I just want to throw up!

Apologies for feeling very dispirited!

Normally, there’s always a selection of bits and pieces in my LfD Blog folder from which to construct a new post.

But yesterday afternoon as I trawled a number of articles and blog sites I ended up feeling sick to the back teeth. Disgusted about the inequalities and injustices that seem to be in the news just now. (I use the word ‘news’ liberally!)

It started with me reading, even before I was out of bed, the latest essay from George Monbiot entitled The Shooting Party.

As the food queues lengthen, the government is giving our money to the super-rich.

Then I went back to re-read an essay from Patrice Ayme that came out on the 22nd called USA: Rich Plutos, Poor People.  Here’s a snippet from there:

Plutocracy is a redistribution of wealth, power, income, from We The People to a small minority of controlling parasites. Plutocracy paralyzes the minds with a warped case of inverted decency. Plutocracy is neither optimal for the society, nor the economy.

Plutocracy affects the USA more than Europe, and the minds, even more than the stomachs. The fact that average Americans feel that they are much better off than in the rest of the world reinforces the plutocratization of the USA. Including astounding tolerance for the amazingly corrupt so called Supreme Court (Supremely plutocratic!).

On to another of Patrice’s essays.  Or more specifically to a comment left by Eugen to a post from Patrice published yesterday.

I would like to share with you my thought about the major defaults of the economic system called “Market economy” or “Capitalism”, or in the language of this blog, the moral deficiency of the system run by Plutocracy.

The major problem of the contemporary economic system on the macro level is that it enabled on one hand to pour into the economy too much financial liquidity at times of boom and overheated economy, by investing too much money in wrong and too expensive assets, and on the other hand at times of bust, when the economy needs liquidity to sustain employment, the system is rather greedy with helping investments in the same assets for even very reduced price. This system a-priory has to cause bust and boom, situations.

The economist since the great depression of 1929-1933 which had disastrous consequences learned from the lesson, and since then the governments and the central banks took as their major task in economy (and be the price whatever it takes), to act as anti bust and boom instrument. This is why they made the economic stimulus of trillions that saved the banks and financial system from total collapse (luckily the collapse came during the time of republican presidency and they couldn’t resist this decision), and the quantitative easing that poured liquidity of government money into the economy as alternative to the private money from banks who stopped to borrow.

So if it is so easy to solve the economic crisis situations, what is the problem? Let the economy run on the waves of bust and boom, and whenever the bust comes the government interferes, and at the times of booms let the boys play and enjoy themselves. If economics would be only about mathematical formulas, probably it could work, but the truth is all the economic decisions have their moral-political aspects. [Ed. My emphasis] And here lies the problem.

Because it is morally and politically very hard to neglect the principle of punish those who do wrong and give tribute to those who has done good. And this is actually what happens when the government comes to rescue the “credit boomers”, the bankers who created a distorted financial system, that channeled the financial and material resources to wrong places to invest in wrong assets, and when the D day came, they did not have to pay the price for their wrong doings. The same happened to those who took the loans, without to ask themselves if and when are they going to pay them back.

These Financiers and their creditors, who get loans of other peoples’ money enjoy free lunch twice. Once when they give and get these loans with knowledge that it will never be repaid, and second time when they enjoy the debt reduction, when the governments come to rescue them.

On the other hand those who use the wealth generated at times of boom to accumulate reserves for the bad times have to pay twice. First time when they restrain their activities during the times of prosperity and reduce by it their profits, second time at times of bust, when still they have to fulfill all their obligations, and get no praise for their responsible behavior in the times of boom.

Of course this system of Boom and Bust causes with each wave a major shift of wealth from one sector to the other, and generally from the decent and responsible entrepreneurs to the irresponsible gamblers, who happen to make bid on other people’s money.

This is one of the reasons why the pension systems are all in deficit, the wages stagnate while the profits and mainly the rewards of corporate managers of publicly traded companies surge.

Isn’t this just unfair?

Then I forget how I ended up on the Animal Spirits blogsite.  But I did.  To read a short essay Sanctions salami tactics.

Sanctions salami tactics

Plutocrats have a certain grudging respect for one another. Naturally, they would like to put each other out of business unless it impacted their own business adversely. So I conclude that Obama’s sanctions are an attempt to isolate Putin from his plutocratic supporters (although perhaps supporters is too strong a word; Putin keeps his plutocrats on a pretty tight leash, just ask Mikhail Khodorkovsky).

But what if under the table the West is inviting Putin’s plutocrats to join them, where the grass is greener and you don’t have old Vlad busting your chops. We’re not going to mention that we’re going to give you a haircut on the way, but are you really ready for the rebirth of the Soviet Union? The London bankers must certainly be for it.

On the other hand, you have the Chinese promising big business… but China’s biggest real estate investor is unloading everything as China replicates the Western real estate bubble and collapse….

It’s tough being a Russian plutocrat these days. It’s tough being a plutocrat anywhere, really, with all this talk that plutocrats are *too* wealthy (and are actually mass murdering their fellow humans with their insatiable greed by hording wealth and depriving others of health care, education and jobs).

Come to America! Come to the UK! Plutocrats rule! This is the subtext of what the Russian plutocrats are hearing.

Finally, an essay published on Naked Capitalism had me reaching for the bowl. It was by Rob Johnson on the Breakdown of Democracy.  Read it.  It included this video.

Published on Apr 26, 2014
Rob Johnson: The influx of additional campaign finance dollars and central bank policies have contributed to the destruction of democratic institutions

That was enough for me.

Couldn’t take any more. Certainly wasn’t feeling inspired and creative.  Just wanted to go out and find a horse to kiss.

Sanity is a warm, loving horse!
Sanity is a warm, loving horse!

Sorry! Hopefully back to being more positively creative tomorrow!

10 thoughts on “I just want to throw up!

  1. Call me ‘shallow’ if you want to, but, I really cannot cope with all this lengthy pontificating. I think what people need most is clear communication of ideas as briefly as possible. Here is how I summarised Eugen’s contribution over on PA’s blog:

    I think two quotes sum up all that has been said above:
    1. Nicholas Stern has described accelerating anthropogenic climate disruption (ACD) as “…the greatest market failure in history”; and
    2. Clive Hamilton has described it as “…a failure of modern politics”.

    With regard to (1), market economics has failed to prevent ACD because most economists mistook Nature’s capital for a source of income and ignored the reality that any business that uses its capital as a source of income will be bankrupted (E.F. Schumacher)

    With regard to (2), politicians have failed to prevent ACD because there is nothing to be gained for them personally by trying to. The tragedy of the commons (Hardin) has resulted in 25 years of blame-shifting and demands that someone else act first.

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      1. I am sorry of my frustration with laissez-faire Capitalism is getting the better of me: For the avoidance of any doubt, I was not accusing anyone in particular of pontificating (not even Eugen really). I was just trying, as I often have to do for Twitter, trying to boil things down to their essentials…

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      2. No problem. The shortness of my previous reply was simply because I was up to my neck writing the post for tomorrow. Your comment was valuable and useful.

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  2. Paul the more you take in of the World Media and News the sicker anyone gets to feel… So for me… Nature is always a winner.. and you and your new friend look to be having far much more Fun than reading the Depressing articles.. That are only going to depress us further…

    You know my motto on this subject well.. 🙂 Its calling again now.. 🙂 as the Sun is out… I spent the morning baking .. And taking photo’s of the flower gifts I had.. 🙂
    Its a beautiful Day… 🙂 Keep Enjoying Nature..

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      1. Paul you know I catch up here when I can.. Life has become rather hectic of late.. What with me creating more ME time in the process.. 🙂 I try to keep up with so many blogs.. but at times I am not very successful. But I always try to read in email.. But of late I have cut off my email from my phone.. as I was getting too distracted and it was defeating the object of getting away and enjoying my ME time both in nature and painting.. Which has been put on hold for a time, as other things were pressing…
        Your posts dig deep and always touch a nerve.. I am thankful too in having you among my community too Paul.. Keep going and Kissing that Horse when things get too much.. .. and of course remember to kiss and cuddle Jean 😉 lol .. 😀 Enjoy your day.. I am..
        Sue

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