Dusk was slowly setting in. The darkness was approaching from the depths. Witchdoctor was drifting motionless on the edge of the reef, his eyes adjusting to the darkness. The Sharks were coming, slow and swift, checking every corner of the reef. The night feeding and the sudden frenzy has begun. The price setting for the mostly vegetarian reef inhabitants was starting. For real . Everybody wore a price tag, a Wanted poster on his life. A few hours ago the so colored reef was changing to gray, getting darker and darker.
This tale starts and revolves from the Tao of the Physics by Fritjof Capra ( a little naive book, but who is WD to piss against the same winds he uses?), Shock Economy by Naomi Klein and the almost archaeological book by John K. Galbraith about the economic history.
Price setting is a stacked layer of many things. This text is not economic, but simple political economy, philosophy and dread, as J.K Galbraith defines the economy and the use of it in WD understanding.
Lets start moving the cornerstones flux of the Great Game we live in and forget the mumbo jumbo the Directors and Producers sell, and lets move some entities;
The State and how it is organized is an (almost failed) price setter.
The Unions a as an almost failed entity are a price setter.
The Central banks and the State debt are a (rigged)price setter.
The fundamentals, commodities, energy, are a (rigged) price setter
Demography and wages are a price setter.
War is a price setter (hehe, Keynes and war, is interesting…)
Destabilization of the whole regions is a price setter (with the fallout even on tourist prices, consequentely property prices, etc), lesser setters out of this tale for now;
Fixed costs and revenues of households are the price setter for the remaining income.
Food cost is the price setter,see Iraq, Syria and a lot of Africa.
Internet and Google and all other platforms are a price setter.
The politicians are mostly whores,working for a higher bidder, and they only convey the price setting.
But we have to start from the Sherman Act, and grasp the dominant position in this high macro tale. The Act which failed miserably, because the Concentration and Enclosure are the way how the debt driven economy works,in which the result of this concentration is not just the monopoly but the new upcoming order.
Instead of monopoly or oligopoly or a cartel, Witchdoctor will use the words Enclosure, Islands and Circles.
The Uber as a model is the best to explain the Tao of the Physics. By making available the service 24/24 , to be a price setter it has to depress the workers rights,no steady full time employees, no pension and no insurance included in the service.To be the ultimate price setter, Uber has to have no significant or notable costs for his operation. The price setting today is always a depression of the given on some other field.
That is why the Corporations and similar politicians which work hard for them are denying the Climate Change. They have to do it, because by depressing this costs linked to environment and the subsequent rules and tech limits in this NEOLITHIC EXTRACTION/FOSSIL ECONOMY they have to deny everything and so be the only price setters.In fact, from Milton Friedman on, the depressing and denying of the costs of the use of the Planet and of all the living creatures is the way to win.Extract to the max.
Chinese production is a depression of environmental rules, safety,health, pension and similar.
That is why China, together with her non ortodox Central Mama (not bad, eh?) is a major price setter, depressing the European Union and the USA on one hand but on the other hand keeping this two Enclosures alive.By depressing the prices it makes the consumers happy in the deindustrialized nations like the USA. By doing so it keeps the peace and makes living “affordable”. And gets the USA debt reserves in return, which make the USA the monetary price setter, backed by the military, war, surveillance, keeping the dollar circle worldwide.
Same goes with the Arab oil, but here the situation is so rigged that price setting is purely political, military and war like defined- next Iran shock economy treatment is already in the cards..EU is an island getting depressed by the Chinese and by itself and in the middle of rearranging its overlapping production and banking chain, putting on top of the Pyramid Germany, which by exporting to China and the US keeps afloat the Euro and on the other hand by depressing other member states does the same..The two Islands in the sea of chaos (they produce the war and chaos in a large part as a way to stay in the Island Circle situation),by war, death, which is more and more surrounding them, are shitless scared of the Chinese moves. China has to depress the west economies, if not, the price setting will explode. And suddenly we will understand why the still sleeping effects of the piling of debt and the QE are benign up to now.
The Chinese slowdown will bring prices, interest, sovereign debt skyrocketing and the western peace is gone for good. The dynamic of the system is guaranteed by the Chinese, or any other sweat shop around the Globe, Brazil and Argentina are out of the Great game, they are good only for cheap genetically modified soy and similar crops, which keep depressed the price of the burgers, a vital element for the USA population (is this a joke or what?!).
Adding on this is the economic political Ideology of the winning Milton Friedmanesque burlesque characters which by the sudden economic, social shocks perpetrate the criminal design of the two West Enclosures and its inner Oligarchic Circles. We see that without the Chinese even the Shock Economy, so well described by its author and inventor, Naomi Klein, is not enough to keep afloat the shit. The new USA policy around China may be the next Shock Economy move, together with the US interest rate rise and new Enclosure.
And the perverted shift of the Keynes model by the Milton Zombies is really the end of the model of the debt driven economy and a road to chaos and Fascism. The privatization of the Public Functions of the State is the quacky road. But this Privatization of the war, military, health, pension, transport, energy and all,all this “contractors” are now being paid by the means of taxation which are obligatory. It is coerced by the now private branches of the ex State. The Best and the Last Enclosure /monopoly one can imagine. To forcefully pay and to be forced to pay taxes to fund the now private services?
It is not enough anymore to freely chose and pay the service you want?
The Burlesque of the Freidmanesque perversion, in which one is forced to pay the taxes which fund the private companies, or subsidize them?The sheer monopoly of the force, once a Public State prerogative as in the social contract being signed through centuries in which the individuals have given out some of their inalienable rights to the Government and the State in exchange of protection of all other rights, human and social rights included, is now being privatized and the individuals are forced to pay for this right they have lost? Pay for your rights by force!? You must be kidding.
And this coerced privatization and the coerced taxes to fund it are the Price Setter. A huge one.Economically unbearable. That is why the Chinese…..
And on top of it the debt is piling. Especially the private one, because the price setting has considered it two ways like. Individuals are paid just a notch on the Chinese price setting, but they spend on West Price Setting Enclosure, by its inner rules and laws,and they produce debt/credit, which piles upon the Debt Mountain. Until the Chinese….
And what about the Central bank, the price setting of the money? Thats easy, they buy and build reserves, sell them to the Chinese or keep them in the books.
Why they keep this reserves they buy on their book? Here the Milton Zombies come back riding, the four horsemen… They need them to push the Agenda. Even if this agenda in its core failed in the 80ies on the US soil and only the rise of interest rates on lending and the consequent unemployment rise (the nice correlation between them) stabilized the situation, by perverting the Keynes model for good.This Agenda is called Troika in the Eurozone, the fourth rider is hidden.They are there to push privatization, which you pay coerced and forcefully by your taxes and also tax you to pay the debt.They seek the ownership change of all assets, including yours. Yes, you got it, they could easily burn all this reserve paper they have on the Central Bank ”bounce balance”, but they need them for a cunning Plan.
The Unions, once the price setter, demand side, are dead.
The politicians are Zombies.The price setting in this field is simple.
The Oil is rigged. The next Iran Shock Economy conflict is the next step of controlling and rigging the Oil supply and price setting..
Climate change is a bluff. This position is needed to fix price setting as low as you can go, even back to the middle ages.
Lets rig more
Whole economy is a fight around price setting with all means at disposal (Von Clausewitz revisited).
Certainly all this above has nothing to do with the fair trade or breaking the Monopolies and Enclosures, or with the notion of fair competition and the rule of law.
John Smith was rocking in his rocking chair, deep in the Appalachian mountains. He was angry, his toilet cleaning mexican was late. Lazy buggers, they just occupy the jobs others can do, he was thinking. Fortunately we now have a right Man for the job, we will strike back and get free of all this scum, including his strange neighbor. John Smith was checking his porch, daily….
Out of his rocking chair he pointed happily his gun at some birds flying nearby and fired some shots. Good times, the right people at the right place.
maravillosamente, es la respuesta de valor