Thursday, January 9, 2014

Plutocratization Can Be Helped By Welfare: Rome

One of the cause of the increasing inequality is simply that those who control public opinion (media owners and managers, pundits), are, in general, very wealthy, or sympathetic to wealth, in the USA. Thus appears a strong pro-plutocratic bias in the media. That same effect is characteristic of banana republics. It makes it unlikely that a civilized debate will get out of the plutocratic comfort zone. Thus, insensibly, inequality and poverty augment. The case of Rome, where panem, circenses and alimenti (food stamps) were inaugurated show an alarming point: welfare programs can comfort plutocratization.

Monday, September 30, 2013

Reshoring, Globalization, Plutocratization

I agree with the notion that global trade's growth has abated, as many one time improvements are behind us. But there is more to say. What was the main enabler of globalization? Plutocratization. Globalization allowed plutocrats to augment their production, hence power, all the more as they could buy the local potentates, hence the local law, while avoiding the laws of their countries of origin. A developing problem for plutocrats is the rise of transnational laws, regulations, and even examinations (!) to foil their plutocratic plots. For example, if Apple is condemned to pay more than 2% tax, it may reconsider some of its global gymnastics. If capital cannot take refuge overseas, it will have to invest locally. As observed with reshoring. The pirates are coming home to roost.

Tuesday, August 13, 2013

Deficit Reduction Scam? Barack Rand Obama Paul?

Much of the deficit reduction may be a scam. Banks have been repaying the government, using money from QE. Moreover; From the Wall Street Journal today: "The sequester is squeezing the very programs liberals care most about—including the National Endowment for the Arts, green-energy subsidies, the Environmental Protection Agency and National Public Radio. Outside Washington, the sequester is forcing a fiscal retrenchment for such liberal special-interest groups as Planned Parenthood and the National Council of La Raza, which have grown dependent on government largess..... Liberals had hoped that re-electing Mr. Obama, the most pro-spending president since LBJ, would unleash another four years of Great Society government expansion. Instead, spending caps and the sequester are squashing these progressive dreams. Welcome to the new fiscal reality in Washington. All Republicans need to do is enforce the budget laws Mr. Obama has already agreed to. Entitlement reforms will come when liberals realize that the unhappy alternative is to allow every program they cherish to keep shrinking." What is there to celebrate? That we don't need to elect Rand Paul to the White House, because he is already there, and has already enated his program? PA

Monday, August 12, 2013

Transient Stimulus, Permanent Improvement: Much Feared.

Paul Krugman argues that stimuli are not permanent. I observe, though, that their results can be permanent, for the best. Even president Hoover had advanced the start of the construction of the colossal Hoover dam, to provide jobs. Although a stimulus is not permanent, the tasks it accomplishes can be. To wit the Hoover dam, and many other public works of the 1930s, let alone the Interstate FREEway system of general-president Eisenhower in the 1950s. And so it is around the world. Germany uses Hitler's autobahns... And Volkswagen (another Hitler creation) is still around... The same holds for the most major Japanese companies, created by Japanese government programs, starting in the 19C... all the way to American directed stimulus in Japan in the 1950s. All the Very High Speed train projects, in France, Japan, Germany or present day UK, all started as government programs. And also Boeing and Airbus. The Marshall (another general, used to be Eisenhower's superior) Plan was another example of transient stimulus, with PERMANENT consequences. In democracy and related regimes, the ultimate boss of the economy is not the economy, but the government. Trying otherwise is trying to run the chicken without a head: it works, but not very long. It is precisely the fact that a transient stimulus can permanently improve the condition of common folks that frightens the plutocrats. The lower We the People, the higher our lords, relatively speaking. That's what real greed is all about. Not just having more, but having things no common person has. PA

Thursday, August 1, 2013

Wealthcare State Endless Summers

Wealth Care State’s Endless Summers

Starting with Nixon, the Kennedy-Johnson welfare state became the wealthcare state. The rise of systematic failures such as Lawrence Summers, was instrumental that way.

Democrats point at Republicans all the time. In truth, they set-up the Wealth Care State just as enthusiastically. Ever since Nixon, all outwardly socially motivated programs grew that monstrosity.

Obama said, July 31, 2013, Summers saved the USA. However, under Summers the bad operators of the very bad bank holding corporations were lent indefinitely (through QE) more than 8 trillion dollars, and the American people, who paid for this rescue did not even acquire the properties they paid for.

Anyway, 2,500 words of details of what is wrong with Summers, TARP (Transferring Assets to Rich People) and the wealthcare state on:

Monday, July 29, 2013

Wealth Care's Summers

Plutophiles are terrorized by the idea that their masters the plutocrats would enjoy in the future less money, and less control, than they do presently. Indeed, who would feed them? Would they have to work? Would they be exposed to truthful thinking? Would they have to recognize that money for the very few does not an economy make?

The WEALTH CARE state is the exact opposite of the welfare state. The Wealth Care state has a knight, and demonstrated enabler, Larry Summers, champion of Goldman Sachs, Citigroup, all hedge funds and their ilk. Summers, Grand Cross of all derivatives, especially those that allow banks to show profits that do not profit society, and are reserved to the very few, insured, as they are, and financed, as they are, by the bleating, unworthy, clueless taxpayers.

Summers, and the inflationphobes are the incarnation of all what's wrong, as the Wall Street journal itself admitted Saturday (Summers is on the take from the plutocracy, an article said substantially), and today (Federal Reserve 'Doves' Beat 'Hawks' in Economic Prognosticating

Slow Growth, Low Inflation Give Yellen, Dudley Upper Hand on Forecasts;

Urban Sprawl: USA versus Europe

The recovery of the USA, the real one, not the fake one from financial engineering (zero interest rates, QE, Goldman Sacks and its ilk) rests mostly on fracking (and a low $/Euro ratio). Break the ground, get gas and oil.

Urban sprawl exposes the USA in case the fracking gets fracked (from a combination of ecological reasons and bad ROI). Or in case the CO2 crisis becomes so bad, even the deluded government of the USA submits to the evidence.

In Europe, it's different. Europeans have known for at least 1,000 years, that urban sprawl was bad: it encroached on arable land, and precious forests, increased the cost of transportation. Not so in North America. why? Because, modulo exterminating the natives, there was always a lot of land to misuse.

Want to do something about sprawl? First raise tax base of cities, punish sprawling (say by putting a significant carbon tax/gas tax). Otherwise? Danger, long term: one cannot de-sprawl overnight...

More complete version: