The tensions between socialism and capitalism never, ever go away. The ideal system is one that is balances the two. I am a devotee of the concept of ‘Libra’. This is where one recognizes reality and not view everything through ideological glasses. We only see a mirror of reality which means, things are often backwards but then, we see things literally through prisms in our eyes which sees the world upside down and then, our brains have to reverse things to look ‘normal’. Ie: real. The debate about socialism vs capitalism must be conducted with an eye to history, facts and real effects on systems. NO SYSTEM SURVIVES FOREVER. Please remember this salient point!Luckily for me, the WP wants to discuss this matter today, in its usual inept way.
Just a few weeks ago, the vogue was to declare that “we are all socialists now,” and to speak of how capitalist theory and practice were being toppled by an economic catastrophe that proved how profoundly flawed the old system was.
I haven’t heard anyone say, ‘We are all socialists now,’ except in IRONY. Dionne Jr. can’t see irony due to him being an employee of the warmongering WP. There is now an economic catastrophe but it was not caused by ‘capitalism’ at all. It was caused by ‘funny money’ creation using global central banks which handed out incredible amounts of easy credit. In other words, we are in a CREDIT crisis, not a CAPITALIST crisis.
After all, what never existed, in the US, was true capital. In this mess we see only a sea of red ink, nothing but wall to wall debts. The biggest money gamesters were playing with IOUs, not capital. The entire US system ran on IOUs and far from fixing this, is doing this more and more.
- Capital (economics), any form of wealth capable of being employed in the production of more wealth
- Capital requirement or “bank capital”, the requirement that banks keep certain monetary reserves
- Financial capital, money used by entrepreneurs and businesses to make products or provide services
- Human capital, workers’ skills and abilities as regards their contribution to an economy
- Natural capital, the resources of an ecosystem that yields a flow of goods and services into the future
- Political capital, means by which a politician or political party may gain support or popularity
- Working capital, short term capital needed by the company to finance its operations
Debt is not wealth. I think that the book, ‘1984’, missed this thing! He had ‘War is Peace’ and ‘Slavery is Freedom’ but left out ‘Debt is Wealth’. The entire US psychological system is predicated on the belief that debt, not capital, is wealth. So, instead of employing capital to produce more wealth, we employed DEBT to produce the ILLUSION of more wealth.
One of the most irritating things on earth is to hear people solemnly say, ‘The US is the wealthiest nation on earth,’ when the opposite is true. We are one of the poorest nations on earth because we are very deep in debt, going deeper into debt…TO FOREIGN POWERS.
There is something to this, especially if what is seen to be falling is not the market system itself but an approach to capitalism that saw government playing an ever-smaller role in economic and social life, and finance reigning over production and invention.
The government played a bigger and bigger role but NOT in regulation but rather, in churning out immense seas of red ink via running the government deeper and deeper in the red. The government allowed a flood of foreign lending flow into the country via the Japanese carry trade. And allowed a tsunami of value-added manufactured goods to also flow into the country so we ran all systems in the red. No country is ‘rich’ if they are running in the red. No bank is a bank if it is running in the red, too.
The bywords now are stimulus (by government), re-regulation of finance (by government) and stronger safety nets (also provided by government). If there is one part of the system that is under sustained attack, it is the mechanisms of finance.
Finance is under attack because it is the hole in the bottom of our Titanic that is letting in all the red ink. The US could easily sustain a sound social system for the working class if our jobs remained in America, not moved overseas, just for one immense example. Social Security will collapse because wages are collapsing and jobs are leaving.
Still, that doesn’t make us socialist. There is, as yet, no broad demand for a government takeover of big companies or a widespread desire to replace capitalism with a cooperative system.
This moron obviously can’t read the news. More about how wrong he is, in one minute. First, let’s look at Obama: he works for the very rich who put him in the White House. Of course, his opponents were much, much richer than he. But not popular since the people were looking for ‘change. So the financiers ended up backing Obama. And he isn’t disappointing them at all. He is in their back pocket.
Like Hillary Clinton…but not McCain. McCain IS the pocket! He is one of them, outright! Obama has a total tin ear when it comes to things that matter to the working classes.
In the midst of its worst recession in decades, President Barack Obama says it would be better to create new jobs that can’t be outsourced instead of bringing back such low paying jobs from other countries.
This is in the India Times because they worry about us doing something to save ourselves. Luckily for them, few of our leaders give two sticks about doing things for Americans. Lucky for them and treason for us.
At the same time US workers are seeing record unemployment, for the PRESIDENT to say, we don’t want the millions of jobs outsources and offshored this last 35 years, is treason. The US is going down the economic tubes precisely because of these ‘low paying jobs’.
‘Not all of these jobs are going to come back,’ he told a questioner during an ‘Online Townhall’ from the White House who asked when would jobs outsourced to other countries come back and be made available to the unemployed workers in the US.
NONE of these jobs are coming back, thanks to the US trade negotiators and leaders joining up with our dire trade rivals in Europe and Asia, saying, ‘We will not protect America.’ There are NO PLANS TO STOP THIS PROCESS. Free trade continues ruthlessly onwards. To hell with the US system.
As fewer and fewer Americans can find jobs, the less support the ruling elites have for social systems. They are already trying, desperately, to convince us that our social services are evil and are destroying America and if we get rid of them, we will have low taxes and lots of jobs. This hogwash is pure baloney. NONE of our trade rivals subscribe to this.
‘And it probably wouldn’t be good for our economy for a bunch of these jobs to come back because, frankly, there’s no way that people could be getting paid a living wage on some of these jobs — HERE IS WHERE OBAMA BARES HIS FANGS AT THE US PUBLIC: at least in order to be competitive in an international setting.’
Since when would it be bad for our economy for our jobs we lost, coming back home? Many of these jobs are in the auto industry. Not to mention, the entire electronics industries. How about computer programing jobs? These are all NOT ‘cheap labor’ jobs but quite the opposite. To gain a ‘living wage’ usually means PROTECTIONISM. This is why Japan is an economic fortress. It has virtually no ‘free trade’ ideology at all. But the Japanese encourage us to have ‘free trade’ because they overwhelmed us in this business of ‘free trade.’
So have the Chinese. Who run a socialist/communist system that exploits the weaknesses of capitalist liberalism. They are allowed to do this because they can. We can also stop them from exploiting our weaknesses by imitating their strengths or putting up arbitrary barriers like the Japanese. But we won’t do this because our international financial community wants the US to be exploited….to death! This is NOT capitalism anymore than making us pay special taxes for social security, taxes that are NOT leveled against the wealthy, is true ‘socialism’.
The movie is right about many things, yet doesn’t go after our madcap military empire. Nor does it mention ‘free trade’ even while noting we are running in the red when it comes to trade. They don’t mention tariffs and barriers and how this protected the US during the Great Depression. The Great Depression happened because the US lent money for WWI which was unpayable so long as Britain and France insisted on expanding their empires, while deep in debt. Sound familiar?
When Germany ceased paying Britain and France reparations for WWI, the world’s entire banking system collapsed. Right when the US was undergoing a typical recession caused by too much lending. This international banking collapse is nearly identical to the present collapse which is why we see some of the identical solutions popping up, much too late, of course.
The typical reaction of the ruling elites is to convince us, we do NOT need social services while jobs vanish and people are left bereft of work and health insurance. This foolish game will eventually fail as desperate people see, it is life and death to seize control of our government and throw out all the politicians supporting foreign finance and business interests. Let’s breeze through today’s news to see what this means:
Genpact is eyeing around 30 outsourcing deals in India across sectors like manufacturing, telecom, utilities and financial services, according to the company’s president and CEO Pramod Bhasin. The country’s largest BPO firm by sales has also zeroed in on China, Japan and West Asia as growth markets.
See what I mean? The outsourcing process has BARELY BEGUN. And all the gnomes who told us, great-paying banking and financial jobs would make up for the loss of manufacturing jobs? Look at the list here! Manufacturing AND financial services are being targeted!
The country’s BPO market, valued at $1.3 billion, is expected to grow by 40 per cent in 2009. “The domestic market is very receptive towards outsourcing. Deal sizes, however, remain small, ranging between $1 million and $5 million,” Bhasin said.
It is going to double in what? Two years?
IT-BPO companies ignored the home turf in the past due to lower margins as there is no significant cost advantage in catering to a domestic firm. In contrast, cost differentials can go up to 50 per cent while servicing foreign firms.
Cost differentials is what matters! Helping foreign firms outsource to India and Asia has a 50% profit! This is why it is an unstoppable force if we simply try to use financial inducements.
Wall Street firm Goldman Sachs Group Inc., which recently accepted government funds to bolster its operations, spent $58 million to buy two top executives out of some of the firm’s in-house funds, a regulatory filing Friday showed.
$58 million of our bail out money that is charged against future taxes was used to hand over illicit profits to the top men in Goldman Sachs. Every penny of this should be returned to our Treasury, with interest. And the guys doing this should be jailed for fraud. Meanwhile, total compensation for the company’s chief executive, chief financial officer and two co-presidents fell 97% to $9.3 million in fiscal 2008 from $272.8 million a year earlier. The steep decline reflected that the executives got no bonus or stock options in the latest fiscal year.
There is no way this single guy should be able to reward himself to the tune of nearly $300 million a year! This is why taxing him to pay for US social services is important! He will twist the entire economic system so that all it does is pour money into his lap. This is bad for the US, bad for society, and bad for the entire planet earth.
Anyone watching this melt down can clearly see, letting these creeps pour infinite wealth into their own pockets leads to a total collapse of all systems! This is why we can’t allow this. One of many tools that prevents this are SOCIAL TAXES ON THE RICH. They have little temptation to rot the system, trying to redirect all potential capital, into their own offshore pockets.
By the way, note how the bankers are getting away with not only having us bail them out, socialism for bankers, but also, get to continue giving themselves MULTI MILLION bonuses? A mere $9 million bonus was, just 20 years ago, an immense bonus. Back, when taxes on the rich were much higher! Now, on to GM and how the government is going to force down worker’s wages to Asian levels:
The Obama administration has forced the longtime head ofGeneral Motors to resign and said yesterday that it would withhold additional federal aid to the auto industry unless the ailing companies undertake changes they so far have been unwilling or unable to make.
And what are these changes? Even as the bankers scream, we can’t renegotiate their own immense bonuses, the US government is basically putting a gun to the heads of workers. GM and others were allowed to buy out old union members and thus, kill the union off.
Retirees are seeing all their benefits cut. They fell into a trap of their own making. They supported mostly right wing politicians who said, they could get union goodies for themselves while cutting social services to other workers. So they formed an alliance that cut their own taxes while letting other workers slowly lose social services.
Now, they are being shoved out of their own little UAW boat and into the sinking US labor ship which is drowning as jobs are moved relentlessly overseas or the wages here are ruthlessly forced downwards, here at home.
The administration effectively rejected as untenable the business plans that GM and Chrysler had submitted to restructure their companies, saying that neither had fulfilled the terms of the federal loans the companies received in December.
The president is expected to announce today that both companies may still win additional federal aid but under stricter terms.
Chrysler, which the administration believes cannot survive as a stand-alone company, must reach an agreement to partner with the Italian automaker, Fiat, in the next 30 days to become eligible for as much as $6 billion in additional federal loans.
So, Chrysler will be forced to become an Italian corporation and only then, will get government loans? HAHAHA. Thus ends the greatest empire on earth! And notice how severe the government is with an organization that has a union compared to the banking sector, whose many bonuses for top bosses was ignored until immense popular rage slowed down the looting?
U.S. Treasury Secretary Timothy Geithner said some financial institutions will need substantial government aid, while warning against any attempt to tax investors who join a federal program to buy tainted assets from banks.
WHAT THE HELL???? Arrest Geithner and charge him with inciting a riot. How dare he? While Obama, his supposed boss, acts the sock puppet to the rich, Geither orders us to not tax these multi-millionaires? Well! There we have it: are we menaced by taxes and socialism or by a bunch of leeches driving us into deep debt so they can line their own pockets, tax free?
“Some banks are going to need some large amounts of assistance,” Geithner said today on the ABC News program “This Week.” The terms of a $500 billion public-private program to aid banks “cannot change” for investors or they’ll lose confidence in the plan, he said on NBC’s “Meet the Press.”
These damn welfare kings and queens can jolly well go off to China for large amounts of assistance. And I hope the Chinese laugh before kicking these billionaire beggars to the curb!
The Obama administration is pursuing the most costly rescue of the U.S. financial system in history while facing taxpayer concerns the aid is bailing out Wall Street firms that took excessive risks. After allocating about 80 percent of $700 billion in aid approved by Congress, administration officials want to keep open the option of seeking more.
They are like zombies: they come back for more and more and more. This is COSTLY and is costing whom? The future taxes…. that Geithner doesn’t want the gnomes and zombies to pay! We get to pay it, 100%. Is this capitalism? Or more obviously, pure piracy?
“The great risk is that we do too little rather than too much” to revive credit and stem what economists say may be the worst recession in seven decades, he said.
The damn government can lend directly to us, the taxpayers! Why do we need leeches giving themselves billion dollar bonuses as intermediaries when the money these gnomes supposedly will lend us is actually OUR OWN MONEY IN THE FIRST PLACE????
Banks need to show more willingness to take risks and restore lending to businesses in order for the U.S. economy to recover from the recession, Geithner said.
“To get out of this we need banks to take a chance on businesses, to take risks again,” he said.
Capital gains profit when exposed to business risks that work. The other side of this coin is, they lose money if things don’t work. This is the business of business: it MUST be ‘red in tooth and claw’ in order to operate. When it is muffled by many counter-party derivatives swaps and AIG insurance games, it collapses.
Increases in housing purchases and small business lending indicate government aid is reviving markets, he said.
“Where we are acting, we are seeing progress and impact,” Geithner said on NBC today.
America is not rich. We need more debt because we are not in a capitalist system nor are we in a socialist state: we are on a pirate ship run by a ruthless band of cruel gnomes who have only one interest: to have all the wealth and women for themselves.
Geithner defended the public-private partnership by saying it was better than the alternatives of requiring banks to weather the crisis with limited federal backing or having the government buy the financial institutions’ toxic assets….
“The investors are taking risk, their money is at risk and at stake,” he said. Allowing investors to leverage their money with government contributions and guarantees “is a relatively conservative structure,” similar to when an individual obtains a mortgage to buy a house, he said….
They are not risking ‘their money’ at any point in time. They risked ‘leveraged’ money which came out of the Japanese carry trade. Now that the US is ZIRP like Japan, they want the US to be the Japanese carry trade and give them free loans so they can play capitalist games using taxpayer IOUs.
As for his example here, this particularly enrages me: This IOU leverage is NOT ‘exactly like an individual obtaining a mortgage to buy a house…’ for we buy houses to LIVE in. Banks used to be very uptight about this provision about living in something. Second houses required higher interest costs due to uncertainty since the owner wasn’t living there full time!
Throughout the last decade, I have argued hugely that the main thing we must do is pay down our mortgages so we can live ‘rent free’ and NOT use house debts to play stock markets! Or any markets at all! Only if you sell a house and BUY A CHEAPER PLACE, can you take the CAPITAL from this sale, and INVEST IT.
A lot of our gaming this last few decades were people going deeper and deeper into debt in order to play the markets that paid more than the debt costs.
“We still don’t have the transparency and oversight,” McCain said on “Meet the Press.” He said his biggest concern is that the cost of stemming the financial crisis will worsen annual deficits projected to exceed $1 trillion for many years.
YIKES!!!! Many years of trillion dollar deficits is BANKRUPTCY. And not due to social security systems that are being relentlessly undermined by transferring US jobs to India and Asia, either.
“What I am most worried about is laying the debt on future generations of Americans,” he said.
The lying bastard.
When asked on “This Week” whether Treasury had enough resources to provide a similar level of aid to struggling U.S. automakers, Geithner said the administration was “prepared as a government to help that process.”
Which was to seize draconian control of the auto industry so it can be de-unionized more ruthlessly.
“We want to have a strong automobile industry,” he said. “We want it to emerge from this period of challenge stronger.”
US jobs are of primary importance if one is a leader of a nation. If one is working for foreign gnomes or domestic pirates who don’t pay taxes, then, giving US taxpayer loans so they can EXPAND FOREIGN HOLDINGS and export even more jobs, is what makes the ‘industry’ stronger. But not the US workers. We are being ruthlessly weakened, step by step.
Foreign trade of China’s capital shrank 37.2 percent year-on-year in the first two months of 2009 to $24.85 billion as the world economy slowed, the local customs house said Saturday.
Exports were $7.28 billion, down 6.9 percent, In other words, exports fell only a small amount and imports were $17.57 billion, down 44.6 percent. In other words, IMPORTS fell a lot more than exports…which means China is weaker but not collapsing at all, quite the contrary…But exports of rolled steel rose 31.6 percent to 500,000 tons and those of oil products increased 33.3 percent to 622,000 tons.
All world trade contracts when the US can’t buy all the time. We run less red in [we still are very much in the red with trade!] but the Chinese cut down their own imports much, much more than exports so they are still in the green. We are very much, still in the red, despite cutting imports down a great deal.
One third of Chinese executives surveyed by Deloitte last week said they are planning to make large strategic acquisitions, with a further 29pc in the market for “bolt-ons”. Nearly all the 23 top-level Chinese executives questioned said technology companies are a key area of interest….”Whilst many other buyers have lost their taste for deal making, the Chinese remain hungry.”
The Chinese can make deals because they have CAPITAL. Think about this: the COMMUNIST CHINESE have CAPITAL. The US has DEBTS. And we owe the most to the Communist Chinese! And people tell me that socialism is a failure? The Chinese communists are NOT the Western bankers! Not even slightly, at all. No, the Chinese are Chinese! The US bankers don’t want ‘communism’ to triumph because they are not communists, nor are they happy that the Chinese are triumphing.
They thought, when Nixon went in, we could pour into China and EXPLOIT the communist Chinese. After I spent several years, working with the Chinese, explaining capitalism to them, they figured it out. And took it on and exploited it to the hilt. And are winning, of course. The US bankers hope to CHEAT the Chinese which is why they lie about gold, just for one glaring example.
I showed in previous articles, how the Western bankers in the IMF, for example, were outraged their program of convincing the Chinese that FOREX holdings and sovereign funds were worthless. Now, the Chinese are using both, IN A DOWN MARKET, to buy up things, CHEAP! They have ‘capital’ and know what ‘capital’ is. Unlike the western bankers who refuse to read Karl Marx, ‘Das Kapital’.
Lawrence Jin, Chinese services group partner at Deloitte, said: “Given the depreciation of sterling and low equity values, we expect a significant increase in Chinese backed deals in the coming months.”
The US and UK hoped, lowering the value of our currencies would mean, we could sell manufactured goods to China. China isn’t stupid. They want the jobs. They do exploit these periods of monetary weakness to buy up our factories and systems! Another thing I want to say to that fool, Obama: it isn’t just ‘jobs’ that are moving out, it is ‘factory systems’ and once out, hard to get them to return.
I will also inform Obama that one aspect of the Chinese 50 Year Plan hatched in the early 1980’s is, they entice, with cheap wages, our corporations to transfer our factories to China and then the trap will snap shut: even with low wages here, these factories are NOT coming back. Trust me on this.
The Monetary Authority of Singapore may devalue the city’s currency and allow it to drop 4 percent against the U.S. dollar by June 30 to aid exporters and lift the economy out of the worst recession since independence in 1965.
ZIRP continues its destructive passage. All things are going towards zero! Everyone is devaluing like crazy. The ones who will win this game are those with big FOREX holdings PLUS sovereign wealth funds. Singapore has this but is also a tempting target for Chinese take-over since they are very small.
The central bank will shift the mid-point of the Singapore dollar trading band at a twice-yearly review in April, according to 15 of 17 economists surveyed by Bloomberg News. The currency is “extremely and ridiculously overvalued,” Patrick Bennett, Asia foreign-exchange strategist at Societe Generale SA in Hong Kong, said last week.
The floating currency system is imposssible. It makes trade very difficult. Since everyone is shifting things about all the time, it is very hard to track and control. Except when someone is very, very big like China, just for one glaring example.
This was all launched by the US for spurious reasons. We didn’t want to pay taxes for the Vietnam War.
Singapore’s exports fell for a 10th month in February as global demand for electronics and drugs tumbled and the government forecasts gross domestic product will shrink as much as 5 percent this year. Exporters are losing out to regional rivals after the currency weakened 6 percent in the past six months, compared with losses of 17 percent in the Indonesian rupiah and 12 percent in South Korea’s won.
Japan began this process and is sucking in all of Asia.
“The central bank’s objective is to restore a measure of competitiveness,” said Wei Zheng Kit, a Singapore-based economist at Citigroup Inc., the world’s fourth-biggest currency trader. “A one-off depreciation will achieve this objective.”
As the entire planet rushes to zero, the US will try to recapitalize this system by printing funny money. If we want to see money go to zero value, fast, this is the direct route! and we hope to palm all of this off to Asia in return for them producing our manufactured goods we used to make here, at home, once upon a time, before ‘free trade’.
Crushing the American people, killing off our social systems, killing the elderly, won’t make us rich nor give us more capital. Remember: HUMAN LABOR IS CAPITAL. Thank you.
P.O. BOX 483
BERLIN, NY 12022
Make checks out to ‘Elaine Supkis’