Hej,Buh dej! Hey, Book day (a sort of lost in translation trick), dear 3 readers, the others have left for the smartshit permanent vacancy of the soul and mind and here we are with only 3 books which are just enough to understand the smartshit operation “End of you freedom”.
Book 1- Naomi Klein -Shock Doctrine
Book2- William Mitchell ,Thomas Fazi- Reclaiming the State
Book3- Jeffrey A. Winters- Oligarchy
You do not need to share the books by 3 readers, you can read them together, in parts, mixed, one by one….
This post is a sort of sequel of the budget deficit = net spending post, a while ago. The topic is not so present in the above books, it is a sequel.And it is a foundation of this blog, the Global debt driven food chain of the night sharks.Quantum included.
Lets start with Karl Marx, not the guy but the movie “young karl marx”
The only thing valuable in the movie, putting aside all Hegel bollocks of overturning the Master/servant dichotomy (false dialectics, anyway), putting servant in the place of the master and forgetting the Communist party as a new real master… and by turning Hegel upside down and so becoming a materialist, all of it a sick joke, the best part and the only true paradigm was the visit of Karl and Engels to some posh rich club where Engels was a member and they had a small exchange of views with the important tycoon. The Tycoon said that he employs a lot of children in his mill, age from 8 to 12, working 16 hours a day,and he can not, repeat, can not stop child labor. If he did so, he would be out of the market and broke, even while he was floating in money made on the profits from the child work.The or this or that (getting broke) paradigm of the economy.
This sentence is the pillar of economy and it shows that economy is only and just only, if nothing else than bollocks, a Political Economy and a “class”, or if you prefer , interests struggle . The Globalization has just made possible to provoke this asymmetric no law rules and to move the value chain around the planet and so by inner contradiction extract all what can be extracted from the global value chains to up there, up nowhere, where the Oligarchy dwells.
Only the rules of law in the economy change the economy.If not, you will be working in the West from your 5th year on, rich excluded..and by doing so, no investment in the new tech.The constraint of the rules is making the innovations.
When Keynes said 70 years ago that 4 hour working day was coming, he was right, but the law of the 8 hour working day just stayed…and stayed… and for some miracle, it is getting even longer.A protestant work ethics miracle. As a sign of prosperity. Calvinist hell.
The end of the Unions, which are now banned as a negotiating part in the USA by the supreme court…Or the Government and the State rule of law… and by this we are in the Globalization and its effects and the Laws of Dani Rodrik ;Rodrik argues that we cannot have “deep economic integration” (he uses the term “hyper-globalization”), national sovereignty (nation state), and democratic politics all at once…
Witchdoctor adds on this that we can achieve all this only by social dumping.Social dumping in literal meaning-to dump- you -and in social meaning- to desocialize – privatise and dump all regulations of welfare.
And by keeping democracy to decide, with a referendum, where one wants to put a park bench…
But as William Mitchell and Thomas Fazi put it , the Rodrik trilemma is a tautology because we have to ask a simple question, what happened to the State? Has it disappeared in this “globalisation” as many smartshit young and left think that we are already One World and that is just fine, flying low cost and smartshitting the planet?And obviously talking one lingo, not mine but yours, who cares who I am, we are all “globalised”by you ?
The Supra level and its supporters
The end of the global food chain, or in economic lingo, the value chain,
Ends in a nowhere land, where only the rules of various types and of the prevailing type of Oligarchy exist. But this One World no place with no rules except some treaties of trade and war and the police of the various entities , masonic, bilderberg or any third eye mumbo jumbo bollocks as a hobby of the rich meeting points, IMF and similar as executing corporals, have at this turning point in History Crime Scene also a support of the brainwashed, “modern”, “progressive” or deluded masses of idiots which by waiving their rights as members of anything, just plain consumers or disposable waste, cheer the globalised smartshit social dump of their lives.
Like, the women in Arab countries, which found an illusion of equality and participation in the new social media. And what fool thinks that allowing women to drive a car (!!!)- such a stupid and obvious task-, leads to any type of power sharing in the male patriarchy? The men know where the ultimate power lies. The women, thinking they are more down to earth beings, delude themselves in being (concrete) down to nothing . The fashion (clothing, habits , posh junk) and the social facef..k media as a catalyzer of the empty household life and all this leads to a searching for voluntary serfdom. Etienne de la Boetie was right, but he forgot the fear of the freedom syndrome of the masses, and consequently their search for voluntary serfdom, freely waving their miserable rights. The road to a new Nazi agenda of the new flavored totalitarism on a global scale of the Supra level..
So What happened to the State? Dissolved in what, your rights,guaranteed by the State and nobody else, dissolved too in what?A real smartshit manipulation, and here is the Noam Chomsky link of how it works…
Lets see what happened to a Greek State; trading economics site shows that GDP has almost halved in 10 years and the BEST of it all, the Greek guinea pig massacre , with crazy cuts and all the privatization and all the suffering and dying has brought down the Public sector spending, cut by 26% of public employees,38% cut of wages, the spending has plummeted from 50,8% in 2008 to a whooping 49.5% !!!!! UNBELIEVABLE, ALL THIS FOR A 1,5% CUT!!!! To achieve the austerity result of 1,5% (!!!), Greece has defaulted for the next century ( which will not come) and it has to be in primary surplus, courtesy of the Troika, for the next 40 years, interest on debt included!!! ( all this is checked… do not worry, bollocks are yours and not from WD).. scenari economici.it link and go and search as WD did.
So we are slowly in the Hijacked Truths and moving further to the
Global Value surplus extraction chain
The global surplus extraction value chain starts somewhere. Land grabbing of whole Earth regions becoming food or mineral farming platforms or deforestation regions (courtesy of french. lichtenstein, etc) of the surplus extracting value chain with the serfs of social dumping included. Coltan mining with children hard labor paid 20 cents a kilo and reaching even over 1000 euros a kilo on the world stock market speculating hubs of value chain. And people fleeing Africa and other extraction hubs-regions,like to south Italy and the new value chain starts with black emigrants working for a pittance a day, some euros, and living in cardboard plastic covered shacks, picking tomatoes which then the mafioso owner sells for a pittance to some other mafioso middlemen and then the value chain starts making money…And made in Italy is born, or made in germany is made in Slovenia with some romanian or chinese help or the posh cars made with parts from somewhere and the cream, slowly, like the chinese Nike runner in the park accumulates on the top… all this is “made in” as a constraint of debt. The chain temporarily ends in a brand name of the product, like Goldman Sachs or some rugs clothing with a posh name…The result is social dumping and the law of big numbers by which the Corporations at the top collect the cent by cent by cent…in trillions, You have to be a serf to believe in a Brand.
And the import duties war, which , they love to say it, will provoke new wars. The global value chain is allergic to any kind of barrier and so, your place, depending on what platform or hub in what region you are born is cemented. You will dig Coltan in Kongo as a 8 year old and after, if you survive the crossing of the desert and the Libyan well known raping hospitality, you will pick tomatoes in the Club Med. But maybe you will win a lottery ticket you bought in some Club Med shack and go to the German industrial hub assembling “made in germny” posh cars?
VACUUM CLEANER of all yours
Funnily enough but not so much, the scandalous and shameful money creation put in place in the last decades and the resulting debt machine put in place have disastrous effects and are omitted by all the above> The model of modern money lending takes as much money (plus interest for your car) out of normal day to day real circulation and this money created by bank lending money(out of nothing) returns to the bank in way as a fraudulent non declared asset and goes mysteriously “somewhere”.
Lately this non declared black shadow money is getting an official name from the spin corporals of the Oligarchy- the Moneyness! As much money lent out from nothing, by a simple computer stroke, returns as real asset and a year amount of GDP money circulation in the economy ends back in a vacuum cleaner going to the Next level of the uncontrolled financialization on transnational level.
Lent money out of nothing, backed by nothing, which comes back to the bank, is not destroyed.
So, to sum it up; a year of lent money which composes the year GDP economy circle ends mostly somewhere in the assets and financial markets (all politics, spin doctors, serfs of the agenda and lobbies included), it is “born” twice at a bank computer desk.. Year by Year, by year…
The Social globalized dumping of the falling purchase power and privatized welfare brings more private debt assets in form of consumption credit, healthcare credit, etc, which goes yearly in the same next level of assets and stock, etc, the next level financial circle.
The State which still exists but is in the hands of the Global Oligarchy covers its budget deficit with new debt and this constitutes the next bulk of feeding the next level circle, invented by the Washington Consensus and the Huntington clash to the Transnational level.
The Hijacked Truth of the Global Oligarchy vacuum cleaning of the State and the piling of all forms of debt driven economy in a few hands which in turn by austerity depress the State and its citizens and by doing so privatizes for theirselves with all this debt gained money and capital the assets at disposal… By debt they buy.All. Slowly.
The State is not dissolved, and in fact the Oligarchy vacuum cleaning machine needs the State and it political class of Cleptocrats and Public servants to Vacuum it.Only the smartshit manipulated left and similar think what their sycophant informants peddle about the dissolving of the State. The State in this Global scam is essential.The right wing is , as usual, selling fear and serfdom and winning.If there was no State the cleptocracy would have a much harder time for enforcing its rule.
Only the rights and benefits deriving from being a citizen of the State are dissolved, all else is hijacked, and so is dissolved the right to choose a government regardless of the opinion of the “Markets”
The current war on duty imports is not concerning and will never concern the Transnational Money Capital financial flow/liquidity or the tax heavens…. That is off limits subject and a no go zone for the Oligarchy Trans Planet rule and only the manufacturing, which directly concerns the State economy and taxes, is in play, while The Money (liquidity) flies free above ..
The only result of this vacuum cleaner is a more frenzied production and depleting of resources, for the every year new produced less durable goods, so the debt machine is churning,social dumping is flowering and the Planet is burning.And the concentration of wealth. The new Cleptocracy world wide. Brazil, depletion and social dumping, Argentinas debt Cleptocracy local Oligarchy working as a middlemen for the upper levels of the Oligarchy with IMF stepping in with 50 billions because Argentina has 40 million people but produces food for 400 million and the Argentinian cleptocracy is pumping out the liquidity and capital from the country for many decades now, same recipes which are
same for Brazil which has sold all the best water (!) (and the rest is cut down oxygen and GMO ready) to foreign corporations, and so on and on, 5% having 95%.And since Cleptocracy is also a way to fabricate inflation, the IMF will cut the peoples shit wages to balance the fake budget, which has flown with debt to the safe havens, pegged to the dollar!
BUDGET DEFICIT = NET SPENDING
In the light of the above, the budget deficit= net spending is just a macroeconomic accounting view.it does not tell who is the biggest beneficiary along the value chain. It does not tell nothing who is cutting the biggest slice of the debt driven economy of the State.Nor the biggest profit nor the biggest loss. Rising on the surplus extracting value chain shows that the current taxation system, which is correlated to the food chain of extracting wealth by debt has certain and a very few beneficiaries…
The wealth defense and the army of paid professionals of the Oligarchy as in Jeffrey A. Winters book, is really huge. For their defense the US Tax report has grown from 400 pages in 1913 to the unbelievable 71.684 pages in 2010 ! Only the rich folks know how to use it and that is why it has so many pages.The fight to force rich to pay taxes, from 1894,as in the USA, has ended in a fantastic way.From a few thousand of rich in the US in 1913 which were filing the income tax and all others being exempt from doing it, it slowly rose to all the Americans having to file the Income Tax! And at the end, today, the secretary of some Oligarch (see Warren Buffet admission) pays more income tax than the oligarchs! Or the growing tax burden of a small house owner, being so stupid not to declare himself legally as a Corporation and have his bills sent to Delaware or similar.Certainly the war period helped a lot in making and forcing everybody pay a lot of taxes, and some suspicion of conspiracy by the rich certainly comes in mind…. make wars to make more money.And the bill of this scam was sent to the ones (too many) which worked and fought for the winning of the war, in all flavors, death included and many Oligarchs excluded.. And, dear reader, read the book and the real meaning and purpose of the “tax cuts”in the debt driven economy..
The budget deficit=net spending tells absolutely nothing about the real distribution burden of debt chain within a populace and who benefits more from this debt machine.
The budget deficit=net spending tells absolutely nothing of the flow, direction and consequences of the current money lending practices, current, absolutely for centuries outdated law regulation about money creation and the real double (fake accounting) cleaning of the citizens and business.First by debt/credit in the globally constrained price making which is forcing everybody in social dumping practices since the competitive global environment de facto forces the operators to the lowest sustainability (the Planet and human dumping) level of extraction of value and secondly by stealth accumulating of non declared liquidity on the other side which is going to the supra level of fiancialization and financing the buying of all assets at sale, which are still in hands of the socially dumped.. The assets at sale, many on top prime locations worldwide, their owners depleted by debt and taxing, giving it away to stealth money accumulation entities.Or being offered so much paper out of nothing to not say no…
That is also the plan of the Austerity economics in the Eurozone which provokes and in some years will accomplish the selloff of the best locations as a result of social dumping of its citizens. It is even worse since the tax rise on incomes and property is explained as a health cure for the too rich citizens of the failed States.As Germans love to point out, they (the south and lazy club Med) are too rich and lazy and they should cover the overall debt by selling all, for centuries accumulated property, from their ancestors on.
The State, as shown in the link, can be in deficit by endogenous and exogenous reasons. Generally the State is always in deficit and it should be because there are tons of essential Public duties which provoke the deficit, but in a long run they are and should be (if State is not an Organized Cleptocracy or a corporal for the Oligarchy)real savings..of land, peace, prosperity and happiness.. The neoliberal agenda is spinning the propaganda that by privatizing the Public Duties of the State, the State will be clean and in surplus.Never happened as the US and others show, there was never a surplus in history worth mention. Even Germany averages -1.9% historically.. regardless of the sucking up the Eurozone surplus value chain (trading economics data).
And, if and when this dismantling of the State Public Duties will occur, the cost will fall on and will be unbearable for its citizens, which IS the plan, getting rid of them, they are in the 21 century just a disposable junk, since the new type of manufacturing (robots and AI) will not need them. But the contradiction pops out, when we think to whom this automated factories will sell? And here the mixed system of debt and deficit, regulated by the Hijacked State corporals of the Few, come as a perfect plan of mass consumption of ever more worthless products as a byproduct of extracting debt and privatizing all for the benefit of the Oligarchy,States “posing” as Human farms for the debt production.The pensions and health are sliding to zero for the serfdom seeking masses, and the dark ages as in Europe around year 1000 or the Dickens times are the new perspective, along with the uncontrolled demographics of the rest of the planet…. The value chain is also being concentrated on a geographic scale , local “districts”- Silicon valley, Germany, China districts, etc…the industrial world platforms.
Essentially there is also the end of it all, from the Oligarchy point of view. When everything will be bought by a few, and with the robotics and and the AI, genetic manipulation, they will need nothing. The new race is rising.Except that the climate change pops out and it is for all, but maybe they have calculated where is the new living belt of the FEW.
NET SPENDING
The reason of State deficit should be, in an accounting view, the “saving” of the overall sectors within the state. But the overall household huge indebtness shows that there is somebody else saving as a result , side by side,of the State deficit. The net spending goes in other pockets, not in the poor,or the depleted “middle class” (once a guarantee for democracy), the working poor or Foodora and other gig scam economy are slowly engulfing all jobs which will be soon “on demand”and on “stand by “and while waiting for a call you will be paid nothing. But there is a bright side in this, you will work on your own bicycle, training your only property-your body- so you will not pay for a non existent health care and you will save the environment from the fossil fuels! Because the value chain in which you working , is not contemplating a car delivery, because if doing so, it will be non profitable and so, you are Green and healthy and saving the Planet! Rickshaw for ever, until you drop dead! New, modern, smart, connected to your algorithm! A giant step for the mankind.
As we have seen that the “overall” sectors within the state are getting privatized. So, who is net spending saving here and on whos behalf is State making a budget deficit?? Easy answer.The proof of the pudding as above.
Interesting, the lazy italians, which always saved every penny , much more than germans did, are not putting pennies aside any more (Istat statistics, fresh), Going dry, eh? No Booze and sex, ex,the dutch genius Diesel Boom was right, you are now in line with the rest in line of fire.Becoming calvinist. Saving is bad, it is not for anyone.Calvinist word.
Links- Simon Thorpe on how the banks have little capital and loads of assets and the EU outstanding debt of near 13 trillions,
https://simonthorpesideas.blogspot.com/2014/08/the-50-biggest-banks-676-trillion-in.html
https://simonthorpesideas.blogspot.com/
Bill Mitchell link regarding Eurozone is appalling. The ideology behind;…. is of a pure totalitarian nature, pol pot style..
http://bilbo.economicoutlook.net/blog/?p=39642#more-39642
Citing from Bill Mitchell post the outrageous eugenetic experiment of the Eurozone;
Enderlein and his cast of authors proposed a simple rule for the limits of democracy – “sovereignty ends when solvency ends” (p.7), which is astounding if you think about it.
The application of this rule inevitably leads to a violation of democracy because the risk of insolvency is intrinsic to the flawed design of the monetary system.
THE STRANGE CASE OF THE AI AS THE EQUALIZER
Well, to have fun, one can build a spin sycophant academic career on this unexpected “good” news. The States which will adopt ASAP the Artificial Intelligence as a way of functioning of the Public Sector and the State and by doing so ditch the 40% of it back in the public or private economy or on the Universal Basic Income ( a good buffer for keeping the minimum wage at a decent level as a counterbalance when sharks are hiring), or the Job Guarantee, will be the only ones which have some decent time lapse of survival. The automated algorithm model assigning of market tenders and the cost efficiency will throw out the State Cleptocracy of the ruling political classes and Public Cleptocrat servants and also the shadow connections with the Supra or middlemen Ruling Oligarchy.The clear and public AI blockchain, working for the citizens.The Transparent AI backed administration for any State allocations of funds and contracts and State backed investments as in health care and organization, infrastructure and environment and a Universal Basic Income card, working on all ATM machines. Considering the average IQ, AI is a win win even on problem solving.
IF NOT, you will be engulfed in Cleptocracy, a corruptive State so much loved by your Idols, the One World Oligarchy.. There is one thing a Cleptocracy State, linked to the Global Oligarchy does not want- The AI transparency of its own procedures.That is the New Divide.
And the debt free Central Bank….
Last, the myth of Gini coefficient
The famous Gini coefficient of equality in a State is overturned for good in Jeffrey A. Winters book on Oligarchy: The mythical North European States of equality, Norway, Sweden, Finland, Denmark show that they have even bigger number on a same population number of millionaires than the US! The most inequal, the US with a coefficient of 45 has the same numbers of billionaires as Sweden, and the most of
Of North Gini heroes have more millionaires than the US which is on the same level as Germany! Norway has 1 millionaire every 46 citizens
compared to US – 1 every 103 citizens! Long live the North Europe Oligarchs and their wealth defense industry! Keep on paying your up to the neck taxes…. and say thanks.
Everybody knows that the dice are loaded
Everybody rolls with their fingers crossed
Everybody knows the war is over
Everybody knows the good guys lost
Everybody knows the fight was fixed
The poor stay poor, the rich get rich
That’s how it goes
Everybody knowsEverybody knows that the boat is leakingEverybody knows that the captain lied…
A great Leonard Cohen lyrics
Next time: The Pure Evil, The Evil and the Lesser Evil , consequences, actions,coming soon, but you can already start to sum them up….
You are fu..ed up, Wd included, but he is traveling light…