Monday, January 26, 2009

what caused the recession and why our pseudo-democracy couldn't stop it


Noam rules:
"Free capital movement establishes what international economists have called a "virtual parliament" of investors and lenders, who carry out a "moment-by-moment referendum" on government policies. The "virtual parliaments" can "vote" against these policies if it considers them irrational: enacted for the benefit of people, rather than profit for concentrated private power. They can "vote" by capital flight, attacks on currencies, and other devices offered by financial liberalization. [John Maynard] Keynes considered the most important achievement of Bretton Woods to be establishment of the right of governments to restrict capital movement."
"Keynes regarded speculation as destructive. His basic insight is well described by Indian economist Prabhat Patnaik, at the UN conference of October 30 on the global financial crisis. Patnaik explains that Keynes "had located the fundamental defect of the free market system in its incapacity to distinguish between `speculation' and `enterprise.' Hence, it had a tendency to be dominated by speculators, interested not in the long-term yield on assets but only in the short-term appreciation in asset values. Their whims and caprices, causing sharp swings in asset prices, determined the magnitude of productive investment and, therefore, the level of aggregate demand, employment and output in the economy. The real lives of millions of people were determined by the whims of 'a bunch of speculators' under the free market system." The replacement of governmental "demand management" by "bubble booms" created by speculators is a prime cause of the current financial crisis, Patnaik argues plausibly, supporting Keynes's analysis. "

"Since financial liberalization and the related neo-liberal programs were introduced in the 1970s, there has been considerable deterioration where the programs have been adopted, though there has been rapid growth where they have been mostly ignored, notably in East Asia . . . . The Bretton Woods years were the era of substantial progress in establishing basic social and democratic rights, which have been under attack during the neo-liberal/financial liberalization period. To take just the United States for illustration, during the Bretton Wood years, economic growth was not only unusually rapid but also egalitarian: the poorest quintile did as well as the richest. And social indicators, general measures of the health of the society, closely tracked growth. Since the late 1970s, for the majority of the population real incomes have stagnated, work hours have increased, benefits have declined, and social indicators not only did not track growth, but in fact steadily declined."

I hope everyone realises that the model Keynes and Noam are decrying here is the very same one that the Labour government did everything they could in their twelve years of power to follow. Its also the same one Thatcher embraced as if it were a genocidal ex-dictator.


  1. You Bail Them Out, We Opt Out.We Want Some TARP

    Dear, or should I say Expensive Ben S. Bernanke,

    All of Our Economic Problems Find They Root in the Existence of Credit.

    Out of the $5,000,000,000,000 bail out money for the banks, that is $1,000 for every inhabitant of this planet, what is it exactly that WE, The People, got?

    If my bank doesn't pay back its credits, how come I still must pay mines?

    If my bank gets 0% Loans, how come I don't?

    At the same time, everyday, some of us are losing our home or even our jobs.

    Credit discriminates against people of lower economic classes, as such it is unconstitutional, isn't it? It is an supra national stealth weapon of class struggle.

    Credit is a predatory practice. When the predator finishes up the preys he starves to death. What did you expect?

    Where are you exactly in that food chain?

    Credit gets in the way of All the Principles of Equal Opportunity and Free Market.

    Credit is a Stealth Weapon of Mass Destruction.

    Credit is Mathematically Inept, Morally Unacceptable.

    You Bail Them Out, We Opt Out

    Opting Out Is Both Free and Strictly Anonymous.

    My Solution: The Credit Free, Free Market Economy.

    Is Both Dynamic on the Short Run & Stable on the Long Run, The Only Available Short Run Solution.

    I Am, Hence, Leading The Exit Out of Credit:

    Let me Outline for You my Proposed Strategy:

    My Prescription to Preserve Our Belongings.

    Our Property Title: Our Free, Strictly Anonymous Right to Opt Out of Credit.

    Our Credit Free Money: The Dinar-Shekel AKA The DaSh, Symbol: - .

    Assets Transfer - Our Right Grant Operation - Our Wealth Multiplier.

    A Specific Application of Employment, Interest and Money.
    [A Tract Intended For my Fellows Economists].

    If Risk Free Interest Rates Are at 0.00% Doesn't That Mean That Credit is Already Worthless?

    Since credit based currencies are managed by setting short-term interest rates, on which you have lost all control, can we still say that you are still managing anything?

    We Need, Hence, Cancel All Interest Bearing Debt and Abolish Interest Bearing Credit.

    In This Age of Turbulence The People Wants an Exit Out of Credit: An Adventure in a New World Economic Order.

    The only other option would be to wait till most of the productive assets of the economy get physically destroyed either by war or by rust.

    It will be either awfully deadly or dramatically long.

    A price none of us can afford to pay.

    “The current crisis can be overcome only by developing a sense of common purpose. The alternative to a new international order is chaos.”

    - Henry A. Kissinger

    What Else?

    Until We Succeed the Economy Will Necessarily Keep Sinking Into a Deeper and Deeper Depression

    You Bail Them Out, Let's Opt Out!

    Check Out How Many of Us Are Already on Their Way to Opt Out of Credit.

    Let me provide you with a link to my press release for my open letter to you:

    Chairman Ben S. Bernanke, Quantitative [Ooops! I Meant Credit] Easing Can't Work!

    I am, Mr Chairman, Yours Sincerely [Do I really have the choice?],

    Shalom P. Hamou AKA 'MC-Shalom'
    Chief Economist - Master Conductor
    1 7 7 6 - Annuit Cœptis
    Tel: +972 54 441-7640
    Fax: +972 3 741-0824

  2. You're not going to win any friends around here by quoting a war criminal.

    And is that mugshot of you meant to encourage people to give you their money?

  3. The Abuse Of Capitalisation And Bold Is Extremely Tedious.

  4. Ditto the inability to string more than one sentence together.


Feel free to share your opinions of my opinions. Oh- and cocking fuckmouse.