Current global crisis and power theory

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Re: Current global crisis and power theory

Postby jbrennan » Wed Dec 17, 2008 11:31 am

Hi Scott.

I agree: class is a fuzzy concept. Perhaps now more than ever, for we even have teachers pension plans engaging in huge buyouts! Have the teachers become capitalists?

My remarks may have been overly general. And yes, the markets, financial or otherwise, affect people who are not ultra-rich. Many people might stand to suffer if the financial sector was allowed to implode. But I still think that the swiftness and weight of the government response signals that it is elites who stand to lose, not the 'average Joe and Jane'. It may be hard to disentagle the 'reality' of the situation from all the political theatre (I can't even pretend to do so), but when others face 'crisis' on a daily basis due to the 'normal operation of hte market', the government doesn't intervene. Markets are left 'free' to police themselves. But when markets fail those at the top of the social hierarchy, government can mobilize itself immediately and with huge resources. Where was the government response to Katrina!?

All the rhetoric that the Right usually spews with respect to welare and the 'nanny state' holds so long as markets serve elites. Welfare is seen as bad becuase it is an unjustifiable appropriation of the property of others for the purposes of redistribution (think Hayek, Nozick et. al.). In short, welfare is normatively and economically taboo.

But as soon as giant corporations are on the brink of failure the Right is in favour of corporate welfare. All the rhetoric aside, I am amazed that the business press can say, with a straight face, mind you, that the auto sector or the financial sector should be bailed out when they vehemently disapprove of even modest welfare payments to the poor and under-privileged.

In short, welfare for those living on the marings is bad because it creates 'inefficiencies' and worse, people fall into the 'dependency trap'. But corporate welfare is good because, well, investors need to catch a break when markets go awry!

This is still insufficiently general, I know.

I am curious what you mean when you say the market is the most "democratic entity on the planet"? What do you mean by the term 'democratic'? If it is merely votes and representation, how many votes do the poor and under-privileged get in comparison to, say, KKR, or Microsoft or Pfizer or Raytheon? How well is the former group 'represented' in comparison to the latter?
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Re: Current global crisis and power theory

Postby Scott » Wed Dec 17, 2008 10:55 pm

No, simply meant in regards to voting via investments, not in any broader context that I know of.

Theoretically, I suppose, there may be an entry point for forcing capital power to reform in some way, but as the rest of society knows, it is very difficult to organize the amount of people necessary.

I agree in principle with your view, and am sure it is true to a large degree. Whats the point of being wealthy and connected if you are not ensured prime seats at the trough?

But, closer to ground level, average income earners (like auto workers) have a vested interest in whether their employers are bailed out or not, not to mention the pension funds investors etc.

And, to be honest, I dont see how it could be any other way without ridding ourselves of the ownership of production (which is not limited to simply capitalist forms, and which, by virtue of such, be unprecedented within world states that are not hunter-gatherer states).

I think there should be much harsher penalties (as in criminal charges, trials, and severe fines and sentencing (in short: blood)) for those decision-makers who are involved in leading corporations (investment houses) into ridiculous and obvious disasters. But then they scatter like rats from a burning ship, these masters of the universe....

Just read today that the $2T the US Treasury is handing over to business interests will be done so in secret, that is no corporate identities of recipients are to be revealed, for the purposes of protecting `trade secrets`.

So the question is: where does the buck stop? With whom does the financial well-being of entire state economies reside?
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Re: Current global crisis and power theory

Postby Scott » Wed Dec 17, 2008 11:06 pm

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Re: Current global crisis and power theory

Postby Calm » Fri Dec 19, 2008 8:21 am

I think that this "financial crisis" is a direct result of a deliberate and calculated fraud.

We can’t admire the American “Success” while at the same time suggest that the American’s did not plan for this “Success” and that very smart and intelligent furturists within the American government see at least 15 or 25 years into the future.

We can’t praise the American “Genius” while at the same time suggest that this economic crisis is the result of stupidity.

The American Capitalist system is a scheme of conceit, delusion, debt and deceit.

I quite well remember watching an interview with Dick Armey (R-Tx) about 5 years ago. He chuckled aloud mockingly when detailing how the world was giving America goods and services in trade for a simple piece of paper.

All you had to know or study was history and to recognize the collapse of other empires in an historical context.

Britain knew they were collapsing as a world power beginning around 1870 and the collapse did not occur until after World War I.

America is doing the same things that Britian did in order to stall-out the inevitable. America is doing now, exactly what the British did from 1883 to 1913, and when Britain increased its dependence on imported goods following the introduction of free trade.

About 1870 the German Reich emerged as a new economic player on the map of Continental Europe in the same way that China is doing so at this moment in time. In August 1914, Britain declared war against Germany in an attempt to stop the development of Germany’s economy which was a threat to British hegemony.

Immediately following the end of World War I, Britain collapsed as an “Economic Power” and America became the dominant world power.

This housing crisis …. this credit crunch is not a mistake!

But rather a well planned event and is being deliberately engineered.

That is how the script was written, that is how it was orchestrated to appear but that is not what caused the crash. The mortgages were just the necessary raw material required for the trade, the leverage, the manipulation and the running of the rouse. It was designed to fail and designed to mask itself behind a wall of plausible deniabilty.

Each Free Trade Agreement which was signed was actually a method or means for the Economic Terrorists to enter the banking systems of every country in the universe. It had nothing to do with manufactured goods. The American's negotiated Free Trade agreements for the unfettered access to foreign banking systems and were then able to pollute other sovereign systems with fictious money.

In doing so, the American’s purchased everything on the globe and the collateral used was 6 cents on the dollar. American banks were allowed to finance 40 dollars for each dollar they had on deposit.

This was a deliberate scheme to take possession of every asset (oil and mineral deposits) on the globe prior the collapse of empire. And worse .... with the collapse of the American Capitalist system, the American's will still be allowed to retain ownership of all these assets even though they were obtained in a fraudulent manner.

The American's have no intention of repaying any of their outstanding loans.

Greenspan went from one bubble to another during his time as the Federal Reserve chairman. Somebody compared his chairmanship as a guy riding around in a bumper car and when he hit one bubble-barrier, he careened off into another.

Since at least 1980, the American's have been on a "Kamakaze Mission" of sorts. They became suicidal as so many past empires have done prior their collapse. (Britain and the Dutch empires.) Before America collapsed as an empire, they were prepared to take the whole world down with them.

And in the background .... while all this financial fraud was taking place, and when Western populations felt secure and dreamed of a prosperous future, the governments were introducing laws under the guise of "Anti-Terror" and setting the stage for the imposition of Martial Law.

It was necessary to have the economic situation appear to be successful so that all the domestic surveillance laws could be introduced without suspicion being cast upon governments and having citizens feel that it was not a reaction to street riots and civil unrest.

The housing boom was instigated because it created employment for 60% of the American workforce. This contruction also bailed out the retail sector.

It was Bill Clinton who first introduced the Patriot Act and appointed a “domestic military czar”. Clinton and his furturists recognized the decline of the American empire.
Presidential Decision Directive 62, Protection Against Unconventional Threats to the Homeland and Overseas, dated May 1998, and Presidential Decision Directive 39.

During the 60's and when the young people formed a "Movement", the Ruling Class introduced the term "Druggie" in the same way they introduced the term "Terrorist" today. Both terms were created by fear and both terms allowed the Ruling Class an opportunity of "Police Actions" against what was said to be a threat.

All the "Toys" which the Ruling Class required to control uprisings and civil unrest are in place now. Every police force has been militarized and every city has a SWAT team.

There is no "Terrorist" threat! The "Terrorist" is only a replacement word for "Druggie".

There must be at least 100 million Western tourists trippin' around the Middle East each and every day. None are being attacked by crazed Muslims! You woudld think that if Muslims were on the rampage, tourists would be getting killed by the dozens.

Airport security is a hoax!

If anybody wanted to bring America to a standstill, all they need to do is attack the railway system. 80% of all goods and products in America are transported by rail and not by plane. Every type of hazardous chemical is transported by rail and most railways run right through the downtown section of every city in America. Chemicals being transported by rail are some of the most deadly chemicals known to mankind.

When rioting and civil unrest break out, the "No Fly" list will have every union leader and every "Professional" protest organizers name listed. There are a million or more activists names on the No-Fly list. The Ruling Class does not want people trippin' around the country organizing protests.

It is protests which are capable of bankrupting any city within America.

Remember the recent immigrant protests which took place in 2006 during the government discussions of the immigration problems and the introduction of legislation in Washington?

These protesters shut down New York and Los Angeles overnight! Had the protests continued for a week, thousands of business establishments would of been bankrupt.

We can expect to see a huge increase of religious orientated television programming in TV Land.

It is very important for the Ruling Class to sell all the Poor Folks a conscience.

As the Rich Folks walked by the homeless people and sneered for the past 25 years, it is the Rich Folks who are now terrified about being strung-up on lamp posts out behind some gas station or in some sinister dark alley.


Edit: I removed the link to my database
December 21, 2008
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Re: Current global crisis and power theory

Postby Scott » Wed Dec 24, 2008 9:08 am

This article at Global Research

compares the recent crisis with a recent Ponzi scheme you may have heard about. The author stipulates that the problem with financial markets is that they no longer recognize the importance of investing in `true capital`, but, much like victims of Ponzi pyramid schemes, invest in anything to make a buck. Prices are inflated due to the swirl of investment but, since that investment is not in `true capital`, the bubble pops and prices crash. Government is criticized for encouraging this activity, citing Alan Greenspan as the `bubblemeister` of his day. The solution appears to be stricter government regulation so as to ensure investment is more likely to find `true` investing options.

From a power theory perspective, though he correctly sums the situation, it is not news. The article suggests that only markets that have lost focus or balance (ambiguous terms) or are sick (`true capital` investment options are not available) are likely to be vulnerable to Ponzis. However, as we know, profits and production have been a business enterprise for a long time. Capital has been finance, not `true` or `real` or a `tangible asset`; it is the relative price of the asset (which is open to fluctuation) that establishes its capital value, not the classical notion of how it contributes to productive capacity and therefore profit.

A question I had while I read the article (since it seemed to be implying the imperative of reform) was: what is the way to an alternative?

The article seemed to understand markets as existing for purposes of investment and dividend, rather than differential returns. So as long as people are investing to not simply make a buck but to maximize their profits differentially (relative to alternative options, or, to beat the average rate of return) they will do so, reaping the rewards and punishments as may be. As was discovered in the Asian Crisis of 1998, when massive amounts of capital shift, societies are punished and therein lies the problem. But with so much of society invested, how can one say it is simply a matter of enforcing regulations. And where is that political will likely to originate?
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Re: Current global crisis and power theory

Postby Calm » Sun Dec 28, 2008 3:04 am

The truth about the Capitalist System Collapse is right here.

First they blamed the Poor People for being too greedy .... and then they sit before this committee and tell some truth.

Rating Agencies
Committee Holds Hearing on the Credit Rating Agencies and the Financial Crisis
Corporate Accountability
Chairman Henry A. Waxman
October 22, 2008
(Flash Video)

The same Establishment Class are losing 3 trillion dollars in one single government department and we are now being asked to trust these Economic Terrorists to rate bonds and securities.

Dov S. Zakheim
During his term as Comptroller, he was tasked to help track down the Pentagon's 2.6 trillion dollars ($2,600,000,000,000) worth of unaccounted transactions

Would you trust any financial document or transaction originating from the American Capitalist System? And, if the rating agencies begin to lower the credit ratings or worthiness of banking financial documents .... just who decides how much to cut? Just how exagerated are the present ratings on U.S. securities? Ratings manipulations seemed to be quite pervasive within the rating companies. It seems that every credit rating agency was in on the "Joke" and just continued floating worthless paper around the universe. Once the American Capitalists begin to manipulate the credit ratings system, that spelled doom for the system itself.

This program discussed the Senate Hearings:

Credit and Credibility
What role did the credit rating agencies play in the current economic crisis? This week, a former managing director at Standard & Poor's speaks out on U.S. television for the first time about how he was pressured to compromise standards in a push for profits. Frank Raiter reveals what was really going on behind closed doors at the credit rating agencies the public relies on to evaluate the safety of their investments.
"During this period, profit was primary; analytics were secondary," Raiter tells NOW Senior Correspondent Maria Hinojosa.
Who was watching the watchers? Surprising new revelations about the economic debacle, this week on NOW.
Host David Brancaccio
Correspondent Maria Hinojosa
November 21, 2008

Debt Watchdogs: Tamed or Caught Napping?
By Gretchen Morgenson
December 07, 2008

“These errors make us look either incompetent at credit analysis or like we sold our soul to the devil for revenue, or a little bit of both.”
--A Moody’s managing director responding anonymously to an internal management survey, September 2007--

"When plunder becomes a way of life for a group of men living in society, they create for themselves, in the course of time, a legal system that authorizes it and a moral code that glorifies it."
--Frederic Bastiat, "The Law" (1850)--

DAVID KAY: [Iraq] was really spinning into a vortex of corruption from the very top in which people were lying to Saddam, lying to each other for money; the graft and how much you could get out of the system rather than how much you could produce was a dominant issue.
--Tom Brokaw interviews David Kay, U.S. Weapons Inspector, January 26, 2004--

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