Hi there. The economic mumbo jumbo cargo cult has not even noticed the ongoing phenomena, as usual they peddle the lackey theories of their Masters and Producers. The same applies to the impostor left parties.
As in the previous post, you should read MMT and read Ellen Brown.
She is the real gem in this desert of meaning in the last remaining decades of the human parasite organized life and thought.
Thomas Piketty has missed it by a long mile.
The MMT analysis is not good for this situation in sense that the budget deficit = net spending is not accurate enough, as WD has pointed and proved many times on this “chain” blog.The savings due to the State deficit/debt go as a savings in a very tiny fraction for the households and only in a very minor amount to the manufacture capital. The gross saving from the State deficit goes to the Portfolio Capital.
The way how Central Banks deliver the money directly to the topfew and nothing directly to the bottom of the Society pyramid make the famous inequality divide. Witchdoctor is proving here, once again and from the slightly different angle, that only the QE- printing money out of nothing- from the bottom up- from people pockets up to the real capital owners- manufacturers- can make a full employment, and the capital accumulation and profit possible. The current model is provoking the end of work and the end of Capital in 21st Century. Pikkety call for taxes is completely a wrong approach if the pyramid of money flow is not overturned before we can talk of taxation, which, in the money out of nothing economy is not even an issue. Taxes are there to constrain everybody to use the State currency for exchange and not for financing the State, as MMT clearly proves..
To cut it short, just now, there are many left and so called progressives who want to pay and tax for the debacle of capitalism , debacle of austerity and neoliberalism, debacle of people going poor and unemployed , now, when the crisis is going to hit as a nuclear bomb,by taxing the last remnants of some wealth in people pockets, like real estate-houses, Flats, savings… and make all poor but equal, the communist dream with the chosen ones on top!
OK, if you need to tax as a moral act, then start taxing anything over 2million euros.
The stupidity of the left is not even taking into account that the Portfolio Capital is having in his pockets HUNDREDS OF TRILLIONS OF ASSETS. They want to tax people peanuts instead, as usual, the dirty sods.
The title of this essay says all. And, before reading the theoretic conclusion here, you should read the Ellen Brown findings first.
You should open the Ellen Brown post in a new tab and read it side by side.with WD, If you can not do it on your smartshit, consider buying a cheap laptop, before they stop making them…
The succinct postulate is that the Portfolio Capital of Corporations , Investment funds and hedge funds, etc,in hand to hand operations with the Central Bank and the State,hijacked by the Portfolio Oligarchy has definitely destroyed the Capital, as Witchdoctor defined it in the previous post.
It is mindblowing that almost 60 years past the rise of the financialization, the cargo cults of all best paid intellectual lackeys have not noticed the logical developments of so called “Capitalism”. Ellen Brown did, WD did,… writing it here for years.
The Portfolio Capital, by constant Quantitative easing pouring directly into his own pocket, with the total complicity of the Central banks and the accommodating laws made by the hijacked State, by the legal framework , National and International, written for the Portfolio Capital, has reached the stage of “simil” Portfolio Corporate State Monopoly Capitalism. Something very similar to the new version of the Monopoly Capitalism, but much more pervasive and dangerous..
The Portfolio Capital is playing for profit by collecting assets which then, by QE they use, result in rise of the stock prices of the assets, and this is the core Portfolio Profit Capital. The rise in price of assets and stocks makes the profit.Ellen Brown points out the role of tens of trillions of ETF.
The progressive left, especially in Europe, has not even a clue what ETF are and how they control the economy. And how the Central Banks pay for this into the pockets of Portfolio Capital for free.
The private banks are only the small merchant trading lackeys funding the Portfolio Capital. They do not play any significant role anymore, since the real capital is dead in 21st century and the borrowing /lending economy is defunct as a driving force of capital accumulation..
Ellen Brown:
“Exchange traded funds are bought and sold like shares but operate as index-tracking funds, passively following specific indices such as the S&P 500, the benchmark index of Americas largest corporations and the index in which most people invest. Today the fast-growing ETF sector controls nearly half of all investments in US stocks, and it is highly concentrated. The sector is dominated by just three giant American asset managers – BlackRock, Vanguard and State Street, the “Big Three” – with BlackRock the clear global leader. By 2017, the Big Three together had become the largest shareholder in almost 90% of S&P 500 firms,”
The Portfolio Capital is NOT investing in real capital. It is investing in the price.And from this price, rising or shorting, it makes a
Profit.
There is no capital formation in this operations in the classic sense.The capital accumulation of the real economy is not the goal of Portfolio Capital.The situation has overturned and is upside down, and the effect is a planning economy and the depletion of real capital . The growth of capital, since the rules and constraints are “upside down” has no further expansion capability as it is de facto blocked by the Portfolio Capital in his own expansion.. That is Thermodynamics , see WD posts on thermodynamics and economy bust.
Ellen Brown:
“Public policy is made today in ways that favor the stock market, which is considered the barometer of the economy, although it has little to do with the strength of the real, productive economy. Giant pension and other investment funds largely control the stock market, and the asset managers control the funds.That effectively puts BlackRock, the largest and most influential asset manager, in the driver’s seat in controlling the economy.”
As Witchdoctor has already written (sic, it is all there in the blog already for years now, stupid retards)The Washington Consensus, and the Fiat Money rule have dematerialized Capitalism in the Financial Portfolio Capital as the leading force. This was due to the needed thermodynamic expansion room to expand in the Vertical way, away from real economy. The neoliberal economy is a straight jacket for the real economy, since the rule of capital accumulation vs workforce purchase power and the extraction of profit makes the LAW of Redundancy of the vast sectors of the population, which can find the only escape in expansion of the services economy which turn into a precarious work, which turn into a gig economy and which turn into a intermittent servitude.The law of falling profit and growing redundancy- unemployment of the neoliberal accumulation model makes the only escape route for the Oligarchy search for profit- into the vertical thermodynamic inflation of a financial sector of immaterial simil money transactions which in turn form the Portfolio Capital, hand in hand with the fiat money issuer- the Central Bank and the State legal framework which allows this magic to happen.
But the real capital formation in this game turns into a dead capital of the 21st century. Until the Global Oligarchy keeps this top down model of enrichment by Fiat,without the population rebellion and before the climate crash, all is fine.
The solution is the QE for the people and this makes a comeback of the capital Formation, which , this time, can be communal, cooperative, community based, private or in a minor way, State owned.The new peer to peer energy and community network of capital formation of any type of paid and exchanged production, non profit, which means profit has to be REinvested back.
With a Public bank Solution as Ellen Brown is doing and proposing.
And, the left is dead. The left parties and their intellectual obsolete retards are dead.
There are only two things: the left and the taken.
Take Five!