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…

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.

 

 

 

 

 

 

 

 

 

 

 

 

Profile: The Sax Pistols

 

trump

 

The forthcoming American Presidential election and Brexit are both evidence of profound changes in the politics of the western world. The precise nature of these changes is increasingly the subject of commentary in the press and media.

The Huffington Post has suggested that Donald Trump supporters are best described as ‘white nationalists’. Others on the left have suggested that they are more accurately described as the economic victims of globalisation; the ‘left behind’.

On the other hand the social political grouping that has coalesced around the candidacy of Hillary Clinton and the Remain camp have been described as a liberal dictatorship and ‘Globalists’ by their opponents

It is obvious that highly partisan name calling offers no possibility of any real insight. It is necessary to describe the development of these rival blocs within the context of the past decades and the forces that have shaped them.

Note here that Michael Moore has exhibited a rare insight in expressly linking the white Anglo-Saxon residents of ‘fly over’ middle America with the Brexiteers of Middle England. Unfortunately, virtually no one else has had the breath of vision to try to understand the link between these two social phenomena.

I developed the idea of cultural constituencies as the product of the economic and social processes that have shaped developed economies since the 1970s. Cultural constituencies differ from, and are the successor to, the economic constituencies that are the basic building blocks of capitalist society for over one and a half centuries.

There are no longer any real ‘classes’ in the Anglo Saxon world. Instead I argue that there are now two dominant cultural constituencies which I call:

The Sax Pistols and

The Strangeloves

I will begin with an in-depth profile of The Sax Pistols

The Sax Pistols began to coalesce as a cultural constituency in the mid to late 1970s as a consequence of profound economic political and social shock that ran through the developed economies and especially the Anglo Saxon world from around 1968 onwards.

The Sax Pistols gained traction in a section of the discontented lower middle class who saw the establishment as having betrayed their interests in the ongoing economic crisis. This betrayal delegitimised the establishment in the eyes of The Sax Pistols.

The Sax Pistols saw themselves as being under attack not just from the corporate elites above but also from the poor beneath who were receiving social benefits in the post war settlement that The Sax Pistols were not entitled to but were forced to pay for through taxation.

What is truly significant here is that The Sax Pistols chose to blame the section of the middle class that was immediately above them for this state of affairs. The importance of this is that politics was transformed as a conflict between economic classes into a political and cultural conflict within what had previously been the middle class. 150 years of traditional classic class based economic conflict was over, to be replaced by interclass cultural conflict. It had to be a cultural struggle because there was no definable economic reason for an economic one since it was between members of what was nominally the same class.

The Anglo-Saxon middle class split into two opposing factions. The first was a state oriented welfare bureaucracy that existed to distribute welfare under the terms of the postwar settlement. This was the upper section of the middle class that enjoyed the support of the liberal establishment and a relatively secure existence as part of the state machine. The Strangeloves.

The second was the disenfranchised lower middle class that had no access to the welfare as producers and administrators and which as a consequence was forced to develop a radical reliance on the free market to sustain itself. These were the Sax Pistols.

I will deal with the state bureaucracy grouping (The Strangeloves), next time but for now I will focus on the radical capitalist section which forms the nucleus of The Sax Pistols cultural constituencies.

In intellectual terms that economic recession in the 70s gave birth to Monetarism and reconstructed radical cultural capitalism. These are broadly the component parts of Neo Conservatism and Neo Liberalism.

The fundamental political purpose of Monetarism centres on the destruction of the state as the controlling influence on the economy. Radical cultural capitalism centres on small scale capitalist production as a cultural enterprise as opposed to an economic one.

The majority of the small businesses that were created in the aftermath of the 1970s economic collapse and up to the present day have no economic rationale. They are not large enough or efficient enough to produce a surplus of wealth on a level that is commensurate with the amount of time and effort that goes into creating them.

The only reason they exist is as a cultural totem of capitalist production. They are primarily there to give an identity and a sense of purpose to the people who operate them.

This gives rise to the conception of the radical small-scale capitalist as an icon. Two classic examples of this form are Malcolm McLaren and Vivian Westwood’s ‘Sex’ shop that gave rise to the Sex Pistols and Richard Branson’s ‘Virgin’ corporate empire.

Notes the references to sex and sexuality in both Branson’s ‘Virgin’ corporation and McLaren’s ‘Sex’ shop. This is not a concept of sex that is in any way healthy or wholesome. The imagery is of a form of violent, perverted sex better understood as capitalist screwing. This is not co-incidental. As the Sax Pistols turned on the Establishment they also turned on whatever remaining vestiges of traditional Anglican morality they had and embraced full on Puritan anti human Germanic Protestantism.

Both ‘Sex’ and ‘Virgin’ began as small-scale radical insurgent hip capitalist enterprises. Of course since the 1970s they have been assimilated into the mainstream of capitalist culture economy to the extent that they are now corporate entities every bit as much as Tesco or McDonalds. The difference is they still retain some vestige of radical chic.(Hard to believe now, but in the aftermath of the Berlin Wall McDonalds had some of that radical capitalist vibe!).

Once Saxon society created the idea of the radical outsider cultural capitalist it is not hard to see how this lead directly to Donald Trump and the present presidential election.

The final significant twist in the development of the Sax Pistols came when it’s cultural ideology was adopted by a significant section of what had previously been known as the Anglo Saxon working class. This really was the final nail in the coffin of class politics as we had known it.

The section of the middle class that had been forced downwards by 1970’s recession found themselves in a position to make common cause with a section of the working class who found themselves in a parallel position for some of the same reasons.

‘Workers’ who had been made redundant from secure manufacturing and corporate jobs were also forced to adopt to a more freewheeling ‘wild west’ form of capitalism. The radical privatisation programs brought about through Monetarism offered this section of the ‘working class’ the chance to benefit it ways not previously open to them, so in some ways they experienced upheaval as a positive thing.

A section of the disenfranchised middle class together with a cohort of the working class form the backbone of the Sax Pistols cultural constituency in the Anglo Saxon world. It is these people who will be at the forefront of voting for Trump on Tuesday.

Never Mind The Ballots….

 strange 

 john

Everybody more or less knows that the old left/right paradigm is gone now, never to return. But there is no mainstream consensus as to what has replaced it.

To address this issue I have been describing the emergence of Cultural Constituencies; societal blocs that are consequential to the breakdown of  ideology that underpins the Germanic Cult of Capitalism.

 

Within Saxon populations (the ‘Five Eyes’) I have now identified and named  two main Cultural Constituencies that form opposing poles in the New Duopoly. They are the ‘Sax Pistols’ and the ‘Strangeloves’.

 

I will write more about both of these groupings and their motivations in detail at a later date, but for now I will compare some of the differences I have observed in the context of the American Presidential elections and the Brexit debate:

 

 

The Sax Pistols The Strangeloves
Came out of the 1976 crisis of Capitalism Came out of the 1945 crisis of capitalism
Economics: Friedman/ Volker Economics: Keynes
Love pistols and other weapons (‘Sekint Amindmint’) Hate pistols and guns but like bombing foreigners who disagree with gay rights etc
Protestant cult Protestant cult
Catholic hatred because Pope is a One World Government lizard Archon etc Catholic hatred because of no gay marriage between priests etc
Isolationist ‘Gimperialist’ (see gay rights above)
Pro Putin becase he is white and they don’t really understand Orthodoxy Virulent hatred of Putin (see above)
Anti immigration Pro immigration
No such thing as racism although ‘everybody is racist’ when it comes to talking about blacks so as not to concede a point…. Everybody is racist whether they know it or not
Welfare is for whites (Nixon/ Reagan etc) Welfare is for hard working immigrants and not white trash who spend it on cigarettes and Oxycontin etc
We won the war single handedly I would just like to take this opportunity to apologise once again,,, etc
Constitution European Court of Human Rights/UN etc Anyway the constitution was written by white racists
America  Europe
Free markets when it suits us Treaties
Forward to the past Back to the future
Johnson is the wannabee Farrage is the reality Blair
Trump Clinton

 

BLINK: Apr 12 2016

 

eye

Nose on your face..

 

In this piece Mr Edelman says:

 

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

 

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

 

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

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

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

 

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

 

Things Fall Apart..

 

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

 

@ian bremner

 

The best explanation so far

 

 

Head-Brick Wall

 

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

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

 

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

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

 

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

 

Cake or Ha’penny
 

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

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

 

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

 

Uppity
 

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

 

Imagine a world without whiteness

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

Paul Joseph Watson
Prison Planet.com
April 6, 2016

Professor Calls For “Whiteness” to be “Abolished”

 

Living History

 

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

 

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

 

By Peter Holley April 6 Follow @peterjholley

 

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

 

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

 

 

 

Spelling It Out or It’s Not You, It’s Me

You can often hear proponents of the ‘Austrian’ school and others on the ‘right’ calling for the market to set base interest rates. This bizarre call is a non sequitur – meaningless.

 

The market is made up of both buyers and sellers and their interests are necessarily conflicting. The market does not ‘speak’ with one voice; by definition, it cannot. How can it set anything?

 

It is like asking a field of runners halfway through a race to come to an agreement on where the finish line should be…

 

Of course the market can’t collectively determine anything. Firstly, when the market ‘speaks’ it is the preponderance of individual views of within the market. When the market ‘speaks’ it is the result of something; it is a reaction; the exact opposite of being the cause of something.

 

Secondly, for communication to convey meaning it has to be the result of some form of reason. For the market to actually express a meaningful point of view it would be necessary for it to consciously arrive at a point of view, enunciate that point of view and stick to it.

 

But the market changes, literally from second to second because the balance of forces within the market changes from second to second. Even if you were to somehow accept the idea of ‘speech’ from the market, you have to accept that the meaning of that speech will change in a couple of seconds time. Even if you try to argue the market has a mind, you have to accept that the market can never make that mind up.

 

Because although the buyers and sellers who make up a market are supposed to be rational agents expressing their own rational self interest, the cumulative consequence of their actions is not. These are the ‘animal spirits’ of ‘fear’ and ‘greed’ that everyone agrees the market expresses.

 

Market religion claims that by means of alchemy the market changes base instincts into what is best for everybody inside and outside the market. Somehow something even better than considered reason appears spontaneously!

 

The market cannot speak because it cannot have an established continual rational point of view and it cannot create a rational point of view because it is made up of conflicting impulses. If there was no such conflict it wouldn’t be a market.

 

It does not matter whether it is a pre-centralised system of private banks or a modern central bank system, a rational market ‘mechanism’ to set base rates is impossible.

 

It follows from this that if base interest rates are to be set for any given period, they have to be presented to the market in advance by somebody outside the market, working to some kind of rationale. And every nation and collection of nations operates on this basis.

 

So what is behind the call for base interest rates to be set by the market? The main reason given is that interest rates are seen to be all going one way. Since the Credit Crunch and the implementation of ’emergency measures’ central banks have followed a Zero Interest Rate Policy.

 

Of course, it is becoming harder and harder to see ZIRP as an ‘emergency’ measure after seven years or so. Direct government dictat has the consequence of shredding the rhetoric of supposed central bank independence.

 

And ZIRP disguises a secular decline in interest rates that has been taking place in the Anglo Saxon economies since the 1980’s. Economists on left and right have no way to explain this outside of tautology: Interest rates are low, well…. because interest rates are low.

 

I argue that base interest rates are proclamations made by an authority, be that authority elected government officials or ‘independent’ central banks.

 

The interest rate setting authority makes a proclamation; sometimes characterised as an offer depending on how you wish to portray it. Depending on how many individuals take up that offer, the issuing authority amends the offer next time, this is the market reasoning justification for the system.

 

If an increasingly large number of people take up the credit offer at a given interest rate the interest rate is increased to stem the ongoing flow of credit applications. If a decreasingly small number of people take up the credit offer at a given interest rate, the interest rate is decreased to stimulate the flow of credit applications.

 

You might ask: Why don’t authorities amend the interest rate from hour to hour or even minute to minute – why do they only change the interest rate quarterly?

 

The answer is they need time to collect, collate and process the information. Because their decision is supposed to be based on reason to some extent. You might not agree with their reasoning, but you wlll see that if a central bank announced that base interest rates will be 1.5% for the next hour based on a ‘hunch’, the economic system it was set up to administer wouldn’t last for very long!

 

In other words the system we used to have and the system as it is now are not the result of arbitrary choices, they operate at the exact limit of development allowed by politics and technology at any given time.

 

Since the system is not really open to arbitrary change what does that say about the decisions that the system makes? It means that the decisions it is making at this time are the only possible decisions it can make given the limitation of politics and technology. If we understand the constraints of politics and technology we can understand what the decisions have to be.

 

With this in mind, we should address the fact that the main decision of central banks seems to be not to make any decision. Interest rates are effectively at zero and staying there. We have the quarterly ritual of: ‘Will they, won’t they move off ZIRP?’ and the answer so far is always no.

 

This is problematic for me as I have argued that moving towards a new baseline average interest rate of 2.5-3.5% is the next step in the implementation of Democratised Money. I have also argued that international exchange rate blocs are a fundamental requirement for the international framework for Democratised Money. And neither of these things has happened yet.

 

It is possible that the delay in normalising interest rates and creating exchange rate blocs is linked to the Pacific and European TTIP agreements. Trade blocs like Pacific and European TTIP are an inevitable part of the Democratised Money world. It could be that nothing else will be done until they are both securely in place. Now that the Pacific TTIP is moving forward again, the increase in interest rates and exchange rate blocs will be implemented.

 

But I think there is another reason for continued ZIRP and it comes from the internal ‘logic’ specific to this exact time and place.

 

All central bank rate setters, be that the Federal reserve, The ECB or the Bank of England are ‘democratic’ to the extent that they vote to decide about where to set base rates but that is as far as the democracy goes.

 

Nobody elects the members of any central bank committee, they are there by appointment. So they cannot claim any democratic mandate per se. The justification for being there is actually an inversion of a democratic argument.

 

Independent central bank advocates argue that political control of base rates by an elected official is detrimental to market confidence in that rate. The rate setter needs to be able to operate independently of democratic ‘pressure’ e.g. pressure from electorates. Democratic voting is the method by which rates are arrived at, but technocratic reasoning is the justification.

 

But this line of argument presents certain problems.

 

The post 1970’s call for independent banking was justified by the Monetarist shibboleth of inflation. This was supposed to be the one and only overriding consideration. Monetarists claimed that if inflation was under control and the money supply regulated all would be well. But as the Credit crunch and resulting QE opened the door to direct political interference reasons had to be found to provide cover for and justify direct interference. And so the mandate of central banks was modified to include macro-economic ‘stability’.

 

When the situation was ‘stabilised’ to some extent it was suddenly found that central banks also needed to target unemployment and so interference would have to continue.

 

When employment seemed to recover somewhat, central banks discovered that broad economic growth must also be added to their macro economic mandate.

 

When growth seemed to recover somewhat central banks discovered the ‘productivity gap’. When it became apparent nobody really believed in the productivity gap or understood what it was, central banks discovered the threat that interest rate rises posed for developing economies and that is where we stand today.

 

The specific logical conundrum is this: If central banks are indeed identifying problems and fixing them as they claim to be, then they either have to find new problems to fix or to stop interfering in the market at some point. On the other hand, if central banks are identifying problems and not managing to fix them, then something is seriously wrong with the central bank system itself.

 

The upshot of this is that insurgents continually claim that central banks have failed to solve any of the serious macro economic problems. The establishment claim that they have solved a number of problems and are effectively managing the new ones that always seem to be appearing.

 

But what unites establishment and insurgents is the claim that central bank interference in the economy is somehow voluntary and limited. The establishment claims that the central banks will stop interfering at some point in the future because they will have fixed all the problems. The insurgents claim that the central banks interfere because they want to protect their fraudulent ponzi scheme etc.

 

But I argue that Monetarists have no choice but to interfere to in order to protect democratised money. Once the creation of privately issued money began, everything else that followed was inevitable.

 

The purpose of QE and ZIRP is to defend and promote the growth of privately issued democratised money. The Fed and the Bank of England cannot and will not stop with emergency measures until they believe that derivatives are completely integrated into the global financial system in a way that means they can never be removed.

 

It is this imperative to protect democratised money that has been the real reason behind the ongoing interference in money markets. It is this imperative that is the logic behind QE and ZIRP. And it was the belief that the project of irreversibly integrating democratised money has largely been achieved that led to the recent hints of a rise in base interest rates in America and Britain.

 

But the Fed cannot bring itself to pull the trigger. They are trapped in their own logic.

 

By citing an increasing number of different reasons for intervening, the central banks built for themselves a new group of constituencies. Effectively Inflation, GDP Growth, Unemployment, Productivity gap and Developing economies all represent constituencies that the central bank committees have come to claim to represent. And this is the argument that has largely been successful in justifying the central bank approach to the markets. It is a polygamous marriage of convenience. But to raise interest rates will undermine the interests of this collection of constituencies and bring to the fore the question of what the purpose of the central banks actually is.

 

This is the reason central banks are reluctant to begin raising interest rates. They cannot say they have fixed the central problem and ‘new normalise’ base rates without saying what the problem they have fixed, is!

 

The collection of constituencies that central banks have gathered together as a justification and cover for the democratised money project has proved to be very useful. But at some stage there is going to have to be a parting of the ways and at that moment a lot of people are going to be asking the central banks: ‘Did you ever really love me?’

In Reply to RossC or The Iago Strategem.

220px-Edwin_Booth_as_Iago

I received the following from RossC :

 

‘Hello I have followed your blog and read most of your Book/PDF not to the end yet so it may be in there but how do we take down the monetarists? how do we shift the battle field so much that it is possible to defeat them?

 

There is I assume no going back to socialism as few would want to so how do you jump past what is and what would you present to the people to make them want to follow.

 

I am a New Zealander and we have had 30 years of monetarist policies with constant privatization, destruction of the left and the other same old things house boom, wage stagnation and attacks on welfare yet still we vote national (tories to you) and even with a labour government we get only small changes.

 

We do have an MMP electoral system with 70% voting this leaves 30% outside the system a large portion young or poor non-voters.

 

What shape should any future look like to oppose the monetarist system?

 

Cheers’

 

RossC, Thank you for your comments:

 

‘how do we take down the monetarists? how do we shift the battle field so much that it is possible to defeat them?’

 

There are two aspects to your question.

 

  1. The short term need to stop this specific phase of the Monetarist program and
  2. To address the underlying causes that brought Monetarism about.

 

Monetarism and the Democratisation of Money is the project to privatise the issuance of money, that is to privately control what money is issued, what kind of money it is, and when it is issued.

 

Why is this a problem?

 

Because this project seeks to destroy the Social Aspect Of Money– the fact that money ‘in common’ is in itself is a social good.

 

If your neighbour has a nice garden and a clean tidy house it benefits you and it benefits everyone in the neighbourhood, even though individual people in the neighbourhood don’t actually own any of the house. You benefit from the social aspects of the house. It is part of THE COMMONS. Of course if the house is scruffy and run down then you and everybody else suffers correspondingly.

 

Though people find it hard to understand, money basically has the same social aspect. The kind of money in circulation, where and when it is put into circulation affects the well being of everybody. The social benefits of money as a common good benefit everyone, even people who don’t actually own any money!

 

This is the antidote to Monetarism.

 

Just as Monetarists believe that there is no such thing as society in general terms they also believe that there is no such thing as society in monetary terms.

 

From what I have said that we can understand the Monetarist project as the destruction of the social benefits of money. Our response should be to restore and expand the social benefits of money. That means we have to understand and explain the social benefits of Government Issued Money in common.

 

Here are some of the social benefits of Government Issued Money that Monetarists are destroying and the way that they can be restored:

 

 

Social Benefits of Government Issued

Money In Common

Why Is This A Benefit? How Monetarism (Democratised Money) Is Removing This Benefit How Can We Restore This Benefit?
The right to privacy Government issued Paper money can be exchanged and stored in private. You can conduct your financial affairs in line with your own best interests by means of free association giving you comparative rights with those wealthy enough to buy privacy. The Shadow Economy is privacy for bankers FROM public scrutiny.   Transferring more and more economic activity to digital banking and the Permanent Credit Economy means all public activity can be tracked and permission given or withheld by a digital economy elite. (Ditto Bitcoin). Remove all legal limits on amount and purpose of cash transactions. Strictly control information that can be gathered and passed on bank activity. Advise people to hold as much cash as possible. Rebuild the cash economy. Make the Shadow Economy (Democratised Money) illegal.
The right to enter in and out of the economy at will. By having access to money notes that can be entirely held outside the economy, each individual can maximise personal financial benefit by choosing where and when to interact with the wider economy. By destroying bank interest and forcing growing dependence on the Permanent Credit Economy this is the Participation Economy. By allowing banks to operate with below minimum reserves. By maximising the amount of money held by individuals in cash. By forcing all parts of the economy to accept cash as payment and payments to be made in cash if required. By restoring interest rates to long term averages. By making derivatives (D Money) illegal.
The right to collective negotiation with the state on taxes and benefits. Collective groups will have more leverage than individuals when dealing with the state. By preventing any democratic political access to the control of the issuance of money Make monetary policy the subject of democratic process. Make illegal any money issuance outside of political process.
The right to collective negotiation with private entities Collective groups will have more leverage than individuals when dealing with private entities. By destroying the cash wage economy, the traditional employment model and trades unions. Restore the cash wage economy the traditional employment model and trades unions.
The right to commonly decide interest rates Interest rates can be used to promote the kind of economy and job availability that maximises benefit for the most people. By preventing any democratic political access to the control of the printing of money Make monetary policy the subject of democratic process. Make illegal any money issuance outside of political process.

 

 

Money in common is a social good. Money that is privatised, Democratised Money, is a destructive force. Its purpose is to destroy the post war settlement that benefited the ordinary people of the developed world to such a great extent.

 

The points in the above table outline a short to medium term strategy for dealing with Monetarism. What about a longer terms strategy, dealing with why Monetarism has come about?

 

A couple of the points RossC makes illustrate this very clearly.

 

‘There is I assume no going back to socialism as few would want to so’

 

This is a strange thing to say. Socialism has never been more popular among the rich and bankers. The entire financial system is run as an international socialist syndicate. It is widely accepted in right wing as well as left wing circles that what we have now is ‘Socialism for the rich and Capitalism for the poor’. How can we explain this bizarre set of circumstances? We have to turn to the study of WHITEISM.

 

 

‘ how do you jump past what is and what would you present to the people to make them want to follow’.

 

We must explain the Social Aspect of Money, this is the missing part of the opposition response to Monetarism and Austerity. Monetarists have succeeded in promoting the idea that it is in the best interests for a small elite to control the money supply. This is the essence of their attack and this is the place we must meet them head on.

‘ yet still we vote national (tories to you) and even with a labour government we get only small changes.’

 

There is a direct relationship between the Democratisation of Money and Whiteism. There is no long term answer without understanding and addressing Whiteism.

 

The key to take away from all this is that:

 

There are social goods that we all hold in common. Monetarism seeks to take advantage of the fact that most people do not understand the importance and the benefits of these social goods. They hope that this ignorance will allow Monetarists to hijack these social goods permanently and to use the massive power this gives them to institute a new permanent global power system.

 

We have not lost control of these social goods yet, although the entire purpose of Monetarist propaganda is to try to convince us we have. Call this the IAGO STRATEGEM.

 

Our battle is to inform people of the existence and benefit of these social goods in particular COMMONLY HELD MONEY and to convince them to fight to defend them.

 

This is the battleground where the fate of Monetarism will be decided…..

 

Write again soon….

 

@P