September 1, 2007
The Theory of Capitalism, liberal and neo liberal laissez faire free marked economy has disproved itself by disintegration and degeneration to the lowest common denominator of greed and selfishness. The market is dominated by do nothing transactions that shuffle tokens using 2nd and 3rd level financial abstractions, which make [inflationary] profit but no product for that money to represent. To see the dissipation inevitable in the scam of today’s finance, imagine a world in which it is the only industry. The service economy has moved US closer to that world. Our economy in America today is 80% service. None of it produces any of the real material goods, which we need to live. Twenty percent and growing fast is financial service, which is 100% dissipative usury and the most lucrative enterprise. All service inflates the money supply by “demanding” the banks creation of ledger debt [money] to pay the additional costs added to the real products we consume. Service produces no real goods. To reduce the costs and inflation caused by necessary and useful services, we must reduce the profits. If we remain foolish enough to consume unnecessary and useless, not even entertaining services, I’m at a loss as to how we will save ourselves from the self destruction, which is prophesied by the greed of the rich.
On WA Journal one morning, AZ Rep. Pierce (R) and Employers’ . . . CEO LeVecke, took opposite sides on the Arizona law that forbids businesses to hire illegal immigrants, under the penalty of loss of licenses. Pierce says the practice is illegal and that’s reason enough to support the new law. He also supported a rather progressive view on higher wages, when proposed extemporaneously by a caller, while sticking to traditional conservative idolatry w.r.t. free enterprise. He didn’t notice the contradiction. He must be one of those really naive, almost Libertarian, Republicans. He paid homage to the golden calf by regurgitating the ritual words; profit on investment, usury, loan repayment and businesses are most important. [more than the well being of the community, which is the source of the wealth] Like most politicians and businessmen of either party, he fails to note that such profit is the most unnecessary part of the cost of any product and the main cause, supported by the glut of labor, that wages and salaries are falling short of the average American’s needs.
LeVecke, on the other hand, maintained the disingenuous stance that we need the labor because Americans won’t do the jobs. An honest person would replace “do the jobs” with: “work for the starvation wages 80 to 100 hours per week, so that employers can have such high profit margins.” The restauranteur talked about the booming economy he attributes to Ronald Reagan and thinks, apparently, that the debt kite will fly forever. He doesn’t understand that the low wages he wants to pay in support of his profits must eventually undermine his customer base. He cited Microsoft’s “need” for foreign engineers and computer scientists (they’re foremost among the lobbyists for visas each cycle) but is [deliberately] obtuse and ignorant w.r.t. the downsizing of technical professionals that took place in the late ‘80s and early ‘90s, in order to increase profits. What most supporters of the neo con artist economic crime believe is a strong and vibrant economy is an illusion. It’s all smoke and mirrors and no real product to give it any real value.
The dissipation of the knowledge base, together with outsourcing of manufacturing, has depleted America’s ability to produce the goods we need to sustain ourselves and to give our money value in trade. Together with the loss of the skills to make the products we buy overseas and the educated professionals among Americans, who possess the scientific knowledge that made our economy great, our destruction for the sake of the greed of the few is almost complete. Almost all of our college graduate children, with masters or doctorates, have opted for economics degrees and MBAs. The party line is that all the abstract financial activity, like the bundled recycled debt that brought US real estate inflation and crash, by the mechanism of the sub-prime fraud among others, are real economic growth. The truth is: the service economy is a useless pyramid scheme held aloft by a debt kite. It’s supported by the hot air of Chicago School economists. Financial services, the most profitable kind, have no value. They are not assets. They are liabilities.
But even without the bad debt of sub-prime mortgages being sold as assets in order for the bunco artists to make more loans, thus keep their Ponzi/debt kite flying, finance, usury and capitalism must fall down in the end because they make money out of nothing. They’re an attempt to create perpetual motion by making money without making products with which to redeem it or else they parasitize, with their burden of usury, the little real activity that does take place. Finance is either bad or worse for the economy. Banking and the rest only work if their impact is minimized and there is perpetual growth, of real, material economy, to reduce the parasitic burden of the abstract activity that finance constitutes. We’ve overreached that limit in America. Our business is reduced to shuffling tokens of wealth about while they grow out of proportion with the real products they represent. We don’t make enough real goods to give the extra money we produce that way any value. Those shell games, pyramid schemes and other non-productive services, useless or otherwise, are now 80% of our economy and growing.
Nobel laureate economist Gary Becker of the University of Chicago is still saying that’s OK, even the sub-prime is a useful service that’s allowing Americans to own homes. Where’s his head? And he doesn’t see the sadism or even the irony of offering these loans to people the brokers know can’t afford them. Why do these scum balls take the risk? The con men on the front line sell the mortgages as soon as possible and turn around to make another loan so they can collect the increasingly exorbitant origination and all the rest of the fees again and again. They’ve got theirs and the big bankers who’re buying the worthless paper know the FED will bail them out, but not the “homeowner,” when the scam collapses. The taxpayers will foot the bill but in our other role we will lose our homes because no one will bail US out. The banks end up with our tax money and our property. It’s win-win for them
Becker also doesn’t seem to realize that the price of mortgages go up for the solvent borrowers too, putting more of them at risk and together with still too high real estate prices, out of the market. When the Chinese will no longer support our currency - it’s only a matter of time - and quit lending it back to US, heaven forbid they dump it, we’ll be up a shit crick of sky high interest that will bring the message home, maybe even to the brilliant Dr. Becker, that America is bankrupt. Don’t trust me. See “Uncle Sam, Your Banker Will See You Now” - By Paul Craig Roberts and check out the Becker-Posner Blog. Read their idiotic pontificating in their own words. They don’t use much technical language or references to mathematics there. Of course their pitch for the game indicates that they don’t understand that the high school algebra concept of a zero sum equation applies to economics. They apparently see nothing wrong with growing money on trees, as long as it’s mortgage or stock brokers and bankers doing it and not demonized government interference. Yet Becker does allow for a bailout in the current crisis but only when the indicators call for it. Even the anally principled forget the magic market and see the need for the taxpayers help, when the poor rich parasites have overreached. But never permit it, if the government aid might accidentally help the commoners instead of giving everything to the neo aristocrats.
Remember, it all started in the 1970s with the pursuit of cheap labor in the “Right to Work” states of the South. The initial damage was a decline in product quality and the advent of Visa and MasterCard. That was when consumers incomes began to drop and the credit cards became necessary to stimulate buying to keep the economy going. Then second and third mortgages became popular, as outsourcing became the way to increase profits at the expense of the health of the economy that supports our lives. The sub prime loans are the latest gimmick for making money out of nothing so we can keep on pretending the perpetual motion system of “free market” capitalist economy works. Only a moron could have believed that service economy and privatization could lead to anything but disaster. I guess Moses knew it 3500 years ago, when he forbad usury. But it’s not so bad if you have a Cayman Island account. For profit banking, insurance and finance in general have no value to most of US. They are a threat to our survival.
Though scorned, especially when played for the super-nationalists, who make up much too great and unhealthy a part of the majority (the we who’re capitalism’s victims) the opinions of the rest of the Peoples of the Earth do count for something.
“A debt culture gone awry” - By Hamid Varzi 08/21/07 - says, ". . . Muslims outside the United States interpret America's policies in the Middle East not as an effort to spread democracy but as a blatant neocolonialist attempt to solve its economic problems by force. . . " Shoveling borrowed money to investors in Halliburton et al doesn't solve our economic problems, it exacerbates them. The Chicago School is special ed for neo con artist service economy morons, whatever the specious and naive neo liberals - Friedman, Becker, Greenspan and Bernanke or the World Bank and IMF free trade imperialists - intended.
Large scale industry in general is the organized work of many cooperating to make a few rich. This sick and self destructive paradigm underlies the "value of banking." Finance is an abstraction of material industry: the means of control, wielded by the neo aristocratic lords of the 21st Century. That means our communities, mandated by Nature and Nature’s God, through the provision of social instinct, have been perverted to the benefit of a few parasites. The rich and their greed are abomination of Human Nature.
In the 1800s the manufacturers wanted increased immigration to lower labor costs. Today businesses, especially small services, want the same. In the Nineteenth Century the manufacturing sector was growing. The robber barons of mining, coal, iron and steel, railroads, and later oil, on which the growth was based, turned their excess cash, after reinvesting all that was possible in the expansion of their original monopolistic rackets, into banking and financial enterprises. Some of the manufacturing that their energy, material, transportation and monetary services supported, like automobiles and electronics, grew huge in their own rights and put excess profits into finance themselves. But the overall production of goods was growing and the influx of labor, immigration, was justified to some extent. Of course the workers had to be paid enough to consume the goods produced or the great circle jerk, skimmed at every angle by the elites of the neo aristocracy, would disintegrate. Excess material products for trade, interaction with the economies of other nations for mutual benefit, were a bonus to all Americans to the extent that the benefits were shared with the general population who worked to produce the goods.
Today’s entrepreneurs and established corporate giants are all about their profit. The greatest profits are made in the financial industry. Consumers credit cards are said by some to be the most profitable of all. So large operations are outsourcing the manufacturing to take advantage of cheap labor overseas, without bothering to import the people who make the low wages to buy their products. Well, the workers who make the goods couldn’t afford them anyway. The profits of the Giga corporations go into finance, like the manufacturers and original service barons of old. Sometimes they finance credit operations, like sub-prime loans, by those who want to jump over the hurdle of production of [or importation of] real goods and go straight to the most lucrative credit industries. We’re moving ever closer to the glorious day when finance is the only industry on Earth. But don’t worry, the Chinese have been subdued by capitalism and will forever be our slaves. They’ll produce the things we need to live. But can we even afford them as American employees are increasingly neglected and abused in favor of the profits of the few who mislead US.
A few Americans work for the high end “services” but more work for small businesses like restaurants, cleaning services, hotels, trucking and such. The small business owners, emulating the masters, want increased profits through cheap labor. Their business can’t be outsourced, so they support immigration. They don’t make products to buy. They don’t pay enough for their employees to buy them. We must work two or three “part time” no benefit jobs for totals of 100 hours per week or more. This economy is dysfunctional for more than 80% of US. - Note that the same righteous entrepreneurs, whose profit mandates these conditions, and the Giga corporations who finance them, will complain of the decline of family values among the workers. We’ve been taken from parents and siblings and spread across the country at the pleasure of the corporations. Both parents must work 80 hours per week to make ends meet and we have no time for our children. The moral criticism of masters who demand all of our time be devoted to their profit is less than incredible. The dishonesty of conservatives is a given. It’s blatant expression is an indication of a glut of hubris, the principal product of their chicken brains. - Whether the service you work for is small or large, you’re well paid or poorly, it is, like the chief parasite, finance, a non producer of material goods. The Service Economy is destructive to America, because it is destructive to most of our people.
Today the economy is 80% service. Coincidentally, it doesn’t work very well for 80% of US. Unlike the Nineteenth Century, our services today are seldom in support of domestic production. It’s money made of money with no material product to substantiate it. There’s all that activity of shuffling money and people and foreign goods about and providing, sort of, for our sustenance and other needs, but only 20% or less of the population are thriving. Can you imagine why that is? Most of US don’t work making the goods and must work overtime, 100 hours per week or more, to buy them. And that sorry life must be supplemented by borrowing. It’s all an attempt at perpetual motion of money, which is losing its value due to inflationary busyness. Soon China will cut off our credit and the house of cards economy will fail to provide even the basic necessities of life. Of course Bush, Cheney, Becker and Bernanke don’t have to worry about that. They’ve probably already converted their wealth to stable commodities or currencies and stashed it offshore somewhere.
Service, banking, insurance and finance in general, all of which oppress US with usury, debt and exploitation for the benefit of the few, are the tail that’s wagging our dog economy to death. The economy is dysfunctional for most of US. The few want to make the most profit by morphing their scams into the biggest fraud of all, finance. They’ve increased profit by undermining the dollar and the consumers’ buying power. That and the inability to produce domestic products that can be sold to get our money back from China are threatening the economy, which supports our lives. Our economic leaders and the politicians they own are a threat to the Human Race. They are a parasitic disease to be eradicated in the defense of our lives.
Monetary dissipation characterizes all of banking, insurance and finance. To reduce the damage to the culture, the economy and the Human Race by these parasitic practices, which threaten our survival by their depredation, all usury and profit must be reduced to the lowest level possible. Profit is the most unnecessary part of the cost of any product. The least costly profit is non profit. Services, especially financial services, if necessary for the common good, must be done in common, on a non profit basis. Finance, energy, large scale transportation and communication are services we need and want in common.
I’m on America’s side. The government and the corporations are on their own side. They aren’t on America’s side and haven’t been for more than a hundred years. The Supreme Court gave corporations the rights of people during the Grant Administration. The paper people shield the real people, the major stockholders that own the corporations, from responsibility for the harm they do to the community and the crimes of greed against Humanity that they commit. The corporations, the paper people, own the government and Bush is one of the elite corporatist rulers. The only freedom they care about is their freedom to have the fruits of our labor. Bush and his elite economic class want all the produce of the Human Race for themselves. A slow child should be able to see why their greed is self destructive. If you support those parasites you’re a fool or a sellout/traitor to the Human Race. If you’ve sold out, like most scabs, for a little bit more than average, you’d better think again. “There’s a hard rains a gonna fall!” - Bob Dylan, circa 1960. Whose side do you want to be on when the 80% awaken to what our mis-leaders have done to US? Don’t get wet!
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