allow anyone else to speak into the silence. Because that is definitely not in the interest of Germans as a whole. And if you don’t understand that Germanic peoples recognise and try to act in their own best interests as a group you are a fool.

 

Still, as The Entertainer Archie Rice says : ‘I have a go, don’t I?’

 

So Here I Go.

 

Here are the barest bones of a history of the rise and fall of the Germanic Empire with reference in particular to the role and significance of the cult of socialism .

 

We can take the mid-16th century as the foundation date of the Germanic Empire. The material basis for this empire was the emerging practice of applied science combined and contrasted with colonial expansion which I will characterise here as Evangelism.

 

Follow The Money- Follow The Wealth

 

Both the knowledge base that was to be cannibalised into science and the organisational and political missionary structures that would give rise to Evangelism were scavenged from the newly destroyed monastic Christian system.

 

The Germanic empire was to be not only a physical empire but more importantly an Empire Of The Mind. It would be brought into existence by a War On The Mind- this War On The Mind took the form of a war on Christianity. Capitalism ravages the minds it makes war on and in just as trench warfare ravaged the landscape of the Somme..

 

Physical wealth was only a small part of what was actually owned and controlled by the Catholic Church. By far the greatest part of it’s wealth was intellectual, cultural and spiritual. It was clear that the ignorant and boorish among the German Princes and their underlings coveted the material wealth of the Church. But the more sophisticated coveted the intangible wealth of the Church.

 

The effects of Christianity had transformed the peoples of Northern Eurasia; Gallic, Slavic and Germanic alike , but it did not transform them in the same way. In North West Eurasia it unified some of them under the Catholic church for a while, but it could not wipe out the fundamental differences between the tribes. So let us be absolutely clear: Christianity NEVER successfully converted all of North Western Eurasia. Large parts of Germanic society never actually became Christian in any meaningful sense of the word. This understanding is fundamental to my analysis.

 

Germanic tribesmen were proselytised and educated by Christian missionaries transforming their social potential. But Christianity did not ‘take’ in Germanic parts of NW Eurasia. The form of Christianity triumphed but the content did not.  So powerful was Christianity that even the distorted shadow of its form alone could create the basis for a world dominating empire.

 

Finally, persistently inadequate doses of Christianity produced a form of  resistant intellectual bacteria. Germanic societies produced a bastardised mirror image of the Christian civilising process which reinstated their own pagan culture as the dominant form of society. The name given to this anti-Christianity is Protestantism.

 

Protestantism is by definition National Christianity.

National Christianity is to Christianity as National Socialism is to Socialism.

 

The structure of both Continental German and Anglo Saxon societies were determined by what they chose to take and what they chose to leave behind from the Christian monastic system they overthrew. Geographic location led Anglo Saxons to choose Evangelism and forsake Science. Landlocked Germans forsook Evangelism and chose Science.

 

This brings us to the birth of ‘Socialism’.

 

Socialism in its fundamentals stems from an attempt to reconcile the Evangelism of the Anglo-Saxon western Germanic empire and the Applied Science of the Continental eastern Germanic empire. Socialism sought to neutralise Science by means of welfarism and  to neutralise Evangelism by means of internationalism (multiculturalism). From this it would create a centre ground where the peoples of the Germanic empire, the ‘working classes’ could unite.

 

The Odd Couple

 

From this perspective we can begin to clearly see through the murk of historical propaganda back to Karl Marx in London- Marx the professional intellectual and son of a Protestant convert; a Continental German in one of the epicentres of Saxon culture. Karl Marx together with Friedrich Engels-a wealthy German mill owner fascinated by science and history and Gallic immigrant women.

 

Who better, who more likely than these two: Marx the Michelangelo and Engels his Pope Julius, the ambitious Protestant intellectual and the materially wealthy capitalist ,in this particular time and place, working together to unify Con-German Applied Science and Saxon colonial Evangelism? Seen from this perspective their joint authorship of the formal tenets of Socialism and Communism seems almost inevitable doesn’t it?

 

Ironically enough, Socialism has always managed  to avoid being subject to a rigorous Marxist analysis of its origins, content and purpose. It has managed to combine aspects of social philosophy, religion, economics and even fringe lifestyles in an undifferentiated blob intentionally constructed in such a way as to avoid rational analysis.

 

It is this irrationality as much as anything that has been the cause of the conflict that has dogged the Socialist movement since it’s inception. Socialism was intended as an antidote to emergent Protestant applied science. It could not kill the emerging Germanic social sciences but it did horrifically maim them so badly that they in turn could never deal a death blow to Marxism!

 

From Socialism to Communism

 

Marxism predicts an inevitable fundamental catastrophic collapse of capitalism as a result of its internal contradictions. It follows that capitalism can be preserved for an extended period if it is partially reformed and ameliorated by socialism. When Capitalism goes wrong socialism is used as a corrective. Socialism then reverts to capitalism until the next crisis.

 

But of course if capitalism is no longer capitalist socialism cannot correct it. In other words socialism can heal capitalism but it cannot bring capitalism back from the dead. Once capitalism dies socialism cannot resurrect it. This is the logic behind communism and its relationship to capitalism.

 

We know without a doubt that Socialism failed to save capitalism from disaster  hence the First ‘World’ War. Specifically, socialism failed to save capitalism because it failed to unify the two halves of the Germanic empire and the two halves of Germanic thought; Anglo Evangelism in the west and German applied science in the east. We know this because the two halves of the Germanic empire started killing each other directly using the new science of war and a new form of colonialism.

 

And we know in the moment of socialism failing to save capitalism that communism was vividly realised in the form of the birth of the Soviet Union.

 

Of course this was by no means the end of the story. Where Socialism failed to unify the two halves of the Germanic empire by argument, National Socialism emerged two decades later to unify Germanic society by force.

 

It failed. But it did finally physically liquidate socialism forever. The possibility of Socialism ever triumphing died in the death camps.

 

The important points to take away here are:

 

Contemporary left and right politics are meaningless -they are an intentional distraction from the fact that both narratives have been shown to have comprehensively failed. Do not get involved on either side of this increasingly irrational petty squabble.. Focus on the main narrative.

 

Socialism and capitalism are both Germanic cults whose ultimate purpose was to preserve and extend the Germanic empire. Their death means that the death and dissolution of the Germanic empire will now accelerate and intensify.

 

It is possible to have a grand narrative.

 

But do try to understand that even the very idea of  grand narrative sets you against both Germanic left and right.

 

It makes you a revolutionary.

 

This Used To Be A Hell Of A Town Or Kristallnacht Or Rashomon

 

Earthquakes and wars flatten streets, factories, homes and buildings.   But disaster gives an observer the chance to see   the layout of a city revealed in a way that otherwise would be impossible.  Now the collapse of the traditional liberal ‘left’ allows us to see right across a Germanic political city unimpeded by many of the structures that have obscured the view for the past century.

 

As we survey the newly revealed topography we can begin to understand what has collapsed and how . We can see that every major event in Germanic politics and culture over the past four decades is the result of the collapse of the Germanic left and the dissolution of the political structures it created.

 

The Germanic left existed as a globally significant social force for 100 years from the late 1870s until the 1970’s and its final utter collapse. In that century, socialism transformed the way that Germanic societies operated both internally and in the rest of the world.

 

Socialism acted historically as a means of extending and consolidating Germanic economic and political power in the same way that the missionary movement extended and consolidated the power of colonising nations in the two centuries before the rise of the modern Germanic empire.

 

Socialism  justified ever expanding Germanic control of the world’s resources under the rubric of ‘progress’. The pains and tribulations inflicted by  Germanic capitalistic control were justified on the basis that subject peoples were receiving the gift of progress and development tomorrow as compensation in  trade for pain and suffering today. Just as the inhabitants of Manhattan exchanged their island in return for a box of worthless trinkets, so generations of  world people have had their real future stolen and exchanged for  Germanic ‘progress’.

 

Let us be absolutely clear; at base the ‘left’ and ‘socialism’ are apologists for and enablers of Germanic control and nothing more. Socialists  plead to the masters  on behalf of oppressed peoples and make a show of seeking some mitigation of their suffering. In turn they seek to instruct these lesser peoples in the ways they could avoid unnecessary suffering and even further their interests under the Germanic system. It’s all about how to get along and not cause too much trouble. We might be even able to squeeze you out a little ‘welfare’ payment if you are good.

 

The Germanic left acted as self appointed mediators between the powerful and the powerless,  oppressor and  oppressed; between the Germanic nations and the rest of the world. It is not really any wonder that Lenin and the Bolsheviks attitude towards the Germanic ‘left’ soured from friendly contempt to cold hatred over the period of the Russian Revolution.

 

Lenin came to understand that the Germanic ‘left’ was German first and socialist second. Which really means capitalist first and socialist second. When the mask of fake socialist internationalism was stripped away from the Germans the stage was set for a war of genocide against the Slav people. When there was no more advantage in hiding, the German werewolf came out from behind the trees….

 

After the Holocaust and the attempted Slav genocide  it had become apparent to the worlds population that Germanic nations armed with modern technology were if anything, more savage and more barbaric than any of the ‘backward’ nations they had claimed to be developing. The myth of progress through capitalism and Germanic culture had been IRREVERSIBLY damaged. If the Germans couldn’t civilise themselves through technology and progress, how were they supposed  to civilise the rest of the world?

 

This internal and external collapse of the ideological structure of capitalistic Protestantism lead directly to the protracted sickness and death of its deformed twin sister, socialism. It was not the Germanic ‘right’  that was discredited to death in the concentration camps of the second Germanic War, it was the ‘left’. This is Tragedy in the classic sense of the word.

 

‘Socialism’ did not fall with the collapse of the Soviet union in 1991, it fell with the first images of Auschwitz that reached  the world 45 years earlier.

 

The ‘Reformation’ and dissolution of the monasteries and the Church began with the murder of Catholic monks. The fall of socialism began with the murder of German socialist aesthetes in the concentration camps. This is not co-incidence. One is a replay of the other. If you doubt it, look for the roots of Nazi anti Semitism in  Martin Luther’s ravings.

 

Dissolution is an historical form of Kristallnacht carried out against Catholics that transformed the social, political, economic and moral landscape of North West Europe. The Protestant Kristallnacht has been absorbed into the historical fabric of Europe, but it is still possible to discern the shape of corpses buried beneath the ground.

 

The monastic movement was characterised by the ownership and administration of land in common under the authority of the Catholic church and the regulation of local societies under the administrative hierarchy of the clergy. This formed the basis for what is known as the ‘feudal’ economy.

 

After the initial shock of the attack on the monasteries, the total stripping away of their accumulated wealth took a considerable amount of time. And it was this process of stripping away that gave the new Germanic states and their societies their specific nature.

 

Firstly, the land that had been supposedly promised to the peasants of Germanic Europe was  rapidly allocated to the German princes behind the Reformation. It was this accumulation of land wealth into private hands from its previous common ownership, that formed the basis for Germanic Land democracy.

 

Once the concept of common ownership of land was effectively abolished, a whole section of society was forced out of the agrarian economy and into the cities. This of course, was the basis for urbanisation the creation of the ‘working class’ and the Germanic cult of capitalism.

 

As well as the land  there was  other  wealth within the monasteries. These included artworks, relics and artefacts,  and just as importantly,   wealth in the form of  knowledge which when scavenged, would form the basis for the cult of science.

 

Once the princes had had their pick of the wealth from the Church, what remained was left to the ordinary people. They came to scavenge in order of local social power and status and stripped away what they could – carvings, tapestries etc until even the  carved woodwork and the masonry work was carted away by peasants and used to build the walls of pigsties and cattle sheds etc.

 

Something very like this has happened and is happening  in the dissolution of socialism. What we can actually see right now in front of our very eyes, is various groups  within Germanic society breaking up and carting away the remaining wealth of socialism.

 

The national public health service. The public education system. The public housing system. The public transport system. Even the army. These are all examples of the hard wealth of socialism that are being  looted and dismembered.

 

But just as the knowledge base of the monasteries was taken away so the social intellectual content of socialism is being shared out among the scavengers

 

The organic food movement

Anti corporatism

Localism

Communitarianism

Even Survivalism !

 

are all aspects of SOCIALIST  social wealth that has been carried away by the modern German peasantry. And this leads to what is most startling about all this: Where the looted goods of Socialism have been turning up.

 

I explained that the looting of the Church was carried out according to social status. The German Princes got the land and the most valuable items. This obviously corresponds to the new German princes who have reaped the rewards of privatisation and financialisation.

 

But look where all the other stuff has gone…

 

To name but a few things:

 

The spirit of self education and enquiry turns up as deformed conspiracy theory in the hand of David Icke etc and other ‘researchers’ in the alternative media

Anti corporatism ends up as Trumpa-lumpa cartoon protectionist tub thumping a la Alex Jones

Organic food taken over by corporate wannabees

The desire to be free on common land ends up as some poor sap running round in a camouflage jacket in the name of survivalism

 

I said there was a close relationship between the Dissolution and  Kristallnacht. Think of the way that the wealth of Communists, Jewish businesses etc all ended up in German hands. The houses, works of art, furniture etc. all appropriated  and their owners liquidated. You could be talking to a hausfrau in the street in Dusseldorf and realise that her  earrings are made of the gold fillings from somebody’s teeth.

 

 

And when the holy places have been stripped bare. And everyone in German society, even down to the lowest has had a chance to pick over the rags and the rubble. And the rag bag gang  have taken everything there is to take. And the even the doors have been stolen so the wind blows through and the roof of the building is caved in . What will be left for the likes of you and me?

 

Well…

I just posted that bove and then I saw this!!!

 

 

We cannot celebrate revolutionary Russian art – it is brutal propaganda

The Royal Academy is showcasing Russian art from the age of Lenin – but we must not overlook that his regime’s totalitarian violence rivalled nazism

https://www.theguardian.com/artanddesign/jonathanjonesblog/2017/feb/01/revolutionary-russian-art-brutal-propaganda-royal-academy

 

Half a Sixpence Or Wiggle Room Or Everything’s Small In America Or Discover The Power Of TV Advertising

When I first began writing about the Credit Crunch and its consequences  I said that the defining moment in this cycle will come when the decision is made to re-introduce aspects of the pre-Monetarist economic system to a greater or lesser extent.

 

I argued that the Credit Crunch was not a ‘natural’ crisis in the sense that it arose out of production and trade processes like previous crises in the last century. I described how the Credit Crunch was instead the consequence of the solution implemented to combat inflation and stagnation of the 1970’s. The Credit Crunch was the product of past medicine not contemporary illness.

 

Monetarism was created to cure the problem of inflation, specifically wage inflation, for once and for all. Effectively, it removed the possibility of workers being able to directly influence the economy through collective wage demands. From now on workers as a group would have to accept whatever was offered by the economy instead of visa versa.

 

This was achieved by a combination of suppressing trades unions, dismantling of work place legal rights and the introduction of truly large scale mass immigration. These had the effect of permanently altering the supply of labour available.

 

In tandem with supply side reforms to the labour market Monetarism advocated a move towards a mass credit economy and most crucially the introduction of democratised money through financialisation. This combination of measures in total produced a low-wage, low discretionary spend and low growth economy in the aftermath of the Credit Crunch.

 

To reiterate the point: In the sense that Monetarism was a planned attack on the post war political and economic settlement, the Credit Crunch that followed from it was entirely voluntary and entirely avoidable.

 

But if pundits are to be believed all this is to be overturned- or at least corrected to some extent in a kind of counter reformation to Monetarism. We are told that under Donald Trump America, (and Britain under the Brexit regime), will return to the old style ‘great again’ economy .

 

Inflation will arise from the dead and interest rates will lift in response. We are told that as part of this cycle of cause/effect, real wages will also begin seriously  rising after decades of stagnation.

 

I understand now that my initial analysis of the Credit Crunch was incorrect in that it did not take into account the significance of derivatives and the permanent effect they would have on the global economy. It was only after I began to write about the central bank response to the credit crunch in the form of  Quantitive Easing that I realised that derivatives were entirely novel in the effect they would have on structures within developed economies.

 

Derivatives are a new privately issued form of money. As such, they have colonised sections of global economic activity. As a consequence of this colonisation derivatives  permanently distort the total global economy to the extent that they are allowed to operate within it.

 

The mistake I initially made was not to realise that even if the old world was to some extent allowed to be re-introduced into the new world, it would not be on the same terms as previously. History is one way street. This brings us to the central theme of this piece which is the new shrunken environment into which Donald Trump will birth his new great America.

 

You will probably have heard  of ‘shrinkflation’ in which the packaging of a commodity remains more or less the same but the actual product within the package shrinks. For example look inside a bag of potato crisps and you find it will now be less than a third full- the bag is mostly air. A bar of Toblerone chocolate has famously shrunk to the size of the foothills of Wales instead of the mighty Alps it was supposed to represent.

 

In terms of commodities, the sound of the future seems to be a ‘capitalist rattle’ where shrunken products jiggle around in their oversized packaging. Something similar has happened in the world of politics producing ‘wiggle room’.

 

Wiggle room is the phenomena whereby it becomes increasingly difficult to attribute any given outcome to any particular cause. (See what I have written on the ‘Secret Economy’)

 

I have referred to sawing the lady in half on more than one occasion as a metaphor for the new politics and economics.The key to this trick is understanding that there is a lot more room in the box the lady goes into  than you might suppose. The wiggling fingers and the wiggling toes that you can see do not actually belong to the same person inside the box but instead to 2 separate people.

 

Something a lot like the sawn lady has recently been happening in the world of Anglo-Saxon politics and goes directly to the question of the nature of the new political movement that has given rise to both Brexit and the election of Donald Trump as president of the United States of America.

 

I have characterised this movement as Anglo Saxon nationalism as distinct from   those on the liberal left who regard it as a form of white nationalism with its concomitant implications of racism.

 

The standard Trumpist retort to accusations of racism has been to argue that the same public that elected Donald Trump is the same public that elected Barack Obama on two occasions previously. If these people were prepared to let Obama rule they can hardly be regarded as being racist –can they?

 

But this overlooks the fact that there is a large amount of ‘wiggle room’ within the American electorate. Only half the potential voters in America actually bother to turn out for elections generally and of that half, only half again actually voted for Donald Trump. Which means Trump was actually selected by a quarter of the electorate.

 

Following from this it is entirely possible that both Trump and Obama were actually elected by two more or less entirely separate and different constituencies that have enough spare room within the electorate to hardly overlap at all.

 

In other words it is entirely possible that the vast majority of those who voted for Trump would never in any circumstances vote for Obama or any other black man.  They are in large part an entirely different constituency from the liberals. If you look at the sawn lady’s wiggling fingers and then at her wiggling toes you might start to notice that they are a slightly different colour…

 

The same is equally true in the case of Brexit. Only around a quarter of the available population actually voted to leave the European Union. So the idea that the leave voters represent a disillusioned previously semi liberal strand of mainstream British society is at least questionable.

 

This ‘bagginess’, this loose fitting wiggle room system, is one that tends to lend itself to the performance of conjuring acts such as sawing the lady in half. Given that this is the case, it seems hardly remarkable, in fact entirely predictable, that such a system would attract a showman like Donald Trump.

 

I have described the electoral space that allows Trump and Brexit to rise to prominence. But underlying this there is an economic hollowing out that provides the basis of these political phenomena.

 

The creation of privately issued democratised money in the form of derivatives effectively gives us an economic version of two magician’s assistants within the same box. The wiggling toes and fingers that you see do not belong to the same body. That is why inflation and deflation, labour participation rates and unemployment, equity and bond prices all seem to be sending conflicting signals that we know simply can’t be possible in the real world.

 

If money can be described as an information signalling system then two forms of money privately issued and government issued, existing side-by-side and sending out coterminous signals can only result in increasing confusion.

 

Inflation signals or deflation signals, or growth signals or shrinkage signals are being sent out by either privately issued derivatives economy or the government issued general money economy. It is virtually impossible to say which is which. But the point is that this is not one information system but two systems existing side by side.

 

I have previously argued that the endpoint of this phase of democratised money will result in roughly half the worlds economy being colonised by derivatives. This is not a general guess, a number of pundits have previously indicated that the long term average interest is expected (required), to be 2 1/2 to 3 % .In consequence, Donald Trump’s claim to make America Great again can only really mean making half of America great again or America half great again.

 

In a world where half the economy is colonised by democratised money derivatives interest rates can only rise to half their potential maximum. By the same token real inflation can only rise to half its potential maximum. The state sponsored economy can only grow at half its potential rate at maximum. In other words, every and all  aspect of the system can only operate and exist at half the previous level if there is only half the economy  to operate within.

 

So when I say that resolution of the credit crunch crisis is dependent upon how much of the old world the elite is prepared to allow to re-emerge, from the perspective of democratised money, the maximum amount that can be allowed to emerge is 50%, if that is indeed the level at which derivatives will be allowed to colonise the world economy.

 

From this perspective it is possible to make some  specific predictions as to the numbers behind Trump’s make America great again strategy.

 

The long-term average underlying interest rate in the developed economies is around 5%. I have for a long time predicted that the long-term normative interest rate post credit crunch will be 2 1/2 to 3%.

 

From what I have said it  should also follow that the long-term average normative inflation rate will settle at around 1 1/2– 2 % and that the growth in GDP rate and  growth in employment rate should also settle at around half their historical real average in the post Credit Crunch world.

 

But they won’t of course, for the very straightforward reason that they are made up figures…

 

However there are a number of real life indicators that we can say will be restricted to half their previous level of growth under the half and half economy.

 

Growth in  life expectancy will be cut to half its post war average rate in the developed world.

 

Growth in home ownership will also be cut to half.

 

The average fall in the rate of poverty will also fall to half its previous post war average.

 

So now we know that Donald Trump is going to end up being round about half as frightening as the liberals thought he was going to be..

 

Extra Information

Theresa May is set to announce revolutionary social reform policies – this could be the moment she silences her critics

She insists that the state has a significant role to play in alleviating the everyday injustices faced by people who do not qualify for benefits. Announcing shiny new policies is the temptingly easy part of governing. Much more difficult is delivering the same

http://www.independent.co.uk/voices/theresa-may-speech-social-reforms-revolution-thatcher-brexit-critics-a7516156.html

House Burning Down

 

It might be useful to consider further the relationship between the production of paper news and the production of paper money.

 

I observed that both paper money and paper news are forms of informational transaction. This might be more accurately described as  the transfer of meaning. In this sense ‘meaning’ is the value measurement of information; Meaning is the unit of value of information because meaning transforms data into information and makes it valuable. The construction of meaning is exactly the assigning of value to data.

 

Consider hyper inflation in the money supply . In the traditional monetarist model (the one that has more or less taken over all mainstream economics), this is caused by an oversupply of money into the market. In other words Monetarists argue that the problem of hyper inflation and inflation generally is one of quantity. Actually the problem is one of quality. We can show this with the following:

 

There is a direct relationship between publishing an edition of a newspaper and publishing an edition of money, which is effectively what is done each quarter when the interest rate is set. The interest rate is news about how things are going to be according to a central bank and money notes carry this news.

 

Money published at 0.5% base rate is a different edition of money from  that published at 1% base rate. Same ‘newspaper’, same publisher, but different news, different information, different headline.

 

Just as each particular edition  of a newspaper contains information specific to a particular time and place (as I mentioned last time), the paper money note also contains information. I will describe the nature of this information below but for now lets stick with newspapers.

 

In the example of a newspaper, let us say that the edition of January 6 has the headline: ‘War Is Declared!’. And the edition of January 7 has the headline that ‘Peace Is Declared!’. Taken in sequence the meaning of these events is clear.

 

First there is a state of war, then there is a state of peace and the present condition of affairs is that of peace.

 

Now imagine that the newspapers in question were not dated January 6 and January 7 so that there was no way of telling which was the first headline and which was the second. It could be the case that war is declared and then peace declared or it could be the case that peace is declared and then war is declared. So in the first instance we are now in a state of peace and in the second instance we are now in a state of war.

 

Now let us say that an unscrupulous news agent receives both editions of the undated newspaper from the publisher in correct order but chooses to release them to the local population in either one or the other order for his own personal advantage. If the local newsagent wants to promote the idea that we are at a state of war he will release the newspaper with a war headline second and if he wants to promote the idea that we are at peace he will release that newspaper second.

 

Just such an instance as this is described when  banker Nathan Rothschild famously withheld news of the British victory at Waterloo in order to take advantage of market uncertainty as to the outcome of the battle. By the time the markets received the news that Wellington had won,  Rothschild had bought equities at knock down prices  and made a killing on the rising market.

 

If the local population becomes aware of the possibility that news may be manipulated by a local newsagent for the purpose of controlling perceptions, they might hold on to one or more editions of a newspaper in order to compare headlines and get some idea of what the actual facts of the matter are in sequence.

 

 

Logically, in such a case the local population will have to conclude that NO particular edition of a newspaper is to be objectively trusted and that all editions are either wrong or lying. In other words the paper in its entirety is worthless rather than just this or that edition. This is the qualitive nature of the problem.

 

After all, how can two editions of the same newspaper with the same editor and the same journalists and with no differential date information be judged between? How can you know which is the truth NOW and which is not?  This is in effect what happens in the case of hyper inflation.

 

Think of a paper money note as a generalised abstracted unit of information. On a more sophisticated level we can think of a money note as a unit of evidence. We can say that one or more units of evidence goes up to make an argument and that therefore the more units of evidence you can muster in support of any particular argument the more likely you are to win that particular argument.

 

In a standard economic transaction the argument in question is that you should sell a car,(or any other commodity), to me for this number of paper notes. Or to put it another way, you should swap your car for this number of paper notes.

 

The more units of evidence that you can muster in support of this argument, i.e. the more paper notes that you offer in return for the car, the more likely you are to win that argument.

 

But there is an unfortunate corollary to this. If you win the ‘argument’; by offering more pieces of paper money evidence than the other guy, you also implicitly argue that each individual piece of paper money evidence is worth relatively less.

 

We can return to the practical consequences of this shortly but first, as I argued last time paper bank notes or units of evidence are introduced into the market at a particular time and particular place and at a particular price. So in this sense, they are first and foremost evidence in an argument on behalf of central government made to the general population.

 

The individual argument that paper money notes are evidence for is: ‘These pieces of paper are valuable to this or that extent not only in comparison with objects such as commodities, but those pieces of money paper that have gone before and those pieces of money paper that will come after’.

 

This is of crucial importance.

 

From this perspective the crisis point of hyper inflation occurs when too much information is presented at any one time which results in not a quantitive problem but a qualitive one.

 

Let us say that two purchasers are competing to buy a particular car. They both make the argument that you should swap the car for this number of pieces of paper money. The number of pieces of paper money is the totality of evidence that this or that exchange argument is true and valid.

 

Obviously they cannot offer the same number of pieces of paper as evidence/arguments or the seller will have no way of differentiating between the two. So let us say that Buyer A offers 100 money units and buyer B offers 110 money units. Buyer B wins the argument because he has offered more ‘evidence’ in support of his argument. So far so good.

 

But what if Buyer A offers 100 units as before but Buyer B offers 5000 units? What is the seller to make of that? These two arguments are wildly different, they containing wildly differing amounts of evidence in the form of money notes. (bear ‘fake news’ in mind at this point)

 

Well surely the answer is simple, the seller takes Buyer B’s offer.

 

Not so fast. Most sellers would want to know a little more about it before making a decision in these circumstances. The problem is the totality of evidence.

 

Instead of 210 units in total chasing the car,(both bids), which might be seen as reasonable there are 5100 units chasing the car which is not seen as reasonable given what the seller knows or thinks he knows. Something else is going on…

 

What if a third buyer comes along ten minutes later and offers 10,000 units for the same car? Now the seller will be pretty sure something is seriously going wrong. And the inevitable effect is that he will be forced to distrust all money notes in whatever amount because they are all the same.

 

If ten information money notes are worthless then 10,00 money notes are equally worthless, this is both the strength and weakness of the informational money system. The implication is that the seller  will be forced to distrust the overall message he is getting from the government. But it is a qualitive and not quantitive problem because it does not rely on amounts.

 

So what was that central bank/government message I referred to above? It is that ‘We are in charge and everything is all right’. That is the basic unit of money news implicit in every money note.

 

The second piece of money news is the interest rate, which is the price at which private banks buy money from the central bank. This can be understood as that particular headline for the quarter. But this piece of money news is intimately tied up with the distribution mechanism of the paper notes themselves.

 

A newspaper printing and distribution operation will have a central printing press, regional distribution warehouses and sub warehouses which distribute to newsagents and even paper sellers on the street.

 

Each element of the distribution chain decides how many papers to take and to move on down the chain of distribution according to how profitable they predict this process will be. This depends to a large extent on the nature of the headline. ‘Queen Dies!’ or ‘War Is Declared!’ will tend to sell more copies than ‘Water Supply Goes Off In Addis Ababa’ or whatever. (perhaps not in Ethiopia though..) So the headline affects and ultimately controls the distribution process.

 

The same is true with interest rates. Depending on what the Central Bank decides the interest rate will be, each element of the distribution chain, from the large commercial banks downwards decides how much of this edition of money they will take and distribute according to how profitable they calculate it to be.

 

But what is of the utmost importance to understand is that in the case of money news everyone in the chain acts like the unscrupulous news agent I described above. Everybody is encouraged to withhold editions of the news  and to release them onto the market only when it is in their individual best interests!

 

When you receive any particular edition of money, you either release it into the public by means of spending it or you withhold it by means of saving it. You manipulate the information contained in the note for your own best interests. That is what you are supposed to do- to lie, to spread disinformation.

 

Of course everybody is therefore equally dishonest and so no-one can point the finger at anyone else. The system is based upon everybody spreading corruption and lies. Wouldn’t such a system be inherently unstable and prone to periodic collapse?

 

You betcha!

 

Wouldn’t someone try to contain this corruption and tendency to collapse? Wouldn’t they try to devise a system to mitigate the problem?

 

Yes they would. They would take the logical step of trying to date and order the headlines on each edition so they could be read and understood in sequence. How would they do that?

 

By means of a code that can be read and understood by themselves but importantly, not by you. If you doubt this, take out a currency note and find the identifying  code printed on it, usually referred to as the serial number. Do you know what this code means? If you do not, why don’t you? After all it is supposed to be money issued by a democratically elected government in your name and for your benefit!

 

The purpose of this code is for the people who issued the notes to understand each ‘headline’ and the order it was issued in, but not for you, or anyone like you, to be able to.

 

The system is built on a small minority being able to fully understand the meaning of the money news and the vast majority below them taking part in a game of charades where they lie to each other and manipulate the news supply to each other for the purpose of individual advantage.

 

As a simple illustration of this suppose you had 500 units of currency  and you found out that this denomination of money would be abolished or worthless the next day. What would you do? You would try to go out and buy something with it wouldn’t you? You would try to use the information advantage that you had to pass the problem onto someone else. This is the key to inflation and hyperinflation.

 

We are building up a picture of a central money news/information agency that is issuing news on a regular basis. That news/information is then taken up by the various parts of a supply chain and manipulated and distorted in order to obtain the best possible individual outcome but with inevitable damage to the system as a whole. Assuming that he purpose of the system is to transmit information that is.

 

With this news information model in mind we can now go back to look at hyper inflation. The trouble with hyper inflation is that the seller has no way of knowing which is the most valued up to date piece of information on which to base his decision.

 

This problem presents itself as there being too many pieces of money information in circulation. Discrepancies between the amounts of money evidence offered in any particular argument (trade), force the seller  to increasingly regard all pieces of paper money as being equally invalid- hence the hyper inflation.

 

But the root of the problem here is not validity of any particular trade argument and the money evidence presented in support of it  but the equality between each and all pieces of evidence. Because of this money is actually only credible and valid within a relatively narrow and stable bank of circulation. The sameness of each piece of money information  requires sameness of prediction and sameness of outcome to work.

 

No matter how many paper notes are issued in any financial period they are all  of equal validity to  paper notes  issued  in another given quarter. In other words any episode of  inflationary money printing activity is absorbed into the whole of the financial system and is only ameliorated by later activity.

 

Just as any incorrect news report is absorbed into news production and distribution system as a whole. The system relies on its credibility to absorb the effects of any mistakes and keep people believing in the system even as they curse and dispute virtually all of the specific outcomes the system produces!

 

Since individual savers and consumers effectively act as newsagents, storing the information and only releasing it when it suits the particular interest of the moment, it is inevitable that conflicts of meaning and value will happen.

 

Hyper inflation is an insane babble of arguments that taken collectively can only mean that each individual argument is more or less worthless  since in the last analysis it is all the same argument, that we are in control and everything is alright.

 

Periodically the logic of worthlessness produced by exchanging paper money arguments is expressed by and through a significant number of news agents  going from one door to another  desperately seeking a way out as they sense the impending doom.

 

As the doors are increasingly closed to news hawkers selling bogus information  brands the volume of money seeking any  way out increases exponentially until an overwhelming tsunami of money at any and every exit guarantees it cannot escape. Think of it as a house besieged by fifty street newspaper sellers shouting:

 

‘Extra! Extra! Your House Is Burning Down!’

 

while the house owner cowers within.

 

Disaster.

 

In conclusion I will ask: Is there anything we could do to rectify this state of affairs?

 

And surprisingly perhaps, there is a very simple and very straightforward solution. To date and value stamp money. So that instead of being interchangeable all money is clearly given a value – a ‘sell by date’ at which time it becomes valueless.

 

The closer this expiry date comes, the less the exchange value of the money note. This would solve all the problems now associated with inflation hyper inflation and Monetarism then we could…

 

Oh wait a minute.

 

This form of money already exists. It is called a bond. It is what the banks themselves use when they are dealing with central banks.

 

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

LISTEN UP

 

If there is only one thing you take away from all this it should be:

 

THERE IS MORE THAN ONE FORM OF MONEY, THERE ALWAYS HAS BEEN. EACH MONEY FORM SERVES THE NEEDS OF ITS CREATORS. ANYONE CAN CREATE MONEY BECAUSE MONEY IS A COMMONS. MONEY IS A COMMONS BECAUSE IT IS NOT ANY PARTICULAR THING IT IS A FUNCTION- SOMETHING THAT AN OBJECT CAN BE MADE TO DO.

 

GOVERNMENTS MAKE MONEY FORMS TO CONTROL THEIR POPULATION. BANKS AND CORPORATIONS MAKE MONEY FORMS TO CONTROL THE PUBLIC. BITCOIN IS A METHOD OF CONTROLLING ANY SUCKER WHO BUYS INTO IT.

 

PRIVATELY ISSUED DEMOCRATISED MONEY IN THE FORM OF DERIVATIVES IS THE MOST COMPREHENSIVE ATTEMPT EVER DEVISED IN HISTORY TO CONTROL THE WORLD POPULATION DIRECTLY THROUGH THE PRODUCTION AND DISTRIBUTION OF A NEW MONEY FORM.

 

 

 

 

 

 

 

 

 

 

 

 

Not Fake news but Flake News or RIP Tony the Tiger: You Were Grrrreat! | TMZ

 

The recent spat between alt right news outlet Breitbart and capitalist breakfast combine Kellogg is indicative of a new cultural media reality in the Saxon axis. (What a sentence!)

 

After Kellogg decided to pull its advertising spend from Breitbart citing ideological differences, Breitbart responded by ordering a boycott of Kellogg’s breakfast mush by its loyal followers..

 

In the first instance, it is clear that Kellogg’s decision to put ‘money where mouth ‘ is a straightforward illustration of one of the central principles of cultural constituencies;  that in the post free market world commerce follows culture and not the other way round (as free marketers and globalises tried to get you to you believe).

 

What is also interesting was the response of alt-right media organisation Breitbart  by trying to damage Kellogg’s commercial interests. This is an insight into an emergent secondary aspect of post capitalist economy; the subscription model I wrote about last time.

 

I noted that Saxon nationalist organisations in the media and elsewhere will increasingly demand that their subscribers, (as opposed to consumers or investors), actively avoid supporting organisations that do not adhere to their culture. In other words, if you are not with us then you are actively ‘agin’ us and therefore we are actively ‘agin’ you.

 

You can bet that this will spread to other cultural constituencies.

 

The relationship between sponsorship, power, influence and editorial control in capitalist media has long been the source of debate.

 

In developed capitalist societies it is generally accepted that in media there is a tension between the commercial imperatives of advertising and editorial control. It is accepted that advertisers are allowed to control or influence aspects of what is printed in a newspaper, transmitted on TV or radio  in order to maximise the revenue they can receive from advertising in that media. These are accepted parameters of capitalist control over media.

 

Offset against this is a supposed  ‘ethical’ professional code of journalists and editors which means that they are able to some extent to circumvent the commercial pressure to comply with corporate interest.

 

Increasingly this journalistic ethics code has come under pressure, not least from the  explosion of Internet-based alternative media outlets which means that there are now tens if not hundreds of thousands of ‘citizen journalists’ whose relationship to a supposed code of journalistic ethics is undefined.

 

And this changing relationship illuminates an analogy between  the production of news and the  production of money. Money production and distribution can be understood as a form of information dissemination just as news media is.

 

Traditionally newspapers are printed on paper and distributed in the same way that paper Government Issued Money is. The process is that a variety of information brands are delivered to the market to be taken up by different sections of the population at different times in different locations and at different prices.

 

So a certain section of society would buy broadsheets at a certain price and another section of society would by a tabloid title at another price and so on.  Each section of society is not just buying a different news FORMAT but a different news CONTENT. Yet despite this segmentation, the totality of what they are buying is defined as ‘The  News’. This implies that there is such a thing as ‘The News’ and various papers  print various bits of it.

 

The same can be said of traditional government issued money, (including GOVERNMENT SPONSORED MONEY such as bank credits). Currency notes, letters of bank credit etc are provided into the market as concrete paper documents which are then taken up by consumers according to price and availability.

 

Together the totality of different newspapers made up the press and together the totality of different forms of money made up the currency. The NEWS is the TOTALITY of the output of the PRESS. The ECONOMY is the totality of the OUTPUT of MONEY PRODUCERS.

 

Note that the totality of everything that happens on Earth is not the News. In fact the majority of stuff that happens on the Earth everyday is categorised as NOT newsworthy and not reported on. Likewise the totality of everything that happens on the earth is not the Economy. In fact the majority of human activity is NOT regarded as the economy and not counted as such.

 

Given the significance of the ‘News’ for controlling any given society it is inevitable that the state will become involved in its production and regulation.  In many cases, governments become directly involved in the production of news. State sponsored and controlled media organisations like the BBC are an example of this.

 

And it follows that given the significance of the economy in controlling any given society, government will be directly involved in the regulation and ultimately the production of money. In developed capitalist societies this is done by government sponsored private organisations like the Federal Reserve or the Bank of England which operate more or less on a BBC model of governmental control.

 

But if you are supposed to live in a free and open democracy you can hardly have the government clearly controlling what news you have access to . And if you live in a free market economy you can hardly have the government clearly controlling what money or economy you have access to.

 

It is this tension between the necessity of government control and the ideology of open and free that has shaped the relationship between the various elements in both media and economy in the capitalist world.

 

Now increasingly, news (as opposed to newspapers), is disseminated by electronic means. Given Marshall McLuhan’s  famous dictum that the ‘medium is the message’   the increasing pre-eminence of electronic media is transforming the way that news is disseminated and consumed. This affects what news is, who gets it and where and when they get it. And come to think of it, what they do with the news when they get it.

 

Digital news production means it is easier for ‘insurgent’ news outlets to appear because costs of production are rapidly falling. But distribution costs are NOT falling. This is extremely important and I will return to it later..

 

These developments in media  have  led to the emergence of powerful new media blocks that use the ideological rhetoric of the small producer but are in fact simply competitors to mainstream media. ‘Breitbart’ and ‘Infowars’ are two Saxon Nationalist examples of this.

 

This process parallels the rhetoric of Protestantism where a plethora of religious ‘start ups’ -the ‘SMRs’ , (Small to Medium Sized Religions), in the Reformation period was rapidly superseded by a relatively restricted number of larger competitors to the Catholic Church, which claimed they were from the ‘volk’ and of the ‘volk’.

 

Together with the effective collapse of the free market, electronic media has provided the medium for the emergence of cultural constituencies in the field of news .This gives rise to nascent culture, media and subscription wars.

 

It is not possible for these entirely private media conglomerates to provide news in the ‘public interest’. There can never actually be a free press, (in the real capitalist sense that it does not cost anything), under capitalism.  They have to find a way to monetise news production.

 

In this context the digital distribution service becomes increasingly more significant as an additional cost or barrier to access. (See above) Facebook and Twitter  are privately owned news distribution nodes and yet they are expected to act as a public interest conduit for privatised news production sources.

 

As such they are increasingly becoming the subject of territorial dispute. Are they entirely private? Do they have some kind of public interest mandate? Should they be state controlled in part or wholly?

 

This is the dynamic underpinning the debate about ‘fake news’. The ‘left’ wants some kind of government control on nodes like Facebook and Twitter in the  distribution network, the ‘right’ wants to use commercial pressure (boycotts etc), to control them.

 

This development process in the  media illuminates some of the outcomes that follow from the coming prevalence of electronic money (as opposed to the paper kind). Electronic money is of necessity privatised Democratised money in the same way that electronic news is of necessity privatised Democratised news.

 

I can confidently predict that just like the media the proliferation of small-scale digital money producers will  lead to the emergence of medium to large scale competitors to the mainstream money conglomerates. This has always been a fundamental part of the Crackernomics analysis.

 

As  electronic money is increasingly disseminated by electronic means it will affect what money is, who gets it and where and when they get it. And what they do with the money when they get it.

 

So lets draw some of the main strands of this argument together.

 

‘News’ is an abstract metaphysical concept derived from the concrete reality of news production. All the VALID news broadcasters and printers together in aggregate are said to produce the ‘News’.

 

But the concrete historical reality of news production is NEWSPAPERS which are then superseded by electronic media transmission (radio and television) which is in turn being replaced by electronic media.

 

Forget talking about ‘News’ as a metaphysical abstract. NEWSPAPERS were and are limited and defined by WHERE and HOW and WHEN they could be produced and distributed. (So are News transmissions and so are News (‘digitations’?)This specific combination of METHOD, TIME and PLACE defines what NEWSPAPERS were and are. NEWS is always a FUNCTION of METHOD, TIME and PLACE.

 

Here is a simple illustration. A bomb goes off in a city centre. The ‘news’ is that it is a terrorist attack. The news is gathered, processed, edited, printed and distributed in 12 hours. But by the time a customer buys the paper and receives the ‘news’, it turns out it wasn’t a terrorist attack, but a gas leak that caused the explosion.

 

So what is printed in the paper that the customer holds in his hand? Is it ‘News’ ? It can’t be News because it is not true! There is no metaphysical abstract news outside of the way it is produced and there never can be. Content is determined by form.

 

A concrete newspaper is concrete evidence of lying or making an error. (see 1984). News transmissions or digitations solve that problem. We have always been at war with Eastasia etc.

 

This is equally true for paper money. By the time that economic information is created, collected, processed by a central bank and turned into an interest rate that controls the production and distribution of Economy, the information in question may already be proved to be invalid! In fact it usually is….

 

So is the economy produced on the basis of that ‘counterfeit’ information money invalid?

 

The answer both in the case of News and Economy is that these are metaphysical abstracts that are accepted as both true and untrue at the same time. (Yet more Orwell)

 

The known facts and interpretation around any particular news event evolve over time. Interest rates and economic analysis evolve over time. Even though the MAJORITY of what is printed in the name of news and economy can be shown to have been wrong to a greater  or lesser extent, this does not diminish the overall faith in the concept of news and economy.

 

(Note: Paper money hyper inflation is when there are simply too many lies and bad guesses to hide. Note 2: Except in India where they have recently embarked on a wholesale destruction of the paper money evidence)

 

Or it didn’t till recently anyway.

 

But that was before the arrival of Fake News.

 

So what has changed then? What now makes some news providers ‘fake’ and some ‘genuine’? The question might more usefully framed as: What makes a particular news provider VALID OR INVALID?

 

And the answer might surprise you.

 

I have explained that NEWS does not exist in the ether as an abstract. It is the concrete result of the production of different news formats. The same way that NEWS does not exist outside of space it also does not exist outside of time.

 

‘News’ as we see it now is the result of a clear historical process. As I described above this process is intimately linked with the commercial interests of advertisers. And this in turn is intimately linked with the development of capitalism.

 

The ‘modern’ press did not begin in Africa or India or China. This is not a meaningless observation, it goes to the heart of what ‘Press’ and ‘News’ really is. We can see that  the ‘Press’ and ‘News’ is the product of German history and culture just as surely as Protestantism and Capitalism is.

 

Which brings us to the question of validity-not as some kind of abstract quality belonging to abstract ‘News’ argued about by differing interest groups, but as a concrete historical reality.

 

Papers that were published in the beginning of the News industry were the newspapers that received the investment necessary for obtaining news print, distribution and news gathering resources etc.

 

Investment was forthcoming on the basis that newspapers were a viable commercial venture. Newspapers were a viable commercial venture to the extent that they could obtain advertising revenue. They could abstain advertising revenue to the extent that they would comply with the needs and wishes of advertisers.

 

Simply put, traditional papers were valid to the extent they were given the blessing of commercial interests of advertisers.  And that is all. Everything else said about the historical press – all the rhetoric about freedom of speech etc- is just someone trying to blow smoke up your backside!

 

We can see the accuracy of this observation by considering attitudes to the non commercial press/media. Two good examples of this are RT, the Russian sponsored media outlet and the BBC.

 

Both RT and BBC are regarded with scepticism or outright mistrust by large sections of the public in developed economies. They are regarded as suspicious (as in fake news) because they are held to have an agenda which comes from their sponsors which are governments..

 

This agenda is held to be more overt and controlling and less trustworthy than the agenda imposed on commercial press/media outlets by their advertisers. But why should this be so?

 

Because as I said above there is an accepted degree of commercial control that is allowed from advertisers and offset against this is the supposed journalistic ethics that allow journalists to report despite commercial pressure. This capitalist Germanic concept is embedded in the history and the ideology of ‘News’.

 

Central to this cult ideology is the concept of plurality of advertisers which works like this: Advertisers sell products into society which has a variety of groupings and individuals that represent a spectrum of thought and opinion on various matters.

 

The more and varied the advertising corporations are, the more likely they are to represent a variety of opinion which is the supposed endpoint of democracy. The ideal advertising profile of a media organisation would be one that contains a wide variety of large mass producing corporations such as Kellogg.

 

These corporations then advertise in and validate any given media organisation. If the media organisation produces ‘News’ that is against the tastes of the wide and deep variety of consumers that the advertising corporations represent, the advertisers threaten to withdraw advertising unless editorial policy is altered. We have a self sustaining self regulating commercial capitalist media!

 

And this brings us to the central problem. In modern digital media production costs are heading towards zero. This means that the potential commercial pressure that advertisers can exert is also heading towards zero. And since advertisers commercial power is heading towards zero, their position as representatives of society through consumption is heading towards zero. Death of capitalism!!

 

From this perspective we can look again at the story that prompted this piece: The Breitbart/Kellog spat.

 

Breitbart started out as an insurgent small scale  Saxon Nationalist digital media operation with little or no effective media production costs. Under the terms of capitalist cult media it was invalid as it had no plurality of advertisers and therefore no commercial mediation of what it produced.

 

As it became bigger it attracted a plurality of larger scale advertisers up to the level of mush corporation Kellogg.

 

Kellogg received feedback that the content of Breitbart is offensive to some of the consumers it is supposed to represent.

 

Kellog expresses that offense with the threat and then the execution of removal of advertising revenue.

 

This is supposed to bring Breitbart back in line and serve as a warning to other digital media producers. But it hasn’t worked. Because fundamentally Breitbart’s production costs are close to zero.

 

So then pressure is applied to Facebook/Twitter etc, the distribution nodes that serve Breitbart because they CAN be controlled by large scale advertising revenue pressure. But even here, production costs are heading towards zero. This has limited effectiveness. So then the state is called in to regulate under the Fake News justification.

 

But there really is no such thing as FAKE NEWS only INVALID PRODUCTION which is production not regulated by large scale commercial advertising.

 

Its really all about FLAKE NEWS not FAKE NEWS.