GUT#5: The Philosophy Refugee

 

‘The English have all the material requisites for the revolution. What they lack is the spirit of generalization and revolutionary ardour.’

 

Marx waged war on classical German philosophy and failed. He failed because he could not claim to be inheritor of the western tradition and its destroyer at the same time. That method of attack; infiltration and then rebellion, had been open to Luther in his assault on the Catholic church, but not open to Marx; Hegel had seen to that through his development of dialectics.

 

German philosophy (civilisation), learned a lesson from the fate of the Catholic church in the German Reformation and was ready and armed for the day when Marx or another like him emerged. Marx, who saw himself as the ultimate anticipator, had been anticipated by Hegel. The newly emergent political economy as practiced by Smith and Ricardo was not so prepared and payed the price accordingly; it was overrun and devastated by Marxism. Failure in the field of philosophy and success in the field of economic theory defines the nature of Marxism and the relationship between Marxism and capitalist society.

 

Marx set political economy a trap from which it could not escape; a running noose that progressively tightened the more the victim struggled.  Hegel did the same with Marx. Should Marx chose to be  revolutionary, he would be forced to accept the arbitrary nature of power undermining the idea of inevitable historical progress he was advocating.  Although he liked to think of himself as Lucifer in the Abrahamic tradition, Marx is more like ‘Thor’ the German ‘god’ of thunder whose power mainly consists of a form of ‘Sturm und Drang’ – sound and fury ultimately signifying nothing. Every moment across the earth’s atmosphere there are countless micro electrical discharges from air to earth, returning the air to equilibrium charge. In the same way every time one of countless choices or accommodations is made by ‘proletarian’ or ‘capitalist’, Marxism is grounded by a force it cannot account for. A charge builds up and is then dissipated. Every so often a major lightning strike does occur, but these are rare and only a danger to anything that gets between charge and earth. Mostly these electrical storms only serve to frighten children.

 

This comparison between Lucifer and Thor is instructive. It was central to Marx’s conception of himself and his project that he would  lead opposition forces – i.e. be Lucifer, with all other socialist variants subordinate to Marxism after the form of ‘Paradise Lost’. This struggle to dominate opposition would characterise much of the explicitly political activity that Marx and Engels undertook  in the years in which they engaged in active organisation of workers movements. But as Thor is merely one of many German ‘gods’, so Marx is one of a pantheon of 19thC revolutionaries, one whose main job was to scare with lightning and thunder while others sought to pursue a quieter course. Marxism fitted into a niche within Germanic socialism as a whole- as the extreme that less radical elements could use to prompt concessions from bosses and governments and with which bosses could scare workers. Again we return to the idea of Marxism itself being  co-opted, and leveraged in a way that Marx was not able to control. The idea that workers, trades union leaders, churchmen and even finally capitalists could choose to pick up or lay down Marxist thought and rhetoric as it suited them, never seemed to seriously occur to Marx.

 

But again, this is not to deny that where Marxism is blocked in the philosophical sphere it rebounds with double the destructive force against political economy.  Despite his philosophical shortcomings, Marx was if anything, a victim of his own intellectual success in the field of economics. Marx saw modern industrial capitalism emerging from the womb, saw the defect on its face at the moment of  birth, and realised that the significance of this inherent deformity was that it presaged the inevitability of capitalism’s death, even if Marx could not predict the time and place. And it was not just capitalism itself but one hundred disciplines born out of capitalism that Marx cursed. Sociology, Psychology, Economics, Criminology, were  all doomed in the crib  by Marx, like the Bad Fairy in Sleeping Beauty.  If this is true , how did this curse have power? What was the nature of that power? Where did this power come from?

 

Marxism is flawed in the sense that it does not belong to mainstream western tradition at all. It is more in the tradition of  Diogenes and Socrates, which like ‘democracy’ are claimed by the western mainstream tradition in name but denied in action.  Marx’s rhetorical devices are Zen like koans whose purpose is to short circuit thought (philosophy), and lead to action.  This shrinking of the philosophical horizon to the impetus for action is fundamental to the revolutionary impulse. In a similar vein, in his ‘Meditations’ Marcus Aurelius’ Stoic philosophy  reduces the essence of man’s conscious perspective to the span of a fraction of a fraction of a second because the Stoicism he advocated  finds no consolation in the past and no hope in the future.  All Stoics have is the moment they are in and the same applied to Marx. His purpose was to maintain balance over the abyss between revolutionary antithesis and post revolutionary synthesis. In the same way a tightrope walker uses a pole, Marx used projection into both past and future as a means of giving himself stability.. For a tightrope walker, the longer the pole the better it works to balance the tightrope walker. Through historical materialism, Marx incrementally balanced both distant past and distant future over time only as a means  to stabilise his existence in the present. Marx had no serious interest in the past or the future outside of how they might serve him from one second to another. This is a fundamental insight into Marx and Marxists. They are happy to burn the doors and window frames to heat the house for the week. They are happy to mortgage the gutted building to buy groceries for the day.

 

Analysis of Marx’s philosophy has brought us to consideration of Marx’s material facts, in particular why Marx decided to spend the bulk of his intellectual career in London. Simply put, in philosophical terms Germany could create a Marx but not sustain him. whereas England could sustain a Marx but not create him. Like a tadpole becoming a frog and moving from water to lilly pad, Marx changed internally according to environment and  changed environment according to the dynamic of his personal transformation.

 

Marx’s defeat at the hands of continental philosophy had brought him to London as a philosophy refugee but  it has never been clear by what means Marx could successfully live in London, not least in freedom from the attentions of the British state. Marx’s physical existence in London was characterised by poverty and insecurity. It was only through the sponsorship of Engels that Marx was able to undertake his research. Living in London was not materially advantageous to Marx and it is also clear that London was no more advantageous in terms of the likelihood of revolution occurring there. Anglo Saxons had already clearly emerged as the people in Europe least likely to revolt against the processes that characterised the development of capitalism and the people most likely to compromise with them . In ‘The Condition Of the Working Class in England’ Engels noted the process by which Saxon capitalism was transforming itself through modifying extreme aspects of its development.

 

Despite the fact that there was no imminent danger of revolution, there would surely have been some desire to remove Marx as a supposedly dangerous revolutionary, and if not that at the very least to neutralise any threat he may come to pose. Or if not even that, then to make him serve the interests of the British state either actively or passively.  Since Marx was allowed to remain  unmolested we can deduce that the British state clearly felt there was no threat in Marx or saw a positive advantage in having Marx in the capital city of England.  We can reasonably draw the conclusion that at some level Marx served the interest of England against the interest of Germany in that England felt it had nothing to fear from Marx’s philosophy whereas it felt Germany had.  Germany was increasingly seen by the English state and elite  as a competing  and potentially dangerous foreign power, but one whose potential weakness for continental radicalism presented both danger and opportunity for England. And here is the kind of irony and humour that Marx would appreciate.

 

Marx came to England precisely because no-one understood philosophy there. Nobody in England even understood the significance of philosophy.  Because no-one understood philosophy in England, no-one understood how Marx had been already been defeated by classic German philosophy by the time he got to London. In as far as they took him at his word, the English elite accepted to a greater or lesser extent the nature and  extent of the threat that Marx could pose to the emerging German power. They were happy to have Marx in London on the basis that he could provide advantage to them  with regard to destabilising Germany and posed no significant threat to the stability of England. But in fact the exact opposite was true. In actual fact Marx posed no threat to the German elite and every threat to the Saxons…

Advertisements

Don’t Let The Good Be The Enemy Of The Goods

The customer is always wrong…

 

The following appeared in an article in the Indepenent:

German supermarket empties shelves of foreign-made goods to make a point about racism Will Worley Thursday 24 August 2017

 

A German supermarket has emptied its shelves in an effort to make a point about racism and diversity. The Edeka store in Hamburg removed foreign-made products from its stock, replacing them with sign bearing anti-xenophobia slogans. It is believed the move will be followed be a larger campaign from Edeka, the largest supermarket chain in Germany. Surprised shoppers entered the store to find that much of the normal selection was gone, demonstrating how reliant they are on other countries for everyday products. Instead, they were greeted with signs saying: “This shelf is pretty boring without diversity.”

http://www.independent.co.uk/news/world/europe/edeka-german-supermarket-empty-shelves-racism-diversity-largest-chain-a7908551.html

Just to make it clear if the article itself is not obvious enough: This shop in Germany no longer sells capitalist ‘goods’ as we have understood them. In fact it has removed ‘goods’ from it’s shelves in order that we might more clearly see what it is actually selling; that we might more clearly see what it’s shelves are now actually stacked with.

This shop has stacked it’s shelves with, and is now selling Good, (as opposed to ‘goods’).

And since it is actually selling Good as opposed to ‘goods’ it follows that the accounting conventions that have previously applied to the sale of ‘goods’ (such as selling at a profit) no longer apply. It follows from this that the objective of this enterprise is no longer that patrons leave the premises satisfied to a greater or lesser extent with the purchases they have made, but rather that they should leave the premises suitably EDUCATED or IMPROVED.

In this particular instance achieving this objective will take the form of the customer leaving WITHOUT the ‘goods’ they entered the premises for, but WITH a clear sense of having been educated and/or improved. In fact, customers are educated and improved precisely to the extent that they leave without the ‘goods’ they envisioned purchasing. Presumably the idea is that they return home and spend the time they would have spent consuming the goods they had obtained, contemplating the benefits of DIVERSITY.

Of course the business not only forgoes the profit that would have come from this day’s trading but also undergoes the additional expense and inconvenience of restocking the shelves after having to de-stock the shelves and store all the produce somewhere while making the point they are making..

And presumably should one or more patrons choose to object to the process and subsequently decide to shop somewhere else, well the loss of revenue is apparently acceptable to this business. Because if customers don’t want to be educated and improved about the benefits of diversity and other things while shopping, then frankly we would rather do without their custom.

After contemplating the picture above for a while, a comparison with the shelves of the Cold War Eastern Bloc and assorted command economies rises to the mind. We were assured repeatedly that it was the abundant provision of consumer goods that proved the superiority of the capitalist model over the command model and resulted in the end of the Cold War.

And yet somehow here we are seeing those self same scantily stocked shelves making an appearance in the supposedly victorious west. And the fact that these shelves are empty is a matter of conscious decision, not any failure in management. What gives?

The fact is that everybody is more or less sick of consumerism, which is another word for capitalist manufactured crap. From cheap nasty food high in sugar and fat, to an endless myriad of plastic novelties manufactured by slave labour in the Far East, it has become impossible to avoid the simple observation that 99.9% of everything created by capitalism is useless crap. And that other 0.1%? That’s the stuff you can’t afford…. so what’s new?

Well, what’s new is that now even the capitalists themselves are starting to get sick of it. They just can’t find a reason to get themselves out of bed and drag themselves into work in the morning anymore. Except..maybe, if they could use capitalism as a vehicle to propagate a message.

Seriously.

Advertising used to be creating ideas to sell you stuff. From now on it’s going to be creating stuff to sell you ideas..

Yet more proof that free market capitalism is well and truly dead.

Oh, and pick me up a pint of diversity on your way back from town will you?

 

 

 

 

Unscrambled Eggs 3 Or All The Kings Men Or A Stitch In Time Or You Can’t Make.. Or Asteroid! Or The Real Crackernomics

 

 

5a1a34b9-945b-4e04-ba25-d61200c0505d

 

In the first part of this series I briefly outlined how the Germanic cult of Capitalism redefined the relationship between the person and the state. Fundamentally this redefinition meant that the sole valid legal and moral relationship an individual could have to society would be to the nation state and not local community or supra national church. This was effectively nothing less than the legal abolition of voluntary community in NW Eurasia.  Capitalism is defined in large part by the fact that no-one, outside of a tiny elite, is allowed to decide who they live with and under what rules. This is Germanic Land Democracy;  the elite forms a Land Republic the rest are the land slaves.

 

In tandem and in consequence to this legal putsch the economic needs of capitalism incrementally developed an unstable and mobile workforce.  Communities that had lost their link to the land, their independence, would be forced to go wherever the work was, even to the extent of destroying inter generational family structures. Family, by ideological necessity, was ordained as evil. ‘Workers’ were elevated by capitalism  to a position where they did not even have access to water to drink unless provided by the emergent nation state.

 

The newly ordained priests of Protestant Capitalism preached that this EXTREME state of affairs could only be negotiated through the ‘Free Market’, which was of necessity magical in the extent of the powers it would have to overcome these problems. But effectively this was accepting and then promoting an unending state of PERMANENT CRISIS, something that Marx intuitively understood. Capitalism IS a state of permanent crisis- this is the single most important insight you can have into it’s political structures. Capitalist democracy is effectively a never ending series of emergency meetings-  of chaotic shouting and gesturing taking place in stock markets and bond sales as well as in the seat of government.

robert-de-niro-frankenstein

Let’s party!

The new workforce was unstable and mobile; given identity by theoretically owning collectively a geographic area- the nation state- but not allowed to actually own any of that very thing that gave their existence meaning! As a consequence Germanic culture spawned the modern political party  as a Frankenstein’s monster of geographic representation and ‘ economic’ necessity stitched together; constantly torn between its supposed constitutional identity and the reality of the system it represents. Nowhere is this clearer that in the case of economic nationalism. To protect the national economy it is necessary to deny the ‘Free Market’ and international trade! The two foundational concepts of capitalism are fundamentally opposed to each other. Managing this running sore at the heart of Germanic life is the basis for modern Germanic politics and economics.

 

Subject to inevitable periodic disruption, the system staggered on, until as a result of the financial crisis,  the free market suffered virtually total ideological collapse in the west in 2007.  Once the belief in the Free Market as a negotiating mechanism was gone there was no agreed ongoing way to negotiate the state of emergency that I describe above. It has now become an immediate and pressing feature of day to day existence in the Germanic capitalist world. This explains the dynamic that powers all politics and economics in this 21st century; a state of permanent visible crisis that has no agreed mechanism for negotiating a solution.

 

I must underline this central point. The market and capitalist democracy are often described as being supposedly somehow self replicating and self regulating (these are some of the magical qualities ascribed to the Market). And this perspective seems to be valid from the point of view of market cultists. But the reason that the Market reappears and reproduces itself  is exactly and only because the crises that give rise to it are continually replicating and reproducing!!

 

Naomi Klein had a fantastic insight into this process in The Shock Doctrine, in which she described some of the largest and most extreme manifestations of this phenomenon. But Klein failed to understand that the crisis has always been permanent and ongoing every second that capitalism exists. In capitalism every meeting is an emergency meeting. This is the spirit of the age. The critique that capitalism offers of socialism is that it is incapable of creating a crisis management system as effective as capitalism. The criticism of capitalism that socialism offers is that capitalism is incapable of creating an effective crisis management system.

 

Marx understood that the Germanic cult of capitalism was a permanent state of emergency. He also understood that should the sense of forward momentum of capitalism be dulled or even stalled that Capitalism would CEASE TO EXIST in people’s minds in that millisecond. That is the fundamental importance of the cult of ‘Progress’ that obsesses both Germanic left and right. Marx formulated the observation that in the absence of progress:

 

 “A development of the productive forces is the absolutely necessary ….because without it want is generalized, and with want the struggle for necessities begins again, and that means that all the old crap must revive.”

 

The management of capitalism is only considered valid to the extent that it can be shown to be progressing in managing and solving the day to day problems thrown up by the inherent crisis of capitalism itself. The moment this is shown not to be the case, capitalism has an election and puts in a new management team. When there are no viable capitalist management teams available, there is a socialist revolution, which is effectively an outside team of management consultants being drafted in. In detail, the process can be described as:

 

Unless the all encompassing illusion of progress can be maintained , the appearance of socialism reverts to the appearance of capitalism and the appearance of capitalism reverts to the appearance of feudalism. The reversion of the appearance of capitalism to the appearance of feudalism is what we can observe all around us.

 

Think about it and you will understand that under these circumstances the possibility, the promise of stability, either real or illusory, simply cannot exist.

 

So the 24/7 round the clock emergency repair system of the market has broken down and the appearance of feudalism has re-emerged in the west. Great!- Let’s Go Feudal! But we can’t go back to the pre-capitalist system because the link between culture, community and place has been permanently and irrevocably mutilated. Just like a scrambled egg whose yolk and white have been amalgamated there is no way back for the Humpty Dumpty of free market capitalism. And this understanding finally brings us to the meaning and significance of cultural constituencies

 

I initially pointed out that the nation state took over responsibility for morality from Church and Community; a duty to society that would from now on be discharged by the offices of the free market which would decide who would get what, where and when. But now that the market has been shown to fail the question for the populations of NW Eurasia is how to take the responsibility for morality back from the nation state..If you doubt this, you have only to look at the self appointed refugee rescue NGO’s operating in the Mediterranean Sea that have effectively privatised the process of immigration from the third world.

Chicxulub-impact-2

Big Bang

We can describe the problem  of reconstituting morality in this way. A massive asteroid  hits the earth at Chicxulub  68 million years ago and throws millions of tons of  debris high into the air. Over a period of subsequent decades that debris falls to earth, but not just in the place it came from but all over the earth’s surface. The entire globe now has a thin layer of dust that came from one just one place in Eastern Mexico. So the same with the human debris of capitalism. And  instead of one meteorite there is a continuous stream of impacts every hour of every day. So people are exploded up from where they originated into the atmosphere and then land down all over the globe in a variety of stratified layers that are analogous to the ‘classes’ that are said to compose modern society.

834d7f1ab1fb91d6b38c31c1ea2f8ddd

The class system..

 

But morality is the link between culture, community and place and it has been permanently and irrevocably mutilated.  So a modern cultural constituency is a cross section of stratified layers trying to act as though it were a cohesive regional community. It is a plate of scrambled eggs trying to remember what it was like to be six eggs in a box…

 

 

 

 

 

Capitalism Doesn’t Add Up Or The Left Hand Doesn’t Know Or When you are Similieing

 

You should familiarise yourself with the law of conservation of matter and the law of conservation of energy.

 

Both of these scientific ‘laws’ express the same basic idea:

 

That the amount of inputs in any given reaction and the amount of outputs from that given reaction, must balance. In other words, every element of a given reaction or process must  be accounted for.

 

Although these ‘laws’ are often characterised as being ‘scientific’ in nature, in fact they come from a much older intellectual tradition; that of Christianity.

 

The entire concept of Christianity is based on two central core principles.

 

The first principle is that any particular incident can only ever occur once and is therefore unique.

 

The second principle is that every incident, process and event that has ever occurred is recorded down to the most infinitesimal detail and that the totality of calculation involving all this detail will be taken to be the final meaning/accounting of everything. Everything can and will be accounted for.

 

These are two foundational concepts that science directly stole from Christianity. (Although scientists would have you believe they ‘created’ them!). Together they make up the philosophy of rational accounting. This philosophy of rational accounting presents a  fundamental problem for the creators and propagandists of the Germanic cult of capitalism.

 

It means that matter or ‘wealth’ cannot be created or destroyed in the sense of being brought into, or taken out of, any given process or reaction. Everything on the left hand of the equation must be accounted for on the right hand of the equation. If it is missing it is because you failed to account for it.

 

This means that ‘wealth creation’ in the sense of creating something cannot rationally exist. If wealth is present on the right hand of an equation it must have been present on the left hand of the equation.  If wealth creation cannot exist, then ‘wealth creators’ cannot exist. So there cannot be any such thing as capitalism or any justification for capitalism.

 

By way of a simple example:

 

An iron smelting plant is in operation and claims to transform iron ore into usable steel and therefore ‘create wealth’. If we take into account the pollution and destruction of environment involved in the smelting process and we adequately account for this and other left hand costs, we find that in fact this melting plant has not created any wealth or any matter of any kind, but in fact simply transformed parts of the existing environment into something else. No wealth has been created.

 

The trick behind this, is to undervalue the preliminary imports – the land, the environment, the labour et cetera and to correspondingly overvalue the output: the ‘wealth’ that has been created. Turning healthy useful corn into ‘Cheetos’ counts as wealth production!!

 

The Whole World Similies With You

Let us look more closely at the value of inputs, for instance the value of iron ore. The value of any particular portion of iron ore can only be rationally valued in comparison with the total amount of all iron ore.

 

If you were to say that 1 pound of iron ore is as valuable as six eggs you are making a poetic comparison, expressing a SIMILIE not an accurate fact. There is no rational relationship between a lump of iron and an egg and there never can be any rational relationship between a lump of iron and an egg because there is no rational point of comparison.

 

(This is an indicator of the value problem which comprises the third part of my general theory of money. I will return  to this later).

 

There is no rational relationship between a lump of iron and an egg but there is a rational relationship between a lump of iron and the totality of all iron available. We can say that any one piece of iron represents a proportion of all total  iron.

 

If there were 100 tons of iron available on earth, then one ton of iron would represent 1% of all the available iron and this would be its true demonstrable, rational, proportionate value.

 

But this presents an immediate and obvious problem: we have no idea of how much iron is actually available and can only provide a an estimate. It follows that we can only present an estimate of the value of any given piece of iron. Since it is only an estimate, is open to a bit of ‘creative accounting’…

 

But although creative accounting can paper over some of the more obvious gaps in the capitalist fraud, the more intelligent Germans realised that this could not form the basis for a long term strategy.

 

They realised that they were playing a game of cat and mouse they were bound to lose in the end. The longer the game went on,  and the more information that became available, the more clearly people would begin to see that the estimates of value that were given to steel and wheat and air were clearly fraudulent.

 

The more clearly people began to get an idea of the TOTAL amount of any given thing, the more clearly they would realise that the present valuation of it was undervalued and just as importantly  the previous estimates were even more fraudulent!

 

This is the true meaning behind the battle between environmentalism and its opponents…

 

And then Germanic capitalists had a stroke of ‘genius’. Which actually means they simply reverted to their fundamental nature. They decided to turn everything back to front, inside out and upside down.

 

Why wait for the inevitable exposure and condemnation when the accounts became due? Why not instead START with the accounts and work backwards??!! And this is exactly and precisely how capitalism and capitalist democracy was brought into being.

 

A capitalist corporation first produces a final profit and then promises to work towards it. Of course, it usually fails and resolving the consequences  of this failure is called capitalist economics.

 

A capitalist political party first produces a set of intended results and then promises to work towards it. Of course it usually fails and resolving the consequences of this failure is called capitalist politics.

 

But the key advantage of this process, insane as it seems, is that there is no point where the capitalist corporation or the capitalist economic party is actually HELD TO ACCOUNT in the literal sense of the word.

 

Because they persuaded the investors and the voters to endorse the accounts they were given before the process even began. They made you just as culpable as they are.

 

Nine Hundred And Fifty Four, Nine Hundred And Fifty Bloody Five.. Or I Wonder If We Are Ever Gonna Change

 

Underpinning Einstein’s theory of relativity is the philosophical argument that it is both possible and desirable to view a particular event from a multiplicity of points of view to gain a comprehensive understanding of the processes embodied in that event.

 

If this is the case, then it might also be argued that it is both possible and desirable to view any particular historical and economic event from a multiplicity of points of view. This would be as revolutionary a development in economics as Einstein’s theory was in physics.

 

Both classic economics and the Marxist variant, promote a singular subjective perspective on structure and meaning of economic systems. Their purpose, openly stated or covertly implied, is to promote the political, moral and cultural system they are representative of.

 

The formal purpose of capitalist economics is to run the system at its most efficient , it’s covert aim to justify capitalism as the dominant system. The overt purpose of Marxism is to produce a critique of capitalism that will lead to its being abandoned as a consequence of its internal contradictions. Its covert aim is to justify historical attempts to create alternatives to capitalism.

 

In order to work, both capitalist economics and Marxism need a protagonist, an archetypal hero from whose singular perspective we can see the world and whose actions we can subjectively identify with. This is the real identity politics.

 

For capitalists the hero of the story is well ,.. The Capitalist  who daringly risks all to bring wealth up from the depths of the darkness -a variation on the Prometheus narrative. For Marxists the hero of the story is The Worker whose toil in the mines is the real producer of wealth.

 

Effectively, both socialism and capitalism are operatic arias in the Wagnerian mode, with two main characters competing for The Ring of Wealth, claim and counter-claim, war, deception and betrayal all part of the story…

 

In a small accommodation with reality there has been a recognition of this subjective limitation and  attempts to modify both classic and Marxist economics. Keynesianism explicitly criticised classic economy from the perspective that it had no macro economic analysis, that it was limited and partial. Marxism also criticised classical economics from the same perspective.

 

In turn, classical economics responded by broadening the fields of economic activity that it covered and even integrated elements of both Marxism and Keynesianism to produce the modern hybrid that passes for mainstream economics today. At the same time neo liberalism explicitly critiqued Marxist planned economy for offering a limited and distorted perspective on the real world. Only the market was capable of gathering and processing enough information to make the system work it claimed.

 

Classic economics and Marxism have historically attempted to compensate for narrowness of vision by reaching for an ever more comprehensive breadth of subject matter. Their final strategic purpose is to claim that the point of view they represent is capable of encompassing all of experience. In other words, both capitalism and socialism claim to be universal theories.

 

This strategy really amounts to nothing more than a form of semantic  trickery that exploits the confusion between taking something into account and adequately accounting for something. An analysis undertaken on this basis degenerates into nothing more than description in the form of an ever expanding list of complaints that classic economics makes about Marxist economics and Marxism makes about classic economics.

 

But neither capitalist economics or Marxism can overcome the fundamental problem that they are subjective in both analysis and purpose- they are in essence particular points  of view.

 

In the back and forth diatribe of mutual complaint each philosophy implicitly recognises the value and need for the other as each seeks new territory to colonise at the expense of the other. Both competing analyses move from old to new battlefields as they become available for domination,  seeking both to justify their own existence and to nullify the existence of their opponents.

 

This is the operation of a dialectic; the domination of thought through the application of a controlled conflict- a drama- a demi-urge.

 

The last major episode in this opera was the credit crunch. Marxist economics went on the offensive, seeking to gain advantage in this period of capitalism’s distress. In response neo- Classic economy sought to spin events in such a way as to justify itself. Perhaps unsurprisingly classic and Marxist have managed to fight each other to what is effectively a stalemate. Both boxers now winded and bloody, have retired to corners for a chest rub and a pep talk from their respective managers…

 

The central question now is: Do we wish to invite both protagonists back for a further round of conflict? Would there be any purpose, political or intellectual, in continuing a boxing bout that seems to have stalled in mutual exhaustion? If subjective political economy has nowhere left to go, what can emerge to take its place?

 

The economic model I propose does not rely on a representation of any particular group as the main protagonist in history and economy. I don’t seek to make The Capitalist the hero of history or The Worker either. On the contrary I am now arguing that there is no such thing as The Capitalist as a concrete economic agent. There is no such thing as The Worker either. They are both literary inventions of Germanic culture. This is where culture meets economics.

 

Nobody ever in the history of the world ever created capitalist wealth through undertaking risk. Nobody ever in the history of the world ever created capitalist wealth through undertaking labour. Both these ideas are literary fictions.

 

Instead I am arguing that the only way that capitalist wealth is created is that it is extracted and accrued through the operation of money forms, that is denuded versions of money. These money forms create and operate their own distribution networks within society and economy that allow the extraction of wealth.

 

Individual or group economic power and significance comes from the extent to which one has access to one or more money forms and is able to utilise them to extract wealth.

 

This analysis seeks to represent Germanic capitalism from a multiplicity of perspectives to show both action and reaction in any given transaction. We no longer need to be bound to this or that heroic perspective or this or that litany of complaint and counter-complaint.

 

But there is a price to be paid for this insight. Because in such a model the struggle for economic power becomes a zero sum game. Power is fixed in quantity and quality. If power accrues to one then it necessarily is taken from to another. Wealth cannot be created as in a Germanic literary fantasy.

 

Just as Einstein’s theory was able to capture the multiplicity of relative motion through the adoption of a constant the speed of light so this model of money requires a constant  – that of wealth. Wealth in this model is not created, that is the absolute barrier that cannot be broken through.

 

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 in the faction of the one in whose image I am created